Document:

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                                                                   Exhibit 10.27

            AMSOUTH SECURITY AGREEMENT FOR TANGIBLE PERSONAL PROPERTY

     THIS SECURITY AGREEMENT thereinafter, with all amendments hereto being
referred to as this "Agreement") dated May 31, 2000 is executed by SURGICAL
LASER TECHNOLOGIES, INC. (the "Borrower") whether one or more, in favor of
AMSOUTH BANK NA, a national banking association (the "Lender").

RECITAL
     The Borrower and the Lender have agreed that the Borrower shall grant a
security interest and other rights in and to the Collateral (as hereinafter
defined) to the Lender in order to secure the Obligations described herein.

AGREEMENT
     For good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Borrower and the Lender hereby agree as follows.

Article 1. Defined Terms.

     Section 1.01 General Provisions About Definitions. The terms defined in
this Article include the plural as well as the singular, and vice versa. All
accounting terms not otherwise defined herein have the meanings assigned to
them, and all computations herein provided for shall be made in accordance with
generally accepted accounting principles. All references in this instrument to
designated "Articles," "Sections" and other subdivisions are to the designated
Articles, Sections, and subdivisions of this instrument as originally executed.
The terms "herein", "hereof" and "hereunder" and other words of similar import
refer to this Agreement as a whole and not to any particular Article, Section,
or other subdivision.

     Section 1.02 Defined Terms. For the purposes of this Agreement, except as
otherwise expressly provided or unless the context otherwise requires, the terms
used in this Agreement that are defined in this Section have the meanings
assigned to them in this Section.

(a)  "Business Day" means any day other than a Saturday or Sunday or a public or
     bank holiday or the equivalent for banks generally under the laws of the
     State of Alabama and the United States.

(b)  "Governmental Authority" means any court or any federal, state, municipal,
     or other governmental department, commission, board, bureau, agency, or
     instrumentality, domestic or foreign.

(c)  "Lien" means and includes any mortgage, deed of trust, security deed,
     pledge, lien, security interest, hypothecation, claim, assignment, deposit
     arrangement, easement, restriction, charge or encumbrance, and any other
     security device or preferential arrangement of any nature whatsoever.

(d)  "Loan Documents" means this Agreement and any note, other security
     agreement, guaranty agreement or other document or instrument now or
     hereafter evidencing, securing, guaranteeing, or executed in connection
     with any of the Obligations.

(e)  "Obligations" has the meaning assigned to that term in Section 2.01.

(f)  "Obligor" means and includes the Borrower and any other maker, endorser,
     surety, guarantor, or other person liable for the payment or performance of
     the Obligations, or any part thereof.

(g)  "Permitted Encumbrances" means the matters, if any, set forth on Exhibit A
     attached hereto and made a part hereof. (If there is no Exhibit A, there
     are no Permitted Encumbrances).

(h)  "Person" shall mean any natural person, corporation, partnership, joint
     venture, or other entity.

(i)  "Collateral" has the meaning assigned to that term in Section 2.02.

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Article 2. Security Agreement.

     Section 2.01 Obligations Secured. This Agreement is given to secure and
     shall secure the prompt payment of the following (collectively called the
     "Obligations"):

(a)  The principal of and interest on all indebtedness, obligations (including
     obligations of performance) and liabilities of the Borrower to the Lender
     of every kind and description whatsoever, direct or indirect, absolute or
     contingent, due or to become due, now existing or hereafter incurred,
     contracted, or arising, or acquired by the Lender from any source, joint or
     several, liquidated or unliquidated, regardless of how they arise or by
     what agreement or instrument they may be evidenced or whether they are
     evidenced by agreement or instrument, and whether incurred as maker,
     endorser, surety, guarantor or otherwise, and any and all extensions or
     renewals of any of the same, including without limitation any reimbursement
     obligations incurred in connection with the issuance of a letter of credit;
     and

(b)  The compliance with and performance of each and every obligation, covenant,
     duty, condition, and agreement on the part of the Borrower under this
     Agreement and any of the other Loan Documents.

Section 2.02 Granting Clause and Collateral. As security for the Obligations,
the Borrower does hereby transfer, sell, assign, and convey to the Lender, and
grant to the Lender a security interest in, all of its right, title, and
interest in, to and under the following Collateral of the Borrower, whether now
owned or hereafter acquired by the Borrower, and wherever located (collectively,
the "Collateral"):

(a)  SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF AS IF SET OUT FULLY
     AT THIS POINT.

(b) Any and all accessions and additions now or hereafter made or added to any
of the Collateral described in subparagraph (a) above, any repair parts,
substitutions, and replacements therefor, and all attachments and improvements
now or hereafter placed upon or used in connection therewith, or any part
thereof; and

(c)  All proceeds and products of any of the foregoing.

No submission by the Borrower to the Lender on a schedule or other particular
identification of Collateral shall be necessary to vest in the Lender security
title to and a security interest in each and every item of Collateral now
existing or hereafter created and acquired, but rather such title and security
interest shall vest in the Lender immediately upon the creation or acquisition
of any item of Collateral hereafter created or acquired, without the necessity
for any other or further action by the Borrower or by the Lender.

Section 2.03 General Representations and Warranties. The Borrower represents and
warrants as follows:

(a)  The Borrower is the lawful and absolute owner of the Collateral and has a
     good right to transfer, sell, assign, convey and grant a security interest
     in the same under this Agreement; the Collateral is free and clear of all
     Liens other than Permitted Encumbrances, except for such vestigial Liens
     which Borrower shall promptly cause to be lifted, and the Borrower does
     hereby warrant and will forever defend the title to the Collateral unto the
     Lender, its successors and assigns, against the claims of all persons
     whomsoever, whether lawful or unlawful.

(b)  No financing statement covering any of the Collateral is on file at any
     public office except as identified in paragraph (a) above.

(c)  The Borrower's principal place of business and chief executive office are
     located at the following address(es): 147 Keystone Drive, Montgomeryville,
     PA 18936.

