Document:

<TABLE>
<CAPTION>
Name                                       Dated           Amount         Maturity Date     Deb. No.
---------------------------------------    ------------    ----------     ---------------   -------
<S>                                        <C>             <C>            <C>               <C>
Parkdale LLC.*                             Nov 11, 1999    $1,526,000     Nov 11, 2001      LN-1999-101

*    This document has been filed.
</TABLE>

<PAGE>
                                FORM OF DEBENTURE

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

ISSUANCE DATE                                                 November 11, 1999
CONVERTIBLE DEBENTURE DUE                                     November 11, 1999
AMMOUNT   $ 1,526,000                                         Number LN-1999-101

     FOR VALUE RECEIVED,  SWISSRAY  INTERNATIONAL,  INC., a New York corporation
     (the  "Company"),  hereby  promises to pay Parkdale  LLC, LLC or registered
     assigns (the  "Holder") on November 11, 2001,  (the "Maturity  Date"),  the
     principal  amount  of One  Million  Five  Hundred  Twenty-Six  Thousand  ($
     1,526,000)  U.S., and to pay interest on the principal  amount  hereof,  in
     such  amounts,  at such  times  and on such  terms  and  conditions  as are
     specified herein.  The purchase price for this Debenture shall be deemed to
     have been  delivered to the Company upon  non-payment of the full amount of
     principal  and  interest due on the  Promissory  Note dated August 11, 1999
     between  the  Company  and  the  Holder.  The  fully  executed   Contingent
     Subscription  Agreement,  Registration  Rights Agreement and this Debenture
     shall be held by the escrow agent and shall only be delivered to the Holder
     upon  non-payment  of the full amount of principal  and interest due on the
     Promissory  Note on its "Due Date".  The "Due Date" of the Promissory  Note
     shall mean November 11, 1999.

Article 1. Interest

         The Company shall pay interest on the unpaid  principal  amount of this
Debenture (the "Debenture") at the rate of Five Percent (5.0%) per year, payable
at the time of each conversion until the principal amount hereof is paid in full
or has been converted. Interest shall be computed on the basis of a 360 day year
of 12, 30 day months.  Each payment  shall be paid in cash or in freely  trading
Common Stock of the Company,  at the Company's  option. If paid in Common Stock,
the  number of shares of the  Company's  Common  Stock to be  received  shall be
determined by dividing the dollar amount of the interest by the then  applicable
Market Price as of the interest  payment date.  "Market Price" shall mean 80% of
the average of the 10 day closing bid prices,  as reported by Bloomberg,  LP for
the  ten  (10)  consecutive  trading  days  immediately  preceding  the  date of
conversion.  If the interest is to be paid in cash,  the Company shall make such
payment within 5 business days of the date of conversion.  If the interest is to
be paid in Common Stock,  said Common Stock shall be delivered to the Holder, or
per Holder's instructions, within 5 business days of the date of conversion. The
Debentures are subject to automatic  conversion at the end of two years from the
date of issuance at which time all Debentures  outstanding will be automatically
converted  based upon the formula set forth in Section 3.2. The closing shall be
deemed to have occurred on the Due Date as that term is defined above.

Article 2. Method of Payment

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

Article 3.  Conversion

         Section 3.1.  Conversion Privilege

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

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

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

         Section 3.2.  Conversion Procedure.

         (a) Debentures.  Upon receipt by the Company or its designated attorney
of a  facsimile  or original of Holder's  signed  Notice of  Conversion  and the
receipt of the  original  Debenture  to be  converted in whole or in part in the
manner set forth in 3.2(b) below,  the Company shall instruct its transfer agent
to issue one or more  Certificates  representing that number of shares of Common
Stock into which the Debenture is convertible in accordance  with the provisions
regarding  conversion set forth in Exhibit A hereto. The Seller's transfer agent
or attorney  shall act as Registrar  and shall  maintain an  appropriate  ledger
containing the necessary information with respect to each Debenture.

         (b)  Conversion  Procedures.  The face amount of this  Debenture may be
converted  anytime  following the Due Date. Such conversion shall be effectuated
by surrendering to the Company, or its attorney,  this Debenture to be converted
together with a facsimile or original of the signed  Notice of Conversion  which
evidences  Holder's  intention to convert the Debenture  indicated.  The date on
which the Notice of Conversion is effective  ("Conversion Date") shall be deemed
to be the  date  on  which  the  Holder  has  delivered  to the  Company  or its
designated  attorney a facsimile or original of the signed Notice of Conversion,
as long as the original Debenture(s) to be converted are received by the Company
or its designated  attorney within 5 business days thereafter.  Unless otherwise
notified  by the  Company in writing  via  facsimile  the  Company's  designated
attorney is Gary B. Wolff,  Esq.,  747 Third Avenue,  25th Floor,  New York, New
York 10017, (P) 212-644-6446, (F) 212-644-6498.

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

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

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

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

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

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

         In the event the Company does not make delivery of the Common Stock, as
instructed  by Holder,  within 8 business  days after  delivery of this original
Debenture, then in such event the Company shall pay to Holder an amount, in cash
in accordance with the following  schedule,  wherein "No. Business Days Late" is
defined as the number of  business  days  beyond  the 8 business  days  delivery
period.
                                                     Late Payment for Each
                                                      $10,000 of Debenture
No. Business Days Late                               Amount Being Converted
----------------------                               ----------------------
         1                                                $100
         2                                                $200
         3                                                $300
         4                                                $400
         5                                                $500
         6                                                $600
         7                                                $700
         8                                                $800
         9                                                $900
         10                                               $1,000
         >10                                              $1,000 + $200 for each
                                                          Business Day Beyond 10

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

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

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

                  (h) The Company shall at all times reserve and have  available
all Common Stock  necessary to meet  conversion of the Debentures by all Holders
of the entire  amount of  Debentures  then  outstanding.  If, at any time Holder
submits  a Notice  of  Conversion  and the  Company  does  not  have  sufficient
authorized but unissued shares of Common Stock (or alternative  shares of Common
Stock as may be contributed  by  Stockholders)  available to effect,  in full, a
conversion of the Debentures (a "Conversion  Default",  the date of such default
being referred to herein as the "Conversion  Default  Date"),  the Company shall
issue to the Holder all of the shares of Common Stock which are  available,  and
the Notice of Conversion as to any Debentures  requested to be converted but not
converted  (the  "Unconverted  Debentures"),  upon Holder's sole option,  may be
deemed  null and void.  The  Company  shall  provide  notice of such  Conversion
Default ("Notice of Conversion  Default") to all existing Holders of outstanding
Debentures,  by  facsimile,  within three (3) business day of such default (with
the original  delivered by overnight or two day  courier),  and the Holder shall
give notice to the Company by facsimile  within five business days of receipt of
the  original  Notice of  Conversion  Default  (with the  original  delivered by
overnight or two day  courier) of its election to either  nullify or confirm the
Notice of Conversion.
         The  Company  agrees to pay to all  Holders of  outstanding  Debentures
payments for a Conversion Default  ("Conversion Default Payments") in the amount
of  (N/365)  x (.24) x the  initial  issuance  price of the  outstanding  and/or
tendered but not converted  Debentures  held by each Holder where N = the number
of days from the Conversion Default Date to the date (the "Authorization  Date")
that the Company  authorizes  a  sufficient  number of shares of Common Stock to
effect  conversion  of all remaining  Debentures.  The Company shall send notice
("Authorization   Notice")  to  each  Holder  of  outstanding   Debentures  that
additional shares of Common Stock have been authorized,  the Authorization  Date
and the amount of Holder's  accrued  Conversion  Default  Payments.  The accrued
Conversion  Default  shall be paid in cash or shall be  convertible  into Common
Stock at the Conversion Rate, at the Holder's option, payable as follows: (i) in
the event Holder  elects to take such payment in cash,  cash  payments  shall be
made to such Holder of outstanding  Debentures by the fifth day of the following
calendar  month,  or (ii) in the event  Holder  elects to take such  payment  in
stock,  the Holder may convert  such  payment  amount  into Common  Stock at the
conversion  rate set forth in section  4(d) at anytime  after the 5th day of the
calendar  month  following  the  month in which  the  Authorization  Notice  was
received, until the expiration of the mandatory 24 month conversion period.

