Document:

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                                                                    EXHIBIT 10.6

                               US DATAWORKS, INC.

              SUBORDINATED, CONVERTIBLE NOTE AND WARRANTS AGREEMENT

         THIS NOTE AND WARRANTS AGREEMENT (this "AGREEMENT"), dated July10,
2003, is entered into by and among US DATAWORKS, INC., a Nevada corporation (the
"COMPANY"), and Charles E. Ramey, an individual ("RAMEY")

         WHEREAS, from time to time beginning on December 13, 2001, Ramey has
lent the Company, through a series of demand promissory notes as scheduled at
EXHIBIT A attached hereto, an aggregate amount of One Million Three Hundred
Fifty Three Thousand Dollars ($1,353,000) (the "ORIGINAL NOTES") paying 7%
interest on the outstanding principal balance. The Original Notes are neither
subordinated to the Company's Senior Indebtedness (as defined herein) nor
convertible into equity of the Company.

         WHEREAS, the Company desires, and Ramey agrees, to exchange his
Original Notes for a new, consolidated promissory note (the "NEW NOTE"). The New
Note accrues interest at a lesser rate of interest, is subordinated to the
Company's Senior Indebtedness and may, in lieu of repayment, be converted into
equity in the Company.

         WHEREAS, as an inducement to Ramey to exchange the Original Notes for a
subordinated, convertible promissory note, the Company wishes to grant Ramey
warrants (the "WARRANTS") entitling him to purchase of One Million Three Hundred
Three Thousand Dollars ($1,353,000 ) of the common stock of the Company at the
exercise price described herein.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
as set forth herein and for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:

         1. DEFINITIONS. For purposes of this Agreement, capitalized terms not
otherwise defined in this Agreement shall have the following meanings:

         "CHANGE OF CONTROL" shall mean the sale, conveyance or other
disposition of all or substantially all of the Company's property, voting stock
or business or the Company's merger with or into or consolidation with any other
corporation, limited liability company or other entity (other than a wholly
owned subsidiary of the Company), provided that the term "Change of Control"
shall not include (a) a merger of the Company effected exclusively for the
purpose of changing the domicile of the Company, (b) an equity financing in
which the Company is the surviving corporation, (c) a transaction in which the
stockholders of the Company immediately prior to the transaction own fifty
percent (50%) or more of the voting power of the surviving corporation following
the transaction.

         "DEMAND DATE" means July____, 2004.

         "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended,
or any similar successor federal statute and the rules and regulations
thereunder, all as the same shall be in effect from time to time.

                                     Page 1
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          "LIEN" means, with respect to any asset, any mortgage, pledge,
security interest, encumbrance, lien or charge of any kind in respect of such
asset.

         "MATERIAL ADVERSE EFFECT" means any change, violation, inaccuracy,
circumstance or effect that is materially adverse to the business, properties,
assets (including intangible assets), liabilities, capitalization or financial
condition of the Company and its Subsidiaries, taken as a whole; provided,
however, that the following shall not be taken into account in determining
whether there has been a Material Adverse Effect: (i) any occurrences relating
to the economy of the United States in general and (ii) changes in trading
prices for the Company's securities or for securities in general.

         "PERSON" means an individual, a corporation, a limited liability
company, a partnership, an association, a trust or any other entity or
organization, including a government or political subdivision or any agency or
instrumentality thereof.

         "SECURITIES ACT" means the Securities Act of 1933, as amended, or any
similar successor federal statute and the rules and regulations thereunder, all
as the same shall be in effect from time to time.

         "SEC DOCUMENTS" means the Company's periodic reports filed with the
Securities and Exchange Commission (the "SEC").

         "SERIES C FINANCING" means the Company conducts a sale of Series C
Preferred Stock with aggregate gross proceeds received, or to be received, by
the Company of at least Seven Million Five Hundred Thousand Dollars
($7,500,000).

         "SUBSIDIARY" ( or plural, "SUBSIDIARIES") means a Person, whether
incorporated or unincorporated, of which (i) more than fifty percent (50%) of
the securities or other ownership interests, or (ii) securities or other
interests having by their terms ordinary voting power to elect more than fifty
percent (50%) of the board of directors or others performing similar functions
with respect to such corporation or other organization, is directly owned or
controlled by such Person or by any one or more of its Subsidiaries.

