Document:

EXHIBIT 10.2

                                                         Effective July 22, 2003

                               SECURITY AGREEMENT

      FOR  VALUE  RECEIVED  and  intending  to  be  bound,   Robotic   Workspace
Technologies,  Inc., a Maryland  corporation,  authorized  and  registered  as a
foreign  corporation  to do business in the State of  Florida,  (the  "Debtor"),
whose principal address is 17105 San Carlos Boulevard,  A6151, Fort Myers Beach,
Florida,  33931,  hereby  pledges,  assigns  and  grants  to Fifth  Third  Bank,
Florida.,  (the "Creditor"),  its successors and assigns, as consideration for a
loan (the "Loan") of even date herewith in the amount of Two Hundred Twenty Five
Thousand and 00/100  Dollars  ($225,000.00)  to Debtor,  security title to and a
security interest in the property described hereinafter (the "Collateral"):

      1.  "Accounts."  Any and all of the  Debtor's  rights to payment for goods
sold,  for goods  leased and for  services  rendered,  or any of such  rights to
payment,   whether  now  owned  or  hereafter  acquired,  to  include,   without
limitation, a right to payment under a contract or contracts,  whether earned or
to be earned by further performance, together with any and all cash and non-cash
proceeds  received or to be received when such a Collateral is sold,  exchanged,
collected  or  otherwise  disposed  of, and  accounts  arising when the right to
payment is earned  under a contract or  contracts.  Accounts  shall also include
deposit  accounts,  which  shall  mean  any  demand,  time,  savings,  passbook,
certificate  of deposit or like  account  maintained  by any  Creditor,  savings
Creditor, credit union or like organization.

      2.  "Inventory."  Any and all  goods  held for sale  car  lease,  or being
processed  for  sale  or  lease,  in  Debtor's  business  as now or  hereinafter
conducted,  whether now owned or hereinafter  acquired,  including all materials
goods and work in progress, finished goods, and other tangible property and held
for sale or lease or furnished or to be furnished  under contracts of service or
used or consumed in Debtor's  business,  all documents  (including  documents of
title)  covering  inventory and all cash and non-cash  proceeds from the sale of
inventory, including proceeds from insurance.

      3.  "Equipment."  Any and all of the  Debtor's  furnishings,  fixtures and
equipment,  wherever located, whether now owned or hereafter acquired,  together
with all increases, parts, fittings,  accessories,  equipment, and special tools
now or hereinafter affixed to any part thereof or used in connection  therewith,
and all cash and non-cash proceeds, including proceeds from insurance,  received
from the disposition thereof.

      4. "Fixtures." All fixtures,  equipment and other goods, whether now owned
or  hereafter  acquired,  including  the  products,  additions,   Substitutions,
accessions,  and  all  cash  and  non-cash  proceeds,  including  proceeds  from
insurance of and to such goods, of the Debtor that are or will become so related
to real estate that they are or may become part of real estate.

      5. "General  Intangibles." All general intangibles of the Debtor,  whether
now owned or hereafter acquired.

                                       1
<PAGE>

      The security  interest is granted to the Creditor to secure the prompt and
unconditional  payment  and  performance  when due of any and all  indebtedness,
obligations and  liabilities to the Creditor of the Debtor,  or of a party whose
indebtedness  to the Creditor is being secured by the Collateral  which is owned
by the Debtor,  whether such  indebtedness is now existing or hereafter  arises,
whether  absolute  or  contingent,  direct or  indirect,  primary or  secondary,
secured or unsecured,  due or to become due, whether originally  contracted with
the  Creditor  or  subsequently  acquired  by the  Creditor  in any manner  (the
"Indebtedness").

      This  Collateral is pledged to secure  indebtedness  of Robotic  Workspace
Technologies, Inc., a Maryland corporation.

A. REPRESENTATIONS AND WARRANTIES

      1. Debtor warrants and represents, and such representations and warranties
shall be continuing, as long as any indebtedness remains outstanding, that:

      2. Debtor is the owner of the  Collateral  free and clear of all liens and
security interests except the security interest granted hereby.

      3. Debtor has the right to make this  agreement and all actions  necessary
therefore have been duly taken.

      4. Debtor has been duly  incorporated  and  organized and is existing as a
corporation in good standing under the laws of its jurisdiction of incorporation
and is duly  qualified  and in good standing as a foreign  corporation  in those
jurisdictions  where the conduct of its business or ownership of its  properties
requires qualification.