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

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

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

         (j) The  Holder  is  limited  in the  amount of this  Debenture  it may
convert and own. In no event except (i) with respect to a conversion pursuant to
redemption by the Company or (ii) if there is (a) a public announcement that 50%
or more of the Company is being  acquired,  (b) a public  announcement  that the
Company  is being  merged,  or (c) a change  in  control,  shall  the  Holder be
entitled to convert any  Debentures to the extent that,  after such  conversion,
the sum of (1) the number of shares of Common  Stock  beneficially  owned by the
Holder and its affiliates (other than shares of Common Stock which may be deemed
beneficially  owned  through the  ownership  of the  unconverted  portion of the
Debentures  or any of the Company's  Warrants),  and (2) the number of shares of
Common Stock issuable upon the conversion of the Debentures,  or exercise of any
of the  Company's  Warrants,  with  respect to which the  determination  of this
proviso is being made,  would result in  beneficial  ownership by the Holder and
its  affiliates  of more than 4.99% of the  outstanding  shares of Common  Stock
(after  taking  into  account  the shares to be issued to the  Holder  upon such
conversion).  For purposes of the proviso to the immediately preceding sentence,
beneficial ownership shall be determined in accordance with Section 13(d) of the
Securities  Exchange  Act of 1934,  as  amended  (the  "1934  Act"),  except  as
otherwise provided in clause (1) of such proviso. The Holder further agrees that
if the Holder transfers or assigns any of the Debentures to a party who or which
would not be considered such an affiliate, such assignment shall be made subject
to  the  transferee's  or  assignee's  specific  agreement  to be  bound  by the
provisions of this Section as if such transferee or assignee were a signatory to
the  Subscription  Agreement.  Furthermore,  the  Company  shall not permit such
conversions  that would violate the  provisions of this Section  3.2(j),  unless
amended in writing upon mutual consent of the parties.

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

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

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

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

         Section 3.6.  Restrictions on Transfer.  This  Debenture  has not  been
registered  under  the  Securities  Act  of 1933, as amended, (the "Act") and is
being  issued  under  Section  4(2)  of  the  Act  and  Rule 506 of Regulation D
promulgated under the Act. This Debenture and the Common Stock issuable upon the
conversion thereof may only be offered or sold pursuant to registration under or
an exemption from the Act.

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

Article 4.  Mergers

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

Article 5.  Reports

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

Article 6.  Defaults and Remedies

         Section 6.1. Events of Default. An "Event of Default" occurs if (a) the
Company fails to comply with any of its  agreements  in this  Debenture and such
failure  continues for the period and after the notice  specified below, (b) the
Company  pursuant to or within the meaning of any Bankruptcy Law (as hereinafter
defined): (i) commences a voluntary case; (ii) consents to the entry of an order
for relief against it in an involuntary  case; (iii) consents to the appointment
of a Custodian (as hereinafter defined) of it or for all or substantially all of
its property or (iv) makes a general assignment for the benefit of its creditors
or (v) a court of  competent  jurisdiction  enters an order or decree  under any
Bankruptcy  Law that:  (A) is for relief  against the Company in an  involuntary
case; (B) appoints a Custodian of the Company or for all or substantially all of
its  property or (C) orders the  liquidation  of the  Company,  and the order or
decree remains  unstayed and in effect for 60 days. As used in this Section 6.1,
the term  "Bankruptcy  Law"  means  Title 11 of the  United  States  Code or any
similar  federal or state law for the relief of debtors.  The term "  Custodian"
means any receiver, trustee, assignee,  liquidator or similar official under any
Bankruptcy  Law.  A default  under  clause  (c) above is not an Event of Default
until the  holders  of at least  25% of the  aggregate  principal  amount of the
Debentures  outstanding  notify the Company of such default and the Company does
not cure it within  five (5)  business  days after the  receipt of such  notice,
which must specify the default,  demand that it be remedied and state that it is
a "Notice of Default".

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

Article 7.  Registered Debentures

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

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

         Section 7.3. Registration of Transfer.  Transfers of this Debenture may
be registered on the books of the Company  maintained for such purpose  pursuant
to Section 7.2 above (i.e.,  the Register).  Transfers  shall be registered when
this  Debenture  is  presented  to the Company  with a request to  register  the
transfer  hereof and the Debenture is duly endorsed by the  appropriate  person,
reasonable assurances are given that the endorsements are genuine and effective,
and the Company has received  evidence  satisfactory to it that such transfer is
rightful and in  compliance  with all  applicable  laws,  including tax laws and
state and federal securities laws. When this Debenture is presented for transfer
and duly transferred hereunder, it shall be canceled and a new Debenture showing
the name of the  transferee as the record holder thereof shall be issued in lieu
hereof.  When this  Debenture  is  presented  to the Company  with a  reasonable
request to  exchange it for an equal  principal  amount of  Debentures  of other
denominations,  the  Company  shall make such  exchange  and shall  cancel  this
Debenture and issue in lieu thereof  Debentures  having a total principal amount
equal to this  Debenture in such  denominations  as agreed to by the Company and
Holder.

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

Article 8.  Notices

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

Article 9.  Time

         Where this Debenture authorizes or requires the payment of money or the
performance  of a condition  or  obligation  on a Saturday or Sunday or a public
holiday,  or authorizes or requires the payment of money or the performance of a
condition or obligation within, before or after a period of time computed from a
certain date, and such period of time ends on a Saturday or a Sunday or a public
holiday,  such payment may be made or condition or  obligation  performed on the
next  succeeding  business day, and if the period ends at a specified hour, such
payment may be made or condition  performed,  at or before the same hour of such
next  succeeding  business  day,  with the same  force and  effect as if made or
performed in accordance with the terms of this Debenture. A "business day" shall
mean a day on which  the banks in New York are not  required  or  allowed  to be
closed.

Article 10.  Waivers

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

Article 11.  Rules of Construction

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

Article 12.  Governing Law

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

Article 13.                Litigation

         (a) Forum Selection and Consent to  Jurisdiction.  Any litigation based
thereon,  or arising out of, under, or in connection with, this agreement or any
course of conduct,  course of dealing,  statements  (whether oral or written) or
actions of the Company or Holder shall be brought and maintained  exclusively in
the  courts  of  the  State  of New  York.  The  Company  hereby  expressly  and
irrevocably  submits to the  jurisdiction of the state and federal courts of the
State of New York for the purpose of any such  litigation as set forth above and
irrevocably  agrees  to be bound  by any  final  judgment  rendered  thereby  in
connection with such litigation. The Company further irrevocably consents to the
service of process by registered mail,  postage prepaid,  or by personal service
within or  without  the State of New York.  The  Company  hereby  expressly  and
irrevocably  waives, to the fullest extent permitted by law, any objection which
it may have or hereafter may have to the laying of venue of any such  litigation
brought  in any  such  court  referred  to  above  and any  claim  that any such
litigation has been brought in any  inconvenient  forum.  To the extent that the
Company has or hereafter may acquire any immunity from jurisdiction of any court
or from any legal process (whether  through service or notice,  attachment prior
to judgment, attachment in aid of execution or otherwise) with respect to itself
or its property,  the Company hereby irrevocably waives such immunity in respect
of its obligations under this agreement and the other loan documents.

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

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

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

                                                    SWISSRAY INTERNATIONAL, INC.

