Document:

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                                                                 Exhibit 10.4.41

                         TENNESSEE REVOLVING CREDIT NOTE

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                                                                  COLUMBUS, OHIO
$100,000                                                      DECEMBER  31, 1999
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         FOR VALUE RECEIVED, the undersigned, NEOPROBE CORPORATION, a Delaware
corporation, whose address is 425 Metro Place North, Suite 400, Dublin, Ohio
43017 (the "Borrower"), hereby promises to pay to the order of THE PROVIDENT
BANK, an Ohio banking corporation (the "Bank"), on or before February 29, 2000
(the "Maturity Date"), the principal sum of One Hundred Thousand Dollars
($100,000) or, if such principal is less, the aggregate unpaid principal amount
of all loans made by the Bank to the Borrower pursuant to this Revolving Credit
Note, together with interest, all as provided in Section 1 of this Note.

         SECTION 1. THE DEBT. Subject to and on the terms and conditions set
forth in this Note, the Bank shall provide loans and the Borrower shall repay
the indebtedness incurred hereunder as follows:

                  1.1. REVOLVING CREDIT LOANS. During the period from and
including the date hereof to but excluding the Maturity Date, the Bank agrees,
on the terms and conditions set forth in this Agreement, to make one or more
loans ("Revolving Credit Loans") to the Borrower in an aggregate principal
amount at any one time outstanding up to but not exceeding the greater of (a)
the Revolving Credit Commitment or (b) the Borrowing Base (as such terms are
defined in Section 7.15 hereof). Subject to the terms of this Note, during such
period, the Borrower may borrow, repay and reborrow the amount of the Revolving
Credit Commitment by means of Revolving Credit Loans. The date, amount, and
interest rate of each Revolving Credit Loan made by the Bank to the Borrower,
and each payment made on account of the principal thereof, shall be recorded by
the Bank on its books and records, such recordation to constitute conclusive
evidence in the absence of manifest error of the amount of such Loans and
payments.

                  1.2. BORROWING PROCEDURE. The Borrower shall give the Bank
notice not later than 10:00 a.m on the date of each Revolving Loan, specifying:

                           1.2.1. The date of such Loan, which shall be a
Banking Day; and

                           1.2.2. The aggregate amount of the Revolving Credit
Loan.

The proceeds of the initial Revolving Credit Loan (in the amount of $353,000)
shall be distributed to the Borrower to finance payments made by the Borrower to
vendors involved in the development of products described in Section 1.6 below.
The Borrower shall forward to the Bank proof of payment to such vendors pursuant
to Section 1.7 below. The proceeds of each subsequent Revolving Credit Loan
shall be forwarded by the Bank directly to specific vendors to pay amounts the
Borrower currently owes to such vendors. The vendors who receive proceeds of
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such Revolving Credit Loans shall be those vendors who are necessary to support
the development of products described in Section 1.6 below.

                  1.3. PRINCIPAL. The Borrower shall pay the principal balance
of this Note to the Bank on or before the Maturity Date.

                  1.4. INTEREST.

                           1.4.1. The Debt shall bear interest on the
outstanding principal amount, for each day at a per annum rate equal to the rate
of interest for such day publicly announced by the Bank as its prime rate (the
"Prime Rate") plus one hundred (100) basis points. The Prime Rate is not
intended to be the lowest rate of interest charged by the Bank in connection
with extensions of credit for borrowers. Interest on the Debt shall be paid by
the Borrower (a) on the last day of each calendar month, commencing December 31,
1999, (b) on the Maturity Date and (c) thereafter on demand.

                           1.4.2. All interest under this Note shall be computed
on the basis of the actual days elapsed in a year of 360 days.

                  1.5. PREPAYMENTS; PAYMENTS.

                           1.5.1. The Borrower shall have the right to make
prepayments at any time of the principal amount of the Debt, in whole or in
part, without notice. Each prepayment shall be without premium or penalty.
Subject to the terms and provisions of this Note, the Bank will reloan to the
Borrower such amounts as have been paid and applied on the principal balance of
a Revolving Credit Loan prepaid pursuant to this Section.

                           1.5.2. The Borrower shall make all payments of
principal and interest under this Note to the Bank at its main office (or such
other location as the Bank may direct) in immediately available funds. If any
payment of principal or interest on this Note shall become due on a day other
than a Banking Day, such payment shall be due and payable upon the next
succeeding Banking Day and such extension of time shall in such case be included
in computing interest in connection with such payment. A "Banking Day" is any
day on which the main office of the Bank is open for business.

                  1.6. PURPOSE. The purpose of the Revolving Credit Loans
represented by this Note is to support the development between the Borrower and
Ethicon Endo Surgery, Inc. ("EES") by providing working capital for the
manufacture of units outlined in an EES purchase order for $1,868,000.

                  1.7. CONDITION PRECEDENT. As a condition precedent to making
the first Revolving Credit Loan hereunder, the Borrower must:

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                           1.7.1. have all liens on the personal property of the
Borrower subject to the Security Agreement described in Section 4 below either
released or subordinated to the satisfaction of the Bank; and

                           1.7.2. execute and deliver the Amended and Restated
Revolving Credit Note dated as of the date hereof and issued to the Bank in the
original principal amount of $400,000 (the "Ohio Note" and, collectively with
this Note, the "Notes").

         SECTION 2. REPRESENTATIONS AND WARRANTIES. The execution of this Note
by the Borrower shall be deemed to constitute the Borrower's representation and
warranty to the Bank that, at the time of execution and at the time of
disbursement of each Revolving Credit Loan hereunder: (a) the Notes and the
Security Agreement (as defined in Section 4 hereof) are the legal, valid and
binding obligations of the Borrower, enforceable against the Borrower in
accordance with their terms; (b) the Security Agreement creates a valid lien of
the Bank in the collateral thereof, prior to the claims of any other person or
entity; (c) the execution and delivery of the Notes and the Security Agreement
by the Borrower do not and will not conflict with, violate or constitute a
default under or breach of any court or administrative order, decree or ruling,
or any law, statute, ordinance or regulation, or any agreement, indenture,
mortgage, deed of trust, guaranty, lease, note or other obligation or instrument
binding upon the Borrower or any of its respective properties or assets; and (d)
neither this Note nor any other statement, assignment, agreement, instrument or
certificate of the Borrower made or delivered pursuant to or in connection with
this Note contains any untrue statement of a material fact or omits to state a
material fact required to be stated therein, in light of the circumstances under
which they were made, or necessary to make the statements therein not
misleading.

         SECTION 3. COVENANTS.

                  3.1. COMPLIANCE WITH LAWS. On and after the date hereof and
until the Debt shall have been repaid and discharged in full or otherwise
satisfied, the Borrower shall comply with all applicable laws.

                  3.2. FURNISHING OF FINANCIAL STATEMENTS AND OTHER INFORMATION.

                           3.2.1. The Borrower shall furnish to the Bank as soon
as practicable after the end of each of the month in each fiscal year of the
Borrower, and in any event within 30 days thereafter, complete internally
prepared financial statements (the "Financial Statements") of the Borrower,
including without limitation (a) a balance sheet of the Borrower as at the end
of such month, (b) a statement of operations of the Borrower for such month and
(c) a statement of cash flows of the Borrower for such month. All such Financial
Statements shall be in reasonable detail and certified by the Treasurer or
Controller of the Borrower as having been prepared in accordance with GAAP
(except as to footnotes and subject to year-end adjustments), as being true,
accurate, complete and correct in all material respects, and as presenting
fairly the financial position of the Borrower as at the respective date of such
balance sheet and the results of operations of the Borrower for the respective
period covered.

