Document:

THIS WARRANT AND THE SHARES OF COMMON STOCK  ISSUABLE  UPON EXERCISE OF
         THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
         AS AMENDED,  OR ANY STATE  SECURITIES LAWS. THIS WARRANT AND THE COMMON
         STOCK  ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,  OFFERED
         FOR SALE,  PLEDGED  OR  HYPOTHECATED  IN THE  ABSENCE  OF AN  EFFECTIVE
         REGISTRATION  STATEMENT  AS TO  THIS  WARRANT  UNDER  SAID  ACT AND ANY
         APPLICABLE  STATE  SECURITIES LAWS OR AN OPINION OF COUNSEL  REASONABLY
         SATISFACTORY  TO  CONVERSION  SERVICES  INTERNATIONAL,  INC.  THAT SUCH
         REGISTRATION IS NOT REQUIRED.

             Right to Purchase 12,000,000 Shares of Common Stock of
                    Conversion Services International, Inc.
                   (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No. _________________                               Issue Date:  August 16, 2004

      CONVERSION SERVICES INTERNATIONAL, INC., a corporation organized under the
laws of the  State of  Delaware  ("CSII"),  hereby  certifies  that,  for  value
received,  LAURUS  MASTER FUND,  LTD., or assigns (the  "Holder"),  is entitled,
subject to the terms set forth below,  to purchase  from the Company (as defined
herein)  from and after the Issue Date of this  Warrant  and at any time or from
time to time  before  5:00 p.m.,  New York time,  through  the close of business
August  15,  2011 (the  "Expiration  Date"),  up to  12,000,000  fully  paid and
nonassessable shares of Common Stock (as hereinafter defined),  $0.001 par value
per share, at the applicable  Exercise Price per share (as defined  below).  The
number and character of such shares of Common Stock and the applicable  Exercise
Price per share are subject to adjustment as provided herein.

      As used herein the following terms, unless the context otherwise requires,
have the following respective meanings:

            (a) The term "Company" shall include CSII and any corporation  which
      shall succeed, or assume the obligations of, CSII hereunder.

            (b) The term "Common Stock" includes (i) the Company's Common Stock,
      par value 0.01 per share;  and (ii) any other securities into which or for
      which any of the securities described in (a) may be converted or exchanged
      pursuant to a plan of  recapitalization,  reorganization,  merger, sale of
      assets or otherwise.

            (c) The term  "Other  Securities"  refers to any stock  (other  than
      Common  Stock) and other  securities  of the  Company or any other  person

<PAGE>

      (corporate or otherwise) which the holder of the Warrant at any time shall
      be entitled to receive,  or shall have  received,  on the  exercise of the
      Warrant,  in lieu of or in addition to Common Stock,  or which at any time
      shall  be  issuable  or shall  have  been  issued  in  exchange  for or in
      replacement of Common Stock or Other  Securities  pursuant to Section 4 or
      otherwise.

            (d) The "Exercise  Price"  applicable under this Warrant shall be as
      follows:

                  (i) a price of $0.29  [125% of the  average  closing  price of
            Common Stock for the ten (10) trading days immediately  prior to the
            date hereof] for the first 6,000,000 shares acquired hereunder;

                  (ii) a price of $0.31  [135% of the average  closing  price of
            Common Stock for the ten (10) trading days immediately  prior to the
            date hereof] for the next 3,000,000 shares acquired hereunder; and

                  (iii) a price of $0.35 [150% of the average  closing  price of
            Common Stock for the ten (10) trading days immediately  prior to the
            date hereof] for any additional shares acquired hereunder.

      1. Exercise of Warrant.

            1.1 Number of Shares Issuable upon Exercise. From and after the date
hereof through and including the  Expiration  Date, the Holder shall be entitled
to receive, upon exercise of this Warrant in whole or in part, by delivery of an
original  or fax copy of an  exercise  notice  in the form  attached  hereto  as
Exhibit  A (the  "Exercise  Notice"),  shares of  Common  Stock of the  Company,
subject to adjustment pursuant to Section 4.

            1.2 Company  Acknowledgment.  The Company  will,  at the time of the
exercise of the Warrant,  upon the request of the holder hereof  acknowledge  in
writing its  continuing  obligation to afford to such holder any rights to which
such holder shall continue to be entitled after such exercise in accordance with
the  provisions  of this  Warrant.  If the  holder  shall  fail to make any such
request,  such failure shall not affect the continuing obligation of the Company
to afford to such holder any such rights.

            1.3 Trustee for Warrant  Holders.  In the event that a bank or trust
company  shall have been  appointed  as trustee  for the  holders of the Warrant
pursuant to Subsection 3.2, such bank or trust company shall have all the powers
and duties of a warrant agent (as  hereinafter  described) and shall accept,  in
its own name for the account of the Company or such  successor  person as may be
entitled  thereto,  all  amounts  otherwise  payable  to  the  Company  or  such
successor,  as the case may be, on  exercise  of this  Warrant  pursuant to this
Section 1.

      2. Procedure for Exercise.

            2.1 Delivery of Stock Certificates,  Etc., on Exercise.  The Company
agrees that the shares of Common Stock  purchased  upon exercise of this Warrant
shall be deemed to be issued to the Holder as the record owner of such shares as
of the close of  business  on the date on which  this  Warrant  shall  have been
surrendered and payment made for such shares in accordance herewith.  As soon as

                                       2
<PAGE>

practicable  after the exercise of this  Warrant in full or in part,  and in any
event  within  three (3) 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,  or as such  Holder  (upon
payment  by  such  Holder  of any  applicable  transfer  taxes)  may  direct  in
compliance with applicable  securities  laws, a certificate or certificates  for
the number of duly and validly issued,  fully paid and  nonassessable  shares of
Common  Stock (or Other  Securities)  to which such Holder  shall be entitled on
such exercise,  plus, in lieu of any fractional share to which such holder would
otherwise be entitled,  cash equal to such fraction  multiplied by the then Fair
Market  Value  of one  full  share,  together  with  any  other  stock  or other
securities and property  (including cash, where applicable) to which such Holder
is entitled upon such exercise pursuant to Section 1 or otherwise.

         Exercise.         Payment  may be made  either  in cash,  certified  or
                           official  bank check or by wire  transfer  payable to
                           the  order of the  Company  equal  to the  applicable
                           aggregate Exercise Price.

