Document:

CONVERSION
      SERVICES INTERNATIONAL, INC.

    10%
      CONVERTIBLE UNSECURED NOTE

    DUE
      ON AUGUST 31, 2007

    

    
      	$4,000,000	
              March
                1,
                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 Four
      Million ($4,000,000)
      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. 

    

    Payee
      is
      depositing Three Million Two
      Hundred Ninety Four Thousand, One Hundred Seventeen
      ($3,294,117)
      Dollars
      in the Attorney’s Escrow Account (the “Escrow Account”) of Barry Feiner, Esq.,
      counsel to Payee. This amount represents the Principal less the satisfaction
      of
      a note (the “2/1/07 Note”) in the principal amount of Seven Hundred Five
      Thousand Eight Hundred and Eighty Three ($705,883.00) Dollars dated February
      1,
      2007, issued by Maker to Payee. These funds will be disbursed pursuant to the
      instructions of Payee or its designee in accordance with the terms of the escrow
      agreement (the “Escrow Agreement”) among Maker, Payee, Payee’s designee and
      Barry Feiner, Esq, as Escrow Agent, (the “Escrow Agent”) dated as of the date
      hereof and will be used to repay (i) the entire cash amount owed by Maker to
      Laurus Master Fund, Ltd (“Laurus”) pursuant to that certain Overadvance Side
      Letter between Maker and Laurus, which,
      as
      of the date hereof is Two
      Million Eighty Four Thousand Two Hundred Thirty Seven ($2,084,237) Dollars,
      and
      (ii) the entire cash amount owed by Maker to Sands Brothers Venture Capital
      LLC,
      Sands Brothers Venture Capital III LLC, Sands Brothers Venture Capital IV LLC
      and all affiliates thereof (the “Sands Group”) pursuant to all agreement between
      Maker and the Sands Group (the “Sands Agreements”), which, as of the date
      hereof, is Nine Hundred Thousand ($900,000) Dollars in principal (not including
      accrued interest.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      $4,000,000
        Convertible Unsecured Note 

      of
        Conversion
        Services, International, Inc. 

      payable
        to TAG
        Virgin Islands, Inc.

      as
        agent
        dated March 1, 2007

    

     

    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. Payee
      is advancing Three Million Two Hundred Ninety Four Thousand One Hundred
      Seventeen ($3, 294,117) Dollars to Maker, the Principal less the principal
      of
      the 2/1/07 Note, by depositing these funds in the Escrow Account to be disbursed
      in accordance with the terms of the Escrow Agreement, but Maker shall repay
      to
      Payee the full Principal, Four Million ($4,000,000) 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.

    

    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 the Escrow Agent 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 Escrow Agent 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. Payee shall deliver the Note to the Escrow Agent within five
      (5)
      business days after it receives the Authorization Increase Notice. Payee shall
      also deliver to the Escrow Agent 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 Escrow Agent 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 Escrow Agent 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.

    

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

      $4,000,000
        Convertible Unsecured Note 

      of
        Conversion
        Services, International, Inc. 

      payable
        to TAG
        Virgin Islands, Inc.

      as
        agent
        dated March 1, 2007

    

     

    (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.

    

    (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

    

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

      

        $4,000,000
          Convertible Unsecured Note 

        of
          Conversion
          Services, International, Inc. 

        payable
          to TAG
          Virgin Islands, Inc.

        as
          agent
          dated March 1, 2007

      

       

    

    (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.
      

    

    (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-

        
          

        

      

      
        
        

      

    

    

      $4,000,000
        Convertible Unsecured Note 

      of
        Conversion
        Services, International, Inc. 

      payable
        to TAG
        Virgin Islands, Inc.

      as
        agent
        dated March 1, 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. 

    

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    

      $4,000,000
        Convertible Unsecured Note 

      of
        Conversion
        Services, International, Inc. 

      payable
        to TAG
        Virgin Islands, Inc.

      as
        agent
        dated March 1, 2007

    

     

    (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. 

    

    (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. 

    

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    

      $4,000,000
        Convertible Unsecured Note 

      of
        Conversion
        Services, International, Inc. 

      payable
        to TAG
        Virgin Islands, Inc.

      as
        agent
        dated March 1, 2007

    

     

    (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. 

    

    (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. 

    

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    

      $4,000,000
        Convertible Unsecured Note 

      of
        Conversion
        Services, International, Inc. 

      payable
        to TAG
        Virgin Islands, Inc.

      as
        agent
        dated March 1, 2007

    

     

    (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. 

    

    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.

    

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

      

        $4,000,000
          Convertible Unsecured Note 

        of
          Conversion
          Services, International, Inc. 

        payable
          to TAG
          Virgin Islands, Inc.

        as
          agent
          dated March 1, 2007

      

       

    

    (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.