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                           3.2.2. The Borrower shall furnish to the Bank as soon
as practicable after the end of each fiscal year of the Borrower, and in any
event within 90 days thereafter, complete audited Financial Statements of the
Borrower including without limitation (a) a balance sheet of each as at the end
of such fiscal year, (b) a statement of operations of each for such fiscal year,
(c) a statement of shareholders' equity of each for such fiscal year, and (d) a
statement of cash flows of each for such fiscal year, together with comparative
figures for the previous fiscal year, all in reasonable detail. The balance
sheets and statements shall be audited in form and substance satisfactory to the
Bank by independent certified public accountants of recognized standing
acceptable to the Bank.

                           5.2.3. The Borrower will furnish to the Bank as soon
as practicable after the end of each calendar month, and in any event within 15
days thereafter, an Accounts aging report in a format acceptable to the Bank and
a Borrowing Base Certificate for such month. During the occurrence of an Event
of Default, the Borrower shall be required to deliver aging schedules, trial
balances, test verifications of Accounts and other reports reasonably requested
by the Bank.

         SECTION 4. SECURITY FOR DEBT. This Note is secured by and entitled to
(a) an Amended and Restated Security Agreement dated as of the date hereof, made
by the Borrower for the benefit of the Bank (the "Security Agreement") and (b)
UCC-1 financing statements filed with the Ohio Secretary of State and the
Franklin county Recorder, each dated as of the date hereof, as any of the above
may be further amended or modified from time to time. Nothing contained in this
Note, the Security Agreement, or in any other document or instrument made in
connection herewith, shall be deemed or construed to create a partnership,
tenancy-in-common, joint tenancy, joint venture or co-ownership by or between
the Bank and the Borrower. The Bank shall not be in any way responsible for the
debts, losses, obligations or duties of the Borrower.

         SECTION 5. EVENTS OF DEFAULT. The following are Events of Default:

                  5.1. The Borrower fails to make a payment of interest on this
Note when and as due.

                  5.2. The Borrower fails to pay the principal of this Note when
and as due.

                  5.3. The Borrower fails to make a payment of any fee, expense
or other amount of money (not including the principal of or interest on this
Note) owing to the Bank under this Note when and as due and such failure is not
remedied within 10 Banking Days after the due date.

                  5.4. Any representation or warranty made by the Borrower in
this Note or any information contained in the Security Agreement, any
certificate, report, financial statement or other document delivered to the Bank
by the Borrower contains any untrue statement of a material fact or omits to
state a material fact required by this Note or law to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.

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                  5.5. The Borrower fails to perform any of its obligations
under or fails to comply with any covenant contained in this Note and such
failure continues unremedied for a period of ten Banking Days.

                  5.6. Any governmental body or officer or creditor of the
Borrower seizes, takes possession of or collects (whether or not the Borrower
resists or acquiesces in such seizure, taking or collection) any property of the
Borrower by any means, including, without limitation, execution, levy,
sequestration, attachment, garnishment, replevin or self-help, unless such
seizure, taking or collection is vacated or the property is discharged within 30
days after the occurrence thereof.

                  5.7. One or more final judgments are entered against the
Borrower for the payment of money aggregating in excess of $50,000 and any one
of such judgments has been outstanding for more than 30 days from the date of
its entry and has not been discharged in full or stayed pending appeal.

                  5.8. The Borrower:

                           5.8.1. makes an assignment for the benefit of
creditors;

                           5.8.2. enters into any composition, compromise or
arrangement with its creditors;

                           5.8.3. generally does not pay its debts as such debts
become due; or

                           5.8.4. conceals, removes, or permits to be concealed
or removed, any part of its or his property, with intent to hinder, delay or
defraud its or his creditors or any of them, or makes or suffers a transfer of
any of its property, fraudulent under the provisions of any bankruptcy,
fraudulent conveyance or similar law, or makes or suffers a transfer of its
property to or for the benefit of a creditor at a time when other creditors
similarly situated have not been paid.

                  5.9. If:

                           5.9.1. a trustee, receiver, agent or custodian is
appointed or authorized to take charge of any property of the Borrower for the
purpose of enforcing a lien against such property or for the purpose of
administering such property for the benefit of the Borrower's creditors; or

                           5.9.2. an order (a) for relief against the Borrower
is granted under Title 11 of the United States Code or any similar law, (b)
appointing a receiver, trustee, agent or custodian of the Borrower or any
property of the Borrower or (c) providing for a composition, compromise or
arrangement with the creditors of the Borrower is entered by any court or
governmental body or officer; or

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                           5.9.3. the Borrower files any pleading seeking
(whether by formal action or by the admission of the material allegations of a
pleading or otherwise) any such appointment or order; or

                           5.9.4. (a) any action or proceeding seeking any such
appointment or order is commenced without the authority or consent of the
Borrower and (b)(i) such action or proceeding is not dismissed within 90 days
after its commencement or (ii) the Borrower does not diligently contest such
action or proceeding.

                  5.10. An Event of Default occurs under the Security Agreement
or the Ohio Note.

                  5.11. Except for the events that exist on the date this Note
is executed as disclosed on Schedule 5.11 hereto, the Borrower fails to pay when
and as due the principal of or any interest on any Indebtedness (as defined
below), other than as evidenced by this Note or the Security Documents (assuming
that all required notices have been properly given and all corresponding grace
periods, if any, have elapsed without cure by the Borrower) or any other event
exists which, under the terms of any agreement or instrument other than the Note
or the Security Documents, relates to any Indebtedness becoming, or becoming
capable at such time of being declared, due and payable before it would
otherwise have been due and payable. "Indebtedness" means, for the Borrower (a)
all indebtedness or other obligations of the Borrower for borrowed money or for
the deferred purchase price of property or services (except for unsecured trade
payables incurred in the ordinary course of business on normal and reasonable
terms), (b) all indebtedness or other obligations of any other person for
borrowed money or for the deferred purchase price of property or services, the
payment or collection of which the Borrower has guaranteed (except by reason of
endorsement for deposit or collection in the ordinary course of business) or in
respect of which the Borrower is liable, contingently or otherwise, including,
without limitation, liable by way of agreement to purchase, to provide funds for
payment, to supply funds to or otherwise to invest in such other person, or
otherwise to assure a creditor against loss, (c) all indebtedness or other
obligations of any other person for borrowed money or for the deferred purchase
price of property or services secured by (or for which the holder of such
indebtedness has an existing right, contingent or otherwise, to be secured by)
any lien upon or in property (including, without limitation, accounts and
contract rights) owned by the Borrower whether or not the Borrower has assumed
or become liable for the payment of such indebtedness or other obligations, (d)
all direct or contingent obligations of the Borrower in respect of letters of
credit and (e) all lease obligations which have been or should be, in accordance
with generally accepted accounting principles, capitalized on the books of the
Borrower as lessee.

         SECTION 6. DEFAULT REMEDIES.

                  6.1. ACCELERATION. If an Event of Default exists, the
outstanding unpaid principal balance of this Note, together with all interest
accrued hereon is immediately due and payable, without presentment, demand,
protest or notice of any kind, all of which are hereby waived.

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                  6.2. SET-OFF. Any and all moneys now or at any time hereafter
owing to the Borrower from the Bank, and all other funds on deposit in one or
more checking accounts with the Bank for the benefit of the Borrower, are hereby
pledged for the security of this and all other indebtedness from the Borrower to
the Bank or any legal holder hereof, and may, upon any demand for payment, be
paid and applied thereon whether such indebtedness be then due or to become due,
all without notice to or demand on the Borrower or any other person, all such
notices and demands being hereby expressly waived. If an Event of Default
exists, the Bank shall have the right, in addition to all other rights and
remedies available to it, to set-off against the principal of and interest on
this Note and any fees, expenses or other amounts owed to the Bank under this
Note (a) all amounts owing to the Borrower by the Bank, whether or not then due
and payable, and (b) all other funds or property of the Borrower (i) in a
deposit account (general or special) maintained with the Bank, or (ii) on
deposit with or otherwise held by or in the custody of the Bank for the
beneficial account of the Borrower, whether solely in the name of or for the
benefit of the Borrower or jointly in the name of or for the benefit of the
Borrower and any other person, all without notice to or demand on the Borrower
or any other person, all such notices and demands being hereby expressly waived.
The Bank will notify the Borrower of any such set-off promptly after its
occurrence, but the failure to give such notice shall not affect the validity of
the set-off. The Borrower hereby confirms the Bank's right of banker's set-off
(also known as banker's lien) as it applies to the Borrower as set forth above,
and nothing in this Note shall be deemed a waiver or prohibition of such right
of banker's set-off.

