Document:

exv4w3

 

Exhibit 4.3

THIS WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. EXCEPT AS OTHERWISE SET
FORTH HEREIN NEITHER THIS WARRANT NOR ANY OF SUCH SHARES MAY BE SOLD, TRANSFERRED OR
ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES
UNDER SAID ACT OR, AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND SCOPE, ACCEPTABLE
TO THE COMPANY’S COUNSEL, THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS
SOLD PURSUANT TO RULE 144 OR REGULATION S UNDER SUCH ACT. THIS WARRANT IS ISSUED
SUBJECT TO CERTAIN CONDITIONS INCLUDING STOCKHOLDER APPROVAL AND VESTING

	 	 	 
	 

	 	Right to Purchase up to
Thirty-Nine and Nine-Tenths Percent
(39.9%) of the number of shares of
Common Stock, par value $.001 per
share, outstanding from time to
time, minus Six Million One Hundred
Thousand (6,100,000) shares; but in
no event to exceed Fourteen Million
Three Hundred Thousand (14,300,000)
shares issued hereunder in the
aggregate.

STOCK PURCHASE WARRANT

     THIS CERTIFIES THAT, for value received, Hyundai Syscomm Corp., a California corporation
(“Hyundai”) or its registered assigns, is entitled to purchase from US Dataworks, Inc., a Nevada
corporation (the “Company”), at any time or from time to time during the period specified in
Paragraph 2 hereof, such number of fully paid and nonassessable shares of the Company’s Common
Stock, par value $.001 per share (the “Common Stock”), as shall be equal to: (i) Thirty-Nine and
Nine-Tenths Percent (39.9%) of the number of shares of Common Stock that will be outstanding after
giving effect to the exercise or partial exercise of this Warrant, minus (ii) the sum of: (A) Six
Million One Hundred Thousand (6,100,000) shares of Common Stock plus (B) any shares of Common Stock
theretofore issued upon partial exercise of this Warrant; but in no event to exceed Fourteen
Million Three Hundred Thousand (14,300,000) shares issued in the aggregate hereunder. The exercise
price is One Cent ($0.01) per share (the “Exercise Price”). The term “Warrant Shares,” as used
herein, refers to the shares of Common Stock purchasable hereunder upon the exercise or partial
exercise of this Warrant. The Warrant Shares and the Exercise Price are subject to adjustment as
provided in Paragraph 4 hereof. The term “Warrants” means this “Warrant”. Any Capitalized Term
not defined herein shall have the meaning ascribed to it in the Stock Purchase Agreement.

     Under no condition will Warrant Shares become issuable hereunder unless and until the
Company’s secures the necessary vote from its shareholders in favor of the issuance of this
Warrant.

©2006 Hyundai Syscomm Corp., Warrant of US Dataworks, Inc.

December 28, 2006 Page 1 of 12

 

 

     This Warrant is subject to the following terms, provisions, and conditions:

     1. Manner of Exercise; Issuance of Certificates; Payment for Shares; Vesting; Right
Repurchase of Shares.

          (a) Stock Purchase Agreement. This Warrant is issued in connection with that certain
Stock Purchase Agreement between Hyundai and the Company, dated as of December 29, 2006, (the
“Stock Purchase Agreement”). Under the Stock Purchase Agreement, the Company and Hyundai (or any
Hyundai affiliate; Hyundai and any Hyundai affiliate hereinafter collectively referred to as
“HYUNDAI”) shall put forth their respective best efforts to facilitate the resale and lease by the
Company of Machines and Enhanced Machines having an aggregate resale and or lease value of at least
Twenty Five Million ($25,000,000)(such amount, the “Minimum Revenues”) from customers in UDW
Territory by March 31, 2008. The Company shall be Hyundai’s exclusive reseller of Machines and
Enhanced Machines throughout the UDW Territory. For the purpose of this Warrant, the term “Gross
Profits” is as defined in the Stock Purchase Agreement.

          (b) Exercise; Issuance; Payment of Shares. Subject to the provisions hereof, this
Warrant may be exercised by the Holder hereof, in whole or in part, by the surrender of this
Warrant, together with a completed exercise agreement in the form attached hereto (the “Exercise
Agreement”), to the Company during normal business hours on any business day at the Company’s
principal executive offices (or such other office or agency of the Company as it may designate by
notice to the Holder hereof), and upon (i) payment to the Company in cash, by certified or official
bank check or by wire transfer for the account of the Company of the Exercise Price for the Warrant
Shares specified in the Exercise Agreement or (ii) delivery to the Company of a written notice of
an election to effect a “Cashless Exercise” (as defined in Paragraph 11(c) below) for the Warrant
Shares specified in the Exercise Agreement. Certificates for the Warrant Shares so purchased,
representing the aggregate number of shares specified in the Exercise Agreement, shall be delivered
to the Holder hereof within a reasonable time, not exceeding five (5) business days, after this
Warrant shall have been so exercised. The certificates so delivered shall be in such denominations
as may be requested by the Holder hereof and shall be registered in the name of such Holder. If
this Warrant shall have been exercised only in part, then, unless this Warrant has expired, the
Company shall, at its expense, at the time of delivery of such certificates, deliver to the Holder
a new Warrant representing the number of shares with respect to which this Warrant shall not then
have been exercised.

          (c) Vesting.

               (i) With respect to the Gross Profits realized by the Company, this Warrant shall become
exercisable as to One Million Warrant Shares for each One Million Dollars ($1,000,000) in Gross
Profits allocated to HYUNDAI or portion thereof (One Dollar ($1.00) per Warrant Share) up to an
aggregate total of, not to exceed, Fourteen Million Three Hundred (14,300,000) Warrant Shares.
The aforementioned vesting rate of One Dollar ($1.00) per Warrant Share is hereinafter referred to
as the “Vesting Rate.”

               (ii) This Warrant shall not become exercisable for additional Warrant Shares if such issuance,
when added to the sum of: (i) the Six Million One Hundred Thousand (6,100,000)
Escrow Shares, plus (ii) any Warrant Shares heretofore issued upon partial exercise of this
Warrant,

©2006 Hyundai Syscomm Corp., Warrant of US Dataworks, Inc.

December 28, 2006 Page 2 of 12

 

 

would exceed Thirty-Nine and Nine-Tenths Percent (39.9%) of the total number of
outstanding shares of the Company’s Common Stock.

               (iii) In the event that additional Warrant Shares cannot be issued for the reason described in
subparagraph (ii), above, HYUNDAI may elect: (A) to rescind its Exercise Agreement for such
additional Warrant Shares that otherwise would cause it to exceed the Thirty-Nine and Nine-Tenths
Percent (39.9%) maximum limit and receive all or any portion of its allocation of the corresponding
Gross Profits in cash; or (B) to receive a credit (“Future Issuance Credit”) for the future
issuance of such Warrant Shares at a time when the Company increases its total outstanding Common
Stock so as such issuance (either for all or a portion thereof) would not offend the Thirty-Nine
and Nine-Tenths Percent (39.9%) maximum limit. Should HYUNDAI possess a Future Issuance Credit
and the Company contemplates making an increase in its total outstanding number of Common Stock,
but excluding any increase caused under a valid Company Stock Option Plan, the Company shall
provide HYUNDAI with written notification of such increase and advise HYUNDAI of the opportunity
for it to receive additional Warrant Shares. The Company shall not pay interest on any Future
Issuance Credit, or portion thereof, during such time any Future Issuance Credit is carried on
the Company’s books.

          (d) Minimum Revenue Adjustment. In the event the Minimum Revenues are not recognized
by the Company by March 31, 2008, HYUNDAI shall pay the Company a price adjustment (“Minimum
Revenues Adjustment”) over and above the purchase price Hyundai paid for the Escrow Shares. The
Minimum Revenues Adjustment shall equal: (i) the purchase price of the Escrow Shares ($1,500,000);
(ii) plus, the number of Warrant Shares issued, multiplied by: the Vesting Rate ($1.00) added to
the Exercise Price ($0.01)(as such terms are defined herein); (iii) the sum of subsections (i) and
(ii), divided by the sum of the number of Escrow Shares (6,100,000) and Warrants Shares issued to
Hyundai under the Warrant; (iv) the quotient calculated in subsection (iii), subtracted from the
Target Price Per Share; and, (v) the difference determined in subsection (iv), multiplied by the
number of Escrow Shares (6,100,000). If the Minimum Revenues Adjustment is zero or a negative
number, no additional payment is due. HYUNDAI shall pay the Company the Minimum Revenues Adjustment
(if any) within thirty (30) days of HYUNDAI’s receipt of the Company’s written notice requesting
such payment. HYUNDAI shall have the option to pay the Minimum Revenues Adjustment in cash or by
surrendering to UDW shares of UDW Common Stock valued at the Target Price Per Share..

     2. Period of Exercise. This Warrant is exercisable at any time or from time to time on
or after the date on which this Warrant is issued and delivered pursuant to the terms of the
Stock Purchase Agreement and before 5:00 p.m., New York, New York time on the tenth
(10th) anniversary of the date hereof (the “Exercise Period”).

