Document:

<TABLE>
<CAPTION>
Name                                       Dated           Amount         Maturity Date
---------------------------------------    ------------    ----------     ---------------
<S>                                        <C>             <C>            <C>
Dominion Capital Fund Ltd.*                Jan. 29, 1999    $    14,625    Jan 29,2004
Dominion Investment Fund LLC.              Jan. 29, 1999    $    14,625    Jan 29,2004
Sovereign Partners LP.                     Jan. 29, 1999    $    29,250    Jan 29,2004
</TABLE>

*    This document has been filed.
<PAGE>
THE SECURITIES  REPRESENTED  HEREBY HAVE NOT BEEN REGISTERED UNDER UNITED STATES
FEDERAL  OR STATE  SECURITIES  LAWS AND MAY NOT BE  OFFERED  FOR  SALE,  SOLD OR
OTHERWISE TRANSFERRED OR ASSIGNED FOR VALUE, DIRECTLY OR INDIRECTLY, NOR MAY THE
SECURITIES BE TRANSFERRED ON THE BOOKS OF THE CORPORATION,  WITHOUT REGISTRATION
OF SUCH SECURITIES UNDER ALL APPLICABLE UNITED STATES FEDERAL SECURITIES LAWS OR
COMPLIANCE WITH AN APPLICABLE EXEMPTION THEREFROM, SUCH COMPLIANCE AT THE OPTION
OF THE CORPORATION,  TO BE EVIDENCED BY AN OPINION OF STOCKHOLDER'S  COUNSEL, IN
FORM  ACCEPTABLE  TO THE  CORPORATION,  THAT NO VIOLATION  OF SUCH  REGISTRATION
PROVISIONS WOULD RESULT FROM ANY PROPOSED TRANSFER OR ASSIGNMENT.

                      WARRANT TO PURCHASE 25,000 SHARES OF
                  COMMON STOCK OF SWISSRAY INTERNATIONAL, INC.

                     Exercisable Commencing January 29, 1999;
                            Void after January 29, 2004

THIS  CERTIFIES  that,  for value received  DOMINION  CAPITAL FUND,  LTD. or its
registered assigns (the  "Warrantholder") is entitled,  subject to the terms and
conditions set forth in this Warrant,  to purchase from SWISSRAY  INTERNATIONAL,
INC., a New York corporation (the "Company"), 14,625 fully paid, duly authorized
and nonassessable  shares (the "Shares"),  of Common Stock, $.0001 par value per
share, of the Company (the "Common Stock"),  at any time commencing  January 29,
1999 and  continuing  up to 5:00 p.m. New York City time on January 29, 2004 at
an exercise price of $1.00 subject to adjustment pursuant to Section 8 hereof.

         This  Warrant  is  subject  to  the  following  provisions,  terms  and
conditions:

         Section 1.        Transferability.

         1.1      Registration.  The Warrants shall be issued only in registered
form and Shares issuable upon exercise of the Warrants shall have piggy back
registration rights and shall be registered by the Company pursuant to the terms
of a Registration Rights Agreement between the Company and  Warrantholder.

         1.2 Transfer.  This Warrant shall be transferable  only on the books of
the Company maintained at its principal executive offices upon surrender thereof
for  registration of transfer duly endorsed by the  Warrantholder or by its duly
authorized  attorney or  representative,  or accompanied  by proper  evidence of
succession,  assignment  or  authority  to transfer.  Upon any  registration  of
transfer,  the  Company  shall  execute and deliver a new Warrant or Warrants in
appropriate denominations to the person or persons entitled thereto.

         1.3      Legend on Warrant Shares.  Each certificate for Shares
initially issued upon exercise of a Warrant, unless at time of exercise such
Shares are registered under the Securities Act of 1933, as amended (the
"Securities Act"), shall bear the following legend:
                  ------------------------

         THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER UNITED
         STATES  FEDERAL OR STATE  SECURITIES  LAWS AND MAY NOT BE  OFFERED  FOR
         SALE, SOLD OR OTHERWISE  TRANSFERRED OR ASSIGNED FOR VALUE, DIRECTLY OR
         INDIRECTLY,  NOR MAY THE  SECURITIES BE TRANSFERRED ON THE BOOKS OF THE
         CORPORATION,   WITHOUT   REGISTRATION  OF  SUCH  SECURITIES  UNDER  ALL
         APPLICABLE UNITED STATES FEDERAL  SECURITIES LAWS OR COMPLIANCE WITH AN
         APPLICABLE  EXEMPTION  THEREFROM,  SUCH COMPLIANCE AT THE OPTION OF THE
         CORPORATION, TO BE EVIDENCED BY AN OPINION OF STOCKHOLDER'S COUNSEL, IN
         FORM  ACCEPTABLE  TO  THE  CORPORATION,   THAT  NO  VIOLATION  OF  SUCH
         REGISTRATION  PROVISIONS  WOULD  RESULT FROM ANY  PROPOSED  TRANSFER OR
         ASSIGNMENT.

         Any certificate  issued at any time in exchange or substitution for any
certificate bearing such legend (except a new certificate issued upon completion
of  a  public  distribution  pursuant  to a  registration  statement  under  the
Securities Act of the securities  represented thereby) shall also bear the above
legend  unless the  Company  receives  an opinion of counsel  acceptable  to the
Company that registration or qualification of the securities represented thereby
under the laws referred to therein is not required.

         Section 2. Exchange of Warrant Certificate. Any Warrant certificate may
be exchanged for another certificate or certificates of like tenor entitling the
Warrantholder  to purchase a like aggregate  number of Shares as the certificate
or certificates  surrendered then entitle such  Warrantholder  to purchase.  Any
Warrantholder desiring to exchange a warrant certificate shall make such request
in writing delivered to the Company, and shall surrender, properly endorsed, the
certificate  evidencing the Warrant to be so exchanged.  Thereupon,  the Company
shall  execute  and  deliver  to  the  person  entitled  thereto  a new  Warrant
certificate as so requested.

         Section 3.        Terms of Warrants: Exercise of Warrants.