      3. Effect of Reorganization, Etc.; Adjustment of Exercise Price.

            3.1 Reorganization,  Consolidation, Merger, Etc. In case at any time
or from  time to time,  the  Company  shall  (a)  effect a  reorganization,  (b)
consolidate  with or  merge  into  any  other  person,  or (c)  transfer  all or
substantially all of its properties or assets to any other person under any plan
or arrangement  contemplating the dissolution of the Company, then, in each such
case,  as a condition  to the  consummation  of such a  transaction,  proper and
adequate  provision  shall be made by the  Company  whereby  the  Holder of this
Warrant,  on the exercise  hereof as provided in Section 1 at any time after the
consummation of such  reorganization,  consolidation  or merger or the effective
date of such  dissolution,  as the case may be,  shall  receive,  in lieu of the
Common  Stock (or Other  Securities)  issuable  on such  exercise  prior to such
consummation or such effective date, the stock and other securities and property
(including  cash) to which  such  Holder  would  have  been  entitled  upon such
consummation or in connection with such dissolution, as the case may be, if such
Holder had so exercised this Warrant,  immediately prior thereto, all subject to
further adjustment thereafter as provided in Section 4.

            3.2  Dissolution.  In the event of any  dissolution  of the  Company
following the transfer of all or substantially  all of its properties or assets,
the Company,  concurrently with any distributions  made to holders of its Common
Stock,  shall at its expense  deliver or cause to be delivered to the Holder the
stock and other  securities  and property  (including  cash,  where  applicable)
receivable  by the Holder of the  Warrant  pursuant to Section  3.1,  or, if the
Holder shall so instruct the Company,  to a bank or trust  company  specified by
the Holder and having its  principal  office in New York,  NY as trustee for the
Holder of the Warrant.

            3.3 Continuation of Terms. Upon any  reorganization,  consolidation,
merger or transfer (and any dissolution  following any transfer)  referred to in
this  Section 3, this  Warrant  shall  continue in full force and effect and the
terms hereof shall be applicable to the shares of stock and other securities and
property  receivable on the exercise of this Warrant after the  consummation  of
such   reorganization,   consolidation  or  merger  or  the  effective  date  of
dissolution  following  any such  transfer,  as the case  may be,  and  shall be
binding upon the issuer of any such stock or other securities, including, in the

                                       3
<PAGE>

case of any such transfer,  the person acquiring all or substantially all of the
properties  or assets of the  Company,  whether  or not such  person  shall have
expressly  assumed  the terms of this  Warrant as  provided in Section 4. In the
event  this  Warrant  does not  continue  in full  force  and  effect  after the
consummation of the transactions described in this Section 3, then the Company's
securities and property  (including  cash, where  applicable)  receivable by the
Holders  of  the  Warrant  will  be  delivered  to  Holder  or  the  Trustee  as
contemplated by Section 3.2.

      4.  Extraordinary  Events  Regarding  Common Stock.  In the event that the
Company shall (a) issue  additional  shares of the Common Stock as a dividend or
other  distribution on outstanding  Common Stock,  (b) subdivide its outstanding
shares of Common  Stock,  or (c)  combine its  outstanding  shares of the Common
Stock into a smaller  number of shares of the Common  Stock,  then, in each such
event,  the Exercise  Price  shall,  simultaneously  with the  happening of such
event,  be adjusted by multiplying  the then Exercise  Price by a fraction,  the
numerator  of which  shall be the number of shares of Common  Stock  outstanding
immediately prior to such event and the denominator of which shall be the number
of shares of Common  Stock  outstanding  immediately  after such event,  and the
product so obtained shall  thereafter be the Exercise Price then in effect.  The
Exercise Price, as so adjusted,  shall be readjusted in the same manner upon the
happening of any successive  event or events described herein in this Section 4.
The  number of shares of Common  Stock  that the  holder of this  Warrant  shall
thereafter,  on the  exercise  hereof as  provided  in Section 1, be entitled to
receive shall be increased to a number  determined by multiplying  the number of
shares of Common  Stock that would  otherwise  (but for the  provisions  of this
Section 4) be issuable on such exercise by a fraction of which (a) the numerator
is the  Exercise  Price that would  otherwise  (but for the  provisions  of this
Section 4) be in effect, and (b) the denominator is the Exercise Price in effect
on the date of such exercise.

      5.  Certificate  as to  Adjustments.  In each  case of any  adjustment  or
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise of the  Warrant,  the Company at its expense  will  promptly  cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or  readjustment  in  accordance  with the terms of the  Warrant  and  prepare a
certificate  setting forth such adjustment or readjustment and showing in detail
the facts upon which such  adjustment  or  readjustment  is based,  including  a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to have been issued or sold,  (b) the number of shares of Common Stock (or Other
Securities) outstanding or deemed to be outstanding,  and (c) the Exercise Price
and the number of shares of Common  Stock to be received  upon  exercise of this
Warrant,  in effect  immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant.  The Company will  forthwith
mail a copy of each  such  certificate  to the  holder  of the  Warrant  and any
Warrant agent of the Company (appointed pursuant to Section 11 hereof).

      6.  Reservation  of Stock,  Etc.,  Issuable on  Exercise  of Warrant.  The
Company will at all times  reserve and keep  available,  solely for issuance and
delivery  on the  exercise  of the  Warrant,  shares of  Common  Stock (or Other
Securities) from time to time issuable on the exercise of the Warrant.

                                       4
<PAGE>

      7. Assignment;  Exchange of Warrant. Subject to compliance with applicable
securities  laws,  this  Warrant,  and  the  rights  evidenced  hereby,  may  be
transferred  by any  registered  holder hereof (a  "Transferor")  in whole or in
part.  On the  surrender  for exchange of this  Warrant,  with the  Transferor's
endorsement  in  the  form  of  Exhibit  B  attached  hereto  (the   "Transferor
Endorsement  Form") and together with evidence  reasonably  satisfactory  to the
Company  demonstrating  compliance with applicable  securities laws, which shall
include,  without limitation, a legal opinion from the Transferor's counsel that
such  transfer  is  exempt  from the  registration  requirements  of  applicable
securities  laws,  the Company at its expense but with payment by the Transferor
of any applicable  transfer  taxes) will issue and deliver to or on the order of
the  Transferor  thereof  a new  Warrant  of  like  tenor,  in the  name  of the
Transferor  and/or the  transferee(s)  specified in such Transferor  Endorsement
Form  (each a  "Transferee"),  calling  in the  aggregate  on the  face or faces
thereof for the number of shares of Common Stock called for on the face or faces
of the Warrant so surrendered by the Transferor.

      8. Replacement of Warrant. On receipt of evidence reasonably  satisfactory
to the Company of the loss,  theft,  destruction  or  mutilation of this Warrant
and, in the case of any such loss,  theft or  destruction  of this  Warrant,  on
delivery of an indemnity agreement or security  reasonably  satisfactory in form
and amount to the Company or, in the case of any such  mutilation,  on surrender
and  cancellation  of this Warrant,  the Company at its expense will execute and
deliver, in lieu thereof, a new Warrant of like tenor.

