Document:

exv10w4

 

Exhibit 10.4

November 13, 2007

Highbridge International LLC

c/o Highbridge Capital Management, LLC

9 West 57th Street, 27th Floor

New York, New York 10019

Attention: Ari J. Storch

                 Adam J. Chill

Facsimile: (212) 751-0755

Castlerigg Master Investments Ltd.

c/o Sandell Asset Management

40 West 57th St

26th Floor

New York, NY 10019

Attention: Cem Hacioglu

                 Matthew Pliskin

Facsimile: (212) 603-5710

Cranshire Capital, L.P.

3100 Dundee Road, Suite 703

Northbrook, IL 60062

Attention: Mitchell P. Kopin

Facsimile: (847) 562-9031

     RE: US Dataworks, Inc. — Senior Secured Convertible Notes

Gentlemen/Ladies,

     Pursuant to that certain Securities Purchase Agreement, dated as of November 13, 2007, by and
among US Dataworks, Inc., a Nevada corporation (the “Company”) and the investors signatory thereto
(the “Securities Purchase Agreement”), the Company has issued to you (the “Investors”) a Senior
Secured Convertible Notes in aggregate principal amount of $4,000,000 (the “Notes”). Terms not
defined in this letter agreement have the meaning given to them in the Securities Purchase
Agreement. As a condition to your extending credit to the Company pursuant to the Note, Charles E.
Ramey, a natural person and John L. Nicholson, a natural person (each, individually, a
“Shareholder” and collectively the “Shareholders”), for good and valuable consideration, jointly
and severally agree with the Investors as follows:

     1. At any time after August 13, 2008, each Investor may individually require one or more of
the Shareholders to purchase all or any portion of such Investor’s Note that remains outstanding
(the “Put”) for a purchase price equal to the outstanding principal amount of all of the applicable
part of the

1 Sugar Creek Center Blvd., 5th Floor, Sugar Land Texas 77478

tel.: (281) 504-8100, fax: (281) 504-8101

 

 

Note subject to the Put plus any accrued interest, late charges and other amounts due and payable
thereon (the “Purchase Price”).

     2. At any time on or after the delivery of a Redemption Notice (as defined in the Notes) to
the Company, an Investor may deliver a written notice to the Shareholders, which notice must (x)
specify that such Investor has elected to effect any redemption pursuant to such Investor’s Note
and, if the Company fails (or has failed) to pay the applicable Redemption Price (as defined in the
Notes) on the applicable date such Redemption Price is due pursuant to Section 11 of such
Investor’s Note, that such Investor has elected to exercise the Put, (y) set forth the applicable
Redemption Date (as defined in the Notes) and the proposed closing date, which is not earlier than
the sixth (6th) Trading Day (as defined in the Notes) immediately following the Redemption Date nor
later than the twentieth (20th) Trading Day immediately following the Redemption Date (the
“Proposed Put Closing Date”) and (z) set forth the outstanding principal amount of such Investor’s
Note with accrued interest as of such Proposed Put Closing Date. Such notice shall be in writing
and may be personally delivered, sent by overnight courier or sent by United States mail and shall
be deemed to have been given upon receipt. For the purposes hereof, the address and facsimile line
transmission number of the Shareholders shall be: 1 Sugar Creek Business Center Blvd., Fifth
Floor, Sugar Land, Texas 77478; fax: (281) 504-8101. If the Company fails to consummate such
Redemption on such Redemption Date, such Investor may, by written notice to the Stockholders on or
after the fifth (5th) Trading Day immediately following such Redemption Date, require the
Stockholders to consummate the Put on (the “Put Closing Date”) either (x) the Proposed Put Closing
Date or (y) such other Trading Day that is not earlier than the sixth (6th) Trading Day immediately
following the Redemption Date nor later than the twentieth (20th) Trading Day immediately following
the Redemption Date, in either case, as specified in such notice to the Stockholders. 

     3. On the Put Closing Date, an Investor exercising the Put shall deliver the such Investor’s
original Note and shall assign such Note to the Shareholders as is and without recourse and such
Investor shall warrant that such Investor’s Note is assigned free and clear of any liens or
encumbrances created by or through such Investor. In exchange for such delivery and assignment,
the Shareholders shall pay the Purchase Price to such Investor in lawful money of the United States
of America by wire transfer of immediately available funds to the account specified such Investor.

