Document:

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                                                                    EXHIBIT 10.2

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.

                                WARRANT AGREEMENT

         This Warrant Agreement (the "AGREEMENT") dated as of June 6, 2003
between US Dataworks, Inc. a Nevada corporation (the "Company"), and La Jolla
Cove Investors, Inc., a California corporation ("LA JOLLA"). This Agreement is
being issued and delivered pursuant to that certain note and warrant agreement
dated of even date herewith (the "NOTE AND WARRANT AGREEMENT") by and between
the Company and La Jolla and is subject to the terms and conditions of the Note
and Warrant Agreement, which terms are herein incorporated by reference. Unless
otherwise set forth herein, all capitalized terms used herein without definition
shall have the meanings ascribed to such terms in the Note and Warrant
Agreement.

         WHEREAS, pursuant to the Note and Warrant Agreement, the Company wishes
to grant La Jolla warrants (the "WARRANTS") entitling it to purchase up to one
million dollars ($1,000,000) of the common stock of the Company ("COMMON STOCK,"
or individually, "SHARE" or plural, "SHARES") at the exercise price described
herein (but not to exceed a total of 11,500,000 shares).

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

         1. ISSUANCE OF WARRANT CERTIFICATE. The Warrants certificate to be
delivered pursuant to this Agreement (the "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.

         2. RIGHT TO EXERCISE WARRANTS. The Warrants may be exercised only in
accordance with the following schedule: (i) one-third (?) of the Warrants may be
exercised on the date one (1) day following the Conversion Date (as defined
below); (ii) one-third (?) of the Warrants may be exercised on the date
forty-five (45) days following the Conversion Date; and (iii) one-third (?) of
the Warrants may be exercised on the date ninety (90) days following the
Conversion Date. The "CONVERSION DATE" shall be that date, the earlier of (i) La
Jolla's receipt of the Company's Effectiveness Notice confirming the Company's
receipt of an effective registration statement by the Securities Exchange
Commission ("SEC"), pursuant to Section 7 herein; or (ii) La Jolla's holding of
the Warrant for one year from the date hereof (so as to permit it to trade the

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Common Stock into which the Warrant can be exercised under the restrictions of
SEC Rule 144). Any Warrant not exercised in accordance with the aforementioned
schedule shall expire. Subject to the provisions of this Agreement, La Jolla
shall have the right to purchase from the Company, and the Company shall issue
and sell to La Jolla, at a price per Share of the greater of either: (i) six
cents ($0.06), or (ii) fifty percent (50%) of the average of the listed American
Stock Exchange closing price for the Common Stock for the ten (10) trading days
immediately prior to the date the Warrants are exercised, subject to adjustment
as provided herein (the "EXERCISE PRICE"), one fully paid and nonassessable
Share upon surrender to the Company of the Warrant Certificate evidencing such
Warrant, with the form of election to purchase duly completed and signed and
evidence of payment of the Exercise Price.

         Upon surrender of such Warrant Certificate and payment of the Exercise
Price by either cash or cashless exercise ("NET ISSUE EXERCISE"), the Company
shall cause the corresponding number of Shares to be issued and delivered
promptly to La Jolla or any other holder La Jolla may designate. Under no
circumstances shall the total number of Shares issued to La Jolla upon the
exercise of the Warrants exceed eleven million five hundred thousand
(11,500,000) Shares in the aggregate.

         Further, should La Jolla elect to use a Net Issue Exercise and the
Exercise Price is less than or equal to six cents ($0.06) per share, then the
number of Shares that La Jolla may purchase upon exercise of the Warrants shall
be calculated based on there being a total of four million one hundred sixty-six
thousand, six hundred sixty six (4,166,666) Shares upon the full exercise of the
New Warrant (SEE Example #2 in subsection (b), below).