         2. SUBORDINATED, CONVERTIBLE NOTE AND WARRANTS.

         2.1 SUBORDINATED, CONVERTIBLE NOTE. The Company shall enter into a
subordinated, convertible promissory note ("NEW NOTE"), substantially in the
form attached hereto as EXHIBIT B, with Ramey for the principal amount of One
Million Three Hundred Fifty Three Thousand Dollars ($1,353,000). Ramey shall
surrender his Original Notes to the Company for cancellation and such Original
Notes shall hereinafter be void. The form of the New Note will include:

             (a) the New Note shall bear seven percent (7%) interest PER ANNUM;

             (b) the New Note will automatically convert upon either of the
following occurring prior to the Demand Date: (i) into Series C Preferred Stock
upon the closing of a Series C Financing, or (ii) into Common Stock upon a
Change of Control;

                                     Page 2
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             (c) Ramey may convert the New Note into Common Stock voluntarily at
any time;

             (d) the Company shall make no principal or interest payments to
Ramey unless: (i) Ramey demands payment of the New Note following the Demand
Date, or (ii) the Company elects (and Ramey consents) to prepay the New Note and
pay the prepayment penalty (15% of any outstanding principal balance);

             (e) at anytime following July____, 2004 (the "DEMAND DATE"), Ramey
may demand all of the outstanding principal balance and any accrued and unpaid
interest be due and payable; and

             (f) the conversion price shall be (i) for Series C Preferred Stock,
the price per share paid by third party investors at the initial closing of the
Series C Financing, or (ii) for Common Stock, the lesser of: (y) sixteen cents
($0.16) per share, or (z) the closing bid price on the trading day immediately
prior to the date of the Change of Control or the date of Holder's voluntary
exercise of the Note (as applicable).

         2.2 WARRANTS. The Company shall grant warrants ("WARRANTS"),
substantially in the form attached hereto as EXHIBIT C, to Ramey entitling the
holder to exercise such Warrants for of On Million Three Hundred Three Thousand
Dollars ($1,353,000) of the Company's Common Stock. The exercise price for the
Warrants shall be the lesser of either: (i) sixteen cents ($0.16) or (ii) the
listed American Stock Exchange closing price for the Common Stock on the trading
day immediately prior to the Closing Date.

         2.3 CLOSING. The consummation of this transaction (the "CLOSING") shall
take place at the offices of the Company, 5301 Hollister Road, Suite 250,
Houston, TX 77040, on July __, 2003, or at such other time and place as the
Company and Ramey mutually agree in writing. The date on which the Closing takes
place is referred to as the "CLOSING DATE." At the Closing, the Company shall
deliver to Ramey a duly executed New Note and a duly executed Warrants, with
each to be registered in the name of Ramey or in the name of a nominee
designated by Ramey.

         3. REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF THE COMPANY. The
Company hereby represents and warrants to, and agrees with, Ramey that, except
as otherwise disclosed in the SEC Documents, the following representations and
warranties in their entirety,:

         3.1 ORGANIZATION AND QUALIFICATION. The Company is duly incorporated
and is validly existing as a corporation in good standing under the laws of the
State of Nevada. The Company has all requisite corporate power and authority to
own, lease and operate its properties and to carry on its business as currently
conducted. The Company is qualified as a foreign corporation and is in good
standing in all states where the conduct of its business or its ownership or
leasing of property requires such qualification, except where the failure to be
so qualified would not have a Material Adverse Effect on the Company.

         3.2 AUTHORIZATION. All corporate action on the part of the Company
necessary for the authorization, execution and delivery of this Agreement, the
performance of all obligations of the Company hereunder and thereunder, and the
authorization, issuance and delivery of the New Note and Warrants has been taken
or will be taken on or prior to the Closing. This Agreement constitutes a legal,
valid and binding agreement of the Company, enforceable against the Company in
accordance with its terms, except (a) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application
affecting the enforcement of creditors' rights generally, (b) as limited by laws
relating to the availability of specific performance, injunctive relief or other
equitable remedies, and (c) to the extent the indemnification provisions
contained in this Agreement may be limited by applicable federal or state
securities laws.

                                     Page 3
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         3.3 VALID ISSUANCE. The New Note, the Warrants and the shares of Common
Stock issuable upon conversion of the New Note and exercise of the Warrants
(collectively, the "SECURITIES") have been duly authorized and, when issued,
sold and delivered to Ramey after payment therefore in accordance with the terms
hereof, will be validly issued, fully paid and nonassessable, and, assuming the
accuracy of the representations and warranties of Ramey set forth at Section 4.6
of this Agreement, will be issued in compliance with all applicable federal and
state securities laws and will be free of all Liens or other encumbrances other
than as set forth in the legends contained in Section 4.8 of this Agreement.

         3.4 NO MATERIAL ADVERSE CHANGE. Except as set forth in the Company's
SEC Documents (a) there has been no material adverse change in the business,
properties, results of operations or financial condition of the Company, whether
or not arising in the ordinary course of business, and (b) there has been no
dividend or distribution of any kind declared, paid or made by the Company on
any class of its capital stock.

         3.5 ACCESS TO INFORMATION. Prior to the Closing, the Company will
provide to Ramey and his professional representatives such information as such
persons from time to time may reasonably request with respect to the Company and
prior to the Closing shall permit Ramey and his professional representatives
reasonable access, during regular business hours and upon reasonable notice, to
the properties, books and records of the Company as Ramey from time to time may
reasonably request.