     4. The right to exercise the Put shall not in any way be limited by any event or circumstance
(other than the payment in full of the Notes) affecting the Company or whether or not the Company
is in compliance with its obligations under the Note.

     5. Each Shareholder hereby represents and warrants to the Investors and the Company as
follows:

          (a) Such Shareholder has the legal capacity and right to execute, deliver, enter into,
consummate and perform this letter agreement.

          (b) Such Shareholder is an “accredited investor” (as that term is defined in Rule 501 of
Regulation D promulgated under the Securities Act of 1933, as amended (the “1933 Act”) and he is
acquiring the interest that may arise under the Put for his own account and not with a view to, or
for sale in connection with, any distribution.

          (c) Such Shareholder understands that, except as provided in the Registration Rights
Agreement, the Notes have not been and is not being registered under the 1933 Act or any state

 

 

securities laws, and may not be offered for sale, sold, assigned or transferred unless subsequently
registered thereunder or an exemption from such registration is available.

          (d) Such Shareholder has all requisite power and authority to execute, deliver and perform his
or her obligations under this letter agreement. This letter agreement has been duly and validly
authorized, executed and delivered on behalf of such Shareholder and shall constitute the legal,
valid and binding obligation of such Shareholder, enforceable against him or her in accordance with
its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance, and any other laws of general application affecting enforcement of
creditors’ rights generally, or (b) as limited by laws relating to the availability of specific
performance, injunctive relief, or other equitable remedies.

          (e) The execution and delivery by such Shareholder of this letter agreement do not and will
not violate or conflict with any law applicable to such Shareholder, any order or judgment of any
court or other agency of government applicable to such Shareholder or any of such Shareholder’s
assets or any material contractual restriction binding on or affecting such Shareholder or any of
his assets.

          (f) There is no action, suit, proceeding, judgment, claim or investigation pending, or to the
knowledge of such Shareholder, threatened against such Shareholder, which could reasonably be
expected in any manner to challenge or seek to prevent, enjoin, alter or materially delay any of
the transactions contemplated by this letter agreement.

          (g) No authorization, consent, approval or other order of, or declaration to or filing with,
any governmental agency or body or other person is required for the valid authorization, execution,
delivery and performance by such Shareholder of this letter agreement and the consummation of the
transactions contemplated thereby.

          (h) Such Shareholder (i) is a sophisticated person with respect to the sale of the Notes, (ii)
has adequate information concerning the business and financial condition of the Company to make an
informed decision regarding the purchase of the Notes; and (iii) has independently and without
reliance upon the Investors, and based on such information as such Shareholder has deemed
appropriate, made its own analysis and decision to enter into this letter agreement. Such
Shareholder acknowledges that the Investors have not given Shareholder any investment advice,
credit information or opinion on whether the purchase of the Notes.

          (i) Such Shareholder will purchase the Notes solely for his own account and not with a view to
the distribution or resale of the Notes or his or her rights thereunder except pursuant to a
registration statement declared effective under, or an exemption from the registration requirements
of, the 1933 Act.

          (j) Such Shareholder understands that the Notes are being offered and sold to him or her in
reliance on specific exemptions from the registration requirements of United States federal and
state securities laws.

          (k) Such Shareholder understands that the Notes shall bear the legends set forth in Section
2(g) of the Securities Purchase Agreement and such legends shall not be removed except in
accordance with Section 2(g) of the Securities Purchase Agreement.

 

 

          (l) Such Shareholder is not purchasing the Notes as a result of any advertisement, article,
notice or other communication regarding the Notes published in any newspaper, magazine or similar
media or broadcast over television or radio or presented at any seminar or any other general
solicitation or general advertisement.

          (m) Such Shareholder has not taken any action that would give rise to any claim by any person
for brokerage commissions, finder’s fees or similar payments relating to this letter agreement or
the transactions contemplated hereby.

          (n) Such Shareholder has not, and to his knowledge no one acting on his or her behalf, has
taken, directly or indirectly, any action designed to cause or to result in the stabilization or
manipulation of the price of any security of the Company.

