Document:

Exhibit 10.6

THIS NOTE AND THE COMMON SHARES  ISSUABLE UPON  CONVERSION OF THIS NOTE HAVE NOT
BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED,  OR ANY STATE
SECURITIES  LAWS.  THIS NOTE AND THE COMMON SHARES  ISSUABLE UPON  CONVERSION OF
THIS NOTE MAY NOT BE SOLD,  OFFERED  FOR SALE,  PLEDGED OR  HYPOTHECATED  IN THE
ABSENCE OF AN  EFFECTIVE  REGISTRATION  STATEMENT AS TO THIS NOTE UNDER SAID ACT
AND ANY APPLICABLE  STATE  SECURITIES  LAWS OR AN OPINION OF COUNSEL  REASONABLY
SATISFACTORY TO DYNTEK, INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

               AMENDED AND RESTATED SECURED CONVERTIBLE TERM NOTE

      FOR VALUE RECEIVED, DYNTEK, INC., a Delaware corporation (the "Borrower"),
hereby  promises to pay to LAURUS MASTER FUND,  LTD.,  c/o  Ironshore  Corporate
Services Ltd., P.O. Box 1234 G.T.,  Queensgate House, South Church Street, Grand
Cayman,  Cayman  Islands,  Fax:  345-949-9877  (the  "Holder") or its registered
assigns or  successors  in interest,  on order,  the sum of  SIXMILLION  DOLLARS
($6,000,000),  together with any accrued and unpaid interest hereon,  on January
30, 2007 (the "Maturity Date") if not sooner paid.

      Capitalized  terms used herein without  definition shall have the meanings
ascribed to such terms in that certain Securities Purchase Agreement dated as of
the date hereof between the Borrower and the Holder (the "Purchase Agreement").

The following terms shall apply to this Note:

                                    ARTICLE I
                             INTEREST & AMORTIZATION

      1.1 Interest Rate and Payment. (a) Subject to Sections 4.9 and 5.6 hereof,
interest  payable on this Note shall  accrue at a rate per annum (the  "Interest
Rate") equal to the "prime rate"  published in The Wall Street Journal from time
to time,  plus one (1%).  The prime rate shall be  increased or decreased as the
case may be for each  increase or decrease in the prime rate in an amount  equal
to such  increase or decrease in the prime rate;  each change to be effective as
of the day of the change in such rate.  Subject  to  adjustment  as set forth in
Section  1.1(b),  in no event shall the prime rate be less than percent  (4.00%)
subject to the  provisions of Section 1.2 as regards  Tranche B (as  hereinafter
defined),  interest shall be payable  monthly in arrears  commencing on April 1,
2004, and on the first day of each consecutive  calendar month thereafter (each,
a "Repayment Date"), and on the Maturity Date.

      1.1  (b) On the  last  business  day  of  each  month  hereafter  (each  a
"Determination  Date"), the Interest Rate shall be adjusted:  if (i) the Company
shall have  registered the shares of the Company's  common stock  underlying the
conversion  of  the  Note  and  that  certain  warrant  issued  to  Holder  on a
registration  statement  declared  effective  by the SEC,  and  (ii) the  volume
weighted average price of the Common Stock as reported by Bloomberg, L.P. on the
principal  market  for  the  ten  (10)  trading  days  immediately  preceding  a
Determination  Date exceeds the then applicable  Fixed  Conversion Price in such
percentages as outlined in the table below, the Interest Rate for the succeeding
calendar

<PAGE>

month  shall be  decreased  by fifty basis  points  (0.50%) for each twenty five
percent (25%)  incremental  increase above the Fixed Conversion Price as per the
following example:

--------------------------------------------------------------------------------
100% or less of Applicable Fixed
  Conversion Price                                   Interest  Rate
--------------------------------------------------------------------------------
125% of the applicable Fixed
  Conversion Price                                   Interest Rate minus 0.50%
--------------------------------------------------------------------------------
150% of the applicable Fixed
  Conversion Price                                   Interest Rate minus 1.0%
--------------------------------------------------------------------------------
175% of the applicable Fixed
  Conversion Price                                   Interest  Rate minus 1.5%
--------------------------------------------------------------------------------

      In no event shall the Interest Rate be less than zero (0.00%)

