Document:

EXHIBIT
      10.2

     

    REGISTRATION
      RIGHTS AGREEMENT 

     

    This
      Registration Rights Agreement (this "Agreement") is made and entered into as
      of
      February 2, 2006, by and between Conversion Services International, Inc., a
      Delaware corporation (the "Company"),
      and
      Taurus Advisory Group, LLC (the "Purchaser").

     

    This
      Agreement is made pursuant to the Stock Purchase Agreement, dated as of the
      date
      hereof, by and between the Purchaser and the Company (as amended, modified
      or
      supplemented from time to time, the “Purchase
      Agreement”).

     

    The
      Company and the Purchaser hereby agree as follows: 

     

    1.  Definitions.
      Capitalized terms used and not otherwise defined herein that are defined in
      the
      Purchase Agreement shall have the meanings given such terms in the Purchase
      Agreement. As used in this Agreement, the following terms shall have the
      following meanings:

     

    "Commission"
      means
      the Securities and Exchange Commission.

     

    "Common
      Stock"
      means
      shares of the Company's common stock, par value $0.001 per share.

     

    "Effectiveness
      Period"
      shall
      have the meaning set forth in Section 2(a).

     

    "Exchange
      Act"
      means
      the Securities Exchange Act of 1934, as amended, and any successor
      statute.

     

    "Filing
      Date"
      means,
      (i) with respect to the initial Registration Statement required to be filed
      hereunder, a date no later than ninety (90) days following the date hereof
      and
      (ii) with respect to shares of Common Stock issuable to the Holder as a result
      of adjustments to the Exercise Price made pursuant to the Series A Preferred
      Stock or Warrants or otherwise, thirty (30) days after the occurrence such
      event
      or the date of the adjustment of the Exercise Price, as the case may be.

     

    "Holder"
      or
      "Holders"
      means
      the Purchaser or any of its affiliates or transferees to the extent any of
      them
      hold Registrable Securities.

     

    "Indemnified
      Party"
      shall
      have the meaning set forth in Section 5(c).

     

    "Indemnifying
      Party"
      shall
      have the meaning set forth in Section 5(c).

     

    "Proceeding"
      means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    "Prospectus"
      means
      the prospectus included in the Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by the Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference or deemed to be
      incorporated by reference in such Prospectus. 

     

    "Purchase
      Agreement"
      shall
      have the meaning provided above.

     

    "Registrable
      Securities"
      means
      the shares of Common Stock issuable upon the conversion of the Series A
      Preferred Stock or the exercise of the Warrants. 

     

    "Registration
      Statement"
      means
      each registration statement required to be filed hereunder, including the
      Prospectus, amendments and supplements to such registration statement or
      Prospectus, including pre- and post-effective amendments, all exhibits thereto,
      and all material incorporated by reference or deemed to be incorporated by
      reference in such registration statement.

     

    "Rule
      144"
      means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule. 

     

    "Rule
      415"
      means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule. 

     

    "Rule
      424"
      means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule. 

     

    "Securities
      Act"
      means
      the Securities Act of 1933, as amended, and any successor statute.

     

    "Trading
      Market"
      means
      any of the NASD OTCBB, NASDAQ Capital Market, the Nasdaq National Market, the
      American Stock Exchange or the New York Stock Exchange. 

     

    "Warrants"
      means,
      collectively, each Common Stock purchase warrant issued by the Company to the
      Purchaser on or prior to the date hereof to the extent such Common Stock
      purchase warrant is exercisable into shares of Common Stock and such shares
      of
      Common Stock are not otherwise subject to an effective Registration Statement.
      

     

    2.  Registration.

     

    (a)  On
      or
      prior to the Filing Date the Company shall prepare and file with the Commission
      a Registration Statement covering the Registrable Securities for an offering
      to
      be made on a continuous basis pursuant to Rule 415. The Company shall cause
      the
      Registration Statement to become effective and remain effective as provided
      herein. The Company shall use its best efforts to cause the Registration
      Statement to be declared effective under the Securities Act as promptly as
      possible after the filing thereof. The Company shall use its best efforts to
      keep the Registration Statement continuously effective under the Securities
      Act
      until the date which is the earlier date of when (i) all Registrable Securities
      have been sold or (ii) all Registrable Securities may be sold immediately
      without registration under the Securities Act and without volume restrictions
      pursuant to Rule 144(k), as determined by the counsel to the Company pursuant
      to
      a written opinion letter to such effect, addressed and acceptable to the
      Company's transfer agent and the affected Holders (the "Effectiveness
      Period").

     

    
      
         

      

      
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      (b)  
Within
      three business days of the effectiveness date of a Registration Statement,
      the
      Company shall cause its counsel to issue a blanket opinion in the form attached
      hereto as Exhibit A, to the transfer agent stating that the shares are subject
      to an effective registration statement and can be reissued free of restrictive
      legend upon notice of a sale by the Purchaser and confirmation by the Purchaser
      that it has complied with the prospectus delivery requirements, provided that
      the Company has not advised the transfer agent orally or in writing that the
      opinion has been withdrawn. Copies of the blanket opinion required by this
      Section 2(b) shall be delivered to the Purchaser within the time frame set
      forth
      above. 

     

    3.  Registration
      Procedures.
      If and
      whenever the Company is required by the provisions hereof to effect the
      registration of any Registrable Securities under the Securities Act, the Company
      will use its best efforts to within 90 days after the date hereof: 

     

    (a)  prepare
      and file with the Commission the Registration Statement with respect to such
      Registrable Securities, respond as promptly as possible to any comments received
      from the Commission, and use its best efforts to cause the Registration
      Statement to become and remain effective for the Effectiveness Period with
      respect thereto, and promptly provide to the Purchaser copies of all filings
      and
      Commission letters of comment relating thereto;

     

    (b)  prepare
      and file with the Commission such amendments and supplements to the Registration
      Statement and the Prospectus used in connection therewith as may be necessary
      to
      comply with the provisions of the Securities Act with respect to the disposition
      of all Registrable Securities covered by the Registration Statement and to
      keep
      such Registration Statement effective until the expiration of the Effectiveness
      Period;

     

    (c)  furnish
      to the Purchaser such number of copies of the Registration Statement and the
      Prospectus included therein (including each preliminary Prospectus) as the
      Purchaser reasonably may request to facilitate the public sale or disposition
      of
      the Registrable Securities covered by the Registration Statement;

     

    (d)  use
      its
      commercially reasonable efforts to register or qualify the Purchaser's
      Registrable Securities covered by the Registration Statement under the
      securities or "blue sky" laws of such jurisdictions within the United States
      as
      the Purchaser may reasonably request, provided, however, that the Company shall
      not for any such purpose be required to qualify generally to transact business
      as a foreign corporation in any jurisdiction where it is not so qualified or
      to
      consent to general service of process in any such jurisdiction;

     

    
      
         

      

      
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    (e)  list
      the
      Registrable Securities covered by the Registration Statement with any securities
      exchange on which the Common Stock of the Company is then listed; 

     

    (f)  immediately
      notify the Purchaser at any time when a Prospectus relating thereto is required
      to be delivered under the Securities Act, of the happening of any event of
      which
      the Company has knowledge as a result of which the Prospectus contained in
      such
      Registration Statement, as then in effect, includes an untrue statement of
      a
      material fact or omits to state a material fact required to be stated therein
      or
      necessary to make the statements therein not misleading in light of the
      circumstances then existing; and

     

    (g)  make
      available for inspection by the Purchaser and any attorney, accountant or other
      agent retained by the Purchaser, all publicly available, non-confidential
      financial and other records, pertinent corporate documents and properties of
      the
      Company, and cause the Company's officers, directors and employees to supply
      all
      publicly available, non-confidential information reasonably requested by the
      attorney, accountant or agent of the Purchaser.