         (a) CASH EXERCISE. These Warrants may be exercised by the holder by (i)
the surrender of the Warrant Certificate to the Company, with the Notice of
Exercise annexed hereto duly completed and executed on behalf of the holder, at
the office of the Company (or such other office or agency of the Company as it
may designate by notice in writing to the holder at the address of the holder
appearing on the books of the Company) and (ii) the delivery of payment to the
Company, for the account of the Company, by cash, wire transfer of immediately
available funds to a bank account specified by the Company, or by certified or
bank cashier's check, of the Exercise Price for the number of Shares specified
in the Notice of Exercise in lawful money of the United States of America. The
Notice of Exercise may be submitted by La Jolla (or its designee) at any time
prior to 11:59 p.m. on the corresponding date that is one (1), forty-five (45)
and/or ninety (90) days following the Conversion Date(each date by which the
Warrants may be exercised, an "EXERCISE DATE"); provided however, that the
Exercise Price shall be determined as of the corresponding Exercise Date, not
the date upon which the Notice of Exercise is received. The Company agrees that
such Shares shall be deemed to be issued to the holder as the record holder of
such Shares as of the close of business on the date on which the Warrant
Certificate shall have been surrendered and payment made for the Shares as
aforesaid. A stock certificate for the Shares specified in the Notice of
Exercise shall be delivered to the holder as promptly as practicable. No
adjustments shall be made to the number of Shares issuable on the exercise of
these Warrants ("WARRANT SHARES") for any cash dividends paid or payable to
holders of record of Common Stock prior to the date as of which the holder shall
be deemed to be the record holder of such Warrant Shares.

         (b) NET ISSUE EXERCISE. In lieu of exercising these Warrants pursuant
to Section 2(a), the holder may elect to receive, without the payment by the
holder of any additional consideration, Shares equal to the value of the
Warrants by the surrender of the Warrant Certificate to the Company, with the
Notice of Exercise annexed hereto duly executed, at the office of the Company.
The Notice of Exercise may be submitted by La Jolla (or its designee) at any
time prior to 11:59 p.m. on the corresponding Exercise Date; provided however,

                                       2
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that the Exercise Price shall be determined as of the corresponding Exercise
Date, not the date upon which the Notice of Exercise is received. Thereupon, the
Company shall issue to the holder such number of fully paid and nonassessable
shares of Common Stock as is 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(b).

         Y  =     the number of Shares otherwise issuable under the Warrant
                  Certificate.

         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 date the Company receives
                  the Notice of Election.

         B  =     the Exercise Price in effect under these Warrants at the time
                  the Net Issue Election is made pursuant to this Section 2(b).

         EXAMPLE #1: Say it is one day following the Conversion Date and the
         closing price for one share of Common Stock (A) is $0.30 and the
         Exercise Price (B) is $0.15. Because the Warrant can only be exercised
         in accordance with the schedule set forth in Section 2, above, only
         one-third (?) of $1,000,000, or $333,333, the may be exercised at this
         time. Y equals $333,333 divided by $0.30, or 1,111,110 Shares.
         Therefore, X equals 1,111,110 multiplied by 0.5 ($0.30 minus $0.15,
         divided by $0.30) or 555,555 Shares.

         EXAMPLE #2: Again, say it is one day following the Conversion Date but
         the closing price for one share of Common Stock (A) is $0.10 and the
         Exercise Price (B) is $0.06. Y equals $333,333 divided by $0.10, or
         3,333,330 Shares. X would equal 3,333,330 multiplied by 0.40 ($0.10
         minus $0.06, divided by $0.10) or 1,333,332 Shares --- but because La
         Jolla has elected a Net Issue Exercise and the Exercise Price is less
         than or equal to $0.06 --- the number of Shares that La Jolla may
         purchase is calculated against a total of 4,166,666 Shares upon the
         full exercise of the New Warrant, and therefore X is increased to
         1,388,889 Shares (one-third of 4,166,666).

The Company agrees that such Shares shall be deemed to be issued to the holder
as the record holder of such Shares as of the close of business on the date on
which the Warrant Certificate shall have been surrendered. A stock certificate
for the Shares specified in the Notice of Exercise shall be delivered to the
holder as promptly as practicable. No adjustments shall be made to the number of
Warrant Shares for any cash dividends paid or payable to holders of record of
Common Stock prior to the date as of which the holder shall be deemed to be the
record holder of such 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
Shares upon exercise of Warrants, the full number of Shares deliverable upon the
exercise of all outstanding Warrants. The Company covenants that all Shares
which may be issued upon exercise of Warrants will be validly issued, fully paid
and nonassessable outstanding Shares of the Company.

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

"THE SECURITIES 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 Warrants or Shares shall also bear such legends as may
be required from time to time by law.

