Document:

<TABLE>
<CAPTION>
Name                                       Dated           Amount         Maturity Date     Deb. No.
---------------------------------------    ------------    ----------     ---------------   -------
<S>                                        <C>             <C>            <C>               <C>
Southshore Capital, Ltd.*                  Aug 23, 1999    $1,148,000     August 23, 2001   AUG-1999-101
Assigned to Parkdale LLC
</TABLE>

*    This document has been filed.
<PAGE>
                                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                                        AUGUST 23, 1999
                                                                 AUGUST 23, 2001
$ 1,148,400
Number   AUG-99-101

         FOR  VALUE  RECEIVED,   SWISSRAY   INTERNATIONAL,   INC.,  a  New  York
         corporation  (the  "Company"),  hereby promises to pay Parkdale LLC
         or  registered  assigns (the  "Holder")  on August 23,  2001,  (the
         "Maturity  Date"),  the  principal  amount of One  Million  One Hundred
         Forty-Eight  Thousand Four Hundred  Dollars ($ 1,148,400)  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.  The
         purchase  price  for  this  Debenture  shall  be  deemed  to have  been
         delivered  to the  Company  upon  non-payment  of the  full  amount  of
         principal  and interest due on the  Promissory  Note dated July 9, 1999
         between  the  Company and the  Holder.  The fully  executed  Contingent
         Subscription   Agreement,   Registration   Rights  Agreement  and  this
         Debenture shall be held by the escrow agent and shall only be delivered
         to the Holder  upon  non-payment  of the full amount of  principal  and
         interest due on the Promissory  Note on its "Due Date".  The "Due Date"
         of the Promissory Note shall mean August 23, 1999.

Article 1. Interest

         The Company shall pay interest on the unpaid  principal  amount of this
Debenture (the "Debenture") at the rate of Five Percent (5.0%) 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  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 Due Date as that term is defined above.

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 following the Due Date and  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 out-
standing  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.

         (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
receipt of the  original  Debenture  to be  converted in whole or in part in the
manner set forth in 3.2(b) below,  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  anytime  following the Due 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.,  747 Third Avenue,  25th Floor,  New York, New
York 10017, (P) 212-644-6446, (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  covering such shares
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,  anytime following the
Due 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.

                  (ii) Most Favored Financing.  If after the Due 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 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 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 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 anytime  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.

         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. In no event except (i) with respect to a conversion pursuant to
redemption by the Company or (ii) if there is (a) a public announcement that 50%
or more of the Company is being  acquired,  (b) a public  announcement  that the
Company  is being  merged,  or (c) a change  in  control,  shall  the  Holder be
entitled to convert any  Debentures to the extent that,  after such  conversion,
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
Debentures  or any of the Company's  Warrants),  and (2) the number of shares of
Common Stock issuable upon the conversion of the Debentures,  or exercise of any
of the  Company's  Warrants,  with  respect to which the  determination  of this
proviso is being made,  would result in  beneficial  ownership by the Holder and
its  affiliates  of more than 4.99% of the  outstanding  shares of Common  Stock
(after  taking  into  account  the shares to be issued to the  Holder  upon such
conversion).  For purposes of the proviso 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  (the  "1934  Act"),  except  as
otherwise provided in clause (1) of such proviso. The Holder further agrees that
if the Holder transfers or assigns any of the Debentures to a party who or which
would not be considered such an affiliate, such assignment shall be made subject
to  the  transferee's  or  assignee's  specific  agreement  to be  bound  by the
provisions of this Section as if such transferee or assignee were a signatory to
the  Subscription  Agreement.  Furthermore,  the  Company  shall not permit such
conversions  that would violate the  provisions of this Section  3.2(j),  unless
amended in writing upon mutual consent of the parties.

         (k) Redemption. Company reserves the right, at its sole option, to call
a mandatory redemption of any percentage of the balance on the Debentures during
the  two year period following the Due Date.  In the event the Company exercises
such right of redemption up  to  and including  the last day of the fourth (4th)
month  following  the  Due  Date  it  shall pay the Holder, in U.S. currency One
Hundred Fifteen (115%) of the face amount of the Debentures to be redeemed, plus
accrued interest.In the event the Company  exercises such right of redemption at
anytime during the fifth (5th) or sixth (6th) months  following  the Due Date it
shall pay the  Holder,  in U.S. currency One Hundred  Twenty  (120%) of the face
amount of the  Debentures to be  redeemed,  plus accrued interest.  In the event
the Company exercises such right of redemption  at anytime after the last day of
the sixth (6th) month  following  the  Due Date it shall pay the Holder, in U.S.
currency One Hundred  Twenty-five (125%) of the face  amount  of the  Debentures
to be  redeemed,  plus  accrued  interest. The date by which the Debentures must
be  delivered  to  the  Escrow  Agent  shall  not  be later than 5 business days
following  the  date  the  Company  notifies  the  Holder  by  facsimile  of the
redemption.  The Company shall give the Holder at  least 5 business day's notice
of its intent to redeem.

         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  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 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 "Act") and is
being  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 fails to comply with any of its  agreements  in this  Debenture and such
failure  continues for the period and after the notice  specified below, (b) the
Company  pursuant to or within the meaning of any Bankruptcy Law (as hereinafter
defined): (i) commences a 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. 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 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
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 New York applicable to agreements that are negotiated,
executed, delivered and performed solely in the State of New York.

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
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

<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   Contingent   Subscription   Agreement   dated
_________________,1999.