         3.6 PRIVATE OFFERING3.7 . Neither the Company nor any authorized Person
acting on its behalf has, in connection with the offer, sale, exchange or
issuance of the Securities, engaged in (i) any form of general solicitation or
general advertising (as those terms are used within the meaning of Rule 502(c)
under the Securities Act), (ii) any action involving a public offering within
the meaning of Section 4(2) of the Securities Act, or (iii) any action that
would require the registration under the Securities Act of the offering, sale,
exchange or issuance of the Securities pursuant to this Agreement or that would
violate applicable state securities or "blue sky" laws. The Company has not made
and will not prior to the Closing Date make, directly or indirectly, any offer
or sale of the Securities, or of securities of the same or similar class as the
Securities if, as a result, the offer and sale contemplated hereby would fail to
be entitled to exemption from the registration requirements of the Securities
Act. As used herein, the terms "offer" and "sale" have the meanings specified in
Section 2(3) of the Securities Act.

         4. RAMEY HEREBY REPRESENTS AND WARRANTS TO THE COMPANY THAT:

         4.1 PURCHASE ENTIRELY FOR OWN ACCOUNT. The Securities to be purchased
by Ramey will be acquired for investment for Ramey's own account, and not as a
nominee or agent, and not with a view to the resale or distribution of any part
thereof, and Ramey has no present intention of selling, granting any
participation in, or otherwise distributing the same. Ramey is not a party to
any contract, undertaking, agreement or arrangement with any person to sell,
transfer or otherwise dispose of any of the Securities purchased by him.

                                     Page 4
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         4.2 RELIANCE UPON RAMEY'S REPRESENTATIONS. Ramey understands that the
issuance and sale of the Securities will not be registered under the Securities
Act on the ground that such issuance and sale will be exempt from registration
under the Securities Act pursuant to Rule 506 of Regulation D and/or Section
4(2) thereof, and that the Company's reliance on such exemption is based on each
Ramey's representations set forth herein. Ramey realizes that the basis for the
exemption may not be present if, notwithstanding such representations, any Ramey
has in mind merely acquiring the securities for a fixed or determinable period
in the future, or for a market rise, or for sale if the market does not rise.
Such Ramey has no such present intention.

         4.3 RECEIPT OF INFORMATION. Ramey has had an opportunity to ask
questions and receive answers from the Company regarding the terms and
conditions of the issuance and sale of the Securities and the business,
properties, prospects and financial condition of the Company and to obtain
additional information (to the extent the Company possessed such information or
could acquire it without unreasonable effort or expense) necessary to verify the
accuracy of any information furnished to it or to which it had access. The
foregoing, however, does not limit or modify the representations and warranties
of the Company in Section 3 of this Agreement or the right of Ramey to rely
thereon. No person other that the Company has been authorized to give any
information or to give any representation not contained in this Agreement in
connection with the Offering and, if given or made, such information or
representation must not be relied upon as having been authorized by the Company.

         4.4 INVESTMENT EXPERIENCE. Ramey is experienced in evaluating and
investing in securities of companies and acknowledges that it is able to fend
for itself, can bear the economic risk of its investment, and has such knowledge
and experience in financial and business matters that it is capable of
evaluating the merits and risks of the investment in the Securities.

         4.5 ACCREDITED INVESTOR. Ramey is an "accredited investor" as such term
is defined in Rule 501 of Regulation D promulgated under the Securities Act.

         4.6 RESTRICTED SECURITIES. Ramey understands that the Securities may
not be sold, transferred or otherwise disposed of without registration under the
Securities Act or an exemption therefrom, and that in the absence of an
effective registration statement covering the Securities or an available
exemption from registration under the Securities Act, the Securities must be
held indefinitely. In particular, Ramey is aware that the Securities may not be
sold pursuant to Rule 144 promulgated under the Securities Act unless all of the
conditions of that Rule are met. Among the conditions for use of Rule 144 is the
availability of current information to the public about the Company.

         5. RESTRICTED TRANSFERABILITY.

         5.1 LEGENDS. Each certificate or other document evidencing the
Securities shall be endorsed with the legends set forth below, and Ramey
covenants that, except to the extent such restrictions are waived by the
Company, Ramey shall not transfer the shares represented by any such certificate
without complying with the restrictions on transfer described in the legends
endorsed on such certificate:

                                     Page 5
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             (a) The following legend under the Act:

         "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF CERTAIN STATES,
         AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR
         OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION
         STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE LAWS, (ii) TO THE
         EXTENT APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER
         THE ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION
         OF COUNSEL, IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL
         OF US DATAWORKS, INC., THAT AN EXEMPTION FROM REGISTRATION UNDER THE
         ACT AND APPLICABLE STATE LAW IS AVAILABLE."

             (b) Such other legends as may be required under state securities
laws.

         5.2 INDEMNIFICATION.

             (a) The Company agrees to indemnify and hold Ramey harmless from
and against any losses, claims, damages or liabilities to which Ramey may become
subject (under the Securities Act or otherwise) insofar as such losses, claims,
damages or liabilities (or actions or proceedings in respect thereof) arise out
of, or are based upon (i) a material breach of any term of this Agreement, the
New Note and the Warrants, or (ii) the material breach of any representation,
warranty or covenant of this Agreement, the New Note and the Warrants. The
Company will reimburse Ramey for any reasonable legal or other expenses
reasonably incurred in investigating, defending or preparing to defend any such
action, proceeding or claim; PROVIDED, HOWEVER, that the Company shall not be
liable in any such case to the extent that such loss, claim, damage or liability
arises out of, or is based upon the breach by Ramey to comply with his
representations, warranties, covenants and agreements contained in this
Agreement.