         5. RULE 144. If the Company shall be subject to the reporting
requirements of Section 13 of the Securities Exchange Act of 1934, as amended
(the "EXCHANGE 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 Exchange 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 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 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.

         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 Warrant are subject to adjustment from
time to time as set forth in this Section 6.

         (a) 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

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classes of Shares purchasable upon exercise of each Warrant in effect
immediately prior to such action shall be adjusted so that the holder of any
Warrant thereafter exercised may receive the number and classes of Shares of
capital stock of the Company which such holder would have owned immediately
following such action if such holder had exercised the Warrant immediately prior
to such action.

         (b) 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 Warrants shall automatically become
exercisable for the kind and amount of securities, cash or other assets that the
holder of a Warrant would have owned immediately after the consolidation, merger
or transfer if such holder had exercised the 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 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. PIGGY BACK REGISTRATION RIGHTS.

         (a) NOTICES. If (but without any obligation to do so) the Company
proposes to register any of its stock or other securities under the Securities
Act of 1933, as amended (the "SECURITIES ACT"), in connection with the public
offering of such securities solely for cash (other than a registration relating
solely to the sale of securities to participants in a Company stock plan, an SEC
Rule 145 transaction under the Securities Act or a registration on any form
which does not include substantially the same information as would be required
to be included in a registration statement covering the sale of the registrable
securities), the Company shall, at such time, promptly give La Jolla written
notice of such registration ("FILING NOTICE"). La Jolla shall have ten (10)
business days from the Filing Notice to notify the Company of the number of
Warrant Shares it would like to have included in the offering. The Company
shall, subject to the provisions of subsection (b), below, cause to be
registered under the Securities Act all of the Warrant Shares that La Jolla has
requested to be registered. As soon as practicable following the SEC's declaring
the Company's registration statement to be effective, the Company shall provide
La Jolla with written notice ("EFFECTIVENESS NOTICE") informing La Jolla of (i)
the Company's registration statement becoming effective, (ii) the Exercise Price
as determined by the Company, and (ii) La Jolla having five (5) business days by
which to exercise all or a portion of its Warrants or such unexercised Warrants
will expire immediately thereafter.

         (b) In connection with any offering involving an underwriting of Shares
being issued by the Company, the Company shall not be required under subsection
(a), above, to include any of La Jolla's Warrant Shares in such underwriting
unless La Jolla accept the terms of the underwriting as agreed upon between the
Company and the underwriters selected by it, and then only in such quantity as
the underwriters determine in their sole discretion will not jeopardize the
success of the offering by the Company. If the total amount of securities,
including La Jolla's Warrant Shares, requested by all of the Company's
stockholders with "piggy back" registration rights to be included in such
offering exceeds the amount of securities sold other than by the Company that
the underwriters reasonably believe is compatible with the success of the
offering, then the Company shall be required to include in the offering only
that number of such securities, including La Jolla's Warrant Shares, which the
underwriters reasonably believe will not jeopardize the success of the offering
(the securities so included to be apportioned PRO RATA among the selling
stockholders according to the total amount of securities entitled to be included
therein owned by each selling stockholder).

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         8. NOTICES TO COMPANY AND LA JOLLA.

         (a) THE COMPANY. Any notice or demand authorized by this Agreement to
be given or made by any registered holder of any Warrant Certificate to or on
the Company shall be sufficiently given or made if sent by registered mail,
postage prepaid, addressed to the Company, or by any other means or manner
mutually acceptable to the parties.

         (b) LA JOLLA. Any notice pursuant to this Agreement to be given by the
Company to La Jolla shall be sufficiently given if sent by registered mail,
postage prepaid, addressed (until another address is filed in writing by La
Jolla with the Company) to La Jolla at the address provided on page 7 of this
Agreement, or by any other means or manner mutually acceptable to the parties.

         9. RIGHTS OF STOCKHOLDERS. La Jolla shall not be entitled to vote or
receive dividends or be deemed the holder of Common Stock or any other
securities of the Company that may at any time be issuable on the exercise
hereof for any purpose, nor shall anything contained herein be construed to
confer upon La Jolla, as such, any of the rights of a stockholder of the Company
or any right to vote for the election of directors or upon any matter submitted
to stockholders at any meeting thereof, or to give or withhold consent to any
corporate action (whether upon any recapitalization, issuance of stock,
reclassification of stock, change of par value, or change of stock to no par
value, consolidation, merger, conveyance, or otherwise) or to receive notice of
meetings, or to receive dividends or subscription rights or otherwise until the
Warrants shall have been exercised as provided herein.