    

    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-

        
          

        

      

      
        
        

      

    

    

      $4,000,000
        Convertible Unsecured Note 

      of
        Conversion
        Services, International, Inc. 

      payable
        to TAG
        Virgin Islands, Inc.

      as
        agent
        dated March 1, 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
      and the Escrow Agreement,
      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 and the Escrow Agreement by Maker
      shall be untrue or incorrect in any material respect as of the date when made
      or
      deemed made;

    

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

      

        $4,000,000
          Convertible Unsecured Note 

        of
          Conversion
          Services, International, Inc. 

        payable
          to TAG
          Virgin Islands, Inc.

        as
          agent
          dated March 1, 2007

      

       

    

    (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.

    

    (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.

    

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    

      $4,000,000
        Convertible Unsecured Note 

      of
        Conversion
        Services, International, Inc. 

      payable
        to TAG
        Virgin Islands, Inc.

      as
        agent
        dated March 1, 2007

    

     

    10. Limitation
      of Interest Payments.

    

    Nothing
      contained in this Note, the Escrow Agreement 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.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    

      $4,000,000
        Convertible Unsecured Note 

      of
        Conversion
        Services, International, Inc. 

      payable
        to TAG
        Virgin Islands, Inc.

      as
        agent
        dated March 1, 2007

    

     

    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.

    

    (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.

    

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    

      $4,000,000
        Convertible Unsecured Note 

      of
        Conversion
        Services, International, Inc. 

      payable
        to TAG
        Virgin Islands, Inc.

      as
        agent
        dated March 1, 2007

    

     

    (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.

    

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    $4,000,000
      Convertible Unsecured Note 

    of
      Conversion
      Services, International, Inc. 

    payable
      to TAG
      Virgin Islands, Inc.

    as
      agent
      dated March 1, 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

    
      
        
        

      

      
        -15-REGISTRATION
      RIGHTS AGREEMENT 

     

    This
      Registration Rights Agreement (this "Agreement") is made and entered into as
      of
      March 1, 2007, by and between Conversion Services International, Inc., a
      Delaware corporation (the "Company"),
      and
TAG
      Virgin Islands, Inc.(the
      “Agent”) as
      agent
      (the “Agent”) for the the "Holders," as defined below. This Agreement is made
      pursuant to the 10% Convertible Unsecured Note, dated as of the date hereof,
      by
      and between the Agent and the Company (as amended, modified or supplemented
      from
      time to time, the “Note”)
      and
      the “Warrants,” as defined below.

     

    The
      Company and the Holders hereby agree as follows: 

     

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

     

    "Commission"
      means
      the Securities and Exchange Commission.

     

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

     

    “Conversion
      Price”
means
      the price at which the Note may be converted into Common Stock as provided
      in
      the Note.

     

    “Effective
      Date”
shall
      mean the date the Commission shall declare a Registration Statement
      effective.

     

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

     

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

     

    “Exercise
      Price”
means
      the price at which the Warrants may be exercised to purchase Common Stock as
      provided in the Warrants.

     

    "Filing
      Date"
      means,
      (i) with respect to the Underlying Shares, a Registration Statement required
      to
      be filed on a date no later than 90 days following the date hereof, and (ii)
      with respect to shares of Common Stock issuable to the Holders as a result
      of
      adjustments to the Conversion Price made pursuant to the Note, the Exercise
      Price made pursuant to the Warrants or otherwise, 30 days after the occurrence
      such event or the date of the adjustment of the Exercise Price, as the case
      may
      be. 

     

    "Holder"
      or
      "Holders"
      means
      the Note holders and Warrant holders or any of their affiliates or transferees
      to the extent any of them hold Registrable Securities.

     

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

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

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

     

    "Note"
      shall
      have the meaning provided above.

     

    “Person”
means
      an individual, partnership, limited liability company, corporation, joint stock
      company, trust, estate, joint venture, association or unincorporated
      organization, or any other form of business or professional entity.

     

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

     

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

     

    "Registrable
      Securities"
      means
      the Underlining Shares. 

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

       

    

    “Underlying
      Shares”
means
      the shares of Common Stock issuable to the Holders upon conversion of the Note
      and exercise of the Warrants.

     

    "Warrants"
      means,
      collectively, each Common Stock Purchase Warrant issued by the Company to the
      Holders pursuant to the Note. 

