Document:

Name                                       Dated           Signatory
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Canadian Advantage Limited Partnership *   June. , 1998
Dominion Capital Fund Ltd.                 June. , 1998
Sovereign Partners LP.                     June. , 1998

*    This document has been filed.
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                                                                   Exhibit 10.27

                          REGISTRATION RIGHTS AGREEMENT

      THIS REGISTRATION RIGHTS AGREEMENT,  dated as of June ______, 1998, ("this
Agreement"),  is made by and  between  SWISSRAY  INTERNATIONAL,  INC. a New York
corporation (the  "Company"),  and the person named on the signature page hereto
(the "Initial Investor").

                              W I T N E S S E T H:

      WHEREAS,  upon the terms and subject to the conditions of the Subscription
Agreement,  dated as of June ___,  1998,  between the initial  investor  and the
Company (the "Subscription Agreement"), the Company has agreed to issue and sell
to  the  Initial  Investor  6%  Convertible   Debentures  of  the  Company  (the
"Debentures"),  which will be convertible into shares of the common stock,  $.01
par value (the "Common Stock"),  of the Company (the  "Conversion  Shares") upon
the terms and subject to the conditions of such Debentures; and

      WHEREAS,  to induce the  Initial  Investor  to  execute  and  deliver  the
Subscription  Agreement,  the Company has agreed to provide certain registration
rights  under  the  Securities  Act of  1933,  as  amended,  and the  rules  and
regulations  thereunder,  or any similar  successor statute  (collectively,  the
"Securities  Act"),  and applicable  state  securities  laws with respect to the
Conversion Shares;

      NOW, THEREFORE,  in consideration of the premises and the mutual covenants
contained  herein and other good and  valuable  consideration,  the  receipt and
sufficiency  of which are  hereby  acknowledged,  the  Company  and the  Initial
Investor hereby agrees as follows:

      1. Definitions.

      (a) As used  in  this  Agreement,  the  following  terms  shall  have  the
following meaning:

      (i) "Closing Date" means the date funds are received by the Company or its
designated attorney pursuant to the Subscription Agreement.

      (ii) "Investor"  means the Initial Investor and any transferee or assignee
who agrees to become bound by the  provisions  of this  Agreement in  accordance
with Section 9 hereof.

      (iii) "Register," "Registered," and "Registration" refer to a registration
effected by  preparing  and filing a  Registration  Statement or  Statements  in
compliance with the Securities Act and pursuant to Rule 415 under the Securities
Act or any  successor  rule  providing  for offering  securities on a continuous
basis ("Rule 415"),  and the  declaration or ordering of  effectiveness  of such
Registration

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Statement by the United States Securities and Exchange Commission (the "SEC").

      (iv) "Registrable Securities" means the Conversion Shares.

      (v) "Registration Statement" means a registration statement of the Company
under the Securities Act.

      (b) As used  in this  Agreement,  the  term  Investor  includes  (i)  each
Investor (as defined  above) and (ii) each person who is a permitted  transferee
or  assignee  of the  Registrable  Securities  pursuant  to  Section  9 of  this
Agreement.

      (c) Capitalized  terms used herein and not otherwise  defined herein shall
have the respective meanings set forth in the Subscription Agreement.

      2. Registration.

      (a)  Mandatory  Registration.  The Company shall prepare and file with the
SEC,  no later  than  sixty  (60)  calendar  days  after  the  Closing  Date,  a
Registration  Statement  covering a sufficient  number of shares of Common Stock
for the Initial Investors into which the $2,000,000 of Debentures,  plus accrued
interest,  in  the  total  offering  would  be  convertible.  In the  event  the
Registration  Statement is not filed within sixty (60)  calendar  days after the
Closing  Date,  then in such event the Company  shall pay the Investor 2% of the
face amount of each Debenture for each 30 day period, or portion thereof,  after
60 days following the Closing Date that the Registration Statement is not filed.
The Investor is also granted additional  Piggy-back  registration  rights on any
other  Registration  Statement  filings made by the Company.  Such  Registration
Statement  shall state that,  in  accordance  with the  Securities  Act, it also
covers such  indeterminate  number of  additional  shares of Common Stock as may
become  issuable  to prevent  dilution  resulting  from Stock  splits,  or stock
dividends).  If at any time the number of shares of Common  Stock into which the
Debenture(s)  may be converted  exceeds the aggregate number of shares of Common
Stock then  registered,  the Company shall,  within ten (10) business days after
receipt of written notice from any Investor,  either (i) amend the  Registration
Statement  filed by the Company  pursuant  to the  preceding  sentence,  if such
Registration  Statement has not been declared effective by the SEC at that time,
to  register  all  shares of Common  Stock into  which the  Debenture(s)  may be
converted, or (ii) if such Registration Statement has been declared effective by
the SEC at that time, file with the SEC an additional  Registration Statement on
Form S-1 to register the shares of Common Stock into which the  Debenture may be
converted  that exceed the  aggregate  number of shares of Common Stock  already
registered.  The above damages shall  continue until the obligation is fulfilled
and shall be paid within 5 business  days after each 30 day  period,  or portion
thereof,  until the Registration  Statement is filed.  Failure of the Company to
make payment within said 5 business days shall be considered a default.

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      The  Company  acknowledges  that its  failure  to file with the SEC,  said
Registration Statement no later than sixty (60) days after the Closing Date will
cause the Initial Investor to suffer damages in an amount that will be difficult
to ascertain.  Accordingly,  the parties agree that it is appropriate to include
in this Agreement a provision for liquidated  damages.  The parties  acknowledge
and agree  that the  liquidated  damages  provision  set  forth in this  section
represents  the parties' good faith effort to qualify such damages and, as such,
agree that the form and amount of such  liquidated  damages are  reasonable  and
will not  constitute  a penalty.  The payment of  liquidated  damages  shall not
relieve the  Company  from its  obligations  to  register  the Common  Stock and
deliver  the  Common  Stock  pursuant  to  the  terms  of  this  Agreement,  the
Subscription Agreement and the Debenture.

      (b)  Underwritten  Offering.  If any offering  pursuant to a  Registration
Statement pursuant to Section 2(a) hereof involves an underwritten offering, the
Investors acting by majority in interest of the Registrable  Securities  subject
to such  underwritten  offering shall have the right to select one legal counsel
to represent their interests, and an investment banker or bankers and manager or
managers to  administer  the  offering,  which  investment  banker or bankers or
manager  or  managers  shall be  reasonably  satisfactory  to the  Company.  The
Investors  who  hold  the   Registrable   Securities  to  be  included  in  such
underwriting shall pay all underwriting discounts and commissions and other fees
and  expenses  of such  investment  banker or bankers and manager or managers so
selected in  accordance  with this  Section  2(b) (other than fees and  expenses
relating  to  registration  of  Registrable  Securities  under  federal or state
securities  laws, which are payable by the Company pursuant to Section 5 hereof)
with respect to their  Registrable  Securities and the fees and expenses of such
legal counsel so selected by the Investors.

      (c) Payment by the Company.  If the  Registration  Statement  covering the
Registrable  Securities  required to be flied by the Company pursuant to Section
2(a) hereof is not declared  effective by September ___, 1998,  then the Company
shall pay the  Initial  Investor  2% of the  purchase  price paid by the Initial
Investor for the Registrable  Securities pursuant to the Subscription  Agreement
for  every  thirty  day  period   following   September  ___,  1998,  until  the
Registration Statement is declared effective. Notwithstanding the foregoing, the
amounts  payable by the Company  pursuant to this provision shall not be payable
to the  extent  any delay in the  effectiveness  of the  Registration  Statement
occurs because of an act of, or a failure to act or to act timely by the Initial
Investor or its counsel.  The above damages shall  continue until the obligation
is fulfilled  and shall be paid within 5 business days after each 30 day period,
or portion  thereof,  until the  Registration  Statement is declared  effective.
Failure of the  Company to make  payment  within  said 5 business  days shall be
considered a default.