                                                     By /s/  Ruedi G. Laupper

                                                  Name:  Ruedi G. Laupper
                                                Title: Chairman and President

<PAGE>

                                    Exhibit A

                              NOTICE OF CONVERSION

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

         The undersigned hereby irrevocably  elects, as of ______________,  199_
to convert $_________________ of the Debentures into Shares of Common Stock (the
"Shares")  of SWISSRAY  INTERNATIONAL,  INC.  (the  "Company")  according to the
conditions   set  forth  in  the   Contingent   Subscription   Agreement   dated
_________________,1999.

Date of Conversion_________________________________________

Applicable Conversion Price_________________________________

Number of Shares Issuable upon this conversion______________

Signature___________________________________________________
                           [Name]

Address_____________________________________________________

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

Phone______________________   Fax___________________________

<PAGE>

                             Assignment of Debenture

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

                  (name, address and SSN or EIN of assignee)

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

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

Date:                               Signed:
                                    (Signature  must  conform in all respects to
                                     name of Holder shown on face of  Debenture)

Signature Guaranteed:EXHIBIT 10.77
                             Subscription Agreement

<TABLE>
<CAPTION>

Name                                  Date                Amount              Signatory
----                                  ----                ------              ---------
<S>                                   <C>              <C>
Greenfield Investment Consultants *   Dec. , 1999      $  250,000

Striker Capital Ltd.                  Dec. , 1999      $  750,000

</TABLE>

*    This document has been filed.

<PAGE>

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

                          SWISSRAY INTERNATIONAL, INC.

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

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

                          Maximum Offering: $1,000,000

   This offering consists of 666,667 shares of Swissray International, Inc.
                                  common stock

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

                             SUBSCRIPTION AGREEMENT

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

                                       1
<PAGE>

                             SUBSCRIPTION PROCEDURES

     A total of 666,667   shares  (the "Shares") of the common stock of SWISSRAY
INTERNATIONAL,  INC., (the  "Company") are being offered in an aggregate  amount
not to exceed $1,000,000. The Shares will be transferable to the extent that any
such  transfer is permitted by law.  This  offering is being made in  accordance
with the exemption from registration under Section 4(2) of the Securities Act of
1933, as amended (the "Act") and Rule 506 of Regulation D promulgated  under the
Act (the "Offering").

     The  Investor   Questionnaire   is  designed  to  enable  the  Investor  to
demonstrate the minimum legal  requirements  under federal and state  securities
laws to purchase the Shares.  The Signature Page for the Investor  Questionnaire
and  the  Subscription  Agreement  contain   representations   relating  to  the
subscription.

     Also  included  is an  Internal  Revenue  Service  Form W-9:  "Request  for
Taxpayer Identification Number and Certification" for U.S. citizens or residents
of the U.S. for U.S. federal income tax purposes only. (Foreign investors should
consult  their tax  advisors  regarding  the need to complete  Internal  Revenue
Service Form W-9 and any other forms that may be required).

     If you are a foreign  person or  foreign  entity,  you may be  subject to a
withholding  tax equal to 30% of any dividends paid by the Company.  In order to
eliminate  or reduce  such  withholding  tax you may submit a properly  executed
I.R.S.  Form 4224  (Exemption  from  Withholding  of Tax on  Income  Effectively
Connected  with the  Conduct of a Trade or  Business  in the  United  States) or
I.R.S. Form 1001 (Ownership  Exemption or Reduced Trade  Certificate),  claiming
exemption from  withholding or eligibility  for treaty benefits in the form of a
lower rate of withholding tax on interest or dividends.

     Payment must be made by wire transfer as provided below:

Immediately  available  funds  should be sent via wire  transfer  to the  escrow
account  stated  below  and  the  completed  subscription  documents  should  be
forwarded to the Escrow Attorney. Your subscription funds will be deposited into
a non-interest bearing escrow account of Joseph B. LaRocco,  Esq., Escrow Agent,
at First Union Bank of  Connecticut,  Stamford,  Connecticut.  In the event of a
termination  of  the  Offering  or  the  rejection  of  this  subscription,  all
subscription funds will be returned without interest.  The wire instructions are
as follows:

                                       2
<PAGE>

     First Union Bank of Connecticut
     Executive Office
     300 Main Street, P. 0. Box 700
     Stamford, CT 06904-0700

     ABA #:         021101108
     Swift #:       FUNBUS33
     Account #:     20000-2072298-4
     Acct. Name:    Joseph B. LaRocco, Esq. Trustee Account

                                       3
<PAGE>

                             SUBSCRIPTION AGREEMENT

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

To:  Swissray International, Inc.

     This Subscription Agreement is made between Swissray  International,  Inc.,
("Company" or "Seller") a New York corporation,  and the undersigned prospective
purchaser  ("Purchaser")  who is subscribing  hereby for the Company's shares of
common  stock  (the  "Shares").  The Shares  being  offered  will be  separately
transferable,  to the extent that any such  transfer is permitted  by law.  This
subscription is submitted to you in accordance with and subject to the terms and
conditions  described in this Subscription  Agreement together with any Exhibits
thereto,  relating to an offering (the  "Offering")  of up to  666,667   Shares.
This Offering is comprised of an offering of the Shares to accredited  investors
in accordance  with the exemption  from  registration  under Section 4(2) of the
Securities  Act of 1933,  as amended (the "Act"),  and Rule 506 of  Regulation D
promulgated under the Act ("Regulation D").

1.   SUBSCRIPTION.

     (a)  The  undersigned  hereby  irrevocably  subscribes  for and  agrees  to
purchase  _________  Shares for  __________.  Joseph B. LaRocco, Esq. shall  act
as  escrow  agent  and  notify  the  Purchaser  when  he has received the signed
Subscription  Agreement  (and  Exhibits  thereto),  signed  Registration  Rights
Agreeent  and  Common  Stock from the Company, at which time the Purchaser shall
wire the Purchase Price to the escrow agent.  The Purchaser  entering  into this
Subscription Agreement shall pay the purchase price for the Shares by delivering
immediately  available  good  funds in United  States  Dollars   per  the   wire
instructions  set  forth  on  page  three  (3)  of  this Subscription Agreement.
Once  the  escrow  agent is in receipt of the Common Stock and Purchase Price he
shall  deliver  the  Common  Stock  to  the  Purchaser  and wire the funds, less
consulting fees and escrow fees, to the Company.  the closing shall be deemed to
have  occurred  on the date the  Purchase Price is  wired to the Company per the
Company's written  instructions (the "Closing Date"),  which  date  the  parties
agree shall be December 13, 1999.

                                       4
<PAGE>

     (b) Upon  receipt by the  Company of the  requisite  payment for the Shares
being  purchased the Shares so purchased will be forwarded by the Company to the
Purchaser  and the  name of such  Purchaser  will be  registered  on the  Shares
transfer  books of the Company as the record  owner of such  Shares.  The Escrow
Agent  shall not be liable for any action  taken or omitted by him in good faith
and in no event shall the Escrow Agent be liable or  responsible  except for the
Escrow Agent's own gross negligence or willful misconduct.  The Escrow Agent has
made no  representations  or warranties in connection with this  transaction and
has not been involved in the  negotiation  of the terms of this Agreement or any
matters relative thereto.  Seller and Purchaser each agree to indemnify and hold
harmless the Escrow Agent from and with respect to any suits, claims, actions or
liabilities arising in any way out of this transaction  including the obligation
to defend any legal action  brought which in any way arises out of or is related
to this Agreement. The Escrow Agent is not rendering securities advice to anyone
with respect to this  proposed  transaction;  nor is the Escrow Agent opining on
the compliance of the proposed transaction under applicable securities law.