     

    2.  Registration.

     

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

     

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

    

    (c) In
      the
      event that the Company shall fail (a “Filing Failure”) to file a Registration
      Statement on or before the Filing Date, or an Effective Date shall not have
      occurred on or before October 31, 2007 (an “Effective Registration Failure”) or
      if at any time during the Effectiveness Period the Registration Statement shall
      not be effective (an “Effectiveness Period Failure”), the Company shall issue to
      each Holder, on a pro rata basis, such number of additional Warrants as shall
      be
      exercisable for an aggregate of such number of Underlying Shares as shall equal
      2% of the number of Underlying Shares currently exercisable under the Warrants,
      as adjusted in accordance with the anti dilution provisions of the Warrants,
      for
      each 30 days, pro rated, that the Company shall fail to cure the Filing Failure,
      the Effective Registration Failure or the Effectiveness Period Failure, as
      the
      case may be. 

     

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

     

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

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

       

    

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

       

    

    5.  Indemnification.

     

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

     

    (b)  In
      the
      event of a registration of the Registrable Securities under the Securities
      Act
      pursuant to this Agreement, each Holder will indemnify and hold harmless the
      Company, and its officers, directors and each other Person, if any, who controls
      the Company within the meaning of the Securities Act, against all losses,
      claims, damages or liabilities, joint or several, to which the Company or such
      Persons may become subject under the Securities Act or otherwise, insofar as
      such losses, claims, damages or liabilities (or actions in respect thereof)
      arise out of or are based upon any untrue statement or alleged untrue statement
      of any material fact which was furnished in writing by such Holder to the
      Company expressly for use in (and such information is contained in) the
      Registration Statement under which such Registrable Securities were registered
      under the Securities Act pursuant to this Agreement, any preliminary Prospectus
      or final Prospectus contained therein, or any amendment or supplement thereof,
      or arise out of or are based upon the omission or alleged omission to state
      therein a material fact required to be stated therein or necessary to make
      the
      statements therein not misleading, and will reimburse the Company and each
      such
      Person for any reasonable legal or other expenses incurred by them in connection
      with investigating or defending any such loss, claim, damage, liability or
      action: provided,
      however,
      that
      such Holder will be liable in any such case if and only to the extent that
      any
      such loss, claim, damage or liability arises out of or is based upon an untrue
      statement or alleged untrue statement or omission or alleged omission so made
      in
      conformity with information furnished in writing to the Company by or on behalf
      of such Holder specifically for use in any such document. Notwithstanding the
      provisions of this paragraph, no Holder shall be required to indemnify any
      Person or entity in excess of the amount of the aggregate net proceeds received
      by such Holder in respect of Registrable Securities in connection with any
      such
      registration under the Securities Act.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

       

    

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

     

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

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    6.  Representations
      and Warranties.
      The
      Company represents and warrants to the Agent and each Holder that:

     

    (a)  The
      Common Stock of the Company is registered pursuant to Section 12(b) or 12(g)
      of
      the Exchange Act and the Company has filed all proxy statements, reports,
      schedules, forms, statements and other documents required to be filed by it
      under the Securities Act and the Exchange Act (the “SEC
      Documents”).
      The
      Company filed: (i) its Annual Report on Form 10-KSB for its fiscal year ended
      December 31, 2005, (ii) its Quarterly Reports on Form 10-QSB for its fiscal
      quarters ended March 31, 2006, June 30, 2006 and September 30, 2006, and (iii)
      the Form 8-K filings which it has made during the fiscal year 2005 and 2006 to
      date (collectively, the "SEC
      Reports").
      Each
      SEC Report was, at the time of its filing, in substantial compliance with the
      requirements of its respective form and none of the SEC Reports contain any
      untrue statement of a material fact or omit to state a material fact required
      to
      be stated therein or necessary to make the statements therein not misleading
      in
      light of the circumstances when made. To the best of the Company’s knowledge,
      the financial statements of the Company included in the SEC Reports comply
      as to
      form in all material respects with applicable accounting requirements and the
      published rules and regulations of the Commission or other applicable rules
      and
      regulations with respect thereto. Such financial statements have been prepared
      in accordance with generally accepted accounting principles ("GAAP")
      applied on a consistent basis during the periods involved (except (i) as may
      be
      otherwise indicated in such financial statements or the notes thereto or (ii)
      in
      the case of unaudited interim statements, to the extent they may not include
      footnotes or may be condensed) and fairly present in all material respects
      the
      financial condition, the results of operations and the cash flows of the Company
      and its subsidiaries, on a consolidated basis, as of, and for, the periods
      presented in each such SEC Report. The Company is eligible to use a Registration
      Statement on Form S-1 to register the Registrable Securities and also should
      be
      eligible to use a Registration Statement on Form S-3 after April 20, 2007 if
      it
      timely files all SEC Documents it is required to file from the date hereof
      through April 20, 2007 and retains the listing for its Common Stock on the
      American Stock Exchange (“AMEX”). The Company covenants to the Agent and each
      Holder that it will use its best efforts to effect such filings in a timely
      manner.