      9.  Registration  Rights.  The  Holder of this  Warrant  has been  granted
certain  registration  rights by the Company.  These registration rights are set
forth  in a  Registration  Rights  Agreement  entered  into by the  Company  and
Purchaser dated as of even date of this Warrant.

      10. Notwithstanding  anything contained herein to the contrary, the Holder
shall not be entitled to convert  pursuant to the terms of the Warrant an amount
that would be convertible into that number of shares of Common Stock which, when
added to the number of shares of Common Stock  otherwise  beneficially  owned by
such Holder  including  those issuable upon  conversion of any note held by such
Holder  would  exceed  4.99% of the  outstanding  shares of Common  Stock of the
Company at the time of conversion. For the purposes of the immediately preceding
sentence,  beneficial  ownership  shall be determined in accordance with Section
13(d) of the  Exchange  Act and  Regulation  13d-3  thereunder.  The  conversion
limitation described in this Section 10 shall automatically become null and void
without any notice to the Company upon the occurrence and during the continuance
beyond any applicable grace period of an Event of Default (as defined in each of
(x) that certain  Security  Agreement,  dated as of the date  hereof,  among the
Company,  certain  subsidiaries  of the  Company  and the  Holder  (as  amended,
modified or  supplemented  from time to time,  the "Security  Agreement" and (y)
that certain Secured  Convertible Term Note, dated the date hereof,  made by the
Company to the Holder), or upon 75 days prior notice to the Company, except that
at no time shall the  beneficial  ownership  exceed  19.99% of the Common Stock.
Notwithstanding anything contained herein to the contrary, following the listing
of the Company on the NASDAQ SmallCap Market,  the Nasdaq National Market or the
American  Stock  Exchange,  the number of shares of Common Stock issuable by the
Company and acquirable by the Holder at a price below $[insert market price] per
share  pursuant  to the  terms of this  Warrant,  the  Security  Agreement,  any
Ancillary  Agreement  (as  defined  in the  Security  Agreement)  or  any  other
agreement  between the Company and the Holder,  shall not exceed an aggregate of
153,149,330  shares  of the  Company's  Common  Stock  (subject  to  appropriate
adjustment for stock splits, stock dividends, or other similar recapitalizations
affecting the Common Stock) (the "MAXIMUM  COMMON STOCK  ISSUANCE"),  unless the
issuance of shares  hereunder  in excess of the Maximum  Common  Stock  Issuance

                                       5
<PAGE>

shall first be approved by the Company's shareholders.  If at any point in time,
following the listing of the Company on the NASDAQ SmallCap  Market,  the Nasdaq
National  Market or the American  Stock  Exchange the number of shares of Common
Stock issued pursuant to the terms of this Warrant, the Security Agreement,  any
Ancillary  Agreement or any other agreement  between the Company and the Holder,
together  with the number of shares of Common  Stock that would then be issuable
by the Company to the Holder in the event of a conversion  or exercise  pursuant
to the terms of this Warrant, the Security Agreement, any Ancillary Agreement or
any other agreement between the Company and the Holder, would exceed the Maximum
Common Stock Issuance but for this Section 10, the Company shall promptly call a
shareholders  meeting to solicit  shareholder  approval  for the issuance of the
shares of Common Stock  hereunder in excess of the Maximum Common Stock Issuance

      11. Warrant  Agent.  The Company may, by written notice to the each Holder
of the  Warrant,  appoint an agent for the purpose of issuing  Common  Stock (or
Other  Securities)  on the  exercise  of this  Warrant  pursuant  to  Section 1,
exchanging  this  Warrant  pursuant  to Section 7, and  replacing  this  Warrant
pursuant  to  Section  8,  or any of the  foregoing,  and  thereafter  any  such
issuance,  exchange or  replacement,  as the case may be,  shall be made at such
office by such agent.

      12. Transfer on the Company's Books.  Until this Warrant is transferred on
the books of the Company,  the Company may treat the registered holder hereof as
the absolute  owner hereof for all purposes,  notwithstanding  any notice to the
contrary.

      13. Notices, Etc. All notices and other communications from the Company to
the  Holder  of this  Warrant  shall be  mailed  by first  class  registered  or
certified mail,  postage prepaid,  at such address as may have been furnished to
the Company in writing by such Holder or, until any such Holder furnishes to the
Company an  address,  then to, and at the  address  of, the last  Holder of this
Warrant who has so furnished an address to the Company.

      14.  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 such change, waiver, discharge or termination
is sought.  This Warrant shall be governed by and  construed in accordance  with
the laws of State of New York without regard to principles of conflicts of laws.
Any action brought  concerning  the  transactions  contemplated  by this Warrant
shall be brought only in the state  courts of New York or in the federal  courts
located in the state of New York; provided,  however, that the Holder may choose
to waive this  provision and bring an action  outside the state of New York. The
individuals  executing  this Warrant on behalf of the Company agree to submit to
the  jurisdiction  of such courts and waive trial by jury. The prevailing  party
shall be entitled to recover from the other party its reasonable attorney's fees
and  costs.  In the event  that any  provision  of this  Warrant  is  invalid or
unenforceable  under any applicable  statute or rule of law, then such provision

                                       6
<PAGE>

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 such
provision  which  may prove  invalid  or  unenforceable  under any law shall not
affect the validity or  enforceability  of any other  provision of this Warrant.
The headings in this Warrant are for purposes of reference  only,  and shall not
limit  or  otherwise  affect  any  of  the  terms  hereof.   The  invalidity  or
unenforceability  of any provision hereof shall in no way affect the validity or
enforceability  of any other  provision.  The  Company  acknowledges  that legal
counsel  participated  in  the  preparation  of  this  Warrant  and,  therefore,
stipulates  that the rule of  construction  that  ambiguities are to be resolved
against the drafting  party shall not be applied in the  interpretation  of this
Warrant to favor any party against the other party.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                            SIGNATURE PAGE FOLLOWS.]

                                       7
<PAGE>

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

                                        CONVERSION SERVICES INTERNATIONAL, INC.

WITNESS:
/s/ Lawrence F. Metz                    By:       /s/ Scott Newman
                                                  -----------------------------
                                        Name:     Scott Newman
                                                  -----------------------------
                                        Title:    President and CEO
---------------------------                       -----------------------------

                                       8
<PAGE>

                                    EXHIBIT A

                              FORM OF SUBSCRIPTION
                   (To Be Signed Only On Exercise Of Warrant)

TO:      Conversion Services International, Inc.