      5. Debtor is in compliance  with all laws and  regulations  applicable and
necessary for the conduct of business by such entity.

      6. The  information  contained  herein is true and  correct as of the date
hereof to the best of Debtor's knowledge and belief.

      7. Each Account  pledged to the Creditor  hereunder  represents,  and each
Account  arising  hereafter will  represent,  the valid and legally  enforceable
indebtedness of a bona fide account debtor and is not and will not be subject to
set-offs, counterclaims or defenses except as disclosed to Creditor in writing.

      8. Each  instrument  pledged to  Creditor  hereunder  is in full force and
effect without  amendment or  modification,  and is binding upon and enforceable
against  the  obligor  thereon in  accordance  with its terms,  and there are no
setoffs, counterclaims or defenses except as disclosed to Creditor in writing

      9.  Debtor has filed all  federal,  state and local tax  returns and other
reports  it is  required  to file and has paid or made  adequate  provision  for
payment of all such taxes, assessments, and other governmental charges.

      10. Debtor uses no trade names in the conduct of its business, and has not
changed its name, except as disclosed to Creditor in writing.

                                       2
<PAGE>

      11.  Debtor  acknowledges  and  warrants  that  Debtor has  executed  this
Agreement in order to induce the Creditor to extend the financing secured hereby
and Debtor has received or will receive same  economic or other benefit from the
transaction(s)  which the Collateral  secures or will secure,  and that Debtor's
grant of a security  interest in the  Collateral  to the  Creditor  hereunder is
supported  by adequate  and  sufficient  legal  consideration  to make  Debtor's
obligations hereunder legally enforceable.

B. COVENANTS.

      As applicable, Debtor hereby agrees that:

      1. As long as any  Indebtedness  to Creditor is  outstanding,  Debtor will
not,  without the prior written  consent of Creditor,  borrow from anyone except
Creditor on the security of the Collateral.

      2. All  records  pertaining  to the  Accounts  will be kept at the address
indicated above, and Debtor will notify Creditor in writing not less than thirty
(30) days in advance of any intended change

      3. Until  Creditor  directs  otherwise,  Debtor will collect the Accounts,
subject to the  direction  and  control of  Creditor.  Any  proceeds of Accounts
collected by Debtor will, upon the request of Creditor, be immediately delivered
to Creditor in the form  received  except for necessary  endorsements  to permit
collection.

      4. Upon any  request of  Creditor,  Debtor will  furnish  Creditor an aged
analysis of all  outstanding  Accounts,  in form and substance  satisfactory  to
Creditor.

      5. All inventory  now owned or hereafter  acquired will be, prior to sale,
in the  possession  of Debtor at the address  indicated  above,  and all records
thereof are kept at such address;  Debtor will give  Creditor  thirty (30) days'
written notice before changing the location of such Inventory or records.

      6. Debtor will,  at  Creditor's  request,  deliver to Creditor any and all
evidence of ownership of any and all Collateral.

      7. The Equipment is in the  possession of Debtor at the address  reflected
above.  If that  location  is not owned by Debtor,  or if any of the  Collateral
constitutes Fixtures,  Debtor will provide Creditor with disclaimers and waivers
necessary to make Creditor's  security interest therein valid against any person
holding an interest  in such real  estate.  Debtor will not change the  location
address of any Equipment without giving the,  Creditor  reasonable prior written
notice.

      8. Debtor will keep and maintain all Equipment in good operating condition
and repair,  so that the value and  operating  efficiency  thereof  shall at all
times be maintained and preserved.

      9. Debtor shall have and maintain  with  financially  sound and  reputable
insurers,  insurance  satisfactory  in all  respects  to Creditor  covering  the
Collateral  against  liability  and such other  risks as Creditor  may  require,
including standard extended coverage in an amount at least equal to the value of
the Collateral.  Policies evidencing any such property insurance shall contain a
standard loss-payee  provision providing for payment of any loss to Creditor and
shall provide for a minimum of ten (10) days' prior  written  notice to Creditor
of any  cancellation.  Creditor  may act as  attorney  for Debtor in  obtaining,
adjusting,  settling and  canceling  such  insurance  and  endorsing  any drafts
representing payments of claims under such policies. If Debtor at any time fails
to maintain the insurance required hereunder, Creditor may purchase the same and
assess the cost thereof against the Debtor.  Debtor shall furnish  Creditor with
certificates or other evidence of compliance with these insurance provisions.