                  6.3. REMEDIES CUMULATIVE. The Bank may exercise the remedies
provided in the Pledge Agreement upon the occurrence of an Event of Default. No
right or remedy conferred upon the Bank by this Note or legally available to the
Bank if an Event of Default exists is intended to be exclusive of any other
right or remedy, and each such right or remedy is cumulative and in addition to
every other such right or remedy.

                  6.4. FORCE MAJEURE. The existence of an Event of Default is
not affected by the reason for its occurrence, even if the Event of Default was
not caused by a voluntary act of the Borrower or was caused by a natural
disaster or force majeure.

         SECTION 7. MISCELLANEOUS.

                  7.1. MODIFICATIONS AND WAIVERS. No modification or waiver of
any term or provision contained in this Note and no consent to any departure by
the Borrower therefrom shall in any event be effective unless the same is in
writing and signed by the waiving party. Such waiver or consent shall be
effective only in the specific instance and for the purpose for which it is
given.

                  7.2. NOTICES. Except where specific provisions of this Note
provide for some other form of notice or require receipt as a condition of
notice, any consent, waiver, notice, demand or other instrument required or
permitted to be given under this Note shall be deemed to have been properly
received when in writing and delivered in person or sent by certified or
registered United States mail, return receipt requested, postage prepaid,
addressed, if to the Borrower: 425 Metro Place North, Suite 300, Dublin, Ohio
43017, Attention: Brent Larson;

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and if to the Bank: 10 West Broad Street, Mezzanine Level, Columbus, Ohio 43287,
Attention: Michael D. Davis. Either party may change its address for notices by
notice in the manner set forth above.

                  7.3. PARTIAL INVALIDITY. If any term or provision of this Note
or the application thereof to any person, firm or corporation or any
circumstance, shall be invalid or unenforceable, the remainder of this Note, or
the application of such term or provision to any person, firm or corporation or
any circumstances, other than those as to which it is held invalid, shall both
be unaffected thereby and each term or provision of this Note shall be valid and
be enforced to the fullest extent permitted by law.

                  7.4. NO IMPLIED RIGHTS OR WAIVERS. 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. Neither any
failure nor any delay on the part of the Bank in exercising any right, power or
privilege hereunder shall operate as a waiver thereof, nor shall a single or
partial exercise thereof preclude any other or further exercise of the same or
the exercise of any other right, power or privilege. The Borrower hereby waives
presentment, demand, notice, protest and all other demands and notices in
connection with the delivery, acceptance, performance, default or enforcement of
this Note.

                  7.5. SUCCESSORS AND ASSIGNS. This Note shall be binding upon
and inure to the benefit of the respective heirs, successors and assigns of the
Bank and the Borrower; provided that the Borrower shall have no right to assign
or transfer its rights under this Note voluntarily or by operation of law
without first obtaining the written consent of the Bank, and any attempted
assignment or transfer in the absence of such consent shall be void and of no
effect.

                  7.6. EXPENSES. All fees, costs and expenses, including
reasonable fees and expenses of outside legal counsel, incurred by the Bank in
connection with the preparation and enforcement of this Note or any other
instruments, documents, or agreements to be delivered pursuant hereto or in
connection herewith, shall be paid by the Borrower to the Bank on demand.

                  7.7. SURVIVAL OF PROVISIONS. All covenants, agreements,
representations, warranties and statements made in this Note or in any
certificate, statement, or other instrument given pursuant to this Note shall
survive the execution and delivery to the Bank of this Note and the making of
the Debt and shall continue in full force and effect so long as any obligation
of the Borrower under this Note is outstanding and unpaid.

                  7.8. CAPTIONS. The captions and section numbers appearing in
this Note are inserted only as a matter of convenience; they do not define,
limit, construe or describe the scope or intent of the provisions of this Note.

                  7.9. GOVERNING LAW. This Note shall be governed and construed
by the provisions hereof and in accordance with the laws of the State of Ohio
applicable to instruments to be performed in the State of Ohio.

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                  7.10. CONSENT. The Borrower hereby irrevocably and
unconditionally consents to submit to the exclusive jurisdiction of the courts
of the State of Ohio and of the United States of America located in the City of
Columbus, Ohio for any actions, suits or proceedings arising out of or relating
to this Note and the transactions contemplated hereby (and the Borrower agrees
not to commence any action, suit or proceeding relating thereto except in such
courts), and further agrees that service of any process, summons, notice or
document by U.S. certified or registered mail, return receipt requested, to the
address set forth in Section 7.2 shall be effective service of process for any
action, suit or proceeding brought against the Borrower in any such court. The
Borrower hereby irrevocably and unconditionally waives any objection to the
laying of venue of any action, suit or proceeding arising out of this Note, or
the transactions contemplated hereby, in the courts of the State of Ohio or the
United States of America located in the City of Columbus, Ohio, and hereby
further irrevocably and unconditionally waives and agrees not to plead or claim
in any such court that any such action, suit or proceeding brought in any such
court has been brought in an inconvenient forum.

                  7.11. JOINT PREPARATION. This Note is to be deemed to have
been prepared jointly by the Borrower and the Bank, and any uncertainty or
ambiguity existing herein shall not be interpreted against either party, but
shall be interpreted according to the rules for the interpretation of arm's
length agreements.

                  7.12. THIRD PARTIES. Nothing herein expressed or implied is
intended or shall be construed to confer upon or give any person other than the
parties hereto and their successors or assigns, any rights or remedies under or
by reason of this Note.

                  7.13. CONFESSION OF JUDGMENT. The Borrower hereby authorizes
any attorney at law to appear for the Borrower, in an action on this Note, at
any time after the same become due, as herein provided, in any court of record
in or of the State of Ohio, or elsewhere, to waive the issuing and service of
process against the Borrower and to confess judgment in favor of the holder of
the this Note or the party entitled to the benefits hereof against the Borrower
for the amount that may be due, with interest at the rate herein mentioned and
costs of suit, and to waive and release all errors in said proceedings and
judgment, and all petitions in error, and right of appeal from the judgment
rendered.

                  7.14. WAIVER OF JURY TRIAL. THE BANK AND THE BORROWER HEREBY
VOLUNTARILY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY
PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR
OTHERWISE, BETWEEN THE BANK AND THE BORROWER ARISING OUT OF, IN CONNECTION WITH,
RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THE BORROWER
AND THE BANK IN CONNECTION WITH THIS NOTE, THE SECURITY DOCUMENTS, OR ANY OTHER
AGREEMENT OR DOCUMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THEREWITH
OR THE TRANSACTIONS RELATED HERETO OR THERETO. THIS PROVISION IS A MATERIAL
INDUCEMENT TO THE BANK TO ENTER INTO THE FINANCING TRANSACTIONS WITH THE
BORROWER. IT SHALL NOT IN ANY WAY AFFECT, WAIVE, LIMIT, AMEND OR MODIFY THE
BANK'S

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ABILITY TO PURSUE ITS REMEDIES INCLUDING, BUT NOT LIMITED TO, ANY CONFESSION OF
JUDGMENT OR COGNOVIT PROVISION CONTAINED IN THIS NOTE, THE SECURITY DOCUMENTS OR
ANY OTHER DOCUMENT RELATED HERETO OR THERETO.

