Document:

EXHIBIT
      10.28

    

    SIXTH
      AMENDMENT TO PURCHASE AND SALE AGREEMENT

    Trinity
      Bay, Redfish Reef, Fishers Reef, North Point Bolivar
      Fields

    in
      Galveston and chambers Counties, Texas

     

    This
      SIXTH AMENDMENT TO PURCHASE AND SALE AGREEMENT
      (the
“Sixth Amendment”) is dated effective as of April 24, 2007, and is made by and
      between Masters
      Resources, LLC,
      and
Masters
      Oil & Gas, LLC,
      both
      Texas limited liability companies having their respective principal places
      of
      business at 9801 Westheimer, Suite 1070, Houston, Texas 77042 (collectively,
      “Masters”), and Tekoil
      and Gas Gulf Coast, LLC,
      a
      Delaware limited liability company, having its principal place of business
      at
      5036 Dr. Phillips Blvd., Suite 232, Orlando, Florida 32819 (“Buyer”) (Masters
      and Buyer are sometimes called collectively the “parties” and individually
“party”).

    

    RECITALS

    

    On
      November 13, 2006, Masters and Tekoil and Gas Corporation, a Delaware
      corporation (“Original Buyer”), executed and delivered a Purchase and Sale
      Agreement, dated effective as of October 1, 2006, covering the “Assets”
described therein. On December 29, 2006, Masters and Original Buyer executed
      and
      delivered that certain First Amendment to Purchase and Sale Agreement also
      covering the Assets. On February 8, 2007, the parties contemporaneously executed
      and delivered that certain Second Amendment and that certain Assignment and
      Assumption Agreement (the “Assignment”) by and between Buyer and Original Buyer.
      On March 1, 2007, Masters and Buyer executed and delivered that certain Third
      Amendment to Purchase and Sale Agreement also covering the Assets. On March
      22,
      2007 Masters and Buyer executed and delivered that certain Fourth Amendment
      to
      Purchase and Sale Agreement also covering the Assets. On April 12, 2007, Masters
      and Buyer executed and delivered that certain Fifth Amendment to Purchase and
      Sale Agreement (the “Fifth Amendment”) also covering the Assets (the Purchase
      and Sale Agreement, the First Amendment to Purchase and Sale Agreement, the
      Second Amendment to the Purchase and Sale Agreement, the Third Amendment to
      the
      Purchase and Sale Agreement, the Fourth Amendment to the Purchase and Sale
      Agreement and the Fifth Amendment to the Purchase and Sale Agreement are herein
      collectively referred to as the “Original Agreement”). The parties now desire to
      amend the Original Agreement in certain respects. Accordingly, the parties
      agree
      as set out in this Sixth Amendment. (Unless otherwise noted, defined terms
      used
      in this Sixth Amendment shall have the meanings ascribed to them in the Original
      Agreement). 

    

    I. AMENDMENTS

    

    A. The
      opening paragraph of Section 2.1 of the Original Agreement is deleted and the
      following is inserted in lieu thereof:

    

    “2.1 Purchase
      Price

    

    The
      Purchase Price for the Assets will be Thirty Million and No/100 Dollars
      ($30,000,000.00), plus
      9,000,000
      shares of common stock of Original Buyer1 (the
      “Common Stock”), plus
      the
      reservation at Closing by Masters of the overriding royalty interests described
      in this Section 2.1 hereinbelow (as amended by the Fifth Amendment). Such
      overriding royalty interests shall be subject to a deed of trust in favor of
      Buyer securing the obligations of Masters under the separately executed Erskine
      Indemnity Agreement between Masters and Buyer providing that the revenue and
      proceeds from such interests shall be deposited to an account with a financial
      institution and subject to an account control agreement providing that amounts
      therein may be used, at Buyer’s sole discretion, if
      the
      Erskine dispute is not settled to the reasonable satisfaction of Buyer, as
      further provided in the Indemnity Agreement."

    
       

      
        

      

      1
        Both
        parties acknowledge that all references to “Buyer” in Section 2.1 (B) of the
        Original Agreement shall be amended to “Original Buyer.”

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    B.
       The
      reference in the first line of Section 2.1(B) (as amended by the Fifth
      Amendment) to 4,000,000 shares is deleted and replaced with “9,000,000
      shares”.

    

    C. Section
      8.1 of the Original Agreement is deleted and the following is inserted in lieu
      thereof:

    

    
      	 	
              “8.1

            	
              Date,
                Time and Place of Closing

            

    

    

    Unless
      the parties agree otherwise in writing and subject to the provisions in this
      Agreement, the completion of the transaction contemplated by this Agreement
      (the
“Closing”) will be held on or
      before
      May 11,
      2007, at 10:00 a.m. Central Standard Time (or such earlier date or time as
      the
      parties may agree). The Closing will be held at the offices of Masters as set
      forth in the opening paragraph of this Agreement (or such other place as the
      parties may agree). In the event that the Closing does not occur before the
      close of business at 5:00 p.m. on May 11, 2007, Masters shall have the right
      to
      terminate this Agreement and to retain the Deposit.”

    

    D. That
      certain Amended and Restated Subscription Agreement between Masters and Original
      Buyer of even date of the Fifth Amendment and substantially in the form attached
      as Exhibit C thereto is hereby superseded entirely by a certain Second Amended
      and Restated Subscription Agreement between Masters and Original Buyer of even
      date herewith substantially in the form attached hereto as Exhibit
      A.

    

    E. The
      Registration Rights Agreement executed December 29, 2006 by and between Masters
      and Original Buyer in connection with the Subscription Agreement, is subject
      to
      the amendments made herein and the Common Stock described herein shall
      constitute the “Registrable Securities” thereunder.

    
       

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    II. MISCELLANEOUS

    

    A. To
      the
      extent any provision of the Original Agreement, conflicts with any provision
      of
      this Sixth Amendment, the provisions of this Sixth Amendment shall control
      and
      be used to determine the obligations of the Parties.

    

    B. The
      parties ratify confirm and adopt the Original Agreement as amended and
      supplemented by this Sixth Amendment.

    

    C. Facsimile
      delivery of this Sixth Amendment signed by each party to the other shall be
      binding and effective the same as if an original signed copy has been delivered
      by each party to the other. This Sixth Amendment may be executed in multiple
      counterparts, each of which shall be considered an original and all of which
      together shall constitute one and the same document.

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed this Sixth Amendment as of the date and year first
      above written.

     

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
        3

        
          

        

      

       

    

     

    TEKOIL
      AND GAS GULF COAST, LLC

     

    By: Tekoil
      & Gas Corporation,

    Its
      Sole
      Member

     

     

    By: /s/
      Mark
      S. Western 

    
      

    

    Name:
      Mark Western

    Title: President

    
      	 	 	 
	MASTERS
              RESOURCES, LLC:	MASTERS
              OIL & GAS, LLC:
	 
 	 
 	 
 
	By: /s/
              John W. Barton	By:  	/s/
              John W. Barton
	
              
                

              

              Name: John
                W. Barton

              Title: Manager

            	
              
                

              

              Name: John
                W. Barton

              Title: Manager

            

    

    
       

      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A TO SIXTH AMENDMENT

     

    TEKOIL
      & GAS CORPORATION

     

    SECOND
      AMENDED AND RESTATED

    SUBSCRIPTION
      AGREEMENT

     

    This
      Agreement supersedes and replaces a certain Amended and Restated Subscription
      Agreement executed by the parties hereto as of April 12, 2007.