             (b) Ramey agrees to indemnify and hold the Company harmless from
and against any losses, claims, damages or liabilities to which the Company may
become subject (under the Securities Act or otherwise) insofar as such losses,
claims, damages or liabilities (or actions or proceedings in respect thereof)
arise out of, or are based upon a material breach of any representation,
warranty or covenant of this Agreement, the New Note and the Warrants. Ramey
will reimburse the Company for any reasonable legal or other expenses reasonably
incurred in investigating, defending or preparing to defend any such action,
proceeding or claim; PROVIDED, HOWEVER, that Ramey shall not be liable in any
such case to the extent that such loss, claim, damage or liability arises out
of, or is based upon the breach by the Company to comply with its
representations, warranties, covenants and agreements contained in this
Agreement.

                                     Page 6
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         6. MISCELLANEOUS.

         6.1 REASONABLE EFFORTS; OTHER ACTIONS. Subject to the terms and
conditions herein provided and applicable law, the Company and Ramey shall use
all commercially reasonable efforts promptly to take, or cause to be taken, all
other actions and do, or cause to be done, all other things necessary, proper or
appropriate under applicable laws and regulations to consummate and make
effective the transactions contemplated by this Agreement.

         6.2 INTERPRETATION. When a reference is made in this Agreement to
Exhibits, such reference shall be to an Exhibit to this Agreement unless
otherwise indicated. The words "include," "includes" and "including" when used
herein shall be deemed in each case to be followed by the words "without
limitation." In this Agreement, any reference to any event, change, condition or
effect being "material" with respect to any entity or group of entities means
any material event, change, condition or effect related to the condition
(financial or otherwise), properties, assets (including intangible assets),
liabilities, business, operations or results of operations of such entity or
group of entities. The phrase "made available" in this Agreement shall mean that
the information referred to has been made available if requested by the party to
whom such information is to be made available. The phrases "the date of this
Agreement", "the date hereof", and terms of similar import, unless the context
otherwise requires, shall be deemed to refer to July____, 2003. The headings and
subheadings contained in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Agreement. Any
reference in this Agreement to a statutory provision or rule or regulation
promulgated thereunder shall be deemed to include any similar successor
statutory provision or rule or regulation promulgated thereunder.

         6.3 SUCCESSORS AND ASSIGNS. The terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the respective successors and
assigns of the parties. Nothing in this Agreement, express or implied, is
intended to confer upon any party other than the parties hereto or their
respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement. Neither the Company nor Ramey shall assign this Agreement or
any rights hereunder or delegate any duties hereunder without the prior written
consent of the other except as otherwise provided herein.

         6.4 NOTICES. Unless otherwise provided, any notice, request, demand or
other communication required or permitted under this Agreement shall be given in
writing and shall be deemed effectively given upon personal delivery to the
party to be notified, or when sent by Facsimile (with receipt confirmed and
promptly confirmed by personal delivery, U.S. first class mail, or courier), or
overnight courier service, or upon deposit with the United States Post Office,
by registered or certified mail, postage prepaid and addressed as follows (or at
such other address as a party may designate by notice to the other):

         If to the Company:

         US Dataworks, Inc.
         5301 Hollister Road, Suite 250
         Houston, Texas  77040
         Attention:  Terry Stepanik, President
         Facsimile:        (713) 934-8192
         Telephone:        (713) 934-3854

                                     Page 7
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         with a copy to:

         Pillsbury Winthrop LLP
         2550 Hanover Street
         Palo Alto, California 94304
         Attention:  John J. Figone
         Facsimile:        (650) 233-4545
         Telephone:        (650) 233-4613

         If to Ramey:

         See the address provided by Ramey on its counter-part signature page.

         6.5 SURVIVAL. All representations and warranties contained or provided
for herein shall remain operative and in full force and effect regardless of any
investigation made by or on behalf of the party benefiting from any such
representation or warranty, and shall survive the Closing to the extent of
applicable statutes of limitations.

         6.6 AMENDMENTS AND WAIVERS. This Agreement may be amended or modified
only by a written instrument signed by the Company and Ramey hereunder. The
observance of any term of this Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively) only with the
written consent of the party against whom such waiver is sought to be enforced.
No waiver by either party of any default with respect to any provision,
condition or requirement hereof shall be deemed to be a continuing waiver in the
future thereof or a waiver of any other provision, condition or requirement
hereof; nor shall any delay or omission of either party to exercise any right
hereunder in any manner impair the exercise of any such right accruing to it
thereafter.