                  7.15. DEFINITIONS. As used in this Note, the following terms
shall have the meanings set forth below. Additional defined terms appear
elsewhere in this Note:

                  "Account" means and includes all accounts (whether or not
earned by performance), contract rights, chattel paper, instruments, documents,
general intangibles (including, without limitation, tax refunds and tax refund
claims) and all other forms of obligations owing to the Borrower, whether
secured or unsecured, whether now existing or hereafter created, and whether or
not specifically assigned to the Bank under the Security Agreement, all
guaranties and other security therefor, all merchandise returned to or
repossessed by Borrower, and all rights of stoppage in transit and all other
rights and remedies of an unpaid vendor, lienor or secured party.

                  "Borrowing Base" means the Net Value of Eligible Accounts.

                  "Borrowing Base Certificate" means a certificate, in the form
required by the Bank, signed by a duly authorized officer of the Borrower, that
computes the Borrowing Base, together with any memo of returns and credits,
remittance report, schedule of Accounts and such other supporting documents and
materials which the Bank, in its sole discretion, may require to be delivered
with such certificate.

                  "Customer" means any Person who is obligated as an Account
debtor or other obligor on, under, or in connection with any Account.

                  "Defaulted Account" means an Account that a Customer has not
satisfied in full on or before the 91st day after the date an invoice is issued.

                  "Eligible Account" means each Account of the Borrower which,
at the time of determination, meets all the following qualifications: (a) the
Borrower has lawful and absolute title to such Account, subject only to the Lien
of the Bank given by the Security Agreement; such Lien constitutes a perfected
Lien in the Account prior to the rights of any other Person and such Account is
not subject to any other Lien whatsoever; (b) the Borrower has the full
unqualified right to grant a Lien in such Account to the Bank as security and
collateral for the Obligations; (c) the Account is evidenced by an invoice
issued to the proper Customer and is not evidenced by any instrument or chattel
paper; (d) the Account arose from the sale of goods or services by the Borrower
in the ordinary course of business, which goods or services have been shipped or
delivered to the Customer under such Account; and such sale was an absolute sale
and not on consignment, approval or a sale-and-return basis; (e) no notice of
the bankruptcy, receivership, reorganization or insolvency of the Customer has
been received by the Borrower; (f) the Account is a valid, legally enforceable
obligation of the Customer, and is not subject to any dispute, offset,
counterclaim, or other defense on the part of such Customer; (g) it is not a
Defaulted

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Account; (h) the terms of the Account require payment no more than 90 days from
the date an invoice is issued; (i) the Customer on the Account is not (1) the
United States of America or any foreign government, or any department, agency or
instrumentality thereof (unless the Borrower and the Bank shall have fully
complied with the Assignment of Claims Act of 1940, as amended, or any other
applicable law governing government Accounts, with respect to such Account), (2)
the Borrower, or any affiliate of the Borrower, (3) located outside the United
States or Canada, unless the sale is secured by a letter of credit on which the
Bank is the sole beneficiary and the form, substance and issuer of which are
acceptable to the Bank, or (4) indebted to the Borrower in an amount, which when
added to all other amounts then owed to the Borrower by any affiliate of such
Customer, exceeds 50% of the amount of all then outstanding Eligible Accounts
(other than EES); (j) the Borrower is not indebted to the Customer on the
Account (or any affiliate of such Customer) for any goods provided or services
rendered to the Borrower; (k) the Account is not owing by any Customer with 50%
or more of the value of its outstanding Accounts not qualifying as Eligible
Accounts; (l) the Account is an Account representing all or part of the sales
price of merchandise, insurance and service within the meaning of Section
3(c)(5) of the Investment Company Act of 1940, as amended; (m) a purchase of the
Account would constitute a "current transaction" within the meaning of Section
3(a)(3) of the Securities Act of 1933, as amended; (n) the Account is
denominated and payable only in United States dollars in the United States; and
(o) the Bank, acting in its sole discretion, has not notified the Borrower the
Account may not be considered as an Eligible Account.

                  "Lien" means any mortgage, deed of trust, lien, charge,
security interest (including, without limitation, a purchase money security
interest as such term is defined in Section 9-107 of the UCC) or encumbrance of
any kind upon, or pledge of, any property or asset, whether now owned or
hereafter acquired, and includes the acquisition of, or agreement to acquire,
any property or asset subject to any conditional sale agreement or other title
retention agreement, including a lease on terms tantamount thereto or on terms
otherwise substantially equivalent to a purchase.

                  "Net Value of Eligible Accounts" means 70% of the lower of the
book value or collectible value of Eligible Accounts as reflected in the
Borrower's books in accordance with GAAP, net of all credits, discounts and
allowances (including all unissued credits in the form of a competitive
allowance or otherwise).

                  "Obligations" means (a) the obligations of the Borrower to the
Bank under the Security Agreement and this Note, (b) all costs and expenses
incurred by the Bank in the collection or the enforcement of any such
obligations of the Borrower, or realization upon the Collateral, including,
without limitation, reasonable attorneys' fees and legal expenses, (c) all
future advances made by the Bank for the maintenance, protection or preservation
of the Collateral or any portion thereof, including, without limitation,
advances for storage, insurance premiums, transportation charges, and the like
and (d) all other obligations of the Borrower to the Bank, howsoever created,
arising, or evidenced, whether direct or indirect, absolute or contingent, or
now or hereafter existing or due or to become due.

                                       11
<PAGE>   12

                  "Person" means any individual, sole proprietorship,
partnership, joint venture, corporation, trust, unincorporated organization,
government (or any department, agency, instrumentality or political division
thereof) or any other entity.

                  "Revolving Credit Commitment" means the obligation of the Bank
to make Revolving Credit Loans to the Borrower hereunder and under the Ohio Note
up to an aggregate principal amount of $500,000. The principal amount
outstanding under the Ohio Note shall decrease the aggregate principal amount
available for the Revolving Credit Loans hereunder by a corresponding amount.

         This Note was executed in Columbus, Ohio as of the date first written
above.

--------------------------------------------------------------------------------
WARNING - BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT
TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU
WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT
FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR
RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT,
OR ANY OTHER CAUSE.
--------------------------------------------------------------------------------

                                      NEOPROBE CORPORATION

                                      By:  /s/ David C. Bupp
                                           -----------------
                                      Name: David C. Bupp
                                      Its: President and Chief Executive Officer

                                       12
<PAGE>   13

         SCHEDULE 5.11: PAST DUE INDEBTEDNESS AND POTENTIAL OBLIGATIONS

<TABLE>
<CAPTION>
                                                                                        Amount as
Counterparty                        Description                                         of August 31, 1999
------------                        -----------                                         ------------------

<S>                                 <C>                                                 <C>
OSU Research Foundation             past due RIGS-related trade payable                    $177,000 (1)
                                    under research and development
                                    agreement

DSM Biologics                       past due RIGS-related trade payable                    $277,717 (2)
                                    under manufacturing and supply
                                    agreement

Aries Master Fund and               potential obligation due to possible                 $3,600,000 (3)
Aries Domestic Fund LP              default under February 16, 1999
                                    Preferred Stock and Warrant Purchase
                                                                         Agreement

Various vendors of                  past due vendor payments primarily                     $892,612 (4)
Neoprobe (Israel) Ltd.              associated with construction of
                                    Neoprobe (Israel) Ltd.'s
                                    radiolabeling facility at Dimona, Israel
</TABLE>

Notes:

(1)      Neoprobe negotiated a settlement with this party for $120,000 payable
         over six months starting 8/31/99.
(2)      Neoprobe has negotiated a tentative settlement with this party for
         $170,000 payable over twelve months starting 9/30/99.
(3)      Amount is based on potential redemption amount of Preferred Stock
         should the Aries parties request redemption; however, Neoprobe has
         received no such request and is in discussions with Aries
         representatives to restructure this transaction

(4)      Neoprobe (Israel) Ltd. is in liquidation. Neoprobe Corporation does not
         anticipate paying these amounts at their full face value; however, the
         amounts have been reserved in the consolidated financial statements of
         Neoprobe Corporation should management decide to do so.