     3. Certain Agreements of the Company. The Company hereby covenants and agrees as
follows:

          (a) Shares to be Fully Paid. All Warrant Shares will, upon issuance in accordance
with the terms of this Warrant, be validly issued, fully paid, and nonassessable and free from all
taxes, liens, and charges with respect to the issue thereof.

          (b) Commercially Reasonable Effort to Increase Number of Outstanding Shares. The
Company shall commit commercially reasonable efforts to increase its total outstanding

©2006 Hyundai Syscomm Corp., Warrant of US Dataworks, Inc.

December 28, 2006 Page 3 of 12

 

 

number of
shares of Common Stock so as to afford HYUNDAI the opportunity to convert any Future Issuance
Credit carried on the Company’s books.

          (c) Listing. The Company shall promptly secure the listing of the shares of Common
Stock issuable upon exercise of the Warrant upon each national securities exchange or automated
quotation system, if any, upon which shares of Common Stock are then listed (subject to official
notice of issuance upon exercise of this Warrant) and shall maintain, so long as any other shares
of Common Stock shall be so listed, such listing of all shares of Common Stock from time to time
issuable upon the exercise of this Warrant; and the Company shall so list on each national
securities exchange or automated quotation system, as the case may be, and shall maintain such
listing of, any other shares of capital stock of the Company issuable upon the exercise of this
Warrant if and so long as any shares of the same class shall be listed on such national securities
exchange or automated quotation system.

          (d) Certain Actions Prohibited. The Company will not, by amendment of its charter or
through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale
of securities, or any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms to be observed or performed by it hereunder, but will at all times in good
faith assist in the carrying out of all the provisions of this Warrant and in the taking of all
such action as may reasonably be requested by the Holder of this Warrant in order to protect the
exercise privilege of the Holder of this Warrant against dilution or other impairment, consistent
with the tenor and purpose of this Warrant. Without limiting the generality of the foregoing, the
Company (i) will not increase the par value of any shares of Common Stock receivable upon the
exercise of this Warrant above the Exercise Price then in effect, and (ii) will take all such
actions as may be necessary or appropriate in order that the Company may validly and legally issue
fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant.

          (e) Successors and Assigns. This Warrant will be binding upon any entity succeeding
to the Company by merger, consolidation, or acquisition of all or substantially all the Company’s
assets.

     4. Antidilution Provisions. During the Exercise Period, the Exercise Price and the number
of Warrant Shares shall be subject to adjustment from time to time as provided in this Paragraph 4.

          (a) Subdivision or Combination of Common Stock. If the Company at any time subdivides
(by any stock split, stock dividend, recapitalization, reorganization, reclassification or
otherwise) the shares of Common Stock acquirable hereunder into a greater number of shares, then,
after the date of record for effecting such subdivision, the Exercise Price and Vesting Rate in
effect immediately prior to such subdivision will be proportionately reduced. If the Company at
any time combines (by reverse stock split, recapitalization, reorganization, reclassification or
otherwise) the shares of Common Stock acquirable hereunder into a smaller number of shares, then,
after the date of record for effecting such combination, the Exercise Price and Vesting Rate in
effect immediately prior to such combination will be proportionately increased.

          (b) Adjustment in Number of Shares. Upon each adjustment of the Exercise Price and
Vesting Rate pursuant to the provisions of this Paragraph 4, the number of shares of

©2006 Hyundai Syscomm Corp., Warrant of US Dataworks, Inc.

December 28, 2006 Page 4 of 12

 

 

Common Stock
issuable upon exercise of this Warrant shall be adjusted by multiplying a number equal to the
Exercise Price and Vesting Rate in effect immediately prior to such adjustment by the number of
shares of Common Stock issuable upon exercise of this Warrant immediately prior to such adjustment
and dividing the product so obtained by the adjusted Exercise Price and Vesting Rate.

          (c) Consolidation, Merger or Sale. In case of any consolidation of the Company with,
or merger of the Company into, any other corporation, or in case of any sale or conveyance of all
or substantially all of the assets of the Company other than in connection with a plan of complete
liquidation of the Company, then as a condition of such consolidation, merger or sale or
conveyance, adequate provision will be made whereby the Holder of this Warrant will have the right
to acquire and receive upon exercise of this Warrant in lieu of the shares of Common Stock
immediately theretofore acquirable upon the exercise of this Warrant, such shares of stock,
securities or assets as may be issued or payable with respect to or in exchange for the number of
shares of Common Stock immediately theretofore acquirable and receivable upon exercise of this
Warrant had such consolidation, merger or sale or conveyance not taken place. In any such case,
the Company will make appropriate measures to insure that the provisions of this Paragraph 4 hereof
will thereafter be applicable as nearly as may be in relation to any shares of stock or securities
thereafter deliverable upon the exercise of this Warrant. The Company will not effect any
consolidation, merger or sale or conveyance unless prior to the consummation thereof, the successor
corporation (if other than the Company) assumes by written instrument the obligations under this
Paragraph 4 and the obligations to deliver to the Holder of this Warrant such shares of stock,
securities or assets as, in accordance with the foregoing provisions, the Holder may be entitled to
acquire.

          (d) Distribution of Assets. In case the Company shall declare or make any
distribution of its assets (including cash) to holders of Common Stock as a partial liquidating
dividend, by way of return of capital or otherwise, then, after the date of record for determining
stockholders entitled to such distribution, but prior to the date of distribution, the Holder of
this Warrant shall be entitled upon exercise of this Warrant for the purchase of any or all of the
shares of Common Stock subject hereto, to receive the amount of such assets which would have been
payable to the Holder had such Holder been the holder of such shares of Common Stock on the record
date for the determination of stockholders entitled to such distribution.

          (e) Notice of Adjustment. Upon the occurrence of any event which requires any
adjustment of the Exercise Price and the Vesting Rate, then, and in each such case, the Company
shall give notice thereof to the Holder of this Warrant, which notice shall state the Exercise
Price and Vesting Rate resulting from such adjustment and the increase or decrease in the number of
Warrant Shares purchasable at such price upon exercise, setting forth in reasonable detail the
method of calculation and the facts upon which such calculation is based. Such calculation shall
be certified by an officer of the Company.

          (f) No Fractional Shares. No fractional shares of Common Stock are to be issued upon
the exercise of this Warrant. Any fraction of a share that would otherwise be issuable shall be
rounded down to the nearest full share.

          (g) Other Notices. In case at any time:

©2006 Hyundai Syscomm Corp., Warrant of US Dataworks, Inc.

December 28, 2006 Page 5 of 12

 

 

               (i) the Company shall declare any dividend upon the Common Stock payable in shares of stock of
any class or make any other distribution (including dividends or distributions payable in cash out
of retained earnings) to the holders of the Common Stock;

               (ii) the Company shall offer for subscription pro rata to the holders of the Common Stock any
additional shares of stock of any class or other rights;

               (iii) there shall be any capital reorganization of the Company, or reclassification of the
Common Stock, or consolidation or merger of the Company with or into, or sale of all or
substantially all its assets to, another corporation or entity; or

               (iv) there shall be a voluntary or involuntary dissolution, liquidation or winding up of the
Company;

then, in each such case, the Company shall give to the Holder of this Warrant (a) notice of the
date on which the books of the Company shall close or a record shall be taken for determining the
holders of Common Stock entitled to receive any such dividend, distribution, or subscription rights
or for determining the holders of Common Stock entitled to vote in respect of any such
reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or
winding-up and (b) in the case of any such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation or winding-up, notice of the date (or, if not then known, a
reasonable approximation thereof by the Company) when the same shall take place. Such notice shall
also specify the date on which the holders of Common Stock shall be entitled to receive such
dividend, distribution, or subscription rights or to exchange their Common Stock for stock or other
securities or property deliverable upon such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation, or winding-up, as the case may be. The Company shall use
commercially reasonable efforts to give such notice as soon as practicable as to the record date or
the date on which the Company’s books are closed in respect thereto. Failure to give any such
notice or any defect therein shall not affect the validity of the proceedings referred to in
clauses (i), (ii), (iii) and (iv) above.

          (h) Certain Events. If any event occurs of the type contemplated by the adjustment
provisions of this Paragraph 4 but not expressly provided for by such provisions, the Company will
give notice of such event as provided in Paragraph 4(g) hereof, and the Company’s Board of
Directors will make an appropriate adjustment in the Exercise Price, Vesting Rate and the number of
shares of Common Stock acquirable upon exercise of this Warrant so that the rights of the Holder
shall be neither enhanced nor diminished by such event.

     5. Issue Tax. The issuance of certificates for Warrant Shares upon the exercise of this
Warrant shall be made without charge to the Holder of this Warrant or such shares for any
issuance tax or other costs in respect thereof, provided that the Company shall not be
required to pay any tax which may be payable in respect of any transfer involved in the
issuance and delivery of any certificate in a name other than the Holder of this Warrant.