     

    4.  Registration
      Expenses.
      All
      expenses relating to the Company's compliance with Sections 2 and 3 hereof,
      including, without limitation, all registration and filing fees, printing
      expenses, fees and disbursements of counsel and independent public accountants
      for the Company, fees and expenses (including reasonable counsel fees) incurred
      in connection with complying with state securities or "blue sky" laws, fees
      of
      the NASD, transfer taxes, fees of transfer agents and registrars, fees of,
      and
      disbursements incurred by, one counsel for the Holders (to the extent such
      counsel is required due to Company's failure to meet any of its obligations
      hereunder), are called "Registration Expenses". All selling commissions
      applicable to the sale of Registrable Securities, including any fees and
      disbursements of any special counsel to the Holders beyond those included in
      Registration Expenses, are called "Selling Expenses." The Company shall only
      be
      responsible for all Registration Expenses.

     

    5.  Indemnification.

     

    (a)  In
      the
      event of a registration of any Registrable Securities under the Securities
      Act
      pursuant to this Agreement, the Company will indemnify and hold harmless the
      Purchaser, and its officers, directors and each other person, if any, who
      controls the Purchaser within the meaning of the Securities Act, against any
      losses, claims, damages or liabilities, joint or several, to which the
      Purchaser, or such persons may become subject under the Securities Act or
      otherwise, insofar as such losses, claims, damages or liabilities (or actions
      in
      respect thereof) arise out of or are based upon any untrue statement or alleged
      untrue statement of any material fact contained in any Registration Statement
      under which such Registrable Securities were registered under the Securities
      Act
      pursuant to this Agreement, any preliminary Prospectus which has been printed
      and distributed (i.e. a “red herring Prospectus”) or final Prospectus related
      thereto, or any amendment or supplement thereof, or arise out of or are based
      upon the
      omission or alleged omission to state therein a material fact required to be
      stated therein or necessary to make the statements therein not
      misleading,
      and
      will reimburse the Purchaser, and each such person for any reasonable legal
      or
      other expenses incurred by them in connection with investigating or defending
      any such loss, claim, damage, liability or action; provided, however, that
      the
      Company will not be liable in any such case if and to the extent that any such
      loss, claim, damage or liability arises out of or is based upon an untrue
      statement or alleged untrue statement or omission or alleged omission so made
      in
      conformity with information furnished by or on behalf of the Purchaser or any
      such person in writing specifically for use in any such document.

     

    
      
         

      

      
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    (b)  In
      the
      event of a registration of the Registrable Securities under the Securities
      Act
      pursuant to this Agreement, the Purchaser will indemnify and hold harmless
      the
      Company, and its officers, directors and each other person, if any, who controls
      the Company within the meaning of the Securities Act, against all losses,
      claims, damages or liabilities, joint or several, to which the Company or such
      persons may become subject under the Securities Act or otherwise, insofar as
      such losses, claims, damages or liabilities (or actions in respect thereof)
      arise out of or are based upon any untrue statement or alleged untrue statement
      of any material fact which was furnished in writing by the Purchaser to the
      Company expressly for use in (and such information is contained in) the
      Registration Statement under which such Registrable Securities were registered
      under the Securities Act pursuant to this Agreement, any preliminary Prospectus
      or final Prospectus contained therein, or any amendment or supplement thereof,
      or arise out of or are based upon the omission or alleged omission to state
      therein a material fact required to be stated therein or necessary to make
      the
      statements therein not misleading, and will reimburse the Company and each
      such
      person for any reasonable legal or other expenses incurred by them in connection
      with investigating or defending any such loss, claim, damage, liability or
      action, provided, however, that the Purchaser will be liable in any such case
      if
      and only to the extent that any such loss, claim, damage or liability arises
      out
      of or is based upon an untrue statement or alleged untrue statement or omission
      or alleged omission so made in conformity with information furnished in writing
      to the Company by or on behalf of the Purchaser specifically for use in any
      such
      document. Notwithstanding the provisions of this paragraph, the Purchaser shall
      not be required to indemnify any person or entity in excess of the amount of
      the
      aggregate net proceeds received by the Purchaser in respect of Registrable
      Securities in connection with any such registration under the Securities
      Act.

     

    (c)  Promptly
      after receipt by a party entitled to claim indemnification hereunder (an
      "Indemnified
      Party")
      of
      notice of the commencement of any action, such Indemnified Party shall, if
      a
      claim for indemnification in respect thereof is to be made against a party
      hereto obligated to indemnify such Indemnified Party (an "Indemnifying
      Party"),
      notify the Indemnifying Party in writing thereof, but the omission so to notify
      the Indemnifying Party shall not relieve it from any liability which it may
      have
      to such Indemnified Party other than under this Section 5(c) and shall only
      relieve it from any liability which it may have to such Indemnified Party under
      this Section 5(c) if and to the extent the Indemnifying Party is prejudiced
      by
      such omission. In case any such action shall be brought against any Indemnified
      Party and it shall notify the Indemnifying Party of the commencement thereof,
      the Indemnifying Party shall be entitled to participate in and, to the extent
      it
      shall wish, to assume and undertake the defense thereof with counsel
      satisfactory to such Indemnified Party, and, after notice from the Indemnifying
      Party to such Indemnified Party of its election so to assume and undertake
      the
      defense thereof, the Indemnifying Party shall not be liable to such Indemnified
      Party under this Section 5(c) for any legal expenses subsequently incurred
      by
      such Indemnified Party in connection with the defense thereof; if the
      Indemnified Party retains its own counsel, then the Indemnified Party shall
      pay
      all fees, costs and expenses of such counsel, provided, however, that, if the
      defendants in any such action include both the indemnified party and the
      Indemnifying Party and the Indemnified Party shall have reasonably concluded
      that there may be reasonable defenses available to it which are different from
      or additional to those available to the Indemnifying Party or if the interests
      of the Indemnified Party reasonably may be deemed to conflict with the interests
      of the Indemnifying Party, the Indemnified Party shall have the right to select
      one separate counsel and to assume such legal defenses and otherwise to
      participate in the defense of such action, with the reasonable expenses and
      fees
      of such separate counsel and other expenses related to such participation to
      be
      reimbursed by the Indemnifying Party as incurred. 

     

    
      
         

      

      
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    (d)  In
      order
      to provide for just and equitable contribution in the event of joint liability
      under the Securities Act in any case in which either (i) the Purchaser, or
      any
      officer, director or controlling person of the Purchaser, makes a claim for
      indemnification pursuant to this Section 5 but it is judicially determined
      (by
      the entry of a final judgment or decree by a court of competent jurisdiction
      and
      the expiration of time to appeal or the denial of the last right of appeal)
      that
      such indemnification may not be enforced in such case notwithstanding the fact
      that this Section 5 provides for indemnification in such case, or (ii)
      contribution under the Securities Act may be required on the part of the
      Purchaser or such officer, director or controlling person of the Purchaser
      in
      circumstances for which indemnification is provided under this Section 5; then,
      and in each such case, the Company and the Purchaser will contribute to the
      aggregate losses, claims, damages or liabilities to which they may be subject
      (after contribution from others) in such proportion so that the Purchaser is
      responsible only for the portion represented by the percentage that the public
      offering price of its securities offered by the Registration Statement bears
      to
      the public offering price of all securities offered by such Registration
      Statement, provided, however, that, in any such case, (A) the Purchaser will
      not
      be required to contribute any amount in excess of the public offering price
      of
      all such securities offered by it pursuant to such Registration Statement;
      and
      (B) no person or entity guilty of fraudulent misrepresentation (within the
      meaning of Section 10(f) of the Act) will be entitled to contribution from
      any
      person or entity who was not guilty of such fraudulent
      misrepresentation.