                                       3
<PAGE>

      10.  Debtor  agrees to pay to Creditor all  advances,  charges,  costs and
expenses (including  reasonable  attorneys' fees and legal expenses) incurred by
Creditor  in  connection  with  the  transaction  giving  rise to this  Security
Agreement, in connection with confirming, perfecting and preserving the security
interest created hereunder,  in connection with protecting  Creditor against the
claims of any third person against the Collateral,  and in exercising any right,
power or remedy  granted to Creditor  hereunder  or by law,  including,  without
limitation,  attorneys'  fees  incurred in  litigation  and  administrative  and
bankruptcy proceedings and appeals therefrom.

      11. The term "Collateral" shall include the property described hereinabove
and the balance of every  deposit  account of Debtor with Creditor and any other
claim of Debtor against Creditor, whether now existing or hereafter arising.

      12.  Debtor will defend the  Collateral  against the claims and demands of
all persons at any time claiming the same or any interest therein

      13. Debtor shall maintain its primary depository accounts with Creditor.

      14. Debtor shall provide Creditor with quarterly financial  statements (no
later than 30 days after the end of each  quarter) and a copy of Debtors  annual
tax return  (which shall be provided no later than 30 days after such return has
been filed with the Internal Revenue Service).  In addition,  Debtor shall cause
any Guarantor of the Loan to furnish Creditor with an annual personal  financial
statement  and tax return  (which  shall be provided no later than 30 days after
each Guarantors tax return has been filed with the Internal Revenue Service).

Creditor hereby agrees that Creditor will subordinate this Security Agreement to
a Line of Credit loan granted to Creditor by an institutional  lender so long as
the terms,  conditions and amount of such loan are  satisfactory  to Creditor in
Creditor's sole and absolute discretion.

C. EVENTS OF DEFAULT.

      1. Default in the payment of any  principal,  interest,  or other  charges
with respect to any of the Indebtedness as and when due.

      2. Default in the  observance or  performance of any covenant or agreement
set forth herein or in any  agreement,  note or instrument  heretofore,  now, or
hereafter executed by Debtor in favor of Creditor.

      3.  Any   representation,   warranty,   certificate,   schedule  or  other
information made or furnished by Debtor to Creditor herein or pursuant hereto is
or shall be untrue or materially misleading.

                                       4
<PAGE>

      4. Loss,  theft,  damage,  or destruction  of any material  portion of the
Collateral for which there is either no insurance  coverage or for which, in the
opinion of the Creditor, there is insufficient insurance coverage.

      5.  The  making  of any  levy,  seizure,  or  attachment  upon  any of the
Collateral.

      6. The Debtor or Obligor or any  Guarantor of the  Indebtedness  shall (a)
apply for or consent to the appointment of a receiver, trustee, or liquidator of
itself, or of all or a substantial part of its assets, (b) be unable or admit in
writing  its  inability  to pay its debts as they  fall due,  (c) make a general
assignment  for the benefit of its  creditors,  (d) be adjudicated a bankrupt or
insolvent,  or (e) file a voluntary  petition in  bankruptcy or a petition or an
answer  seeking  reorganization  or an  arrangement  with  creditors  or to take
advantage of any insolvency law or an answer admitting the material  allegations
of a petition filed against it in any bankruptcy,  reorganization, or insolvency
proceeding,  or any  corporate  action  shall be taken by it far the  purpose of
effecting any of the foregoing.

      7. An order,  judgment or decree shall be entered without the application,
approval  or  consent  of the  Debtor  or  Obligor  by any  court  of  competent
jurisdiction,  approving  a  petition  seeking  reorganization  of the Debtor or
Obligor or  appointing  a  receiver,  trustee,  or  liquidator  of the Debtor or
Obligor of any or a substantial part of its assets and such order,  judgment, or
decree  shall  continue  unstayed and in effect for a period of more than thirty
(30) consecutive days.

      8. The  termination,  dissolution or death of the  Shareholders of Debtor,
Obligor or any Guarantor of the Indebtedness.

      If any Event of Default shall occur,  then or at any time thereafter,  the
Creditor  may declare all  indebtedness  of the Debtor or Obligor to be due ,and
payable,  without  notice,  protest,  presentment,  or demand,  all of which are
expressly waived by Debtor, and Creditor shall have any and all other rights and
remedies provided for herein.