     

    THE
      COMMON STOCK HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “SECURITIES ACT”) OR UNDER THE PROVISIONS OF ANY APPLICABLE STATE
      SECURITIES LAWS. THE COMMON STOCK MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
      HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL
      SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT
      OR
      UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT.

     

    1. Subscription.
      Subscriber (as identified on the signature page attached hereto) hereby
      subscribes for and agrees to be issued Nine Million (9,000,000) shares of Common
      Stock (the “Common
      Stock”)
      of
      Tekoil & Gas Corporation, a Delaware corporation (the “Company”),
      all
      as consideration under the “PSA” described below. The Common Stock is also
      referred to herein as the “Securities”.

     

    2. Consideration.
      The
      Securities constitute a portion of the consideration payable by the Company
      to
      Subscriber under a certain Purchase and Sale Agreement dated November ___,
      2006,
      and as amended December 29, 2006, in connection with the acquisition and sale
      of
      certain assets described therein, as amended through the date hereof (referred
      to together as the “PSA”).
      Capitalized terms used herein and not otherwise defined have the meanings
      ascribed to them in the PSA.

     

    3. Subscriber's
      Representations and Warranties.
      Subscriber represents, warrants, acknowledges and agrees that:

     

    (a) Subscriber
      is a resident of the state indicated on the signature page hereof, is legally
      competent to execute this Second Amended and Restated Subscription Agreement,
      and:

     

    (i) if
      Subscriber is an individual, has his or her principal residence in such
      state;

     

    (ii) if
      Subscriber is a corporation, partnership, trust, limited liability company
      or
      other form of business organization, has its principal office in such state;
      or

     

    (iii) if
      Subscriber is a corporation, partnership, trust, limited liability company
      or
      other form of business organization, Subscriber has not been organized for
      the
      specific purpose of acquiring the Common Stock.

     

    (b) Subscriber
      has not been offered the Securities by any form of general solicitation or
      general advertising, including but not limited to any advertisement, article,
      notice or other communication published in any newspaper, magazine, or similar
      media or broadcast over television or radio, or any seminar or meeting whose
      attendees have been invited by any general solicitation or general
      advertising.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) Subscriber
      has had access during the course of this transaction and prior to the issuance
      of the Securities to all information necessary to enable Subscriber to evaluate
      the merits and risks of a prospective investment in the Company (including,
      without limitation, the periodic and other reports filed by the Company with
      the
      U.S. Securities and Exchange Commission (the “SEC”) under the Securities
      Exchange Act of 1934, as amended (the “Exchange Act”)), and Subscriber has had
      the opportunity to ask questions of and receive answers from the officers and
      directors of the Company, or a person or persons acting on its behalf,
      concerning the terms and conditions of the offering and all questions raised
      by
      Subscriber have been answered to the full satisfaction of
      Subscriber.

     

    (d) There
      are
      substantial restrictions on the transferability of the Securities and,
      accordingly, Subscriber will need to bear the economic risk of the investment
      in
      the Securities for an indefinite period of time and will not be readily able
      to
      liquidate the investment in case of an emergency.

     

    (e) Subscriber
      understands that the Company has a limited financial or operating history,
      each
      of the Securities is a speculative investment which involves a high degree
      of
      financial risk, and there is no assurance of any economic, income or tax benefit
      from such investment.

     

    (f) In
      making
      this investment, Subscriber is relying solely upon the advice of Subscriber's
      personal tax advisors, and not the Company nor its advisers and counsel, with
      respect to the tax aspects of an investment in the Securities.

     

    (g) If
      Subscriber is a corporation, partnership, trust, limited liability company,
      employee benefit plan or other entity, Subscriber is authorized and qualified
      to
      become a stockholder of the Company and the person signing this Second Amended
      and Restated Subscription Agreement on behalf of such entity has been duly
      authorized by such entity to do so.

     

    (h) No
      representations or warranties have been made to Subscriber by the Company or
      any
      officer, employee, agent or affiliate of the Company (other than those set
      forth
      in the PSA), and Subscriber's investment decision has been based solely upon
      Subscriber's independent evaluation and due diligence, if any, of the
      Company.

     

    (i) Subscriber
      is experienced in evaluating and investing in early stage companies such as
      the
      Company. Subscriber is experienced in business matters and regards himself,
      herself or itself as a sophisticated investor able to evaluate investment and
      financial information and to choose independent professional advisors to assist
      in such evaluation and, either alone or with such advisers, has such knowledge
      and experience in financial and business matters that Subscriber is capable
      of
      evaluating the merits and risks of an investment in the Securities and has
      the
      capacity to protect Subscriber’s own interests in connection with Subscriber’s
      proposed investment in the Securities.

     

    (j) Subscriber’s
      aggregate commitments to investments that are not readily marketable are not
      disproportionate to Subscriber’s net worth and an investment in the Securities
      will not cause such aggregate commitment to become excessive. Subscriber has
      adequate means of providing for Subscriber’s current needs and possible personal
      and family contingencies. Subscriber will not be readily able to liquidate
      the
      investment in the case of an emergency, and Subscriber has no need for liquidity
      in this investment in the Company.

     

    (k) Subscriber
      has a preexisting business or personal relationship with the Company or with
      one
      or more of its officers or directors. Except for Subscriber’s intention to
      distribute the shares (or cause them to be issued directly) to its members,
      pro-rata, on condition that they make the representations, warranties and
      agreements herein provided in favor of Company, Subscriber is acquiring the
      Securities solely for Subscriber’s own account for investment (and not for the
      account of any other person), and not with a view to, or for, any resale,
      distribution, fractionalization or other transfer thereof, and Subscriber has
      no
      present plans to enter into any contract, undertaking, agreement or arrangement
      for any such resale, distribution, fractionalization or transfer.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    4. Representations
      and Warranties Concerning Suitability and Accredited Investor
      Status.
      Subscriber hereby represents and warrants to the Company that Subscriber is
      an
“Accredited Investor” (as defined under Regulation D as promulgated and
      amended by the SEC pursuant to the Securities Act) on the basis of the
      representations made by Subscriber to the Company below. Subscriber hereby
      represents and warrants and agrees that:

     

    (a) Subscriber
      has such knowledge and experience in financial and business matters as to be
      capable of evaluating the merits and risks of an investment in the Company
      and
      has obtained sufficient information from the Company to evaluate the merits
      and
      risks of an investment in the Company.

     

    (b) Subscriber
      has determined that the Securities are a suitable investment for Subscriber.
      Subscriber is able to bear the economic risk of the investment in the Company
      (including a complete loss thereof) and has adequate financial or other means
      for providing for Subscriber's current needs and contingencies and has no need
      for liquidity in this investment.

     

    5. Fees
      and Expenses.
      Subscriber shall pay for all its own fees and expenses in connection with this
      subscription, including without limitation legal fees and fees of its advisors
      and counsel, if any.

     

    6. Restrictions.
      The
      Subscriber will not at any time make any disposition of any of the Securities
      except in accordance with applicable federal and state securities laws and
      the
      legend set forth below. The certificates for the Securities, the Note and the
      Conversion Stock to be issued to the undersigned will bear a legend in
      substantially the following form:

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE. SUCH SECURITIES
      MAY
      NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OF 1933 AND ANY APPLICABLE STATE SECURITIES
      LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION
      IS
      NOT REQUIRED UNDER THE SECURITIES ACT OF 1933 OR SUCH LAWS.