     

    6.  Representations
      and Warranties.

     

    (a)  The
      Common Stock of the Company is registered pursuant to Section 12(b) or 12(g)
      of
      the Exchange Act and the Company has timely filed all proxy statements, reports,
      schedules, forms, statements and other documents required to be filed by it
      under the Exchange Act. The Company filed: (i) its Annual Report on Form 10-KSB
      for its fiscal year ended December 31, 2004, (ii) its Quarterly Reports on
      Form
      10-QSB for its fiscal quarters ended March 31, 2005, June 30, 2005 and September
      30, 2005 and (iii) the Form 8-K filings which it has made during the fiscal
      year
      2005 and 2006 to date (collectively, the "SEC
      Reports").
      To
      the best of the Company’s knowledge, each SEC Report was, at the time of its
      filing, in substantial compliance with the requirements of its respective form
      and none of the SEC Reports contain any untrue statement of a material fact
      or
      omit to state a material fact required to be stated therein or necessary to
      make
      the statements therein not misleading in light of the circumstances when made..
      The financial statements of the Company included in the SEC Reports comply
      as to
      form in all material respects with applicable accounting requirements and the
      published rules and regulations of the Commission or other applicable rules
      and
      regulations with respect thereto. Such financial statements have been prepared
      in accordance with generally accepted accounting principles ("GAAP")
      applied on a consistent basis during the periods involved (except (i) as may
      be
      otherwise indicated in such financial statements or the notes thereto or (ii)
      in
      the case of unaudited interim statements, to the extent they may not include
      footnotes or may be condensed) and fairly present in all material respects
      the
      financial condition, the results of operations and the cash flows of the Company
      and its subsidiaries, on a consolidated basis, as of, and for, the periods
      presented in each such SEC Report. To the best of the Company’s knowledge, the
      Company is eligible to use a Form S-3 Registration Statement to register the
      Registrable Securities.

     

    
      
         

      

      
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    (b)  The
      Common Stock is listed for trading on the American Stock Exchange and satisfies
      all requirements for the continuation of such listing. The Company has not
      received any notice that its Common Stock will be delisted from the American
      Stock Exchange (except for prior notices which have been fully remedied) or
      that
      the Common Stock does not meet all requirements for the continuation of such
      listing.

     

    (c)  Neither
      the Company, nor any of its affiliates, nor any person acting on its or their
      behalf, has directly or indirectly made any offers or sales of any security
      or
      solicited any offers to buy any security under circumstances that would cause
      the offering of the Securities pursuant to the Purchase Agreement to be
      integrated with prior offerings by the Company for purposes of the Securities
      Act which would prevent the Company from selling the Common Stock pursuant
      to
      Rule 506 under the Securities Act, or any applicable exchange-related
      stockholder approval provisions, nor will the Company or any of its affiliates
      or subsidiaries take any action or steps that would cause the offering of such
      Securities to be integrated with other offerings.

     

    (d)  The
      Series A Preferred Stock and the Warrants and the shares of Common Stock which
      the Purchaser may acquire pursuant to the Series A Preferred Stock and the
      Warrants are all restricted securities under the Securities Act as of the date
      of this Agreement. The Company will not issue any stop transfer order or other
      order impeding the sale and delivery of any of the Registrable Securities at
      such time as such Registrable Securities are registered for public sale or
      an
      exemption from registration is available, except as required by federal or
      state
      securities laws.

     

    (e)  The
      Company understands the nature of the Registrable Securities issuable upon
      conversion of the Series A Preferred Stock and exercise of the Warrants and
      recognizes that the issuance of such Registrable Securities may have a potential
      dilutive effect. The Company specifically acknowledges that its obligation
      to
      issue the Registrable Securities is binding upon the Company and enforceable
      regardless of the dilution such issuance may have on the ownership interests
      of
      other shareholders of the Company.

     

    
      
         

      

      
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    (f)  Except
      for agreements made in the ordinary course of business, there is no agreement
      that has not been filed with the Commission as an exhibit to a registration
      statement or to a form required to be filed by the Company under the Exchange
      Act, the breach of which could reasonably be expected to have a material and
      adverse effect on the Company and its subsidiaries, or would prohibit or
      otherwise interfere with the ability of the Company to enter into and perform
      any of its obligations under this Agreement in any material
      respect.

     

    (g)  The
      Company will at all times have authorized and reserved a sufficient number
      of
      shares of Common Stock for the full conversion of the Series A Preferred Stock
      and the exercise of the Warrants.

     

    7.  Miscellaneous.

     

    (a)  Remedies.
      In the
      event of a breach by the Company or by a Holder, of any of their respective
      obligations under this Agreement, each Holder or the Company, as the case may
      be, in addition to being entitled to exercise all rights granted by law and
      under this Agreement, including recovery of damages, will be entitled to
      specific performance of its rights under this Agreement. 

     

    (b)  No
      Piggyback on Registrations.
      Except
      as and to the extent specified in Schedule 7(b)
      hereto,
      neither the Company nor any of its security holders (other than the Holders
      in
      such capacity pursuant hereto) may include securities of the Company in any
      Registration Statement other than the Registrable Securities, and the Company
      shall not after the date hereof enter into any agreement providing any such
      right for inclusion of shares in the Registration Statement to any of its
      security holders. Except as and to the extent specified in Schedule 7(b) hereto,
      the Company has not previously entered into any agreement granting any
      registration rights with respect to any of its securities to any Person that
      have not been fully satisfied. 

     

    (c)  Compliance.
      Each
      Holder covenants and agrees that it will comply with the prospectus delivery
      requirements of the Securities Act as applicable to it in connection with sales
      of Registrable Securities pursuant to the Registration Statement.

     

    (d)  Discontinued
      Disposition.
      Each
      Holder agrees by its acquisition of such Registrable Securities that, upon
      receipt of a notice from the Company of the occurrence of a Discontinuation
      Event (as defined below), such Holder will forthwith discontinue disposition
      of
      such Registrable Securities under the applicable Registration Statement until
      such Holder's receipt of the copies of the supplemented Prospectus and/or
      amended Registration Statement or until it is advised in writing (the
      "Advice")
      by the
      Company that the use of the applicable Prospectus may be resumed, and, in either
      case, has received copies of any additional or supplemental filings that are
      incorporated or deemed to be incorporated by reference in such Prospectus or
      Registration Statement. The Company may provide appropriate stop orders to
      enforce the provisions of this paragraph. For purposes of this Section 7(d),
      a
      "Discontinuation
      Event"
      shall
      mean (i) when the Commission notifies the Company whether there will be a
      "review" of such Registration Statement and whenever the Commission comments
      in
      writing on such Registration Statement (the Company shall provide true and
      complete copies thereof and all written responses thereto to each of the
      Holders); (ii) any request by the Commission or any other Federal or state
      governmental authority for amendments or supplements to such Registration
      Statement or Prospectus or for additional information; (iii) the issuance by
      the
      Commission of any stop order suspending the effectiveness of such Registration
      Statement covering any or all of the Registrable Securities or the initiation
      of
      any Proceedings for that purpose; (iv) the receipt by the Company of any
      notification with respect to the suspension of the qualification or exemption
      from qualification of any of the Registrable Securities for sale in any
      jurisdiction, or the initiation or threatening of any Proceeding for such
      purpose; and/or (v) the occurrence of any event or passage of time that makes
      the financial statements included in such Registration Statement ineligible
      for
      inclusion therein or any statement made in such Registration Statement or
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference untrue in any material respect or that requires any revisions to
      such
      Registration Statement, Prospectus or other documents so that, in the case
      of
      such Registration Statement or Prospectus, as the case may be, it will not
      contain any untrue statement of a material fact or omit to state any material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not
      misleading.