D. RIGHTS AND REMEDIES.

      The  Creditor  shall have,  in addition to any other  rights and  remedies
contained  in this  Agreement,  and any  other  agreements,  guarantees,  notes,
instruments and documents heretofore,  now, or at any time hereafter executed by
Debtor and delivered to the  Creditor,  all the rights and remedies of a secured
party' under the Uniform Commercial Code or any other applicable law in force in
the State of Florida as of the date hereof, or as subsequently  amended,  all of
which rights and remedies shall be cumulative and nonexclusive,  as permitted by
law.

      During  the life of this  Agreement,  Creditor  shall  have the  following
rights and remedies:

      1.  Creditor,  and any  agent  of  Creditor,  is  hereby  constituted  and
appointed as true and lawful attorney-in-fact of Debtor with power:

      (a) With regard to Accounts, to notify or require Debtor to notify any and
all  account  debtors  or  parties  against  which  Debtor  has a claim that the
Accounts  have been  assigned to Creditor  and/or that  Creditor  has a security
interest therein and that all payments should be made to Creditor;

                                       5
<PAGE>

      (b) To  endorse  the  name of  Debtor  upon  any  instruments  of  payment
(including  payments made under any policy of insurance)  that may come into the
possession of Creditor in full or part payment of any amount owing to Creditor;

      (c) To sign and endorse the name of Debtor  upon any  invoice,  freight or
express  bill,  bill of lading,  storage or  warehouse  receipt,  draft  against
account  debtors or other  obligors  and with  regard to  Accounts,  to sign and
endorse  the name of  Debtor  on any  assignment,  verification,  and  notice in
connection therewith,  and any instrument or document relating thereto or to the
rights of Debtor therein;

      (d) To notify post office  authorities  to change the address for delivery
of mail of Debtor to an address designated by Creditor and to receive, open, and
dispose of all mail addressed to Debtor;

      (e) With regard to Accounts,  to send requests for verification of account
debtors or other obligors;

      (f) To sell,  assign, sue for, collect or compromise payment of all or any
part of the  Collateral  in the name of Debtor  or in its own name,  or make any
other disposition of the Collateral,  or any part thereof, which disposition may
be for cash, credit or any combination thereof; and

      (g) To  purchase  all or any  part of the  Collateral  at  public  or,  if
permitted by law,  private sale,  and in lieu of actual payment of such purchase
price, to set off the amount of such price against the indebtedness.

      2. Granting to Creditor,  as the attorney-in-fact of Debtor, full power of
substitution and full power to do any and all things necessary to be done in and
about the premises as fully and  effectually as Debtor might or could do but for
this  appointment,  and hereby  ratifying all that said  attorney-in-fact  shall
lawfully do or cause to be done by virtue hereof, neither Creditor nor its agent
shall be  liable  for any acts or  omissions  or for any  error of  judgment  or
mistake of fact or law in its capacity as such  attorney-in-fact.  This power of
attorney is coupled  with an interest  and shall be  irrevocable  as long as any
Indebtedness shall remain outstanding.

      Creditor  shall have the right to enter and/or remain upon the premises of
Debtor,  without any  obligation  to pay rent to Debtor or others,  or any other
place or places where any of the Collateral is located or kept, and:

      (a) Remove  Collateral  therefrom to the premises of Creditor or any agent
of Creditor,  for such time as Creditor may desire, in order to maintain,  sell,
collect and/or liquidate the Collateral;

      (b) Use such  premises,  together  with  materials,  supplies,  books  and
records  of  Debtor;  to  maintain   possession  and/or  the  condition  of  the
Collateral,   and  to  prepare  the  Collateral  for  selling,   liquidating  or
collecting;

                                       6
<PAGE>

      (c) Creditor may require  Debtor to assemble  the  Collateral  and make if
available  to  Creditor  at a  place  to be  designated  by  Creditor  which  is
reasonably convenient to both parties; and

      (d) Any  notice  required  to be given to  Creditor  under  law or by this
Agreement,  when deposited in the United States mails addressed to Debtor at its
address above (or at such other address as shall have  previously  been provided
to  Creditor  in  writing)  at least five (5) days prior to any action  Creditor
proposes  to take,  shall  constitute  reasonable  notice  to Debtor of any such
action.