     6. No Rights or Liabilities as a Stockholder. Except as set forth in the penultimate sentence of Paragraph 4(g) of this Warrant, this Warrant
shall not entitle the Holder hereof to any voting rights or other rights as a stockholder of the
Company. No provision of this Warrant, in the absence of affirmative action by the Holder hereof
to purchase Warrant Shares, and no mere

©2006 Hyundai Syscomm Corp., Warrant of US Dataworks, Inc.

December 28, 2006 Page 6 of 12

 

 

enumeration herein of the rights or privileges of the
Holder hereof, shall give rise to any liability of such Holder for the Exercise Price or as a
stockholder of the Company, whether such liability is asserted by the Company or by creditors of
the Company.

     7. Transfer, Exchange, and Replacement of Warrant.

          (a) Restriction on Transfer. This Warrant and the rights granted to the Holder hereof
are transferable, in whole or in part, upon surrender of this Warrant, together with a properly
executed assignment in the form attached hereto, at the office or agency of the Company referred to
in Paragraph 7(e) below, provided, however, that any transfer or assignment shall be subject to the
conditions set forth in Paragraph 7(f) hereof and, to the extent applicable, that certain Voting
Agreement and Proxy Coupled with an Interest, dated as of December ___, 2006 (the “Proxy”). Until
due presentment for registration of transfer on the books of the Company, the Company may treat the
registered Holder hereof as the owner and Holder hereof for all purposes, and the Company shall not
be affected by any notice to the contrary. Notwithstanding anything to the contrary contained
herein, the registration rights described in Paragraph 8 are assignable only in accordance with the
provisions of that certain Registration Rights Agreement, dated as of December ___, 2006, by and
between the Company and HYUNDAI (the “Registration Rights Agreement”).

          (b) Warrant Exchangeable for Different Denominations. This Warrant is exchangeable,
upon the surrender hereof by the Holder hereof at the office or agency of the Company referred to
in Paragraph 7(e) below, for new Warrants of like tenor representing in the aggregate the right to
purchase the number of shares of Common Stock which may be purchased hereunder, each of such new
Warrants to represent the right to purchase such number of shares as shall be designated by the
Holder hereof at the time of such surrender.

          (c) Replacement of Warrant. Upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction, or mutilation of this Warrant and, in the case of any such
mutilation, upon surrender and cancellation of this Warrant, the Company, at its expense, will
execute and deliver, in lieu thereof, a new Warrant of like tenor.

          (d) Cancellation; Payment of Expenses. Upon the surrender of this Warrant in
connection with any transfer, exchange, or replacement as provided in this Paragraph 7, this
Warrant shall be promptly canceled by the Company. The Company shall pay all taxes (other than
securities transfer taxes) and all other expenses (other than legal expenses, if any, incurred by
the Holder or transferees) and charges payable in connection with the preparation, execution, and
delivery of Warrants pursuant to this Paragraph 7.

          (e) Register. The Company shall maintain, at its principal executive offices (or such
other office or agency of the Company as it may designate by notice to the Holder hereof), a
register (the “Register”) for this Warrant, in which the Company shall record the name and address
of the person in whose name this Warrant has been issued, as well as the name and address of each
transferee and each prior owner of this Warrant, and the corresponding number of Warrant Shares
issued thereto. The Register shall track HYUNDAI’s Future Issuance Credit(s), if any, determine
the number of Warrants Shares (if any) that may be issued hereunder without offending the
Thirty-Nine and Nine-Tenths Percent (39.9%) maximum limit and determine the appropriate adjustment (if
any) to the Exercise Price and Vesting Rate, in accordance with Paragraph 4 herein. Unless
otherwise agreed

©2006 Hyundai Syscomm Corp., Warrant of US Dataworks, Inc.

December 28, 2006 Page 7 of 12

 

 

by both the Holder and the Company, the determinations of the Register shall be
dispositive in case of any disputes between the parties.

          (f) Exercise or Transfer Restriction. If, at the time of the surrender of this
Warrant in connection with any exercise, transfer, or exchange of this Warrant, this Warrant (or,
in the case of any exercise, the Warrant Shares issuable hereunder), shall not be registered under
the Securities Act of 1933, as amended (the “Securities Act”) and under applicable state securities
or blue sky laws, the Company may require, as a condition of allowing such exercise, transfer, or
exchange, (i) that the Holder or transferee of this Warrant, as the case may be, furnish to the
Company a written opinion of counsel, which opinion and counsel are acceptable to the Company, to
the effect that such exercise, transfer, or exchange may be made without registration under said
Act and under applicable state securities or blue sky laws and (ii) that the transferee be an
“accredited investor” as defined in Rule 501(a) promulgated under the Securities Act; provided that
no such opinion, letter or status as an “accredited investor” shall be required in connection with
a transfer pursuant to Rule 144 under the Securities Act; and provided, further, that Hirshfield
Law shall be acceptable to the Company for the rendering of any such opinion. The first Holder of
this Warrant, by taking and holding the same, represents to the Company that such Holder is
acquiring this Warrant for investment and not with a view to the distribution thereof.

     8. Registration Rights. The initial Holder of this Warrant (and certain assignees
thereof) is entitled to the benefit of such registration rights in respect of the Warrant
Shares as are set forth in Section 6.2 of the Registration Rights Agreement.

     9. Notices. All notices, requests, and other communications required or permitted to be
given or delivered hereunder to the Holder of this Warrant shall be in writing, and shall be
personally delivered, or shall be sent by certified or registered mail or by recognized
overnight mail courier, postage prepaid and addressed, to such Holder at the address shown for
such Holder on the books of the Company, or at such other address as shall have been furnished
to the Company by notice from such Holder. All notices, requests, and other communications
required or permitted to be given or delivered hereunder to the Company shall be in writing,
and shall be personally delivered, or shall be sent by certified or registered mail or by
recognized overnight mail courier, postage prepaid and addressed, to the office of the Company
at US Dataworks, Inc., 5301 Hollister Road, Second Floor, Houston, Texas 77040; attn: John J.
Figone, Esq., or at such other address as shall have been furnished to the Holder of this
Warrant by notice from the Company. All notices, requests, and other communications required
or permitted to be given or delivered hereunder to the Holder of this Warrant shall be in
writing, and shall be personally delivered, or shall be sent by certified or registered mail
or by recognized overnight mail courier, postage prepaid and addressed, to: Hyundai Syscomm
Corp., 1065 East Hillsdale Boulevard, Suite 247, Foster City, California 94404; Attention:
Samuel Lee, Chairman of the Board, tel.: (510) 790-4500; fax: (415) 358-4551; email:
jack@hyundaisyscom.com, or at such other address as shall have been furnished to the Company
by notice from the Holder of this Warrant. Any such notice, request, or other communication
may be sent by facsimile, but shall in such case be subsequently
confirmed by a writing personally delivered or sent by certified or registered mail or by
recognized overnight mail courier as provided above. All notices, requests, and other
communications shall be deemed to have been given either at the time of the receipt thereof by the
person entitled to receive such notice at the address of such person for purposes of this Paragraph
9, or, if mailed by registered or certified mail or with a recognized overnight mail courier upon
deposit with

©2006 Hyundai Syscomm Corp., Warrant of US Dataworks, Inc.

December 28, 2006 Page 8 of 12

 

 

the United States Post Office or such overnight mail courier, if postage is prepaid
and the mailing is properly addressed, as the case may be.

     10. Governing Law. THIS WARRANT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEVADA APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS.
THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL
DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS
WARRANT. BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS
UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF
PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN SHALL AFFECT EITHER
PARTY’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. BOTH PARTIES AGREE THAT
A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE
PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER THIS WARRANT SHALL BE RESPONSIBLE
FOR ALL FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY IN
CONNECTION WITH SUCH DISPUTE.

     11. Miscellaneous.

          (a) Amendments. This Warrant and any provision hereof may only be amended by an
instrument in writing signed by the Company and the Holder hereof.

          (b) Descriptive Headings. The descriptive headings of the several paragraphs of this
Warrant are inserted for purposes of reference only, and shall not affect the meaning or
construction of any of the provisions hereof.

          (c) Cashless Exercise. Notwithstanding anything to the contrary contained in this
Warrant, this Warrant may be exercised by presentation and surrender of this Warrant to the Company
at its principal executive offices with a written notice of the Holder’s intention to effect a
cashless exercise, including a calculation of the number of shares of Common Stock to be issued
upon such exercise in accordance with the terms hereof (a “Cashless Exercise”). In the event of a
Cashless Exercise, in lieu of paying the Exercise Price in cash, the Holder shall surrender this
Warrant for that number of shares of Common Stock determined by multiplying the number of Warrant
Shares to which it would otherwise be entitled by a fraction, the numerator of which shall be the
difference between the then current Market Price per share of the Common Stock and the Exercise
Price, and the
denominator of which shall be the then current Market Price per share of Common Stock. For
example, if the Holder is exercising 300,000 Warrants with a per Warrant exercise price of $0.01
per share through a cashless exercise when the Common Stock’s current Market Price per share is
$2.00 per share, then upon such Cashless Exercise the Holder will receive 298,500 shares of Common
Stock. Market Price means as of any date, (i) means the average of the last reported sale prices
for the shares of Common Stock on NASDAQ for the five (5) Trading Days immediately preceding such
date as

©2006 Hyundai Syscomm Corp., Warrant of US Dataworks, Inc.