         (a) Subject to the terms of this Warrant,  the Warrantholder shall have
the right, at any time after January , 1999, but before 5:00 p.m., New York City
time on January , 2004 (the "Expiration  Time"), to purchase from the Company up
to the number of Shares which the  Warrantholder  may at the time be entitled to
purchase pursuant to the terms of this Warrant, upon surrender to the Company at
its principal executive office, of the certificate evidencing this Warrant to be
exercised,  together with the attached  Election to Exercise form duly filled in
and signed,  and upon payment to the Company of the Warrant Price (as defined in
and determined in accordance  with the provisions of Section 7 and 8 hereof) for
the  number of Shares  with  respect to which  such  Warrant is then  exercised.
Payment of the aggregate  Warrant Price shall be made in cash,  wire transfer or
by cashier's check or any combination thereof.

         (b) Subject to the terms of this Warrant,  upon such  surrender of this
Warrant and  payment of such  Warrant  Price as  aforesaid,  the  Company  shall
promptly issue and cause to be delivered to the  Warrantholder or to such person
or persons as the  Warrantholder  may  designate in writing,  a  certificate  or
certificates  (in such  name or  names as the  Warrantholder  may  designate  in
writing) for the number of duly authorized,  fully paid and non-assessable whole
Shares to be purchased  upon the exercise of this Warrant,  and shall deliver to
the  Warrantholder  Common  Stock or cash,  to the extent  provided in Section 9
hereof,  with respect to any  fractional  Shares  otherwise  issuable  upon such
surrender.  Such certificate or certificates shall be deemed to have been issued
and any person so  designated to be named therein shall be deemed to have become
a holder of such Shares as of the close of business on the date of the surrender
of this  Warrant  and  payment of the Warrant  Price,  notwithstanding  that the
certificates  representing such Shares shall not actually have been delivered or
that the Share and Warrant  transfer  books of the Company shall then be closed.
This Warrant shall be  exercisable,  at the sole election of the  Warrantholder,
either  in full  or from  time to time  in  part  and,  in the  event  that  any
certificate  evidencing this Warrant (or any portion thereof) is exercised prior
to the  Termination  Date with respect to less than all of the Shares  specified
therein at any time prior to the  Termination  Date, a new  certificate  of like
tenor  evidencing  the remaining  portion of this Warrant shall be issued by the
Company, if so requested by the Warrantholder.

         (c)  Upon  the  Company's   receipt  of  a  facsimile  or  original  of
Warrantholder's  signed  Election to Exercise,  the Company  shall  instruct its
transfer agent to issue one or more stock Certificates  representing that number
of shares of Common  Stock  which the  Warrantholder  is entitled to purchase in
accordance  with the terms and  conditions  of this  Warrant and the Election to
Exercise attached hereto.  The Company's transfer agent or attorney shall act as
Registrar and shall  maintain an  appropriate  ledger  containing  the necessary
information with respect to each Warrant.

         (d) Such exercise shall be effectuated by  surrendering to the Company,
or its  attorney,  the  Warrants to be  converted  together  with a facsimile or
original  of the signed  Election to Exercise  which  evidences  Warrantholder's
intention to exercise those Warrants  indicated.  The date on which the Election
to Exercise is  effective  ("Exercise  Date")  shall be deemed to be the date on
which the  Warrantholder has delivered to the Company a facsimile or original of
the  signed  Election  to  Exercise,  as long  as the  original  Warrants  to be
exercised  are  received  by the  Company or its  designated  attorney  within 5
business days  thereafter.  As long as the Warrants to be exercised are received
by the Company  within  five  business  days after it  receives a  facsimile  or
original of the signed  Election to Exercise,  the Company  shall deliver to the
Warrantholder,  or per the  Warrantholder's  instructions,  the shares of Common
Stock to an address in the U.S.,  without  restrictive  legend or stop  transfer
instructions, within 5 business days of receipt of the Warrants to be converted.

         (e) Nothing  contained in this Warrant  shall be deemed to establish or
require the payment of interest to the  Warrantholder 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 Warrantholder 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  exercise  date.  Upon  surrender of any
Warrants  that are to be  converted  in part,  the  Company  shall  issue to the
Warrantholder  new Warrants equal to the unconverted  amount, if so requested by
Warrantholder.

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

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

         (h) Each  person in whose  name any  certificate  for  shares of Common
Stock shall be issued shall for all purposes be deemed to have become the holder
of record  of the  Common  Stock  represented  thereby  on the date on which the
Warrant was  surrendered  and payment of the purchase  price and any  applicable
taxes was made,  irrespective of date of issue or delivery of such  certificate,
except that if the date of such  surrender and payment is a date when the Shares
transfer  books of the Company are closed,  such person  shall be deemed to have
become the holder of such Shares on the next succeeding date on which such Share
transfer  books are open.  The Company shall not close such Share transfer books
at any one time for a period longer than seven days.

         Section 4.  Payment of Taxes.  The  Company  shall pay all  documentary
stamp  taxes,  if any,  attributable  to the  initial  issuance  of the  Shares;
provided,  however,  that the  Company  shall not be  required to pay any tax or
taxes which may be payable,  (i) with respect to any secondary  transfer of this
Warrant or the Shares or (ii) as a result of the  issuance  of the Shares to any
person other than the  Warrantholder,  and the Company  shall not be required to
issue or deliver  any  certificate  for any  Shares  unless and until the person
requesting  the  issuance  thereof  shall have paid to the Company the amount of
such tax or shall  have  produced  evidence  that  such tax has been paid to the
appropriate taxing authority.

         Section 5.  Mutilated or Missing  Warrant.  In case the  certificate or
certificates  evidencing  this  Warrant  shall be  mutilated,  lost,  stolen  or
destroyed,  the Company shall,  at the request of the  Warrantholder,  issue and
deliver in exchange and substitution for and upon  cancellation of the mutilated
certificate or certificates,  or in lieu of and substitution for the certificate
or  certificates  lost,  stolen  or  destroyed,  a new  Warrant  certificate  or
certificates of like tenor and representing an equivalent right or interest, but
only upon receipt of evidence satisfactory to the Company of such loss, theft or
destruction  of such  Warrant and of a bond of  indemnity,  if  requested,  also
satisfactory  to the Company in form and amount,  and issued at the  applicant's
cost.  Applicants for such substitute Warrant certificate shall also comply with
such other reasonable  regulations and pay such other reasonable  charges as the
Company may prescribe.