     

    In
      the
      event the Common Stock may be publicly resold under the Registration Rights
      Agreement or otherwise under applicable securities laws, Subscriber agrees
      that
      it will not publicly resell more than 250,000 shares thereof per calendar week.
      Subscriber agrees that a legend reflecting the foregoing and reasonable transfer
      restrictions consistent therewith may be placed on the Common
      Stock.

     

    7. Miscellaneous.
      The
      terms and conditions contained in this Second Amended and Restated Subscription
      Agreement (together with the PSA and a certain Registration Rights Agreement
      executed by the Company and Subscriber of even date herewith) constitute the
      entire agreement between the parties with respect to the subject matter hereof
      and supersede all previous agreements and understandings, whether oral or
      written, between the parties hereto with respect to the subject matter hereof.
      This Second Amended and Restated Subscription Agreement shall be construed
      in
      accordance with and governed by the laws of the State of Delaware. This Second
      Amended and Restated Subscription Agreement may be amended only by a writing
      executed by the Company and Subscriber.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      Subscriber has executed this Second Amended and Restated Subscription Agreement
      on the date indicated on the signature page hereof.

     

    [SIGNATURES
      ON NEXT
      PAGE]

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    The
      undersigned Subscriber confirms and certifies that Subscriber has read this
      entire Second Amended and Restated Subscription Agreement and understands the
      provisions hereof, and that the undersigned has executed this Second Amended
      and
      Restated Subscription Agreement as of the date set forth below.

     

    DATED:
      April ____, 2007

     

    Which
      will be held by Subscriber(s) in the following manner, if
      applicable:

    

      
        	
                (     )

              	
                Community
                  Property

              	
                (     )

              	
                Joint
                  Tenants with Right of Survivorship

              
	 	 	 	 
	
                (     )

              	
                Tenants
                  in Common

              	
                (     )

              	
                Separate
                  Property

              
	 	 	 	 
	
                (     )

              	
                Other:
                  (e.g. individual, corporation, partnership, limited liability company,
                  trust, investment company). Please indicate:_____________.

              

      

    

     

    Subscriber
      Signature(s)

    
      	 	 	 	 
	MASTERS RESOURCES, LLC  	 	 	
              MASTERS
                OIL & GAS, LLC

            
	 	 	 	 
	
              
 	 	 	
              
 
	 	 	 	 
	
              

              Name
                and Title of Signatory if Subscriber is 

              an
                entity

            	 	 	
              

            
	 	 	 	 
	 	 	 	 
	
              
Signature	 	 	
              
Signature
              of Joint Subscriber
	 	 	 	 
	 	 	 	 
	
              

              Social
                Security or Tax ID Number 

            	 	 	
              
Social
              Security or Tax ID Number of Joint Subscriber
	 	 	 	 
	 	 	 	 
	
              
Address	 	 	
              
Address
              of Joint Subscriber
	 	 	 	 
	 	 	 	 
	
              
 	 	 	
              
 
	 	 	 	 
	Reviewed and Advised
              By
              (if any):	 	 	Accepted
              By:
	 	 	 	 
	 	 	 	 
	
              
Subscriber’s
              Professional Advisor 	 	 	
              TEKOIL & GAS
                CORPORATION,

              
                a
                  Delaware corporation

              

            
	 	 	 	 
	 	 	 	 
	
              
Name	 	 	
              
Signature
	 	 	 	 
	 	 	 	 
	
              

              Address

            	 	 	
              
                
Name/Title

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

       

    

    Note: 

     

    In
      the
      case of subscription by,

     

    
      	 	
              ·

            	
              Joint
                Tenants
                with Rights of Survivorship or Tenants
                in Common,
                all tenants must execute this
                subscription,

            

    

     

    
      	 	
              ·

            	
              Husband
                and Wife,
                as community property, one signature only is
                required.

            

    

     

    
      	 	
              ·

            	
              A
                Trust,
                the Trustee must sign and a copy of the Trust Agreement should be
                provided.

            

    

     

    
      	 	
              ·

            	
              A
                Partnership,
                a
                copy of the Statement of Partnership or the Partnership Agreement
                should
                be provided, and execution must be by the number of partners required
                therein to bind the Partnership.

            

    

     

    
      	 	
              ·

            	
              A
                Corporation,
                a
                resolution of the Board of Directors authorizing the subscription
                and
                certified by the Secretary should be
                included.

            

    

     

    
      
        
        

      

      
        6CONVERSION
      SERVICES INTERNATIONAL, INC.

    10%
      CONVERTIBLE UNSECURED NOTE

    DUE
      ON AUGUST 31, 2007

    

    
      	
              $250,000

            	
              April
                27, 2007

            

    

    

    THIS
      NOTE IS ISSUED PURSUANT TO AN EXEMPTION FROM THE REGISTRATION PROVISIONS OF
      THE
      SECURITIES ACT OF 1933 (THE "ACT") AND QUALIFICATION PROVISIONS OF APPLICABLE
      STATE SECURITIES LAWS. NEITHER IT NOR THE SHARES OF COMMON STOCK INTO WHICH
      IT
      CAN BE CONVERTED CAN BE SOLD, HYPOTHECATED OR OTHERWISE TRANSFERRED UNLESS
      REGISTERED PURSUANT TO THE ACT AND QUALIFIED UNDER APPLICABLE STATE LAW OR,
      IN
      THE OPINION OF COUNSEL REASONABLY ACCEPTABLE TO MAKER, AN EXEMPTION THEREFROM
      IS
      AVAILABLE.

    

    FOR
      VALUE
      RECEIVED, the undersigned, Conversion Services International, Inc., a Delaware
      corporation with an address at 100 Eagle Rock Avenue, East Hanover, New Jersey
      07936, ("Maker"), promises to pay to TAG
      Virgin Islands, Inc.,
      with
      an address at The
      Tunick Building, 1336 Beltjen Road, Suite 202,
      St.
      Thomas, VI 00802, as agent ("Payee"),
      on August 31, 2007, or sooner as otherwise provided herein (the "Maturity
      Date"), the principal amount of Two
      Hundred Fifty Thousand ($250,000)
      Dollars
      in
      lawful money of the United States of America (the "Principal”). This Note bears
      interest (the "Interest"), payable on the earlier of the Maturity Date or the
      date on which this Note is converted into Maker's common stock as provided
      herein, at the annual rate of ten percent (10%), except as otherwise provided
      herein, until the Principal and all accrued Interest thereon (collectively
      the
“Obligations”) shall be paid in full. This Note is convertible into Maker's
      common stock,
      par
      value $0.001 per share (the "Common Stock"), as set forth below. 

    

    1.
      Interest;
      Repayment of Principal.
      

    

    Interest
      on the Note will accrue from the most recent date to which Interest has been
      paid or, if no Interest has been paid, from the date of delivery of the Note.
      It
      will be computed on the basis of a 360-day year of twelve 30-day months. Maker
      shall repay to Payee the full Principal, Two Hundred Fifty Thousand ($250,000)
      Dollars, on the Maturity Date plus accrued but unpaid Interest.