(d)  If the Collateral is or is to become a fixture, the legal description of
     the real estate on which the Collateral is or will become affixed and the
     name of the record owner of that real estate is as follows: Legal
     Description: N/A; Name or record owner: N/A.

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Section 2.04 General Covenants and Agreements. The Borrower covenants and agrees
with the Lender as follows:

(a)  The Collateral shall be kept (or in the case of a motor vehicle,
     principally garaged) at the following locations: VARIOUS LOCATIONS, and
     said locations, and the locations of the Borrower's principal place of
     business and chief executive office shall not be changed without the prior
     written consent of the Lender.

(b)  The Borrower shall immediately advise the Lender in writing of any change
     in the location of its principal place of business, the location of its
     chief executive office, or the places where the Collateral is kept.

(c)  The Borrower is and shall remain the owner of all real estate on which any
     of the locations on which any of the Collateral is kept are located; or if
     not, the Borrower shall promptly upon Lender's request obtain from each
     owner of said real estate (and such owner's mortgagee, if applicable) a
     written waiver or subordination in form and substance satisfactory to the
     Lender) of any landlord's Lien, other Lien, or other interest said owner
     (or such mortgagee) might have with respect to the Collateral.

(d)  Unless Section 2.03(d) is completed, the Borrower will not allow any of the
     Collateral to become attached to any real estate in such manner as to
     become a fixture or a part thereof without the written consent of the
     Lender. However, if at any time any of the Collateral should be affixed to
     any real estate, the security interest of the Lender under this Agreement
     shall nevertheless continue in that Collateral. The Borrower shall promptly
     furnish to the Lender a description of such real estate and the names of
     the record owners thereof, execute such additional financing statements and
     other documents as the Lender may require, obtain from the owners of such
     real estate and the holders of any Liens thereon such subordination
     agreements and other documents as the Lender may request, and take such
     other actions as the Lender may deem necessary or desirable in order to
     preserve and perfect the Lender's security interest therein as a first
     priority perfected security interest.

(e)  The Borrower will not, without the prior consent of the Lender, grant any
     security interest in any of the Collateral to any Person other than the
     Lender, or permit any Lien to attach to any of the Collateral or any levy
     to be made thereon or any financing statement (other than those of the
     Lender) to be on file with respect thereto.

(f)  At the request of the Lender, the Borrower will join with the Lender in
     executing one or more financing statements pursuant to the Uniform
     Commercial Code in form satisfactory to the Lender covering the Collateral
     and will pay the costs of filing the same in all public offices wherever
     filing is deemed necessary or prudent by the Lender. In the event that the
     Borrower fails or refuses to execute any such financing statement, the
     Lender may file an executed copy or photocopy of an executed copy of this
     Agreement as a financing statement in any such offices to the extent
     permitted by applicable law.

(g)  The Lender may correct any and all patent errors in this Agreement or any
     financing statements or other documents executed in connection herewith.

(h)  The Borrower shall inform the Lender in writing of any material adverse
     change in any of the representations and warranties of the Borrower under
     this Agreement, promptly after the Borrower shall learn of such change.

(i)  The Borrower shall furnish to the Lender from time to time statements and
     schedules further identifying and describing the Collateral and such other
     reports in connection with the Collateral as the Lender may reasonably
     request, all in reasonable detail.

(j)  The Borrower will keep and maintain at its own cost and expense
     satisfactory and complete records of the Collateral. For the further
     security of the Lender, the Borrower agrees that the Lender shall have a
     security interest in all of the Borrower's books and records pertaining to
     the Collateral. Upon request of the Lender such books and records will be
     segregated and marked by the Borrower with the Lender's name in a manner
     satisfactory to the Lender. After the occurrence of an Event of Default the
     Borrower shall deliver and turn

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     over to the Lender any such books and records at any time on demand of the
     Lender, where Borrower shall keep copy of same.

(k)  The Borrower shall promptly upon Lender's request deliver to the Lender the
     certificates of title for any motor vehicles now or hereafter included in
     the Collateral that are subject to the Alabama Uniform Certificate of Title
     and Anti-theft Act or the title laws of any other jurisdiction and shall
     join with the Lender in executing any applications and other documents and
     taking any other actions necessary or desirable in the Lender's opinion to
     perfect its security interest under this Agreement in such vehicles. The
     Lender may retain possession of such certificates of title until this
     Agreement is terminated asset forth in Section 4.08.

     Section 2.05 Taxes and Assessments. The Borrower shall pay all taxes,
rents, assessments, and charges levied against any of the Collateral, or any
part thereof, and all other clams that are or may become Liens against the
Collateral. or any part thereof, and should default be made in the payment of
same, the Lender, at its option, may (without waiving the resulting Event of
Default) pay them.

     Section  2.06 Insurance. The Borrower shall keep all Collateral insured
against loss by fire, theft, and, in the case of any vehicle, collision, in such
manner, in such amounts and with such companies as are satisfactory to the
Lender, the loss payable clause of which policies shall be in favor of the
Lender, as its interests may appear. As further security for the Obligations,
the Borrower hereby assigns and pledges to the Lender for its benefit, each and
every policy of insurance covering the Collateral, or any part thereof,
including all proceeds and returned premiums. The Borrower agrees that all
insurance policies required by this Agreement or by other documents executed in
connection herewith shall be delivered to and held by Lender and shall provide
for at least 30 days' written notice to Lender prior to cancellation. If the
Borrower fails to keep the Collateral, or any portion thereof, insured as above
specified, then (without waiving the resulting Event of Default) the Lender may,
at its option, immediately insure the Collateral, or any portion thereof for its
own benefit. The loss, injury or description of the Collateral, or any part
thereof, shall not abate, satisfy, or release any of the Obligations; and the
proceeds of such insurance, if collected, less the cost of collecting the same,
shall be credited on the Obligations in such order as the Lender shall elect,
or, at the election of the Lender, may be used in repairing or replacing the
Collateral.