December 28, 2006 Page 9 of 12

 

 

reported by Bloomberg, or (ii) if NASDAQ is not the principal trading market for the
shares of Common Stock, the average of the last reported sale prices on the principal trading
market for the Common Stock during the same period as reported by the AMEX (ii) if the AMEX is
not the principal trading market for the shares of Common Stock, the average of the last reported
sale prices on the principal trading market for the Common Stock during the same period as reported
by Bloomberg, or (iii) if market value cannot be calculated as of such date on any of the foregoing
bases, the Market Price shall be the fair market value as reasonably determined in good faith by
(a) the Board of Directors of the Company or, at the option of a majority-in-interest of the
Holders of the outstanding Warrants by (b) an independent investment bank of nationally recognized
standing in the valuation of businesses similar to the business of the Company. The manner of
determining the Market Price of the Common Stock set forth in the foregoing definition shall apply
with respect to any other security in respect of which a determination as to market value must be
made hereunder

          (d) Remedies. The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the
transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for
a breach of its obligations under this Warrant will be inadequate and agrees, in the event of a
breach or threatened breach by the Company of the provisions of this Warrant, that the Holder shall
be entitled, in addition to all other available remedies at law or in equity, and in addition to
the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing
any breach of this Warrant and to enforce specifically the terms and provisions thereof, without
the necessity of showing economic loss and without any bond or other security being required.

          IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly authorized
officer.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	US DATAWORKS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Charles E. Ramey	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Charles E. Ramey	 	 
	 

	 	 	 	Chief Executive Officer	 	 

Date: December 29, 2006

©2006 Hyundai Syscomm Corp., Warrant of US Dataworks, Inc

December 28, 2006 Page 10 of 12

 

 

FORM OF EXERCISE AGREEMENT

Dated:                               , 200_

To:                                

     The undersigned, pursuant to the provisions set forth in the within Warrant, hereby agrees to
purchase                      shares of Common Stock covered by such Warrant, and makes payment herewith in
full therefor at the price per share provided by such Warrant in cash or by certified or official
bank check in the amount of, or, if the resale of such Common Stock by the undersigned is not
currently registered pursuant to an effective registration statement under the Securities Act of
1933, as amended, by surrender of securities issued by the Company (including a portion of the
Warrant) having a market value (in the case of a portion of this Warrant, determined in accordance
with Paragraph 11(c) of the Warrant) equal to $                    . Please issue a certificate or
certificates for such shares of Common Stock in the name of:

	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	Address:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Note:
	 	 	 	The above signature should correspond
exactly with the name on the face of the
within Warrant, if applicable.

and, if said number of shares of Common Stock shall not be all the shares purchasable under the
within Warrant, a new Warrant is to be issued in the name of said undersigned covering the balance
of the shares purchasable thereunder less any fraction of a share paid in cash.

©2006 Hyundai Syscomm Corp., Warrant of US Dataworks, Inc

December 28, 2006 Page 11 of 12

 

 

FORM OF ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers all the rights of the
undersigned under the within Warrant, with respect to the number of shares of Common Stock covered
thereby set forth hereinbelow, to:

					
	 	 	 	 	 
	Name of Assignee
	 	Address
	 	No of Shares

, and hereby irrevocably constitutes and appoints                                                       as agent and
attorney-in-fact to transfer said Warrant on the books of the within-named corporation, with full
power of substitution in the premises.

Dated:                     __, 200_

	 	 	 	 	 	 	 	 	 
	In the presence of:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Title of Signing Officer or Agent (if any):	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Note:	 	The above signature should correspond
exactly with the name on the face of the
within Warrant, if applicable.

©2006 Hyundai Syscomm Corp., Warrant of US Dataworks, Inc

December 28, 2006 Page 12 of 12exv4w4

 

Exhibit 4.4

Registration Rights Agreement

Between

US Dataworks, Inc.

And

Hyundai Syscomm Corp.

December 29, 2006

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 1 of 21

 

 

     Registration Rights Agreement (this “Agreement”) is entered into as of the 29th day
of December, 2006, by and between US Dataworks, Inc., a Nevada corporation (the “Company”), and
Hyundai Syscomm Corp., a California corporation (“HYUNDAI”).

R E C I T A L S

     WHEREAS, HYUNDAI and the Company have entered into a Stock Purchase Agreement (the “Stock
Purchase Agreement”), dated as of the date hereof, pursuant to which, among other things: (i)
HYUNDAI has agreed, on the terms and conditions set forth therein, to purchase Six Million One
Hundred Thousand (6,100,000) shares (the “Purchased Shares”) of the Company Common Stock (“Common
Stock”) for an aggregate purchase price (the “Purchase Price”) of One Million Five Hundred
Thousand Dollars ($1,500,000); and (ii) the Company has issued and delivered HYUNDAI a warrant
dated the date hereof (the “Warrant”) that will enable HYUNDAI to achieve and maintain up to
Thirty-Nine And Nine-Tenths Percent (39.9%) ownership interest in the outstanding Common Stock of
the Company provided that HYUNDAI provides a sufficient level of business to the Company under the
Stock Purchase Agreement; and

     WHEREAS, HYUNDAI, the Company and Hirshfield Law, as Escrow Agent (the “Escrow Agent”), have
entered into an Escrow Agreement (the “Escrow Agreement”), dated as of the date hereof, pursuant to
which, among other things, the Company has agreed to deliver the Purchased Shares and HYUNDAI has
agreed to wire transfer the Purchase Price to the Escrow Agent as soon as practicable; and

     WHEREAS, the Purchased Shares are, and shares of Common Stock issuable upon exercise of the
Warrant (the “Warrant Shares”), when and if issued, will be “restricted securities,” as such term
is defined in Rule 144 promulgated by the Securities and Exchange Commission (the “Commission”)
under the Securities Act and bear a restrictive legend (the “Legend”); and

     WHEREAS, is order to register the resale of the Purchased Shares and any Warrant Shares that
may be issued (collectively, the “Shares”) under the Securities Act, the Company is willing to
enter into this Agreement.

     NOW, THEREFORE, in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed
as follows:

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 2 of 21

 

 

1. Definitions. The following terms used herein have the following meanings:

     “Agreement” means this Agreement, as amended, restated, supplemented, or otherwise modified
from time to time.

     “Certificates” is defined in the 1st Recital to this Agreement.

     “Commission” means the Commission, as defined in the 4th Recital to this Agreement,
or any other federal agency then administering the Securities Act or the Exchange Act.

     “Common Stock” is defined in the 1st Recital of this Agreement.

     “Company” is defined in the preamble to this Agreement.

     “Company Indemnified Party” is defined in Section 4.2.

     “Demanding Holder” is defined in Section 2.1.1.

     “Demand Registration” is defined in Section 2.1.1.

     “Escrow Agent” is defined in the 2nd Recital to this Agreement.

     “Escrow Agreement” is defined in the 2nd Recital to this Agreement.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder, all as the same shall be in effect at the
time.

     “HYUNDAI” is defined in the preamble to this Agreement.

     “Indemnified Party” is defined in Section 4.3.

     “Indemnifying Party” is defined in Section 4.3.

     “HYUNDAI Indemnified Party” is defined in Section 4.1.

     “Legend” is defined in the 4th Recital of this Agreement.

     “Maximum Number of Shares” is defined in Section 2.1.4.

     “Notices” is defined in Section 6.3.

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 3 of 21

 

 

     “Piggy-Back Registration” is defined in Section 2.2.1.

     “Purchased Shares” is defined in the 1st Recital to this Agreement.

     “Purchase Price” is defined in the 1st Recital to this Agreement.

     “Register,” registered” and “registration” mean a registration effected by preparing and
filing a registration statement or similar document in compliance with the requirements of the
Securities Act, and the applicable rules and regulations promulgated thereunder, and such
registration statement becoming effective.

     “Registrable Shares” means the Shares. As to any particular Registrable Shares, such Shares
shall cease to be Registrable Shares when: (a) a Registration Statement with respect to the sale of
such Shares shall have become effective under the Securities Act and such securities shall have
been sold, transferred or disposed of in accordance with such Registration Statement; (b) such
Shares shall have been otherwise transferred, new certificates for them not bearing the Legend
shall have been delivered by the Company and subsequent public distribution of them shall not
require registration under the Securities Act; (c) such Shares shall have ceased to be outstanding.