      The  Company  acknowledges  that  its  failure  to have  the  Registration
Statement  declared  effective by September  ___,  1998,  will cause the Initial
Investor to suffer  damages in an amount that will be  difficult  to  ascertain.
Accordingly, the

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parties agree that it is  appropriate  to include in this  Agreement a provision
for liquidated  damages.  The parties  acknowledge and agree that the liquidated
damages  provision set forth in this section  represents the parties' good faith
effort to quantify such damages and, as such,  agree that the form and amount of
such  liquidated  damages are reasonable and will not constitute a penalty.  The
payment of liquidated damages shall not relieve the Company from its obligations
to register the Common Stock and deliver the Common Stock  pursuant to the terms
of this Agreement, the Subscription Agreement and the Debenture.

      3. Obligation of the Company.  In connection with the  registration of the
Registrable Securities, the Company shall do each of the following:

      (a) Prepare promptly, and file with the SEC within thirty (30) days of the
Closing Date, a Form S-1  Registration  Statement  with respect to not less than
the number of  Registrable  Securities  provided  in Section  2(a),  above,  and
thereafter use its best efforts to cause each Registration Statement relating to
Registrable Securities to become effective the earlier of (i) five business days
after notice from the Securities and Exchange  Commission that the  Registration
Statement may be declared  effective,  or (b) ninety (90) days after the Closing
Date,  and keep the  Registration  Statement  effective  at all times  until the
earliest (the "Registration Period") of (i) the date that is two years after the
Closing  Date  (ii)  the  date  when the  Investors  may  sell  all  Registrable
Securities  under Rule 144 or (iii) the date the  Investors no longer own any of
the  Registrable   Securities,   which  Registration  Statement  (including  any
amendments or supplements thereto and prospectuses  contained therein) shall not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated  therein or necessary to make the statements  therein,  in
light of the circumstances in which they were made, not misleading;

      (b)   Prepare   and  file   with  the  SEC  such   amendments   (including
post-effective amendments) and supplements to the Registration Statement and the
prospectus  used  in  connection  with  the  Registration  Statement  as  may be
necessary  to  keep  the   Registration   effective  at  all  times  during  the
Registration  Period,  and,  during the  Registration  Period,  comply  with the
provisions  of  the  Securities  Act  with  respect  to the  disposition  of all
Registrable  Securities  of the Company  covered by the  Registration  Statement
until such time as all of such  Registrable  Securities have been disposed of in
accordance  with the intended  methods of  disposition  by the seller or sellers
thereof as set forth in the Registration Statement;

      (c) Furnish to each Investor whose Registrable  Securities are included in
the Registration  Statement and its legal counsel identified to the Company, (i)
promptly  after the same is prepared  and publicly  distributed,  filed with the
SEC, or received by the  Company,  one (1) copy of the  Registration  Statement,
each  preliminary  prospectus and  prospectus,  and each amendment or supplement
thereto, and (ii) such number of copies of a prospectus, including a preliminary
prospectus, and all amendments and supplements thereto and such other

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documents, as such Investor may reasonably request in order to facilitate the
disposition of the Registrable Securities owned by such Investor;

      (d) Use  reasonable  efforts to (i) register  and qualify the  Registrable
Securities covered by the Registration  Statement under such other securities or
blue sky laws of such  jurisdictions  as the  Investors  who hold a majority  in
interest of the Registrable  Securities being offered  reasonably request and in
which significant volumes of shares of Common Stock are traded, (ii) prepare and
file  in  those   jurisdictions   such  amendments   (including   post-effective
amendments) and supplements to such  registrations and  qualifications as may be
necessary  to  maintain  the  effectiveness  thereof  at all  times  during  the
Registration  Period,  (iii) take such  other  actions  as may be  necessary  to
maintain such  registrations and qualification in effect at all times during the
Registration  Period,  and (iv) take all other actions  reasonably  necessary or
advisable to qualify the Registrable  Securities for sale in such jurisdictions:
provided,  however,  that  the  Company  shall  not be  required  in  connection
therewith  or as a  condition  thereto  to (A)  qualify  to do  business  in any
jurisdiction  where it would not  otherwise  be required to qualify but for this
Section 3(d), (B) subject itself to general  taxation in any such  jurisdiction,
(C) file a general consent to service of process in any such  jurisdiction,  (D)
provide any  undertakings  that cause more than nominal expense or burden to the
Company or (E) make any change in its  articles of  incorporation  or by-laws or
any then  existing  contracts,  which in each case the Board of Directors of the
Company  determines to be contrary to the best  interests of the Company and its
stockholders;

      (e) As promptly as practicable after becoming aware of such event,  notify
each Investor of the happening of any event of which the Company has  knowledge,
as a result of which the prospectus included in the Registration  Statement,  as
then in effect,  includes any untrue  statement  of a material  fact or omits to
state a material  fact  required to be stated  therein or  necessary to make the
statements  therein,  in light of the circumstances  under which they were made,
not  misleading,  and uses its best efforts  promptly to prepare a supplement or
amendment to the Registration Statement or other appropriate filing with the SEC
to correct such untrue statement or omission,  and deliver a number of copies of
such  supplement or amendment to each  Investor as such Investor may  reasonably
request;

      (f) As promptly as practicable after becoming aware of such event,  notify
each Investor who holds  Registrable  Securities being sold (or, in the event of
an underwritten  offering, the managing underwriters) of the issuance by the SEC
of any  notice of  effectiveness  or any stop order or other  suspension  of the
effectiveness of the Registration Statement at the earliest possible time;

      (g) Use its commercially  reasonable efforts,  if eligible,  either to (i)
cause all the Registrable Securities covered by the Registration Statement to be
listed on a national securities exchange and on each additional national

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securities  exchange on which  securities  of the same class or series issued by
the  Company  are  then  listed,  if any,  if the  listing  of such  Registrable
Securities is then permitted  under the rules of such  exchange,  or (ii) secure
designation  of all  the  Registrable  Securities  covered  by the  Registration
Statement as a National  Association of Securities Dealers Automated  Quotations
System  (NASDAQ") "Small  Capitalization"  within the meaning of Rule 11Aa2-1 of
the SEC under the  Securities  Exchange Act of 1934,  as amended (the  "Exchange
Act"),  and the quotation of the Registrable  Securities on the NASDAQ Small Cap
Market; or if, despite the Company's commercially  reasonable efforts to satisfy
the preceding  clause (i) or (ii), the Company is  unsuccessful  in doing so, to
secure NASD  authorization and quotation for such Registrable  Securities on the
over-the-counter  bulletin  board and,  without  limiting the  generality of the
foregoing,  to  arrange  for at least two  market  makers to  register  with the
National  Association of Securities Dealers,  Inc. ("NASD") as such with respect
to such registrable securities;

      (h) Provide a transfer agent for the Registrable Securities not later than
the effective date of the Registration Statement;

      (i) Cooperate  with the Investors who hold  Registrable  Securities  being
offered to facilitate the timely  preparation and delivery of  certificates  for
the Registrable  Securities to be offered pursuant to the Registration Statement
and  enable  such  certificates  for the  Registrable  Securities  to be in such
denominations  or amounts as the case may be, as the  Investors  may  reasonably
request and registration in such names as the Investors may request; and, within
five (5) business days after a Registration Statement which includes Registrable
Securities is ordered effective by the SEC, the Company shall deliver, and shall
cause legal counsel  selected by the Company to deliver,  to the transfer  agent
for the Registrable  Securities (with copies to the Investors whose  Registrable
Securities  are included in such  Registration  Statement) a form of appropriate
Instruction and opinion of such counsel  acceptable for use for each conversion;
and

      (j) Take all other reasonable actions necessary to expedite and facilitate
distribution  to the  Investor  of the  Registrable  Securities  pursuant to the
Registration Statement.