         10. SUPPLEMENTS AND AMENDMENTS. The Company and La Jolla 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 La Jolla
may deem necessary or desirable. All amendments to this Agreement must be made
in writing and signed by both parties.

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

         12. ENTIRE AGREEMENT. This Agreement, including the Warrant Certificate
and Notice of Exercise which hereinafter are incorporated by reference,
represents the entire agreement between the parties relating to the subject
matter hereof. This Agreement alone fully and completely expresses the agreement
of the parties relating to the subject matter hereof. There are no other courses
of dealing, understandings, agreements, representations or warranties, written
or oral, except as set forth herein. If any provision in this Agreement directly
conflicts with any provision in the Note and Warrant Agreement, the provision in
the Note and Warrant Agreement will control, unless the context clearly
indicates the parties intended the other provision to control.

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         13. GOVERNING LAW. This Agreement and each 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.

         14. 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.

                                       7
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed, as of the date and year first above written.

LA JOLLA COVE INVESTORS, INC.                 US DATAWORKS, INC.

/S/ TRAVIS W. HUFF                            /S/ JOHN S. REILAND
----------------------------------            -----------------------------
Its authorized representative                 Its authorized representative

PORTFOLIO MANAGER, VP                         CHIEF FINANCIAL OFFICER
----------------------------------            -----------------------------
Title                                         Title

La Jolla Cove Investors, Inc.                 US Dataworks, Inc.
7817 Herschel Avenue, Suite 200               5301 Hollister Road, Suite 250
La Jolla, California 92037                    Houston, Texas  77040

Telephone:   (858) 551-8703                   Telephone:  (713) 934-3854

Facsimile:    (858) 551-0987                  Facsimile:   (713) 934-8192

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                                US DATAWORKS, INC

                               WARRANT CERTIFICATE

NO. _____

         This Warrant Certificate certifies that La Jolla Cove Investors, Inc.,
a California corporation ("LA JOLLA"), or its registered assigns, is the
registered holder of a certain number of warrants (the "WARRANTS") equal to that
number that would entitle the holder to purchase up to one million dollars
($1,000,000) of common stock ("COMMON STOCK") of US Dataworks, Inc., a Nevada
corporation (the "COMPANY") at the Exercise Price (described below). The
Warrants may be exercised only in accordance with the following schedule: (i)
one-third (?) of the Warrants may be exercised on the date one (1) day following
the Conversion Date (as defined below); (ii) one-third (?) of the Warrants may
be exercised on the date forty-five (45) days following the Conversion Date; and
(iii) one-third (?) of the Warrants may be exercised on the date ninety (90)
days following the Conversion Date (each date upon which the Warrants may be
exercised, an "EXERCISE DATE"). The "CONVERSION DATE" shall be that date, the
earlier of (i) La Jolla's receipt of the Company's Effectiveness Notice
confirming the Company's receipt of an effective registration statement by the
Securities Exchange Commission ("SEC"), pursuant to Section 7 herein; or (ii) La
Jolla's holding of the Warrant for one year from the date hereof (so as to
permit it to trade the Common Stock into which the Warrant can be exercised
under the restrictions of SEC Rule 144). Any Warrant not exercised in accordance
with the aforementioned schedule shall expire. Each Warrant entitles the holder,
in accordance with the aforementioned exercise schedule only, to purchase from
the Company, before 11:59 p.m. on the corresponding Exercise Date, one fully
paid and nonassessable share of Common Stock of the Company at a price per Share
of the greater of either: (i) six cents ($0.06) or (ii) fifty percent (50%) of
the average of the listed American Stock Exchange closing price for the Common
Stock for the ten (10) trading days immediately prior to the date the Warrants
are exercised (the "EXERCISE PRICE"), subject to adjustment as provided in the
Warrant Agreement to which this Warrants Certificate is a part. Upon surrender
of this Warrant Certificate, a fully executed Notice of Exercise and either
payment of the Exercise Price or the designation of a cashless exercise ("NET
ISSUE EXERCISE") as shown on the Notice of Exercise, the Company shall issue a
stock certificate for the Shares specified in the Notice of Exercise and a new
Warrant Certificate for those Warrants not exercised (but excluding expired
Warrants) as promptly as practicable. The Notice of Exercise may be submitted by
La Jolla (or its designee) at any time prior to 11:59 p.m. on the corresponding
Exercise Date; provided however, that the Exercise Price shall be determined as
of the corresponding Exercise Date, not the date upon which the Notice of
Exercise is received.