    

    2. Method
      of Payment.
      

    

    Maker
      will pay Principal and Interest in money of the United States that at the time
      of payment is legal tender for the payment of public and private debts. All
      payments shall be sent to Payee at its address first set forth above or such
      other address as Payee shall notify Maker pursuant to the provisions of
Paragraph
      11 (g)
      below.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

      $250,000
        Convertible Unsecured Note 

      of
        Conversion
        Services International, Inc. 

      payable
        to TAG
        Virgin Islands, Inc.

      as
        agent
        dated April 27, 2007

       

    

    3. Conversion.
      

    

    (a) Conversion
      of Note. Except as provided in Paragraph
      4(d)(iii)
      of this
Section
      3
      below,
      the Principal of this Note (the “Convertible Obligations”) shall convert into
      shares of Common Stock (the "Underlying Shares"), as provided in Paragraph
      3(b)
      below,
      after the date that Maker shall increase the number of shares of Common Stock
      it
      is authorized to issue to no less than one hundred fifty million (150,000,000)
      shares (the “Authorization Increase”). The date on which the Authorization
      Increase is effected shall be the “Authorization
      Increase Date.”
Maker
      shall notify (the “Authorization Increase Notice”) Payee and Barry Feiner, Esq.
      (the “Payee Counsel”) of the occurrence of the Authorization Increase within one
      (1) business day after the Authorization Increase Date. The price for conversion
      (the “Conversion Price”), subject to adjustment as provided in Section
      4
      below,
      shall be $0.30 per share. Maker will not issue a fractional share of Common
      Stock upon conversion but will round any fractional share to the nearest share
      so that if the fraction is less than 0.5 no share shall be issued and if the
      fraction is 0.5 or higher Maker shall issue one full share. Maker shall pay
      Payee all accrued but unpaid Interest (the “Outstanding Interest”) as of the
      Conversion Date, as defined in Paragraph
      3 (b)
      below,
      as provided in Paragraph
      3(b)
      below.

    

    (b) Manner
      of
      Conversion and Payment of Outstanding Interest. Unless otherwise temporarily
      restricted by a pending listing application with the any securities exchange,
      market or other quotation system that the Company’s securities are then listed
      on, within five (5) business days after the Authorization Increase Date, Maker
      shall issue the number of Underlying Shares into which the Convertible
      Obligations are to be converted in accordance with the Conversion Price and
      deliver to the Payee Counsel a certificate or certificates (the “Underlying
      Shares Certificates”) therefor, registered in Payee’s name, representing such
      Underlying Shares and wire the
      Outstanding Interest
      to the
      escrow account of the Payee Counsel. Payee shall deliver the Note to the Payee
      Counsel within five (5) business days after it receives the Authorization
      Increase Notice. Payee shall also deliver to the Payee Counsel within the
      aforesaid five (5) business day period, a letter addressed to Maker (the
“Investment Letter”) in which it shall represent to Maker that it will acquire
      the Underlying Shares for investment only and not for resale or with a view
      to
      the distribution thereof, and shall agree that any certificates representing
      the
      Underlying Shares may bear a legend, conspicuously noting such restriction,
      as
      Maker shall deem reasonably necessary or desirable to enable it to comply with
      any applicable federal or state laws or regulations. The Payee Counsel shall,
      within one (1) business day after the later of his receipt of the Note and
      the
      Investment Letter from Payee or the Underlying Shares Certificates and the
      Outstanding Interest from Maker, deliver the Note to Maker and the Underlying
      Shares Certificates and Outstanding Interest to Payee. The date on which the
      Payee Counsel shall deliver the Underlying Shares Certificates and the
      Outstanding Interest to Payee is herein referred to as the “Conversion Date.”
After the Conversion Date this Note shall be void and Payee shall have the
      sole
      right to receive the Underlying Shares and the Outstanding
      Interest.

    

    (c) Taxes
      on
      Shares Issued. The issue of stock certificates on conversion of this Note shall
      be made without charge to Payee for any tax in respect of such issue. Maker
      shall not, however, be required to pay any tax that may be payable in respect
      of
      any transfer involved in the issue and delivery of Common Stock in any name
      other than that of Payee, and Maker shall not be required to issue or deliver
      any certificates representing such Common Stock unless and until the person
      or
      persons requesting the issue thereof shall have paid to Maker the amount of
      such
      tax or shall have established to the satisfaction of Maker that such tax has
      been paid.

    

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    
       

      $250,000
        Convertible Unsecured Note 

      of
        Conversion
        Services International, Inc. 

      payable
        to TAG
        Virgin Islands, Inc.

      as
        agent
        dated April 27, 2007

       

    

    (d) Covenants
      of Maker Relating to Conversion. Maker covenants and agrees that, except as
      provided in Subparagraphs (i) and (iv) of this Paragraph
      3(d),
      from
      and after the date hereof and until the date of repayment in full of the
      Obligations, or full conversion of the Convertible Obligations:

    

    (i) 
      On the
      Conversion Date it shall have, free from preemptive rights, out of its
      authorized but unissued shares, or out of shares held in its treasury,
      sufficient shares to effect the conversion of the Convertible
      Obligations;

    

    (ii) All
      Underlying Shares that may be issued upon conversion of the Convertible
      Obligations will upon issue be validly issued, fully paid and non-assessable,
      free from all taxes, liens and charges with respect to the issue thereof except
      as provided in Paragraph
      3(c)
      above,
      and will not be subject to the preemptive rights of any stockholder of
      Maker;

    

    (iii) If
      any
      Underlying Shares to be provided for the purpose of conversion of the
      Convertible Obligations require registration with or approval of any
      governmental authority under any federal or state law before such shares may
      be
      validly issued upon conversion, Maker will in good faith and as expeditiously
      as
      possible attempt to secure such registration or approval, as the case may be,
      and Maker's obligation to deliver shares of the Common Stock upon conversion
      of
      the Convertible Obligations shall be abated until such registration or approval
      is obtained; provided,
      however,
      that
      this Note and the Obligations shall remain outstanding unless paid in full
      until
      Maker delivers the Underlying Shares and the Outstanding Interest to Payee
      and
      in no event shall this Note be converted until Maker effects such delivery;
      and

    

    (iv) If
      on the
      Conversion Date, and thereafter so long as the Common Stock shall be listed
      on
      any securities exchange, market or other quotation system, Maker will, if
      permitted by the rules of such exchange, market or other quotation system,
      list
      and keep listed and for sale so long as the Common Stock shall be so listed
      on
      such exchange, market or other quotation system, upon official notice of
      issuance, all Underlying Shares issuable upon conversion of the Convertible
      Obligations.

    

    4. Adjustment
      in Conversion Price.
      

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    
      
         

        $250,000
          Convertible Unsecured Note 

        of
          Conversion
          Services International, Inc. 

        payable
          to TAG
          Virgin Islands, Inc.

        as
          agent
          dated April 27, 2007

         

      

    

    (a) Adjustments
      for Change in Capital Stock. Except as provided in Paragraph
      4(n)
      below,
      if Maker shall (i) declare a dividend on all its outstanding Common Stock in
      shares of its capital stock, (ii) subdivide all its outstanding Common Stock,
      (iii) combine all its outstanding Common Stock into a smaller number of shares,
      or (iv) issue any shares of its capital stock by reclassification of its Common
      Stock (including any such reclassification in connection with a consolidation
      or
      merger in which Maker is the continuing corporation), then in each such case
      the
      conversion privilege and the Conversion Price in effect immediately prior to
      such action shall be adjusted so that if the Note is thereafter converted,
      Payee
      may receive the number and kind of shares that it would have owned immediately
      following such action if it had converted the Note immediately prior to such
      action. Such adjustment shall be made successively whenever such an event shall
      occur. The adjustment shall become effective immediately after the record date
      in the case of a dividend or distribution and immediately after the effective
      date in the case of a subdivision, combination or reclassification. If after
      an
      adjustment Payee upon conversion of this Note may receive shares of two or
      more
      classes of capital stock of Maker, Maker's Board of Directors, in good faith,
      shall determine the allocation of the adjusted Conversion Price between the
      classes of capital stock. After such allocation, the conversion privilege and
      Conversion Price of each class of capital stock shall thereafter be subject
      to
      adjustment on terms comparable to those applicable to Common Stock in this
      Section
      4.