      4.  Obligations of the Investors.  In connection with the  registration of
the Registrable Securities, the Investors shall have the following obligations;

      (a) It shall be a condition precedent to the obligations of the Company to
complete  the  registration  pursuant  to this  Agreement  with  respect  to the
Registrable  Securities of a particular Investor that such Investor shall timely
furnish to the  Company  such  information  regarding  itself,  the  Registrable
Securities held by it, and the intended method of disposition of the Registrable
Securities  held  by  it,  as  shall  be  reasonably   required  to  effect  the
registration of

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such  Registrable   Securities  and  shall  timely  execute  such  documents  in
connection  with such  registration  as the Company may reasonably  request.  At
least  five  (5)  days  prior  to  the  first  anticipated  filing  date  of the
Registration   Statement,   the  Company  shall  notify  each  investor  of  the
information  the  Company  requires  from each  such  Investor  (the  "Requested
Information") if such Investor elects to have any of such Investor's Registrable
Securities included in the Registration  Statement. If at least two (2) business
days  prior to the  filing  date the  Company  has not  received  the  Requested
Information from an Investor (a "Non-Responsive Investor"), then the Company may
file the Registration Statement without including Registrable Securities of such
Non-Responsive Investor;

      (b)  Each  Investor  by  such  Investor's  acceptance  of the  Registrable
Securities  agrees to cooperate with the Company as reasonably  requested by the
Company  in  connection  with the  preparation  and  filing of the  Registration
Statement hereunder, unless such Investor has notified the Company in writing of
such Investor's election to exclude all of such Investors Registrable Securities
from the Registration Statement; and

      (c) Each Investor agrees that, upon receipt of any notice from the Company
of the  happening  of any event of the kind  described  in Section 3(e) or 3(f),
above,  such Investor will  immediately  discontinue  disposition of Registrable
Securities  pursuant to the  Registration  Statement  covering such  Registrable
Securities  until such Investor's  receipt of the copies of the  supplemented or
amended  prospectus  contemplated by Section 3(e) or 3(f) and, if so directed by
the Company,  such investor  shall deliver to the Company (at the expense of the
Company) or destroy (and deliver to the Company a  certificate  of  destruction)
all  copies in such  Investor's  possession,  of the  prospectus  covering  such
Registrable Securities current at the time of receipt of such notice.

      5.  Expenses  of  Registration.   All  reasonable  expenses,   other  than
underwriting   discounts   and   commissions   incurred   in   connection   with
registrations,  filing or  qualifications  pursuant to Section 3, but including,
without  limitations,  all  registration,   listing,  and  qualifications  fees,
printers and  accounting  fees,  the fees and  disbursements  of counsel for the
Company, shall be borne by the Company.

      6. Indemnification.  In the event any Registrable  Securities are included
in a Registration Statement under this Agreement:

      (a) To the extent  permitted by law, the Company will  indemnify  and hold
harmless each Investor who holds such Registrable Securities,  the directors, if
any, of such Investor,  the officers, if any, of such Investor,  each person, if
any, who controls any Investor  within the meaning of the  Securities Act or the
Exchange  Act (each,  an  "Indemnified  Person"),  against any  losses,  claims,
damages,  liabilities  or expenses  (joint or several)  incurred  (collectively,
"Claims")

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to which any of them may become subject under the  Securities  Act, the Exchange
Act or  otherwise,  insofar as such Claims (or actions or  proceedings,  whether
commenced or threatened,  in respect thereof) arise out of or are based upon any
of the  following  statements,  omissions  or  violations  of  the  Registration
Statement or any post-effective  amendment thereof,  or any prospectus  included
therein: (i) any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement or any post-effective  amendment thereof
or any prospectus  included therein or the omission or alleged omission to state
therein a material fact  required to be stated  therein or necessary to make the
statements  therein not misleading,  (ii) any untrue statement or alleged untrue
statement of a material  fact  contained in any  preliminary  prospectus if used
prior to the effective date of such Registration  Statement, or contained in the
final prospectus (as amended or supplemented, if the Company files any amendment
thereof or supplement  thereto with the SEC) or the omission or alleged omission
to state  therein  any  material  fact  necessary  to make the  statements  made
therein,  in light of the circumstances  under which the statements therein were
made, not misleading or (iii) any violation or alleged  violation by the Company
of the Securities Act, the Exchange Act, any state securities law or any rule or
regulation  under the Securities  Act, the Exchange Act or any state  securities
law (the matters in the foregoing clauses (i) through (iii) being, collectively,
"Violations").  The Company  shall  reimburse  the  Investors,  promptly as such
expenses are incurred and are due and payable,  for any reasonable legal fees or
other reasonable  expenses incurred by them in connection with  investigating or
defending  any such Claim.  Notwithstanding  anything to the contrary  contained
herein, the  indemnification  agreement contained in this Section 6(a) shall not
(i) apply to a Claim  arising out of or based upon a Violation  which  occurs in
reliance upon and in  conformity  with  information  furnished in writing to the
Company  by or on  behalf  of  any  Indemnified  Person  expressly  for  use  in
connection  with  the  preparation  of the  Registration  Statement  or any such
amendment  thereof or supplement  thereto,  if such  prospectus  was timely made
available by the Company  pursuant to Section 3(b) hereof;  (ii) with respect to
any  preliminary  prospectus,  inure to the benefit of any such person from whom
the person  asserting any such Claim purchased the  Registrable  Securities that
are the  subject  thereof  (or to the  benefit  of any person  controlling  such
person) if the untrue  statement or omission of material  fact  contained in the
preliminary  prospectus  was  corrected  in the  prospectus,  as then amended or
supplemented,  if such  prospectus  was timely  made  available  by the  Company
pursuant to Section 3(b) hereof,  (iii) be available to the extent such Claim is
based on a failure  of the  Investor  to deliver  or cause to be  delivered  the
prospectus  made  available  by the  Company;  or (iv) apply to amounts  paid in
settlement of any Claim if such settlement is effected without the prior written
consent of the Company, which consent shall not be unreasonably  withheld.  Each
Investor  will  indemnify  the  Company,  its  officers,  directors  and  agents
(including  Counsel) against any claims arising out of or based upon a Violation
which occurs in reliance upon and in conformity  with  information  furnished in
writing to the Company,  by or on behalf of such Investor,  expressly for use in
connection with

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the preparation of the Registration  Statement,  subject to such limitations and
conditions as are applicable to the  Indemnification  provided by the Company to
this Section 6. Such indemnity shall remain in full force and effect  regardless
of any  investigation  made by or on behalf of the Indemnified  Person and shall
survive the transfer of the Registrable  Securities by the Investors pursuant to
Section 9.

      (b) Promptly after receipt by an Indemnified  Person or Indemnified  Party
under this Section 6 of notice of the commencement of any action  (including any
governmental  action),  such Indemnified Person or Indemnified Party shall, if a
Claim in respect thereof is to be made against any indemnifying party under this
Section  6,  deliver  to  the  Indemnifying   party  a  written  notice  of  the
commencement  thereof  and the  indemnifying  party  shall  have  the  right  to
participate in, and, to the extent the  indemnifying  party so desires,  jointly
with any other Indemnifying  party similarly  noticed,  to assume control of the
defense thereof with counsel mutually satisfactory to the indemnifying party and
the Indemnified  Person or the Indemnified  Party, as the case may be; provided,
however, that an Indemnified Person or Indemnified Party shall have the right to
retain its own counsel with the  reasonable  fees and expenses to be paid by the
indemnifying  party,  if, in the reasonable  opinion of counsel  retained by the
indemnifying party, the representation by such counsel of the Indemnified Person
or Indemnified  Party and the indemnifying  party would be inappropriate  due to
actual or  potential  differing  interests  between such  Indemnified  Person or
Indemnified  Party and any  other  party  represented  by such  counsel  in such
proceeding.  In such event,  the Company  shall pay for only one separate  legal
counsel for the Investors; such legal counsel shall be selected by the Investors
holding a majority  in interest of the  Registrable  Securities  included in the
Registration  Statement  to which the Claim  relates.  The  failure  to  deliver
written  notice  to the  indemnifying  party  within  a  reasonable  time of the
commencement of any such action shall not relieve such indemnifying party of any
liability to the Indemnified  Person or Indemnified  Party under this Section 6,
except to the extent that the indemnifying party is prejudiced in its ability to
defend such action. The indemnification required by this Section 6 shall be made
by  periodic   payments  of  the  amount   thereof  during  the  course  of  the
investigation or defense, as such expense, loss, damage or liability is incurred
and is due and payable.