     

    
      
         

      

      
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    (e)  Piggy-Back
      Registrations.
      If at
      any time during the Effectiveness Period there is not an effective Registration
      Statement covering all of the Registrable Securities and the Company shall
      determine to prepare and file with the Commission a registration statement
      relating to an offering for its own account or the account of others under
      the
      Securities Act of any of its equity securities, other than on Form S-4 or Form
      S-8 (each as promulgated under the Securities Act) or their then equivalents
      relating to equity securities to be issued solely in connection with any
      acquisition of any entity or business or equity securities issuable in
      connection with stock option or other employee benefit plans, then the Company
      shall send to each Holder written notice of such determination and, if within
      fifteen days after receipt of such notice, any such Holder shall so request
      in
      writing, the Company shall include in such registration statement all or any
      part of such Registrable Securities such holder requests to be registered to
      the
      extent the Company may do so without violating registration rights of others
      which exist as of the date of this Agreement, subject to customary underwriter
      cutbacks applicable to all holders of registration rights and subject to
      obtaining any required the consent of any selling stockholder(s) to such
      inclusion under such registration statement.

     

    (f)  Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and the Holders of the then outstanding Registrable
      Securities. Notwithstanding the foregoing, a waiver or consent to depart from
      the provisions hereof with respect to a matter that relates exclusively to
      the
      rights of certain Holders and that does not directly or indirectly affect the
      rights of other Holders may be given by Holders of at least a majority of the
      Registrable Securities to which such waiver or consent relates; provided,
      however, that the provisions of this sentence may not be amended, modified,
      or
      supplemented except in accordance with the provisions of the immediately
      preceding sentence.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (g)  Notices.
      Any
      notice or request hereunder may be given to the Company or the Purchaser at
      the
      respective addresses set forth below or as may hereafter be specified in a
      notice designated as a change of address under this Section 7(g). Any notice
      or
      request hereunder shall be given by registered or certified mail, return receipt
      requested, hand delivery, overnight mail, Federal Express or other national
      overnight next day carrier (collectively, "Courier") or telecopy (confirmed
      by
      mail). Notices and requests shall be, in the case of those by hand delivery,
      deemed to have been given when delivered to any party to whom it is addressed,
      in the case of those by mail or overnight mail, deemed to have been given three
      (3) business days after the date when deposited in the mail or with the
      overnight mail carrier, in the case of a Courier, the next business day
      following timely delivery of the package with the Courier, and, in the case
      of a
      telecopy, when confirmed. The address for such notices and communications shall
      be as follows:

     

    
      	
              If
                to the Company:

            	
              Conversion
                Services International, Inc. 

              100
                Eagle Rock Avenue

              East
                Hanover, New Jersey 07936

              Attention: Chief
                Financial Officer

              Facsimile: 973-581-7113

            
	 	 
	
              If
                to a Purchaser:

            	
              To
                the address set forth under such Purchaser name on the signature
                pages
                hereto.

            
	
               

            	 
	
              If
                to any other Person who is then the registered
                Holder:

            	
              To
                the address of such Holder as it appears in the stock transfer books
                of
                the Company

            

    

    

           
or
      such other address as may be designated in writing hereafter in accordance
      with
      this Section 7(g) by such Person.

     

    (h)  Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      permitted assigns of each of the parties and shall inure to the benefit of
      each
      Holder. The Company may not assign its rights or obligations hereunder without
      the prior written consent of each Holder. Each Holder may assign their
      respective rights hereunder in the manner and to the Persons as permitted under
      the Purchase Agreement.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (i)  Execution
      and Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

     

    (j)  Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by and construed and enforced in accordance
      with the internal laws of the State of Delaware, without regard to the
      principles of conflicts of law thereof. Each party agrees that all Proceedings
      concerning the interpretations, enforcement and defense of the transactions
      contemplated by this Agreement shall be commenced exclusively in the state
      and
      federal courts sitting in the State of
      New
      York. Each party hereto hereby irrevocably submits to the exclusive jurisdiction
      of the state and federal courts sitting in the State of New York for the
      adjudication of any dispute hereunder or in connection herewith or with any
      transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any Proceeding, any claim that it is not
      personally subject to the jurisdiction of any such court, that such Proceeding
      is improper. Each party hereto hereby irrevocably waives personal service of
      process and consents to process being served in any such Proceeding by mailing
      a
      copy thereof via registered or certified mail or overnight delivery (with
      evidence of delivery) to such party at the address in effect for notices to
      it
      under this Agreement and agrees that such service shall constitute good and
      sufficient service of process and notice thereof. Nothing contained herein
      shall
      be deemed to limit in any way any right to serve process in any manner permitted
      by law. Each party hereto hereby irrevocably waives, to the fullest extent
      permitted by applicable law, any and all right to trial by jury in any legal
      proceeding arising out of or relating to this Agreement or the transactions
      contemplated hereby. If either party shall commence a Proceeding to enforce
      any
      provisions of this Agreement, the Purchase Agreement or any ancillary agreement,
      then the prevailing party in such Proceeding shall be reimbursed by the other
      party for its reasonable attorneys’ fees and other costs and expenses incurred
      with the investigation, preparation and prosecution of such Proceeding.

     

    (k)  Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (l)  Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their reasonable efforts to
      find and employ an alternative means to achieve the same or substantially the
      same result as that contemplated by such term, provision, covenant or
      restriction. It is hereby stipulated and declared to be the intention of the
      parties that they would have executed the remaining terms, provisions, covenants
      and restrictions without including any of such that may be hereafter declared
      invalid, illegal, void or unenforceable.

     

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

     

    [BALANCE
      OF PAGE INTENTIONALLY LEFT BLANK;

    SIGNATURE
      PAGE FOLLOWS]

     

     

     

     

     

     

     

     

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above. 

     

    
      	 	CONVERSION
              SERVICES INTERNATIONAL, INC.	 	 	
              TAURUS
                ADVISORY GROUP, LLC 

            
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	 	 	
               By:

            	 
	 	
              

            	 	 	
              

            
	 	Name:     Scott
              Newman	 	 	Name:
	 	Title:      
              President
	 	 	Title:
	 	 	 	 	 
	 	 	 	 	 Address
              for Notices:
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Attention: 
	 	 	 	 	
              Facsimile: 

            

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    EXHIBIT
      A

     

    [Month
      __, 2006]

    

    
      	
              [Registrar
                and Transfer Co.