         6.7 SEVERABILITY. If one or more provisions of this Agreement are held
to be unenforceable, invalid or void by a court of competent jurisdiction, such
provision shall be excluded from this Agreement and the balance of this
Agreement shall be interpreted as if such provision were so excluded and shall
be enforceable in accordance with its terms.

         6.8 ENTIRE AGREEMENT. This Agreement and the documents referred to
herein contain the entire understanding of the parties with respect to the
matters covered herein and supersedes all prior agreements and understandings,
written or oral, between the parties relating to the subject matter hereof.

         6.9 GOVERNING LAW. This Agreement shall be governed by and construed
under the laws of the State of Nevada (irrespective of its choice of law
principles); provided, however, that neither this Agreement nor any provision
hereof shall be construed for or against any party on the basis that such party
drafted this Agreement or any provision hereof.

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         6.10 COUNTERPARTS. This Agreement may be executed by facsimile copies
and in two or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.

         6.11 SHAREHOLDER APPROVAL. Neither the New Note may be converted,
whether automatically or voluntarily by the Holder, nor the Warrants exercised,
and therefore no Series C Preferred Stock or Common Stock may be issued in
contemplation of the New Note's conversion and no Common Stock may be issued in
contemplation of the Warrants' exercise, without first obtaining the approval of
the Company's voting shareholders to such New Note's conversion and the
Warrants' exercise in accordance with the rules of the American Stock Exchange
or any other market rules with which the Company shall be required to comply at
the time of such issuance or exercise.

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

                                        COMPANY

                                        US DATAWORKS, INC.

                                        By /S/ TERRY STEPANIK
                                           -------------------------------------

                                        Name TERRY STEPANIK

                                        Title PRESIDENT AND CEO

                                        RAMEY

                                        Charles E. Ramey

                                        /S/ CHARLES E. RAMEY
                                        ----------------------------------------

                                        Address:________________________________

                                        ________________________________________

                                        ________________________________________

                                        Telephone:______________________________

                                        Facsimile:______________________________

                                        email:__________________________________

                                     Page 9
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                                    EXHIBIT A
                                    ---------

                               US DATAWORKS, INC.
                      CHARLES E. RAMEY--7% PROMISSORY NOTES
                       FOR THE PERIOD ENDED MARCH 31, 2003

                           Date                   Amount
                    -----------------        --------------
                        12/13/2001               $50,000
                         1/9/2002                 50,000
                         3/7/2002                150,000
                         3/21/2002                50,000
                         5/2/2002                 75,000
                         5/22/2002               100,000
                         7/26/2002               150,000
                         8/9/2002                 65,000
                        12/12/2002                70,000
                        12/16/2002               250,000
                        12/31/2002               120,000
                                             --------------
                                             $ 1,130,000.00
                                             ==============

                                    Page 10
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                                    EXHIBIT B
                                    ---------

                                FORM OF NEW NOTE

<PAGE>

                                    EXHIBIT C
                                    ---------

                                 FORM OF WARRANT<PAGE>

                                                                    EXHIBIT 10.7

THE SECURITIES DESCRIBED IN THIS AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF
CERTAIN STATES, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED
OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE LAWS, (ii) TO THE EXTENT
APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER THE ACT RELATING
TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH
OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN
EXEMPTION FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE LAW IS AVAILABLE.

                            VENISON WARRANT AGREEMENT

         This Warrant Agreement (the "AGREEMENT") dated as of June 25, 2003
between US Dataworks, Inc. (formerly Sonicport, Inc.) a Nevada corporation (the
"COMPANY"), and Barry Venison ("WARRANT HOLDER").

         WHEREAS, on or around March 26, 2001, the Company issued the Warrant
Holder five hundred thousand (500,000) warrants (the "ORIGINAL WARRANTS")
entitling the Warrant Holder to purchase one share of Common Stock, $0.0001 par
value per share, of the Company (the "SHARES" or the "COMMON STOCK") at an
exercise price per share equal to one dollar ($1.00);

         WHEREAS, pursuant to a certain letter agreement dated March 25, 2002
(the "LETTER AGREEMENT"), the Company issued the Warrant Holder fifty thousand
(50,000) warrants (the "ADDITIONAL WARRANTS") entitling the Warrant Holder to
purchase one share of Common Stock at an exercise price per share equal to fifty
cents ($0.50). The Letter Agreement further provided that the exercise price of
the Original Warrants was adjusted to an exercise price of fifty cents ($0.50)
per share of Common Stock;

         WHEREAS, pursuant to a certain Convertible Promissory Note Extension
and Warrant Agreement dated May 5, 2003 (the "NOTE AND WARRANT AGREEMENT"), the
Company issued to Warrant Holder eight hundred thousand (800,000) warrants (the
"NEW WARRANTS"), each such New Warrant entitling the Warrant Holder to purchase
one share of Common Stock at an exercise price per share of twelve cents ($0.12)
per share. As provided under the Note and Warrant Agreement, the Warrant Holder
agreed to surrender all of his Original Warrants and Additional Warrants to be
cancelled by the Company.