      7.  Contribution.  To the extent any  indemnification  by an  indemnifying
party is prohibited or limited by law, the indemnifying party agrees to make the
maximum contribution with respect to any amounts for which it would otherwise be
liable  under  Section  6 to the  fullest  extent  permitted  by law;  provided,
however,  that (a) no contribution shall be made under  circumstances  where the
maker would not have been liable for  indemnification  under the fault standards
set  forth in  Section  6; (b) no  seller of  Registrable  Securities  guilty of
fraudulent  misrepresentation  (within  the  meaning  of  Section  11(f)  of the
Securities Act) shall be entitled to contribution from any seller of Registrable

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Securities  who was not  guilty of such  fraudulent  misrepresentation;  and (c)
contribution by any seller of Registrable  Securities shall be limited in amount
to the net amount of  proceeds  received  by such  seller  from the sale of such
Registrable Securities.

      8. Reports  under  Exchange  Act.  With a view to making  available to the
Investors the benefits of Rule 144  promulgated  under the Securities Act or any
other  similar  rule or  regulation  of the SEC that may at any time  permit the
Investors to sell  securities of the Company to the public without  registration
("Rule 144"), the Company agrees to use its reasonable best efforts to:

      (a)  make and keep  public  information  available,  as  those  terms  are
understood and defined in Rule 144;

      (b) file with the SEC in a timely  manner all reports and other  documents
required of the Company under the Securities Act and the Exchange Act; and

      (c) furnish to each  Investor so long as such  Investor  owns  Registrable
Securities,  promptly upon request,  (i) a written statement by the Company that
it has complied with the reporting  requirements of Rule 144, the Securities Act
and the Exchange Act, (ii) a copy of the most recent annual or quarterly  report
of the Company and such other  reports and documents so filed by the Company and
(iii)  such  other  information  as may be  reasonably  requested  to permit the
Investors to sell such securities pursuant to Rule 144 without registration.

      9. Assignment of the Registration  Rights.  The rights to have the Company
register   Registrable   Securities   pursuant  to  this   Agreement   shall  be
automatically  assigned by the Investors to any transferee of in excess of fifty
(50%) percent or more of the  Registrable  Securities  (or all or any portion of
any Debenture of the Company which is convertible into such securities) only if:
(a) the  Investor  agrees in writing with the  transferee  or assignee to assign
such rights,  and a copy of such  agreement is furnished to the Company within a
reasonable time after such  assignment,  (b) the Company is, within a reasonable
time after such transfer or assignment, furnished with written notice of (i) the
name and address of such  transferee  or assignee and (ii) the  securities  with
respect to which such registration rights are being transferred or assigned, (c)
immediately  following  such transfer or assignment  the further  disposition of
such securities by the transferee or assignee is restricted under the Securities
Act and  applicable  state  securities  laws,  and (d) at or before the time the
Company received the written notice  contemplated by clause (b) of this sentence
the transferee or assignee agrees in writing with the Company to be bound by all
of the  provisions  contained  herein.  In the  event of any  delay in filing or
effectiveness of the Registration Statement as a result of such assignment,  the
Company  shall not be liable for any damages  arising  from such  delay,  or the
payments set forth in Section 2(c) hereof.

                                       10

<PAGE>   11

      10. Amendment of Registration  Rights. Any provision of this Agreement may
be amended and the observance  thereof may be waived  (either  generally or in a
particular  instance and either  retroactively or prospectively),  only with the
written  consent of the Company and investors who hold a majority in interest of
the Registrable Securities.  Any amendment or waiver effected in accordance with
this Section 10 shall be binding upon each Investor and the Company.

      11. Miscellaneous.

      (a) A person or entity is deemed to be a holder of Registrable  Securities
whenever such person or entity owns of record such  Registrable  Securities.  if
the Company received conflicting instructions,  notices or elections from two or
more persons or entities with respect to the same  Registrable  Securities,  the
Company shall act upon the basis of  instructions,  notice or election  received
from the registered owner of such Registrable Securities.

      (b)  Notices  required  or  permitted  to be given  hereunder  shall be in
writing and shall be deemed to be sufficiently  given when personally  delivered
(by  hand,  by  courier,  by  telephone  line  facsimile  transmission,  receipt
confirmed,  or other means) or sent by certified mail, return receipt requested,
properly  addressed  and with proper  postage  pre-paid  (i) if to the  Company,
SWISSRAY  International,  Inc.,  200 East 32nd Street,  Suite 34B, New York, New
York 10016 with copy to Gary B. Wolff,  P.C., 747 Third Avenue,  25th Floor, New
York, NY 10017; (ii) if to the initial Investor,  at the address set forth under
its name in the Subscription  Agreement,  with a copy to its designated attorney
and (iii) if to any other Investor,  at such address as such Investor shall have
provided in writing to the Company,  or at such other address as each such party
furnishes by notice given in accordance  with this Section  11(b),  and shall be
effective,  when  personally  delivered,  upon  receipt  and,  when  so  sent by
certified  mail,  four (4) business  days after  deposit with the United  States
Postal Service.

      (c)  Failure  of any party to  exercise  any right or  remedy  under  this
Agreement or otherwise,  or delay by a party in exercising such right or remedy,
shall not operate as a waiver thereof.

      (d) This Agreement shall be governed by and interpreted in accordance with
the  laws  of the  State  of New  York.  Each  of the  parties  consents  to the
jurisdiction  of the  state  and  federal  courts  of the  State  of New York in
connection with any dispute  arising under this Agreement and hereby waives,  to
the maximum  extent  permitted by law, any  objection,  including  any objection
based on forum non  coveniens,  to the bringing of any such  proceeding  in such
jurisdictions.  A facsimile transmission of this signed Agreement shall be legal
and binding on all parties  hereto.  This Agreement may be signed in one or more
counterparts, each of which shall be deemed an original. The headings of this

                                       11

<PAGE>   12

Agreement are for convenience of reference and shall not form part of, or affect
the interpretation of, this Agreement.  If any provision of this Agreement shall
be  invalid  or   unenforceable   in  any   jurisdiction,   such  invalidity  or
unenforceability  shall  not  effect  the  validity  or  enforceability  of  the
remainder of this Agreement or the validity or  enforceability of this Agreement
in any other  jurisdiction.  This Agreement may be amended only by an instrument
in writing  signed by the party to be charged with  enforcement.  This Agreement
supersedes all prior agreements and understandings among the parties hereto with
respect to the subject matter hereof.

      (e) This  Agreement  constitutes  the entire  agreement  among the parties
hereto with respect to the subject  matter  hereof.  There are no  restrictions,
promises, warranties or undertakings,  other than those set forth or referred to
herein. This Agreement  supersedes all prior agreements and understandings among
the parties hereto with respect to the subject matter hereof.

      (f) Subject to the requirements of Section 9 hereof,  this Agreement shall
inure to the benefit of and be binding upon the  successors  and assigns of each
of the parties hereto.

      (g) All  pronouns  and any  variations  thereof  refer  to the  masculine,
feminine or neuter, singular or plural, as the context may require.

      (h) The headings in this  Agreement are for  convenience of reference only
and shall not limit or otherwise affect the meaning thereof.

      (i) This  Agreement may be executed in two or more  counterparts,  each of
which shall be deemed an original but all of which shall  constitute one and the
same agreement.  This Agreement,  once executed by a party,  may be delivered to
the other party hereto by telephone  line  facsimile  transmission  of a copy of
this Agreement bearing the signature of the party so delivering this Agreement.

                  (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)

                                       12

<PAGE>   13

      IN WITNESS  WHEREOF,  the parties  have caused this  Agreement  to be duly
executed by their  respective  officers  thereunto duly authorized as of the day
and year first above written.

                                        SWISSRAY INTERNATIONAL, INC.