     “Registration Statement” means a registration statement filed by the Company with the
Commission in compliance with the Securities Act for a public offering and sale of Common Stock
(other than a registration statement on Form S-4 or Form S-8, or their successors, or any
registration statement covering only securities proposed to be issued in exchange for securities or
assets of another entity).

     “Restricted Securities” is defined in the 4th Recital of this Agreement.

     “Securities Act” means Securities Act of 1933, as amended, and the rules and regulations of
the Commission promulgated thereunder, all as the same shall be in effect at the time.

     “Shares” is defined in the 4th Recital of this Agreement.

     “Stock Purchase Agreement” is defined in the 1st Recital to this Agreement.

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 4 of 21

 

 

     “Underwriter” means a securities dealer who purchases any Registrable Shares as principal in
an underwritten offering and not as part of such dealer’s market-making activities.

     “Warrant” is defined in the 1st Recital to this Agreement.

     “Warrant Shares” is defined in the 3rd Recital to this Agreement.

2. Registration Rights.

     2.1 Demand Registration.

          2.1.1. Request for Registration. At any time after the date of this Agreement,
HYUNDAI may make a written demand for registration under the Securities Act of all or part of its
Registrable Shares (a “Demand Registration”). Any demand for a Demand Registration shall specify
the number of Registrable Shares proposed to be sold and the intended method(s) of distribution
thereof. Upon any such request, HYUNDAI shall be entitled to have its Registrable Shares included
in the Demand Registration, subject to Section 2.1.4 and the provisos set forth in Section 3.1.1.
The Company shall not be obligated to effect more than three (3) Demand Registrations under this
Section 2.1.1 in respect of Registrable Shares.

          2.1.2. Effective Registration. A registration will not count as the Demand
Registration until the Registration Statement filed with the Commission with respect to such Demand
Registration has been declared effective by the Commission and the Company has complied with all of
its obligations under this Agreement with respect thereto; provided, however, that if, within [6]
months after such Registration Statement has been declared effective and prior to the sale of all
the Shares registered on such Registration Statement, the offering of Registrable Shares pursuant
to a Demand Registration is interfered with by any stop order or injunction of the Commission or
any other governmental agency or court, the Registration Statement with respect to such Demand
Registration will be deemed not to have been declared effective, unless and until, (i) such stop
order or injunction is removed, rescinded or otherwise terminated, and (ii) HYUNDAI elects to
continue the offering.

          The Company will maintain the such Demand Registration or post-effective amendment filed under
this Section 2 hereof effective

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 5 of 21

 

 

under the Securities Act until the earliest of (i) the date that all the Registrable Shares
pursuant to such Demand Registration have been disposed of pursuant to the Demand Registration,
(ii) the date all such Registrable Shares have been otherwise transferred to persons who may trade
such shares without restriction under the Securities Act, and the Company has delivered a new
certificate or other evidence of ownership for such Securities not bearing a restrictive legend, or
(iii) the date all such Registrable Shares may be sold without any time, volume or manner
limitations pursuant to Rule 144(k) or any similar provision then in effect under the Securities
Act (the “Effectiveness Period”)

          2.1.3. Underwritten Offering. If HYUNDAI so elects and so advises the Company as part
of its written demand for a Demand Registration, the offering of such Registrable Shares pursuant
to such Demand Registration shall be in the form of an underwritten offering. In such event, the
right of HYUNDAI to include its Registrable Shares in such registration shall be conditioned upon
HYUNDAI’s participation in such underwriting and the inclusion of HYUNDAI’s Registrable Shares in
the underwriting to the extent provided herein. HYUNDAI shall enter into an underwriting agreement
in customary form with the Underwriter or Underwriters selected for such underwriting by HYUNDAI.

          2.1.4. Reduction of Offering. If the managing Underwriter or Underwriters for a Demand
Registration that is to be an underwritten offering advises the Company and HYUNDAI in writing that
the dollar amount or number of Registrable Shares which HYUNDAI desires to sell, taken together
with all other shares of Common Stock or other securities which the Company desires to sell and the
shares of Common Stock, if any, as to which registration has been requested pursuant to written
contractual piggy-back registration rights held by other stockholders of the Company who desire to
sell, exceeds the maximum dollar amount or maximum number of shares that can be sold in such
offering without adversely affecting the proposed offering price, the timing, the distribution
method, or the probability of success of such offering (such maximum dollar amount or maximum
number of shares, as applicable, the “Maximum Number of Shares”), then the Company shall include in
such registration: (i) first, the Registrable Shares as to which Demand Registration has been
requested by HYUNDAI that can be sold without exceeding the Maximum Number of Shares; (ii) second,
to the extent that the Maximum Number of Shares has not been reached under the foregoing clause
(i), the shares of Common Stock or other securities that the Company desires to sell that can be
sold without exceeding the

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 6 of 21

 

 

Maximum Number of Shares; (iii) third, to the extent that the Maximum Number of Shares has not
been reached under the foregoing clauses (i) and (ii), the shares of Common Stock for the account
of other persons that the Company is obligated to register pursuant to written contractual
arrangements with such persons and that can be sold without exceeding the Maximum Number of Shares;
and (iv) fourth, to the extent that the Maximum Number of Shares have not been reached under the
foregoing clauses (i), (ii), and (iii), the shares of Common Stock that other stockholders desire
to sell that can be sold without exceeding the Maximum Number of Shares.

          2.1.5. Withdrawal. If HYUNDAI disapproves of the terms of any underwriting or is not
entitled to include all of its Registrable Shares in any offering, HYUNDAI may elect to withdraw
from such offering by giving written notice to the Company and the Underwriter or Underwriters of
its request to withdraw prior to the effectiveness of the Registration Statement filed with the
Commission with respect to such Demand Registration. If HYUNDAI withdraws from a proposed offering
relating to a Demand Registration, then such registration shall not count as a Demand Registration
provided for in Section 2.1.1.

     2.2 Piggy-Back Registration.

          2.2.1. Piggy-Back Rights. If at any time on or after the date hereof the Company
proposes to file a Registration Statement under the Securities Act with respect to an offering of
equity securities, or securities or other obligations exercisable or exchangeable for, or
convertible into, equity securities, by the Company for its own account or for stockholders of the
Company for their account (or by the Company and by stockholders of the Company including, without
limitation, pursuant to Section 2.1), other than a Registration Statement (i) filed in connection
with any employee stock option or other benefit plan, (ii) for an exchange offer or offering of
securities solely to the Company’s existing stockholders or (iii) filed on Form S-4, then the
Company shall (x) give written notice of such proposed filing to HYUNDAI as soon as practicable but
in no event less than ten (10) calendar days before the anticipated filing date, which notice shall
describe the amount and type of securities to be included in such offering, the intended method(s)
of distribution, and the name of the proposed managing Underwriter or Underwriters, if any, of the
offering, and (y) offer to HYUNDAI in such notice the opportunity to register the sale of such
number of Registrable Shares as HYUNDAI may request in writing within five (5) days following
receipt of such notice (a “Piggy-Back

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 7 of 21

 

 

Registration”). The Company shall cause such Registrable Shares to be included in such
registration and shall use its reasonable best efforts to cause the managing Underwriter or
Underwriters of a proposed underwritten offering to permit the Registrable Shares requested to be
included in a Piggy-Back Registration to be included on the same terms and conditions as any
similar securities of the Company and to permit the sale or other disposition of such Registrable
Shares in accordance with the intended method(s) of distribution thereof. HYUNDAI shall enter into
an underwriting agreement in customary form with the Underwriter or Underwriters, if any, selected
for such Piggy-Back Registration. The Company shall not be obligated to effect more than five (5)
Piggy-Back Registrations under this Section 2.2.1 in respect of Registrable Shares.

          2.2.2. Reduction of Offering. If the managing Underwriter or Underwriters for a
Piggy-Back Registration that is to be an underwritten offering advises the Company and HYUNDAI in
writing that the dollar amount or number of shares of Common Stock which the Company desires to
sell, taken together with shares of Common Stock, if any, as to which registration has been
demanded pursuant to written contractual arrangements with persons other than HYUNDAI, and the
shares of Common Stock, if any, as to which registration has been requested pursuant to the written
contractual piggy-back registration rights of other stockholders of the Company, exceeds the
Maximum Number of Shares, then the Company shall include in any such registration: (i) if the
registration is undertaken for the Company’s account: (A) first, the shares of Common Stock or
other securities that the Company desires to sell that can be sold without exceeding the Maximum
Number of Shares; (B) second, to the extent that the Maximum Number of Shares has not been reached
under the foregoing clause (A), the shares of Common Stock, if any, including the Registrable
Shares, as to which registration has been requested pursuant to written contractual piggy-back
registration rights of security holders (pro rata in accordance with the number of shares of Common
Stock which each such person has actually requested to be included in such registration, regardless
of the number of shares of Common Stock with respect to which such persons have the right to
request such inclusion) that can be sold without exceeding the Maximum Number of Shares; and (ii)
if the registration is a “demand” registration undertaken at the demand of persons other than
HYUNDAI pursuant to written contractual arrangements with such persons, (A) first, the shares of
Common Stock for the account of the demanding persons that can be sold without exceeding the
Maximum Number of Shares; (B) second, to the extent that the Maximum Number of Shares

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 8 of 21

 

 

has not been reached under the foregoing clause (A), the shares of Common Stock or other
securities that the Company desires to sell that can be sold without exceeding the Maximum Number
of Shares; and (C) third, to the extent that the Maximum Number of Shares has not been reached
under the foregoing clauses (A) and (B), the Registrable Shares as to which registration has been
requested under this Section 2.2; and (D) fourth, to the extent that the Maximum Number of Shares
has not been reached under the foregoing clauses (A), (B) and (C), the shares of Common Stock, if
any, as to which registration has been requested pursuant to written contractual piggy-back
registration rights which other stockholders desire to sell that can be sold without exceeding the
Maximum Number of Shares.