         WHEREAS, pursuant to a certain Note and Warrant Conversion Agreement,
of even date herewith (the "CONVERSION AGREEMENT") and as an inducement to cause
the Warrant Holder to persuade Messrs. Brad Friedel, John Barnes and Darren
Ridge each to enter into such Conversion Agreement, the Company shall issue the
Warrant Holder this additional warrant (the "Venison Warrant") with terms and
conditions as set forth herein.

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereto agree as follows:

                                        1
<PAGE>

         1. ISSUANCE OF VENISON WARRANT CERTIFICATE. The Venison Warrant
certificate to be delivered pursuant to this Agreement, entitling the Warrant
Holder to acquire two hundred thousand (200,000) shares of Common Stock in
accordance with the term set forth in this Agreement (the "Venison Warrant
Certificate"), shall be executed on behalf of the Company by its Chief Executive
Officer, President or any Vice President under its corporate seal reproduced
thereon and attested by its corporate Secretary or one of its assistant
Secretaries. Unless otherwise set forth herein, all capitalized terms used
herein without definition shall have the meanings ascribed to such terms in the
Conversion Agreement.

         2. RIGHT TO EXERCISE VENISON WARRANTS. All two hundred thousand
(200,000) Venison Warrants shall be exercised as of the Closing Date. Subject to
the provisions of this Agreement, Warrant Holder shall acquire from the Company
by virtue of a cashless exercise ("NET ISSUE EXERCISE"), and the Company shall
issue to Warrant Holder, at an exercise price per Share of seven cents ($0.07),
subject to adjustment as provided herein (the "EXERCISE PRICE"), one fully paid
and nonassessable Share upon surrender to the Company of the Venison Warrant
Certificate evidencing such Venison Warrant. The Warrant Holder shall deliver to
the Company the Venison Warrant Certificate and an executed Election to Exercise
form (attached hereto) and promptly thereafter receive, without the payment of
any additional consideration, such number of fully paid and nonassessable shares
of Common Stock as computed using the following formula:

         X = Y (A-B)
             -------
                A

              where

         X  =  the number of Shares to be issued to the holder pursuant to this
               Section 2.

         Y  =  200,000 Shares.

         A  =  the closing stock price of one share of Common Stock as
               reported by the American Stock Exchange national market the
               trading day immediately prior to the Closing Date.

         B  =  seven cents ($0.07).

The Company agrees that such shares of Common Stock shall be deemed to be issued
to the Warrant Holder as the record holder of such shares as of the close of
business on the Closing Date. A stock certificate for the shares of Common Stock
shall be delivered to the Warrant Holder within ten (10) days following the
Closing Date. No adjustments shall be made to the number of shares issuable upon
exercise of the Venison Warrants ("VENISON WARRANT SHARES") for any cash
dividends paid or payable to holders of record of Common Stock prior to the date
as of which the Warrant Holder shall be deemed to be the record holder of such
Venison Warrant Shares.

         3. RESERVATION OF SHARES. The Company will at all times reserve and
keep available, free from preemptive rights, out of the aggregate of its
authorized but unissued Shares or its authorized and issued Shares held in its
treasury for the purpose of enabling it to satisfy any obligation to issue

                                       2
<PAGE>

Shares upon exercise of Venison Warrants, the full number of Shares deliverable
upon the exercise of all outstanding Venison Warrants. The Company covenants
that all Shares which may be issued upon exercise of Venison Warrants will be
validly issued, fully paid and nonassessable outstanding Shares of the Company.

         4. REGISTRATION UNDER THE SECURITIES ACT OF 1933. Warrant Holder
represents and warrants to the Company that Warrant Holder is acquiring the
Venison Warrants for investment and with no present intention of distributing or
reselling any of the Venison Warrants. The Shares and the certificate or
certificates evidencing any such Shares shall bear the following legend:

"THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF
CERTAIN STATES, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED
OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE LAWS, (ii) TO THE EXTENT
APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER THE ACT RELATING
TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH
OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN
EXEMPTION FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE LAW IS AVAILABLE.

         Certificates for Venison Warrants or Shares shall also bear such
legends as may be required from time to time by law. This Section 4
notwithstanding, the Company hereby agrees that the Warrant Holder shall have
"piggyback" registration rights entitling such Warrant Holder to include any and
all of the shares issued to Warrant Holder upon exercise of the Venison Warrants
in any future registration of any shares of the Company. The Company shall give
Warrant Holder at least ten (10) days' prior written notice for any proposed
registration of the Company's shares in order for such Warrant Holder to
determine whether any or all of the shares issued to Warrant Holder upon
conversion of the Notes or exercise of the New Warrants shall be included
therein. The Company's obligations pursuant to this Section 4 shall terminate on
the earlier to occur of: (a) the second anniversary of the date of issuance of
the Venison Warrant Shares and (b) such time when all Venison Warrant Shares
held by the Warrant Holder may be sold pursuant to Rule 144 under the Securities
Act during any three (3) month period.