                                       By:
                                           /S/Ruedi G. Laupper
                                            -----------------------------------
                                        Name:  Ruedi G. Laupper
                                        Title: Chairman and President

                                        ---------------------------------------
                                        (Name of Initial Investor)

                                       By:

                                            -----------------------------------
                                      Name:
                                     Title:

                                       13<TABLE>
<CAPTION>
Name                                       Dated           Amount         Maturity Date     Deb. No.
---------------------------------------    ------------    ----------     ---------------   ---------------
<S>                                        <C>             <C>            <C>
Canadian Advantage Limited Partnership *   June 15, 1998   $   200,000    June. 15, 2000    JUNE-1998-102
Dominion Capital Fund Ltd.                 June 15, 1998   $ 1,200,000    June. 15, 2000    JUNE-1998-101
Sovereign Partners LP.                     June 15, 1998   $   600,000    June. 15, 2000    JUNE-1998-103
</TABLE>

<PAGE>

                                  Exhibit 10.28

                                FORM OF DEBENTURE

THE SECURITIES  OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND ARE BEING OFFERED AND SOLD
IN RELIANCE ON EXEMPTIONS FROM THE  REGISTRATION  REQUIREMENTS OF SUCH LAWS. THE
SECURITIES ARE SUBJECT TO RESTRICTIONS OF TRANSFERABILITY AND RESALE AND MAY NOT
BE  TRANSFERRED  OR RESOLD  EXCEPT AS  PERMITTED  UNDER  SUCH LAWS  PURSUANT  TO
REGISTRATION OR AN EXEMPTION THEREFROM. THE SECURITIES HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE SECURITIES  AND EXCHANGE  COMMISSION OR ANY OTHER  REGULATORY
AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE
MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE OFFERING MATERIALS.

ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

CONVERTIBLE DEBENTURE DUE           June 15 ,1998

                                   June 15,2000

$200,000
Number       JUNE-1998-102

          FOR  VALUE  RECEIVED,   SWISSRAY  INTERNATIONAL,   INC.,  a  New  York
          corporation  (the  "Company"),  hereby  promises  to pay  to  Canadian
          Advantage Limited Partnership. or registered assigns (the "Holder") on
          June 15, 2000,  (the  "Maturity  Date"),  the principal  amount of Two
          Hundred Thousand  Dollars  ($200,000) U.S., and to pay interest on the
          principal  amount hereof,  in such amounts,  at such times and on such
          terms and conditions as are specified herein.

Article 1. Interest

      The  Company  shall pay  interest on the unpaid  principal  amount of this
Debenture (the "Debenture") at the rate of Six Percent (6.0%) per year,  payable
at the time of each conversion until the principal amount hereof is paid in full
or has been converted. Interest shall be computed on the basis of a 360 day year
of 12, 30 day months.  Each payment  shall be paid in cash or in freely  trading
Common Stock of the Company,  at the Company's  option. If paid in Common Stock,
the  number of shares of the  Company's  Common  Stock to be  received  shall be
determined by dividing the dollar amount of the interest by the then  applicable
Market Price as of the interest  payment date.  "Market Price" shall mean 80% of
the average of the 10 day closing bid prices,  as reported by Bloomberg,  LP for
the ten (10) consecutive trading days immediately preceding

                                       1

<PAGE>

the date of conversion, if the interest is to be paid in cash, the Company shall
make such  payment  within 5  business  days of the date of  conversion.  If the
interest is to be paid in Common Stock,  said Common Stock shall be delivered to
the Holder, or per Holder's instructions,  within 5 business days of the date of
conversion. The Debentures are subject to automatic conversion at the end of two
years from the date of issuance at which time all Debentures outstanding will be
automatically  converted  based upon the formula set forth in Section  3.2.  The
closing  shall be deemed to have  occurred on the date the funds are received by
the Company or its Counsel (the "Closing Date").

Article 2. Method of Payment

      This  Debenture must be surrendered to the Company in order for the Holder
to receive  payment of the principal  amount hereof.  The Company shall have the
option of paying the interest on this  Debenture in United States  dollars or in
common stock upon conversion  pursuant to Article 1 hereof. The Company may draw
a check for the payment of interest to the order of the Holder of this Debenture
and mail it to the  Holder's  address as shown on the  Register  (as  defined in
Section  7.2  below).  Interest  and  principal  payments  shall be  subject  to
withholding  under  applicable  United States Federal  Internal  Revenue Service
Regulations.

Article 3. Conversion

      Section 3.1. Conversion Privilege

      (a) The Holder of this Debenture shall have the right,  at its option,  to
convert  it into  shares of common  stock,  par value  $0.01 per  share,  of the
Company  ("Common  Stock") at any time which is before the close of  business on
the Maturity Date,  except as set forth in Section  3.1(c) below.  The number of
shares of  Common  Stock  issuable  upon the  conversion  of this  Debenture  is
determined  pursuant to Section 3.2 and rounding the result to the nearest whole
share.

      (b)  Less  than  all of the  principal  amount  of this  Debenture  may be
converted  into  Common  Stock if the  portion  converted  is  $5,000 or a whole
multiple  of $5,000  and the  provisions  of this  Article  3 that  apply to the
conversion  of all of the  Debenture  shall  also apply to the  conversion  of a
portion of it. This Debenture may not be converted, whether in whole or in part,
except in accordance with Article 3.

      (c) In the event all or any portion of this Debenture remains  outstanding
on the second  anniversary of the date hereof,  the unconverted  portion of such
Debenture  will  automatically  be converted into shares of Common Stock on such
date in the manner set forth in Section 3.2.

      Section 3.2. Conversion Procedure.

                                       2

<PAGE>

            (a)  Debentures.  Upon  receipt  by the  Company  or its  designated
attorney of a facsimile or original of Holder's  signed Notice of Conversion and
the original  Debenture to be converted in whole or in part,  the Company  shall
instruct its transfer agent to issue one or more Certificates  representing that
number of shares of Common  Stock into which the  Debenture  is  convertible  in
accordance  with the  provisions  regarding  conversion  set forth in  Exhibit A
hereto. The Seller's transfer agent or attorney shall act as Registrar and shall
maintain an appropriate ledger containing the necessary information with respect
to each Debenture.

            (b) Conversion Procedures.  The face amount of this Debenture may be
converted at the earlier of the effective date of the Registration  Statement or
sixty (60) days following the Closing Date. Such conversion shall be effectuated
by surrendering to the Company, or its attorney,  this Debenture to be converted
together with a facsimile or original of the signed  Notice of Conversion  which
evidences  Holder's  intention to convert the Debenture  indicated.  The date on
which the Notice of Conversion is effective  ("Conversion Date") shall be deemed
to be the  date  on  which  the  Holder  has  delivered  to the  Company  or its
designated  attorney a facsimile or original of the signed Notice of Conversion,
as long as the original Debenture(s) to be converted are received by the Company
or its designated  attorney within 5 business days thereafter.  Unless otherwise
notified  by the  Company in writing  via  facsimile  the  Company's  designated
attorney is Gary B. Wolff,  Esq.,  474 Third Avenue,  25th Floor,  New York, New
York 10017, (P) 212-644-6448, (F) 212-644-6498.

            (c) Common Stock to be Issued. Upon the conversion of any Debentures
and upon  receipt by the Company or its  attorney of a facsimile  or original of
Holder's  signed Notice of Conversion  Seller shall instruct  Seller's  transfer
agent to issue Stock  Certificates  without  restrictive legend or stop transfer
instructions,  if at that  time  the  Registration  Statement  has  been  deemed
effective (or with proper restrictive  legend if the Registration  Statement has
not as yet been declared effective),  in the name of Holder (or its nominee) and
in such  denominations to be specified at conversion  representing the number of
shares of Common Stock  issuable upon such  conversion,  as  applicable.  Seller
warrants that no instructions, other than these instructions, have been given or
will be given to the transfer agent and that the Common Stock shall otherwise be
freely  transferable  on the books and  records of Seller,  except as may be set
forth herein.

            (d) (i)  Conversion  Rate.  Holder  is  entitled,  at its  option to
convert the face amount of this Debenture, plus accrued interest, at the earlier
of the effective date of the Registration Statement or sixty (60) days following
the Closing Date, at 80% of the 10 day average closing bid price, as reported by
Bloomberg LP, for the ten (10) consecutive  trading days  immediately  preceding
the applicable Conversion Date (the "Conversion Price"). No fractional shares or
scrip  representing  fractions of shares will be issued on  conversion,  but the
number of shares  issuable  shall be rounded up or down,  as the case may be, to
the nearest whole share.