    

    (b) Subscription
      Offerings. In case Maker shall issue to all of its existing stockholders or
      otherwise grant rights, options, or warrants entitling the holders thereof
      to
      subscribe for or purchase Common Stock (or securities convertible into or
      exchangeable for Common Stock) at a price per share (or having a conversion
      price per share, in the case of a security convertible into or exchangeable
      for
      Common Stock) less than the Current Market Price per share (as defined in
Paragraph
      4(d)
      below)
      on the record date for the determination of stockholders entitled to receive
      such rights or granting date, as the case may be, then in each such case the
      Conversion Price in effect immediately prior to such action (the “Existing
      Conversion Price”) shall be adjusted by multiplying the Existing Conversion
      Price in effect immediately prior to such record or granting date by a fraction,
      of which the numerator shall be the number of shares of Common Stock outstanding
      on such record or granting date plus the number of shares of Common Stock which
      the aggregate offering price of the total number of shares of Common Stock
      so to
      be offered (or the aggregate initial conversion price of the convertible
      securities so to be offered) would purchase at such Current Market Price and
      of
      which the denominator shall be the number of shares of Common Stock outstanding
      on such record or granting date plus the number of additional shares of Common
      Stock to be offered for subscription or purchase (or into which the convertible
      or exchangeable securities so to be offered are initially convertible or
      exchangeable). Such adjustment shall become effective at the close of business
      on such record or granting date; provided,
      however,
      that,
      to the extent the shares of Common Stock (or securities convertible into or
      exchangeable for shares of Common Stock) are not delivered, the Conversion
      Price
      shall be readjusted after the expiration of such rights, options, or warrants
      (but only to the extent that this Note is not converted after such expiration),
      to the Conversion Price which would then be in effect had the adjustments made
      upon the issuance of such rights or warrants been made upon the basis of
      delivery of only the number of shares of Common Stock (or securities convertible
      into or exchangeable for shares of Common Stock) actually issued. In case any
      subscription price may be paid in a consideration part or all of which shall
      be
      in a form other than cash, the value of such consideration shall be as
      determined by Maker's Board of Directors, in good faith. Shares of Common Stock
      owned by or held for the account of Maker or any majority-owned subsidiary
      shall
      not be deemed outstanding for the purpose of any such computation. 

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    
      
         

        $250,000
          Convertible Unsecured Note 

        of
          Conversion
          Services International, Inc. 

        payable
          to TAG
          Virgin Islands, Inc.

        as
          agent
          dated April 27, 2007

         

      

    

    (c) Other
      Rights to Acquire Common Stock. In case Maker shall distribute to all holders
      of
      its Common Stock evidences of its indebtedness or assets (excluding cash
      dividends or distributions paid from retained earnings of Maker) or rights
      or
      warrants to subscribe for or purchase Common Stock (excluding those referred
      to
      in Paragraph
      4(b)
      above),
      then in each such case the Conversion Price shall be adjusted so that the same
      shall equal the price determined by multiplying the Conversion Price in effect
      immediately prior to the date of such distribution by a fraction of which the
      numerator shall be the Current Market Price per share (as defined in
Paragraph
      4(d)
      below)
      of the Common Stock on the record date mentioned below less the then fair market
      value (as determined in good faith by the Board of Directors of Maker) of the
      portion of the assets or evidences of indebtedness so distributed or of such
      rights or warrants applicable to one share of Common Stock, and the denominator
      shall be the Current Market Price per share of the Common Stock. Such adjustment
      shall become effective immediately after the record date for the determination
      of shareholders entitled to receive such distribution. 

    

    (d) Current
      Market Price. For the purpose of any computation under Paragraphs
      4(b) and
      (c)
      above,
      the "Current Market Price" per share of Common Stock on any date shall be deemed
      to be the average of the daily “Closing Price” for the thirty (30) consecutive
      trading days commencing forty five (45) trading days before such date. The
      "Closing Price" for each day shall mean the last reported sales price regular
      way or, in case no such reported sale takes place on such day, the closing
      bid
      price regular way, in either case on the principal national securities exchange
      on which the Common Stock is listed or admitted to trading or, if the Common
      Stock is not listed or admitted to trading on any national securities exchange,
      the highest reported bid price as furnished by the National Association of
      Securities Dealers, Inc. through NASDAQ or similar organization if NASDAQ is
      no
      longer reporting such information, or by the Pink Sheets, LLC or similar
      organization if the Common Stock is not then quoted on an inter-dealer quotation
      system. If on any such date the Common Stock is not quoted by any such
      organization, the fair value of the Common Stock on such date, as determined
      in
      good faith by Maker's Board of Directors, shall be used. 

    

    (e) Action
      to
      Permit Valid Issuance of Common Stock. Before taking any action which would
      cause an adjustment reducing the Conversion Price below the then par value,
      if
      any, of the shares of Common Stock issuable upon conversion of this Note, Maker
      will take all corporate action which may, in the opinion of its counsel, be
      necessary in order that Maker may validly and legally issue shares of such
      Common Stock at such adjusted Conversion Price. 

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    
      
         

        $250,000
          Convertible Unsecured Note 

        of
          Conversion
          Services International, Inc. 

        payable
          to TAG
          Virgin Islands, Inc.

        as
          agent
          dated April 27, 2007

         

      

    

    (f) Minimum
      Adjustment. No adjustment in the Conversion Price shall be required if such
      adjustment is less than 1% of the then Existing Conversion Price; provided,
      however,
      that
      any adjustments which by reason of this Paragraph
      4(f)
      are not
      required to be made shall be carried forward and taken into account in any
      subsequent adjustment. All calculations under this Section
      4
      shall be
      made to the nearest cent or to the nearest one-hundredth of a share, as the
      case
      may be. Anything to the contrary notwithstanding, Maker shall be entitled to
      make such reductions in the Conversion Price, in addition to those required
      by
      this Paragraph
      4(f),
      as it
      in its discretion shall determine to be advisable in order that any stock
      dividends, subdivision of shares, distribution of rights to purchase stock
      or
      securities, or distribution of securities convertible into or exchangeable
      for
      stock hereafter made by Maker to its stockholders shall not be taxable.

    

    (g) Referral
      of Adjustment. In any case in which this Section
      4
      shall
      require that an adjustment in the Conversion Price be made effective as of
      a
      record date for a specified event, if the Note shall have been converted after
      such record date Maker may elect to defer until the occurrence of such event
      issuing to Payee the shares, if any, issuable upon such conversion event over
      and above the shares, if any, issuable upon such conversion on the basis of
      the
      Conversion Price in effect prior to such adjustment; provided,
      however,
      that
      Maker shall deliver to Payee a due bill or other appropriate instrument
      evidencing Payee's right to receive such additional shares upon the occurrence
      of the event requiring such adjustment. 

    

    (h) Number
      of
      Shares. Upon each adjustment of the Conversion Price as a result of the
      calculations made in Paragraphs
      4(a)
      through
(c)
      above,
      this Note shall thereafter evidence the right to purchase, at the adjusted
      Conversion Price, that number of shares (calculated to the nearest
      one-hundredth) obtained by dividing (i) the product obtained by multiplying
      the
      number of shares issuable upon conversion of this Note prior to adjustment
      of
      the number of shares by the Conversion Price in effect prior to adjustment
      of
      the Conversion Price by (ii) the Conversion Price in effect after such
      adjustment of the Conversion Price. 