Date of Conversion_________________________________________

Applicable Conversion Price_________________________________

Number of Shares Issuable upon this conversion______________

Signature___________________________________________________
                           [Name]

Address_____________________________________________________

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

Phone______________________   Fax___________________________

<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 on face of  Debenture)

Signature Guaranteed:EXHIBIT 10.62(A)
              Assignment of Promissory Note and Security Agreement

                                                                   Maturity
Name                           Dated               Amount          Date
----                           -----               ------          ----

Southshore Capital, Ltd. *     Aug. 11, 1999       $1,400,000      Nov. 11, 1999
 Assigned to Parkdale LLC      Oct. 28, 1999

*    This document has been filed.

<PAGE>

              ASSIGNMENT OF PROMISSORY NOTE AND SECURITY AGREEMENT

     This   Assignment  of  Promissory   Note  and  Security   Agreement,   (the
"Assignment") is made this 28th day of October, 1999, by SOUTHSHORE CAPITAL FUND
LTD.  (herein referred to as "Assignor") and PARKDALE LLC (herein referred to as
"Assignee").

                              W I T N E S S E T H:

     WHEREAS, by Promissory Note dated August 11, 1999 (hereinafter  referred to
as the "Note") Assignor loaned to SWISSRAY INTERNATIONAL, INC., (herein referred
to as "SRMI") $1,400,000;

     WHEREAS,  SRMI executed a Security Agreement,  (hereinafter  referred to as
the  "Security  Agreement")  also dated  August  11,  1999 to secure the loan of
$1,400,000 which security interest has not yet been perfected;

     WHEREAS,  said Note is due and payable on November 11, 1999 and if not paid
in full on or before November 11, 1999, then the unpaid  principal  balance with
accrued  interest  rolls into a debenture  convertible  into SRMI  common  stock
pursuant to certain terms and conditions; and

     WHEREAS,  Assignee in order to accomplish the transfer of all right,  title
and  interest  of the Note and  Security  Agreement  to  Assignee  has  required
Assignor to make this Assignment;

     NOW, THEREFORE,  in consideration of the payment by Assignee to Assignor of
$1.00, the receipt of which is hereby acknowledged,  and for such other good and
valuable consideration the parties hereto hereby agree as follows:

I.   ASSIGNMENT.

     (a) Assignor does hereby give,  grant,  bargain,  sell,  transfer,  assign,
convey and deliver to Assignee  all right,  title and  interest in, to and under
the  following:  Note and Security  Agreement,  together  with all of Assignor's
rights and privileges  with respect  thereto,  which Assignee  represents it has
received copies of and has carefully reviewed the same. Assignee also represents
it has received copies of the Contingent  Subscription  Agreement,  Registration
Rights Agreement and Debenture and has carefully reviewed the same.

     (b)  Assignor  appoints  Assignee  its true and lawful  attorney to demand,
receive  and enforce any rights,  interests  and  benefits  accruing to Assignor
under the terms of the Agreement, and all amendments thereto, and to sue, either
in

                                       1
<PAGE>

the name of Assignor or in the name of Assignee, in connection with said rights,
interests and benefits.

     (c)  Beginning  on the  effective  date of this  Assignment,  Assignee  may
demand,  receive and enforce said rights,  interests  and benefits  under and in
accordance with the terms of the Note and Security  Agreement and all amendments
thereto.

     (d)  Assignee,  by  virtue of this  Assignment,  hereby  agrees to  assume,
observe and perform any and all of Assignor's duties, responsibilities or future
liabilities  imposed  upon  Assignor  under the  terms of the Note and  Security
Agreement and any and all amendments thereto.  Accordingly, upon this Assignment
all the  rights  and  interests  in the Note  and  Security  Agreement  shall be
transferred  from  Assignor to Assignee  and  Assignor  shall no longer have any
rights or obligations with respect thereto.

     (e) Assignor warrants and covenants that it has full right and authority to
make  this  Assignment,  and  that it will  not  execute  or  permit  any  other
assignment of any interest assigned to Assignee hereunder.

     (f) Except as otherwise  provided herein,  this Assignment made by Assignor
hereunder is irrevocable, is without recourse to or warranty by the Assignor and
shall remain in full force and effect until the  expiration  of the terms of the
Note and Security Agreement and all amendments thereto.

     (g) This Assignment,  together with the agreements and warranties contained
herein shall inure to the benefit of Assignee,  its successors and assigns,  and
shall be binding upon Assignor and its assigns.

II.  FACSIMILE AS ORIGINAL.

     (a) This  Assignment  may be executed in  counterparts,  and the  facsimile
transmission of an executed counterpart to this Assignment shall be effective as
an original.

     IN WITNESS  WHEREOF,  Assignor and Assignee have hereunto  caused to be set
their hand and seal as of the date first mentioned.

ASSIGNEE:                                   ASSIGNOR:
PARKDALE LLC                                SOUTHSHORE CAPITAL FUND LTD.

/s/ ILLEGIBLE                               /s/ ILLEGIBLE
-------------------------                   ----------------------------
Navigator Management Ltd.                   Navigator Management Ltd.
Director                                    Director

                                       2
<PAGE>

                                     CONSENT

     SWISSRAY  INTERNATIONAL,  INC.  acting  herein  by  Ruedi G.  Laupper,  its
Chairman and President,  dully authorized,  hereby  acknowledges and consents to
the above-described Assignment.

                 SWISSRAY INTERNATIONAL, INC.

                By: /s/ Ruedi G. Laupper
                    -----------------------------------------------------
                    Ruedi G. Laupper, its Chairman and President duly authorized

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