              10
                Commerce Drive

              Cranford,
                New Jersey 32377

              Attn:
                Dan
                Flynn

            	 

    

    

    
      	
              Re:

            	
              Conversion
                Services International, Inc. Registration Statement on Form S-3

            

    

     

    Ladies
      and Gentlemen:

     

    As
      counsel to Conversion Services International, Inc., a Delaware corporation
      (the
“Company”), we have been requested to render our opinion to you in connection
      with the resale by the individuals or entitles listed on Schedule A attached
      hereto (the “Selling Stockholders”), of an aggregate of [amount]shares (the
“Shares”) of the Company’s Common Stock.

     

    A
      Registration Statement on Form S-3 under the Securities Act of 1933, as amended
      (the “Act”), with respect to the resale of the Shares was declared effective by
      the Securities and Exchange Commission on [date]. Enclosed is the Prospectus
      dated [date]. We understand that the Shares are to be offered and sold in the
      manner described in the Prospectus.

     

    Based
      upon the foregoing, upon request by the Selling Stockholders at any time while
      the registration statement remains effective, it is our opinion that the Shares
      have been registered for resale under the Act and new certificates evidencing
      the Shares upon their transfer or re-registration by the Selling Stockholders
      may be issued without restrictive legend. We will advise you if the registration
      statement is not available or effective at any point in the future.

     

    
      	 	 	 
	 	Very
              truly yours,
	 
 	 
 	 
 
	 	 	 
	 	
              
[Company
              counsel]

    

     

    
      
         

      

        14Exhibit
      10.3

    

    THIS
      WARRANT AND ANY SHARES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT
      BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
      TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL SATISFACTORY
      TO
      THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

    

    CONVERSION
      SERVICES INTERNATIONAL, INC.

    

    COMMON
      STOCK PURCHASE WARRANT

    

    February
      2, 2006

    

    THIS
      COMMON STOCK PURCHASE WARRANT (this “Warrant”)
      of
      Conversion Services International, Inc., a corporation duly organized and
      validly existing under the laws of the State of Delaware (the “Company”),
      is
      issued to the Holder (as defined below).

    

    FOR
      VALUE
      RECEIVED, the Company hereby certifies that the registered holder hereof and
      its
      successors and assigns, Hare
      & Co.
      (the
“Holder”)
      is
      entitled to purchase from the Company 1,900,000 duly authorized, validly issued,
      fully paid and nonassessable shares of common stock of the Company, par value
      $.001 per share (the “Common
      Stock”),
      at a
      purchase price per share equal to $0.60, as may be adjusted to the anti-dilution
      provisions set forth herein (the “Warrant
      Price”).
      The
      person or entity in whose name this Warrant (or one or more predecessor
      Warrants) is registered on the records of the Company regarding registration
      and
      transfers of the Warrant (the “Warrant
      Register”)
      is the
      owner and holder thereof for all purposes, except as described in Section 11
      hereof.

    

    1. Vesting
      of Warrant.
      This
      Warrant shall vest and become exercisable as of the date hereof.

    

    2.
       Expiration
      of Warrant.
      This
      Warrant shall expire on January 30, 2011 (the “Expiration
      Date”).

    

    3.
       Exercise
      of Warrant.
      This
      Warrant shall be exercisable pursuant to the terms of Section 1 and this Section
      3 hereof.

    

                3.1
Manner
      of
      Exercise. This Warrant may only be exercised by the Holder hereof, in accordance
      with the terms and conditions hereof, in whole or in part with respect to any
      portion of the Warrant, into shares of Common Stock, during normal business
      hours on any day other than a Saturday or a Sunday or a day on which commercial
      banking institutions in New York, New York are authorized by law to be closed
      (a
“Business
      Day”)
      on or
      prior to the Expiration Date with respect to such portion of the Warrant, by
      surrender of this Warrant to the Company at its office maintained pursuant
      to
      Section 11.2(a) hereof, accompanied by an exercise notice in substantially
      the
      form attached to this Warrant as Exhibit
      A
      (or a
      reasonable facsimile thereof) duly executed by the Holder, together with the
      payment of the Warrant Price. Anything to the contrary not withstanding, in
      the
      event that the Company has not filed a Registration Statement under the
      Securities Act of 1933 (the “Act”)
      with
      the Securities and Exchange Commission on or before 90 days after the date
      hereof covering the shares issuable upon exercise of this Warrant or such

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    shares
      issuable upon conversion of any Series A Preferred Stock owned by the Holder,
      or
      such registration statement has not been declared effective by the Commission
      on
      or before October 31, 2006, the Holder shall have the right, at his election
      exercised in his sole discretion, to exercise the Warrant, in whole or in part,
      and, in lieu of making the cash payment otherwise contemplated to be made to
      the
      Company upon such exercise in payment of the Exercise Price, elect instead
      to
      receive upon such exercise the "Net Number" of shares of Common Stock determined
      according to the following formula (a "Cashless
      Exercise"):
      

     

     

    
      	
               Net
                Number = 

            	
               (A
                x B) - (A x C)

            
	 	          
              B

    

     

    For
      purposes of the foregoing formula: 

    

    A
      = the
      total number of shares with respect to which this Warrant is then being
      exercised.

     

    B
      = the
      Closing Sale Price of the Common Stock on the trading day immediately preceding
      the date of the Exercise Notice. 

     

    C
      = the
      Warrant Exercise Price then in effect for the applicable Warrant Shares at
      the
      time of such exercise.

    

    Even
      if
      the Company fails to file a Registration Statement covering the shares issuable
      upon exercise of this Warrant or such shares issuable upon conversion of any
      Series A Preferred Stock owned by the Holder within 90 days, or a Registration
      Statement has not been declared effective by October 31, 2006, at any point
      in
      time a Registration Statement becomes effective, then the Cashless Exercise
      provision above shall no longer apply to this Warrant.

    

    3.2
        When
      Exercise Effective. Each exercise of this Warrant shall be deemed to have been
      effected immediately prior to the close of business on the Business Day on
      which
      this Warrant shall have been surrendered to the Company as provided in Section
      3.1 hereof, and, at such time, the corporation, association, partnership,
      organization, business, individual, government or political subdivision thereof
      or a governmental agency (a “Person”
or
      the
“Persons”)
      in
      whose name or names any certificate or certificates for shares of Common Stock
      shall be issuable upon exercise as provided in Section 3.3 hereof shall be
      deemed to have become the holder or holders of record thereof. 

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    3.3
        Delivery
      of Stock Certificates. As soon as practicable after each exercise of this
      Warrant, in whole or in part, and in any event within fifteen (15) Business
      Days
      thereafter, the Company at its expense (including the payment by it of any
      applicable issue taxes) will cause to be issued in the name of and delivered
      to
      the Holder hereof or, subject to Section 10 hereof, as the Holder (upon payment
      by the Holder of any applicable transfer taxes) may direct:

    

    (a)
      a
      certificate or certificates (with appropriate restrictive legends, as
      applicable) for the number of duly authorized, validly issued, fully paid and
      nonassessable shares of Common Stock to which the Holder shall be entitled
      upon
      exercise plus, in lieu of any fractional share to which the Holder would
      otherwise be entitled, all issuances of Common Stock shall be rounded up to
      the
      nearest whole share.

    

    (b)
      in
      case exercise is in part only, a new Warrant of like tenor, dated the date
      hereof and calling in the aggregate on the face thereof for the number of shares
      of Common Stock equal to the number of shares called for on the face of this
      Warrant minus the number of shares designated by the Holder upon exercise as
      provided in Section 3.1 hereof (without giving effect to any adjustment
      thereof).