      The net proceeds  realized by Creditor upon a sale or other disposition of
the  Collateral,  or any  part  thereof,  after  deduction  of the  expenses  of
retaking,  holding,  preparing  for sale,  selling or the like,  and  reasonable
attorneys' fees end other expenses incurred by Creditor, shall be applied toward
satisfaction of the indebtedness hereunder. Creditor shall account to Debtor for
any surplus  realized  upon such sale or other  disposition  and Debtor or other
Obligor shall remain liable for any deficiency.

      The commencement of any action,  legal or equitable,  shall not affect the
security interest of Creditor in the Collateral until the Indebtedness hereunder
or any judgment therefore are fully paid.

E. MISCELLANEOUS.

      No waiver by  Creditor  of any  default  shall  operate as a waiver of any
other default or of the same default on a future occasion.  No delay or omission
on the part of Creditor in  exercising  any right or remedy  shall  operate as a
waiver  thereof,  and no single or partial  exercise by Creditor of any right or
remedy  shall  preclude or affect any other or further  exercise  thereof or the
exercise of any right or remedy.  Time is of the essence in this Agreement.  The
provisions  of  this   Agreement  are   cumulative  to  the  provisions  of  any
Indebtedness and any note or other writing  evidencing any Indebtedness  secured
by this Agreement, and Creditor shall have all the benefits, rights and remedies
of and under  any  Indebtedness  and any note or other  writing  evidencing  any
Indebtedness  secured  hereby.  The singular  pronoun,  when used herein,  shall
include the plural, and the neuter shall include the masculine and feminine. All
rights of Creditor  hereunder  shall inure to the benefit of its  successors and
assigns;  and all  obligations  of  Debtor  shall  bind  the  heirs,  executors,
administrators, successors and assigns of each Debtor.

      This  Agreement is delivered in and shall be construed  under the internal
laws and  judicial  decisions  of the State of  Florida,  and the laws of United
States as the same might be applicable.  In any litigation in connection with or
to enforce this Agreement,  Debtor irrevocably  consents to and confers personal
jurisdiction  on the courts of the State of Florida or the United  States courts
located within the State of Florida,  and expressly  waives any objections as to
venue in any of such  courts;  and agrees that service of process may be made on
Debtor by mailing a copy of the summons and complaint by registered or certified
mail, return receipt  requested,  to Debtor's address.  Nothing contained herein
shall, however,  prevent the Creditor from bringing any action or exercising any
rights  within  any  other  state or  jurisdiction  or from  obtaining  personal
jurisdiction by any other means available by applicable law.

                                       7
<PAGE>

BORROWER  HEREBY WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY ACTION BROUGHT ON THIS
AGREEMENT OR ON ANY MATTER ARISING IN CONNECTION WITH THIS AGREEMENT.

      IN WITNESS WHEREOF,  this Agreement has been duly executed the 29th day of
August, 2003, effective July 22, 2003.

Witnesses:

                                           Robotic Workspace Technologies, Inc.,
                                           a Maryland corporation

/s/ Scott D. Koenig                        /S/ Walter K. Weisel
---------------------                      -----------------------
Print Name: /s/ Scott D. Koenig            Walter K. Weisel
            -------------------            Its: President

/s/ Paula Malone
---------------------
Print Name: Paula Malone
            ------------

                                       8SUBLICENSE AGREEMENT

      THIS SUBLICENSE AGREEMENT, made as of this 24th day of June, 2000 by and
between MANHATTAN SCIENTIFICS, INC., a public Delaware corporation having
offices located at 641 Fifth Avenue, New York, New York, USA ("MHTX") and Novint
Technologies, Inc., a private New Mexico Corporation having offices located at
4900 Cutting Avenue NW, Albuquerque, New Mexico 87114 ("NOVINT").