2.   REPRESENTATIONS AND WARRANTIES.

     The  undersigned  hereby  represents  and warrants to, and agrees with, the
Company as follows:

     (a) The  undersigned  has been  furnished  with, and has carefully read the
applicable form of  Registration  Rights  Agreement  annexed hereto as Exhibit A
(the "Registration Rights Agreement"),  and is familiar with and understands the
terms of the  Offering.  With respect to tax and other  economic  considerations
involved in his investment,  the undersigned is not relying on the Company.  The
undersigned  has  carefully  considered  and has, to the extent the  undersigned
believes  such   discussion   necessary,   discussed   with  the   undersigned's
professional legal, tax, accounting and financial advisors the suitability of an
investment  in the Company,  by  purchasing  the Shares,  for the  undersigned's
particular tax and financial  situation and has  determined  that the investment
being made by the undersigned is a suitable investment for the undersigned.

     (b) The undersigned  acknowledges  that all documents,  records,  and books
pertaining to this investment which the undersigned has requested  includes Form
10-K for the  fiscal  year  ended  June 30,  1999 and  Forms  10-Q for the three
preceding  quarters ended (the "Disclosure  Documents") have been made available
for  inspection  by  the  undersigned  or  the  undersigned  has  access  to the
Disclosure Documents.

     (c) The  undersigned  has had a reasonable  opportunity to ask questions of
and receive answers from a person or persons acting on behalf of

                                       5
<PAGE>

the Company concerning the Offering and all such questions have been answered to
the full satisfaction of the undersigned.

     (d) The undersigned will not sell or otherwise  transfer the Shares without
registration  under the Act or applicable  state securities laws or an exemption
therefrom.  The  Shares  have not been  registered  under  the Act or under  the
securities  laws of any states.  The Shares are to be  registered by the Company
pursuant to the terms of the Registration  Rights  Agreement  attached hereto as
Exhibit  A and  incorporated  herein  and made a part  hereof.  The  undersigned
represents that the  undersigned is purchasing the Shares for the  undersigned's
own account, for investment and not with a view to resale or distribution except
in compliance  with the Act. The undersigned has not offered or sold any portion
of the Shares being acquired nor does the undersigned have any present intention
of dividing  the Shares with others or of  selling,  distributing  or  otherwise
disposing of any portion of the Shares either  currently or after the passage of
a fixed or determinable  period of time or upon the occurrence or  nonoccurrence
of any  predetermined  event or  circumstance in violation of the Act. Except as
provided in the Registration Rights Agreement,  the Company has no obligation to
register the Shares.

     (e) The undersigned  recognizes that an investment in the `Shares  involves
substantial risks, including loss of the entire amount of such investment.

     (f) Legends.

          (i) The undersigned  acknowledges  that each certificate  representing
     the Shares unless registered pursuant to the Registration Rights Agreement,
     shall be stamped or otherwise imprinted with a legend  substantially in the
     following form:

     THE SECURITIES  EVIDENCED BY THIS  CERTIFICATE MAY NOT BE OFFERED
     OR SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED
     OF EXCEPT (i)  PURSUANT TO AN  EFFECTIVE  REGISTRATION  STATEMENT
     UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  (ii) TO THE EXTENT
     APPLICABLE,  RULE 144 UNDER THE ACT (OR ANY  SIMILAR  RULE  UNDER
     SUCH ACT RELATING TO THE DISPOSITION OF SECURITIES),  OR (iii) IF
     AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE.

     NOTWITHSTANDING THE FOREGOING,  THESE SECURITIES ARE ALSO SUBJECT
     TO THE  REGISTRATION  RIGHTS  SET  FORTH IN EACH OF THAT  CERTAIN
     SUBSCRIPTION AGREEMENT AND

                                  6
<PAGE>

     REGISTRATION  RIGHTS  AGREEMENT BY AND BETWEEN THE HOLDER  HEREOF
     AND THE  COMPANY,  A COPY  OF  EACH  IS ON FILE AT THE  COMPANY'S
     PRINCIPAL EXECUTIVE OFFICE.

          (ii)  The  Shares  shall  contain  the  following   legend  until  the
     effectiveness of Registration Statement:

     "No sale,  offer to sell or transfer of the securities  represented by this
     certificate shall be made unless a registration statement under the Federal
     Securities Act of 1933, as amended, with respect to such securities is then
     in effect or an exemption from the registration  requirement of such Act is
     then in fact applicable to such securities."

          (iii)  After the  effective  date of the  Registration  Statement  the
     Shares shall not bear any restrictive legend.

     (g) If this Subscription Agreement is executed and delivered on behalf of a
corporation,  (i) such  corporation  has the full legal  right and power and all
authority  and  approval  required  (a) to execute  and  deliver,  or  authorize
execution and delivery of, this Subscription Agreement and all other instruments
(including,  without limitation, the Registration Rights Agreement) executed and
delivered by or on behalf of such corporation in connection with the purchase of
the Shares and (b) to purchase  and hold the Shares:  (ii) the  signature of the
party signing on behalf of such  corporation  is binding upon such  corporation;
and (iii)  such  corporation  has not been  formed for the  specific  purpose of
acquiring the Shares,  unless each beneficial  owner of such entity is qualified
as an accredited  investor within the meaning of Rule 501(a) of Regulation D and
has submitted information substantiating such individual qualification.

     (h) The undersigned  shall indemnify and hold harmless the Company and each
stockholder, executive, employee, representative,  affiliate, officer, director,
agent (including  Counsel) or control person of the Company,  who is or may be a
party or is or may be threatened to be made a party to any threatened pending or
contemplated action, suit or proceeding, whether civil, criminal, administrative
or  investigative,   by  reason  of  or  arising  from  any  actual  or  alleged
misrepresentation  or  misstatement  of facts or omission to  represent or state
facts  made or alleged to have been made by the  undersigned  to the  Company or
omitted or  alleged to have been  omitted  by the  undersigned,  concerning  the
undersigned or the undersigned's  subscription for and purchase of the Shares or
the undersigned's  authority to invest or financial  position in connection with
the  Offering,   including,  without  limitation,  any  such  misrepresentation,
misstatement  or  omission  contained  in  this  Subscription   Agreement,   the
Questionnaire  or any  other  document  submitted  by the  undersigned,  against
losses,  liabilities  and expenses for which the  Company,  or any  stockholder,
executive, employee,

                                       7
<PAGE>

representative,  affiliate,  officer,  director,  agent  (including  Counsel) or
control  person of the  Company has not  otherwise  been  reimbursed  (including
attorneys'  fees  and  disbursements,  judgments,  fines  and  amounts  paid  in
settlement)  actually and reasonably  incurred by the Company,  or such officer,
director   stockholder,   executive,   employee,   agent  (including   Counsel),
representative, affiliate or control person in connection with such action, suit
or proceeding.

     (i) The  undersigned is not  subscribing  for the Shares as a result of, or
pursuant to, any advertisement, article, notice or other communication published
in any  newspaper,  magazine or similar  media or broadcast  over  television or
radio or presented at any seminar or meeting.

     (j) The undersigned or the undersigned's  representatives,  as the case may
be, has such knowledge and experience in financial,  tax and business matters so
as to enable the  undersigned to utilize the  information  made available to the
undersigned in connection  with the Offering to evaluate the merits and risks of
an  investment  in the Shares and to make an informed  investment  decision with
respect thereto.

     (k) The  Purchaser  is  purchasing  the  Shares  for its  own  account  for
investment,  and not with a view  toward  the  resale  or  distribution  thereof
Purchaser  is  neither  an  underwriter  of,  nor a dealer in, the Shares or the
Common Stock issuable upon conversion  thereof and is not  participating  in the
distribution or resale of the Shares.