         Section 6.  Reservation  of Shares.  The  Company  has duly and validly
reserved,  and shall at all times so long as this Warrant  remains  outstanding,
keep  reserved,  out of its authorized  and unissued  capital stock,  sufficient
shares of Common  Stock as shall be subject to purchase  under this Warrant (the
"Reserved Shares"). The issuance, sale and delivery of the Warrants and Reserved
Shares have been duly authorized by all required corporate action on the part of
the Company and when issued,  sold and  delivered in  accordance  with the terms
hereof and thereof for the consideration  expressed herein and therein,  will be
duly and validly  issued,  fully paid,  and  non-assessable  and  enforceable in
accordance  with their terms,  subject to the laws of bankruptcy  and creditors'
rights  generally.  The  Company  shall  pay all taxes in  respect  of the issue
thereof.  As a condition precedent to the taking of any action that would result
in the effective  purchase  price per share of Common Stock upon the exercise of
this  Warrant  being less than the par value per share (if such shares of Common
Stock then have a par value),  the Company  will take such  corporate  action as
may, in the opinion of its  counsel,  be necessary in order that the Company may
comply with all its obligations under this Agreement with regard to the exercise
of this Warrant.

         Prior to exercise of all the Warrants,  if at anytime the conversion of
all the  Shares  and  exercise  of all the  Warrants  outstanding  results in an
insufficient  number  of  Reserved  Shares  being  available  to  cover  all the
conversions and exercises, then in such event, the Company will move to call and
hold a  shareholder's  meeting  within 45 days of such event for the  purpose of
authorizing  additional  Shares to facilitate the conversions.  In such an event
the Company shall:  (1) recommend to its current or future  officers,  directors
and  other  control  people to vote  their  shares  in favor of  increasing  the
authorized   number  of  shares  of  Common  Stock  and  (2)  recommend  to  all
shareholders  to vote their shares in favor of increasing the authorized  number
of shares of Common Stock. As for any  shareholders who do not vote on the issue
of increasing the authorized  number of shares of Common Stock,  such failure to
vote  shall  automatically  be  taken  as a vote  in  favor  of  increasing  the
authorized  number of shares of Common Stock.  The proxy sent out by the Company
to all  shareholders  shall  provide  that if no vote is  received  a consent to
action will be executed on behalf of those  shares of Common  Stock for which no
vote was received,  in favor of increasing  the  authorized  number of shares of
Common  Stock of the Company.  Company  represents  and  warrants  that under no
circumstances will it deny or prevent Warrantholder from exercising the Warrants
as permitted under the terms of the Subscription Agreement,  the Warrants or the
Registration Rights Agreement.

         Section 7.        Warrant Price.  From January    , 1999 through 5:00
p.m. New York City time on January    , 2004, the price per Share (the "Warrant
price") at which Shares shall be purchasable upon the exercise of this Warrant
shall be $1.00 subject to adjustment pursuant to Section 8 hereof.

         Section 8.        Adjustment of Warrant Price and Number of Shares.
The number and kind of securities purchasable upon the exercise of this Warrant
and the Warrant Price shall be subject to adjustment from time to time after the
date hereof upon the happening of certain events, as follows:

         8.1      Adjustments.  The number of Shares purchasable upon the
exercise of this Warrant shall be subject to adjustments as follows:

         (a) In case the  Company  shall (i) pay a dividend  on Common  Stock in
Common  Stock or  securities  convertible  into,  exchangeable  for or otherwise
entitling a holder  thereof to receive  Common  Stock,  (ii)  declare a dividend
payable in cash on its Common Stock and at substantially the same time offer its
shareholders  a right to purchase  new Common Stock (or  securities  convertible
into,  exchangeable  for or other  entitling a holder  thereof to receive Common
Stock) from the proceeds of such  dividend  (all Common Stock so issued shall be
deemed to have been issued as a stock dividend), (iii) subdivide its outstanding
shares of Common  Stock into a greater  number of shares of Common  Stock,  (iv)
combine its  outstanding  shares of Common Stock into a smaller number of shares
of Common Stock, or (v) issue by reclassification of its Common Stock any shares
of Common  Stock of the Company,  the number of shares of Common Stock  issuable
upon  exercise of the Warrants  immediately  prior  thereto shall be adjusted so
that the  holders  of the  Warrants  shall be  entitled  to  receive  after  the
happening of any of the events described above that number and kind of shares as
the holders would have received had such Warrants be converted immediately prior
to the  happening  of such event or any record date with  respect  thereto.  Any
adjustment made pursuant to this subdivision shall become effective  immediately
after the close of business  on the record date in the case of a stock  dividend
and shall  become  effective  immediately  after the  close of  business  on the
effective  date in the  case  of a  stock  split,  subdivision,  combination  or
reclassification.

         (b)  In  case  the  Company   shall   distribute,   without   receiving
consideration  therefor,  to all holders of its Common  Stock  evidences  of its
indebtedness  or assets  (excluding  cash  dividends  other than as described in
Section  (8)(a)(ii)),  then in such case,  the number of shares of Common  Stock
thereafter  issuable  upon  exercise  of the  Warrants  shall be  determined  by
multiplying  the  number of shares of Common  Stock  theretofore  issuable  upon
exercise of the Warrants,  by a fraction,  of which the  numerator  shall be the
closing  bid  price  per  share  of  Common  Stock on the  record  date for such
distribution, and of which the denominator shall be the closing bid price of the
Common Stock less the then fair value (as  determined  by the Board of Directors
of the Company,  whose  determination shall be conclusive) of the portion of the
assets or evidences of  indebtedness  so distributed  per share of Common Stock.
Such adjustment  shall be made whenever any such  distribution is made and shall
become  effective  immediately  after the record date for the  determination  of
stockholders entitled to receive such distribution.