                              W I T N E S S E T H:

      WHEREAS, MHTX is engaged in, among other things, research, development and
marketing of certain proprietary technologies, and products incorporating such
technologies; and

      WHEREAS, Novint is engaged in the research and development of certain
proprietary technologies and products in the area of Haptics (as such term is
defined in the R&D Agreement); and

      WHEREAS, pursuant to agreement dated April 11, 2000, Novint licensed the
Sandia Software and Sandia Patents under terms and conditions set forth in the
Sandia-Novint License;

      WHEREAS, MHTX desires to acquire an exclusive worldwide sub-license to the
existing and developing Sandia Haptics Technologies in the Field of Use, subject
to this Sublicense Agreement; and

      WHEREAS, pursuant to the R&D Agreement, MHTX is acquiring the Novint-MHTX
License which is an exclusive worldwide license to the existing and developing
Novint Technologies in the Field of Use;

      NOW, THEREFORE, upon good and valuable consideration, the receipt and
legal sufficiency of which are hereby acknowledged, the parties hereto do hereby
agree as follows:

ARTICLE I: DEFINITIONS.   As used in this Sublicense Agreement:

      1.1 "Field of Use" shall have the meaning given such term in the R&D
Agreement with Sandia Haptics Technologies substituted for Novint Technologies.

      1.2 "Net Revenue" shall have the meaning given such term in the R&D
Agreement with Sandia Haptics Technologies substituted for Novint Technologies.

      1.3 "Sandia Patents" shall have the meaning given such term in the
Sandia-Novint License.

<PAGE>

      1.4 "Sandia Software" shall have the meaning given such term in the
Sandia-Novint License.

      1.5 "Sandia Haptics Technologies" shall mean the Sandia Patents and Sandia
Software collectively and further shall have the meaning given such term in the
R&D Agreement.

      1.6 "Sandia-Novint License" shall mean the License Agreement dated as of
April 11, 2000 between Sandia Corporation and Novint relating to the Sandia
Haptics Technologies, a photocopy of which is attached to this Sublicense
Agreement as Exhibit A.

      1.7 "R&D Agreement" shall mean the Research and Development Agreement
dated as of June 23, 2000 between MHTX and Novint relating, in part, to the
Novint-MHTX License and the sublicense to be granted pursuant to this Sublicense
Agreement, a photocopy of which is attached to this Sublicense Agreement as
Exhibit B.

      1.8 "Novint-MHTX License" shall mean the license granted to MHTX by Novint
of the Novint Technologies under the terms and conditions of the R&D Agreement.

      1.9 "Novint Technologies" shall have the meaning given such term in the
R&D Agreement.

      1.10 "Sublicense" shall mean the rights granted to MHTX by Novint pursuant
to the terms and conditions of this Sublicense Agreement.

      1.11 "R&D Royalty" shall have the meaning given such term in the R&D
Agreement with Sandia Haptics Technology substituted for Novint Technologies.

      1.12 "License Royalty" shall have the meaning given such term in the R&D
Agreement with Sandia Haptics Technology substituted for Novint Technologies.

ARTICLE 2: GRANT.

      2.1 Within the Field of Use, and subject to the terms, conditions, and
restrictions of (i) this Sublicense Agreement, (ii) the Sandia-Novint License,
and (iii) the R& D Agreement, Novint hereby grants to MHTX an exclusive,
worldwide, perpetual sublicense in and to the Sandia Haptics Technologies for
use in conjunction with the Novint-MHTX License. This grant of sublicense
includes all of the existing worldwide intellectual property rights arising out
of or relating to the Sandia Haptics Technologies, including without limitation
patents, patent applications, trademarks, trademark applications, copyrights,
copyright applications, software, computer programs, source code, computer
hardware, know-how, trade secrets, discoveries, ideas, concepts, techniques,
designs, specifications, and the like.

                                       2
<PAGE>

      2.2 Subject to paragraph 1(f) of the R&D Agreement, the Sublicense
includes, without limitation, the right of MHTX to develop, upgrade,
manufacture, distribute and sell in all market segments, products incorporating
the Sandia Haptics Technologies within the Field of Use, as well as the right to
further develop, upgrade, and make derivative works based upon the Sandia
Haptics Technologies within the Field of Use.

      2.3 The Sublicense includes, without limitation, the right of MHTX to
sublicense and to sub-sublicense all of its rights under this Agreement;
provided, however, that each such sub-licensee or sub-sub-licensee (together
"Sub-Licensees") agrees to be subject to and bound by all of the terms and
conditions of this Sublicense Agreement, the R&D Agreement, and of the
Sandia-Novint License. Novint shall be a third party beneficiary of any
agreement between MHTX and any sub-licensee or of any agreement between any
sub-licensee and sub-sub-licensee.