     (l) There has never  been  represented,  guaranteed,  or  warranted  to the
undersigned by any broker,  the Company,  its officers,  directors or agents, or
employees or any other person, expressly or by implication (i) the percentage of
profits  and/or  amount  of or  type  of  consideration,  profit  or  loss to be
realized,  if any, as a result of the  Company's  operations;  and (ii) that the
past performance or experience on the part of the management of the Company,  or
of any other person, will in any way result in the overall profitable operations
of the Company.

3.   SELLER REPRESENTATIONS.

     (a)  Concerning  the  Securities.  The  issuance,  sale and delivery of the
Shares have been duly authorized by all required corporate action on the part of
Seller, 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 and  enforceable in accordance  with their terms,  subject to the
laws of bankruptcy and creditors' rights generally.

     (b) Authority to Enter Agreement.  This Agreement has been duly authorized,
validly  executed  and  delivered on behalf of Seller and is a valid and binding
agreement in accordance with its terms, subject to general principals of

                                       8
<PAGE>

equity and to bankruptcy or other laws  affecting the  enforcement of creditors'
rights generally.

     (c)  Non-contravention.  The execution and delivery,  of this Agreement and
the   consummation  of  the  issuance  of  the  Shares,   and  the  transactions
contemplated  by this Agreement do not and will not conflict with or result in a
breach by Seller of any of the terms or  provisions  of, or constitute a default
under,  the articles of  incorporation  or by-laws of Seller,  or any indenture,
mortgage,  deed of trust,  or other  material  agreement or  instrument to which
Seller is a party or by which it or any of its  properties  or assets are bound,
or any existing  applicable law, rule, or regulation of the United States or any
State thereof or any  applicable  decree,  judgment,  or order of any Federal or
State court,  Federal or State regulatory body,  administrative  agency or other
United States  governmental  body having  jurisdiction over Seller or any of its
properties or assets.

     (d)  Company  Compliance.  The Company  represents  and  warrants  that the
Company  and  its  subsidiaries  are:  (i) in  full  compliance,  to the  extent
applicable,  with all reporting  obligations under either Section 13(a) or 15(d)
of the Securities Exchange Act of 1934;  excepting that the Company acknowledges
that it did not  timely  file its Form 10-K for its  fiscal  year ended June 30,
1998, and its Form 10-Q for the fiscal quarter ended September 30, 1998, both of
which were subsequently  filed on December 3,1998,  (ii) not in violation of any
term or provision of its Certificate of Incorporation  or by-laws;  (iii) not in
default  in the  performance  or  observance  of any  obligation,  agreement  or
condition contained in any bond,  debenture (excepting for reservation of number
of shares  required if all  Debentures  were to be converted  and  excepting for
registration  of underlying  shares as same relates to preexisting  debentures),
note or any other evidence of  indebtedness  or in any mortgage,  deed of trust,
indenture or other  instrument  or  agreement to which they are a party,  either
singly  or  jointly,  by which it or any of its  property  is bound or  subject.
Furthermore,  the  Company  is not  aware of any other  facts,  which it has not
disclosed which could have a material adverse effect on the business, condition,
(financial  or  otherwise),  operations,  earnings,  performance,  properties or
prospects of the Company and its subsidiaries taken as a whole.

     (e) Pending  Litigation.  Except as otherwise disclosed in Exhibit B, there
is (i) no  action,  suit or  proceeding  before or by any court,  arbitrator  or
governmental body now pending or, to the knowledge of the Company, threatened or
contemplated  to which the  Company  or any of its  subsidiaries  is or may be a
party  or to  which  the  business  or  property  of the  Company  or any of its
subsidiaries  is or may be  bound  or  subject,  (ii)  no  law,  statute,  rule,
regulation,  order or ordinance that has been enacted,  adopted or issued by any
Governmental Body or that, to the knowledge of the Company, has been proposed by
any   Governmental   Body  adversely   affecting  the  Company  or  any  of  its
subsidiaries, (iii) no injunction, restraining order or order of any nature by a
federal,  state or foreign court or Governmental Body of competent  jurisdiction
to

                                       9
<PAGE>

which the Company or any of its subsidiaries is subject issued that, in the case
of clauses (i), (ii) and (iii) above, (x) is reasonably likely, singly or in the
aggregate,  to result in a material  adverse effect on the business,  condition,
(financial  or  otherwise),  operations,  earnings,  performance,  properties or
prospects of the  Company,  and its  subsidiaries  taken as a whole or (y) would
interfere  with or  adversely  affect  the  issuance  of the  Shares or would be
reasonably  likely to render this  Subscription  Agreement or the Shares, or any
portion thereof invalid or unenforceable.

     (f) Issuance of the Shares.  No action has been taken and no law,  statute,
rule, regulation,  order or ordinance has been enacted, adopted or issued by any
Governmental  Body that  prevents  the  issuance of the Shares;  no  injunction,
restraining  order  or order  of any  nature  by a  federal  or  state  court of
competent  jurisdiction has been issued that prevents the issuance of the Shares
in any jurisdiction; and no action, suit or proceeding is pending against or, to
the best knowledge of the Company, threatened against or affecting, the Company,
any of its  subsidiaries  or, to the best  knowledge of the Company,  before any
court or arbitrator  or any  Governmental  Body that,  if adversely  determined,
would prohibit,  materially  interfere with or adversely  affect the issuance or
marketability of the Shares or render the Subscription  Agreement or the Shares,
or any portion thereof, invalid or unenforceable.

     (g) The Company  shall  indemnify  and hold harmless the Purchaser and each
stockholder,  executive, employee, representative,  affiliate, officer, director
or  control  person of the  Purchaser,  who is or may be a party or is or may be
threatened to be made a party to any threatened, pending or contemplated action,
suit or proceeding, whether civil, criminal, administrative or investigative, by
reason  of  or  arising  from  any  actual  or  alleged   misrepresentation   or
misstatement of facts or omission to represent or state facts made or alleged to
have been made by the  Company  to the  Purchaser  or omitted or alleged to have
been  omitted  by the  Company,  concerning  the  Purchaser  or the  Purchaser's
subscription  for and  purchase of the Shares or the  Purchaser's  authority  to
invest or financial position in connection with the Offering, including, without
limitation,  any such  misrepresentation,  misstatement or omission contained in
this Subscription  Agreement,  the Questionnaire or any other document submitted
by  the  Company,  against  losses,  liabilities  and  expenses  for  which  the
Purchaser, or any stockholder,  executive, employee, representative,  affiliate,
officer,  director or control  person of the Purchaser  has not  otherwise  been
reimbursed  (including attorneys' fees and disbursements,  judgments,  fines and
amounts paid in settlement)  actually and reasonably  incurred by the Purchaser,
or such officer, director,  stockholder,  executive,  employee,  representative,
affiliate or control person in connection with such action, suit or proceeding.

     (h) No  Change.  Other  than  filings  required  by the Blue Sky or federal
securities  law and/or  NASDAQ Rules and  Regulations,  no consent,  approval or
authorization of or designation, declaration or filing with any governmental or

                                       10
<PAGE>

other regulatory  authority on the part of the Company is required in connection
with the valid  execution,  delivery  and  performance  of this  Agreement.  Any
required  qualification or notification under applicable federal securities laws
and state Blue Sky laws of the offer, sale and issuance of the. Shares, has been
obtained  on or before  the date  hereof or will have been  obtained  within the
allowable period thereafter, and a copy thereof will be forwarded to Counsel for
the Purchaser.

     (i) True  Statements.  Neither this  Agreement  nor any of the  "Disclosure
Documents",  as hereinafter defined, contains any untrue statement of a material
fact or  omits  to  state  any  material  fact  necessary  in  order to make the
statements  contained  herein  or  therein  not  misleading  in the light of the
circumstances  under which such  statements  are made.  There  exists no fact or
circumstances  which, to the knowledge of the Company,  materially and adversely
affects  the  business,  properties  or  assets,  or  conditions,  financial  or
otherwise,  of the  Company,  which has not been set forth in this  Subscription
Agreement or disclosed in such documents.

