Document:

NOTE MODIFICATION
AGREEMENT

      

      THIS NOTE MODIFICATION
AGREEMENT (this “Agreement”) is entered into this 26th day of June, 2009
by and between US Dataworks,
Inc., a Nevada corporation (the “Company”) and John L. Nicholson, M.D., a
Director of the Company (the “Holder”).  All capitalized terms not
specifically defined herein shall have those meanings set forth in that certain
US Dataworks, Inc. Refinancing Secured Note dated August 13, 2008 executed by
the Company and payable to the order of the Holder in the original principal
amount of Two Million Nine Hundred Ninety Five Thousand Dollars ($2,995,000), as
amended by that certain Note Modification Agreement dated February 19, 2009 and
that certain Note Modification Agreement dated May 20, 2009 (as modified,
renewed and extended to date, the “Note”).

      

      W I T N E S S E T H:

      

      WHEREAS,
the Company and the Holder wish to revise certain provisions of the
Note;

      

      NOW,
THEREFORE, for and in consideration of the premises, the mutual covenants and
agreements contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the
Holder hereby agree as follows:

      

      1.           The
following modifications to the Note are made and agreed to effective as of June
26, 2009:

      

      
        	
                 
      

              	
                A.

              	
                Section
      1 of the Note is hereby amended by adding the following sentence to the
      beginning of the Section:

              

      

      

      “Within
ten (10) days after the end of each calendar quarter beginning with June 30,
2009, the Company (A) shall make mandatory principal payments to the Holder in
an amount equal to (i) $89,850.00, or three percent (3%) of the original
principal amount of this Note, plus (ii) 80.9% of one-fourth of the Company’s
cash balance in excess of $611,105 as of the end of such calendar quarter and
(B) may, in the sole and absolute discretion of the Board of Directors of the
Company, make an additional principal payment of up to 80.9% of one-fourth of
the Company’s cash balance in excess of $611,105 as of the end of such calendar
quarter; provided, however, that if the mandatory principal payment referred to
in clause (i) of clause (A) above (together with the other like mandatory
quarterly principal payment due to the other holder of the Notes) would reduce
the Company’s cash balance as of the last day of such calendar quarter below
$500,000, then the amount of the mandatory principal payment referred to in such
clause shall be reduced to 80.9% of the amount, if any, by which the Company’s
cash balance as of the last day of such quarter exceeds $500,000 (with any such
shortfall in such scheduled principal payment not rolling into the
next scheduled principal payment).”

      

      
        	
                 
      

              	
                B.

              	
                The
      reference to “December 31, 2009” in Section 1 of the Note is hereby
      replaced with “July 1, 2010.”

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2.           In
consideration of the Holder’s agreements to the modifications set forth in
Section 1 of this Agreement, the Company shall pay an amendment fee to the
Holder in the amount of $40,450.00, such amount to be payable on July 1,
2009.  In addition, as additional consideration for the Holder’s
agreements to the modifications set forth in Section 1 of this Agreement, the
Company will, effective as of the date hereof, issue to the Holder warrants to
acquire 1,500,000 shares of the Company’s common stock at an exercise price of
$0.43 per share, with such warrants to be subject to the terms outlined in
Exhibit A attached hereto.

      

      3.           The
Note, as modified by this Agreement, and all of the other loan documents and
other agreements and instruments executed and delivered in connection with the
Note shall remain in full force and effect.

      

      4.           The
Company and the Holder represent and warrant to each other that, as of the date
hereof: (a) each such party has full power and authority to execute this
Agreement; (b) this Agreement constitutes the legal, valid and binding
obligation of such party, enforceable in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, or other similar laws affecting the enforcement of
creditors' rights generally; and (c) no authorization, approval, consent or
other action by, notice to, or filing with, any governmental authority or other
person is required for the execution, delivery or performance by such party of
this Agreement.

      

      5.           The
parties hereto shall from time to time execute and deliver all such other
documents, instruments and assurances with respect to the matters described
herein, and take all such other actions as may be necessary or required to carry
into force and effect the purposes and intent of this Agreement.

      

      6.           This
Agreement, when executed by the parties hereto, shall be binding upon and inure
to the benefit of the parties hereto, and their respective heirs, executors,
administrators, personal representatives, successors and assigns.

      

      7.           This
Agreement may be executed simultaneously in a number of identical counterparts,
each of which shall be an original and all of which together shall constitute
but one and the same instrument.

      

      [Signature
Page Follows]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN WITNESS WHEREOF, this Agreement has
been executed and delivered by the parties hereto on the date first set forth
above.