                                       13<PAGE>   1
                                                                 Exhibit 10.4.42

                     AMENDED AND RESTATED SECURITY AGREEMENT

         THIS AMENDED AND RESTATED SECURITY AGREEMENT (the "Agreement"), is made
on December 31, 1999, by and between NEOPROBE CORPORATION, a Delaware
corporation ("Debtor"), and THE PROVIDENT BANK, an Ohio banking corporation
("Secured Party").

                                    RECITALS:

         WHEREAS, Secured Party has made, and intends to make in the future,
loans to the Debtor from time to time (collectively, the "Revolving Credit
Loans") pursuant to a $400,000 Revolving Credit Note and a $100,000 Revolving
Credit Note, each dated as of the date hereof (the "Revolving Credit Notes");
and

         WHEREAS, Debtor will use the proceeds of the Revolving Credit Loans to
the manufacture of specific units pursuant to a purchase order received from
Ethicon Endo Surgery, Inc.; and

         WHEREAS, Secured Party agreed to make the Revolving Credit Loans on the
condition that Debtor would provide security for the Revolving Credit Loans; and

         WHEREAS, Debtor agrees to grant to and create in favor of Secured
Party, in the manner set forth in this Agreement, security interests in certain
property of Debtor as security for the performance and payment of the Secured
Obligations (as defined in Section 1 hereof).

         NOW THEREFORE, for and in consideration of the Revolving Credit Loans
to Debtor and the benefits Debtor receives from them, the representations,
warranties, and mutual covenants set forth in this Agreement, the parties
hereto, intending to be legally bound, hereby agree as follows:

         Section 1. DEFINED TERMS.

                  1.1. DEFINITIONS. Certain capitalized words and terms as used
in this Agreement shall have the meanings given to them in the Uniform
Commercial Code unless otherwise indicated herein or the context or use
indicates another or different meaning or intent. All defined terms shall be
equally applicable to both the singular and plural forms of any of the words and
terms herein defined. In addition, the following capitalized words shall have
the following meanings when used herein:

         "Accounts" has the meaning assigned to that term in the Uniform
Commercial Code.

         "Chattel Paper" has the meaning assigned to that term in the Uniform
Commercial Code.

<PAGE>   2

         "Event of Default" shall mean the failure of the Debtor to comply with
any of the terms of this Agreement or to repay the Revolving Credit Loans at the
times required by the Revolving Credit Notes.

         "GAAP" means generally accepted accounting principles, as from time to
time in effect, applied throughout any applicable period on a basis consistent
with the accounting principles reflected in Guarantor's financial statements.

         "General Intangibles" has the meaning assigned to that term in the
Uniform Commercial Code excluding all rights of Debtor in intellectual property,
goodwill, trademarks, trade names, service marks, copyrights, patents, and
licenses and in applications therefor.

         "Instruments" has the meaning assigned to that term in the Uniform
Commercial Code.

         "Inventory" has the meaning assigned to that term in the Uniform
Commercial Code.

         "Lease" means any lease or other agreement (however denominated)
providing for the use by one person of real or personal property owned by
another person (or the entering into such a lease or agreement).

         "Loan Documents" means this Agreement, the Revolving Credit Notes and
all other instruments or agreements required or contemplated hereby or thereby
or evidencing the Revolving Credit Loans.

         "Permitted Liens" are those liens set forth in Section 13 hereof.

         "Premises" has the meaning assigned that term in Section 2.3.1 hereof.

         "Rentals" means with respect to any Lease, for any period, the
aggregate of all amounts required to be paid by the lessee thereunder for such
period, whether or not designated in such Lease as rentals or otherwise.

         "Revolving Credit Loans" has the meaning assigned that term in the
first Recital hereof.

         "Revolving Credit Notes" has the meaning assigned that term in the
first Recital hereof.

         "Secured Obligations" means (a) all principal and interest due and
payable for the Revolving Credit Loans made under the Revolving Credit Notes and
(b) all costs and expenses incurred by Secured Party in the realization upon the
Collateral, including without limitation reasonable attorneys' fees and legal
expenses.

         "Uniform Commercial Code" means Chapters 1301 through 1309 of the Ohio
Revised Code as the same may be from time to time supplemented or amended
hereafter.

                                      -2-
<PAGE>   3

     Section 2. CREATION OF SECURITY INTERESTS. As security for the full and
timely discharge of the Secured Obligations in accordance with their respective
terms, Debtor agrees that Secured Party will have, and there is hereby granted
to and created in favor of Secured Party, a security interest under the Uniform
Commercial Code, and otherwise in accordance with applicable law, in and to the
following (hereinafter collectively referred to as the "Collateral"):

          2.1. All Accounts and General Intangibles now or hereafter owned by
Debtor, including, without limitation, (i) all moneys due and to become due
under any contractual obligation, (ii) any damages arising out of or for breach
or default in respect of any Account and (iii) all other amounts from time to
time paid or payable under or in connection with any such Account; but
specifically excluding all rights of Debtor in intellectual property, goodwill,
trademarks, trade names, service marks, copyrights, patents, and licenses and in
applications therefor.

               2.2. All Goods and Inventory now or hereafter owned by Debtor.

               2.3. All Instruments and Chattel Paper now or hereafter owned by
Debtor.

               2.4. To the extent not otherwise included, all other personal
property, tangible or intangible, of Debtor other than tools and dies used in
the production of Inventory.

               2.5. To the extent not otherwise included, all books and records
pertaining to the foregoing, and all Proceeds or products of any or all of the
foregoing.

     Section 3. RIGHTS AND REMEDIES OF A SECURED PARTY. In addition to all of
the rights and remedies given to Secured Party by this Agreement, Secured Party
shall have all of the rights and remedies of a secured party under the Uniform
Commercial Code.

     Section 4. PROVISIONS APPLICABLE TO THE COLLATERAL. The parties agree that
the following provisions shall be applicable to the Collateral and Debtor agrees
that during the term of this Agreement:

          4.1. BOOKS AND RECORDS; CHIEF EXECUTIVE OFFICES.

               4.1.1. Debtor shall keep accurate and complete books and records
concerning the Collateral in accordance with GAAP. For the purpose of
establishing the location and value of the Collateral, Debtor shall furnish to
Secured Party, at such times and in such form and substance as may be requested
by Secured Party, information adequate to identify the Collateral, including,
without limitation, the location, cost and fair market value of the Collateral.

                                      -3-
<PAGE>   4

               4.1.2. (a) Debtor represents and warrants that its chief
executive office is located at the address set forth below:

                               Neoprobe Corporation
                               425 Metro Place North, Suite 300
                               Dublin, Ohio  43017

                    (b) Debtor shall not move its chief executive office except
to such new location as it may establish in accordance with Section 4.1.5 below.

               4.1.3. (a) The only original books of account and records of
Debtor relating to the Collateral are, and will continue to be, kept at the
offices of Debtor set forth in Section 4.1.2 above.

                    (b) The location where such books of account and records are
kept shall not be changed by Debtor except in accordance with Section 4.1.5
below.

               4.1.4. Debtor represents and warrants that the location of all
the Collateral is accurately and completely set forth in Exhibit A hereto.

               4.1.5. Debtor shall not establish any different location for its
chief executive office or for the place where the original books of account and
records of Debtor relating to the Collateral are kept until (a) it shall have
given to Secured Party written notice, 10 days before doing so, of its intention
to establish such new location, clearly describing each such new location and
providing any other information in connection therewith that Secured Party may
reasonably request, and (b) with respect to each such new location, it shall
have taken such action, satisfactory to Secured Party (including without
limitation all action required by Section 5 of this Agreement), as may be
necessary to maintain the security interest of Secured Party in the Collateral
at all times fully perfected and in full force and effect.