         Attention:        Chief Financial Officer

         The  undersigned,  pursuant to the provisions set forth in the attached
Warrant (No.____), hereby irrevocably elects to purchase (check applicable box):

______            _______ shares of the Common Stock covered by such Warrant; or

______            the maximum  number of shares of Common Stock  covered by such
                  Warrant pursuant to the cashless exercise  procedure set forth
                  in Section 2.

      The undersigned herewith makes payment of the full Exercise Price for such
shares  at  the  price  per  share  provided  for  in  such  Warrant,  which  is
$___________. Such payment takes the form of (check applicable box or boxes):

_____             $__________ in lawful money of the United States; and/or

_____

_____

      The undersigned  requests that the  certificates for such shares be issued
in the name of, and delivered to  ______________________________________________
whose address is ______________________________________.

      The  undersigned  represents and warrants that all offers and sales by the
undersigned of the securities issuable upon exercise of the within Warrant shall
be made pursuant to registration of the Common Stock under the Securities Act of
1933,  as amended  (the  "Securities  Act") or  pursuant  to an  exemption  from
registration under the Securities Act.

Dated:
             ----------------------------        -------------------------------
                                                 (Signature must conform to name
                                                  of holder as specified on the
                                                  face of the Warrant)

                                                 Address:
                                                           ---------------------

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

                                      A-1
<PAGE>

                                    EXHIBIT B

                         FORM OF TRANSFEROR ENDORSEMENT
                   (To Be Signed Only On Transfer Of Warrant)

      For value received,  the undersigned hereby sells,  assigns, and transfers
unto the  person(s)  named  below  under  the  heading  "Transferees"  the right
represented  by the within  Warrant to  purchase  the  percentage  and number of
shares of Common Stock of Conversion Services International, Inc. into which the
within Warrant relates specified under the headings "Percentage Transferred" and
"Number Transferred,"  respectively,  opposite the name(s) of such person(s) and
appoints each such person Attorney to transfer its respective right on the books
of Conversion Services International, Inc.with full power of substitution in the
premises.

<TABLE>
<CAPTION>
                                                                                 Percentage               Number
Transferees                               Address                                Transferred            Transferred
<S>                                       <C>                                    <C>                  <C>

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

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

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

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

Dated:
             -----------------------------------        --------------------------------------------------------------
                                                        (Signature must conform to name of holder as specified on
                                                        the face of the Warrant)

                                    Address:
                                                                      ------------------------------------------------

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

                                                        SIGNED IN THE PRESENCE OF:

                                                        --------------------------------------------------------------
                                                                                   (Name)
ACCEPTED AND AGREED:
[TRANSFEREE]

-------------------------------------------------------
                        (Name)
</TABLE>

                                      B-1STOCK PLEDGE AGREEMENT

      This Stock Pledge  Agreement  (this  "Agreement"),  dated as of August 16,
2004,  among Laurus Master Fund,  Ltd. (the  "Pledgee") and Conversion  Services
International, Inc., a Delaware corporation (the "Company").

                                   BACKGROUND

      (x) The Company and the Pledgee have  entered  into a Securities  Purchase
Agreement,  dated as of August 16, 2004 relating to the issuance of the Note and
Warrants  referred to therein (as amended,  modified,  restated or  supplemented
from time to time, the  "Securities  Purchase  Agreement")  and (y) the Company,
certain Subsidiaries of the Company and the Pledgee have entered into a Security
Agreement,  dated as of August 16, 2004  relating to the  issuance of a Note and
Warrants  referred to therein (as amended,  modified,  restated or  supplemented
from time to time, the "Security  Agreement"),  in each case,  pursuant to which
the Pledgee  provides or will provide certain  financial  accommodations  to the
Company.

      In order to induce  the  Pledgee to provide  or  continue  to provide  the
financial  accommodations described in the Securities Purchase Agreement and the
Security  Agreement,  the  Company  has  agreed to pledge  and grant a  security
interest  in the  collateral  described  herein to the  Pledgee on the terms and
conditions set forth herein.

      NOW,  THEREFORE,  in  consideration of the premises and for other good and
valuable consideration the receipt of which is hereby acknowledged,  the parties
hereto agree as follows:

      1. Defined Terms. All capitalized terms used herein, which are not defined
shall have the meanings given to them in the Securities Purchase Agreement.

            2.  Pledge and Grant of  Security  Interest.  To secure the full and
punctual  payment  and  performance  of (the  following  clauses  (a)  and  (b),
collectively,  the  "Indebtedness")  (a) the  obligations  under the  Securities
Purchase  Agreement  and the Related  Agreements  referred to in the  Securities
Purchase  Agreement,  (b) the obligations  under the Security  Agreement and the
Ancillary  Agreements  referred to in the  Security  Agreement  (the  Securities
Purchase  Agreement,  the  Related  Agreements  referred  to in  the  Securities
Purchase Agreement,  the Security Agreement and the Ancillary Agreement referred
to in the Security Agreement, as each may be amended, restated,  modified and/or
supplemented from time to time, collectively, the "Documents") and (c) all other

                                      -1-
<PAGE>

indebtedness,  obligations and liabilities of the Company to the Pledgee whether
now  existing  or  hereafter   arising,   direct  or  indirect,   liquidated  or
unliquidated, absolute or contingent, due or not due and whether under, pursuant
to or evidenced by a note, agreement, guaranty, instrument or otherwise (in each
case, irrespective of the genuineness, validity, regularity or enforceability of
such Indebtedness, or of any instrument evidencing any of the Indebtedness or of
any collateral  therefor or of the existence or extent of such  collateral,  and
irrespective  of the  allowability,  allowance or  disallowance of any or all of
such in any case  commenced  by or against  the Company  under Title 11,  United
States Code, including,  without limitation,  obligations or indebtedness of the
Company for  post-petition  interest,  fees,  costs and charges  that would have
accrued  or been  added to the  Indebtedness  but for the  commencement  of such
case), the Company hereby pledges, assigns, hypothecates, transfers and grants a
security interest to Pledgee in all of the following (the "Collateral"):

            (a) the  shares  of stock  and  membership  interests  set  forth on
Schedule A annexed  hereto and expressly  made a part hereof  (together with any
additional shares of stock or other equity or membership  interests  acquired by
the Company,  the "Pledged  Stock"),  the certificates  representing the Pledged
Stock and all dividends,  cash,  instruments and other property or proceeds from
time to time received,  receivable or otherwise  distributed in respect of or in
exchange for any or all of the Pledged Stock;

            (b) all  additional  shares of stock or membership  interests of any
issuer  (each,  an "Issuer") of the Pledged  Stock from time to time acquired by
the Company in any manner, including,  without limitation,  stock dividends or a
distribution   in  connection   with  any  increase  or  reduction  of  capital,
reclassification,  merger, consolidation,  sale of assets, combination of shares
or interests,  stock split,  spin-off or split-off (which shares shall be deemed
to be part of the Collateral), and the certificates representing such additional
shares or membership interests,  and all dividends,  cash, instruments and other
property  or  proceeds  from  time to time  received,  receivable  or  otherwise
distributed  in  respect  of or in  exchange  for any or all of such  shares  or
membership interests; and

            (c)  all  options  and  rights,   whether  as  an  addition  to,  in
substitution  of or in  exchange  for any  shares of any  Pledged  Stock and all
dividends,  cash,  instruments  and other property or proceeds from time to time
received,  receivable or otherwise  distributed in respect of or in exchange for
any or all such options and rights.