      2.4 With respect to the Sandia Haptics Technologies, and within the Field
of Use, all discoveries, improvements, derivative works, inventions, patents,
copyrightable expressions, trademarks, computer programs, software, upgrades,
source code, computer hardware, research and development results, trade secrets
and the like, conceived or first reduced to practice or fixed, know-how, ideas,
concepts, techniques, designs, specifications, and the like, whether now known
or hereinafter created, conceived or otherwise developed by Novint and/or its
employees, contractors or affiliates in the performance of any research and
development, are included (without limitation) for all purposes in the
Sublicense.

      2.5 MHTX shall not disclose source code or technical information about the
Sandia Haptics Technologies to any third party without prior written approval of
Novint. Nothing in the preceding sentence shall be construed to (i) require MHTX
to obtain approval from Novint prior to licensing the Sandia Haptics
Technologies to Sub-Licensees and providing such Sub-Licensees with copies of
Web Browser Applications and Content Creation Applications (as defined in the
R&D Agreement) for replication; or (ii) preclude MHTX from exercising its rights
under paragraph 1(f) of the R&D Agreement.

      2.6 MHTX will use its reasonable best efforts to actively commercialize,
and bring to market, products and services incorporating the Sandia Haptics
Technologies within the Field of Use. Novint acknowledges that MHTX is a
technology incubator, that MHTX is and will continue to be actively involved in
the development and commercialization of several technologies other than the
Sandia Haptics Technologies, and that MHTX will not be devoting its exclusive
attention to the Sandia Haptics Technologies.

      2.7 As required by the Sandia-Novint License, should Novint fail to pay
royalties due to Sandia Corporation upon monies Novint receives from MHTX, MHTX
hereby agrees to pay such royalties due directly to Sandia Corporation.

ARTICLE 3: ROYALTIES. In consideration for the Sublicense, MHTX shall pay Novint
royalties as and when specified in the R&D Agreement. For the sake of
clarification, it is understood and agreed that the only royalties payable by
MHTX are those specified in the R&D Agreement, and that this Agreement does not
require the payment of other royalties in addition those specified in the R&D
Agreement.

                                       3
<PAGE>

ARTICLE 4: BREACH. If at any time (i) MHTX is obligated and fails to pay Novint
any portion of the R&D Royalty or the License Royalty that is due and payable,
or (ii) breaches this Sublicense Agreement, or (iii) breaches the R&D Agreement,
or (iv) the R&D Agreement is terminated by MHTX for any reason, or (v) if MHTX
fails to use its reasonable best efforts to actively commercialize the Sandia
Haptics Technologies within the Field of Use (each, a "MHTX Breach"), then in
any such case Novint shall serve written notice of same to MHTX. If, within 90
days of receipt of such notice, MHTX fails to (a) cure such MHTX Breach, or (b)
reasonably and in good faith, controvert such MHTX Breach in writing, then
MHTX's Sublicense shall become non-exclusive. If MHTX controverts any MHTX
Breach and it is finally determined that an MHTX Breach was committed, then
MHTX's License shall become non-exclusive if such breach is not cured within 30
days of such final determination.

ARTICLE 5: INDEMNIFICATION.

      5.1 Novint hereby agrees to indemnify, defend and hold MHTX harmless from
and against any and all liability, damage, claims (whether actual or threatened)
or expense (including without limitation reasonable legal fees) arising out of
or relating to the breach by Novint of any representation, warranty, covenant,
or provision of this agreement.

      5.2 MHTX hereby agrees to indemnify, defend and hold Novint harmless from
and against any and all liability, damage, claims (whether actual or threatened)
or expense (including without limitation reasonable legal fees) arising out of
or relating to the breach by MHTX of any representation, warranty, covenant, or
provision of this agreement.

ARTICLE 6: NOTICES. Any notice or other communication in connection with this
agreement shall be in writing and delivered by overnight courier and facsimile
addressed to a party hereto at the addresses provided below (or to such person
or address as such party shall specify in writing to the other parties hereto):

                                    If to Novint:

                                    Mr. Thomas Anderson
                                    Novint Technologies, Inc.
                                    4900 Cutting Avenue, NW
                                    Albuquerque, New Mexico  87114

                                       4
<PAGE>

                                    If to MHTX:

                                    Marvin Maslow, CEO
                                    Manhattan Scientifics, Inc.
                                    641 Fifth Avenue, Suite 36F
                                    New York, New York 10022

                                            And

                                    Jack Harrod, COO
                                    Manhattan Scientifics, Inc.
                                    127 Eastgate Drive

                                    Los Alamos, New Mexico 87544

                                        With a Copy to

                                    Scott L. Bach, Esq.
                                    Bach & Associates
                                    One Rockefeller Plaza, Suite 210
                                    New York, New York 10020

      Each party may designate a change of address by notice to the other party,
given at least five (5) days before such change of address is to become
effective.