      1.2  Minimum  Monthly  Payments.  Amortizing  payments  of  the  aggregate
principal  amount  outstanding  under  this  Note at any  time  (the  "Principal
Amount") shall begin on as set forth below and shall recur on the first calendar
day of each succeeding  month specified below thereafter until the Maturity Date
(each,  an  "Amortization  Date").  For  the  purposes  of  the  calculation  of
principal, interest and fees due and owing hereunder, the Principal Amount shall
be divided into two tranches:  Tranche A (defined  below) and Tranche B (defined
below).  Subject to Section 3.4 below,  beginning  on August 1, 2004,  the first
Amortization  Date,  the Borrower  shall make monthly  payments to the Holder on
each Repayment Date occurring  thereafter  until the Maturity Date,  each in the
amount of  $116,667,  together  with any accrued and unpaid  interest to date on
such  portion  of  the  first  Three  Million  Five  Hundred   Thousand  Dollars
($3,500,000)  aggregate principal amount of this Note ("Tranche A") plus any and
all other  amounts  which are then owing  under  this Note with  respect to such
Tranche A but have not been paid (collectively, the "Tranche A Monthly Amount");
for the next Two Million Five Hundred  Thousand Dollars  ($2,500,000)  aggregate
principal  amount hereof , without  duplication  ("Tranche  B"),  interest shall
begin accruing on June 1, 2004 and shall be due and payable on each Amortization
Date until the Maturity  Date.  From and after  November 1, 2004 to the Maturity
Date, the Borrower  shall make monthly  payments to the Holder on each Repayment
Date,  each in the amount of  $83,333.33,  together  with any accrued and unpaid
interest to date on such portion of the Principal  Amount plus any and all other
amounts   which  are  then  owing  under  this  Note  but  have  not  been  paid
(collectively,  the "Tranche B Monthly  Amount").  Each of the Tranche A Monthly
Amount and the Tranche B Monthly Amount  (collectively,  the "Monthly  Amount"),
shall  be due  and  payable  by  the  Borrower  as set  forth  above,  and  only
satisfaction  of all  amounts  due to Holder  from  Borrower  under  each of the
Tranche A Monthly Amount and the Tranche B Monthly Amount, as applicable,  shall
be deemed to satisfy  payment in full of the  amounts  due Holder and payable by
Borrower on each  respective  Repayment  Date and  Amortization  Date under this
Note.

                                   ARTICLE II
                            BORROWER PAYMENT OPTIONS

      2.1 (a) Payment of Monthly Amount in Cash or Common Stock.  Subject to the
terms hereof,  the Borrower  shall have the sole option to determine  whether to
satisfy payment of the

                                      -2-
<PAGE>

Monthly  Amount  on each  Repayment  Date  either in cash or in shares of Common
Stock (as defined in the Purchase  Agreement),  or a combination  of both.  Each
month by the tenth (10th) day of such month,  the Borrower  shall deliver to the
Holder a written  irrevocable  notice in the form of Exhibit B  attached  hereto
electing to pay the Monthly  Amount payable on the next Repayment Date in either
cash or Common Stock,  or a  combination  of both (each,  a "Repayment  Election
Notice")  (the  date  by  which  such  notice  is  required  to be  given  being
hereinafter referred to as the "Notice Date"). If a Repayment Election Notice is
not  delivered to the Holder by the  applicable  Notice Date for such  Repayment
Date,  then the Monthly Amount due on such Repayment Date shall be paid in cash.
Any portion of the Monthly  Amount  paid in cash on a Repayment  Date,  shall be
paid to the Holder as an amount  equal to (x) 102% of the  principal  portion of
the Monthly Amount plus (y) any accrued and unpaid  interest in  satisfaction of
such  obligation.  If the Borrower repays all or a portion of the Monthly Amount
in shares of  Common  Stock,  the  number of such  shares to be issued  for such
Repayment Date shall be the number determined by dividing (x) the portion of the
Monthly Amount to be paid in shares of Common Stock, by (y) the Fixed Conversion
Price. For purposes hereof, the "Fixed Conversion Price" means $0.90 for Tranche
A (which has been determined on the date of this Note as an amount equal to 100%
of the average closing price for the five (5) trading days immediately  prior to
the date of this  Note)  and  $1.15  for  Tranche  B;  provided,  however,  that
notwithstanding anything contained in this Note, or in the Warrant issued to the
Holder in  connection  with the closing of the sale of this Note pursuant to the
terms of the Purchase Agreement,  the aggregate number of shares of Common Stock
to be issuable (i) under the Warrant and (ii) upon the  repayment or  conversion
of this Note,  including any warrant  coverage or other  increases  granted as a
result of delayed filing of any  registration  statement with the Securities and
Exchange Commission (the "Maximum Coverage") with respect to the distribution of
the shares of Common Stock acquired by Holder pursuant to subprovisions  (i) and
(ii) above,  shall be subject to a maximum limit such that the Maximum  Coverage
can not equal or exceed 20% of the number of shares of Common Stock  outstanding
on the date of this Note without obtaining the requisite shareholder approval.