         (c) Any  adjustment  in the number of shares of Common  Stock  issuable
hereunder  otherwise  required to be made by this  Section 8 will not have to be
adjusted  if such  adjustment  would not  require an increase or decrease in one
percent  (1%) or more in the  number of shares of  Common  Stock  issuable  upon
exercise of the Warrant.  No adjustment in the number of Shares purchasable upon
exercise  of this  Warrant  will be made for the  issuance  of shares of capital
stock  to  directors,  employees  or  independent  contractors  pursuant  to the
Company's or any of its  subsidiaries'  stock option,  stock  ownership or other
benefit plans or  arrangements  or trusts related thereto or for issuance of any
shares of Common Stock  pursuant to any plan providing for the  reinvestment  of
dividends or interest payable on securities of the Company and the investment of
additional optional amounts in shares of Common Stock under such plan.

         (d)  Whenever the number of shares of Common  Stock  issuable  upon the
exercise of the Warrants is adjusted, as herein provided the Warrant Price shall
be adjusted (to the nearest cent) by multiplying such Warrant Price  immediately
prior to such  adjustment  by a fraction,  of which the  numerator  shall be the
number of shares of Common Stock issuable upon the exercise of each share of the
Warrants  immediately  prior to such  adjustment,  and of which the  denominator
shall be the number of shares of Common Stock issuable immediately thereafter.

         (e) The Company  from time to time by action of its Board of  Directors
may  decrease  the  Warrant  Price by any  amount  for any period of time if the
period is at least 20 days,  the decrease is  irrevocable  during the period and
the Board of Directors of the Company in its sole  discretion  shall have made a
determination  that such decrease  would be in the best interest of the Company,
which determination shall be conclusive. Whenever the Warrant Price is decreased
pursuant to the preceding sentence,  the Company shall mail to holders of record
of the  Warrants a notice of the decrease at least 15 days prior to the date the
decreased Warrant Price takes effect,  and such notice shall state the decreased
Warrant Price and the period it will be in effect.

         8.2 Mergers. Etc. In the case of any (i) consolidation or merger of the
Company  into any entity  (other  than a  consolidation  or merger that does not
result  in  any   reclassification,   exercise,   exchange  or  cancellation  of
outstanding shares of Common Stock of the Company),  (ii) sale, transfer,  lease
or  conveyance  of all or  substantially  all of the assets of the Company as an
entirety or substantially  as an entirety,  or (iii)  reclassification,  capital
reorganization  or change of the Common Stock (other than solely a change in par
value,  or from par  value to no par  value),  in each case as a result of which
shares of Common  Stock  shall be  converted  into the right to  receive  stock,
securities or other property (including cash or any combination  thereof),  each
holder of Warrants then outstanding  shall have the right thereafter to exercise
such  Warrant  only  into the kind and  amount  of  securities,  cash and  other
property receivable upon such consolidation,  merger,  sale,  transfer,  capital
reorganization or reclassification by a holder of the number of shares of Common
Stock of the  Company  into  which  such  Warrants  would  have  been  converted
immediately  prior  to  such  consolidation,  merger,  sale,  transfer,  capital
reorganization or reclassification,  assuming such holder of Common Stock of the
Company (A) is not an entity with which the Company  consolidated  or into which
the  Company  merged or which  merged  into the Company or to which such sale or
transfer was made, as the case may be ("constituent entity"), or an affiliate of
a constituent  entity, and (B) failed to exercise his or her rights of election,
if any,  as to the  kind or  amount  of  securities,  cash  and  other  property
receivable upon such  consolidation,  merger, sale or transfer (provided that if
the kind or amount of securities,  cash and other property  receivable upon such
consolidation, merger, sale or transfer is not the same for each share of Common
Stock of the Company held immediately prior to such consolidation,  merger, sale
or transfer by other than a  constituent  entity or an affiliate  thereof and in
respect  of  which  such  rights  or  election  shall  not have  been  exercised
("non-electing  share"),  then for the purpose of this  Section 8.2 the kind and
amount  of   securities,   cash  and  other   property   receivable   upon  such
consolidation,  merger,  sale or  transfer by each  non-electing  share shall be
deemed to be the kind and amount so  receivable  per share by a plurality of the
non-electing shares). If necessary,  appropriate adjustment shall be made in the
application  of the  provision  set forth  herein with respect to the rights and
interests  thereafter of the holder of Warrants,  to the end that the provisions
set forth herein shall thereafter  correspondingly be made applicable, as nearly
as may reasonably be, in relation to any shares of stock or other  securities or
property  thereafter  deliverable  on the  exercise of the  Warrants.  The above
provisions shall similarly apply to successive  consolidations,  mergers, sales,
transfers, capital reorganizations and reclassifications.  The Company shall not
effect any such  consolidation,  merger,  sale or  transfer  unless  prior to or
simultaneously with the consummation thereof the successor company or entity (if
other than the  Company)  resulting  from such  consolidation,  merger,  sale or
transfer assumes, by written instrument, the obligation to deliver to the holder
of Warrants such shares of stock,  securities  or assets as, in accordance  with
the  foregoing  provision,  such holder may be  entitled  to receive  under this
Section 8.2.

         8.3      Statement of Warrants.      Irrespective of any adjustments in
the Warrant Price of the number or kind of shares purchasable upon the exercise
of this Warrant, this Warrant certificate or certificates hereafter issued may
continue to express the same price and number and kind of shares as are stated
in this Warrant.

         Section 9.  Fractional  Shares.  Any fractional  shares of Common Stock
issuable  upon  exercise of the Warrants  shall be rounded to the nearest  whole
share or, at the  election  of the  Company,  the  Company  shall pay the holder
thereof an amount in cash equal to the closing bid price thereof. Whether or not
fractional shares are issuable upon exercise shall be determined on the basis of
the total number of Warrants the holder is at the time exercising and the number
of shares of Common Stock issuable upon such exercise.