    

    3.4  Company
      to Reaffirm Obligations. The Company will, at the time of each exercise of
      this
      Warrant, upon the written request of the Holder hereof, acknowledge in writing
      its continuing obligation to afford to the Holder all rights (including without
      limitation any rights to registration of the shares of Common Stock issued
      upon
      exercise) to which the Holder shall continue to be entitled after exercise
      in
      accordance with the terms of this Warrant; provided,
      however,
      that if
      the Holder shall fail to make a request, the failure shall not affect the
      continuing obligation of the Company to afford the rights to such
      Holder.

    

    4.
       Adjustment
      of Common Stock Issuable Upon Exercise.
      The
      Warrant Price shall be subject to be adjusted and re-adjusted from time to
      time
      as provided in this Section 4 and, as so adjusted or re-adjusted, shall remain
      in effect until a further adjustment or re-adjustment thereof is required by
      this Section 4:

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    4.1
        Stock
      Dividends; Stock Splits. In case the Company at any time or from time to time
      after the date hereof shall declare or pay any dividend or otherwise make a
      distribution or distributions on shares of its Junior Securities (as defined
      in
      the Certificate of Designations of Preferences, Rights and Limitations of Series
      A Convertible Preferred Stock or the Company dated the date hereof) or
pari
      passu
      securities payable in shares of Common Stock on the Common Stock payable in
      Common Stock, or shall effect a subdivision of the outstanding shares of Common
      Stock into a greater number of shares of Common Stock (by reclassification
      or
      otherwise than by payment of a dividend in Common Stock), then, and in each
      case, subject to Section 4.3 hereof, the Warrant Price shall be reduced,
      concurrently with the dividend or subdivision, to a price determined by
      multiplying the Warrant Price by a fraction:

    

    (a)
      the
      numerator of which shall be the number of shares of Common Stock outstanding
      immediately prior to the dividend or subdivision; and 

    

    (b)
      the
      denominator of which shall be the number of shares of Common Stock outstanding
      immediately after the dividend or subdivision.

    

               Additional
      shares of Common Stock shall be deemed to have been issued and to be outstanding
      (a) in the case of any dividend, immediately after the close of business on
      the
      record date for the determination of holders of any class of securities entitled
      to receive the dividend, or (b) in the case of any subdivision, at the close
      of
      business on the day immediately prior to the day upon which the corporate action
      becomes effective. Additional shares of Common Stock deemed to have been issued
      pursuant to this Section 4.1 shall be deemed to have been issued for no
      consideration.

    

    4.2  Adjustments
      for Combinations. In case the outstanding shares of Common Stock shall be
      combined or consolidated, by reclassification or otherwise, into a lesser number
      of shares of Common Stock, the Warrant Price in effect immediately prior to
      the
      combination or consolidation shall, concurrently with the effectiveness of
      such
      combination or consolidation, be proportionately increased. Adjustment under
      this Section 4.2 shall become effective at the close of business on the day
      immediately prior to the day upon which the corporate action becomes
      effective.

    

    4.3
        Minimum
      Adjustment of Warrant Price. If the amount of any adjustment of the Warrant
      Price required pursuant to this Section 4 would be less than one percent (1%)
      of
      the Warrant Price in effect at the time of the adjustment is otherwise so
      required to be made, the amount shall be carried forward and adjustment with
      respect thereto made at the time of and together with any subsequent adjustment
      which, together with the amount and any other amount or amounts so carried
      forward, shall aggregate at least one percent (1%) of the Warrant
      Price.

    

    5.  Adjustments
      for Consolidation, Merger, Sale of Assets or Reorganization.
      In case
      the Company after the date hereof (a) shall consolidate with or merge into
      any
      other Person and shall not be the continuing or surviving corporation following
      the consolidation or merger, or (b) shall permit any other Person to consolidate
      with or merge into the Company and the Company shall be the continuing or
      surviving Person but, in connection with the consolidation or merger, the Common
      Stock shall be changed into or exchanged for stock or other securities of any
      other Person or cash or any other property, or (c) shall transfer all or
      substantially all of its properties or assets to any other Person, or (d) shall
      effect a capital reorganization or reclassification of the Common Stock, then,
      and in the case of each such transaction, proper provision shall be made so
      that, upon the basis and the terms and in the manner provided in this Warrant,
      the Holder, upon the exercise hereof at any time after the consummation of
      the
      transaction, shall be entitled to receive (at the aggregate Warrant Price in
      effect at the time of such consummation for all Common Stock issuable upon
      exercise immediately prior to the consummation), in lieu of the Common Stock
      issuable upon exercise prior to the consummation, the greatest amount of
      securities, cash or other property to which the Holder would actually have
      been
      entitled as a stockholder upon such consummation if the Holder had exercised
      the
      rights represented by this Warrant immediately prior thereto, subject to
      adjustments (subsequent to the consummation) as nearly equivalent as possible
      to
      the adjustments provided for in Sections 4 and 5 hereof.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    6.
       No
      Dilution or Impairment.

    

    6.1  The
      Company will not, by amendment of its certificate of incorporation or through
      any consolidation, merger, reorganization, transfer of assets, dissolution,
      issue or sale of securities or any other voluntary action, avoid or seek to
      avoid the observance or performance of any of the terms of this Warrant, but
      will at all times in good faith assist in the carrying out of all of the terms
      and in the taking of all actions necessary or appropriate in order to protect
      the rights of the Holder. Without limiting the generality of the foregoing,
      the
      Company (a) will not permit the par value of any shares of Common Stock
      receivable upon the exercise of this Warrant to exceed the amount payable
      therefor upon exercise, (b) will take all actions necessary or appropriate
      in
      order that the Company may validly and legally issue fully paid and
      nonassessable shares of Common Stock on the exercise of the Warrant and (c)
      will
      not take any action which results in any adjustment of the Warrant Price if
      the
      total number of shares of Common Stock issuable after the action upon the
      exercise of the Warrant would exceed the total number of shares of Common Stock
      then authorized by the Company's certificate of incorporation and available
      for
      the purpose of issuance upon exercise.

    

    6.2  The
      Company acknowledges that its obligation to issue shares of Common Stock
      issuable upon exercise of this Warrant is binding upon it and enforceable
      regardless of the dilution that such issuance may have on the ownership
      interests of other stockholders.

