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NullPointerException means that you're trying to use an object that is null, i.e., you haven't "new"-ed it.
You're not showing all of the code, and you didn't say when exactly you're getting the exception (immediately, or when you click the applet with the mouse?). Are you sure you created th, because I don't see that in the code, and if you didn't then th.start() would throw an NullPointerException because that is null.
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