         Section  10. No  Rights as  Stockholders:  Notices  to  Warrantholders.
Nothing  contained in this Warrant  shall be  construed as  conferring  upon the
Warrantholder  or its  transferees  any rights as a stockholder  of the Company,
including the right to vote, receive dividends,  consent or receive notices as a
stockholder  with  respect to any meeting of  stockholders  for the  election of
directors of the Company or any other matter. If, however,  at any time prior to
5:00 p.m., New York City time, on January , 2004,  (the  "Expiration  Time") and
prior to the exercise of this Warrant, any of the following events shall occur:

         (a)      any action which would require an adjustment pursuant to
Section 8.1; or
         (b)      a dissolution, liquidation or winding up of the Company or any
consolidation, merger or sale of its property, assets and business as an
entirety; then in any one or more of said events, the Company shall give notice
in writing of such event to the Warrantholder at least 10 days prior to the date
fixed as a record date or the date of closing the transfer books for the
determination  of the shareholders entitled to any relevant dividend,

distribution,  subscription rights, or other rights or for the effective date of
any dissolution, liquidation of winding up or any merger, consolidation, or sale
of substantially  all assets,  but failure to mail or receive such notice or any
defect  therein or in the mailing  thereof  shall not affect the validity of any
such action  taken.  Such notice shall specify such record date or the effective
date, as the case may be.

         Section 11.       Successors.  All the covenants and provisions of this
Warrant by or for the benefit of the Company or the Warrantholder shall bind and
inure to the benefit of their respective successors and permitted assigns
hereunder.

         Section 12.       Applicable Law.  This Warrant shall be construed and
enforced in accordance with and the rights of the parties shall be governed by
the laws of the State of New York.

         Section 13.       Benefits of this Agreement.  Nothing in this Warrant
shall be construed to give to any person or corporation other than the Company
and the Warrantholder any legal or equitable right, remedy or claim under this
Warrant, and this Warrant shall be for the sole and exclusive benefit of the
Company and the Warrantholder.

         Section 14. Piggy-back Registration Rights. If at any time prior to the
expiration of the warrant the Company shall propose to prepare on its own behalf
or  on  behalf  of  any  of  its  stockholders   (other  than  Warrantholder)  a
registration statement in connection with an underwritten public offering of any
equity securities of the Company,  the Company shall give Warrantholder  written
notice at least 20 days before the anticipated  filing date of such registration
statement.  Should  Warrantholder  desire to have any of the Shares  included in
such registration statement Warrantholder shall so advise the Company in writing
no later than 15 days after the  Company's  notice is given,  setting  forth the
number or amount of Shares  which  Warrantholder  requests to be included in the
registration  statement,  and the Company shall include the securities specified
in such  request  in such  registration  statement  and keep  such  registration
statement in effect and maintain  compliance with each federal and state law and
regulation as set forth herein. The Company may, at its option, require that the
amount of Shares offered for sale by  Warrantholder  pursuant to this Section 14
be decreased if, in the opinion of the Company's  investment  banking firm, such
reduction is necessary in order to permit the orderly  distribution  and sale of
the  securities  being  offered.  If the Company shall require such a reduction,
Warrantholder shall have the right to withdraw from the offering.

         Section 15.       Definitions.

         "Common Stock" shall mean (i) Common Stock, $.0001 par value per share,
of the Company and (ii) any other security purchasable upon the exercise of this
Warrant upon the happening of certain events.

         IN WITNESS  WHEREOF,  the parties  have caused this  Warrant to be duly
executed, all as of the day and year first above written.

                                            SWISSRAY INTERNATIONAL , INC.

                                            By:_/s/Ruedi G. Laupper___
                                  Ruedi G. Laupper its Chairman and President

SRMIDJAN99.SUB   Z/5

<PAGE>

                                       SWISSRAY INTERNATIONAL, INC.

                                           ELECTION TO EXERCISE

SWISSRAYINTERNATIONAL, INC.
c/o Gary B. Wolff, Esq.
747 Third Avenue - 25th Floor
New York, NY 10017

The  undersigned  hereby  irrevocably  elects to exercise  the right of purchase
represented by the within Warrant for, and to purchase thereunder, _______shares
of  Common  Stock  (the  "Share")  provided  for  therein,   and  requests  that
certificates for the Shares be issued in the name of:*

Name:___________________________________________________________
Address:_________________________________________________________
Social Security No.________________________________________________
or Tax ID Number:_________________________________________________

and, if such number of Shares shall not be all of the Shares  purchasable  under
the  Warrant,  that a new  Warrant  certificate  for the  balance  of the Shares
purchasable  under  the  within  Warrant  be  registered  in  the  name  of  the
undersigned  warrantholder  or his Assignee* as indicated below and delivered to
the address stated below:

Dated:________, 19___

Name of Warrantholder of
Assignee (Please Print)_____________________________________________

Address:_________________________________________________________

Signature:________________________________________________________

Signature Guaranteed:______________________________________________
                                    Signature of Guarantor

--------------------
*        The Warrant contains restrictions on sale, assignment or transfer.

**       Note:  The above signature must correspond with the name as written on
the face of this Warrant certificate in every particular, without alteration or
enlargement or any change whatever, unless this warrant has been assigned.

                               FORM OF ASSIGNMENT

                 (To be signed only upon assignment of Warrant)*

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

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

----------------------------------------------------------------
(Name and Address of Assignee must be Printed or Typewritten)

the   within   Warrant,   hereby   irrevocably   constituting   and   appointing
_________Attorney  to transfer  said Warrant on the books of the  Company,  with
full power of substitution in the premises.

Dated:______________, 19____

                                            ________________________________**
                                            Signature of Registered Holder

Signature Guaranteed: ________________________________
                                    Signature of Guarantor

--------------------
*        The Warrant contains restrictions on sale, assignment or transfer.

**       Note:  The signature of this assignment must correspond with the name
as it appears upon the face of the Warrant certificate in every particular,
without alteration or enlargement or any change whatever.

<PAGE>

                       AMENDMENT TO SUBSCRIPTION AGREEMENT

THIS AMENDMENT TO SUBSCRIPTION AGREEMENT ("Amendment") is made as of March 17,
1999, by and between DOMINION CAPITAL FUND, LTD. ("Purchaser") and SWISSRAY
INTERNATIONAL, INC. (the "Company"), (Collectively the "Parties").