     Section  2.07 Care of Collateral; Notice of Loss, etc. The Borrower shall:
(a) take good care of the Collateral; (b) not commit or permit any waste
thereon; (c) keep all Collateral in good repair; (d) at all times with maintain
the same in as good condition as it is now in, reasonable wear and tear alone
excepted; (e) not use, or permit the Collateral to be used, in violation of any
statute, law or ordinance; and (f) notify the Lender immediately in writing of
any event causing material loss or depreciation in value of any of the
Collateral, and of the amount of such loss or depreciation (other than
depreciation in the Collateral resulting from ordinary wear and tear).

     Section  2.08 Access to Collateral and Records. The Lender or its agents
shall have the right to call at any of the Borrower's places of business (or any
other place where any other Collateral is located) to inspect and examine the
Collateral and to inspect, audit, check and make abstracts from the books,
records, journals, orders, receipts, correspondence, and other data relating to
the Collateral or to any other transactions between the Borrower and the Lender.

     Section  2.09 Filing Fees and Taxes. The Borrower agrees, to the extent it
may lawfully do so, to pay all recording and filing fees, revenue stamps, taxes
or other expenses and charges payable in connection with the execution and
delivery to the Lender of this Agreement, or on the recording, filing,
satisfaction, continuation, or release of any financing statements or other
instruments filed or recorded in connection herewith.

     Section  2.10 Use of Collateral. The Borrower agrees (a) to perform or
comply with the terms of any lease covering the premises wherein the Collateral
is located and all orders, ordinances, or laws of any Governmental Authority
concerning such premises r the conduct of business therein; (b) not to conceal
or abandon the Collateral; and (c) not to lease or hire any of the Collateral to
any Person or permit the same to be leased or used for hire otherwise than
pursuant to any Permitted Encumbrances, except in the ordinary course of its
business.

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Article 3. Events of Default and Remedies.

     Section 3.01 Events of Default. Upon the occurrence of any Event of Default
under this Agreement or at any time hereafter, all of the Obligations, with
interest thereon, shall at once become due and payable at the option of the
Lender. As used in this Agreement, the term "Event of Default" shall mean the
occurrence or happening of any one or more of the following events,
circumstances, or conditions:

(a)  any representation or warranty made herein or in any of the other Loan
     Documents shall prove to be false or misleading in any material respect; or

(b)  any report, certificate, financial statement, schedule, or other instrument
     furnished in connection with this Agreement or any of the other Loan
     Documents or the Obligations shall prove to be false or misleading in any
     material respect; or

(c)  any default shall be made in the payment of the principal of or interest on
     the Obligations, or any portion of them, as and when due and payable; or

(d)  the occurrence of any event which will or could result in the acceleration
     of the maturity of any indebtedness of the Borrower other than the
     Obligations or any such indebtedness shall not be paid when due; or

(e)  any uninsured material portion of the Collateral shall be lost, stolen,
     damaged, sold, destroyed, or encumbered, or any levy, seizure, or
     attachment shall be issued or made thereof or thereon; or

(f)  any failure by the Borrower to observe or perform any covenant, condition,
     or agreement contained in this Agreement other than those described in
     paragraphs (a) through (e) next above and such failure shall continue
     unremedied for 30 days after written notice thereof shall have been given
     by the Lender to the Borrower; or

(g)  any failure by any guarantor to observe or perform any covenant, condition
     or agreement contained in a guaranty agreement pertaining to any of the
     Obligations, or the occurrence of any other event of default under any such
     guaranty agreement (after giving effect to any applicable notice, grace, or
     cure period provided for therein), or the termination by any guarantor of
     the obligations of such guarantor under any continuing guaranty agreement
     pertaining to any of the Obligations; or

(h)  the insolvency, dissolution, liquidation, suspension of business, or death
     of any Obligor, or of any of any Obligor's principal officers (if a
     corporation) or of any of the Borrower's general partners (if a
     partnership); or

(i)  the failure of any Obligor to pay his or its debts generally as they become
     due, the admission in writing by an Obligor of his or its inability to pay
     his or its debts generally as they come due, or the making by any Obligor
     of a general assignment for the benefit of creditors; or

(j)  the filing of a petition or any other commencement of a proceeding by or
     against any Obligor or involving any property or assets of any Obligor
     under any provision of any bankruptcy, insolvency. liquidation,
     reorganization, or similar law or other law providing for the relief of
     debtors or if corporate or partnership action should be taken by the
     Borrower or any other Obligor for the purpose of effecting any of the
     foregoing; or

(k)  the application for, consent to, or appointment of a receiver, trustee,
     liquidator, conservator, or other custodian of any Obligor or any property
     or assets (including the Collateral) of any Obligor; or

(l)  final judgment or judgments for the payment of money in excess of an
     aggregate of $10,000 (or it the following blank is filled in, the amount
     filled in shall be substituted for $10,000: $200,000) shall be rendered
     against any Obligor and the same shall remain undischarged for a period of
     30 days during which execution shall not be effectively stayed; or

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(m)  any default or event of default shall occur under any of the other Loan
     Documents (after giving effect to any applicable notice, grace, or cure
     period provided for therein); or

(n)  any writ of execution, attachment, or garnishment shall be issued against
     any Obligor; or

(o)  the Lender shall deem itself insecure for any reason whatsoever.