     (j) The  Purchaser  has been  advised that the Company has not retained any
independent  professionals  to review or comment on this  Offering or  otherwise
protect the  interests of the  Purchaser.  Although the Company has retained its
own  counsel,  neither  such  counsel  nor any other firm,  including  Joseph B.
LaRocco,  Esq., has acted on behalf of the Purchaser,  and the Purchaser  should
not rely on the Company's legal counsel or Joseph B. LaRocco,  Esq. with respect
to any matters herein described.

     (k) Prior Shares  Issued Under or Regulation D. In the past nine months the
Company raised $13,591,200 in Regulation D offerings, including  redemptions and
rollovers.

     (l)  Current  Authorized  Shares.  As  of   October   5,  1999  there  were
50,000,000  authorized shares of Common Stock of which approximately  14,576,031
shares were issued and outstanding.

     (m)   Disclosure Documents.  The Disclosure Documents are all the documents
(other than  preliminary  materials)  that the Company has been required to file
with  the  SEC  from  June  30,  1997,  to the date  hereof,  exclusive  of such
registration  statements  as  have  been  filed  in   accordance   with  certain
registration  rights agreements.  As of their respective dates,  and/or dates of
amended filings with respect thereto, none of the Disclosure Documents contained
any  untrue  statement  of a material  fact or omitted to state a material  fact
required  to  be  stated  therein  or necessary in order to make the  statements
therein,  in  light of  the  circumstances  under  which  they  were  made,  not
misleading,  and  no  material  event has occurred since the Company's filing on
Form  10-K  for  the  year  ended  June  30,  1999  which  could make any of the
disclosures contained therein (as

                                       11
<PAGE>

subsequently amended and/or restated) misleading The financial statements of the
Company  included in the  Disclosure  Documents have been prepared in accordance
with generally  accepted  accounting  principles  applied on a consistent  basis
during  the  periods   involved  (except  as  may  be  indicated  in  the  audit
adjustments)  the  consolidated  financial  position  of  the  Company  and  its
consolidated  subsidiaries as at the dates thereof and the consolidated  results
of their  operations  and changes in  financial  position  for the periods  then
ended.

     (n)  Information  Supplied.  The  information  supplied  by the  Company to
Purchaser  in  connection  with the  offering of the Shares does not contain any
untrue  statement of a material fact or omit to state a material fact  necessary
to make the  statements,  in the light of the  circumstances  in which they were
made,  not  misleading.  There  exists no fact or  circumstances  which,  to the
knowledge  of the  Company,  materially  and  adversely  affects  the  business,
properties, assets, or conditions, financial or otherwise, of the Company, which
has not been set forth in this Agreement or disclosed in such documents.

     (o) Non-contravention.  The execution and delivery of this Agreement by the
Company,  the issuance of the Shares, and the consummation by the Company of the
other transactions  contemplated by this Agreement, do not and will not conflict
with or result in a breach by the Company of any of the terms or provisions  of,
or constitute a default under,  the (i) certificate of  incorporation or by-laws
of the Company, (ii) any indenture,  mortgage,  deed of trust, or other material
agreement or instrument to which the Company is a party or by which it or any of
its properties or assets are bound, (iii) any material existing  applicable law,
rule, or regulation or any  applicable  decree,  judgment,  or (iv) order of any
court, United States federal or state regulatory body, administrative agency, or
other  governmental  body  having  jurisdiction  over the  Company or any of its
properties or assets,  except such  conflict,  breach or default which would not
have a material adverse effect on the transactions contemplated herein.

     (p) No Default.  Except as may be set forth in the Company's report on form
10-K for the fiscal year ending June 30, 1999,  the Company is not in default in
the performance or observance of any material obligation, agreement, covenant or
condition contained in any indenture, mortgage, deed of trust or other, material
instrument or agreement to which it is a party or by which it or its property is
bound, and neither the execution of, nor the delivery by the Company of, nor the
performance  by the Company of its  obligations  under,  this  Agreement  or the
Shares,  other than the  conversion  provision  thereof,  will  conflict with or
result in the  breach or  violation  of any of the  terms or  provisions  of, or
constitute  a default or result in the  creation  or  imposition  of any lien or
charge on any  assets or  properties  of the  Company  under,  (i) any  material
indenture, mortgage, deed of trust or other material agreement applicable to the
Company or  instrument  to which the Company is a party or by which it is bound,
(ii)  any  statute  applicable  to  the  Company  or  its  property,  (iii)  the
Certificate  of  Incorporation!  or By-Laws  of the  Company,  (iv) any  decree,
judgment, order, rule or regulation of any court or

                                       12
<PAGE>

governmental  agency  or  body  having  jurisdiction  over  the  Company  or its
properties,  or (v) the  Company's  listing  agreement,  if any,  for its Common
Stock.

     (q) Use of Proceeds.  The Company  represents that the net proceeds of this
offering will be primarily used for working capital.

4.   ISSUANCE OF SHARES AND REGISTRATION.

     (a) Legend.  Upon registration of the Shares,  the Company shall deliver to
the Purchaser, or per the Purchaser's instructions,  the shares of Common Stock,
subject to the following restrictive legend:

     THE  SECURITIES  REPRESENTED  HEREBY  HAVE BEEN  INCLUDED  IN THE
     COMPANY'S   REGISTRATION   STATEMENT  INITIALLY  FILED  WITH  THE
     SECURITIES AND EXCHANGE  COMMISSION ON ______________,  1999, AND
     MAY BE SOLD IN  ACCORDANCE  WITH THE COMPANY'S  PROSPECTUS  DATED
     _______, 1999, WHICH FORMS A PART OF SUCH REGISTRATION STATEMENT,
     OR AN  OPINION OF COUNSEL  OR OTHER  EVIDENCE  ACCEPTABLE  TO THE
     CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.

     (b) Opinion Letter.  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 date of issuance.  Upon surrender of any
Share  certificates  that are to be sold in part, the Company shall issue to the
Purchaser new Share Certificates equal to the unsold amount.

     (c) Once the Common Stock has been  registered,  if the Common Stock is not
delivered  per the  written  instructions  of the  Purchaser,  within  5  (five)
business  days  after  the  Company  receives  the Share  certificates  from the
Purchaser, then in such event the Company shall pay to Purchaser one-half of one
percent  (.50%) in cash,  of the purchase  price of the Shares  delivered to the
Company per each day after the fifth  business day  following the receipt by the
Company that the Common Stock is not delivered.  The Company  acknowledges  that
its failure to deliver the Common Stock within said five (5) business  days 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

                                       13
<PAGE>

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 and the Subscription Agreement.

     The Company  shall make any  payments  incurred  under this Section 4(c) in
immediately  available  funds within  three (3)  business  days from the date of
issuance  of  the  applicable  Common  Stock.   Nothing  herein  shall  limit  a
Purchaser's  right to pursue actual  damages for the Company's  failure to issue
and deliver  Common Stock to the  Purchaser  within five (5) business days after
registration  and after the Company  receives  the Share  certificates  from the
Purchaser.

     (d) The Company  shall at all times  reserve and have  available all Common
Stock necessary for  registration of all the Shares  purchased by all Purchasers
of the Shares.  It at any time the Company does not have  sufficient  authorized
but unissued shares of Common Stock available for registration  ("Default",  the
date of such  default  being  referred  to herein as the  "Default  Date"),  the
Company shall issue to the Purchaser all of the shares of Common Stock which are
available.  The  Company  shall  provide  notice  of such  Default  ("Notice  of
Default") to all  Purchasers,  within one (1) business day of such default (with
the original delivered by overnight or two day courier).