WHEREAS,  the Parties  entered into a Subscription  Agreement  dated on or about
September 28, 1998, relating to a Regulation D private placement offering in the
aggregate  amount of $2,940,000 (the  "Offering") of which Purchaser  subscribed
for $1,440,000 of the Company's convertible debentures; and

WHEREAS,  in connection  with said  Offering,  the parties desire to correct and
amend  a  certain  section  in the  Subscription  Agreement  which  contained  a
typographical  error and was  overlooked by the Parties at the time the Offering
closed.

NOW  THEREFORE,  in  consideration  of the  covenants and  agreements  contained
herein, the parties agree to amend the Subscription Agreement as follows:

         AMENDMENT.

         A.  Section 1, SUBSCRIPTION, Subsection (a) is hereby corrected and
amended to read as follows:

         The  undersigned  hereby  irrevocably  subscribes  for  and  agrees  to
         purchase $1,440,000 of the Company's  Debentures.  The Debentures shall
         pay an 5% cumulative  interest payable  annually,  in cash or in freely
         trading Common Stock of the Company,  at the Company's  option,  at the
         time of each conversion.  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  dividend  by the then  applicable
         Market Price,  as of the interest  payment date.  "Market  Price" shall
         mean 82% of the 10-day  average  closing  bid  price,  as  reported  by
         Bloomberg,  LP, for the ten (10)  consecutive  trading days immediately
         preceding  the date of  conversion  (the  "Conversion  Price").  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
         Purchaser, or per Purchaser'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 4(d). The closing shall be deemed
         to have  occurred on the date the funds are  received by the Company or
         its designated attorney (the "Closing Date").

          B. Section 4, TERMS OF CONVERSION, Subsection (d)(i) Conversion
          Rate is hereby corrected and amended to read as follows:

          Purchaser  is entitled,  at its option,  to convert the face amount of
          each Debenture,  plus accrued interest,  anytime following the Closing
          Date, at 82% of the 10 day average  closing bid price,  as reported by
          Bloomberg,   LP  for  the  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.

         C.  SECTION 5 LIMITS ON AMOUNT OF CONVERSION AND OWNERSHIP is hereby
         corrected and amended to read as follows:

         The  Purchaser is limited in the amount of Debenture it may convert and
         own. Other than the mandatory  conversion  provisions contained in this
         Agreement,  which are not limited by the following,  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  Purchaser be
         entitled  to convert  any  Debentures  to the extent  that,  after such
         conversion,   the  sum  of  the  number  of  shares  of  Common   Stock
         beneficially  owned by the  Purchaser  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
         unexercised  Warrants),  and (2) the  number of shares of Common  Stock
         issuable upon the  conversion of the  Debentures  with respect to which
         the  determination  of this  proviso  is being  made,  would  result in
         beneficial  ownership by the Purchaser 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 Purchaser 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
         Purchaser further agrees that if the Purchaser 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 process any
         conversions that would result in beneficial  ownership by the Purchaser
         and its  affiliates  of more  than  4.9% of the  outstanding  shares of
         Common Stock of the Company.

II.      EFFECTIVE DATE/PRIOR NEGOTIATIONS.

         This amendment shall relate back to and be effective as of the closing
date of the Offering.  This amendment is intended to correct and amend the
Subscription Agreement to conform to the Parties understanding of the terms of
the offering as negotiated by the Parties.

III.     FACSIMILE AS ORIGINAL.

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

         SWISSRAY INTERNATIONAL, INC.

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

         DOMINION CAPITAL FUND, LTD.

         --------------------------<TABLE>
<CAPTION>
Name                                       Dated           Amount         Maturity Date
---------------------------------------    ------------    ----------     ---------------
<S>                                        <C>             <C>            <C>
Dominion Investment Fund LLC.*             Mar. 3, 1999    $   555,000    May 31,1999
Sovereign Partners LP.                     Mar. 3, 1999    $   555,000    May 31,1999
</TABLE>

*    This document has been filed.
<PAGE>
                                 PROMISSORY NOTE

$555,000                                                  Hochdorf, Switzerland
                                                              March 3, 1999

         FOR VALUE RECEIVED, the undersigned,  SWISSRAY  INTERNATIONAL,  INC., a
New York corporation,  (the "Company" or "Borrower"),  hereby promises to pay to
the order of Dominion  Investment Fund LLC (the ?Lender?),  the principal amount
of $555,000 in lawful money of the United States of America in same day or other
immediately  available funds, together with interest at the rate hereinafter set
forth, payable on or before May 31, 1999.

         Interest  on the  principal  balance  of this  Note  from  time to time
outstanding  and unpaid shall be computed on the basis of a 360-day year for the
actual number of days elapsed at a simple interest rate per annum equal to eight
percent (8%) commencing on March 3, 1999.

         Principal and all accrued  interest,  at the rate of eight percent (8%)
per annum,  shall be payable  without the  necessity for demand or notice on May
31, 1999.  All payments of principal and interest shall be paid by wire transfer
per the written instructions of Lender. As further  consideration for this loan,
Borrower  agrees to issue to Lender a Warrant to purchase  ______  shares of the
Borrower?s common stock, par value $0.01 per share, exercisable (for a period of
5 years commencing with the date of closing) at 125% of the average five (5) day
closing bid price of the  Company?s  common  stock for the five (5) trading days
immediately  preceding  March 3,  1999,  but in no event  less  than  $1.00  per
share.on day of closing for a period of five (5) years.

         The Borrower, in Borrower?s sole discretion, may extend the term of
this Note for an additional sixty (60) day period at an additional 2% interest
rate per annum.  Borrower must send written notice of its election to extend the
term of this Note.  Said written notice must be sent by facsimile pursuant to
the notice provisions of this Note, on or before May 28, 1999.  Borrower shall
not be entitled to extend the term of this Note beyond July 30, 1999.

         In the event the Promissory Note is not paid in full on or before its
due date, then in such event the terms of the Contingent Subscription Agreement,
Debenture and Registration Rights Agreement, which are incorporated herein by
reference and made a part hereof,  shall apply and control. The ?Due Date? of
this Note shall mean the later of May 31., 1999 or July 30, 1999, if the Company
exercise its right to extend the May 31, 1999, due date.