       

       

      
        
          	
                  THE
      COMPANY:

                
	 
      	 
      
	
                  US
      DATAWORKS, INC.

                
	 
      	 
      
	
                  By:

                	
                  
                    /s/ J. Patrick
      Millinor, Jr.

                  

                
	 
      	 
      
	
                  Name:

                	
                  
                    J.
      Patrick Millinor, Jr.

                  

                
	 
      	 
      
	
                  Title:

                	
                  
                    Director

                  

                

        

        

         

        
          	
                  THE
      HOLDER:

                
	 
      
	
                  
                    /s/ John L.
      Nicholson, M.D.

                  

                
	John L. Nicholson,
      M.D.

        

      

       

      WRITTEN CONSENT OF THE
REQUIRED HOLDERS:

      

      In
accordance with Section 8 of the Note, the undersigned Required Holders hereby
execute this written consent to the Agreement, thereby indicating their consent
to the changes and amendments to the Note contained in this
Agreement.

       

    

    
      

      
        	
                /s/ John L.
      Nicholson, M.D.

              
	John L.
      Nicholson, M.D.
	 
      
	 
      
	
                
                  /s/ Charles E.
      Ramey

                

              
	Charles E.
      Ramey

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

    

    
      
        	
                EXHIBIT
      A

              

      

      

      
        	
                TERMS
      OF WARRANTS

              

      

      

      
        	
                1.

              	
                Number
      of shares of common stock underlying the warrants will be
      1,500,000.

              

      

      

      
        	
                2.

              	
                Exercise
      price of the warrants will be $0.43 per
share.

              

      

      

      
        	
                3.

              	
                Term
      of the warrants will be five years from the date
  hereof.

              

      

      

      
        	
                4.

              	
                Warrants
      may be exercised in a “cashless exercise” at the Company’s
      option.

              

      

      

      
        	
                5.

              	
                No
      adjustments to the exercise price or the number of shares underlying the
      warrants except for the typical “corporate events” adjustments for stock
      splits, reverse splits, stock dividends, recapitalizations and the
      like.

              

      

      

      
        	
                6.

              	
                In
      the event of a fundamental transaction (such as a merger, sale of
      substantially all assets, tender offer or other business combination) in
      which the stockholders of the Company become entitled to receive
      securities, cash or other assets with respect to their common stock, the
      warrants will convert into the right to receive such securities, cash and
      other assets upon exercise of the
warrants.

              

      

      

      
        	
                7.

              	
                Warrant
      holders will not be deemed to be stockholders of the Company for any
      purpose unless and until the warrants are
  exercised.

              

      

      

      
        	
                8.

              	
                The
      warrants will not be transferable until the earlier of (i) Note being paid
      in full or (ii) an event of default occurring under the
    Note.

              

      

      

      
        	
                9.

              	
                The
      warrants and the shares of common stock underlying the warrants will be
      issued under a private offering exemption available under applicable
      federal and state securities laws.  The warrant holders will
      have no registration rights related thereto and the warrants and the
      shares of common stock underlying the warrants will be subject to resale
      and transfer restrictions as imposed by applicable state and federal
      securities laws.

              

      

      

      
        	
                10.

              	
                Governing
      law shall be Texas.

              

      

      

      
        	
                11.

              	
                Dispute
      resolution shall be by binding
arbitration.

              

      

      

      
        	
                12.

              	
                The
      warrants will be subject to the additional provisions of a written
      agreement governing the warrants to be negotiated in good faith between
      the Company and the Holder promptly following execution and delivery of
      this Agreement.NOTE MODIFICATION
AGREEMENT

      

      THIS NOTE MODIFICATION
AGREEMENT (this “Agreement”) is entered into this 26th day of June, 2009
by and between US Dataworks,
Inc., a Nevada corporation (the “Company”), and Charles E. Ramey, an
individual residing in the State of Texas and the Chairman and Chief Executive
Officer of the Company (the “Holder”).  All capitalized terms not
specifically defined herein shall have those meanings set forth in that certain
8.75% Promissory Note dated September 25, 2007 executed by the Company and
payable to the order of the Holder in the original principal amount of Five
Hundred Thousand Dollars ($500,000.00), as amended by that certain Note
Modification Agreement dated May 20, 2009 (as modified, renewed and extended to
date, the “Note”).