     The Company agrees to pay to all Purchasers of outstanding  Shares payments
for a  Default  ("Default  Payments")  in the  amount  of  (N/365) x (.24) x the
initial issuance price of the outstanding  Shares held by each Purchaser where N
= the  number of days  from the  Default  Date to the date  (the  "Authorization
Date") that the Company authorizes a sufficient number of shares of Common Stock
to effect of all remaining Shares. The Company shall send notice ("Authorization
Notice") to each  Purchaser  of  outstanding  Shares that  additional  shares of
Common  Stock have been  authorized,  the  Authorization  Date and the amount of
Purchaser's accrued Default Payments.  The accrued Default shall be paid in cash
which  payments  shall be made to such  Purchaser of  outstanding  Shares by the
fifth day of the following  calendar  month  following  registration  of all the
Shares.

5.   LIMITS ON AMOUNT OF CONVERSION AND OWNERSHIP.

     Notwithstanding the provisions hereof, in no event except with respect to a
conversion  pursuant  to  redemption  by the  Company  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,

                                       14
<PAGE>

shall the  Purchaser  be  entitled  to own the number of shares of Common  Stock
beneficially  owned by the Purchaser and its  affiliates,  and,  would result in
beneficial  ownership by the Purchaser and its  affiliates of more than 4.99% of
the  outstanding  shares of Common  Stock.  For  purposes  of the  proviso to be
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 (15 of such  proviso.
The Purchaser  further agrees that if the Purchaser  transfers or assigns any of
the Shares 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.

6.   DELIVERY INSTRUCTIONS.

     Prior to or on the  Closing  Date the Company  shall  deliver to the Escrow
Agent an opinion  letter  signed by counsel for the Company in the form attached
hereto as Exhibit C. Also,  prior to or on the Closing  Date the  Company  shall
deliver to the Escrow Agent a signed  Registration  Rights Agreement in the form
attached hereto as Exhibit A.

7.   UNDERSTANDINGS.

     The undersigned  understands,  acknowledges  and agrees with the Company as
follows:

FOR ALL SUBSCRIBERS:

     (a) This Subscription may be rejected,  in whole or in part, by the Company
in its sole and absolute  discretion at any time before the date set for closing
unless  the  Company  has  given  notice  of  acceptance  of  the  undersigned's
subscription by signing this Subscription Agreement.

     (b) No U.S. federal or state agency or any agency of any other jurisdiction
has made any  finding or  determination  as to the  fairness of the terms of the
Offering for investment nor any recommendation or endorsement of the Shares.

     (c) The  representations,  warranties and agreements of the undersigned and
the Company  contained  herein and in any other writing  delivered in connection
with the  transactions  contemplated  hereby  shall be true and  correct  in all
material respects on and as of the date of the sale of the Shares, and as of the
date of the conversion and exercise  thereof,  as if made on and as of such date
and shall survive the execution and delivery of this Subscription  Agreement and
the purchase of the Shares.

                                       15
<PAGE>

     (d) IN MAKING AN  INVESTMENT  DECISION,  PURCHASERS  MUST RELY ON THEIR OWN
EXAMINATION  OF THE COMPANY AND THE TERMS OF THE OFFERING,  INCLUDING THE MERITS
AND RISKS INVOLVED. THE SHARES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE
SECURITIES  COMMISSION  OR  REGULATORY  AUTHORITY.  FURTHERMORE,  THE  FOREGOING
AUTHORITIES  HAVE NOT CONFIRMED  THE ACCURACY OR DETERMINED  THE ADEQUACY OF ANY
MEMORANDUM OR THIS DOCUMENT.  ANY  REPRESENTATION  TO THE CONTRARY IS A CRIMINAL
OFFENSE.

     (e) The  Regulation  D Offering is intended to be exempt from  registration
under the Securities Act by virtue of Section 4(2) of the Securities Act and the
provisions  of  Regulation D  thereunder,  which is in part  dependent  upon the
truth,  completeness  and  accuracy of the  statements  made by the  undersigned
herein and in the Questionnaire.

     (f) It is understood that in order not to jeopardize the Offering's  exempt
status under Section 4(2) of the Securities Act and Regulation D, any transferee
may, at a minimum, be required to fulfill the investor suitability  requirements
thereunder.

     (g) THE SHARES MAY NOT BE  TRANSFERRED,  RESOLD OR  OTHERWISE  DISPOSED  OF
EXCEPT AS PERMITTED  UNDER THE SECURITIES ACT AND  APPLICABLE  STATE  SECURITIES
LAWS,  PURSUANT TO REGISTRATION  OR EXEMPTION  THEREFROM.  PURCHASERS  SHOULD BE
AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL  RISKS OF THIS INVESTMENT
FOR AN INDEFINITE PERIOD OF TIME.

     (h) NASAA UNIFORM LEGEND

     IN  MAKING  AN  INVESTMENT  DECISION  INVESTORS  MUST  RELY  ON  THEIR  OWN
EXAMINATION OF THE PERSON OR ENTITY CREATING THE SECURITIES AND THE TERMS OF THE
OFFERING,  INCLUDING THE MERITS AND RISKS  INVOLVED.  THESE  SECURITIES HAVE NOT
BEEN  RECOMMENDED  BY ANY FEDERAL OR STATE  SECURITIES  COMMISSION OR REGULATORY
AUTHORITY.  FURTHERMORE,  THE  FOREGOING  AUTHORITIES  HAVE  NOT  CONFIRMED  THE
ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT.  ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.  THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON
TRANSFERABILITY  AND  RESALE  AND MAY NOT BE  TRANSFERRED  OR  RESOLD  EXCEPT AS
PERMITTED UNDER THE SECURITIES ACT OF 1933 AND THE APPLICABLE  STATE  SECURITIES
LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE
THAT THEY WILL BE REQUIRED TO

                                       16
<PAGE>

BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

9.   Litigation.

     (a) Forum  Selection  and Consent to  Jurisdiction.  Any  litigation  based
thereon,  or arising out of, under, or in connection with, this agreement or any
course of conduct,  course of dealing,  statements  (whether oral or written) or
actions of the Company or Purchaser shall be brought and maintained  exclusively
in the  courts  of the State of New  York.  The  Company  hereby  expressly  and
irrevocably  submits to the  jurisdiction of the state and federal courts of the
State of New York for the purpose of any such  litigation as set forth above and
irrevocably  agrees  to be bound  by any  final  judgment  rendered  thereby  in
connection with such litigation. The Company further irrevocably consents to the
service of process by registered mail,  postage prepaid,  or by personal service
within or  without  the State of New York.  The  Company  hereby  expressly  and
irrevocably  waives, to the fullest extent permitted by law, any objection which
it may have or hereafter may have to the laying of venue of any such  litigation
brought  in any  such  court  referred  to  above  and any  claim  that any such
litigation has been brought in any  inconvenient  forum.  To the extent that the
Company has or hereafter may acquire any immunity from jurisdiction of any court
or from any legal process (whether  through service or notice,  attachment prior
to judgment, attachment in aid of execution or otherwise) with respect to itself
or its property,  the Company hereby irrevocably waives such immunity in respect
of its obligations under this agreement and the other loan documents.

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

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

10.  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.

                                       17
<PAGE>

     (b) Neither this  Subscription  Agreement 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 Company,
at SWISSRAY International,  Inc., 320 West 77th Street, Suite 1A, New York, New
York 10024 with a copy by facsimile and mail to Gary B. Wolff,  P.C.,  747 Third
Avenue,  25th Floor, New York, NY 10017 and (ii) if to the  undersigned,  at the
address  for  correspondence  set forth in the  Questionnaire,  or at such other
address as may have been  specified by written  notice given in accordance  with
this paragraph 10(c).

     (d) This Subscription  Agreement shall be enforced,  governed and construed
in all respects in  accordance  with the laws of the State of New York,  as such
laws are  applied  by New York  courts to  agreements  entered  into,  and to be
performed  in,  New York by and  between  residents  of New  York,  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
Company,  its  successors  and assigns.  If any  provision of this  Subscription
Agreement 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.