     6. THIS LETTER AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES. EACH PARTY AGREES THAT ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING IN ANY WAY TO THIS AGREEMENT SHALL BE BROUGHT IN A U.S.
FEDERAL OR STATE COURT OF COMPETENT JURISDICTION SITTING IN THE COUNTY, CITY, AND STATE OF NEW
YORK. EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY CONSENTS TO THE JURISDICTION OF EACH COURT
AND HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY DEFENSE OF AN INCONVENIENT FORUM OR A LACK OF
PERSONAL JURISDICTION TO THE MAINTENANCE OF ANY ACTION OR PROCEEDING AND ANY RIGHT OF JURISDICTION
OR VENUE ON ACCOUNT OF THE PLACE OF RESIDENCE OR DOMICILE OF ANY PARTY HERETO. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE
ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY.

     7. This letter agreement supersedes all other prior oral or written agreements among the
Investors, the Shareholders, their affiliates and Persons acting on their behalf with respect to
the matters discussed herein, and this letter agreement and the instruments referenced herein
contain the entire understanding of the parties with respect to the matters covered herein and
therein and, except as specifically set forth herein or therein, neither the Investors nor
Shareholders makes any representation, warranty, covenant or undertaking with respect to such
matters. This letter agreement may not be amended other than by a written instrument executed and
delivered by each party hereto. No provision hereof may be waived other than by an instrument in
writing signed by the party against whom enforcement is sought.

     8. If any provision of this letter agreement is prohibited by law or otherwise determined to
be invalid or unenforceable by a court of competent jurisdiction, the provision that would
otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest
extent that it would be valid and enforceable, and the invalidity or unenforceability of such
provision shall not affect the validity of the remaining provisions of this letter agreement so
long as

 

 

this letter agreement as so modified continues to express, without material change, the
original intentions of the parties as to the subject matter hereof and the prohibited nature,
invalidity or unenforceability of the provision(s) in question does not substantially impair the
respective expectations or reciprocal obligations of the parties or the practical realization of
the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good
faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid
provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or
unenforceable provision(s).

     9. This letter agreement is intended for the benefit of the parties hereto and their
respective permitted successors and assigns, and is not for the benefit of, nor may any provision
hereof be enforced by, any other person.

     10. Each party shall use its reasonable best efforts to do and perform, or cause to be done
and performed, all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as any other party may reasonably request in
order to carry out the intent and accomplish the purposes of this letter agreement and the
consummation of the transactions contemplated hereby.

     11. Each party agrees that, except as otherwise compelled by law, court order or by a
competent regulator, it will not issue any reports, statements or releases, in each case relating
to this letter agreement or the transactions contemplated hereby, without the prior written consent
of the other party hereto. Notwithstanding anything to the contrary set forth herein, any party
and such representative of each party may disclose to any and all persons, without limitation of
any kind, the tax treatment and tax structure of the transactions contemplated by this letter
agreement, and all materials of any kind (including opinions or other tax analyses) related to such
tax treatment and tax structure.

     12. This letter agreement may be executed in one or more counterparts, each of which shall be
deemed an original and all of which, taken together shall constitute one and the same letter
agreement.

[Signature Page Follows]

 

 

     Please indicate your agreement with the above by signing and returning a copy of this letter
agreement.

	 	 	 	 	 
	 

	 	/s/ CHARLES E. RAMEY	 	 
	 

	 	 	 	 
	 

	 	CHARLES E. RAMEY
	 	 
	 
	 	 	 	 
	 

	 	/s/ JOHN L. NICHOLSON	 	 
	 

	 	 	 	 
	 

	 	JOHN L. NICHOLSON	 	 

	 	 	 	 	 
	Agreed and accepted 
this 13th of November, 2007 by:

 	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	HIGHBRIDGE INTERNATIONAL LLC	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Scott M. Wallace
 
	 	 
	 

	 	Name:

Title:
	 	Scott M. Wallace

Senior Vice President
	 	 
	 
	 	 	 	 	 	 
	CASTLERIGG MASTER INVESTMENTS LTD.	 	 
	 