     Section 3.02 Other Rights and Remedies Upon Default. Upon the occurrence of
an Event of Default, or at any time thereafter, the whole or any part of the
Obligations secured hereby shall become immediately due and payable at the
option of the Lender, and the Lender shall have all the rights and remedies of a
Lender upon default under any applicable law and under the terms of this
Agreement, all of which shall be cumulative. Without limiting the generality of
the foregoing rights and remedies, the Lender may exercise any or all of the
following rights, remedies, and powers after default:

(a)  The Lender may require the Borrower to assemble the Collateral, or any part
     thereof, and to make it available to the Lender at any convenient place
     designated by the Lender;

(b)  The Lender may send any written notice to the Borrower required by law or
     this Agreement in the manner set forth in Section 4.09 of this Agreement;
     and any notice sent by the Lender in such manner at least 10 calendar days
     (counting the day of sending) prior to the date of a proposed disposition
     of the Collateral shall be deemed to be reasonable notice thereof; and

(c)  The Lender, without demand of performance or other demand, advertisement,
     or notice of any kind (except the notice specified in subsection (b) above
     of a proposed disposition of the Collateral to or upon the Borrower or any
     other Person (all and each of which demands, advertisements and notices are
     hereby expressly waived, to the extent permitted by applicable law), may
     forthwith collect, receive, appropriate, repossess, and realize upon the
     Collateral, or any part thereof, and may forthwith sell, lease, assign,
     give option, or options to purchase, or sell or otherwise dispose of and
     deliver the Collateral (or contract to do so), or any part thereof, in one
     or more parcels at public or private sale or sales, at any exchange
     broker's board or at any of the Lender's offices or elsewhere at such
     prices as the Lender may deem best, for cash or on credit or for future
     delivery without assumption of any credit risk. The Lender shall have the
     right upon any such public sale or sales, and to the extent permitted by
     law, upon any such private sale or sales, to purchase the whole or any part
     of the Collateral so sold, free of any right or equity of redemption, which
     equity of redemption the Borrower hereby releases. To the extent permitted
     by applicable law, the Borrower waives all claims, damages, and demands
     against the Lender arising out of the repossession, retention, or sale of
     the Collateral.

     Section  3.03 Repossession of the Collateral; Care and Custody of the
Collateral; etc. The Borrower agrees to give the Lender notice in any manner set
forth in Section 4.09 below within 24 hours of the date of repossession of the
Collateral, or any part thereof, by the Lender as to any other property of the
Borrower alleged to have been left on, upon, or in the repossessed Collateral at
the time of repossession; and such notice shall be an express condition
precedent to any action or suit for loss or damages in connection therewith. The
Borrower further agrees that the Lender may hold any such Collateral of the
Borrower without liability for a reasonable time after any such notice is
received, and that the Lender will have a reasonable time to notify the Borrower
as to where the Borrower can collect such Collateral. The Borrower agrees that
if the Lender shall repossess the Collateral, or any part thereof, at a time
when no Event of Default shall have occurred hereunder, and the repossessed
Collateral is thereafter returned to the Borrower, the damages therefor, if any,
shall not exceed the fair rental value of the repossessed Collateral for the
time it was in the Lender's possession. The Borrower hereby expressly and
irrevocably consents to, and to the extent that the Borrower may lawfully do so,
invites the Lender and its agents to come upon any premises on which the
Collateral, or any part thereof, is now and hereafter located for any and all
purposes related to the Collateral including without limitation repossession of
the Collateral, or any part thereof. To the extent that the Borrower may
lawfully do so, the Borrower further covenants and warrants that (a) any entry
by the Lender and its agents upon such premises for the purpose of repossessing
the Collateral, or any part thereof, shall not be a trespass upon such

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premises and (b) any such repossession shall not constitute conversion of the
Collateral, or any part thereof. The Borrower further agrees to indemnify and
hold the Lender harmless against, and hereby releases the Lender from any
actions, costs, liabilities, or expenses arising directly, indirectly, or
remotely from any attempt to enter such premises and repossess the Collateral,
or any part thereof. The Lender shall be deemed to have exercised reasonable
care in the custody and preservation of the collateral in its possession if it
takes such reasonable actions for that purpose as the Borrower shall request in
writing, but the Lender shall have sole power to determine whether such actions
are reasonable. An omission to do any act not requested by the Borrower shall
not be deemed a failure to exercise reasonable care, and no omission to comply
with any request of the Borrower shall of itself be deemed a failure to exercise
reasonable care. The Borrower shall at all times be responsible for the
preservation of the Collateral and shall be liable for any failure to realize
upon, or to exercise any right or power with respect to, the Collateral, or for
any delay in so doing, whether or not the Collateral is in the Borrower's
possession.

Article 4. Miscellaneous

     Section 4.01 Lender May Perform. If the Borrower fails to pay or perform
any obligation contained herein, the Lender may itself pay or perform, or cause
to be paid or performed, such obligation. All amounts expended by the lender to
pay or perform (or cause to be paid or performed) any such obligation shall
become a debt due and payable at once, without demand upon or notice to any
Person, of the Borrower to the Lender, additional to the Obligations hereby
specially secured, and shall be secured hereby, and such amounts shall bear
interest until paid at two (2) percentage points (200 basis points) in excess of
the Lender's prime rate of interest in effect from time to lime as announced by
the Lender, or the highest rate permitted by law, whichever shall be less.

     Section 4.02. Costs. The Borrower shall promptly reimburse the Lender for
any and all costs and expenses, including but not limited to the reasonable fees
and disbursements of counsel to the Lender, which the Lender may incur in
connection with (a) the enforcement of the rights of the Lender in connection
with the Obligations, (b) the protection or perfection of the Lender's rights
and interests hereunder, (c) the exercise by or for the Lender of any of the
rights or powers herein conferred upon the Lender, and (d) the prosecution or
defense of any action or proceeding by or against the Lender, the Borrower or
any Obligor, or any of them, concerning any matter arising out of, connected
with or related to this Agreement, or any of the Collateral, or any of the
Obligations; provided, however, that if this Agreement is subject to Section
5-19-10, Code of Alabama 1975, such attorneys' fees shall not exceed 15% of the
unpaid debt after default and referral to an attorney not a salaried employee of
the Lender, and no attorney's tees shall be payable if the original amount
financed does not exceed $300.

     Section 4.03 Application of Proceeds. The net cash proceeds resulting from
the exercise of any of the rights and remedies of the Lender under this
Agreement, after deducting all charges, expenses, costs and attorneys' fees
(subject to the limitations set forth above) relating thereto, including any and
all costs and expenses incurred in securing the possession of Collateral,
moving, storing, repairing or finishing the manufacture of Collateral, and
preparing the same for sale, shall be applied by the Lender to the Payment of
the Obligations, whether due or to become due, in such order and in such
proportions as the Lender may elect.

