Exhibit 10.17 EXHIBIT "B" SUBSCRIPTION AGREEMENT June 2, 1997 Synergistic Holdings Corp. 50 Laser Court Hauppauge, New York 11788 Gentlemen: A. Subscription. The undersigned hereby subscribes for 25,000 shares of Series C Preferred Stock (the "Stock") of Synergistic Holdings Corp., a Delaware corporation (the "Company"). B. Acceptance of Subscription. The undersigned is tendering payment for the subscribed for Stock by check in the amount of $25,000 to the order of Synergistic Holdings Corp. All funds received from the undersigned for Stock will be held in a segregated account by the Company until June 15, 1997 (the "Closing") or earlier termination of the offering. This Subscription Agreement, together with the check, should be delivered to Synergistic Holdings Corp., 50 Laser Court, Hauppauge, New York 11788, Attention: Salvatore Crimi. If this subscription is rejected by the Company, the amount tendered by the investor shall be promptly returned in full to the undersigned by the Company, without interest or deduction, and this Subscription Agreement shall be null and void and of no further force or effect. The Company shall have the right to reject this subscription, in whole or in part. C. Amendment of Certificate of Incorporation. By no later than December 31, 1997, the Company hereby agrees to amend its Certificate of Incorporation to increase the number of shares of the Company's common stock, $0.01 par value per share (the "Common Stock") which it is authorized to issue to have available a sufficient number of authorized Common Stock to issue upon conversion of the Series C Preferred Stock. In the event that such amendment has not been approved by the Company's Board of Directors and shareholders by December 31, 1997, the Company agrees to pay the undersigned $1,000,000.00. D. Representations and Warranties of the Undersigned. The undersigned hereby represents and warrants to the Company that the undersigned has received and had the opportunity to review the Company's 10-QSB for the quarterly period ended January 31, 1997 and certain other financial information relating to the Company. The undersigned has also had the opportunity to ask questions of and to receive answers from the Company and its representatives, with respect to the Company and the terms and conditions of this offering. The undersigned and the undersigned's representatives, if any, have been offered access to the books and records of the Company. All materials and information requested by the undersigned and the undersigned's representatives, if any, including any information requested to verify any information furnished, have been made available to the undersigned. E. Representations and Warranties of the Company. 1. The Company has been duly and validly incorporated and is validly existing and in good standing as a corporation under the laws of the State of Delaware. The Company has all requisite power and authority to enter into this Subscription Agreement and to be bound by the provisions and conditions hereof. EXH. -1- 2. All corporate action required to be taken by the Company prior to the issuance and sale of the Stock has been taken; and the Stock when issued shall be duly and validly issued. F. Further Documents. The parties agree to execute any and all such further instruments and documents, and to take any and all such further actions reasonably required to effectuate this Subscription Agreement and the intent and purposes hereof. G. Assignability. This Subscription Agreement is not transferrable or assignable by the undersigned. H. Applicable Law. This Subscription Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, applicable to contracts made and to be performed wholly within that state, without regard to the conflict of law rules thereof. I. Modification. This Subscription Agreement may not be amended, modified or terminated except by an instrument in writing signed by all parties hereto. J. Counterparts. This Subscription Agreement may be executed through the use of separate signature pages or in any number of counterparts, and each of such counterparts shall, for all purposes, constitute one agreement binding on all parties, notwithstanding that all parties are not signatories to the same counterpart. IN WITNESS WHEREOF, the undersigned has executed this Subscription Agreement this 2nd day of June 1997. MEADOWS MANAGEMENT, LLC By: /s/ Robert Cohen ------------------------------- Name: Robert Cohen, O.D. Title: Managing Member Tax I.D. No. 11-3368291 ACCEPTED: SYNERGISTIC HOLDINGS CORP. By: /s/ Salvatore Crimi ----------------------------- Name: Salvatore Crimi Title: Chief Executive Officer EXH. 2