      3. Delivery of Collateral. All certificates representing or evidencing the
Pledged Stock shall be delivered to and held by or on behalf of Pledgee pursuant
hereto and shall be  accompanied  by duly  executed  instruments  of transfer or
assignment in blank,  all in form and  substance  satisfactory  to Pledgee.  The
Company  hereby  authorizes the Issuer upon demand by the Pledgee to deliver any
certificates,  instruments or other distributions  issued in connection with the
Collateral  directly  to the  Pledgee,  in each case to be held by the  Pledgee,
subject to the terms  hereof.  Upon an Event of Default (as defined  below) that
has occurred and is continuing  beyond any applicable grace period,  the Pledgee
shall have the right,  during such time in its  discretion and without notice to
the Company,  to transfer to or to register in the name of the Pledgee or any of
its nominees any or all of the Pledged Stock.  In addition,  upon seven (7) days
notice to the Company, the Pledgee shall have the right at such time to exchange
certificates  or  instruments  representing  or  evidencing  Pledged  Stock  for
certificates or instruments of smaller or larger denominations.

      4.  Representations and Warranties of the Company.  The Company represents
and  warrants to the Pledgee  (which  representations  and  warranties  shall be
deemed to  continue  to be made until all of the  Indebtedness  has been paid in

                                      -2-
<PAGE>

full and each  Document  and  each  agreement  and  instrument  entered  into in
connection therewith has been irrevocably terminated) that:

            (a) the execution,  delivery and  performance by the Company of this
Agreement and the pledge of the Collateral  hereunder do not and will not result
in any violation of any agreement,  indenture,  instrument,  license,  judgment,
decree, order, law, statute,  ordinance or other governmental rule or regulation
applicable to the Company;

            (b)  this  Agreement  constitutes  the  legal,  valid,  and  binding
obligation of the Company enforceable against the Company in accordance with its
terms;

            (c) (i) all  Pledged  Stock  owned by the  Company  is set  forth on
Schedule A hereto and (ii) the  Company  is the direct and  beneficial  owner of
each share of the Pledged Stock;

            (d)  all  of  the  shares  of  the  Pledged  Stock  have  been  duly
authorized, validly issued and are fully paid and nonassessable;

            (e) no consent or approval of any person, corporation,  governmental
body,  regulatory authority or other entity, is or will be necessary for (i) the
execution,  delivery and performance of this Agreement, (ii) the exercise by the
Pledgee of any rights  with  respect to the  Collateral  or (iii) the pledge and
assignment  of,  and  the  grant  of a  security  interest  in,  the  Collateral
hereunder;

            (f) there are no pending or, to the best of the Company's knowledge,
threatened   actions  or   proceedings   before  any   court,   judicial   body,
administrative  agency or arbitrator  which may materially  adversely affect the
Collateral;

            (g) the Company has the requisite  power and authority to enter into
this  Agreement  and to pledge  and  assign  the  Collateral  to the  Pledgee in
accordance with the terms of this Agreement.

            (h) the Company owns each item of the Collateral and, except for the
pledge and security interest granted to Pledgee hereunder,  the Collateral shall
be,  immediately  following the closing of the transactions  contemplated by the
Documents,  free and clear of any other security interest,  pledge, claim, lien,
charge,   hypothecation,    assignment,   offset   or   encumbrance   whatsoever
(collectively, "Liens").

            (i) there are no  restrictions  on  transfer  of the  Pledged  Stock
contained  in  the  certificate  of  incorporation  or  by-laws  (or  equivalent
organizational  documents)  of the Issuer or otherwise  which have not otherwise
been enforceably and legally waived by the necessary parties.

            (j) none of the  Pledged  Stock has been  issued or  transferred  in
violation of the securities registration,  securities disclosure or similar laws
of any jurisdiction to which such issuance or transfer may be subject.

                                      -3-
<PAGE>

            (k) the pledge and  assignment of the  Collateral and the grant of a
security  interest  under this  Agreement  vest in the Pledgee all rights of the
Company in the Collateral as contemplated by this Agreement.

            (l) Except as otherwise  set forth on Schedule A to this  Agreement,
the  Pledged  Stock  constitutes  one hundred  percent  (100%) of the issued and
outstanding shares of capital stock of each Issuer.

      5. Covenants.  The Company covenants that, until the Indebtedness shall be
satisfied in full and each Document and each  agreement and  instrument  entered
into in connection therewith is irrevocably terminated:

            (a)  The  Company  will  not  sell,  assign,  transfer,  convey,  or
otherwise dispose of its rights in or to the Collateral or any interest therein;
nor will the Company  create,  incur or permit to exist any Lien whatsoever with
respect to any of the Collateral or the proceeds thereof other than that created
hereby.

            (b) The Company will, at its expense,  defend Pledgee's right, title
and security  interest in and to the Collateral  against the claims of any other
party.

            (c) The Company shall at any time,  and from time to time,  upon the
written  request of Pledgee,  execute and deliver such further  documents and do
such  further  acts and things as  Pledgee  may  reasonably  request in order to
effect  the  purposes  of this  Agreement  including,  but  without  limitation,
delivering  to Pledgee upon the  occurrence  of an Event of Default  irrevocable
proxies in respect of the  Collateral  in form  satisfactory  to Pledgee.  Until
receipt  thereof,  upon an Event of Default that has occurred and is  continuing
beyond  any  applicable  grace  period,  this  Agreement  shall  constitute  the
Company's  proxy to Pledgee or its nominee to vote all shares of Collateral then
registered in the Company's name.