               4.1.6. Debtor shall not hold its right, title or interest or
maintain its records relating to any Collateral or invoice any Account debtor
with respect to any Collateral in any name other than its own proper corporate
name.

          4.2. INSPECTION. Debtor shall permit any persons designated by Secured
Party, in order to permit Secured Party to assure itself of performance by
Debtor of the Secured Obligations or otherwise facilitate compliance with this
Agreement, to enter, examine, audit and inspect the Collateral and all
properties, corporate books and financial records pertaining to the Collateral
or to the operation, business, affairs and financial condition of Debtor, at any
reasonable time and from time to time, and shall permit such persons to copy (by
photocopy or otherwise) and make excerpts of such books and records.

          4.3. NOTICE OF ADVERSE CHANGE. Debtor shall immediately notify Secured
Party of any adverse change of which Debtor has knowledge which adversely
affects or may adversely affect its right, title, or interest in, or the value
of, the Collateral.

                                      -4-
<PAGE>   5

          4.4. SALE OF INVENTORY. Notwithstanding the security interest in the
Collateral granted hereunder, Debtor shall have the right to sell, lease or
otherwise dispose of its Inventory in the ordinary course of its business free
and clear of such security interest; but in such event, such security interest
shall continue in the proceeds of such sale, lease or other disposition.

          4.5. ACCOUNT VERIFICATION. Secured Party may at any time, cause Debtor
to verify with any Account debtor of Debtor as to the status of any Accounts
payable by such Account debtor. The Debtor shall direct the Account debtor to
furnish a written response to the request for verification to a post office box
at a post office located in Columbus, Ohio, which post office box shall be
controlled by Secured Party. Prior to the occurrence of an Event of Default
Secured Party shall make no request for verification directly with the Account
debtor. Debtor from time to time will execute and deliver such instruments and
take all such action as Secured Party may reasonably request in order to
effectuate the purposes of this Section 4.5.

          4.6. THE DEBTOR'S RIGHTS TO COLLECT ACCOUNTS. Notwithstanding any
security interest in Accounts of Debtor granted hereunder, Debtor shall have the
right to and shall endeavor to collect such Accounts at its own cost and
expense, until such time as Secured Party shall have notified Debtor pursuant to
Section 4.7 below that Secured Party has revoked Debtor's right to collect such
Accounts.

          4.7. COLLECTION OF ACCOUNTS BY THE SECURED PARTY. If an Event of
Default shall have occurred and be continuing, Secured Party shall have the
right at any time and without affecting the liability of Debtor to Secured Party
(a) to revoke any right of Debtor to collect its Accounts pursuant to Section
4.6 above by written notice to Debtor to such effect, (b) to take over and
direct collection of such Accounts of Debtor, (c) to give notice of the security
interest of Secured Party in such Accounts to any or all of the Account debtors
obligated to Debtor, (d) to direct such Account debtors to make payment of such
Accounts directly to Secured Party and (e) to take control of such Accounts of
Debtor and the proceeds thereof, and to take possession of all of Debtor's books
and records relating thereto, with full power and authority in the name of
Secured Party or of Debtor to enforce, collect, sue for, receive, and give
receipts for any and all such Accounts. If any Account becomes evidenced by or
if Debtor receives any promissory notes, trade acceptance, chattel paper or
other writing or instrument for the payment of money, Debtor will deliver each
such writing or instrument to Secured Party duly endorsed to the order of
Secured Party as additional Collateral under this Agreement.

     Section 5. PRESERVATION AND PROTECTION OF SECURITY INTERESTS. Debtor shall
faithfully preserve and protect Secured Party's security interest in the
Collateral and shall, at its own cost and expense, cause such security interest
to be perfected and continue perfected so long as the Secured Obligations or any
portion thereof are outstanding and unpaid, and for such purpose Debtor shall
from time to time at the request of Secured Party file or record, or cause to be
filed or recorded, such instruments, documents and notices, including without
limitation financing and continuation statements, as Secured Party may deem
necessary or advisable from time to time in order to preserve, perfect and
continue perfected said security interest prior to the rights of any secured
party or lien creditor. Debtor shall do all such other acts and things and shall
execute and deliver

                                      -5-
<PAGE>   6

all such other instruments and documents, including without limitation further
security agreements, pledges, endorsements, assignments and notices, as Secured
Party may deem necessary or advisable from time to time in order to perfect and
preserve the priority of said security interest as a perfected lien in the
Collateral prior to the rights of any secured party or lien creditor. Secured
Party, and its officers, employees and authorized agents, or any of them, are
hereby irrevocably appointed the attorneys-in-fact of Debtor to do all acts and
things which Secured Party may deem necessary or advisable to preserve, perfect
and continue perfected Secured Party's security interest in the Collateral,
including without limitation the signing of financing, continuation or other
similar statements and notices on behalf of Debtor.

     Section 6. APPLICATION OF MONEYS. Except as otherwise provided in this
Agreement, if an Event of Default shall have occurred, all net proceeds which
Secured Party shall receive upon realization of the lien and security interest
granted under this Agreement may be applied by or at the direction of Secured
Party, after deducting all reasonable costs and expenses of every kind incurred
therein or incidental to the care, safekeeping or otherwise of any and all of
the Collateral or in any way relating to the rights of Secured Party hereunder,
including reasonable attorneys' fees and legal expenses, to the payment in whole
or in part of the Secured Obligations, in such order as Secured Party may elect.
Any surplus remaining after the payment and satisfaction of all of the Secured
Obligations shall be applied to or on the order of Debtor, its successors or
assigns, or to the person or persons who may be lawfully entitled to receive the
same, or as any court of competent jurisdiction may direct.

     Section 7. REPRESENTATIONS AND WARRANTIES. Debtor hereby represents and
warrants to Secured Party as follows:

          7.1. TITLE TO PROPERTY. Debtor has legal title to all the Collateral,
subject to no liens, other than Permitted Liens. No financing or continuation
statement which names Debtor as debtor has been filed under the Uniform
Commercial Code other than pursuant to the Permitted Liens and Debtor has not
agreed or consented to cause or to permit in the future (upon the happening of a
contingency or otherwise) any of its property, whether now owned or hereafter
acquired, to be subject to any lien, except the Permitted Liens.

          7.2. NO EVENT OF DEFAULT. There does not exist any condition or
circumstance which constitutes, or with the lapse of time or the giving of
notice or both would constitute, an Event of Default.

          7.3. INSURANCE. All of the properties and operations of Debtor of a
character usually insured by persons of established reputation engaged in the
same or a similar business similarly situated are adequately insured by
financially sound and reputable insurers, against loss or damage of the kinds
and in the amounts customarily insured against by such persons; and Debtor
carries with such insurers in customary amounts, such other insurance, including
public and product liability insurance, as is usually carried by persons of
established reputation engaged in the same business as Debtor or a similar
business similarly situated.

                                      -6-
<PAGE>   7

          7.4. PERFECTION OF SECURITY INTERESTS. As of the date of this
Agreement, Debtor has taken or caused to be taken all actions necessary in order
to establish Secured Party's security interests in the Collateral as valid and
perfected liens, prior to all other liens.

          7.5. SUBSIDIARIES. Debtor has no subsidiaries (other than Neoprobe
Europe AB and Neoprobe Israel AB, both of which are currently being liquidated
by Debtor) and has no loans, advances or capital contributions to any person
presently outstanding.