	 	 	 	 	 	 
	By:	 	Sandell Asset Management Corp.	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Patrick T. Burke
 
	 	 
	 

	 	Name:
	 	Patrick T. Burke	 	 
	 

	 	Title:
	 	Senior Managing Director	 	 

 

 

	 	 	 	 	 	 	 
	Cranshire Capital, L.P.	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Lawrence A. Prosser
 

Name: Lawrence A. Prosser	 	 
	 

	 	Title:
	 	CFO — Downsview Capital, Inc.exv10w5

 

Exhibit 10.5

PUT GRANTOR FEE AGREEMENT

This Agreement, made and entered into this 13th day of November, 2007, by and between US
Dataworks, Inc., a Nevada corporation (the “Company”) Charles E. Ramey and John Nicholson, each an
individual and undersigned to this Agreement (each referred to as a “Put Grantor” and collectively
as the “Put Grantors”).

      WHEREAS, the Company and certain investors listed on the Schedule of Buyers, attached to that
certain Securities Purchase Agreement, dated October 31, 2007 (the “Securities Purchase
Agreement,” attached hereto as Exhibit A; such investors hereinafter referred to as
the “Buyers”) have entered into that certain Securities Purchase Agreement of even date
herewith pursuant to which Buyers will purchase a promissory note for Four Million Dollars
($4,000,000) (the “Note”) upon which interest shall accrue at the rate of approximately Ten Percent
(10%) per annum. A copy of the Note is attached hereto as Exhibit B;

      WHEREAS, as a condition to the Buyers’ obligation to purchase the Note under the Securities
Purchase Agreement, Buyers require that the Put Agreement (the “Put Agreement”), substantially in
the form of Exhibit C attached hereto, be executed by the Put Grantors and delivered to
such Buyers;

      WHEREAS, subject to the other terms and conditions herein contained, each of the Put Grantor
agrees to execute and deliver the Put Agreement in connection with the Securities Purchase
Agreement.

NOW THEREFORE

Section 1. Put Grantor Fee Amount. In consideration of the Put Grantors’ execution and
delivery of the Put Agreement, the Company agrees to pay a fee (hereinafter the “Put Grantor Fee”)
to be shared equally between the Put Grantors. The Put Grantor Fee shall be calculated as follows:
(i) two percent (2%) of the Note principal balance for the first six months of the Note’s term;
(ii) two percent (2%) of the Note principal balance for the next twelve months of the Note’s term;
and, (iii) two percent (2%) of the Note principal balance for the remaining eighteen months of the
Note’s term. The Put Grantor Fee shall accrue until that certain
date (the “Payment Date”) it
shall become due and payable, the earliest of: (i) an occurrence of a Fundamental Transaction (as
defined in the Securities Purchase Agreement) involving the Company; (ii) the demand for payment is
made by the Buyers, in accordance with the terms of the Note; or, (iii) the Note’s maturity date.
On the Payment Date the Company shall pay the Put Grantor the Put Grantor Fee in cash. This
section nothwithstanding,the Put Grantor Fee may only be paid after the complete repayment of the
Note in accordance with its terms.

Section 2. Duty to Satisfy the Note; Indemnity. The Company hereby irrevocably and
unconditionally agrees and undertakes to (i) take any action that is commercially reasonable so as
(a) to satisfy the terms and conditions of the Note and to avoid any breach therein, and (b) avoid
the occurrence of any Material Adverse Effect upon the Company which would cause the

US Dataworks, Inc.

Put Grantor Fee Agreement

November 14, 2007

-1-

 

Buyers to accrue the right to pursue the remedies available under the Put Agreement; and, (ii)
indemnify and hold harmless the Put Grantor against and from all costs, losses, damages, actions,
proceedings, claims, demands, liabilities, charges and expenses of whatsoever nature and howsoever
arising (hereinafter, “Claims”) that the Put Grantor may incur, suffer or sustain or have imposed
on the Put Grantor by reason of, arising in any way out of or in relation to the Note or the Put
Agreement, but excluding any Claims resulting from either or both Put Grantors gross negligence or
willful misconduct and shall pay to the Put Grantor immediately upon first demand of the Put
Grantor such sum(s) as the Put Grantor certifies to have paid to                      arising from Put
Grantor’s litigation hereunder with proof of payment (any such certificate being conclusive and
binding on the parties hereto). The Company shall provide the Put Grantor with written
notification of any potential breach or default under the Note or any other event or action that
may result in such Put Grantor seeking indemnification under this Section 2.