            (d) The Company  will not consent to or approve the  issuance of (i)
any additional shares of any class of capital stock or other equity interests of
the Issuer; or (ii) any securities  convertible either voluntarily by the holder
thereof or  automatically  upon the occurrence or  nonoccurrence of any event or
condition into, or any securities  exchangeable for, any such shares, unless, in
either case, such shares are pledged as Collateral pursuant to this Agreement.

      6. Voting Rights and  Dividends.  In addition to the Pledgee's  rights and
remedies set forth in Section 8 hereof,  in case an Event of Default  shall have
occurred and be continuing, beyond any applicable cure period, the Pledgee shall
(i) be entitled  to vote the  Collateral,  (ii) be  entitled  to give  consents,
waivers and  ratifications  in respect of the  Collateral  (the  Company  hereby
irrevocably  constituting  and  appointing  the  Pledgee,  with  full  power  of
substitution,  the proxy and  attorney-in-fact of the Company for such purposes)
and (iii) be entitled to collect and receive for its own use cash dividends paid

                                      -4-
<PAGE>

on the  Collateral.  The Company  shall not be  permitted to exercise or refrain
from exercising any voting rights or other powers if, in the reasonable judgment
of the Pledgee, such action would have a material adverse effect on the value of
the Collateral or any part thereof;  and,  provided,  further,  that the Company
shall  give at least  five (5) days'  written  notice of the manner in which the
Company intends to exercise, or the reasons for refraining from exercising,  any
voting  rights or other  powers  other  than with  respect  to any  election  of
directors  and voting with  respect to any  incidental  matters.  Following  the
occurrence of an Event of Default,  all dividends and all other distributions in
respect of any of the  Collateral,  shall be delivered to the Pledgee to hold as
Collateral and shall,  if received by the Company,  be received in trust for the
benefit of the Pledgee,  be segregated  from the other  property or funds of any
other  pledgor,  and be forthwith  delivered to the Pledgee as Collateral in the
same form as so received (with any necessary endorsement).

      7. Event of Default.  An Event of Default shall be deemed to have occurred
and may be declared by the Pledgee upon the  happening  of any of the  following
events:

            (a) An "Event of Default" or "Payment  Event"  under any Document or
any agreement,  document or note related to any Document shall have occurred and
be continuing beyond any applicable cure period;

            (b) The  Company  shall  default  in the  performance  of any of its
obligations  under any  agreement  between the Company and  Pledgee,  including,
without  limitation,  this Agreement,  and such default shall not be cured for a
period of fifteen (15) business days after the occurrence thereof;

            (c) Any  representation  or warranty of the Company made herein,  in
any  Document or in any  agreement,  statement or  certificate  given in writing
pursuant hereto or thereto or in connection herewith or therewith shall be false
or  misleading  in any  material  respect and shall not be cured for a period of
thirty (30) days after the occurrence thereof;

            (d) Any portion of the Collateral is subjected to levy of execution,
attachment,  distraint  or  other  judicial  process;  or  any  portion  of  the
Collateral  is the subject of a claim  (other than by the  Pledgee) of a Lien or
other right or interest in or to the Collateral and such levy or claim shall not
be cured,  disputed or stayed within a period of thirty (30) business days after
the occurrence thereof; or

            (e) The Company shall (i) apply for,  consent to, or suffer to exist
the  appointment  of, or the taking of  possession  by, a  receiver,  custodian,
trustee, liquidator or other fiduciary of itself or of all or a substantial part
of its property,  (ii) make a general  assignment  for the benefit of creditors,
(iii) commence a voluntary case under any state or federal  bankruptcy  laws (as
now or hereafter in effect),  (iv) be  adjudicated a bankrupt or insolvent,  (v)
file a petition  seeking to take  advantage of any other law  providing  for the
relief of debtors,  (vi) acquiesce to, or fail to have  dismissed,  within sixty
(60) days,  any petition  filed  against it in any  involuntary  case under such
bankruptcy  laws,  or (vii) take any action for the purpose of effecting  any of
the foregoing.

      8.  Remedies.  In case an Event of  Default  shall  have  occurred  and be
declared by the Pledgee, the Pledgee may:

                                      -5-
<PAGE>

            (a) Transfer any or all of the Collateral into its name, or into the
name of its nominee or nominees;

            (b) Exercise  all  corporate  rights with respect to the  Collateral
including, without limitation, all rights of conversion,  exchange, subscription
or any other  rights,  privileges  or  options  pertaining  to any shares of the
Collateral  as if it were the absolute  owner  thereof,  including,  but without
limitation,  the  right  to  exchange,  at  its  discretion,  any  or all of the
Collateral upon the merger, consolidation,  reorganization,  recapitalization or
other readjustment of the Issuer thereof,  or upon the exercise by the Issuer of
any right,  privilege or option  pertaining  to any of the  Collateral,  and, in
connection therewith,  to deposit and deliver any and all of the Collateral with
any committee,  depository,  transfer agent, registrar or other designated agent
upon such terms and conditions as it may determine, all without liability except
to account for property actually received by it; and

            (c) Subject to any requirement of applicable  law, sell,  assign and
deliver the whole or, from time to time,  any part of the Collateral at the time
held by the Pledgee,  at any private sale or at public auction,  with or without
demand,  advertisement  or  notice  of the time or place of sale or  adjournment
thereof or otherwise (all of which are hereby  waived,  except such notice as is
required  by  applicable  law and cannot be  waived),  for cash or credit or for
other  property for immediate or future  delivery,  and for such price or prices
and on such terms as the Pledgee in its sole discretion may determine, or as may
be required by applicable law.

            The Company  hereby  waives and releases any and all right or equity
of redemption,  whether before or after sale hereunder. At any such sale, unless
prohibited by applicable  law, the Pledgee may bid for and purchase the whole or
any  part of the  Collateral  so sold  free  from any such  right or  equity  of
redemption.  All moneys received by the Pledgee  hereunder  whether upon sale of
the Collateral or any part thereof or otherwise shall be held by the Pledgee and
applied by it as provided in Section 10 hereof.  No failure or delay on the part
of the Pledgee in exercising any rights  hereunder  shall operate as a waiver of
any such  rights  nor shall any single or partial  exercise  of any such  rights
preclude  any other or future  exercise  thereof  or the  exercise  of any other
rights  hereunder.  The  Pledgee  shall  have no duty  as to the  collection  or
protection  of  the  Collateral  or  any  income  thereon  nor  any  duty  as to
preservation  of any  rights  pertaining  thereto,  except to apply the funds in
accordance with the requirements of Section 10 hereof.  The Pledgee may exercise
its rights  with  respect to property  held  hereunder  without  resort to other
security for or sources of reimbursement  for the  Indebtedness.  In addition to
the foregoing,  Pledgee shall have all of the rights, remedies and privileges of
a secured party under the Uniform  Commercial Code of New York regardless of the
jurisdiction in which enforcement hereof is sought.