         5. RULE 144. If the Company shall be subject to the reporting
requirements of Section 13 of the 1934 Act, the Company will use its best
efforts to file timely all reports required to be filed from time to time with
the Commission (including but not limited to the reports under Section 13 and
15(d) of the 1934 Act referred to in subparagraph (c)(1) of Rule 144 adopted by
the Company under the Act). If there is a public market for any Shares of the
Company at any time that the Company is not subject to the reporting
requirements of either of said Section 13 or 15(d), the Company will, upon the
request of any holder of any Shares or Venison Warrants, use its best efforts to
make publicly available the information concerning the Company referred to in
subparagraph (c)(2) of said Rule 144. The Company will furnish to each holder of
any Shares or Venison Warrants, promptly upon request, (i) a written statement
of the Company's compliance with the requirements of subparagraphs (c)(1) or
(c)(2,) as the case may be, of said Rule 144, and (ii) written information
concerning the Company sufficient to enable such holder to complete any Form 144
required to be flied with the Commission pursuant to said Rule 144.

                                       3
<PAGE>

         6. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES AND CLASS OF
CAPITAL STOCK PURCHASABLE. The Exercise Price and the number of Shares
purchasable upon the exercise of each Venison Warrant are subject to adjustment
from time to time as set forth in this Section 6.

                  (i) ADJUSTMENT FOR CHANGE IN CAPITAL STOCK. If the Company:
         pays a dividend or makes a distribution on its Common Stock, in each
         case, in Shares of its Common Stock; subdivides its outstanding Shares
         of Common Stock into a greater number of Shares; combines its
         outstanding Shares of Common Stock into a smaller number of Shares;
         makes a distribution on its Common Stock in Shares of its capital stock
         other than Common Stock; or issues by reclassification of its Shares of
         Common Stock any Shares of its capital stock; then the number and
         classes of Shares purchasable upon exercise of each Venison Warrant in
         effect immediately prior to such action shall be adjusted so that the
         holder of any Venison Warrant thereafter exercised may receive the
         number and classes of Shares of capital stock of the Company which such
         Warrant Holder would have owned immediately following such action if
         such Warrant Holder had exercised the Venison Warrant immediately prior
         to such action.

                  (ii) CONSOLIDATION, MERGER OR SALE OF THE COMPANY. If the
         Company is a party to a consolidation, merger or transfer of assets
         that reclassifies or changes its outstanding Common Stock, the
         successor corporation (or corporation controlling the successor
         corporation or the Company, as the case may be) shall by operation of
         law assume the Company obligations under this Agreement. Upon
         consummation of such transaction the Venison Warrants shall
         automatically become exercisable for the kind and amount of securities,
         cash or other assets that the holder of a Venison Warrant would have
         owned immediately after the consolidation, merger or transfer if the
         Warrant Holder had exercised the Venison Warrant immediately before the
         effective date of such transaction. As a condition to the consummation
         of such transaction, the Company shall arrange for the person or entity
         obligated to issue securities or deliver cash or other assets upon
         exercise of the Venison Warrant to, concurrently with the consummation
         of such transaction, assume the Company's obligations hereunder by
         executing an instrument so providing and further providing for
         adjustments which shall be as nearly equivalent as may be practical to
         the adjustments provided for in this Section.

         7. NOTICES TO COMPANY AND WARRANT HOLDER. Any notice or demand
authorized by this Agreement to be given or made by any registered holder of any
Venison Warrant Certificate to or on the Company shall be sufficiently given or
made if sent by registered mail, postage prepaid, addressed (until another
address is filed in writing by the Company with the Warrant Holders) to the
Company.

                                       4
<PAGE>

         Any notice pursuant to this Agreement to be given by the Company to
Warrant Holder shall be sufficiently given if sent by registered mail, postage
prepaid, addressed (until another address is filed in writing by Warrant Holder
with the Company) to Warrant Holder at the address provided on page 5 of this
Agreement, with a copy thereof to: Arnold & Porter, 1900 Avenue of the Stars,
17th Floor, Los Angeles, California 90067, ATTN: Daniel M. Grigsby, Esq.,
facsimile: (310) 552-1191, telephone: (310) 788-8206.

         8. SUPPLEMENTS AND AMENDMENTS. The Company and Warrant Holder may from
time to time supplement or amend this Agreement in order to cure any ambiguity,
to correct or supplement any provision contained herein which may be defective
or inconsistent with any provisions herein, or to make any other provisions in
regard to matters or questions arising hereunder which the Company and Warrant
Holder may deem necessary or desirable and which the Company and Warrant Holder
deem shall not adversely affect the interests of other Warrant Holders.

         9. SUCCESSORS. All the covenants and provisions of this Agreement by or
for the benefit of the Company or Warrant Holder shall bind and inure to the
benefit of their respective successors and assigns hereunder.

         10. GOVERNING LAW. This Agreement and each Venison Warrant Certificate
issued hereunder shall be deemed to be a contract made under the laws of the
State of Nevada and for all proposes shall be governed by and construed in
accordance with the laws of said State.