         The  obligations  of Borrower  under this Note are secured by a lien on
inventory  and by a second  mortgage on real estate  owned by the  Borrower  and
located in Switzerland  (the  ?Security?).  The Security is being provided as an
inducement  for Lender to enter into this loan  transaction  and so as to secure
Lender position in prior  financings in which Lender have been unable to convert
their debentures into shares of the Borrower?s common stock, in part, due to the
absence of an established  trading market for a significant  period of time. The
Security shall remain in effect  throughout the term of this loan so long as any
portion of the Borrower?s  indebtedness  to Lender  continues in effect and such
Security shall be reduced utilizing the following formula:

A. Reducing the Borrower?s  indebtedness  (evidenced by  convertible  debentures
aggregating  $14,750,000*:  when such  $14,750,000*  indebtedness  is reduced to
$10,000,000  then (i) 25% of secured  inventory  shall be released from lien and
(ii) 25% of second  mortgage on land and  building  shall  similarly be released
from  lien  (*Inclusive  of  $1,080,000  represented  by  promissory  notes  and
contingently convertible into debentures);

B.  For  each  further  reduction  of an  additional  $2,500,000  in  Borrower?s
indebtedness  from  $10,000,000  to  $5,000,000  releases  from  lien  shall  be
accomplished  on a pro-rata  basis in the same manner as  indicated  in A above,
i.e., each $2,500,000  reduction in indebtedness  shall result in release of 25%
of each lien amount;  and C. When indebtedness is reduced to $5,000,000 or less,
then the second  mortgage on land and building shall be released in its entirety
and inventory collateral shall continue to be reduced on a pro-rata basis in the
same manner as indicated in paragraphs designated A. and B. above.

         Borrower hereby waives presentment, protest, notice of protest and
notice of dishonor of this Note.  The non-exercise by the Lender of any rights
hereunder in any particular instance shall not constitute a waiver thereof in
that or any other subsequent instance.  The Borrower shall not create any class
of indebtedness that ranks senior to this Note.

         Nothing contained herein shall be deemed to establish or require the
payment of a rate of interest in excess of the maximum rate permitted by
applicable law.  In the event that the rate of interest required to be paid
hereunder exceeds the maximum rate permitted by such law, such rate shall
automatically be reduced to the maximum rate permitted by such law.

         The  Borrower  and any  endorsers  hereof,  for  themselves  and  their
respective  representatives,  successors  and  assigns  (except as  specifically
provided in the Loan Agreement)  expressly waive presentment,  demand,  protest,
notice  of  dishonor,  notice of  non-payment,  notice  of  maturity,  notice of
protest,  diligence in collection, and the benefit of any applicable exemptions,
including, but not limited to, exemptions claimed under insolvency laws.

         SECURED  CREDITORS.  Borrower  represents and warrants that it does not
have any  outstanding  security  interests in the inventory or real estate other
than those set forth in Schedule A attached hereto and made a part hereof and it
shall not create or incur any  indebtedness  or  obligation  for borrowed  money
except for  indebtedness  with  respect to trade  obligations  and other  normal
accruals in the ordinary  course of business not yet due and payable,  and shall
not grant any other security  interests until payment and performance in full of
the obligations  hereunder,  unless Lender  otherwise  consents in writing which
consent shall not be unreasonably  withheld.  Borrower represents,  warrants and
covenants  that the  Collateral  and  proceeds  are not subject to any  security
interest, lien, prior assignment,  or other encumbrance of any nature whatsoever
except for the security interest created by this Note other than as indicated in
attached Schedule A.

         AFFIRMATIVE COVENANTS OF BORROWER.  Borrower covenants and agrees that
from the date hereof until payment and performance in full of the obligations
hereunder, unless Lender otherwise consents in writing:

         (a) Use of Proceeds.  The proceeds disbursed under the Note shall be
used primarily for working capital.

         (b) Borrower represents and warrants that there are no actions,  suits,
investigations  or  proceedings  pending or threatened  against or affecting the
validity or enforceability  of this Note and there are no outstanding  orders or
judgments of any court or governmental  authority or awards of any arbitrator or
arbitration  board  against  the  Borrower  excepting  for  such  law  suits  or
proceedings  as are indicated and  summarized in Borrower?s  Form 10K for fiscal
year ended June 30, 1998.

DEFAULT.  If any of the following events occur (a ?default?), the terms of the
Contingent Subscription Agreement, Debenture and Registration Rights Agreement
which are incorporated herein by reference and made a part hereof, shall apply
and control:

         (a)      Borrower fails to pay when due any principal or interest under
this Note;

         (b)      Borrower fails to observe or perform any covenant or agreement
set forth in this Note or in any instrument, document or agreement concerning
the Collateral;

         (c)      Borrower makes a general assignment for the benefit of its
creditors, files or become the subject of a petition in bankruptcy, for an
arrangement with its creditors or for reorganization under any federal or state
bankruptcy or other insolvency law;

         (d)      Borrower files or becomes the subject of a petition for the
appointment of a receiver, custodian, trustee or liquidator of the party or of
all or substantially all of its assets under any federal or state bankruptcy or
other insolvency law;

         (e)      Borrower is voluntarily or involuntarily terminated or
dissolved;

         (f) Borrower or any accommodation  maker,  endorser or guarantor enters
into  any  merger  or  consolidation,  or  sale,  lease,  liquidation  or  other
disposition of all or substantially all of its assets or any transaction outside
the  ordinary  course of its  business  or for less than fair  consideration  or
substantially equivalent value without Lender?s prior written consent;

         (g)      Any judgment is entered against Borrower or any attachment
upon or garnishment of any property of Borrower is issued which materially
effects Borrower?s ability to repay the Promissory Note; or

         (h)      Any representation or statement made herein or any other
written representation or statement made or furnished to Lender by Borrower was
materially incorrect or misleading at the time it was made or furnished.

LITIGATION.

          (a) Forum Selection and Consent to Jurisdiction.  Any litigation based
on or arising out of, under,  or in connection  with, this Promissory Note shall
be brought and maintained exclusively in the courts of Switzerland.  The parties
hereby  expressly and  irrevocably  submit to the  jurisdiction of the state and
federal  courts of  Switzerland  for the purpose of any such  litigation  as set
forth above and  irrevocably  agree to be bound by any final  judgment  rendered
thereby in connection with such  litigation.  The Borrower  further  irrevocably
consents to the service of process by registered mail,  postage  prepaid,  or by
personal  service within or without  Switzerland.  The Borrower 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 Borrower 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 Borrower hereby irrevocably waives such immunity in
respect of its obligations under this agreement and the other loan documents.