      9. Private Sale. The Company  recognizes that the Pledgee may be unable to
effect (or to do so only after delay which would adversely affect the value that
might be  realized  from  the  Collateral)  a public  sale of all or part of the
Collateral by reason of certain  prohibitions  contained in the Securities  Act,
and may be  compelled  to resort to one or more  private  sales to a  restricted
group of purchasers who will be obliged to agree, among other things, to acquire

                                      -6-
<PAGE>

such Collateral for their own account, for investment and not with a view to the
distribution  or resale  thereof.  The Company agrees that any such private sale
may be at prices  and on terms  less  favorable  to the  seller  than if sold at
public sales and that such private  sales shall be deemed to have been made in a
commercially  reasonable  manner.  The  Company  agrees  that the Pledgee has no
obligation to delay sale of any  Collateral  for the period of time necessary to
permit  the  Issuer  to  register  the  Collateral  for  public  sale  under the
Securities Act.

      10. Proceeds of Sale. The proceeds of any collection,  recovery,  receipt,
appropriation,  realization  or sale of the  Collateral  shall be applied by the
Pledgee as follows:

            (a) First,  to the  payment of all costs,  reasonable  expenses  and
charges of the  Pledgee  and to the  reimbursement  of the Pledgee for the prior
payment of such costs,  reasonable  expenses and charges  incurred in connection
with the care and safekeeping of the Collateral (including,  without limitation,
the  reasonable  expenses  of any sale or any  other  disposition  of any of the
Collateral),  the  expenses  of  any  taking,  attorneys'  fees  and  reasonable
expenses,  court costs,  any other fees or expenses  incurred or expenditures or
advances  made by Pledgee in the  protection,  enforcement  or  exercise  of its
rights, powers or remedies hereunder;

            (b) Second, to the payment of the Indebtedness, in whole or in part,
in such order as the Pledgee may elect, whether or not such Indebtedness is then
due;

            (c) Third, to such persons, firms, corporations or other entities as
required by applicable law including, without limitation, Section 9-504(1)(c) of
the UCC; and

            (d)  Fourth,  to the extent of any  surplus  to the  Company or as a
court of competent jurisdiction may direct.

            In the event that the proceeds of any collection, recovery, receipt,
appropriation, realization or sale are insufficient to satisfy the Indebtedness,
the Company  shall be liable for the  deficiency  plus the costs and fees of any
attorneys employed by Pledgee to collect such deficiency.

      11. Waiver of  Marshaling.  The Company  hereby waives any right to compel
any marshaling of any of the Collateral.

      12. No Waiver.  Any and all of the  Pledgee's  rights with  respect to the
Liens granted under this Agreement  shall continue  unimpaired,  and the Company
shall  be  and  remain   obligated  in   accordance   with  the  terms   hereof,
notwithstanding (a) the bankruptcy, insolvency or reorganization of the Company,
(b) the release or substitution of any item of the Collateral at any time, or of
any rights or interests therein,  or (c) any delay,  extension of time, renewal,
compromise or other indulgence granted by the Pledgee in reference to any of the
Indebtedness. The Company hereby waives all notice of any such delay, extension,
release,  substitution,  renewal,  compromise  or other  indulgence,  and hereby
consents  to be bound  hereby as fully and  effectively  as if the  Company  had

                                      -7-
<PAGE>

expressly  agreed  thereto  in  advance.  No delay or  extension  of time by the
Pledgee  in  exercising  any  power of sale,  option  or other  right or  remedy
hereunder,  and no failure by the Pledgee to give notice or make  demand,  shall
constitute a waiver thereof,  or limit,  impair or prejudice the Pledgee's right
to take any action  against the Company or to exercise  any other power of sale,
option or any other right or remedy.

      13. Expenses.  The Collateral  shall secure,  and the Company shall pay to
Pledgee  on  demand,  from time to time,  all  reasonable  costs  and  expenses,
(including but not limited to, reasonable  attorneys' fees and costs, taxes, and
all transfer,  recording,  filing and other  charges) of, or incidental  to, the
custody,  care,  transfer,   administration  of  the  Collateral  or  any  other
collateral,   or  in  any  way  relating  to  the  enforcement,   protection  or
preservation  of the rights or remedies of the Pledgee  under this  Agreement or
with respect to any of the Indebtedness.

      14. The Pledgee Appointed Attorney-In-Fact and Performance by the Pledgee.
Upon the  occurrence  of an Event of  Default,  the Company  hereby  irrevocably
constitutes   and  appoints  the  Pledgee  as  the  Company's  true  and  lawful
attorney-in-fact,  with full power of substitution,  to execute, acknowledge and
deliver any instruments and to do in the Company's  name,  place and stead,  all
such acts, things and deeds for and on behalf of and in the name of the Company,
which the Company  could or might do or which the  Pledgee  may deem  necessary,
desirable or convenient to accomplish the purposes of this Agreement, including,
without  limitation,  to execute such  instruments  of assignment or transfer or
orders and to register,  convey or otherwise  transfer  title to the  Collateral
into the Pledgee's  name. The Company hereby ratifies and confirms all that said
attorney-in-fact  may so do and hereby  declares  this power of  attorney  to be
coupled with an interest and  irrevocable.  If the Company  fails to perform any
agreement herein contained,  the Pledgee may itself perform or cause performance
thereof,  and any costs and  expenses  of the  Pledgee  incurred  in  connection
therewith shall be paid by the Company as provided in Section 10 hereof.

      15. Waivers.

            (a) EACH PARTY HERETO HEREBY  EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY
JURY OF ANY  CLAIM,  DEMAND,  ACTION OR CAUSE OF ACTION (A)  ARISING  UNDER THIS
AGREEMENT OR ANY OTHER INSTRUMENT,  DOCUMENT OR AGREEMENT  EXECUTED OR DELIVERED
IN  CONNECTION  HEREWITH,  OR  (B) IN ANY  WAY  CONNECTED  WITH  OR  RELATED  OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OTHER AGREEMENT EXECUTED
OR DELIVERED BY THEM IN CONNECTION HEREWITH,  OR THE TRANSACTIONS RELATED HERETO
OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING,  AND WHETHER
SOUNDING IN CONTRACT OR TORT OR OTHERWISE  AND EACH PARTY HERETO  HEREBY  AGREES
AND CONSENTS THAT ANY CLAIM, DEMAND,  ACTION OR CAUSE OF ACTION SHALL BE DECIDED
BY  COURT  TRIAL  WITHOUT  A JURY,  AND  THAT ANY  PARTY  MAY  FILE AN  ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN  EVIDENCE OF THE
CONSENT OF EACH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