                                       3

<PAGE>

            (ii) if after the Closing Date, but prior to the Holder's conversion
of all the  Debentures,  the Company  raises money under either  Regulation D or
Regulation S on terms that are more favorable than those terms set forth in this
Debenture,  then in such event,  the Holder at its sole option shall be entitled
to  completely  replace the terms of this  Debenture  with the terms of the more
beneficial  Debenture as to that  balance,  including  accrued  interest and any
accumulated liquidated damages,  remaining on Holder's original investment.  The
Debentures are subject to a mandatory, 24 month conversion feature at the end of
which all Debentures outstanding will be automatically converted, upon the terms
set forth in this section ("Mandatory Conversion Date").

            (e) Nothing contained in this Debenture shall be deemed to establish
or  require  the  payment of  interest  to the Holder at a rate in excess of the
maximum rate  permitted by governing law. In the event that the rate of interest
required to be paid  exceeds the maximum rate  permitted  by governing  law, the
rate of interest  required to be paid thereunder shall be automatically  reduced
to the maximum rate  permitted  under the governing law and such excess shall be
returned with reasonable promptness by the Holder to the Company.

            (f) It shall be the Company's  responsibility  to take all necessary
actions and to bear all such costs to issue the  Certificate  of Common Stock as
provided  herein,  including  the  responsibility  and cost for  delivery  of an
opinion letter to the transfer agent,  if so required.  The person in whose name
the  certificate  of Common  Stock is to be  registered  shall be  treated  as a
shareholder  of record on and after the conversion  date.  Upon surrender of any
Debentures  that are to be  converted  in part,  the Company  shall issue to the
Holder a new  Debenture  equal to the  unconverted  amount,  if so  requested in
writing by Holder.

            (g) Within five (5) business days after receipt of the documentation
referred to above in Section 3.2(b), the Company shall deliver a certificate, in
accordance  with Section 3(c) for the number of shares of Common Stock  issuable
upon  the  conversion.  It  shall be the  Company's  responsibility  to take all
necessary  actions  and to bear all such  costs to  issue  the  Common  Stock as
provided  herein,  including  the cost for delivery of an opinion  letter to the
transfer  agent,  if so required.  The person in whose name the  certificate  of
Common Stock is to be registered  shall be treated as a shareholder of record on
and after the conversion  date.  Upon surrender of any Debentures that are to be
converted in part,  the Company shall issue to the Holder a new Debenture  equal
to the unconverted amount, if so requested in writing by Holder.

      In the event the Company does not make delivery of the Common Stock, as
instructed by Holder, within 8 business days after delivery of this original
Debenture, then in such event the Company shall pay to Holder an amount, in cash
in accordance with the following schedule, wherein "No. Business Days

                                       4

<PAGE>

Late" is defined  as the  number of  business  days  beyond the 8 business  days
delivery period.

                                     Late Payment for Each
                                     $10,000 of Debenture

No. Business Days Late               Amount Being Converted

- ----------------------               ----------------------
       1                                   $100
       2                                   $200
       3                                   $300
       4                                   $400
       5                                   $500
       6                                   $600
       7                                   $700
       8                                   $800
       9                                   $900
      10                                   $1,000
      >10                                  $1,000 + $200 for each
                                           Business Day Beyond 10

      The Company  acknowledges  that its  failure to deliver  the Common  Stock
within 8 business days after the Conversion Date will cause the Holder to suffer
damages in an amount  that will be  difficult  to  ascertain.  Accordingly,  the
parties agree that it is  appropriate  to include in this  Debenture a provision
for liquidated  damages.  The parties  acknowledge and agree that the liquidated
damages  provision set forth in this section  represents the parties' good faith
effort to qualify such  damages and, as such,  agree that the form and amount of
such  liquidated  damages are reasonable and will not constitute a penalty.  The
payment of liquidated damages shall not relieve the Company from its obligations
to deliver the Common Stock pursuant to the terms of this Debenture.

      To the extent that the  failure of the  Company to issue the Common  Stock
pursuant to this Section 3.2(g) is due to the  unavailability  of authorized but
unissued shares of Common Stock, the provisions of this Section 3.2(g) shall not
apply but instead the provisions of Section 3.2(h) shall apply.

      The Company shall make any payments  incurred under this Section 3.2(g) in
immediately  available  funds within five (5) business days from the  Conversion
Date if late.  Nothing  herein  shall  limit a Holder's  right to pursue  actual
damages or cancel the conversion for the Company's  failure to issue and deliver
Common Stock to the Holder within 8 business days after the Conversion Date.

            (h) The  Company  shall at all times  reserve  (or make  alternative
written  arrangements  for  reservation  or  contribution  of  shares)  and have
available all Common Stock necessary to meet conversion of the Debentures by all
Holders of the entire amount of  Debentures  then  outstanding.  If, at any time
Holder submits a Notice of Conversion  and the Company does not have  sufficient
authorized but unissued shares of Common Stock (or alternative  shares of Common
Stock as may be contributed by Stockholders) available to

                                       5

<PAGE>

effect,  in full, a conversion of the  Debentures (a "Conversion  Default",  the
date of such default being referred to herein as the "Conversion Default Date"),
the Company  shall  issue to the Holder all of the shares of Common  Stock which
are available, and the Notice of Conversion as to any Debentures requested to be
converted but not converted (the "Unconverted  Debentures"),  upon Holder's sole
option,  may be deemed null and void.  The Company shall provide  notice of such
Conversion  Default ("Notice of Conversion  Default") to all existing Holders of
outstanding  Debentures,  by  facsimile,  within  three (3) business day of such
default (with the original  delivered by overnight or two day courier),  and the
Holder shall give notice to the Company by facsimile  within five  business days
of receipt of the  original  Notice of  Conversion  Default  (with the  original
delivered by overnight or two day courier) of its election to either nullify or\
confirm the Notice of Conversion.

      The  Company  agrees  to pay  to all  Holders  of  outstanding  Debentures
payments for a Conversion Default  ("Conversion Default Payments") in the amount
of  (N/365)  x (.24) x the  initial  issuance  price of the  outstanding  and/or
tendered but not converted  Debentures  held by each Holder where N = the number
of days from the Conversion Default Date to the date (the "Authorization  Date")
that the Company  authorizes  a  sufficient  number of shares of Common Stock to
effect  conversion  of all remaining  Debentures.  The Company shall send notice
("Authorization   Notice")  to  each  Holder  of  outstanding   Debentures  that
additional shares of Common Stock have been authorized,  the Authorization  Date
and the amount of Holder's  accrued  Conversion  Default  Payments.  The accrued
Conversion  Default  shall be paid in cash or shall be  convertible  into Common
Stock at the Conversion Rate, at the Holder's option, payable as follows: (i) in
the event Holder  elects to take such payment in cash,  cash  payments  shall be
made to such Holder of outstanding  Debentures by the fifth day of the following
calendar  month,  or (ii) in the event  Holder  elects to take such  payment  in
stock,  the Holder may convert  such  payment  amount  into Common  Stock at the
conversion  rate set forth in section  4(d) at any time after the 5th day of the
calendar  month  following  the  month in which  the  Authorization  Notice  was
received, until the expiration of the mandatory 24 month conversion period.

      The Company  acknowledges that its failure to maintain a sufficient number
of authorized but unissued shares of Common Stock to effect in full a conversion
of the Debentures will cause the Holder to suffer damages in an amount that will
be difficult to ascertain. Accordingly, the parties agree that it is appropriate
to include in this  Agreement a provision for  liquidated  damages.  The parties
acknowledge  and agree that the liquidated  damages  provision set forth in this
section  represents the parties' good faith effort to quantify such damages and,
as such,  agree  that  the  form  and  amount  of such  liquidated  damages  are
reasonable and will not constitute a penalty.  The payment of liquidated damages
shall not relieve the Company from its  obligations  to deliver the Common Stock
pursuant to the terms of this Debenture.

                                       6

<PAGE>

      Nothing herein shall limit the Holder's right to pursue actual damages for
the Company's  failure to maintain a sufficient  number of authorized  shares of
Common Stock.