          2.2.3. Withdrawal. HYUNDAI may elect to withdraw its request for inclusion of
Registrable Shares in any Piggy-Back Registration by giving written notice to the Company of such
request to withdraw prior to the effectiveness of the Registration Statement. The Company may also
elect to withdraw a registration statement at any time prior to the effectiveness of the
Registration Statement. Notwithstanding any such withdrawal, the Company shall pay all expenses
incurred by HYUNDAI in connection with such Piggy-Back Registration as provided in Section 3.3.

3. Registration Procedures.

     3.1 Filings; Information. Whenever the Company is required to effect the registration
of any Registrable Shares pursuant to Section 2, the Company shall use its reasonable best efforts
to effect the registration and sale of such Registrable Shares in accordance with the intended
method(s) of distribution thereof as expeditiously as practicable, and in connection with any such
request:

          3.1.1. Filing Registration Statement. The Company shall, as expeditiously as possible
and in any event within ninety (90) days after receipt of a request for a Demand Registration
pursuant to Section 2.1, prepare and file with the Commission a Registration Statement on any form
for which the Company then qualifies or which counsel for the Company shall deem appropriate and
which form shall be available for the sale of all Registrable Shares to be registered thereunder in
accordance with the intended method(s) of distribution thereof, and shall use its reasonable best
efforts to cause such Registration Statement to become and remain effective for the period required
by Section 3.1.3; provided, however, that the Company shall

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 9 of 21

 

 

have the right to defer any Demand Registration for up to ninety (90) days, and any
Piggy-Back Registration for such period as may be applicable to deferment of any demand
registration to which such Piggy-Back Registration relates, in each case if the Company shall
furnish to the holders a certificate signed by the Chief Executive Officer of the Company stating
that, in the good faith judgment of the Board of Directors of the Company, it would be materially
detrimental to the Company and its stockholders for such Registration Statement to be effected at
such time; provided further, however, that the Company shall not have the right to exercise the
right set forth in the immediately preceding proviso more than once in any 365-day period in
respect of a Demand Registration hereunder.

          3.1.2. Copies. The Company shall, prior to filing a Registration Statement or
prospectus, or any amendment or supplement thereto, which includes any Registrable Shares, furnish
without charge to HYUNDAI and HYUNDAI’s legal counsel, copies of such Registration Statement as
proposed to be filed, each amendment and supplement to such Registration Statement (in each case
including all exhibits thereto and documents incorporated by reference therein), the prospectus
included in such Registration Statement (including each preliminary prospectus), and such other
documents as HYUNDAI or its legal counsel may request in order to facilitate the disposition of
HYUNDAI’s Registrable Shares.

          3.1.3. Amendments and Supplements. The Company shall prepare and file with the
Commission such amendments, including post-effective amendments, and supplements to such
Registration Statement and the prospectus used in connection therewith as may be necessary to keep
such Registration Statement effective and in compliance with the provisions of the Securities Act
until all Registrable Shares and other securities covered by such Registration Statement have been
disposed of in accordance with the intended method(s) of distribution set forth in such
Registration Statement (which period shall not exceed the sum of one hundred eighty (180) days plus
any period during which any such disposition is interfered with by any stop order or injunction of
the Commission or any governmental agency or court) or such securities have been withdrawn.

          3.1.4. Notification. After the filing of a Registration Statement, if any Registrable
Shares are included in such Registration Statement of such filing, the Company shall promptly, and
in no event more than two (2) business days after such filing,

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 10 of 21

 

 

notify HYUNDAI and shall further notify HYUNDAI promptly and confirm such advice in writing in
all events within two (2) business days of the occurrence of any of the following: (i) when such
Registration Statement becomes effective; (ii) when any post-effective amendment to such
Registration Statement becomes effective; (iii) the issuance or threatened issuance by the
Commission of any stop order (and the Company shall take all actions required to prevent the entry
of such stop order or to remove it if entered); and (iv) any request by the Commission for any
amendment or supplement to such Registration Statement or any prospectus relating thereto or for
additional information or of the occurrence of an event requiring the preparation of a supplement
or amendment to such prospectus so that, as thereafter delivered to the purchasers of the
securities covered by such Registration Statement, such prospectus will not contain an 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 not misleading, and promptly make available to HYUNDAI any
such supplement or amendment; except that before filing with the Commission a Registration
Statement or prospectus or any amendment or supplement thereto, including documents incorporated by
reference, the Company shall furnish to HYUNDAI and to its legal counsel copies of all such
documents proposed to be filed sufficiently in advance of filing to provide HYUNDAI and its legal
counsel with a reasonable opportunity to review such documents and comment thereon.

          3.1.5. State Securities Laws Compliance. The Company shall use its reasonable best
efforts to (i) register or qualify the Registrable Shares covered by the Registration Statement
under such securities or “blue sky” laws of such jurisdictions in the United States as HYUNDAI (in
light of its intended plan of distribution) may request and (ii) take such action necessary to
cause such Registrable Shares covered by the Registration Statement to be registered with or
approved by such other governmental authorities as may be necessary by virtue of the business and
operations of the Company and do any and all other acts and things that may be necessary or
advisable to enable HYUNDAI to consummate the disposition of its Registrable Shares in such
jurisdictions; provided, however, that the Company shall not be required to qualify generally to do
business in any jurisdiction where it would not otherwise be required to qualify but for this
paragraph or subject itself to taxation in any such jurisdiction.

          3.1.6. Agreements for Disposition. The Company shall enter into customary agreements
(including, if applicable, an

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 11 of 21

 

 

underwriting agreement in customary form) and take such other actions as are reasonably
required in order to expedite or facilitate the disposition of the Registrable Shares. The
representations, warranties and covenants of the Company in any underwriting agreement which are
made to or for the benefit of any Underwriters, to the extent applicable, shall also be made to and
for the benefit of HYUNDAI. HYUNDAI shall not be required to make any representations or
warranties in the underwriting agreement except, if applicable, with respect to HYUNDAI’s title to
the Registrable Shares and with respect to written information relating to HYUNDAI that HYUNDAI has
furnished in writing expressly for inclusion in such Registration Statement.

          3.1.7. Cooperation. The principal executive officer of the Company, the principal
financial officer of the Company, the principal accounting officer of the Company and all other
officers and members of the management of the Company shall cooperate fully in any offering of
Registrable Shares hereunder, which cooperation shall include, without limitation, the preparation
of the Registration Statement with respect to such offering and all other offering materials and
related documents, and participation in meetings with Underwriters, attorneys, accountants and
potential investors.

          3.1.8. Records. The Company shall make available for inspection by HYUNDAI, any
Underwriter participating in any disposition pursuant to such registration statement and any
attorney, accountant or other professional retained by HYUNDAI or any Underwriter, all financial
and other records, pertinent corporate documents and properties of the Company, as shall be
reasonably necessary to enable them to exercise their due diligence responsibility, and cause the
Company’s officers, directors and employees to supply all information requested by any of them in
connection with such Registration Statement; provided, however, that each such person retained by
HYUNDAI shall agree to hold in strict confidence and shall not make any disclosures (except to
HYUNDAI) or use any such record or other information which the Company determines in good faith to
be confidential, and of which determination such persons are so notified.

          3.1.9. Opinions and Comfort Letters. The Company shall furnish to HYUNDAI a signed
counterpart, addressed to HYUNDAI, of (i) any opinion of counsel to the Company delivered to any
Underwriter and (ii) any comfort letter from the Company’s independent public accountants delivered
to any Underwriter. In the

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 12 of 21

 

 

event no legal opinion is delivered to any Underwriter, the Company shall furnish to HYUNDAI,
at any time that HYUNDAI elects to use a prospectus, an opinion of counsel to the Company to the
effect that the Registration Statement containing such prospectus has been declared effective and
that no stop order is in effect.

          3.1.10. Earnings Statement. The Company shall comply with all applicable rules and
regulations of the Commission and the Securities Act, and make available to its stockholders, as
soon as practicable, an earnings statement covering a period of twelve (12) months, beginning
within three (3) months after the effective date of the Registration Statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder.