      16. Recapture. Notwithstanding anything to the contrary in this Agreement,
if the Pledgee receives any payment or payments on account of the  Indebtedness,
which  payment or payments or any part  thereof  are  subsequently  invalidated,
declared to be  fraudulent  or  preferential,  set aside  and/or  required to be

                                      -8-
<PAGE>

repaid to a  trustee,  receiver,  or any other  party  under the  United  States
Bankruptcy  Code,  as  amended,  or  any  other  federal  or  state  bankruptcy,
reorganization,  moratorium  or  insolvency  law  relating to or  affecting  the
enforcement of creditors'  rights generally,  common law or equitable  doctrine,
then to the extent of any sum not finally retained by the Pledgee, the Company's
obligations to the Pledgee shall be reinstated  and this Agreement  shall remain
in full force and effect (or be  reinstated)  until payment shall have been made
to Pledgee, which payment shall be due on demand.

      17.  Captions.  All captions in this  Agreement  are  included  herein for
convenience of reference  only and shall not  constitute  part of this Agreement
for any other purpose.

      18. Miscellaneous.

            (a) This Agreement  constitutes the entire and final agreement among
the parties  with respect to the subject  matter  hereof and may not be changed,
terminated or otherwise  varied except by a writing duly executed by the parties
hereto.

            (b) No waiver of any term or condition of this Agreement, whether by
delay, omission or otherwise, shall be effective unless in writing and signed by
the party sought to be charged,  and then such waiver shall be effective only in
the specific instance and for the purpose for which given.

            (c) In the  event  that  any  provision  of  this  Agreement  or the
application  thereof to the  Company  or any  circumstance  in any  jurisdiction
governing this Agreement shall, to any extent, be invalid or unenforceable under
any applicable  statute,  regulation,  or rule of law, such  provision  shall be
deemed  inoperative  to the extent that it may conflict  therewith  and shall be
deemed  modified to conform to such statute,  regulation or rule of law, and the
remainder  of  this  Agreement  and  the  application  of any  such  invalid  or
unenforceable provision to parties,  jurisdictions,  or circumstances other than
to whom or to which it is held  invalid or  unenforceable  shall not be affected
thereby,  nor shall same  affect the  validity  or  enforceability  of any other
provision of this Agreement.

            (d) This  Agreement  shall be  binding  upon  the  Company,  and the
Company's  successors and assigns, and shall inure to the benefit of the Pledgee
and its successors and assigns.

            (e) Any notice or other communication required or permitted pursuant
to this  Agreement  shall be given in accordance  with the  Securities  Purchase
Agreement and/or the Security Agreement, as applicable.

            (f) This  Agreement  shall be governed by and construed and enforced
in all respects in accordance  with the laws of the State of New York applied to
contracts to be performed wholly within the State of New York.

            (g) THE COMPANY EXPRESSLY  CONSENTS TO THE JURISDICTION AND VENUE OF
EACH COURT OF  COMPETENT  JURISDICTION  LOCATED IN THE STATE OF NEW YORK FOR ALL
PURPOSES IN CONNECTION WITH THIS AGREEMENT.  ANY JUDICIAL PROCEEDING  INVOLVING,

                                      -9-
<PAGE>

DIRECTLY OR INDIRECTLY ANY MATTER OR CLAIM IN ANY WAY ARISING OUT OF, RELATED TO
OR CONNECTED WITH THIS AGREEMENT  SHALL BE BROUGHT ONLY IN A STATE COURT LOCATED
IN THE COUNTY OF NEW YORK,  STATE OF NEW YORK. THE COMPANY FURTHER CONSENTS THAT
ANY SUMMONS, SUBPOENA OR OTHER PROCESS OR PAPERS (INCLUDING, WITHOUT LIMITATION,
ANY NOTICE OR MOTION OR OTHER APPLICATION TO EITHER OF THE AFOREMENTIONED COURTS
OR A JUDGE THEREOF) OR ANY NOTICE IN CONNECTION WITH ANY PROCEEDINGS  HEREUNDER,
MAY BE  SERVED  INSIDE  OR  OUTSIDE  OF THE  STATE OF NEW  YORK OR THE  SOUTHERN
DISTRICT OF NEW YORK BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT  REQUESTED,
OR BY PERSONAL  SERVICE  PROVIDED A REASONABLE TIME FOR APPEARANCE IS PERMITTED,
OR IN SUCH OTHER  MANNER AS MAY BE  PERMISSIBLE  UNDER THE RULES OF SAID COURTS.
THE  COMPANY  WAIVES  ANY  OBJECTION  TO  JURISDICTION  AND VENUE OF ANY  ACTION
INSTITUTED HEREON AND SHALL NOT ASSERT ANY DEFENSE BASED ON LACK OF JURISDICTION
OR VENUE OR BASED UPON FORUM NON CONVENIENS.

            (h) This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original and all of which when taken  together shall
constitute  one and the same  agreement.  Any signature  delivered by a party by
facsimile transmission shall be deemed an original signature hereto.

                  [Remainder of Page Intentionally Left Blank]

                                      -10-
<PAGE>

      IN WITNESS  WHEREOF,  the parties have duly executed this  Agreement as of
the day and year first written above.

                                         CONVERSION SERVICES INTERNATIONAL, INC.

                                         By: /s/ Scott Newman
                                         Name: Scott Newman
                                         Title: President and CEO

                                         LAURUS MASTER FUND, LTD.

                                         By: /s/ David Grin
                                             Name: David Grin
                                             Title:

                                      -11-
<PAGE>

                    SCHEDULE A to the Stock Pledge Agreement

                                  Pledged Stock

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
            Pledgor                         Issuer               Class of Stock
<S>                                 <C>                        <C>
------------------------------------------------------------------------------------
      Conversion Services           DeLeeuw Associates, LLC    Membership Interest
      International, Inc.
------------------------------------------------------------------------------------
      Conversion Services             CSI Sub Corp. (DE)             Common
      International, Inc.
------------------------------------------------------------------------------------
      Conversion Services         Evoke Software Corporation         Common
      International, Inc.
------------------------------------------------------------------------------------

<CAPTION>

----------------------------------------------------------
 Stock Certificate        Par Value     Number of Shares
       Number
<C>                       <C>            <C>
----------------------------------------------------------
         N/A                 N/A               N/A

----------------------------------------------------------
          1                $0.001              100

----------------------------------------------------------
          1                $0.001              95

----------------------------------------------------------
</TABLE>

                                      -12-

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