TERMINATION OF LEASE

     THIS TERMINATION OF LEASE ("Termination") is dated as of the 29th day of
June, 1999, but is intended to be effective as of the 30th day of June, 1999
(the "Termination Date"), by and between SLT PROPERTIES, INC. ("Landlord"), and
SURGICAL LASER TECHNOLOGIES, INC. ("Tenant").

                                   BACKGROUND

     A. Landlord and Tenant entered into that certain Lease Agreement dated
September 21, 1991 (the "Lease"), wherein Landlord leased to Tenant certain
premises located at 200 Cresson Boulevard, Oaks, Upper Providence Township,
Montgomery County, Pennsylvania (the "Leased Premises").

     B. Landlord and Tenant have agreed to terminate the Lease as of the
Termination Date pursuant to the terms and subject to the conditions hereinafter
set forth.

     NOW THEREFORE, in consideration of the premises, and other good and
valuable consideration, the receipt and legal sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

        1. Termination of Lease. The Lease is and shall be terminated as of the
Termination Date. Lessor hereby terminates all of its right, title and interest
in and to the Lease, and Lessee hereby terminates all of its right, title and
interest in and to the Lease and the leasehold estate in the Leased Premises
created thereby, and the parties acknowledge, confirm and agree that they shall
have no further right or obligation to each other under the Lease.

        2. Binding. This Termination shall be binding upon and shall inure to
the benefit of the parties hereto and their respective successors and assigns.

        3. Governing Law. This Termination shall be governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania.

     IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties
have executed this Termination the day and year first above written.


                                     SLT PROPERTIES, INC.


                                     By: /s/ Davis Woodward
                                         --------------------------------
                                     Name: Davis Woodward
                                           ------------------------------
                                     Title: Vice President
                                            -----------------------------



                                     SURGICAL LASER TECHNOLOGIES, INC.


                                     By: /s/ Davis Woodward
                                         --------------------------------
                                     Name: Davis Woodward
                                           ------------------------------
                                     Title: Vice President
                                            -----------------------------