          3.1.11. Listing. The Company shall use its reasonable best efforts to cause all
Registrable Shares included in any registration to be listed on the American Stock Exchange or
otherwise designated for trading in the same manner as similar securities issued by the Company are
then listed or designated or, if no such similar securities are then listed or designated, in a
manner reasonably satisfactory to HYUNDAI.

     3.2 Obligation to Suspend Distribution. Upon receipt of any notice from the Company of
the happening of any event of the kind described in Section 3.1.4(iv), HYUNDAI shall immediately
discontinue disposition of such Registrable Shares pursuant to the Registration Statement covering
such Registrable Shares until HYUNDAI receives the supplemented or amended prospectus contemplated
by Section 3.1.4(iv) and, if so directed by the Company, HYUNDAI will deliver to the Company all
copies, other than permanent file copies then in HYUNDAI’s possession, of the most recent
prospectus covering such Registrable Shares at the time of receipt of such notice.

     3.3 Registration Expenses. The Company shall bear all costs and expenses incurred in
connection with each Demand Registration pursuant to Section 2.1 and any Piggy-Back Registration
pursuant to Section 2.2, and all expenses incurred in performing or complying with its other
obligations under this Agreement, whether or not the Registration Statement becomes effective,
including, without limitation: (i) all registration and filing fees; (ii) fees and expenses of
compliance with securities or “blue sky” laws (including fees and disbursements of counsel in
connection with blue sky qualifications of the Registrable Shares); (iii) printing expenses;

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 13 of 21

 

 

(iv) the Company’s internal expenses (including, without limitation, all salaries and expenses
of its officers and employees); (v) the fees and expenses incurred in connection with the listing
of the Registrable Shares as required by Section 3.1.11; (vi) National Association of Securities
Dealers, Inc. fees; (vii) fees and disbursements of counsel for the Company and fees and expenses
for independent certified public accountants retained by the Company (including the expenses or
costs associated with the delivery of any opinions or comfort letters requested pursuant to Section
3.1.9); (viii) the fees and expenses of any special experts retained by the Company in connection
with such registration and (ix) the fees and expenses of one legal counsel selected by HYUNDAI.
The Company shall have no obligation to pay any underwriting discounts or selling commissions
attributable to the Registrable Shares being sold by HYUNDAI, which underwriting discounts or
selling commissions shall be borne by HYUNDAI. Additionally, in an underwritten offering, all
selling stockholders and the Company shall bear the expenses of the underwriter pro rata in
proportion to the respective amount of shares each is selling in such offering.

     3.4 Information. HYUNDAI shall provide such information as may reasonably be requested
by the Company, or the managing Underwriter, if any, in connection with the preparation of any
Registration Statement, including amendments and supplements thereto, in order to effect the
registration of any Registrable Shares under the Securities Act pursuant to Section 2 and in
connection with the Company’s obligation to comply with federal and applicable state securities
laws.

4. Indemnification and Contribution.

     4.1 Indemnification by the Company. The Company agrees to indemnify and hold harmless
HYUNDAI and its successors and assigns, and each person, if any, who controls any successor or
assign of HYUNDAI (within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act) (each, a “HYUNDAI Indemnified Party”), from and against any expenses, losses,
judgments, claims, damages or liabilities, whether joint or several, arising out of or based upon
any untrue statement (or allegedly untrue statement) of a material fact contained in any
Registration Statement under which the sale of any Registrable Shares was registered under the
Securities Act, any preliminary prospectus, final prospectus or summary prospectus contained in the
Registration Statement, or any amendment or supplement to such Registration Statement, or arising
out of or based upon any omission (or alleged omission) to state a

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 14 of 21

 

 

material fact required to be stated therein or necessary to make the statements therein not
misleading, or any violation by the Company of the Securities Act or any rule or regulation
promulgated thereunder applicable to the Company and relating to action or inaction required of the
Company in connection with any such registration; and the Company shall promptly reimburse the
HYUNDAI Indemnified Party for any legal and any other expenses reasonably incurred by such HYUNDAI
Indemnified Party in connection with investigating and defending any such expense, loss, judgment,
claim, damage, liability or action; provided, however, that the Company will not be liable in any
such case to the extent that any such expense, loss, claim, damage or liability arises out of or is
based upon any untrue statement or allegedly untrue statement or omission or alleged omission made
in such Registration Statement, preliminary prospectus, final prospectus, or summary prospectus, or
any such amendment or supplement, in reliance upon and in conformity with information furnished to
the Company, in writing, by such Indemnified Party expressly for use therein. The Company also
shall indemnify any Underwriter of the Registrable Shares, their officers, affiliates, directors,
partners, members and agents and each person who controls such Underwriter on substantially the
same basis as that of the indemnification provided above in this Section 4.1.

     4.2 Indemnification by HYUNDAI. HYUNDAI will, in the event that any registration is
being effected under the Securities Act pursuant to this Agreement of any Registrable Shares held
by HYUNDAI, indemnify and hold harmless the Company, each of its directors and officers and each
underwriter (if any), and each other person, if any, who controls such selling holder or such
underwriter within the meaning of the Securities Act (each, a “Company Indemnified Party”), against
any expenses, losses, claims, judgments, damages or liabilities, whether joint or several, insofar
as such expenses, losses, claims, judgments, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or allegedly untrue statement of a material
fact contained in any Registration Statement under which the sale of such Registrable Shares was
registered under the Securities Act, any preliminary prospectus, final prospectus or summary
prospectus contained in the Registration Statement, or any amendment or supplement to the
Registration Statement, or arise out of or are based upon any omission or the alleged omission to
state a material fact required to be stated therein or necessary to make the statement therein not
misleading, if the statement or omission was made in reliance upon and in conformity with
information furnished in writing to the Company by HYUNDAI expressly for use therein, and

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 15 of 21

 

 

shall reimburse the Company, its directors and officers, and each such controlling person for
any legal or other expenses reasonably incurred by any of them in connection with investigation or
defending any such loss, claim, damage, liability or action. HYUNDAI’s indemnification obligations
hereunder shall be limited to the amount of any net proceeds actually received by HYUNDAI.

     4.3 Conduct of Indemnification Proceedings. Promptly after receipt by any person of
any notice of any loss, claim, damage or liability or any action in respect of which indemnity may
be sought pursuant to Section 4.1 or 4.2, such person (the “Indemnified Party”) shall, if a claim
in respect thereof is to be made against any other person for indemnification hereunder, notify
such other person (the “Indemnifying Party”) in writing of the loss, claim, judgment, damage,
liability or action; provided, however, that the failure by the Indemnified Party to notify the
Indemnifying Party shall not relieve the Indemnifying Party from any liability which the
Indemnifying Party may have to such Indemnified Party hereunder, except and solely to the extent
the Indemnifying Party is actually prejudiced by such failure. If the Indemnified Party is seeking
indemnification with respect to any claim or action brought against the Indemnified Party, then the
Indemnifying Party shall be entitled to participate in such claim or action, and, to the extent
that it wishes, jointly with all other Indemnifying Parties, to assume control of the defense
thereof with counsel satisfactory to the Indemnified Party. After notice from the Indemnifying
Party to the Indemnified Party of its election to assume control of the defense of such claim or
action, the Indemnifying Party shall not be liable to the Indemnified Party for any legal or other
expenses subsequently incurred by the Indemnified Party in connection with the defense thereof
other than reasonable costs of investigation; provided, however, that in any action in which both
the Indemnified Party and the Indemnifying Party are named as defendants, the Indemnified Party
shall have the right to employ separate counsel (but no more than one such separate counsel) to
represent the Indemnified Party and its controlling persons who may be subject to liability arising
out of any claim in respect of which indemnity may be sought by the Indemnified Party against the
Indemnifying Party, with the fees and expenses of such counsel to be paid by such Indemnifying
Party if, based upon the written opinion of counsel of such Indemnified Party, representation of
both parties by the same counsel would be inappropriate due to actual or potential differing
interests between them. No Indemnifying Party shall, without the prior written consent of the
Indemnified Party, consent to entry of judgment or effect any settlement of any claim or pending or

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 16 of 21

 

 

threatened proceeding in respect of which the Indemnified Party is or could have been a party
and indemnity could have been sought hereunder by such Indemnified Party, unless such judgment or
settlement includes an unconditional release of such Indemnified Party from all liability arising
out of such claim or proceeding.