         11. COUNTERPARTS. This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all proposes be deemed to
be an original, and such counterparts shall together constitute one and the same
instrument.

         12. ATTORNEYS FEES. In the event of any action by the Warrant Holder
under or pursuant to this Agreement or any certificate issued pursuant hereto to
enforce the terms hereof, the Company shall pay all of the Warrant Holder's
reasonable attorneys' fees and costs in connection therewith.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed, as of the date and year first above written.

                                          US Dataworks, Inc.

/S/ BARRY VENISON                         /S/ TERRY STEPANIK
------------------------------            --------------------------------
Barry Venison                             Terry Stepanik
                                          Its:  President and COO
Address: _________________________

__________________________________

__________________________________

                                       5
<PAGE>

                                US DATAWORKS, INC

                             NEW WARRANT CERTIFICATE

NO. _____                                               200,000 VENISON WARRANTS

         This Venison Warrant Certificate certifies that Barry Venison or
registered assigns, is the registered holder of a total of two hundred thousand
(200,000) warrants (the "VENISON WARRANTS") to purchase Common Stock, par value
$.0001 per share (the "COMMON STOCK") of US Dataworks, Inc., a Nevada
corporation (the "COMPANY"). Each Venison Warrant entitles the holder to acquire
from the Company, without the payment of any additional consideration by Net
Issue Exercise, such number of fully paid and nonassessable shares of Common
Stock as computed using the formula set forth in the Venison Warrant Agreement
(the "EXERCISE PRICE") upon surrender of this Venison Warrant Certificate and
delivery of the Election to Exercise Form at an office or agency of the Company,
subject to the terms and conditions set forth herein. As used herein, "SHARE" or
"SHARES" refers to the Common Stock of the Company and, where appropriate, to
the other securities or property issuable upon exercise of a Venison Warrant as
provided for in that certain Venison Warrant Agreement, of even date herewith
(the "VENISON WARRANT AGREEMENT"). Unless otherwise set forth herein, all
capitalized terms used herein without definition shall have the meanings
ascribed to such terms in the Venison Warrant Agreement.

         The number of Shares and classes of capital stock issuable upon
exercise of the Venison Warrants are subject to adjustment upon the occurrence
of certain events set forth in the Venison Warrant Agreement. No adjustment
shall be made for any cash dividends on any Shares issuable upon exercise of
this Venison Warrant.

         All Venison Warrants shall be exercised on the Closing Date. All
Venison Warrants evidenced hereby shall thereafter be void.

         The Venison Warrants evidenced by this Venison Warrant Certificate are
part of a duly authorized issue of Venison Warrants issued pursuant to the
Venison Warrant Agreement, duly executed by the Company and Barry Venison. The
Venison Warrant Agreement is hereby incorporated by reference in and made a part
of this instrument and is hereby referred to for a description of the rights,
limitation of rights, obligations, duties and immunities thereunder of the
Company and the holders (the words "HOLDERS" or "HOLDER" meaning the registered
holders or registered holder of the Venison Warrant Certificates).

         The Company may deem and treat the person(s) registered in the
Company's register as the absolute owner(s) of this Venison Warrant Certificate
(notwithstanding any notation of ownership or other writing hereon made by
anyone), for the purpose of any exercise hereof, and of any distribution to the
holder(s) hereof, and for all purposes, and the Company shall not be affected by
any notice to the contrary.

<PAGE>

THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE SHARES OF COMMON STOCK
ISSUABLE UPON EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF CERTAIN STATES, AND
MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE
DISPOSED OF EXCEPT PURSUANT TO (I) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
ACT AND ANY APPLICABLE STATE LAWS, (II) TO THE EXTENT APPLICABLE, RULE 144 UNDER
THE ACT (OR ANY SIMILAR RULE UNDER THE ACT RELATING TO THE DISPOSITION OF
SECURITIES), OR (III) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE REASONABLY
SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER
THE ACT AND APPLICABLE STATE LAW IS AVAILABLE.

         IN WITNESS WHEREOF, the Company has caused this Venison Warrant
Certificate to be duly executed under its corporate seal.

US Dataworks, Inc.                           Attested

---------------------------------            -----------------------------------
Charles Ramey, Chief Executive Officer

                                             -----------------------------------
                                             Printed Name and Title

                                      -2-
<PAGE>

                              ELECTION TO EXERCISE

             (To be executed upon exercise of the Venison Warrants)

         The undersigned hereby irrevocably elects to exercise the right,
represented by this Venison Warrant Certificate, to acquire
__________________________________________ Shares in accordance with the terms
hereof. The undersigned requests that certificates for such Shares be registered
in the name of _________________________________________________ whose address
is ________________________________________________________________ and that
such certificates be delivered to _____________________________________________
whose address is _____________________________________________________________.

Dated: __________________                 Signature: ___________________________

                                          Printed Name: ________________________

(SIGNATURE MUST CONFORM IN ALL RESPECTS TO NAME OF HOLDER AS SPECIFIED ON A THE
FACE OF THE VENISON WARRANT CERTIFICATE)

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