         (b) Waiver of Jury Trial. The Lender and the Borrower 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,
written  statements  or  actions  of the Lender or the  Borrower.  The  Borrower
acknowledges  and agrees that it has received full and sufficient  consideration
for

                                        7

<PAGE>

this provision and that this  provision is a material  inducement for the Lender
entering into this agreement.

MISCELLANEOUS.

         (a)      All pronouns and any variations thereof used herein shall be
deemed to refer to the masculine, feminine, impersonal, singular or plural, as
the identity of the person or persons may require.

         (b)      Neither this Promissory Note nor any provision hereof shall be
waived, modified, changed, discharged, terminated, revoked or canceled, except
by an instrument in writing signed by the party effecting the same against whom
any change, discharge or termination is sought.

         (c)      Notices required or permitted to be given hereunder shall be
in writing and shall be deemed to be sufficiently given when personally
delivered or sent by registered mail, return receipt requested, addressed:
(i) if to the Borrower, c/o Gary B. Wolff, Esq. 747 Third Avenue , 25th Floor,
NY, NY 10017 with a facsimile copy sent on the same date and (ii) if to Lender
c/o Joseph B. LaRocco, Esq. 49 Locust Avenue, Suite 107, New Canaan, CT 06840.

         (d) This Promissory  Note shall be enforced,  governed and construed in
all  respects  in  accordance  with the laws of  Switzerland,  as such  laws are
applied by  Switzerland  courts to agreements  entered into, and to be performed
in,  Switzerland by and between  residents of Switzerland,  and shall be binding
upon the undersigned,  the undersigned's heirs,  estate, legal  representatives,
successors  and  assigns  and shall  inure to the  benefit  of the  Lender,  its
successors and assigns.  If any provision of this  Promissory Note is invalid or
unenforceable  under any applicable  statue or rule of law, then such provisions
shall be deemed  inoperative  to the extent that it may conflict  therewith  and
shall be deemed  modified  to  conform  with such  statute  or rule of law.  Any
provision hereof that may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision hereof.

         THE BORROWER  ACKNOWLEDGES  THAT THE  TRANSACTIONS  IN CONNECTION  WITH
WHICH THIS NOTE WAS EXECUTED AND  DELIVERED  AND WHICH ARE  CONTEMPLATED  BY THE
TERMS OF THE  AGREEMENT  ARE,  IN ALL CASES,  COMMERCIAL  TRANSACTIONS;  AND THE
BORROWER HEREBY EXPRESSLY WAIVES ANY AND ALL  CONSTITUTIONAL  RIGHTS IT MAY HAVE
AS NOW  CONSTITUTED OR HEREAFTER  AMENDED,  WITH REGARD TO NOTICE,  ANY JUDICIAL
PROCESS AND ANY AND ALL OTHER RIGHTS IT MAY HAVE,  AND THE LENDER MAY INVOKE ANY
PREJUDGMENT REMEDY AVAILABLE TO IT OR ITS SUCCESSORS OR ASSIGNS.

                          SWISSRAY INTERNATIONAL, INC.

                        By/s/Ruedi G. Laupper its Chairman___
                           Ruedi G. Laupper its Chairman
                           and President duly authorized

                                   SCHEDULE A

         In  addition to the  security  interest  created by this note,  a prior
security interest has been created by virtue of notes dated December 11, 1998 in
accordance with which borrower  received gross proceeds  aggregating  $1,080,000
one-half of which was received from Dominion  Capital Fund, Ltd. and one-half of
which was received from Sovereign Partners Limited Partnership.

                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION  RIGHTS AGREEMENT,  dated as of March 3, 1999, (?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 Contingent
Subscription Agreement,  dated as of March 3, 1999, between the Initial Investor
and the Company (the ?Subscription Agreement?),  the Company has agreed to issue
and sell to the Initial  Investor 5% 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 and  Warrants to purchase  the
Common Stock  (collectively 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:

         I.       Definitions.

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

         (i)      ?Due Date? means the later of May 31, 1999, or July 31, 1999,
if the Company exercises its option to extend the May 31, 1999, due date on the
promissory note dated March 3, 1999.

         (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 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  forty-five  (45)  calendar  days  after  the Due  Date,  a
Registration  Statement  covering a sufficient  number of shares of Common Stock
for the Initial  Investors  into which the Warrants  would be exercised  and the
$1,110,000 of Debentures,  plus accrued interest, in the total offering would be
convertible.  In the  event  the  Registration  Statement  is not  filed  within
forty-five (45) calendar days after the Due 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 forty-five (45) calendar days following the
Due Date that the  Registration  Statement  is not filed.  The  Investor is also
granted  Piggy-back  registration  rights  on any other  Registration  Statement
filings made by the Company exclusive of Registration Statements on Form S-8 and
so long as permissible  under the Securities  Act. 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 such form as is
applicable  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 which new  Registration  Statement shall be filed within 45 days. 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.

         The Company  acknowledges  that its failure to file with the SEC,  said
Registration Statement no later than forty-five (45) calendar days after the Due
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 filed by the Company pursuant to Section
2(a) hereof is not declared  effective  within one hundred twenty (120) calendar
days following the Due Date, 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,
or portion  thereof,  following the one hundred twenty (120) calendar day period
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  within  said one
                  hundred  twenty (120)  calendar day period  following  the Due
                  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 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 forty-five (45) days
of the Due Date,  a  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  such  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) one hundred twenty (120) days after
the Due 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 Due 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 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
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 The Nasdaq Stock
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 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  Investor?s   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?) 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  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
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. 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 by fax and mail 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
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.

         (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)

                       8

<PAGE>

         IN WITNESS WHEREOF,  the parties have caused this  Registration  Rights
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: ____________________________________
                           Name: Ruedi G. Laupper
                           Title: Chairman and President

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

                           By: ____________________________________
                           Name:
                           Title:

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