     Section 4.04 Further Assurances. The Borrower, at Borrower's expense, shall
execute and deliver all such instruments and take all such action as the Lender
may reasonably request from time to time and in order to carry out the intention
of this Agreement or to facilitate the performance of the terms hereof.

     Section 4.05 Severability, etc. In case any one or more of the provisions
contained in this Agreement shall be invalid, illegal, or unenforceable in any
respect, the validity, legality, and enforceability of the remaining provisions
contained herein shall not be affected or impaired thereby, and if any one or
more of such provisions shall be invalid, illegal, or unenforceable in any
respect in any one jurisdiction, then, to the full extent permitted by
applicable law, the validity, legality, and enforceability of such provisions
and of any remaining provisions shall not be affected or impaired thereby in
other jurisdictions.

     Section 4.06 Remedies Cumulative. The rights and remedies of the Lender
under this Agreement are cumulative and not exclusive of any other rights or
remedies now or hereafter existing at law or in equity.

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     Section 4.07 Non-Waiver. No delay in exercising any right or option given
or granted hereto to the Lender shall be construed as a waiver thereof; nor
shall a single or partial exercise thereof preclude any other or further
exercise or the exercise of any other right, power, or privilege The Lender may
permit the Borrower to remedy any default without waiving the default so
remedied, and the Lender may waive any default without waiving any other
subsequent or prior default by the Borrower.

     Section 4.08 Termination. This Agreement shall remain in full force and
effect until (a) written termination statements executed by a duly authorized
officer of the Lender shall be filed for record in the office or offices in
which financing statement(s) should be filed in order to perfect a security
interest in the Collateral, and (b) all actions have been completed to release
the Lender's security interest with respect to any vehicles for which a
certificate of title is required. The Borrower agrees that this Agreement shall
secure all Obligations, whether now existing or hereafter incurred, contracted
for or arising. Payment in full of the Obligations outstanding at any one time
shall not, in the absence of the execution and recordation of written
instruments of termination and release of security interests as aforesaid,
terminate this Agreement.

     Section 4.09 Notices. Any notice shall be conclusively deemed to have been
received by a party hereto and be effective on the day on which delivered by
hand or on which sent by telecopy or facsimile transmission to such party at the
address set forth below (or at such other address or telecopy or facsimile
number as such party shall specify to the other parties in writing), or if sent
by overnight courier, on the next Business Day after the day on which sent, or
if sent by registered or certified mail, on the third Business Day after the day
on which mailed, addressed to such party at said address:

(a)  if to the Lender, at

     Mailing Address: P.O. Box 11007.
     Birmingham, AL 35288,
     Attention:

     Street Address: 1900 Fifth Avenue North,
     Birmingham. Alabama 35203

     Telecopy or facsimile number:

(b)  if to the Borrower, at

     Mailing address: 147 Keystone Drive
     Montgomeryville, PA 18936

     Street address:

     Telecopy or Facsimile number: 215/619-3209.

     Section 4.10 Plural and Singular Words. Singular terms shall include the
plural as well as the singular and vice versa.

     Section 4.11 Survival of Covenants and Successors and Assigns. All
covenants and agreements herein made by the Borrower shall survive the execution
and delivery of this Agreement and the other Loan Documents, and shall bind the
heirs, personal representatives, executors, administrators, successors, and
assigns of the undersigned, and every option, right, and privilege herein
reserved or secured to the Lender shall inure to the benefit of, and may be
exercised by, its successors and assigns.

     Section 4.12 Waivers, etc. The Borrower hereby waives presentment, demand,
protest or any notice (to the extent permitted by applicable law) of any kind in
connection with this Agreement or any Collateral. No modification, amendment or
waiver of any provision of this Agreement or any of the other Loan Documents or
consent to any departure by the Borrower therefrom, shall in any event be
effective unless the same shall be in writing and signed by

<PAGE>

the Lender, and such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. No notice to or demand on the
Borrower in any case shall entitle the Borrower to any other or further notice
or demand in the same, similar, or other circumstances.

     Section 4.13 Captions. The headings and captions in this Agreement are for
convenience of reference only and shall in no way restrict or modify any of the
terms hereof.

     Section 4.14 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute an original, but all of which
together shall constitute one and the same instrument. Each of undersigned
hereby acknowledges receipt of a duplicate copy of this Agreement.

     Section 4.15 Governing Law. This Agreement shall be governed by the laws of
the State of Alabama.

     In witness whereof, the undersigned has executed this agreement under seal
on the day and year first above written.

Surgical Laser Technologies, Inc. (seal)
By: /s/ Michael R. Stewart
Its: President & CEO

By: /s/ Davis Woodward (seal)
Its: VP, Finance, CFO

<PAGE>

                                   EXHIBIT "A"

All now owned or hereafter acquired contract rights, accounts, notes, bills,
acceptances, chattel paper, tax refunds, money on deposit, inventory, goods,
wares, parts, merchandise, supplies, materials, equipment, machinery, furniture,
furnishings, shelving, office equipment, office supplies, general intangibles of
Debtor of every description and proceeds thereof. All books and records
pertaining thereto.<PAGE>

                                                                   EXHIBIT 10.28
AmSouth(R)

     LIMITED SECURITY AGREEMENT                                        (Alabama)

     For value received. and to secure all of the Obligations as hereinafter
defined, the undersigned (hereinafter, whether one or more, collectively, the
"Obligor") hereby transfers, pledges and assigns to AmSouth Bank (hereinafter
called the "Bank") and grants and conveys to Bank security title to, a security
interest in, and a Lien upon, the following described property and assets
(hereinafter called the "Collateral"):

     (Complete as applicable)

     All investment property, financial assets, securities entitlements and all
other property of whatever nature, now or hereafter held in account number
###-##-#### maintained by the Obligor with AmSouth Investment Services, Inc.
including, without limitation, all securities, mutual fund shares, negotiable
instruments, bonds, certificates of deposit, warrants, options and general
intangibles (all terms used herein and defined in the Alabama Uniform Commercial
Code ("UCC") shall have the meanings given to them in the UCC) together with all
proceeds and avails thereof and all stock rights, rights to subscribe, dividends
and other distributions of every kind and description, stock splits, new
securities and certificates, substitutions, additions, replacements, renewals,
consolidations, modifications. interest and other rights or distributions which
are now or hereafter declared, issued, paid or payable with respect to an
account of such property and assets.