     Section 8. AFFIRMATIVE COVENANTS. On and after the date of this Agreement,
and for so long as any Secured Obligation is outstanding:

          8.1. PRESERVATION OF CORPORATE EXISTENCE. Debtor shall preserve and
maintain its corporate existence, rights, franchises and privileges in the
jurisdiction of its incorporation and will qualify and remain qualified as a
foreign corporation in each jurisdiction in which such qualification is
necessary or desirable in view of its business and operations or for the
ownership of its properties.

          8.2. MAINTENANCE OF PROPERTIES. Debtor shall maintain and preserve in
good working order and condition, ordinary wear and tear excepted, all of its
properties which are necessary or useful in the proper conduct of its business,
and will from time to time make all necessary and proper repairs, renewals,
replacements, additions and improvements to said properties, subject to Sections
2.2 and 2.3 of this Agreement.

          8.3. KEEPING OF RECORDS AND BOOKS OF ACCOUNT. Debtor shall keep
adequate records and books of account in which complete entries will be made in
accordance with GAAP, reflecting all financial transactions of Debtor relating
to the Collateral.

          8.4. NOTICE OF DEFAULT. If Debtor has knowledge that any Event of
Default occurs, Debtor shall give prompt notice in writing of such happening to
Secured Party.

          8.5. PERFORMANCE OF CONTRACTS, ETC. Debtor shall perform according to
and shall comply with those contractual obligations of Debtor, non-performance
of which would adversely affect the business of Debtor or would impair the
ability of Debtor to perform this Agreement.

          8.6. ADDITIONAL INFORMATION. Debtor shall furnish to Secured Party
promptly after Secured Party's request therefor, such other information
respecting the business, properties or condition of operations, financial or
otherwise, of Debtor as may be requested by Secured Party.

          8.7. INSURANCE. Debtor shall at all times:

               8.7.1. Maintain or cause to be maintained insurance upon its
property with responsible and reputable insurers of such character and in such
amounts as are usually maintained by persons engaged in a like business.

                                      -7-
<PAGE>   8

               8.7.2. Furnish to Secured Party a statement of insurance coverage
of Debtor in form and detail satisfactory to Secured Party.

               8.7.3. Require each policy of insurance to contain loss payable
provisions in favor of and satisfactory to Secured Party and a provision
requiring at least 30 days' prior written notice to Secured Party in the event
of any cancellation or contemplated cancellation of such insurance. To the
extent reasonably obtainable without additional cost to Debtor, all such
policies will further contain agreements by the insurers that any loss will be
payable to Secured Party notwithstanding any acts or negligence by Debtor or its
subsidiaries which might otherwise result in forfeiture of said insurance. If
Debtor fails to maintain in full force and effect insurance covering the
Collateral as may be required by this Section 8.7, or fails to pay the premiums
thereon when due, Secured Party may do so for the account of Debtor and add the
cost thereof to the Secured Obligations.

               8.7.4. Secured Party shall not be under any duty to ascertain the
existence or adequacy of insurance coverage. Debtor hereby assigns and sets over
unto Secured Party all moneys which may become payable on account of such
insurance covering the Collateral including without limitation any return of
unearned premiums which may be due upon cancellation of any such insurance, and
directs the insurers to pay Secured Party any amount so due. Secured Party, its
officers, employees and authorized agents, are hereby irrevocably appointed the
attorneys-in-fact of Debtor to endorse any draft or check which may be payable
to Debtor in order to collect the proceeds of such insurance or any return of
unearned premiums. Any balance of insurance proceeds remaining in the possession
of Secured Party after payment in full of the Secured Obligations shall be paid
to Debtor or Debtor's order as Debtor shall instruct Secured Party.

          8.8. RISK OF LOSS. As of the execution of this Agreement, Debtor shall
assume all risk of loss of, damage to, or destruction of the Collateral to the
extent that Debtor now or hereafter has or acquires any right, title and
interest in the Collateral.

          8.9. MAINTENANCE OF COLLATERAL.

               8.9.1. Debtor shall (a) pay and discharge all taxes, assessments,
fees, and other governmental charges or levies imposed upon it as well as all
lawful claims of materialmen, mechanics, carriers, warehousemen, landlords and
other similar persons for labor, materials, supplies and rentals which, if
unpaid, might by law become a lien on the Collateral or any part thereof and (b)
perform according to and maintain in force all leases which are Collateral;
PROVIDED, HOWEVER, that Debtor shall not be required to make any payment
pursuant to this Section 8.9 if (x) the amount, applicability, or validity
thereof is being contested currently in good faith by appropriate proceedings,
(y) Debtor shall have set aside on its books, in accordance with GAAP applied on
a consistent basis, adequate reserves or provisions with respect thereto, and
(z) the title of Debtor to, and its right to use, any of its properties is not
materially and adversely affected thereby.

                                      -8-
<PAGE>   9

               8.9.2. If Debtor fails to make any payments it is required to
make under this Section 8.9, Secured Party may do so for the account of Debtor
and may add the amount of such payments to the Secured Obligations.

          8.10. USE OF COLLATERAL. The Collateral will be used exclusively in
the business operations of Debtor.

          8.11. ANNUAL CERTIFICATE. Debtor shall furnish to Secured Party as
soon as practicable after the end of each fiscal year of Debtor, and in any
event within 90 days thereafter, a certificate by the chief executive officer or
the president of Debtor in form and substance satisfactory to Secured Party,
addressed to Secured Party and stating that based upon the law in effect on the
date of such certificate, no filing, registration or recording of any financing
statement, amendments thereto, continuation statements or instruments of a
similar character relating to the Collateral is required by law or will be
required by law during the 12 calendar months commencing on the next following
anniversary date in order to preserve and protect the priority of the security
interest of Secured Party as a perfected security interest in the Collateral
prior to the rights of any other secured party or lien creditor, or if such
filing, registration, recording, refiling, reregistration or rerecording is
necessary or will be necessary during the 12 calendar months commencing on the
next following anniversary date, setting forth the requirements in respect
thereto. Promptly after any filing, recording, refiling or rerecording of any
such financing statement or amendment thereto or continuation statement or
instrument, Debtor shall deliver to Secured Party another certificate by the
chief executive officer or president, stating that such filing, registration,
recording, refiling, reregistration or rerecording has been duly accomplished
and setting forth the particulars thereof.

     Section 9. NEGATIVE COVENANTS. On and after the date of this Agreement and
so long as Secured Obligations are outstanding, Debtor shall not:

          9.1. MERGERS, CONSOLIDATIONS, ETC. Merge with or into or consolidate
with any entity; PROVIDED, HOWEVER, that Debtor may merge or consolidate with
another entity so long as the obligations hereunder are assumed by the surviving
entity.

          9.2. NEGATIVE PLEDGE. Without the prior written consent of Secured
Party (a) sell, assign, or transfer any of its right, title and interest in the
Collateral except the sale of Debtor's Inventory in the ordinary course of
business, (b) grant or create or permit to exist any lien on or in any of the
Collateral except for Permitted Liens, (c) permit any levy or attachment to be
made against any of the Collateral, or (d) file any financing statement with
respect to any of the Collateral.