      

      W I T N E S S E T H:

      

      WHEREAS,
the Company and the Holder wish to revise certain provisions of the Note;
and

      

      WHEREAS,
concurrent with the execution and delivery of this Agreement, the Company is
entering into Note Modification Agreements (the “Refinance Note Modification
Agreements”) with the holders of those certain US Dataworks, Inc. Refinancing
Secured Notes dated August 13, 2008 executed by the Company and payable to the
order of the holders thereof in the aggregate original principal amount of Three
Million Seven Hundred Three Thousand Five Hundred Dollars ($3,703,500.00), as
amended by those certain Note Modification Agreements dated February 19, 2009
and those certain Note Modification Agreements dated May 20, 2009;

      

      NOW,
THEREFORE, for and in consideration of the premises, the mutual covenants and
agreements contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the
Holder hereby agree as follows:

      

      1.           The
following modifications to the Note are made and agreed to effective as of June
26, 2009:

       

      
        A.           The
opening paragraph of the Note shall be deleted in its entirety and replaced
withthe following:

      

       

      “FOR
VALUE RECEIVED, the undersigned, US Dataworks, Inc., a
Nevadacorporation (“UDW”), hereby promises to pay,
ON DEMAND made any time
on or after July 1,
2010, and if demand is not so made, then on July 1, 2011, to the order of
Charles E. Ramey (“Ramey”), the holder, or his
assigns, in lawful money of the United States of America, and in immediately
payable funds, the principal sum of Five Hundred Thousand Dollars ($500,000)
plus interest thereon to accrue at the rate of eight and three quarters percent
(8.75%) per annum
(“Interest”). Payment of
all amounts due hereunder shall be at the address of UDW provided
herein.  For the purposes hereof, the term “Buyer Notes” shall mean
those certain senior secured convertible notes issued by UDW pursuant to that
certain Securities Purchase Agreement, dated as of November 13, 2007, by and
among UDW and the Buyers listed on the Schedule of Buyers, hereto attached as
Exhibit A (the
“Buyer Notes”).”

       

      B.           Section
3(a) of the Note shall be deleted in its entirety and replaced with the
following:

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      

      “The
non-payment of any principal or Interest when such payment becomes due and
payable, which payment may be demanded (and thereby become due and payable) at
any time on or after July 1, 2010, and UDW’s failure to make such payment for a
period of ten (10) days thereafter;”

      

      2.           In
consideration of the Holder’s agreements to the modifications set forth in
Section 1 of this Agreement, the Company shall pay an amendment fee to the
Holder in the amount of $6.666.67, such amount to be payable on July 1,
2009.

      

      3.           The
Note, as modified by this Agreement, and all of the other loan documents and
other agreements and instruments executed and delivered between the Company and
the Holder in connection with the Note shall remain in full force and
effect.

      

      4.           The
Company and the Holder represent and warrant to each other that, as of the date
hereof: (a) each such party has full power and authority to execute this
Agreement; (b) this Agreement constitutes the legal, valid and binding
obligation of such party, enforceable in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, or other similar laws affecting the enforcement of
creditors' rights generally; and (c) no authorization, approval, consent or
other action by, notice to, or filing with, any governmental authority or other
person is required for the execution, delivery or performance by such party of
this Agreement.

      

      5.           The
parties hereto shall from time to time execute and deliver all such other
documents, instruments and assurances with respect to the matters described
herein, and take all such other actions as may be necessary or required to carry
into force and effect the purposes and intent of this Agreement.

      

      6.           This
Agreement, when executed by the parties hereto and subject to the execution and
delivery of the Refinance Note Modification Agreements, shall be binding upon
and inure to the benefit of the parties hereto, and their respective heirs,
executors, administrators, personal representatives, successors and
assigns.

      

      7.           This
Agreement may be executed simultaneously in a number of identical counterparts,
each of which shall be an original and all of which together shall constitute
but one and the same instrument.

      

      [Signature
Page Follows]

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      IN WITNESS WHEREOF, this Agreement has
been executed and delivered by the parties hereto on the date first set forth
above.

       

       

    

    
      
        	
                THE
      COMPANY:

              
	 
      	 
      
	
                US
      DATAWORKS, INC.

              
	 
      	 
      
	
                By:

              	
                /s/ J. Patrick
      Millinor, Jr.

              
	 
      	 
      
	
                Name:

              	
                

                  J. Patrick Millinor,
      Jr.

                

              
	 
      	 
      
	
                Title:

              	
                Director

              

      

      

       

      
        	
                THE
      HOLDER:

              
	 
      
	
                /s/ Charles E.
      Ramey

              
	
                Charles
      E. Ramey

              

      

       

      
        
          
          

        

        
          3

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