     The Obligor represents and warrants, and so long as this Limited Security
Agreement remains in effect shall be deemed continuously to represent and
warrant, that the Obligor is the owner of the Collateral free of all liens,
security interests or other encumbrances, other than the security interest
created by this Limited Security Agreement.

     "Obligation" or "Obligations" shall include all indebtedness, obligations
(including obligations of performance) and liabilities of any or all parties
named as Obligor to Bank of every kind and description whatsoever, direct or
indirect, absolute or contingent and due or to become due, now existing or
hereafter incurred, contracted or arising, or acquired by Bank from any source,
joint or several, liquidated or unliquidated, regardless of how they arise or by
what agreement or instrument they may be evidenced or whether they are evidenced
by any agreement or instrument, and whether incurred as maker, endorser, surety,
guarantor or otherwise, including without limitation obligations incurred in
connection with the issuance of a letter of credit, and any and all extensions
and renewals of any of the same.

     The Obligor agrees that any shares of stock received as a result of stock
dividends, stock splits or other such distributions with respect to the
Collateral shall be delivered to the Bank by the Obligor promptly upon receipt
by the Obligor.

     In case of depreciation in the market value of any item of the Collateral
or, if for any cause whatsoever the Collateral shall cease to be satisfactory to
Bank, such Obligor shall forthwith, upon demand of Bank deposit with Bank as
part of the Collateral additional property satisfactory to Bank. Such demand may
be made in person or by mail addressed to such Obligor at the address given
below, or if none is given, to any address of such Obligor in Bank's files.

     Bank shall have, but shall not be limited to, the following rights, each of
which may be exercised at any time without the necessity of notice to (except as
the same may be provided for elsewhere) or consent of any Obligor, but which
rights the Bank shall have no obligation, or liability for failure to exercise:

     (i)   Receive and take control of any proceeds of or income (other than
           cash dividends paid in the ordinary course prior to the occurrence of
           an Event of Default) on the Collateral, including money, and hold the
           same as Collateral, or apply the same to any one or more of the
           Obligations, the manner, order and extent of such application to be
           in the sole discretion of Bank;

<PAGE>

     (ii)  Substitute, release or surrender, deposit subject to any plan of
           reorganization, liquidate, demand, sue for, collect, compromise,
           settle or receive or receipt for the cash or surrender value of the
           Collateral; and

     (iii) Receive and take control of dividends (other than cash dividends
           received in the ordinary course prior to the occurrence of an Event
           of Default), other distributions (including stock redemption
           proceeds, or other securities in respect of or in exchange for or
           replacement of any of the Collateral), whether by way of dividends
           (other than cash dividends received in the ordinary course prior to
           the occurrence of an Event of Default), recapitalizations,
           conveyances of assets, liquidations, mergers, consolidations,
           stock-splits, spin-offs, split-ups, reclassifications, combinations
           or exchanges of shares or otherwise, such dividends, distributions or
           other securities, or certificates representing the same, to be
           thereafter treated in all respects as Collateral.

     Additions to, reductions or exchanges of, or substitutions for the
Collateral, and payments on account of the Obligations or any other
indebtednesses, obligations or liabilities incurred partially or wholly in
reliance upon the Collateral, may from time to time be made without affecting
the provisions hereof.

     Prior to the occurrence of an Event of Default, all cash dividends paid
with respect to the Collateral in the ordinary course may be retained by an
Obligor, provided that all cash dividends payable with respect to the Collateral
determined by Bank, in its absolute discretion, to represent in whole or in part
an extraordinary or liquidating dividend or distributions in return of capital
shall be paid to Bank and retained by it in a non-interest-bearing fund as
security for the Obligations, except as otherwise provided in the investment
agreement.

     Unless and until an Event of Default shall have occurred, each Obligor
shall have the right to vote any and all shares of any of the Collateral which
is comprised of voting securities pledged by such Obligor and to give consents,
waivers and ratifications with respect to any such Collateral and otherwise act
with respect thereto. All such rights of the Obligor to vote and to give
consents, waivers and ratifications shall, at the option of Bank, cease upon the
occurrence of an Event of Default.

     Bank shall be deemed to have exercised reasonable care in the custody and
preservation of the Collateral to the extent required by applicable law if it
takes such action for that purpose as any Obligor shall reasonably request in
writing; but no omission to do any act not requested by an Obligor shall be
deemed a failure to exercise reasonable care and no omission to comply with any
request of an Obligor shall of itself be deemed a failure to exercise reasonable
care. Each Obligor shall take all necessary steps to preserve rights against
prior parties to instruments or chattel paper constituting Collateral and shall
he responsible generally for its preservation, and Bank shall have no obligation
or responsibility therefor.