         Unless otherwise set forth herein, all capitalized terms used herein
without definition shall have the meanings ascribed to such terms in the Warrant
Agreement.

         The Exercise Price and the number of Shares purchasable upon exercise
of the Warrants are subject to adjustment upon the occurrence of certain events
set forth in the Warrant Agreement. Under no circumstances shall the total
number of Shares issued to La Jolla upon the exercise of the Warrants exceed
eleven million five hundred thousand (11,500,000) Shares. No adjustment shall be
made for any cash dividends on any Shares issuable upon exercise of this
Warrant.

         In the event La Jolla elects to use a Net Issue Exercise and the
Exercise Price is less than or equal to six cents ($0.06) per share, then the
number of Shares that La Jolla may purchase upon exercise of the Warrants shall
be calculated based on there being a total of four million one hundred sixty-six
thousand, six hundred sixty six (4,166,666) Shares upon the full exercise of the
New Warrant (SEE Example #2 in subsection (b), below)

<PAGE>

         No Warrant may be exercised after 11:59 P.M. (Pacific Standard Time) on
the corresponding Exercise Date. Unless such Warrants may be included in a
subsequent exercise (pursuant to the aforementioned exercise schedule), such
unexercised Warrants shall thereafter be void.

         The Warrants evidenced by this Warrant Certificate are part of a duly
authorized issue of Warrants issued pursuant to a Warrant Agreement, dated as of
June __, 2003 (the "WARRANT AGREEMENT") duly executed by the Company and La
Jolla. The 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 Warrant Certificates).

         The Company may deem and treat the person(s) registered in the
Company's register as the absolute owner(s) of this 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.

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 Warrant Certificate to
be duly executed under its corporate seal.

US Dataworks, Inc.                              Attested

_____________________________                   _______________________________
Its authorized representative

_____________________________                   _______________________________
Printed Name and Title                          Printed Name and Title

                                     Page 2
<PAGE>

                               NOTICE OF EXERCISE

To:  US DATAWORKS, INC.

The undersigned hereby elects to purchase _________________________ shares of
Common Stock of US DATAWORKS, INC. ("Shares") as such Shares may be purchased in
accordance with the exercise schedule set forth in the Warrant Certificate
(check appropriate box(es)):

         [ ] up to $333,333 of Shares may be purchased on the Exercise Date one
         (1) day following the Conversion Date (as such term is defined in the
         Warrant Certificate);

         [ ] up to $333,333 of Shares may be purchased on the Exercise Date
         forty-five (45) days following the Conversion Date; and/or

         [ ] up to $333,333 of Shares may be purchased on the Exercise Date
         ninety (90) days following the Conversion Date

and (check the appropriate box(es)):

         [ ] tenders herewith payment for the purchase of ______________________
         shares of Common Stock; and/or

         [ ] elects to exercise Net Issue Exercise, as provided in Section 2(b)
         of the Warrant Agreement, for the purchase of ______________________
         shares of Common Stock.

In exercising these Warrants, the undersigned hereby confirms and acknowledges
that the shares of Common Stock to be issued upon conversion thereof are being
acquired solely for the account of the undersigned and not as a nominee for any
other party, or for investment, and that the undersigned will not offer, sell or
otherwise dispose of any such shares of Common Stock except under circumstances
that will not result in a violation of the Securities Act of 1933, as amended,
or any applicable state securities laws.