    

    (i) When
      No
      Adjustment Required. No adjustment need be made for a transaction referred
      to in
Paragraphs
      4(a)
      through
(c)
      above if
      Payee is permitted to participate in the transaction on a basis no less
      favorable than any other party and at a level which would preserve Payee's
      percentage equity participation in the Common Stock upon conversion of the
      Note.
      No adjustment need be made for sales of Common Stock pursuant to any Maker
      plan
      for reinvestment of dividends or interest, the granting of options and/or the
      exercise of options outstanding under any of Maker's stock option plans, the
      exercise of any other of Maker's currently outstanding options, or any currently
      authorized warrants, whether or not outstanding. No adjustment need be made
      for
      a change in the par value of the Common Stock, or from par value to no par
      value. If the Note becomes convertible solely into cash, no adjustment need
      be
      made thereafter. Interest will not accrue on the cash. 

    

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    
      
         

        $250,000
          Convertible Unsecured Note 

        of
          Conversion
          Services International, Inc. 

        payable
          to TAG
          Virgin Islands, Inc.

        as
          agent
          dated April 27, 2007

         

        (j) Notice
          of
          Adjustment. Whenever the Conversion Price is adjusted, Maker shall promptly
          mail
          to Payee a notice of the adjustment together with a certificate from Maker's
          Chief Financial Officer briefly stating (i) the facts requiring the adjustment,
          (ii) the adjusted Conversion Price and the manner of computing it, and
          the date
          on which such adjustment becomes effective. The certificate shall be evidence
          that the adjustment is correct, absent manifest error. 

      

    

    

    (k) Voluntary
      Reduction. Maker from time to time may reduce the Conversion Price by any amount
      for any period of time if the period is at least twenty (20) days and if the
      reduction is irrevocable during the period. Whenever the Conversion Price is
      reduced, Maker shall mail to Payee a notice of the reduction. Maker shall mail
      the notice at least fifteen (15) days before the date the reduced Conversion
      Price takes effect. The notice shall state the reduced Conversion Price and
      the
      period it will be in effect. A reduction of the Conversion Price does not change
      or adjust the Conversion Price otherwise in effect for purposes of Paragraphs
      4(a)
      through
(c)
      above.
      Anything to the contrary notwithstanding, this Paragraph
      4(k)
      shall be
      void and of no effect if it violates the rules and/or regulations of any
      exchange on which the Common Stock is then listed for trading. 

    

    (l) Prohibition
      against Certain Reductions of Exercise Price. Anything to the contrary
      notwithstanding, in no event shall the Conversion Price be reduced below the
      par
      value of the Common Stock. 

    

    (m) Notice
      of
      Certain Transactions. If (i) Maker takes any action that would require an
      adjustment in the Conversion Price pursuant to this Section
      4;
      or (ii)
      there is a liquidation or dissolution of Maker, Maker shall mail to Payee a
      notice stating the proposed record date for a distribution or effective date
      of
      a reclassification, consolidation, merger, transfer, lease, liquidation or
      dissolution. Maker shall mail the notice at least fifteen (15) days before
      such
      date. Failure to mail the notice or any defect in it shall not affect the
      validity of the transaction. 

    

    (n) Reorganization
      of Company. If Maker and/or the holders of Common Stock are parties to a merger,
      consolidation or a transaction in which (i) Maker transfers or leases
      substantially all of its assets; (ii) Maker reclassifies or changes its
      outstanding Common Stock; or (iii) the Common Stock is exchanged for securities,
      cash or other assets; the person who is the transferee or lessee of such assets
      or is obligated to deliver such securities, cash or other assets shall assume
      the obligations under this Note. If the issuer of securities deliverable upon
      conversion of the Note is an affiliate of the surviving, transferee or lessee
      corporation, that issuer shall join in such assumption. The assumption agreement
      shall provide that the Payee may convert the Convertible Obligations into the
      kind and amount of securities, cash or other assets which it would have owned
      immediately after the consolidation, merger, transfer, lease or exchange if
      it
      had converted the Note immediately before the effective date of the transaction.
      The assumption agreement shall provide for adjustments that shall be as nearly
      equivalent as may be practical to the adjustments provided for in this
Section
      4.
      The
      successor company shall mail to Payee a notice briefly describing the assumption
      agreement. If this Paragraph applies, Paragraph
      4(a)
      above
      does not apply. 

    

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

       

      $250,000
        Convertible Unsecured Note 

      of
        Conversion
        Services International, Inc. 

      payable
        to TAG
        Virgin Islands, Inc.

      as
        agent
        dated April 27, 2007

       

    

    5. Covenants.
      

    

    Maker
      covenants and agrees that from and after the date hereof and until the date
      of
      repayment in full of the Obligations it shall comply with the following
      conditions:

    

    (i) Maintenance
      of Existence and Conduct of Business. Maker shall, and shall cause each of
      its
      subsidiaries, if
      any,
      to (A)
      do or cause to be done all things necessary to preserve and keep in full force
      and effect its legal existence and rights and maintain its property; and (B)
      continue to conduct its business so that the business carried on in connection
      therewith may be properly and advantageously conducted at all
      times.

    

    (ii) Books
      and
      Records. Maker shall, and shall cause each of its subsidiaries, if any, to
      keep
      adequate books and records of account with respect to its business
      activities.

    

    (iii) Insurance.
      Maker shall, and shall cause each of its subsidiaries, if any, to maintain
      insurance policies insuring such risks as are customarily insured against by
      companies engaged in businesses and/or with property similar to those operated
      and/or owned or leased by Maker or any such subsidiaries, as the case may be,
      including but not limited to, insurance policies covering real property
      acceptable to Payee on which Payee is named as an additional insured. All such
      policies are to be carried with reputable insurance carriers and shall be in
      such amounts as are customarily insured against by companies with similar assets
      and properties engaged in a similar business.

    

    (iv) Compliance
      with Law. Maker shall, and shall cause each of its subsidiaries, if any, to
      comply in all material respects with all federal, state, local and other laws
      and regulations applicable to it or any such subsidiaries, as the case may
      be,
      which, if breached, would have a material adverse effect on Maker's or any
      such
      subsidiaries', as the case may be, business or financial condition.

    

    (v) Compliance
      with Material Agreements. All of the terms of Maker’s material agreements,
      including but not limited to all of Maker’s agreements with Laurus and its
      affiliates (the “Laurus Agreements”) and the Sands Group (the “Sands
      Agreements”) shall be complied with and each of them shall be kept in full force
      and effect in accordance with their respective terms.

    

    6. Reorganization
      of Maker.

    

    If
      Maker
      is party to a merger, consolidation or a transaction in which it is not the
      surviving or continuing entity or transfers or leases all or substantially
      all
      of its assets, the person who is the surviving or continuing entity or is the
      transferee or lessee of such assets shall assume the terms of this Note and
      the
      Obligations.