     Upon the happening of any one or more of the following events (herein
called, individually, an "Event of Default" and, collectively, "Events of
Default"), each of which shall constitute a default hereunder, all unpaid
amounts represented by all Obligations shall immediately become due and payable,
with interest to date (or if interest has been deducted therefrom or included
therein, with unearned interest credited), without demand or notice,
notwithstanding any other expressed maturities of any thereof, unless Bank shall
on notice of such event elect to waive in writing such acceleration: (a) Failure
of any Obligor to pay any of the Obligations, or any part thereof, when due; or
(b) Occurrence of any event of default under the provisions at any loan
agreement or other instrument or other document evidencing or securing or
executed in connection with any of the Obligations, or (c) Failure of any
Obligor to deposit additional Collateral upon demand; or (d) Failure of any
Obligor to perform any other agreement hereunder; or (e) Abandonment of any of
the Collateral by any Obligor; or (f) Occurrence of any default with respect to
borrowed indebtedness other than the Obligations now or hereafter owing by any
party liable for any part of the Obligations; or (g) Misrepresentations by any
Obligor of any material fact in any statement to Bank at any time; or
(h) Occurrence of any of the following events with respect to any Obligor: death
(if an individual) or dissolution (if a partnership or corporation); death or
suspension of the usual business activities of any partner of an Obligor that is
a partnership or of any principal officer of an Obligor which is a corporation;
imminent or threatened insolvency; insolvency; assignment for the benefit of
creditors; calling a meeting of any creditors, appointment of a committee of any
creditors or liquidating agent; offering to or receiving from any creditors a
composition, refinancing,

<PAGE>

restructuring or extension of any Obligor's indebtedness; making or sending
notice of an intended bulk transfer; suspension of payment; the whole or partial
suspension or liquidation of any usual business of any Obligor, failing, after
demand by Bank, to furnish any financial information or to permit inspection of
books or records of account; commencement of any proceeding, suit or action (at
law or in equity, or under any provisions of any federal or state bankruptcy law
or amendments thereto) for an order of relief, adjudication as a bankrupt, or
for reorganization, composition, extension, arrangement, wage earner's plan,
receivership, liquidation or dissolution by or against any Obligor; entry of a
judgment or issuance of a warrant of attachment, or an injunction against any
Obligor or against any property of any Obligor, issuance of an execution against
property of any Obligor or commencement against any Obligor of any proceeding
for enforcement of a money judgment; or (i) in the event Bank in good faith
deems itself insecure for any reason.

     If an Event of Default shall occur, Bank shall be entitled to exercise,
successively or concurrently, all of the rights, powers and remedies vested in
it by this Limited Security Agreement, and now or hereafter existing at law or
in equity or by statute (including without limitation the Uniform Commercial
Code of the state of Bank's principal place of business) or otherwise for the
protection and enforcement of its rights with respect to the Collateral; and
each Obligor hereby irrevocably appoints and constitutes Bank as such Obligor's
attorney-in-fact, coupled with an interest and with full power of substitution,
to exercise any or all the following rights, powers and remedies:

     (a)   to receive all cash dividends and other amounts payable with respect
           to the Collateral otherwise payable to such Obligor prior to the
           occurrence of an Event at Default;

     (b)   to endorse and transfer all or any part of the Collateral into Bank's
           name or the name of its nominee and to cause new certificates to be
           issued in the name of Bank or of such nominee.

     (c)   provided that Bank has given one (1) calendar day's notice in writing
           of its intent to exercise rights under this subparagraph to vote all
           or any part of the Collateral, whether or not transferred into the
           name of Bank, and to give all proxies, consents, waivers and
           ratifications with respect to the Collateral and otherwise act with
           respect thereto as though it were the outright owner thereof; and

     (d)   at any time or from time to time to sell, assign and deliver, or
           grant options to purchase, all or any part of the Collateral, or any
           interest therein, at any public or private sale, to the fullest
           extent permitted by law, without demand of performance, advertisement
           or notice of intention to sell or of the time or place of sale or
           adjournment thereof or other notice of any kind (all of which are
           hereby waived by each Obligor to the fullest extent permitted by
           law), for cash, on credit or for other property, for immediate or
           future delivery without any assumption of credit risk, and for such
           price or prices and on such terms as Bank in its absolute discretion
           may determine. Bank may, but shall not be obligated to, sell all or
           any portion of the Collateral through any broker now or hereafter
           affiliated with it, and such Obligor hereby consents to Bank's
           selling the same through any such broker.

     Each Obligor hereby waives and releases to the fullest extent permitted by
law any right or equity of redemption with respect to the Collateral, whether
before or after sale hereunder, and all rights, if any, of marshalling the
Collateral and any other security for the Obligations or otherwise. At any such
sale, unless prohibited by applicable law, Bank may bid for and purchase all or
any part of the Collateral free from any such right or equity of redemption.

     To the extent notice of any sale or other disposition of the Collateral is
required by law to be given to an Obligor, the requirement of reasonable notice
shall be met by sending such notice, by certified mail, postage prepaid to such
Obligor at the address of such Obligor as it appears on this Limited Security
Agreement or, if none appears, to any address of such Obligor in Bank's files,
at least 5 days before the time of sale or disposition. Each Obligor shall
remain liable to Bank for the payment of any deficiency with interest as
hereinabove provided. However, Bank shall not be obligated to resort to any
Collateral but, at its election, may proceed to enforce any of the Obligations
in default against each Obligor without waiver of any rights as to the
Collateral or any other security or as to any Obligor against whom Bank shall
not elect then to proceed.

<PAGE>

     All moneys collected upon any disposition of the Collateral hereunder,
together with all other moneys received from any source on account of all or any
portion of the Obligations, shall be first applied to the payment of all costs
and expenses incurred by Bank in connection with the disposition of the
Collateral or the collection of the Obligations (including, without limitation,
all attorneys' fees as herein provided) and then to the Obligations in such
order and manner as Bank shall consider appropriate.

     If at any time Bank shall determine to sell all or any of the Collateral
and the Collateral (or the part thereof to be sold) shall not be effectively
registered under the Securities Act at 1933, as then in effect, or any similar
federal or state law relating of the registration and sales of securities
("Securities Laws"), Bank may, in its sole discretion, sell the Collateral or
part thereof, through a private sale in such manner and under such circumstances
as Bank may deem necessary or advisable in order that such Collateral may be
lawfully sold without being registered under the Securities Laws. Without
limiting the generality of the foregoing, Bank, in its sole discretion, (a) may
proceed to sell the Collateral or any part thereof through a non-public sale,
whether or not a registration statement concerning such Collateral shall have
been filed under the Securities Laws, (b) may approach and negotiate with as few
as one possible purchaser, and (c) may restrict such sale to a purchaser who
will represent and agree that such purchaser is purchasing for its own account,
for investment, and not with a view to the distribution or sale of such
Collateral and who satisfies such other conditions as at that lime may be
required in order for Bank to conduct a lawful non-public sale of such
Collateral. In the event of any such non-public sale, Bank shall be authorized
to sell all or any part of the Collateral at a price that Bank, in its sole
discretion, deems reasonable under the circumstances, notwithstanding the
possibility that a higher price might be realized if the sale were deferred
until after registration under the Securities Laws.