     (e)  This  Subscription  Agreement,  together  with  Exhibits  A, B,  and C
attached hereto and made a part hereof,  constitute the entire agreement between
the parties  hereto with respect to the subject matter hereof and may be amended
only by a writing executed by both parties hereto. An executed facsimile copy of
the Subscription Agreement shall be effective as an original.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK)

                                       18
<PAGE>

                          SWISSRAY INTERNATIONAL, INC.

                            CORPORATION QUESTIONNAIRE
                         Investor Name: ________________

     The information contained in this Questionnaire is being furnished in order
to determine whether the undersigned CORPORATION'S  Subscription to purchase the
Shares described in the Subscription Agreement may be accepted.

     ALL   INFORMATION   CONTAINED  IN  THIS   QUESTIONNAIRE   WILL  BE  TREATED
CONFIDENTIALLY.  The  undersigned  CORPORATION  understands,  however,  that the
Company may present this  Questionnaire to such parties as it deems  appropriate
if called upon to establish  that the  proposed  offer and sale of the Shares is
exempt from registration under the Securities Act of 1933, as amended.  Further,
the  undersigned  CORPORATION  understands  that the  offering is required to be
reported to the Securities and Exchange Commission,  NASDAQ and to various state
securities and "blue sky" regulators.

     IN ADDITION TO SIGNING THE SIGNATURE PAGE, THE UNDERSIGNED CORPORATION MUST
COMPLETE FORM W-9 ATTACHED HERETO.

I. PLEASE CHECK EACH OF THE STATEMENTS BELOW THAT APPLIES TO THE CORPORATION.

[ ]
     1.  The  undersigned  CORPORATION:  (a)  has  total  assets  in  excess  of
     $5,000,000;  (b) was not formed for the specific  purpose of acquiring  the
     Shares and (c) has its principal place of business in _______________.

[ ]
     2.  Each of the  shareholders  of the  undersigned  CORPORATION  is able to
     certify that such  shareholder  meets at least one of the  following  three
     conditions:

          (a)  the  shareholder is a natural person whose  individual net worth*
               or joint net worth with his or her spouse exceeds $1,000,000; or

          (b)  the shareholder is a natural person who had an individual income*
               in excess of $200,000 in each of 1997 and 1998 and who reasonably
               expects an individual income in excess of $200,000 in 1999; or

                                       19
<PAGE>

          (c)  Each of the  shareholders of the undersigned  CORPORATION is able
               to  certify  that  such  shareholder  is a  natural  person  who,
               together with his or her spouse, has had a joint income in excess
               of $300,000 in each of 1997 and 1998 and who reasonably expects a
               joint  income  in  excess  of  $300,000   during  1999;  and  the
               undersigned  CORPORATION  has its principal  place of business in
               ________________________.

* For purposes of this  Questionnaire,  the term "net worth" means the excess of
total assets over total liabilities.  In determining  income, an investor should
add to his or her adjusted gross income any amounts  attributable  to tax-exempt
income received, losses claimed as a limited partner in any limited partnership,
deductions claimed for depletion, contributions to IRA or Keogh retirement plan,
alimony payments and any amount by which income from long-term capital gains has
been reduced in arriving at adjusted gross income.

[ ]

     3.   The undersigned CORPORATION is:

          (a) a bank as defined in Section 3(a)(2) of the Securities Act; or

          (b) a savings and loan association or other  institution as defined in
          Section  3(a)(5)(A)  of  the  Securities  Act  whether  acting  in its
          individual or fiduciary capacity; or

          (c) a broker  or  dealer  registered  pursuant  to  Section  15 of the
          Securities Exchange Act of 1934; or

          (d) an insurance company as defined in Section 2(13) of the Securities
          Act; or

          (e) An investment  company registered under the Investment Company Act
          of 1940 or a  business  development  company  as  defined  in  Section
          2(a)(48) of the Investment Company Act of 1940; or

          (f) a small  business  investment  company  licensed by the U.S. Small
          Business  Administration  under  Section  301 (c) or (d) of the  Small
          Business Investment Act of 1958; or

          (g) a private  business  development  company  as  defined  in Section
          202(a) (22) of the Investment Advisors Act of 1940.

                                       20
<PAGE>

II.  OTHER CERTIFICATIONS.

     By signing the Signature Page, the undersigned certifies the following:

     (a) That the  CORPORATION'S  purchase  of the Shares will be solely for the
     CORPORATION'S  own account  and not for the account of any other  person or
     entity; and

     (b) that the  CORPORATION'S  name,  address of principal place of business,
     place of incorporation and taxpayer  identification  number as set forth in
     this Questionnaire are true, correct and complete.

III. GENERAL INFORMATION

     (a) PROSPECTIVE PURCHASER (THE CORPORATION)

Name:

Principal Place of Business: ___________________________________________________

________________________________________________________________________________

Address for Correspondence (if different):           SAME
                                             -------------------
                                             (Number and Street)

________________________________________________________________________________
        (City)                       (State)                      (Zip Code)

Telephone Number: ______________________________________________________________
                         (Area Code)              (Number)

Jurisdiction of Incorporation: _________________________________________________

Date of Formation: _____________________________________________________________

Taxpayer Identification Number: ________________________________________________

Number of Shareholders: ________________________________________________________

     (b)  INDIVIDUAL  WHO IS  EXECUTING  THIS  QUESTIONNAIRE  ON  BEHALF  OF THE
CORPORATION.

Name: __________________________________________________________________________

Position or Title: _____________________________________________________________

                                       21
<PAGE>

                          SWISSRAY INTERNATIONAL, INC.
                           CORPORATION SIGNATURE PAGE

     Your signature on this  Corporation  Signature Page evidences the agreement
by  the  Purchaser  to be  bound  by  the  Questionnaire  and  the  Subscription
Agreement.

     1. The undersigned hereby represents that (a) the Information  contained in
the  Questionnaire  is complete and accurate and (b) the  Purchaser  will notify
SWISSRAY  INTERNATIONAL,  INC.  immediately if any material change in any of the
information  occurs  prior  to the  acceptance  of the  undersigned  Purchaser's
subscription  and  will  promptly  send  SWISSRAY  INTERNATIONAL,  INC.  written
confirmation of such change.

     2. The undersigned  officer of the Purchaser  hereby  certifies that he has
read and understands this Subscription Agreement.

     3. The undersigned  officer of the Purchaser hereby represents and warrants
that he has been  duly  authorized  by all  requisite  action on the part of the
Corporation to acquire the Shares and sign is  Subscription  Agreement on behalf
of Parkdale LLC and, further,  that Parkdale LLC has all requisite  authority to
purchase the Shares and enter into this Subscription Agreement.

-------------------------------         ---------------------------------------
Number of Shares subscribed for                        Date

                                        ---------------------------------------
                                                      (Purchaser)

                                        By:
                                        ---------------------------------------
                                                       (Signature)

                                        Name:
                                        ---------------------------------------
                                                (Please Type or Print)

                                        Title:
                                        ---------------------------------------
                                                (Please Type or Print)

     THE SHARES HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES ACT OF 1933. AS
AMENDED  (THE  "ACT"),  AND MAY NOT BE OFFERED,  SOLD OR  OTHERWISE  TRANSFERRED
UNLESS SUCH  SECURITIES  ARE INCLUDED IN AN  EFFECTIVE'  REGISTRATION  STATEMENT
UNDER THE ACT.

                                       22
<PAGE>

                                       23
<PAGE>

                             COMPANY ACCEPTANCE PAGE

This Subscription Agreement accepted
and agreed to this ____ day of October, 1999

SWISSRAY INTERNATIONAL, INC.

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

                                       24

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