    

    7.
       Chief
      Financial Officer’s Report as to Adjustments.
      In the
      case of any adjustment or re-adjustment in the shares of Common Stock issuable
      upon the exercise of this Warrant, the Company at its expense will promptly
      compute the adjustment or re-adjustment in accordance with the terms of this
      Warrant and cause its Chief Financial Officer to certify the computation (other
      than any computation of the fair value of property as determined in good faith
      by the Board of Directors of the Company) and prepare a report setting forth
      the
      adjustment or re-adjustment and showing in reasonable detail the method of
      calculation thereof and the facts upon which the adjustment or re-adjustment
      is
      based, including a statement of (a) the number of shares of Common Stock
      outstanding or deemed to be outstanding and (b) the Warrant Price in effect
      immediately prior to the deemed issuance or sale and as adjusted and re-adjusted
      (if required by Section 4 hereof) on account thereof. The Company will forthwith
      mail a copy of each report to each holder of a Warrant and will, upon the
      written request at any time of any holder of a Warrant, furnish to the holder
      a
      like report setting forth the Warrant Price at the time in effect and showing
      in
      reasonable detail how it was calculated. The Company will also keep copies
      of
      all reports at its office maintained pursuant to Section 11.2(a) hereof and
      will
      cause them to be available for inspection at the office during normal business
      hours upon reasonable notice by any holder of a Warrant or any prospective
      purchaser of a Warrant designated by the holder thereof.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    8. Reservation
      of Shares.
      The
      Company shall at all times reserve and keep available out of its authorized
      but
      unissued shares of Common Stock, free from all taxes, liens and charges with
      respect to the issue thereof and not be subject to preemptive rights or other
      similar rights of stockholders of the Company, solely for the purpose of
      effecting the exercise of this Warrant, such number of its shares of Common
      Stock as shall from time to time be sufficient to effect the exercise thereof,
      and if at any time the number of authorized but unissued shares of Common Stock
      shall not be sufficient to effect the exercise of this Warrant, in addition
      to
      such other remedies as shall be available to Holder, the Company will take
      such
      corporate action as may, in the opinion of its counsel, be necessary to increase
      the number of authorized but unissued shares of Common Stock to such number
      of
      shares as shall be sufficient for such purposes, including without limitation,
      using its best efforts to obtain the requisite stockholder approval necessary
      to
      increase the number of authorized shares of the Company’s Common Stock. All
      shares of Common Stock issuable upon exercise of the Warrant shall be duly
      authorized and, when issued upon exercise, shall be validly issued and, in
      the
      case of shares, fully paid and nonassessable.

    

    9. Listing.
      The
      Company shall at all times comply in all respects with the Company’s reporting,
      filing and other obligations under the by-laws or rules of the upon each
      national securities exchange or automated quotation system upon which shares
      of
      Common Stock are then listed and shall list the shares issuable upon the
      exercise of this Warrant on such national securities exchange.

    

    10.
       Restrictions
      on Transfer.

    

    10.1
       Restrictive
      Legends. This Warrant and each Warrant issued upon transfer or in substitution
      for this Warrant pursuant to Section 11, each certificate for Common Stock
      issued upon the exercise of any Warrant and each certificate issued upon the
      transfer of any such Common Stock shall be transferable only upon satisfaction
      of the conditions specified in this Section 10. Each of the foregoing securities
      shall be stamped or otherwise imprinted with a legend reflecting the
      restrictions on transfer set forth in Section 10 hereof and any restrictions
      required under the Act.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    10.2 Notice
      of
      Proposed Transfer; Opinion of Counsel. Prior to any transfer of any securities
      that are not registered under an effective registration statement under the
      Act
      (“Restricted
      Securities”),
      the
      Holder will give written notice to the Company of the Holder's intention to
      affect a transfer and to comply in all other respects with this Section 10.2.
      Each notice (a) shall describe the manner and circumstances of the proposed
      transfer, and (b) shall designate counsel for the Holder giving the notice
      (who
      may be in-house counsel for the Holder). The Holder giving notice will submit
      a
      copy thereof to the counsel designated in the notice. The following provisions
      shall then apply:

    

    (i)
      If in
      the opinion of counsel for the Holder reasonably satisfactory to the Company
      the
      proposed transfer (i.e. private sale of Restricted Securities) may be effected
      without registration of Restricted Securities under the Act (which opinion
      shall
      state the basis of the legal conclusions reached therein), the Holder shall
      thereupon be entitled to transfer the Restricted Securities in accordance with
      the terms of the notice delivered by the Holder to the Company. Each certificate
      representing the Restricted Securities issued upon or in connection with any
      transfer shall bear the restrictive legends required by Section 10.1
      hereof.

    

    (ii)
      If
      the opinion called for in (i) above is not delivered, the Holder shall not
      be
      entitled to transfer the Restricted Securities until either (x) receipt by
      the
      Company of a further notice from such Holder pursuant to the foregoing
      provisions of this Section 10.2 and fulfillment of the provisions of clause
      (i)
      above, or (y) such Restricted Securities have been effectively registered under
      the Act.

     

               10.3
       Termination
      of Restrictions. The restrictions imposed by this Section 10 upon the
      transferability of Restricted Securities shall cease and terminate as to any
      particular Restricted Securities: (a) which Restricted Securities shall have
      been effectively registered under the Act, or (b) when, in the opinions of
      both
      counsel for the holder thereof and counsel for the Company, which opinion shall
      not be unreasonably withheld, such restrictions are no longer required in order
      to insure compliance with the Act or Section 11 hereof. Whenever such
      restrictions shall cease and terminate as to any Restricted Securities, the
      Holder thereof shall be entitled to receive from the Company, without expense
      (other than applicable transfer taxes, if any), new securities of like tenor
      not
      bearing the applicable legends required by Section 10.1 hereof.

    

    11.
       Ownership,
      Transfer and Substitution of Warrant.

    

               11.1
       Ownership
      of Warrant. The Company may treat the person in whose name this Warrant is
      registered to in the Warrant Register maintained pursuant to Section 11.2(a)
      hereof as the owner and holder thereof for all purposes, notwithstanding any
      notice to the contrary, except that, if and when any Warrant is properly
      assigned by a notice in substantially the form attached to this Warrant as
      Exhibit
      B
      (or a
      reasonable facsimile thereof) duly executed by the Holder in blank, the Company
      shall treat the bearer thereof as the owner of such Warrant for all purposes,
      notwithstanding any notice to the contrary. Subject to Section 10 hereof, this
      Warrant, if properly assigned, may be exercised by a new holder without a new
      Warrant first having been issued.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    11.2
       Office;
      Transfer and Exchange of Warrant.

    

    (a)
      The
      Company will maintain an office (which may be an agency maintained at a bank)
      at
      100 Eagle Rock Avenue, East Hanover, New Jersey 07936 (until the Company
      notifies the Holder of any change of location of the office) where notices,
      presentations and demands in respect of this Warrant may be made upon
      it.

    

    (b)
      The
      Company shall cause to be kept at its office maintained pursuant to Section
      11.2(a) hereof a Warrant Register for the registration and transfer of the
      Warrant. The names and addresses of holders of the Warrant, the transfers
      thereof and the names and addresses of transferees of the Warrant shall be
      registered in such Warrant Register. The Person in whose name any Warrant shall
      be so registered shall be deemed and treated as the owner and holder thereof
      for
      all purposes of this Warrant, and the Company shall not be affected by any
      notice or knowledge to the contrary.

    

    (c)
      Upon
      the surrender of this Warrant, properly endorsed, for registration of transfer
      or for exchange at the office of the Company maintained pursuant to Section
      11.2(a) hereof, the Company at its expense will (subject to compliance with
      Section 10 hereof, if applicable) execute and deliver to or upon the order
      of
      the Holder thereof a new Warrant of like tenor, in the name of such holder
      or as
      such holder (upon payment by such holder of any applicable transfer taxes)
      may
      direct, calling in the aggregate on the face thereof for the number of shares
      of
      Common Stock called for on the face of the Warrant so surrendered.

    

    11.3
       Replacement
      of Warrant. Upon receipt of evidence reasonably satisfactory to the Company
      of
      the loss, theft, destruction or mutilation of the Warrant and, in the case
      of
      any such loss, theft or destruction of the Warrant, upon delivery of indemnity
      reasonably satisfactory to the Company in form and amount or, in the case of
      any
      mutilation, upon surrender of the Warrant for cancellation at the office of
      the
      Company maintained pursuant to Section 11.2(a) hereof, the Company at its
      expense will execute and deliver, in lieu thereof, a new Warrant of like tenor
      and dated the date hereof.