Section 3. Consent to Jurisdiction and Service Of Process. The Company consents to the
jurisdiction of any court of the State of Texas (for Mr. Ramey) or California (for Mr. Nicholson)
and of any federal court located in the State of Texas (for Mr. Ramey) or California (for Mr.
Nicholson). The Company waives personal service of any summons, complaint or other process in
connection with any such action or proceeding and agrees that service thereof may be made, as the
Put Grantor may elect, by certified mail directed to the Company at the address provided in the
space below, or, in the alternative, in any other form or manner permitted by law.

Section 4. Governing Law. THIS PUT GRANTOR FEE AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEVADA APPLICABLE TO
CONTRACTS MADE AND TO BE PERFORMED ENTIRELY THEREIN, WITHOUT GIVING EFFECT TO THE RULES OF
CONFLICTS OF LAW.

Section 5. Conformity With Law. All agreements between the Put Grantor and Company are
hereby expressly limited so that in no contingency or event whatsoever, whether by reason of
deferment or acceleration of the maturity of this Put Fee Agreement or otherwise, shall the rate of
interest hereunder exceed the maximum rate permissible under applicable law. If, from any
circumstances whatsoever, the rate of interest resulting from the payment and/or accrual of any
amount of interest hereunder, at any time that payment of interest is due and/or at any time that
interest is accrued, shall exceed the limits prescribed by such applicable law, then payment and/or
accrual of such interest shall be reduced to that resulting from the maximum rate of interest
permissible under such applicable law. This provision shall never be superseded or waived.

Section 6. Severability. Every provision hereof is intended to be several. If any
provision of this Put Fee Agreement is determined by a court of competent jurisdiction to be
illegal, invalid or unenforceable, such illegality, invalidity or unenforceability shall not affect
the other provisions hereof, which shall remain binding and enforceable.

Section 7. Waiver; Amendment. The Company hereby waives presentment, demand, protest and
notices of protest, demand, dishonor and nonpayment. Any provision of this Put Fee

US Dataworks, Inc.

Put Grantor Fee Agreement

November 14, 2007

-2-

 

Agreement may be amended, waived or modified only upon the written consent of the parties hereto.

Section 8. Successors and Assigns. All the terms and provisions of this Put Fee Agreement
shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

Section 9. Assignability. The Company’s obligations hereunder are nontransferable and
nonassignable without the prior written consent of Put Grantor.

Section 10. Entire Agreement. This Put Fee Agreement and the Put Agreement (as well as
Securities Purchase Agreement and any other Documents attached thereto or described therein)
represent 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.

Section 11. Facsimile Execution. Any signature delivered by facsimile transmission shall
create a valid and binding obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile signature page were an original
thereof.

Section 12. Legal Representation. Company and Put Grantor, respectively, agree and
represent that each party has been represented by such party’s legal counsel with regard to all
aspects of this Put Fee Agreement, or if such party is acting without legal counsel, that such
party has had adequate opportunity and has been encouraged to seek the advice of such party’s legal
counsel prior to the execution of this Put Fee Agreement.

      IN WITNESS WHEREOF, the undersigneds have caused this Put Fee Agreement to be duly executed by
their respective authorized signatories as of the date first indicated above.

	 	 	 	 	 
	PUT GRANTOR

	 	US DATAWORKS, INC.
	 	 
	 
	 	 	 	 
	/s/ Charles E. Ramey

	 	/s/ John T. McLaughlin	 	 
	 

	 	 	 	 
	Charles E. Ramey

	 	Its authorized representative	 	 
	 

	 	John T. McLaughlin	 	 
	 
	 	 	 	 
	 
	 

	 	 	 	 
	Address for Notice
	 	Title: Chief Accounting Officer	 	 

US Dataworks, Inc.

Put Grantor Fee Agreement

November 14, 2007

-3-

 

	 	 	 	 	 
	/s/ John Nicholson, M.D.
 

	 	Address for Notice:
	 	 
	John Nicholson, M.D.
	 	 	 	 
	 

	 	1 Sugar Creek Business Center Blvd.	 	 
	 

	 	Fifth Floor	 	 
	 

	 	Sugar Land, Texas 77478	 	 
	 

Address for Notice

	 	Attn: General Counsel	 	 
	 
	 

	 	Tel.: (281) 504 8000	 	 

US Dataworks, Inc.

Put Grantor Fee Agreement

November 14, 2007

-4-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]