Please issue a certificate or certificates representing said shares of Common
Stock in the name of the undersigned or in such other name(s) as is specified
below:

                  --------------------------------------------

                  --------------------------------------------

                  --------------------------------------------

HOLDER:

-------------------------------------           --------------------------------
Signature of Holder                             Date

-------------------------------------           --------------------------------
Printed Name of Holder                          Amount of Payment<PAGE>

                                                                    EXHIBIT 10.3

                             CONVERTIBLE DEBENTURES
                             ----------------------
                             AND WARRANTS AGREEMENT
                             ----------------------

         THIS CONVERTIBLE DEBENTURE AND WARRANTS AGREEMENT (this "AGREEMENT"),
dated June 30, 2003, is entered into by and between US DATAWORKS, INC., a Nevada
corporation (the "COMPANY"), and Societe Financiere Privee, S.A., a corporation
of Switzerland ("SFP")

         WHEREAS, the Company desires to sell, and SFP agrees to purchase, one
or more debentures (each, a "DEBENTURE"). The Debenture will be subject to the
terms and conditions set forth herein and in the Debenture, substantially in the
form attached hereto as EXHIBIT A.

         WHEREAS, as an inducement to SFP to purchase the Debenture, the Company
wishes to grant SFP warrants (the "WARRANTS") entitling it to purchase common
stock of the Company ("COMMON STOCK") at the exercise price described herein and
in the Warrants, substantially in the form attached hereto as EXHIBIT B.

         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:

         "MATURITY DATE" means June 30, 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.

          "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").

                                      -1-
<PAGE>

         "SUBSIDIARY" 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. CONVERTIBLE DEBENTURE AND WARRANTS.

         2.1 CONVERTIBLE DEBENTURE.

                  (a) SFP shall purchase from the Company a debenture
("DEBENTURE"), substantially in the form attached hereto as EXHIBIT A. SFP shall
purchase the initial Debenture by paying the Company a purchase price (the
"PURCHASE PRICE") in cash of five hundred thousand dollars ($500,000) from the
proceeds of the sale of the Common Stock issued upon its conversion of 100,000
shares of its US Dataworks Series A Preferred Stock ("SERIES A STOCK") on May
20, 2003.

                  (b) All subsequent purchases of Debentures shall be initiated
by the Company, in its sole discretion, by giving written notice to SFP,
requesting SFP to purchase a Debenture pursuant to this Agreement (a "DEBENTURE
PURCHASE REQUEST"). SFP shall use its commercially reasonable best efforts to
secure the net proceeds required to satisfy the Company's Debenture Purchase
Request, PROVIDED HOWEVER, that (with the exception of the initial Debenture
purchase described in subsection (a), above) no more than sixty percent (60%) of
the net proceeds from SFP's sale of Series A Stock.

                  (c) The form of the Debenture will include:

                           (1) the Purchase Price shall be a twelve percent
(12%) discount to the face value of the Debenture (I.E., a Purchase Price of $88
purchases a Debenture with a face value of $100);

                           (2) the Debenture shall bear five percent (5%)
interest PER ANNUM ("INTEREST") payable semi-annually;

                           (3) SFP may convert all or any portion of the
outstanding principal balance (and all of any portion of accrued but unpaid
Interest) of the Debenture into Common Stock voluntarily at any time;

                           (4) on June 30, 2004 (the "MATURITY DATE"), SFP may
demand all of the outstanding principal balance and any accrued and unpaid
Interest be due and payable;

                           (5) the conversion price ("CONVERSION PRICE") shall
be the closing bid price for the Company's Common Stock as listed on the
American Stock Exchange (or any other national securities exchange upon which
the Company's common stock is primarily listed) on the trading day immediately
before the date of conversion; and

                           (6) the Company may redeem the Debenture at any time
without penalty.

         (d) The Company shall not issue Common Stock upon conversion of the
Debenture if such issuance, when added to the number of shares of Common Stock
issued by the Company upon exercise of the Warrants (if any), would equal or
exceed twenty percent (20%) of the total number of Common Stock issued and
outstanding on the date of such conversion without first obtaining the approval
of is voting shareholders to such issuance 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 conversion.

                                      -2-
<PAGE>

         2.2 WARRANTS. The Company shall grant warrants ("WARRANTS"),
substantially in the form attached hereto as Exhibit B, to SFP entitling the
holder to exercise such Warrants for the purchase of Common Stock. The Company
shall grant SFP one thousand (1,000) Warrants for every ten thousand dollars
($10,000) of Purchase Price paid to the Company. The exercise price ("EXERCISE
PRICE") for the Warrants shall be one hundred twenty-five percent (125%) of the
average closing bid price for the 10 trading days immediately prior to each
Closing, subject to the anti-dilution provisions set forth in the Debenture.