     4.4 Contribution.

          4.4.1. If the indemnification provided for in the foregoing Sections 4.1, 4.2 and 4.3 is
unavailable to any Indemnified Party in respect of any loss, claim, damage, liability or action
referred to herein, then each such Indemnifying Party, in lieu of indemnifying such Indemnified
Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such
loss, claim, damage, liability or action in such proportion as is appropriate to reflect the
relative fault of the Indemnified Parties and the Indemnifying Parties in connection with the
actions or omissions which resulted in such loss, claim, damage, liability or action, as well as
any other relevant equitable considerations. The relative fault of any Indemnified Party and any
Indemnifying Party shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information supplied by such Indemnified Party or such Indemnifying Party and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

          4.4.2. The parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 4.4 were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred to in the
immediately preceding Section 4.4.1. The amount paid or payable by an Indemnified Party as a result
of any loss, claim, damage, liability or action referred to in the immediately preceding paragraph
shall be deemed to include, subject to the limitations set forth above, any legal or other expenses
incurred by such Indemnified Party in connection with investigating or defending any such action or
claim. Notwithstanding the provisions of this Section 4.4, HYUNDAI shall not be required to
contribute any amount in excess of the dollar amount of the net proceeds (after payment of any
underwriting fees, discounts, commissions or taxes) actually received by HYUNDAI from the sale of
Registrable Shares which gave rise to such contribution obligation. No person guilty of fraudulent
misrepresentation (within the meaning

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 17 of 21

 

 

of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who
was not guilty of such fraudulent misrepresentation.

5. Rule 144. The Company covenants that it shall file any reports required to be filed by
it under the Securities Act and the Exchange Act and shall take such further action as HYUNDAI may
reasonably request, all to the extent required from time to time to enable HYUNDAI to sell
Registrable Shares without registration under the Securities Act within the limitation of the
exemptions provided by Rule 144 under the Securities Act, as such Rule may be amended from time to
time, or any similar Rule or regulation hereafter adopted by the Commission.

6. Miscellaneous.

     6.1. Other Registration Rights. The Company represents and warrants that no person,
other HYUNDAI has any right to require the Company to register any shares of the Company’s capital
stock for sale or to include shares of the Company’s capital stock in any registration filed by the
Company for the sale of shares of capital stock for its own account or for the account of any other
person.

     6.2 Assignment; No Third Party Beneficiaries. This Agreement and the rights, duties
and obligations of the Company hereunder may not be assigned or delegated by the Company in whole
or in part. This Agreement and the rights, duties and obligations of HYUNDAI may be freely
assigned or delegated by HYUNDAI in conjunction with and to the extent of any transfer of
Registrable Shares HYUNDAI. This Agreement and the provisions hereof shall be binding upon and
shall inure to the benefit of each of the parties and their respective successors and the permitted
assigns of holder of Registrable Shares or of any assignee of HYUNDAI. This Agreement is not
intended to confer any rights or benefits on any persons that are not party hereto other than
HYUNDAI and except as expressly set forth in Section 4 and this Section 6.2.

     6.3. Notices. All notices, demands, requests, consents, approvals or other
communications (collectively, “Notices”) required or permitted to be given hereunder or which are
given with respect to this Agreement shall be in writing and shall be personally served, delivered
by reputable air courier service with charges prepaid, or transmitted by hand delivery, telegram,
telex, facsimile or E-mail, addressed as set forth below, or to such other address as such party
shall have specified most recently by written notice.

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 18 of 21

 

 

Notice shall be deemed given on the date of service or transmission if personally served or
transmitted by telegram, telex, facsimile or E-Mail; provided, that if such service or transmission
is not on a business day or is after normal business hours, then such notice shall be deemed given
on the next business day. Notice otherwise sent as provided herein shall be deemed given on the
next business day following timely delivery of such notice to a reputable air courier service with
an order for next-day delivery.

	 	 	 	 	 
	If to the Company:	 	With a copy to:
	US Dataworks, Inc.

	 	 	 	Pillsbury Winthrop Shaw Pittman LLP
	5301 Hollister Road, Second Floor

	 	 	 	2475 Hanover Street
	Houston, Texas 77040

	 	 	 	Palo Alto, California 94304-1114
	Attention: John J. Figone, Sr.

	 	 	 	Attention: Richard Bebb, Esq.
	Vice President & General Counsel

	 	 	 	Telephone: (650) 233-4500
	Telephone: (713) 934-3855 x250

	 	 	 	Facsimile:
	Facsimile: (713) 690-1426

	 	 	 	Email: rbebb@pillsburylaw.com
	Email:jfigone@usdataworks.com
	 	 	 	 
	 
	 	 	 	 
	If to HYUNDAI:	 	With a copy to:
	Hyundai Syscomm Corp.

	 	 	 	Peter B. Hirshfield, Esq.
	1065 East Hillsdale Boulevard

	 	 	 	Hirshfield Law
	Suite 247

	 	 	 	1035 Park Avenue, Suite 7B
	Foster City, CA 94404

	 	 	 	New York NY 10028-0912
	Attention: Samuel Lee

	 	 	 	Telephone: (646) 827-9362
	Chairman of the Board

	 	 	 	Facsimile: (646) 349-1665
	Telephone: (510) 790-4500

	 	 	 	Email: phirshfield@hirshfieldlaw.com
	Facsimile: (415) 358-4551
	 	 	 	 
	Email: jack@hyundaisyscom.com
	 	 	 	 

     6.4. Severability. This Agreement shall be deemed severable, and the invalidity
or unenforceability of any term or provision hereof shall not affect the validity or enforceability
of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such
invalid or unenforceable term or provision, the parties hereto intend that there shall be added as
a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision
as may be possible that is valid and enforceable.

     6.5. Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original, and all of which taken together shall constitute one and the
same instrument.

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 19 of 21

 

 

     6.6. Electronic Counterparts Acceptable. An electronically transmitted copy of a
manually signed counterpart of this Agreement or any Notice shall for all purposes be equivalent to
the manually signed counterpart so electronically transmitted.

     6.7. Entire Agreement. This Agreement (including all agreements entered into pursuant
hereto and all certificates and instruments delivered pursuant hereto and thereto) constitute the
entire agreement of the parties with respect to the subject matter hereof and supersede all prior
and contemporaneous agreements, representations, understandings, negotiations and discussions
between the parties, whether oral or written.

     6.8. Modifications and Amendments. No amendment, modification or termination of this
Agreement shall be binding upon any party unless executed in writing by such party.

     6.9. Titles and Headings. Titles and headings of sections of this Agreement are for
convenience only and shall not affect the construction of any provision of this Agreement.

     6.10. Waivers and Extensions. Any party to this Agreement may waive any right, breach
or default which such party has the right to waive, provided that such waiver will not be effective
against the waiving party unless it is in writing, is signed by such party, and specifically refers
to this Agreement. Waivers may be made in advance or after the right waived has arisen or the
breach or default waived has occurred. Any waiver may be conditional. No waiver of any breach of
any agreement or provision herein contained shall be deemed a waiver of any preceding or succeeding
breach thereof nor of any other agreement or provision herein contained. No waiver or extension of
time for performance of any obligations or acts shall be deemed a waiver or extension of the time
for performance of any other obligations or acts.

     6.11 Remedies Cumulative. In the event that the Company fails to observe or perform
any covenant or agreement to be observed or performed under this Agreement, the Investor or any
other holder of Registrable Shares may proceed to protect and enforce its rights by suit in equity
or action at law, whether for specific performance of any term contained in this Agreement or for
an injunction against the breach of any such term or in aid of the exercise of any power granted in
this Agreement or to enforce any other legal or equitable right, or to take any one or more of such
actions, without being required to post a bond. None of the rights, powers or remedies

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 20 of 21

 

 

conferred under this Agreement shall be mutually exclusive, and each such right, power or
remedy shall be cumulative and in addition to any other right, power or remedy, whether conferred
by this Agreement or now or hereafter available at law, in equity, by statute or otherwise.

     6.12 Governing Law. This Agreement shall be governed by, interpreted under, and
construed in accordance with the internal laws of the State of California applicable to agreements
made and to be performed within the State of California, without giving effect to any choice-of-law
provisions thereof that would compel the application of the substantive laws of any other
jurisdiction.

     6.13 Waiver of Trial by Jury. Each party hereby irrevocably and unconditionally waives
the right to a trial by jury in any action, suit, counterclaim or other proceeding (whether based
on contract, tort or otherwise) arising out of, connected with or relating to this Agreement, the
transactions contemplated hereby, or the actions of the Investor in the negotiation,
administration, performance or enforcement hereof.

     6.14 Termination of Registration Rights. The Company’s obligations pursuant to this
Agreement (other than those in Section 4) shall terminate as to Registrable Shares on the earlier
of (i) when HYUNDAI can sell all of its Registrable Shares pursuant to Rule 144(k) under the
Securities Act without any time, volume or manner limitations or (ii) when HYUNDAI has sold all
Registrable Shares pursuant to Sections 2 and 3.

     IN WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be executed
and delivered by their duly authorized representatives as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	US Dataworks, Inc.	 	 	 	Hyundai Syscomm Corp.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Charles E. Ramey	 	 	 	By:	 	/s/ Samuel Lee	 	 
	 

	 	 

Charles E. Ramey
	 	 
	 	 	 	 

Name: Samuel Lee
	 	 
	 

	 	Chief Executive Officer
	 	 	 	 	 	Title: Chairman of the Board	 	 

©2006 Hyundai Syscomm Corp. Registration Rights Agreement with US Dataworks, Inc.

December 27, 2006, Page 21 of 21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]