    

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

      $250,000
        Convertible Unsecured Note 

      of
        Conversion
        Services International, Inc. 

      payable
        to TAG
        Virgin Islands, Inc.

      as
        agent
        dated April 27, 2007

       

    

    7. Representations
      and Warranties of Maker.

    

    Maker
      represents and warrants that (i) it is a corporation duly organized, validly
      existing and in good standing under the laws of Delaware and has all requisite
      power to carry on its business as now conducted and to own its properties and
      assets it now owns; (ii) it is duly qualified or licensed to do business as
      a
      foreign corporation in good standing in the jurisdictions in which ownership
      of
      property or the conduct of its business requires such qualification except
      jurisdictions in which the failure to qualify to do business will have no
      material adverse effect on its business, prospects, operations, properties,
      assets or condition (financial or otherwise); (iii) it has full power and
      authority to execute and deliver this Note, and that the execution and delivery
      of this Note will not result in the breach of or default under, with or without
      the giving of notice and/or the passage of time, any other agreement, financial
      instrument, arrangement or indenture to which it is a party or by which it
      may
      be bound, or the violation of any law, statute, rule, decree, judgment or
      regulation binding upon it, including but not limited to the Laurus Agreements
      and the Sands Agreements; (iv) neither of the Laurus Agreements nor the Sands
      Agreements are in default; (v) it has filed all reports, schedules, forms,
      statements and other documents required to be filed by it with the Securities
      and Exchange Commission (the “Commission”)
      pursuant to the Securities Act of 1933 (the “Securities Act”) and the Securities
      Exchange Act of 1934 (the “Exchange
      Act”)
      (the
“SEC
      Documents”);
      (vi)
      the SEC Documents have complied in all material respects with the requirements
      of the Securities Act or the Exchange Act, as the case may be, and the rules
      and
      regulations of the Commission promulgated thereunder applicable to the SEC
      Documents, and none of the SEC Documents, at the time they were filed with
      the
      Commission, contained any untrue statement of a material fact or omitted to
      state a material fact required to be stated therein or necessary in order to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading; (vii) as of their respective dates, Maker’s financial
      statements included in the SEC Documents complied as to form in all material
      respects with applicable accounting requirements and the published rules and
      regulations of the Commission with respect thereto, such financial statements
      have been prepared in accordance with accounting principles generally accepted
      in the United States as in effect from time to time, consistently applied,
      during the periods involved (except (a) as may be otherwise indicated in such
      financial statements or the notes thereto, or (b) in the case of unaudited
      interim statements, to the extent they may exclude footnotes or may be condensed
      or summary statements) and fairly present in all material respects the financial
      condition of Maker as of the respective dates thereof and the results of its
      operations and cash flows for the respective periods then ended (subject, in
      the
      case of unaudited statements, to normal year-end audit adjustments); (viii)
      except as set forth in the SEC Documents, Maker has not received notification
      from the Commission, the American Stock Exchange and/or any federal or state
      securities bureaus that any investigation (informal or formal), inquiry or
      claim
      is pending, threatened or in process against Maker and/or relating to any of
      Maker’s securities; (ix) except as set forth in the SEC Documents, there is no
      action, suit, proceeding, or investigation pending or currently threatened
      against Maker, and (x) it has taken and will take all acts required, including
      but not limited to authorizing the signatory hereof on its behalf to execute
      this Note, so that upon the execution and delivery of this Note, it shall
      constitute the valid and legally binding obligation of Maker enforceable in
      accordance with the terms thereof.

    

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

       

      $250,000
        Convertible Unsecured Note 

      of
        Conversion
        Services International, Inc. 

      payable
        to TAG
        Virgin Islands, Inc.

      as
        agent
        dated April 27, 2007

       

    

    8. Defaults
      and Remedies.
      

    

    (a) Events
      of
      Default. The occurrence or existence of any one or more of the following events
      or conditions (regardless of the reasons therefor) shall constitute an "Event
      of
      Default" hereunder:

    

    (i) Maker
      shall fail to make any payment of Principal or Interest when due and payable
      or
      declared due and payable pursuant to the terms hereof;

    

    (ii) Maker
      shall fail at any time to be in material compliance with any of the covenants
      set forth in Paragraph
      3(d) or
      Section
      5
      of this
      Note, or shall fail at any time to be in material compliance with or neglect
      to
      perform, keep or observe any of the provisions of this
      Note,
      to be
      complied with, performed, kept or observed by Maker and such failure shall
      remain uncured for a period of five (5) days after notice thereof has been
      given
      by Payee to Maker;

    

    (iii) Any
      representation or warranty made in this Note by Maker shall be untrue or
      incorrect in any material respect as of the date when made or deemed
      made;

    

    (iv) Maker
      shall have received a written notice of default related to any material
      agreement to which it is a party, including but not limited to the Laurus
      Agreements or the Sands Agreements, and such act of default shall remain uncured
      after any applicable cure period;

    

    (v) A
      case or
      proceeding shall have been commenced against Maker or any of its subsidiaries,
      if any, (each a “Proceeding
      Company”)
      in a
      court having competent jurisdiction seeking a decree or order in respect of
      a
      Proceeding Company (A) under Title 11 of the United States Code, as now
      constituted or hereafter amended, or any other applicable federal, state or
      foreign bankruptcy or other similar law; (B) appointing a custodian, receiver,
      liquidator, assignee, trustee or sequestrator (or similar official) of a
      Proceeding Company, or any of its properties; or (C) ordering the winding-up
      or
      liquidation of the affairs of a Proceeding Company, and such case or proceeding
      shall remain unstayed or undismissed for a period of ten (10) consecutive days
      or such court shall enter a decree or order granting the relief sought in such
      case or proceeding; or

    

    (vi) A
      Proceeding Company shall (A) file a petition seeking relief under Title 11
      of
      the United States Code, as now constituted or hereafter amended, or any other
      applicable federal, state or foreign bankruptcy or other similar law; or (B)
      consent to the institution of proceedings thereunder or to the filing of any
      such petition or to the appointment of or the taking of possession by a
      custodian, receiver, liquidator, assignee, trustee or sequestrator (or similar
      official) of such Proceeding Company, or any of its properties.

    

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

       

      $250,000
        Convertible Unsecured Note 

      of
        Conversion
        Services International, Inc. 

      payable
        to TAG
        Virgin Islands, Inc.

      as
        agent
        dated April 27, 2007

       

    

    (b) Remedies.
      Upon the occurrence of an Event of Default specified in Paragraph
      8(a)
      above,
      all Obligations then remaining unpaid hereunder shall immediately become due
      and
      payable in full, plus interest on the unpaid portion of the Obligations at
      the
      highest rate permitted by applicable law, without notice to Maker and without
      presentment, demand, protest or notice of protest, all of which are hereby
      waived by Maker together with all reasonable costs and expenses of the
      collection and enforcement of this Note, including reasonable attorney's fees
      and expenses, all of which shall be added to the amount due under this Note.
      The
      rights, powers, privileges and remedies of Payee pursuant to the terms hereof
      are cumulative and not exclusive of any other rights, powers, privileges and
      remedies which Payee may have under this Note or any other instrument or
      agreement.