         2.3 CLOSING. The consummation of the initial Debenture purchase (the
"CLOSING") shall take place at the offices of the Company, 5301 Hollister Road,
Suite 250, Houston, TX 77040, on June 30, 2003, or at such other time and place
as the Company and SFP mutually agree in writing. All subsequent Debenture
purchases (each, a "CLOSING"; collectively, the "CLOSINGS") shall take place at
such the time and place as the Company and SFP mutually agree in writing. The
date on which each Closing takes place is referred to as a "CLOSING DATE." At
the Closing of each Debenture purchase, the Company shall deliver to SFP a duly
executed Debenture and a duly executed Warrants, with each to be registered in
the name of SFP or in the name of a nominee designated by SFP. All Purchase
Price proceeds shall be sent to the Company via wire transfer per the following
wire transfer instructions:

                           SOUTHWEST BANK OF TEXAS, N.A.
                           HOUSTON, TEXAS 77227
                           ABA #    113011258
                           FOR CREDIT TO:
                           US DATAWORKS, INC.
                           ACCOUNT #    0003260410

         3. REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF THE COMPANY. The
Company hereby represents and warrants to, and agrees with, SFP, 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 Debenture 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.

                                      -3-
<PAGE>

         3.3 VALID ISSUANCE. The Debenture, the Warrants and the shares of
Common Stock issuable upon conversion of the Debenture and exercise of the
Warrants (collectively, the "SECURITIES") have been duly authorized and, when
issued, sold and delivered to SFP 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 SFP set forth
Article 4 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 5.1 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 SFP and its 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 SFP and its professional representatives
reasonable access, during regular business hours and upon reasonable notice, to
the properties, books and records of the Company as SFP from time to time may
reasonably request.

         3.6 PRIVATE OFFERING

         3.7 . 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. SFP HEREBY REPRESENTS AND WARRANTS TO THE COMPANY THAT:

         4.1 PURCHASE ENTIRELY FOR OWN ACCOUNT. The Securities to be purchased
by SFP will be acquired for investment for SFP'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 SFP has no present intention of selling, granting any participation
in, or otherwise distributing the same. SFP 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 it.

                                      -4-
<PAGE>

         4.2 RELIANCE UPON SFP'S REPRESENTATIONS. SFP 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
SFP's representations set forth herein. SFP realizes that the basis for the
exemption may not be present if, notwithstanding such representations, SFP 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. SFP
has no such present intention.

         4.3 RECEIPT OF INFORMATION. SFP 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 SFP to rely thereon.

         4.4 INVESTMENT EXPERIENCE. SFP 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. SFP is an "accredited investor" as such term
is defined in Rule 501 of Regulation D promulgated under the Securities Act.

         4.6 RESTRICTED SECURITIES. SFP 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, SFP 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 AND PIGGYBACK REGISTRATION RIGHTS.

         5.1 LEGENDS. Each certificate or other document evidencing the
Securities or Common Stock issuable upon conversion of the Debenture or exercise
of the Warrant shall be endorsed with the legends set forth below, and the
Investor covenants that, except to the extent such restrictions are waived by
the Company, the Investor 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:

                  (a) The following legend under the Act:

         "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."

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

                                      -5-
<PAGE>

         5.2 PIGGYBACK REGISTRATION RIGHTS. Should the Company propose to
register any of its Common Stock under the Securities Act for any reason other
than a registration of securities with respect to its employee benefit plans,
the Company shall, at such time, promptly give SFP ten (10) days' advance
written notice of such registration ("REGISTRATION NOTICE"). Only in the
instance where SFP has given the Company written notice, within five (5) days of
its receipt of the Registration Notice, directing the Company NOT to register
all of its Common Stock issued from conversion of the Debentures and exercise of
the Warrants, the Company shall otherwise cause to be registered under the
Securities Act all of SFP's outstanding Common Stock issued from conversion of
the Debentures and exercise of the Warrants, subject to any adjustment or
cutbacks made by the Company's underwriter in its sole discretion. SFP agrees to
promptly return to the Company any shareholder questionnaire or other
documentation the Company may require SFP to submit as required under federal
and state securities laws. The Company's obligations pursuant to this Section
5.2 shall terminate on the earlier to occur of: (a) the second anniversary of
the date of issuance of the Common Stock upon conversion of the Debenture and
(b) such time when all Common Stock held by SFP may be sold pursuant to Rule 144
under the Securities Act during any three (3) month period.