     The obligations of each Obligor under this Agreement shall be absolute and
unconditional and shall remain in full force and effect without regard to, and
shall not be released, suspended, discharged, terminated or otherwise affected
by, any circumstance or occurrence whatsoever, including, without limitation (a)
any renewal, extension, amendment or modification of or addition or supplement
to this Limited Security Agreement or any note evidencing, or other instrument
or document executed in connection with, or as security for, the Obligations or
any part thereof (herein collectively called "Loan Documents"), or any
assignment or transfer thereof; (b) any waiver, consent, extension, indulgence
or other action or inaction under or with respect to the Loan Documents or any
exercise or non-exercise of any right, remedy, power or privilege under or with
respect to any Loan Document or this Limited Security Agreement; (c) any
furnishing of any additional security to Bank or any acceptance thereof or any
release of any security or guaranty by Bank; (d) any limitation on or release or
discharge of any party's liability or obligations under any Loan Document or the
validity of unenforceability, in whole or in part of any Loan Document or any
term thereof; or (e) any bankruptcy. insolvency, reorganization, composition,
adjustment, dissolution, liquidation or other like proceeding relating to any
Obligor, or any action taken with respect to this Limited Security Agreement by
any trustee or receiver or by any court, in any such proceeding; whether or not
any Obligor shall have notice or knowledge of any of the foregoing.

     Each Obligor: (a) as to all or any portion of the Obligations, consents to
Bank's releasing, agreeing not to sue, suspending the right to enforce any Loan
Document against, or otherwise discharging or compromising any of the
Obligations of, any Obligor or any other person against whom any Obligor has a
right of recourse and (b) consents to Bank's releasing, exchanging or otherwise
dealing in any manner with all or any portion of the Collateral and any other
collateral, lien or right of set-off which may now or hereafter secure the
Obligations, or any portion et the Obligations, even though such release,
exchange or other dealing may in any manner and to any extent impair any such
Collateral, other collateral, lien or right of set-off. And Bank may take any or
all of the actions mentioned in clauses (a) or (b) of this paragraph without
notice to or further reservations of rights against any Obligor and all without
in any way affecting or releasing the liability of any Obligor.

     Each Obligor hereby severally (a) waives demand, presentment, protest,
notice of protest, notice of dishonor, suit against any party and all other
requirements necessary to hold such Obligor; (b) agrees to pay all costs of
collecting or securing or attempting to collect or secure the Obligations or
defending any unsuccessful claim asserted against Bank in connection with this
Limited Security Agreement or the Obligations or any portion thereof, including
reasonable attorneys' fees, provided, however, that if this Limited Security
Agreement is subject to Section 5-19-10 of the Code of Alabama 1975, attorney's
fees shall be limited to 15% of the unpaid balance of the Obligations after
default and referral to an attorney that is not a salaried employee of Bank, and
no attorneys' fees shall be payable if the original amount financed does not
exceed $300.00.

<PAGE>

     Each Obligor will, from time to time, on request by Bank, execute such
other or further transfers, instruments, proxies, consents or powers of attorney
as may be requested by Bank with respect to the Collateral.

     No failure or delay on the part of Bank in exercising any right, power or
privilege under this Limited Security Agreement shall operate as a waiver
thereof, nor shall a single or partial exercise thereof preclude any other or
further exercise or the exercise of any other right, power or privilege. No
modification, amendment, or waiver of any provision of this Limited Security
Agreement shall be effective unless in writing and signed by a duly authorized
officer of Bank, and then the same shall be effective only in the specific
instance and for the purpose for which given. No notice to or demand on any
Obligor in any case shall entitle any Obligor to any other or further notice or
demand in the same, similar or other circumstances.

     Any provision of this Limited Security Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof or affecting the validity or enforceability of such
provision in any other jurisdiction.

     All rights, powers. and remedies of Bank under this Limited Security
Agreement and now or hereafter existing at law, in equity or otherwise shall be
cumulative and may be exercised successively or concurrently.

     This Limited Security Agreement shall be construed in accordance with and
governed by the laws of the State of Alabama. This Limited Security Agreement
shall remain in full force and effect until a written instrument of termination
shall he executed and delivered by a duly authorized officer of Bank. Each
Obligor agrees that this Limited Security Agreement shall secure all Obligations
(as defined herein), whether now existing or hereafter incurred, contracted for
or arising. Payment in full of the Obligations outstanding at any one time shall
not, in the absence of the execution and delivery of a written instrument of
termination as aforesaid, terminate this Limited Security Agreement.

     Each Obligor has subscribed his name hereto without condition that anyone
else should sign or become bound hereon and without any other condition whatever
being made. The provisions hereof are binding upon the heirs, executors,
administrators, assigns and successors of each Obligor, and shall inure to the
benefit of the Bank, its successors and assigns. All liabilities of the parties
named as "Obligor" hereunder are joint and several.

     This agreement is executed under the seal of each Obligor.

CAUTION - IT IS IMPORTANT THAT YOU THOROUGHLY READ THIS CONTRACT BEFORE YOU
SIGN IT.

     Dated: May 31, 2000                Surgical Laser Technologies, Inc.

                                        By: /s/ Michael R. Stewart (seal)
                                        Its: President & CEO

     Witnesses as to
     all signatures:

                                        By: /s/ Davis Woodward (seal)
     /s/ Craig K. Carra                 Its: VP, Finance, CFO

                                        Address: 147 Keystone Drive
                                        Montgomeryville, PA 18936

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