          9.3. CHANGE OF NAME. Change its corporate name.

          9.4. TRANSFER ASSETS. Transfer any assets to, make any advances to or
make any investments in Neoprobe Europe AB and Neoprobe Israel AB

                                      -9-
<PAGE>   10

     Section 10. CARE AND MAINTENANCE OF COLLATERAL BY THE SECURED PARTY.
Secured Party shall be deemed to have exercised reasonable care in the custody
and preservation of such of the Collateral as may be in Secured Party's
possession if Secured Party takes such action for that purpose as Debtor shall
request in writing, PROVIDED, HOWEVER that Secured Party shall not be required
to take any such requested action if in the judgment of Secured Party, such
action would impair Secured Party's security interest in such Collateral or its
rights in, or the value of, such Collateral, and PROVIDED, FURTHER, HOWEVER that
such written request is received by Secured Party in sufficient time to permit
Secured Party to take the requested action. Debtor acknowledges that failure of
Secured Party to comply with any such request shall not of itself be deemed a
failure to exercise reasonable care, and no failure of Secured Party to preserve
or protect any rights with respect to such Collateral against prior parties, or
to do any act with respect to the preservation of such Collateral not so
requested by Debtor, shall be deemed a failure to exercise reasonable care in
the custody or preservation of such Collateral. If all or any part of the
Collateral consists of any stock, bond or other security, Secured Party shall be
under no obligation to sell or otherwise dispose of such security, or to cause
such security to be sold or otherwise disposed of, by reason of any diminution
in the fair market value thereof, and Secured Party's failure to do so shall
under no circumstances be deemed a failure to exercise reasonable care in the
custody and preservation of the Collateral, anything in this Section 10 or in
any other section of this Agreement notwithstanding.

     Section 11. REMEDIES FOR EVENT OF DEFAULT.

          11.1. REMEDIES. If an Event of Default occurs, in addition to the
remedies set forth in the Agreement and the other Loan Documents:

               11.1.1. Secured Party may exercise such rights and remedies as
are provided by the Uniform Commercial Code, including without limitation the
right to enter any premises where any of the Collateral is located and take
possession of the same without demand or notice and without prior judicial
hearing or legal proceedings, which Debtor hereby expressly waives, and to sell
all or any portion of the Collateral at public or private sale, without prior
notice to Debtor except as otherwise required by law (and if notice is required
by law, after 10 days' prior written notice), at such place or places and at
such time or times and in such manner and upon such terms, whether for cash or
on credit, as Secured Party in its sole discretion may determine. Upon any such
sale of any of the Collateral, Secured Party may purchase all or any of the
Collateral being sold, free from any equity or right of redemption. Secured
Party shall apply the proceeds of any such sale to the Secured Obligations as
provided in Section 6 hereof. If such proceeds are insufficient to pay the
amounts owed by Debtor, Debtor shall be liable for any deficiency in the amount
so realized from the Collateral.

               11.1.2. Debtor shall, upon the demand of Secured Party, promptly
assemble the Collateral, or any part thereof and make it available to Secured
Party at a place to be designated by Secured Party which shall be reasonably
convenient to Secured Party and Debtor. The right of Secured Party under this
Section 11.1.2 to have the Collateral assembled and made available to it is of
the essence of this Agreement and Secured Party may, at its election, enforce
such right by an action for specific performance.

                                      -10-
<PAGE>   11

          11.2. NO REQUIREMENT TO MARSHAL COLLATERAL. Debtor, to the extent that
it has any right, title or interest in any of the Collateral, waives and
releases any right to require Secured Party to collect any of the Secured
Obligations from any portion of the Collateral under any theory of marshaling of
assets, or otherwise, and specifically authorizes Secured Party to apply any of
its Collateral against any of the Secured Obligations in any manner that Secured
Party may determine.

     Section 12. AMENDMENTS, WAIVERS. No amendment, modification or waiver to
this Agreement shall be binding unless in writing and signed by the party to be
charged.

     Section 13. PERMITTED LIENS. Liens arising from purchase money security
interests so long as (a) the lien is for no more than 90% of the purchase price
of the property and (b) such lien attaches only to the property acquired by
Debtor in connection therewith shall be deemed "Permitted Liens."

     Section 14. DEFEASANCE. Upon payment and performance in full of the Secured
Obligations, and all reasonable costs and expenses incurred by Secured Party in
the realization upon the Collateral, including without limitation, reasonable
attorneys' fees and legal expenses, this Agreement shall terminate and be of no
further force and effect, and in such event, Secured Party shall, at the expense
of Debtor, take all action necessary to terminate the security interests of
Secured Party in the Collateral. Until such time, however, this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

     Section 15. GOVERNING LAW. This Agreement is being executed and delivered
in the State of Ohio and, except to the extent that the laws of any other
jurisdiction are mandatorily applicable, shall in all respects be interpreted in
accordance with the laws of the State of Ohio applicable to contracts to be
performed in the State of Ohio.

     Section 16. COUNTERPARTS. This Agreement may be signed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument.

     Section 17. ENTIRE AGREEMENT. This Agreement sets forth the entire
understanding of the parties hereto and supersedes any and all prior agreements,
arrangements, and understandings relating to the subject matter hereof. No
representation, promise, inducement, or statement of intent has been made by any
party which is not embodied in this Agreement, and no party shall be bound by or
be liable for any alleged representation, promise, inducement or statement of
intention not embodied herein.

         Section 18. ENFORCEABILITY. Any provision of this Agreement which 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 provisions in any other jurisdiction.

                                      -11-
<PAGE>   12

     Section 19. CAPTIONS. Captions and section headings used in this Agreement
are for convenience only and shall not affect the construction of this
Agreement.

     Section 20. CONFESSION OF JUDGMENT. The Debtor hereby authorizes any
attorney at law to appear for it, in an action on this Security Agreement, as
herein provided, in any court of record in or of the State of Ohio, or
elsewhere, to waive the issuing and service of process against the Debtor and to
confess judgment in favor of the holder of the Security Agreement against the
Debtor for the amount that may be due, with interest at the rate therein
mentioned and costs of suit, and to waive and release all errors in said
proceedings and judgment, and all petitions in error, and right of appeal from
the judgment rendered.

     Section 21. WAIVER OF JURY TRIAL. THE SECURED PARTY AND THE DEBTOR HEREBY
VOLUNTARILY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY
PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR
OTHERWISE, BETWEEN THE SECURED PARTY AND THE GUARANTOR ARISING OUT OF, IN
CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED
BETWEEN THE DEBTOR AND THE SECURED PARTY IN CONNECTION WITH THE SECURITY
AGREEMENT OR ANY OTHER AGREEMENT OR DOCUMENT EXECUTED OR DELIVERED IN CONNECTION
HEREWITH OR THEREWITH OR THE TRANSACTIONS RELATED HERETO OR THERETO. THIS
PROVISION IS A MATERIAL INDUCEMENT TO THE SECURED PARTY TO ENTER INTO THE
FINANCING TRANSACTIONS WITH DEBTOR. IT SHALL NOT IN ANY WAY AFFECT, WAIVE,
LIMIT, AMEND OR MODIFY THE SECURED PARTY'S ABILITY TO PURSUE ITS REMEDIES
INCLUDING, BUT NOT LIMITED TO, ANY CONFESSION OF JUDGMENT OR COGNOVIT PROVISION
CONTAINED HEREIN OR IN ANY OTHER DOCUMENT RELATED HERETO.

                                      -12-
<PAGE>   13

         The parties hereto have caused this Agreement to be duly executed by
their respective duly authorized officers as of the day and year first above
written.

WARNING - BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT
TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU
WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT
FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR
RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT,
OR ANY OTHER CAUSE.

                              NEOPROBE CORPORATION, a Delaware corporation

                              By:  /s/ David C. Bupp
                                  ---------------------
                              Name: David C. Bupp
                              Its: President and Chief Executive Officer

                              THE PROVIDENT BANK, an Ohio banking corporation

                              By:  /s/ Michael D. Davis
                                   ----------------------
                              Name: Michael D. Davis
                              Its:  Vice President

                                      -13-
<PAGE>   14

                                    EXHIBIT A

                             COLLATERAL AND LOCATION

Collateral                                        Location
----------                                        --------

Inventory                                Neoprobe Corporation
                                         425 Metro Place North, Suite 300
                                         Dublin, Ohio  43017

                                         Plexus / EAC
                                         55 Jewelers Park Drive
                                         Neenah, WI  54956

Collateral                               Neoprobe Corporation
                                         425 Metro Place North, Suite 300
                                         Dublin, Ohio  43017

                                      -14-

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