         6. INDEMNIFICATION.

         6.1 INDEMNIFICATION OF SFP. The Company agrees to indemnify and hold
harmless SFP (and each person, if any, who controls SFP within the meaning of
section 15 of the Securities Act) from and against any losses, claims, damages
or liabilities to which SFP (or such person, if any, who controls SFP within the
meaning of section 15 of the Securities Act) 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 Debentures
and the Warrants, or (ii) the material breach of any representation, warranty or
covenant of this Agreement, the Debentures and the Warrants. The Company will
reimburse SFP (and each person, if any, who controls SFP within the meaning of
section 15 of the Securities Act) 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 any Investor to comply with its
representations, warranties, covenants and agreements contained in this
Agreement.

         6.2 INDEMNIFICATION OF THE COMPANY. The Investor 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
Debentures and the Warrants. The Investor 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 the Investor 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.

         7. MISCELLANEOUS.

         7.1 REASONABLE EFFORTS; OTHER ACTIONS. Subject to the terms and
conditions herein provided and applicable law, the Company and SFP 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-
<PAGE>

         7.2 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 June 30, 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.

         7.3 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 SFP 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.

         7.4 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):

<TABLE>
<CAPTION>

       <S>               <C>                           <C>          <C>
       If to the         US Dataworks, Inc.            If to SFP:   Societe Financiere Privee
       Company:          5301 Hollister Road                        3, Rue Maurice
                         Suite 250                                  CH-1204 Geneve
                         Houston, Texas  77040                      ATTN : Riccardo Mortara
                         ATTN:  Charles Ramey                       Fax : (41) 22.818.31.00
                         Fax:    (713) 934-8192                     Tel. : (41) 22.818.31.31
                         Tel.:   (713) 934-3854                     email : mortara@sfseujet.com

       With a copy to:  Pillsbury Winthrop LLP         With a       Bridgewater Capital Corporation
                        2550 Hanover Street            copy to:     610 Newport Center Drive, Suite 830 Newport
                        Palo Alto, CA 94304                         Beach, CA 92660
                        ATTN:  John J. Figone, Esq.                 ATTN: Urban Smedeby, Jack Thomsen
                        Fax:   (650) 233-4545                       Fax:   (949) 729-4667
                        Tel.:   (650) 233-4613                      Tel.:   (949) 729-4666

</TABLE>

                                      -7-
<PAGE>

         7.5 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.

         7.6 AMENDMENTS AND WAIVERS. This Agreement may be amended or modified
only by a written instrument signed by the Company and SFP 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.

         7.7 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.

         7.8 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. If
any provision in this Agreement directly conflicts with any provision in the
Debenture, Security Agreement or Warrants, the provision in this Agreement will
control, unless the context clearly indicates the parties intended the other
provision to control.

         7.9 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.

         7.10 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

         7.11 FINDER'S FEE. A finder's fee equal to four percent (4%) of the
Purchase Price of each Debenture purchased by SFP shall be paid by the Company
to Bridgewater Capital Corporation, a California corporation ("BRIDGEWATER"), in
common stock valued at the closing price of the trading day immediately before
the corresponding Closing Date. The common stock issued to finder's fee shall be
paid in not less than three (3) business days from the Company's receipt of the
Purchase Price proceeds from SFP.

                                      -8-
<PAGE>

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

   COMPANY                                    SFP
   -------                                    ---

   US DATAWORKS, INC.                         SOCIETE FINANCIERE PRIVEE, S.A.

   By:________________________               By:_______________________

   Name:_____________________                Name:_____________________

   Title:______________________              Title:_____________________

                                             Societe Financiere Privee
                                             3, Rue Maurice
                                             CH-1204 Geneve
                                             Fax : (41) 22.818.31.00
                                             Tel. : (41) 22.818.31.31
                                             email : mortara@sfseujet.com

                                      -9-
<PAGE>

                                    EXHIBIT A
                                    ---------

                                FORM OF DEBENTURE

<PAGE>

                                    EXHIBIT B
                                    ---------

                                 FORM OF WARRANT

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