            (i) The Company shall furnish to Holder such number of  prospectuses
and other documents incidental to the registration of the shares of Common Stock
underlying the Debentures, including any amendment of or supplements thereto.

            (j) The Holder is limited  in the  amount of this  Debenture  it may
convert and own.  Other than the Mandatory  Conversion  provisions  contained in
this Debenture  which are not limited by the following,  in no other event shall
the Holder be  entitled to convert  any amount of  Debentures  in excess of that
amount  upon  conversion  of which the sum of (1) the number of shares of Common
Stock  beneficially owned by the Holder and its affiliates (other than shares of
Common Stock which may be deemed beneficially owned through the ownership of the
unconverted  portion  of the  Debenture,  and (2) the number of shares of Common
Stock issuable upon the  conversion of the Debentures  with respect to which the
determination  of this  provision  is being  made,  would  result in  beneficial
ownership by the Holder and its affiliates of more than 4.9% of the  outstanding
shares of Common  Stock of the Company.  For  purposes of this  provision to the
immediately  preceding  sentence,  beneficial  ownership  shall be determined in
accordance  with  Section  13(d) of the  Securities  Exchange  Act of  1934,  as
amended,  and  Regulation  13 D-G  thereunder,  except as otherwise  provided in
clause (1) of such provision.

      Section 3.3.  Fractional  Shares.  The Company shall not issue  fractional
shares of Common Stock, or scrip representing fractions of such shares, upon the
conversion of this  Debenture.  Instead,  the Company shall round up or down, as
the case may be, to the nearest whole share.

      Section 3.4. Taxes on Conversion.  The Company shall pay any  documentary,
stamp or  similar  issue or  transfer  tax due on the  issue of shares of Common
Stock upon the conversion of this Debenture.  However,  the Holder shall pay any
such tax which is due  because  the  shares  are issued in a name other than its
name.

      Section  3.5.  Company to Reserve  Stock.  The Company  shall  reserve the
number of shares of Common  Stock  required  pursuant  to and upon the terms set
forth in Section  3(a) of the  Subscription  Agreement  dated  June of 1998,  to
permit the conversion of this Debenture. All shares of Common Stock which may be
issued upon the conversion  hereof shall upon issuance be validly issued,  fully
paid and nonassessable  and free from all taxes,  liens and charges with respect
to the issuance thereof.

      Section 3.6. Restrictions on Transfer. This Debenture has not been
registered under the Securities Act of 1933, as amended, (the "Acts") and is
being

                                       7

<PAGE>

issued under  Section 4(2) of the Act and Rule 506 of  Regulation D  promulgated
under the Act. This  Debenture and the Common Stock issuable upon the conversion
thereof  may  only be  offered  or sold  pursuant  to  registration  under or an
exemption from the Act.

      Section 3.7.  Mergers,  Etc. If the Company  merges or  consolidates  with
another corporation or sells or transfers all or substantially all of its assets
to another  person and the holders of the Common  Stock are  entitled to receive
stock,  securities  or property in respect of or in exchange  for Common  Stock,
then as a condition of such merger, consolidation, sale or transfer, the Company
and any such  successor,  purchaser or transferee  shall amend this Debenture to
provide  that it may  thereafter  be  converted  on the terms and subject to the
conditions  set forth  above  into the kind and amount of stock,  securities  or
property  receivable  upon such  merger,  consolidation,  sale or  transfer by a
holder of the number of shares of Common Stock into which this  Debenture  might
have been  converted  immediately  before such  merger,  consolidation,  sale or
transfer,  subject to adjustments  which shall be as nearly equivalent as may be
practicable to adjustments provided for in this Article 3.

Article 4. Mergers

      The  Company  shall not  consolidate  or merge into,  or  transfer  all or
substantially  all of its assets to, any person,  unless such person  assumes in
writing the  obligations  of the Company under this  Debenture  and  immediately
after such  transaction no Event of Default exists.  Any reference herein to the
Company  shall  refer  to  such  surviving  or  transferee  corporation  and the
obligations of the Company shall terminate upon such written assumption.

Article 5. Reports

      The Company will mail to the Holder  hereof at its address as shown on the
Register a copy of any annual,  quarterly  or current  report that it files with
the Securities and Exchange  Commission  promptly after the filing thereof and a
copy of any annual,  quarterly or other report or proxy  statement that it gives
to its  shareholders  generally  at the time such report or statement is sent to
shareholders.

Article 6. Defaults and Remedies

      Section 6.1.  Events of Default.  An "Event of Default"  occurs if (a) the
Company does not make the payment of the  principal of this  Debenture  when the
same becomes due and payable at maturity, upon redemption or otherwise,  (b) the
Company does not make a payment, other than a payment of principal, for a period
of 5 business days  thereafter,  (c) the Company fails to comply with any of its
other agreements in this Debenture and such failure continues for the period and
after the notice  specified  below,  (d) the  Company  pursuant to or within the
meaning of any Bankruptcy Law (as hereinafter defined): (i) commences a

                                       8

<PAGE>

voluntary  case; (ii) consents to the entry of an order for relief against it in
an  involuntary  case;  (iii)  consents to the  appointment  of a Custodian  (as
hereinafter  defined) of it or for all or  substantially  all of its property or
(iv) makes a general  assignment for the benefit of its creditors or (v) a court
of competent  jurisdiction  enters an order or decree under any  Bankruptcy  Law
that: (A) is for relief against the Company in an involuntary case; (B) appoints
a Custodian  of the Company or for all or  substantially  all of its property or
(C) orders  the  liquidation  of the  Company,  and the order or decree  remains
unstayed and in effect for 60 days, (e) the Company's  Common Stock is no longer
listed on any recognized exchange including electronic over-the-counter bulletin
board. As used in this Section 6.1, the term  "Bankruptcy Law" means Title 11 of
the United  States  Code or any  similar  federal or state law for the relief of
debtors. The term "Custodian" means any receiver, trustee, assignee,  liquidator
or similar  official under any Bankruptcy  Law. A default under clause (c) above
is not an Event of Default  until the  holders of at least 25% of the  aggregate
principal  amount of the  Debentures  outstanding  notify  the  Company  of such
default and the Company does not cure it within five (5) business days after the
receipt of such  notice,  which must  specify  the  default,  demand  that it be
remedied and state that it is a "Notice of Default".

      Section 6.2. Acceleration. If an Event of Default occurs and is
continuing, the Holder hereof by notice to the Company, may declare the
remaining principal amount of this Debenture to be due and payable. Upon such
declaration, the remaining principal amount shall be due and payable immediately

Article 7. Registered Debentures

      Section  7.1.  Series.  This  Debenture  is one of a  numbered  series  of
Debentures  which are identical  except as to the  principal  amount and date of
issuance  thereof and as to any restriction on the transfer  thereof in order to
comply with the Securities Act of 1933 and the regulations of the Securities and
Exchange  Commission  promulgated  thereunder.  Such  Debentures are referred to
herein collectively as the "Debentures". The Debentures shall be issued in whole
multiples of $5,000.

      Section  7.2.  Record  Ownership.  The  Company,  or its  attorney,  shall
maintain a register of the holders of the Debentures  (the  "Register")  showing
their  names and  addresses  and the serial  numbers  and  principal  amounts of
Debentures  issued to or  transferred  of record by them from time to time.  The
Register may be maintained in electronic,  magnetic or other  computerized form.
The Company may treat the person  named as the Holder of this  Debenture  in the
Register as the sole owner of this  Debenture.  The Holder of this  Debenture is
the  person  exclusively  entitled  to  receive  payments  of  interest  on this
Debenture, receive notifications with respect to this Debenture, convert it into
Common Stock and otherwise exercise all of the rights and powers as the absolute
owner hereof.