      Any written notice shall be deemed to have been served forty-eight (48)
hours after the date it was transmitted in accordance with the foregoing
provisions.

ARTICLE 7: MISCELLANEOUS.

      7.1 MODIFICATION. This agreement contains the entire understanding between
the parties with respect to the subject matter hereof, and any promises,
representations, warranties or guarantees not herein contained shall have no
force or effect unless in writing, signed by all parties. Neither this agreement
nor any portion or provision hereof may be changed, modified, amended, waived,
supplemented, discharged, cancelled or terminated orally or by any course of
dealing, or in any manner other than by an agreement in writing, signed by the
party to be charged.

      7.2 GOVERNING LAW AND OTHER MATTERS. This agreement and the rights and
obligations of the parties hereunder shall be governed by and construed in
accordance with the laws of the State of New York. Novint and MHTX hereby (i)
waive any right to trial by jury in any legal proceeding related in any way to
this agreement; (ii) agree that venue of all disputes shall be in New York
County; and (iii) waive any objection and consent to personal jurisdiction,
subject matter jurisdiction and venue of and in the courts located in New York
County.

      7.3 INVALIDITY. If any part of this agreement is contrary to, prohibited
by, or deemed invalid under applicable laws or regulations, such provision shall
be inapplicable and deemed omitted to the extent so contrary, prohibited or
invalid, but the remainder hereof shall not be invalidated thereby and shall be
given effect so far as possible.

                                       5
<PAGE>

      7.4 BENEFIT OF AGREEMENT. This agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns
only and is not intended for the benefit of any other party.

      7.5 CAPTIONS. The captions of the various sections and paragraphs of this
agreement have been inserted only for the purpose of convenience. Such captions
are not a part of this agreement and shall not be deemed in any manner to
modify, explain, enlarge or restrict any of the provisions of the agreement.

      7.6 INCORPORATION BY REFERENCE. All of the "Whereas" clauses at the
beginning of this agreement, and all of the Schedules and Exhibits annexed
hereto, are hereby incorporated by reference and made a part hereof.

      7.7 COUNTERPARTS; WHEN EFFECTIVE. This agreement may be executed in
counterparts and/or via facsimile. This agreement shall become effective and
enforceable upon MHTX's receipt of a fully and properly executed original
notarized copy hereof bearing complete and mutually agreed copies of all
schedules referenced herein.

      7.8 PROHIBITION OF ASSIGNMENT. None of the parties may assign this
agreement to any third party without the prior written consent of all the
parties hereto. Notwithstanding the foregoing, nothing shall prohibit any party
from assigning its right to receive monies pursuant to this agreement to any
third party, provided that the third party agrees that its right to receive
monies is subject to the terms and conditions of this Agreement.

      7.9 FURTHER ASSURANCES. Novint and MHTX agree to promptly execute any and
all documents and instruments necessary to effect, register, update and/or
document the Sublicense. Further, MHTX agrees that it will place, or will
require others with MHTX contracts, to place the trademark/service mark
"e-Touch" on each product manufactured or service provided incorporating Sandia
Haptics Technology.

      7.10 NON-DISCLOSURE. None of the parties (or their respective officers,
directors and employees, as appropriate) shall disclose to third parties the
terms of this Agreement, or the fact that it has been entered into, prior to
August 1, 2000 or such other time to which the parties may agree.

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the day and year first above written.

                                       6
<PAGE>

               MANHATTAN SCIENTIFICS, INC.

               By: _____________________________________
               Marvin Maslow, Chairman, CEO and President (on his 63rd birthday)

               NOVINT TECHNOLOGIES, INC.

               By: _____________________________________
                    Thomas Anderson, President

NOTARIZATION OF PARTY SIGNATURES:

                  MHTX:

                  NOVINT:

                                       7
<PAGE>

                                    EXHIBIT A

                              SANDIA-NOVINT LICENSE

                                       8
<PAGE>

                                    EXHIBIT B

                                  R&D AGREEMENT

                                       9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]