    

    9. Acknowledgment
      of Payee's Investment Representations.

    

    By
      accepting this Note, Payee acknowledges that, except as provided in the
      Registration Rights Agreement dated as of the date hereof between Maker and
      Payee, neither this Note nor the Underlying Shares have been or will be
      registered under the Act or qualified under any state securities laws and that
      the transferability thereof is restricted by the registration provisions of
      the
      Act as well as such state laws. Based upon the representations and agreements
      being made by it herein, this Note is being and any Underlying Shares will
      be
      issued to it pursuant to an exemption from such registration provided by Section
      4(2) of the Act, and applicable state securities law qualification exemptions.
      Payee represents that it (i) is an “Accredited Investor” as that term is defined
      in Rule 501 (a) of Regulation D promulgated under the Act, and (ii) is acquiring
      this Note and will acquire any Underlying Shares for its own account, for
      investment purposes only and not with a view to resale or other distribution
      thereof, nor with the intention of selling, transferring or otherwise disposing
      of all or any part of these securities for any particular event or circumstance,
      except selling, transferring or disposing of them only upon full compliance
      with
      all applicable provisions of the Act, the Securities Exchange Act of 1934,
      the
      Rules and Regulations promulgated by the Commission thereunder, and any
      applicable state securities laws. In addition, Payee understands and
      acknowledges that any routine sales of these securities made in reliance upon
      Rule 144 promulgated by the Commission under the Act can be effected only in
      the
      amounts set forth in and pursuant to the other terms and conditions, including
      applicable holding periods, of that Rule. Payee further understands and agrees
      that no transfer of this Note shall be valid unless made in compliance with
      the
      restrictions set forth on the front of this Note, effected on Maker's books
      by
      the registered holder hereof, in person or by an attorney duly authorized in
      writing, and similarly noted hereon as provided in Paragraph
      11(h)
      below.

    

    10. Limitation
      of Interest Payments.

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    $250,000
      Convertible Unsecured Note 

    of
      Conversion
      Services International, Inc. 

    payable
      to TAG
      Virgin Islands, Inc.

    as
      agent
      dated April 27, 2007

     

    Nothing
      contained in this Note or in any other agreement between Maker and Payee
      requires Maker to pay or Payee to accept interest in an amount that would
      subject Payee to any penalty or forfeiture under applicable law. In no event
      shall the total of all charges payable hereunder, whether of interest or of
      such
      other charges, which may or might be characterized as interest, exceed the
      maximum rate permitted to be charged under the laws of the States of New Jersey,
      New York, Delaware, North Carolina, the United States Virgin Islands or any
      other state or domestic or other jurisdiction in which either Maker or Payee
      may
      be located or may conduct business. Should Payee receive any payment that is
      or
      would be in excess of that permitted to be charged under such laws, such payment
      shall have been and shall be deemed to have been made in error and shall
      automatically be applied to reduce the Principal outstanding on this
      Note.

    

    11. Miscellaneous.

    

    (a) Effect
      of
      Forbearance. No forbearance, indulgence, delay or failure to exercise any right
      or remedy by Payee with respect to this Note shall operate as a waiver or as
      an
      acquiescence in any default.

    

    (b) Effect
      of
      Single or Partial Exercise of Right. No single or partial exercise of any right
      or remedy by Payee shall preclude any other or further exercise thereof or
      any
      exercise of any other right or remedy by Payee.

    

    (c) Governing
      Law; Waiver of Right to Jury Trial; Venue. This Note shall be construed and
      enforced in accordance with, and the rights of the parties shall be governed
      by,
      the internal laws of the jurisdiction to be determined by Payee applicable
      to
      contracts made and to be performed entirely within such jurisdiction. Maker
      hereby waives all right to trial by jury in any action, suit or proceeding
      brought to enforce or defend any rights or remedies under this Note, and agrees
      that any lawsuit brought to enforce or interpret the provisions of this Note
      shall be instituted in state or federal courts, as appropriate, in the
      jurisdiction to be determined by Payee, and Maker further agrees to submit
      to
      the personal jurisdiction of such court and waives
      any objection which it may have, based on improper venue, forum non conveniens
      or sufficiency of contact with the forum state, to the conduct of any proceeding
      in any such court and waives personal service of any and all process upon it,
      and consents that all such service of process be made by mail or messenger
      directed to it at the address set forth in Paragraph
      11(g)
      below
      and that service so made shall be deemed to be completed upon the earlier of
      actual receipt or three (3) days after the same shall have been posted to its
      address. Nothing contained in this Paragraph
      11(c)
      affects
      the right of Payee to serve legal process in any other manner permitted by
      law
      or affects the right of Payee to bring any action or proceeding against
Maker
      or
      its
      property in the courts of any other jurisdiction. 

    

    (d) Headings.
      The headings and captions of the various sections herein are for convenience
      of
      reference only and shall in no way modify any of the terms or provisions of
      this
      Note.

    

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    $250,000
      Convertible Unsecured Note 

    of
      Conversion
      Services International, Inc. 

    payable
      to TAG
      Virgin Islands, Inc.

    as
      agent
      dated April 27, 2007

     

    (e) Loss,
      Theft, Destruction or Mutilation of Note. Upon receipt by Maker of evidence
      reasonably satisfactory to it of loss, theft, destruction or mutilation of
      this
      Note, Maker shall make and deliver or caused to be made and delivered to Payee
      a
      new Note of like tenor in lieu of this Note. 

    

    (f) Modification
      of Note or Waiver of Terms Thereof Relating to Payee. No modification or waiver
      of any of the provisions of this Note shall be effective unless in writing
      and
      signed by Payee and then only to the extent set forth in such writing, or shall
      any such modification or waiver be applicable except in the specific instance
      for which it is given. This Note may not be discharged orally but only in
      writing duly executed by Payee.

    

    (g) Notice.
      All offers, acceptances, notices, requests, demands and other communications
      under this Note shall be in writing and, except as otherwise provided herein,
      shall be deemed to have been given only when delivered in person, via nationally
      recognized overnight courier service, via facsimile transmission if receipt
      thereof is confirmed by the recipient, or, if mailed, when mailed by certified
      or registered mail prepaid, to the parties at their respective addresses first
      set forth above, or at such other address as may be given in writing in future
      by either party to the other. 

    

    (h) Transfer.
      This Note shall be transferable only on the books of Maker upon delivery thereof
      duly endorsed by Payee or by its duly authorized attorney or representative,
      or
      accompanied by proper evidence of succession, assignment, or authority to
      transfer. In all cases of transfer by an attorney, executor, administrator,
      guardian, or other legal representative, duly authenticated evidence of his
      authority shall be produced. Upon any registration of transfer, Maker shall
      deliver a new Note or Notes to the person entitled thereto. Notwithstanding
      the
      foregoing, Maker shall have no obligation to cause Notes to be transferred
      on
      its books to any person if, in the opinion of counsel to Maker, such transfer
      does not comply with the provisions of the Act and the rules and regulations
      thereunder.

     

    (i) Successors
      and Assigns. This Note shall be binding upon Maker, its successors, assigns
      and
      transferees, and shall inure to the benefit of and be enforceable by Payee
      and
      its successors and assigns.

     

    (j) Severability.
      If one or more of the provisions or portions of this Note shall be deemed by
      any
      court or quasi-judicial authority to be invalid, illegal or unenforceable in
      any
      respect, the invalidity, illegality or unenforceability of the remaining
      provisions, or portions of provisions contained herein shall not in any way
      be
      affected or impaired thereby.

    

    (k) Gender.
      The use herein of the masculine pronouns or similar terms shall be deemed to
      include the feminine and neuter genders as well and the use of the singular
      pronouns shall be deemed to include the plural as well.

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

     

    $250,000
      Convertible Unsecured Note 

    of
      Conversion
      Services International, Inc. 

    payable
      to TAG
      Virgin Islands, Inc.

    as
      agent
      dated April 27, 2007

    IN
      WITNESS WHEREOF, Maker has caused this Note to be executed on its behalf by
      an
      officer thereunto duly authorized as of the date set forth above.

    
      	 	 	 
	 	CONVERSION
              SERVICES INTERNATIONAL, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Scott
              Newman
	 	
              

              Name: Scott
                Newman

              Title: President
                and Chief Executive Officer

            
	 	
            

    
      
         

      

      
        -14-

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