      Section 7.3. Registration of Transfer. Transfers of this Debenture may be
registered on the books of the Company maintained for such purpose pursuant to

                                       9

<PAGE>

Section 7.2 above (i.e., the Register).  Transfers shall be registered when this
Debenture  is  presented  to the Company with a request to register the transfer
hereof and the Debenture is duly endorsed by the appropriate person,  reasonable
assurances are given that the  endorsements  are genuine and effective,  and the
Company has received evidence  satisfactory to it that such transfer is rightful
and in compliance  with all  applicable  laws,  including tax laws and state and
federal  securities laws. When this Debenture is presented for transfer and duly
transferred hereunder, it shall be canceled and a new Debenture showing the name
of the  transferee as the record holder  thereof shall be issued in lieu hereof.
When this  Debenture is  presented  to the Company with a reasonable  request to
exchange it for an equal principal amount of Debentures of other  denominations,
the Company shall make such  exchange and shall cancel this  Debenture and issue
in lieu  thereof  Debentures  having  a total  principal  amount  equal  to this
Debenture in such denominations as agreed to by the Company and Holder.

      Section 7.4.  Worn or Lost  Debentures.  If this  Debenture  becomes worn,
defaced or mutilated but is still  substantially  intact and  recognizable,  the
Company  or its  agent  may  issue a new  Debenture  in  lieu  hereof  upon  its
surrender. Where the Holder of this Debenture claims that the Debenture has been
lost,  destroyed or wrongfully taken, the Company shall issue a new Debenture in
place of the original  Debenture if the Holder so requests by written  notice to
the Company  actually  received by the  Company  before it is notified  that the
Debenture  has  been  acquired  by a bona  fide  purchaser  and the  Holder  has
delivered  to the  Company an  indemnity  bond in such amount and issued by such
surety as the Company  deems  satisfactory  together  with an  affidavit  of the
Holder  setting forth the facts  concerning  such loss,  destruction or wrongful
taking and such other  information in such form with such proof or  verification
as the Company may request.

Article 8. Notices

      Any  notice  which is  required  or  convenient  under  the  terms of this
Debenture  shall be duly given if it is in writing  and  delivered  in person or
mailed by first class mail,  postage  prepaid and  directed to the Holder of the
Debenture  at its address as it appears on the  Register or if to the Company to
its principal  executive offices,  with a copy by fax to Gary B. Wolff, Esq. 747
Third Avenue, New York, NY 10017. The time when such notice is sent shall be the
time of the giving of the notice.

Article 9. Time

      Where this  Debenture  authorizes  or requires the payment of money or the
performance  of a condition  or  obligation  on a Saturday or Sunday or a public
holiday,  or authorizes or requires the payment of money or the performance of a
condition or obligation within, before or after a period of time computed from a
certain date, and such period of time ends on a Saturday or a Sunday or a public

                                       10

<PAGE>

holiday,  such payment may be made or condition or  obligation  performed on the
next  succeeding  business day, and if the period ends at a specified hour, such
payment may be made or condition  performed,  at or before the same hour of such
next  succeeding  business  day,  with the same  force and  effect as if made or
performed in accordance with the terms of this Debenture. A "business day" shall
mean a day on which  the banks in New York are not  required  or  allowed  to be
closed.

Article 10. Waivers

      The holders of a majority in principal  amount of the Debentures may waive
a default or rescind the declaration of an Event of Default and its consequences
except for a default in the  payment of  principal  or  conversion  into  Common
Stock.

Article 11. Rules of Construction

      In this Debenture,  unless the context  otherwise  requires,  words in the
singular number include the plural, and in the plural include the singular,  and
words of the masculine gender include the feminine and the neuter,  and when the
sense so  indicates,  words of the neuter  gender may refer to any  gender.  The
numbers and titles of sections  contained  in the  Debenture  are  inserted  for
convenience  of reference  only,  and they neither form a part of this Debenture
nor are they to be used in the construction or interpretation hereof.  Wherever,
in this Debenture,  a determination of the Company is required or allowed,  such
determination  shall be made by a  majority  of the  Board of  Directors  of the
Company and if it is made in good faith, it shall be conclusive and binding upon
the Company and the Holder of this Debenture.

Article 12. Governing Law\

      The validity,  terms,  performance and enforcement of this Debenture shall
be governed and construed by the  provisions  hereof and in accordance  with the
laws of the State of Delaware  applicable  to  agreements  that are  negotiated,
executed, delivered and performed solely in the State of Delaware.

Article 13. Litigation

      (a) Forum  Selection and Consent to  Jurisdiction.  Any  litigation  based
thereon,  or arising out of, under, or in connection with, this agreement or any
course of conduct,  course of dealing,  statements  (whether oral or written) or
actions of the Company or Holder shall be brought and maintained  exclusively in
the  courts  of  the  State  of New  York.  The  Company  hereby  expressly  and
irrevocably  submits to the  jurisdiction of the state and federal courts of the
State of New York for the purpose of any such  litigation as set forth above and
irrevocably  agrees  to be bound  by any  final  judgment  rendered  thereby  in
connection with such litigation. The Company further irrevocably consents to the

                                       11

<PAGE>

service of process by registered mail,  postage prepaid,  or by personal service
within or  without  the State of New York.  The  Company  hereby  expressly  and
irrevocably  waives, to the fullest extent permitted by law, any objection which
it may have or hereafter may have to the laying of venue of any such  litigation
brought  in any  such  court  referred  to  above  and any  claim  that any such
litigation has been brought in any  inconvenient  forum.  To the extent that the
Company has or hereafter may acquire any immunity from jurisdiction of any court
or from any legal process (whether  through service or notice,  attachment prior
to judgment, attachment in aid of execution or otherwise) with respect to itself
or its property,  the Company hereby irrevocably waives such immunity in respect
of its obligations under this agreement and the other loan documents.

      (b) Waiver of Jury  Trial.  The Holder and the Company  hereby  knowingly,
voluntarily and intentionally  waive any rights they may have to a trial by jury
in respect of any  litigation  based  hereon,  or arising out of,  under,  or in
connection  with, this agreement,  or any course of conduct,  course of dealing,
statements  (whether  oral or written) or actions of the Holder or the  Company.
The Company  acknowledges  and agrees that it has received  full and  sufficient
consideration  for  this  provision  and  that  this  provision  is  a  material
inducement for the Holder entering into this agreement.

      (c)  Submission  To  Jurisdiction.  Any  legal  action  or  proceeding  in
connection with this Agreement or the  performance  hereof may be brought in the
state and federal courts located in the State of New York and the parties hereby
irrevocably  submit to the  non-exclusive  jurisdiction  of such  courts for the
purpose of any such action or proceeding.

      IN WITNESS WHEREOF, the Company has duly executed this Debenture as of the
date first written above.

                                                SWISSRAY INTERNATIONAL, INC.

                                                By
                                                 /s/Ruedi G. Laupper
                                                   -----------------------------
                                             Name: Ruedi G. Laupper
                                             Title: Chairman and President

                                       12

<PAGE>

                                    Exhibit A

                              NOTICE OF CONVERSION

 (To be Executed by the Registered Holder in order to Convert the Debentures.)

      The undersigned hereby  irrevocably  elects, as of  _____________,199_  to
convert  $__________________  of the Debentures into Shares of Common Stock (the
"Shares")  of SWISSRAY  INTERNATIONAL,  INC.  (the  "Company")  according to the
conditions set forth in the Subscription Agreement dated June, 1998.

Date of Conversion______________________________________________________________

Applicable Conversion Price_____________________________________________________

Number of Shares Issuable upon this conversion__________________________________

Signature_______________________________________________________________________
                             [Name]

Address_________________________________________________________________________

--------------------------------------------------------------------------------

Phone_________________________________  Fax_____________________________________

                                       13

<PAGE>

                             Assignment of Debenture

        The undersigned hereby sell(s) and assign(s) and transfer(s) unto

- ------------------------------------------------------------------------------
                   (name, address and SSN or EIN of assignee)

                                   Dollars ($         )

- ------------------------------------------------------------------------------
(principal amount of Debenture, $5,000 or integral multiples of $5,000)

of  principal  amount of this  Debenture  together  with all  accrued and unpaid
interest hereon.

Date:                            Signed:

     ----------------------------       ----------------------------------------
                                        (Signature must conform in all respects
                                        to name of Holder shown of face of
                                        Debenture)

Signature Guaranteed:

                                       14

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