     

    (b)  The
      Common Stock is listed for trading on the AMEX but does not currently satisfy
      all requirements for the continuation of such listing. The Company has received
      a notice from the AMEX staff that it is recommending to the AMEX that the Common
      Stock be delisted. The Company is appealing the staff’s action but it cannot
      assure the Holders that it will be able to retain the listing.

     

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

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

       

    

    (d)  The
      Note,
the
      Warrants and the Underlying Shares that the Holders may acquire pursuant to
      the
      conversion of the Note and the exercise of the Warrants are all restricted
      securities under the Securities Act as of the date of this Agreement. The
      Company will not issue any stop transfer order or other order impeding the
      sale
      and delivery of any of the Registrable Securities at such time as such
      Registrable Securities are registered for public sale or an exemption from
      registration is available, except as required by federal or state securities
      laws.

     

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

     

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

     

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

     

    7.  Miscellaneous.

     

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

     

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

     

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

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

       

    

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

     

    (e)  Piggy-Back
      Registrations.
      If at
      any time during the Effectiveness Period there is not an effective Registration
      Statement covering all of the Registrable Securities and the Company shall
      determine to prepare and file with the Commission a registration statement
      relating to an offering for its own account or the account of others under
      the
      Securities Act of any of its equity securities, other than on Form S-4 or Form
      S-8 (each as promulgated under the Securities Act) or their then equivalents
      relating to equity securities to be issued solely in connection with any
      acquisition of any entity or business or equity securities issuable in
      connection with stock option or other employee benefit plans, then the Company
      shall send to each Holder written notice of such determination and, if within
      15
      days after receipt of such notice, any such Holder shall so request in writing,
      the Company shall include in such registration statement all or any part of
      such
      Registrable Securities such Holder requests to be registered to the extent
      the
      Company may do so without violating registration rights of others which exist
      as
      of the date of this Agreement, subject to customary underwriter cutbacks
      applicable to all holders of registration rights and subject to obtaining any
      required consent of any selling stockholder(s) to such inclusion under such
      registration statement.

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

       

    

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

     

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

     

    
      	 	
              If
                to the Company:

            	
              Conversion
                Services International, Inc. 

              100
                Eagle Rock Avenue

              East
                Hanover, New Jersey 07936

              Attention: Chief
                Financial Officer

              Facsimile: 973-581-7113

            
	 	 	 
	 	
              If
                to the Agent or a Holder:

            	
              TAG
                Virgin Islands, Inc.

              The
                Tunick Building 

              1336
                Beltjen Road

              Suite
                202,

              St.
                Thomas, VI 00802

              Attn: James
                Tagliaferri, President 

               

              With
                a copy to:

               

              Barry
                Feiner, Esq.

              170
                Harrison Avenue

              Harrison,
                New York 10528

            
	 	
               

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

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

            

    

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

       

    

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

     

    (signature
      page to follow)

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

       

    

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

     

    
      	
              CONVERSION
                SERVICES INTERNATIONAL, INC.

            	 	TAG
              VIRGIN ISLANDS, INC.
              as
                agent for the Holders 

            
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	
              /s/
                Scott Newman

            	 	
              By:

            	
              /s/
                James Tagliaferri

            
	
              Name:

            	
              Scott
                Newman

            	 	
              Name:

            	
              James
                Tagliaferri

            
	
              Title:

            	
              President

            	 	
              Title:

            	
              President

            

    

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    EXHIBIT
      A

     

    [date]

    

    
      	
              [Transfer
                Agent]

              [Address]

            	 

    

    

    
      	
               

            	
              Conversion
                Services International, Inc. Registration Statement on Form S-1
                

            

    

     

    Ladies
      and Gentlemen:

     

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

     

    A
      Registration Statement on Form S-1 under the Securities Act of 1933(the “Act”),
      with respect to the resale of the Shares was declared effective by the
      Securities and Exchange Commission on [date]. Enclosed is the Prospectus dated
      [date]. We understand that the Shares are to be offered and sold in the manner
      described in the Prospectus.

     

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

     

    
      
        	 	Very
                truly yours,
	 	 
	 	 
	 	[Company
                counsel]

      

    

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

     

    Schedule
      7(b)

    

    Scott
      Newman

    Glenn
      Peipert

    Robert
      C.
      DeLeeuw

    William
      McKnight

    Investors
      represented by Taurus Advisory Group, LLC and TAG
      Virgin Islands, Inc.

    Laurus
      Master Fund, Ltd.

    Laidlaw,
      Ltd.

    

    
      
         

      

      
        -15-

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