EXHIBIT 10.27


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               ADDENDUM TO NOTE FOR BUSINESS AND COMMERCIAL LOANS
                                   LIBOR RATE


Addendum to Note for Business and Commercial Loans dated June 26, 2002, in the
principal amount of $3,000,000.00.

As used herein, "LIBOR Reserve Requirements" means the maximum reserves (whether
basic. supplemental. marginal, emergency, or otherwise) prescribed by the Board
of Governors of the Federal Reserve System (or any successor) with respect to
liabilities or assets consisting of or including "Eurocurrency liabilities" (as
defined in Regulation D of the Board of Governors of the Federal Reserve
System). If there is any change in LIBOR Reserve Requirements, then Borrower
shall, from time to time upon demand by Holder, pay to Holder such additional
amounts as Holder may deem necessary to compensate Holder for any increased
costs resulting from such change. Borrower agrees that Holder's determination of
such additional amounts and increased costs will be made in Holder's sole
discretion and shall be conclusive, if, because of the introduction of or any
change in, or because of any judicial, administrative, or other governmental
interpretation of any applicable law or regulation, there shall be any increase
in the cost to Holder of making, funding, maintaining, or allocating capital to
any amount outstanding under the Loan bearing interest at a rate based on the
LIBOR Rate, then Borrower shall, from time to time upon demand by Holder, pay to
Holder additional amounts sufficient to compensate Holder for such increased
costs.

If, because of the introduction of or any change in, or because of any judicial,
administrative, or other governmental interpretation of, any applicable law or
regulation, it becomes unlawful for Holder to make, fund, or maintain any
advance or balance at a rate based on the LIBOR Rate, then Holder's obligation
to make, fund, or maintain any such advance or balance shall terminate and any
such affected outstanding advance or balance shall bear interest at a rate equal
to the prime rate of the Bank in effect from time to time as designated by the
Bank (the `Prime Rate") plus 0%, with changes in such interest rate to take
effect as the Prime Rate changes. The Prime Rate is merely a reference rate and
is not necessarily the best or lowest rate offered by the Bank.



Signed for identification:




ATTEST:                                     SURGICAL LASER TECHNOLOGIES. INC.

By: /s/ Davis Woodward              (SEAL)  By:  /s/ Michael R. Stewart   (SEAL)
    ------------------                           ----------------------
    Davis Woodward                               Michael R. Stewart

Its:  Secretary                             Its: President and CEO


By: /s/ Davis Woodward              (SEAL)  By:  /s/ Davis Woodward       (SEAL)
    ------------------                           ------------------
     Davis Woodward                              Davis Woodward

Its:  Secretary                             Its: VP of Finance, CFO & Secretary

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