    

    11.4
       Restrictions
      on Transfer. In addition to the restrictions on transfer set forth in Section
      10
      hereof, neither the Warrant nor any portion of the Warrant may be transferred
      without the consent of the Company, which consent shall not be unreasonably
      withheld.

    

    12.
       No
      Rights or Liabilities as Stockholder.
      Except
      as
      may otherwise be provided herein, no Holder shall be entitled to vote or receive
      dividends or be deemed the holder of any shares of Common Stock or any other
      securities of the Company which may at any time be issuable on the exercise
      hereof for any purpose, nor shall anything contained herein be construed to
      confer upon the Holder, as such, any of the rights of a stockholder of the
      Company or any right to vote for the election of directors or upon any matter
      submitted to stockholders at any meeting thereof, or to give or withhold consent
      to any corporate action (whether upon any recapitalization, issuance of stock,
      reclassification of stock, change of par value, consolidation, merger,
      conveyance, or otherwise) or to receive notice of meetings, or to receive
      dividends or subscription rights or otherwise until the Warrant shall have
      been
      exercised and the shares of Common Stock purchasable upon the exercise hereof
      shall have become deliverable, as provided herein. The Holder will not be
      entitled to share in the assets of the Company in the event of liquidation,
      dissolution or the winding up of the Company.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    13.
       Notices.
      Any
      notice or other communication in connection with this Warrant shall be deemed
      to
      be given if in writing (or in the form of a facsimile) addressed as hereinafter
      provided and actually delivered at said address: (a) if to any Holder, at the
      registered address of such holder as set forth in the Warrant Register kept
      at
      the office of the Company maintained pursuant to Section 11.2(a) hereof, or
      (b)
      if to the Company, to the attention of its Chief Financial Officer at its office
      maintained pursuant to Section 11.2(a) hereof; provided,
      however,
      that
      the exercise of any Warrant shall be effective in the manner provided in Section
      3 hereof.

    

    14. Payment
      of Taxes.
      The
      Company will pay all documentary stamp taxes attributable to the issuance of
      shares of Common Stock underlying this Warrant upon exercise of this Warrant;
      provided,
      however,
      that
      the Company shall not be required to pay any tax which may be payable in respect
      of any transfer involved in the registration of any certificate for shares
      of
      Common Stock underlying this Warrant in a name other that of the Holder. The
      Holder is responsible for all other tax liability that may arise as a result
      of
      holding or transferring this Warrant or receiving shares of Common Stock
      underlying this Warrant upon exercise hereof.

    

    15. Warrant
      Agent.
      The
      Company shall serve as warrant agent under this Warrant. Upon thirty (30) days
      notice to the Holder, the Company may appoint a new warrant agent. Any
      corporation into which the Company or any new warrant agent may be merged or
      any
      corporation resulting from any consolidation to which the Company or any new
      warrant agent shall be a party or any corporation to which the Company or any
      new warrant agent transfers substantially all of its corporate trust or
      stockholders services business shall be successor warrant agent under this
      Warrant without any further act. Any such successor warrant agent shall promptly
      cause notice of its succession as warrant agent to be mailed (by first class
      mail, postage prepaid) to the Holder at the Holder’s last address as shown on
      the Warrant Register.

    

    16. Miscellaneous.
      This
      Warrant and any term hereof may be changed, waived, discharged or terminated
      only by an instrument in writing signed by the party against which enforcement
      of the change, waiver, discharge or termination is sought. This Warrant shall
      be
      construed and enforced in accordance with and governed by the laws of the State
      of Delaware. The section headings in this Warrant are for purposes of
      convenience only and shall not constitute a part hereof.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Common Stock Purchase Warrant
      to be
      duly executed as of the date first above written.

     

    
      
        	 	 	 
	 	CONVERSION
                SERVICES INTERNATIONAL, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Scott
                Newman
	 	
                
Name:
 Scott
                Newman
	 	Title:
                 President
                and Chief Executive
                Officer

      

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    FORM
      OF
      EXERCISE NOTICE

    

    [To
      be
      executed only upon conversion of Warrant]

    

    

    To
      CONVERSION SERVICES INTERNATIONAL, INC.:

    

        The
      undersigned registered holder of the within Warrant hereby irrevocably exercises
      the Warrant pursuant to Section 3.1 of the Warrant with respect to __________(1)
      shares of the Common Stock, at an exercise price per share of Common Stock
      of
      $____, which the holder would be entitled to receive upon the cash exercise
      hereof, and requests that the certificates for the shares be issued in the
      name
      of, and delivered to, whose address is:

     

    
       

      
        	 	 	 
	 
 	 
 	 
 
	Date: _______________ 	 	 
	 	
                
Print
                or Type Name
	 	 
	 	 

                
(Signature
                must conform in all respects to name of holder as
                specified on the face of Warrant)
	 	 
	 	 

                
(Street
                Address)
	 	 
	 	 
	 	
                
(City)
                (State) (Zip
                Code)

      

       

    

    _______________________

    (1)
      Insert here the number of shares called for on the face of this Warrant (or,
      in
      the case of a partial exercise, the portion thereof as to which this Warrant
      is
      being exercised), in either case without making any adjustment of shares of
      Common Stock or any other stock or other securities or property or cash which,
      pursuant to the adjustment provisions of this Warrant, may be delivered upon
      exercise. In the case of a partial exercise, a new Warrant or Warrants will
      be
      issued and delivered, representing the unconverted portion of the Warrant,
      to
      the holder surrendering the Warrant.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    FORM
      OF
      ASSIGNMENT

    

    [To
      be
      executed only upon transfer of Warrant]

    

    For
      value
      received, the undersigned registered holder of the within Warrant hereby sells,
      assigns and transfers unto _____________________ the right represented by the
      Warrant to purchase __________(1) shares of Common Stock of CONVERSION SERVICES
      INTERNATIONAL, INC. to which the Warrant relates, and appoints
      _____________________ Attorney to make such transfer on the books of CONVERSION
      SERVICES INTERNATIONAL, INC. maintained for the purpose, with full power of
      substitution in the premises.

     

    
      	 	 	 
	 
 	 
 	 
 
	Date: _______________ 	 	 
	 	
              
(Signature
              must conform in all respects to name of holder as
              specified on the face of Warrant)
	 	 
	 	 

              
(Street
              Address)
	 	 
	 	 

              
(City)
              (State) (Zip Code)
	Signed in the presence of:	 
	 	 
	 	
              
(Signature
              of Transferee)
	 	 
	 	 

              
(Street
              Address)
	 	 
	 	 

              
(City)
              (State) (Zip Code)

    

     

    _______________________

    (1)
      Insert here the number of shares called for on the face of this Warrant (or,
      in
      the case of a partial exercise, the portion thereof as to which this Warrant
      is
      being exercised), in either case without making any adjustment of shares of
      Common Stock or any other stock or other securities or property or cash which,
      pursuant to the adjustment provisions of this Warrant, may be delivered upon
      exercise. In the case of a partial exercise, a new Warrant or Warrants will
      be
      issued and delivered, representing the unexercised portion of the Warrant,
      to
      the holder surrendering the Warrant.

     

    
      
        
        

      

      12

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