      (b) Monthly  Amount Common Stock Payment  Guidelines.  Subject to Sections
2.1(a) and 2.2 hereof,  if the  Borrower  has elected to pay all or a portion of
the Monthly  Amount due on such Repayment Date in shares of Common Stock and the
closing  price of the  Common  Stock  as  reported  by  Bloomberg,  L.P.  on the
Principal  Market (as  defined in Section  4.7  hereof)  for any of the five (5)
trading days preceding the  applicable  Repayment Date was less than 115% of the
Fixed Conversion Price, then the Borrower shall pay in cash instead. Any part of
the Monthly Amount due on such Repayment Date that the Borrower did not elect to
pay in shares  of Common  Stock  shall be paid by the  Borrower  in cash on such
Repayment  Date. Any part of the Monthly Amount due on such Repayment Date which
the Borrower  elected to pay in shares of Common Stock but which must be paid in
cash (as a result of the closing price of the Common Stock on one or more of the
five (5) trading days preceding the applicable Repayment Date was less than 115%
of the Fixed  Conversion  Price) shall be paid within ten (10)  business days of
the applicable Repayment Date;

      2.2 No Effective  Registration.  Notwithstanding  anything to the contrary
herein,  the Borrower shall not repay any part of its  obligations to the Holder
hereunder  in Common  Stock if (i)  there  fails to exist an  effective  current
Registration  Statement  (as  defined  in  the  Registration  Rights  Agreement)
covering  the  shares of  Common  Stock to be  issued  in  connection  with such
payment, or (ii) an Event of Default hereunder exists and is continuing,  unless
such Event of Default is cured

                                      -3-
<PAGE>

within  any  applicable  cure  period or is  otherwise  waived in writing by the
Holder in whole or in part at the Holder's option.

      2.3 Optional  Prepayments in Common Stock.  Subject to Section 2.2 hereof,
if the average  closing  price of the Common  Stock on the  Principal  Market is
greater  than 115% of the Fixed  Conversion  Price for a period of at least five
(5) consecutive trading days, then the Borrower may, at its sole option, provide
the Holder written notice (a "Prepayment Call Notice")  requiring the conversion
at the  then  applicable  Fixed  Conversion  Price  of all or a  portion  of the
outstanding principal, interest and fees outstanding under this Note (subject to
compliance  with Section 2.3 and 3.2),  together  with  accrued  interest on the
amount being prepaid,  as of the date set forth in such  Prepayment  Call Notice
(the  "Prepayment  Call Date").  The Prepayment  Call Date shall be at least ten
(10) trading  days  following  the date of the  Prepayment  Call Notice.  On the
Prepayment  Call Date,  the Borrower  shall  deliver to the Holder  certificates
evidencing  the shares of Common Stock issued in  satisfaction  of the principal
and interest being prepaid.  Notwithstanding the foregoing, the Borrower's right
to issue shares of Common Stock in satisfaction  of its  obligations  under this
Note  shall be  subject  to the  limitation  that the number of shares of Common
Stock issued in connection  with any Prepayment Call Notice shall not exceed 25%
of the  aggregate  dollar  trading  volume of the Common  Stock for the ten (10)
trading days  immediately  preceding the Prepayment Call Date (as such volume is
reported by the Principal Market).  If the price of the Common Stock falls below
115% of the then applicable  Fixed  Conversion Price during the ten (10) trading
day period immediately  preceding the Prepayment Call Date, then the Holder will
then be required to convert  only such amount of the Note as shall equal  twenty
five percent (25%) of the  aggregate  dollar  trading  volume (as such volume is
reported  by the  Principal  Market)  for each day that  the  Common  Stock  has
exceeded 115% of the then applicable Fixed Conversion Price.

      The  Borrower  shall not be  permitted  to give the  Holder  more than one
Prepayment Call Notice under this Note during any 10-day period.

      Any  principal  amount  of this Note  which is  prepaid  pursuant  to this
Section  2.3 shall be deemed to  constitute  payments of  outstanding  principal
applying to Monthly Amounts for the remaining  Repayment Dates in  chronological
order.

      2.4 Optional  Redemption  in Cash.  The  Borrower  will have the option of
prepaying  this Note  ("Optional  Redemption")  by paying to the Holder a sum of
money  equal to one hundred two percent  (102%),  if there  exists an  effective
current Registration Statement (as defined in the Registration Rights Agreement)
covering  the  shares of  Common  Stock to be  issued  in  connection  with such
payment,  otherwise one hundred four percent (104%),  of the principal amount of
this Note  together  with  accrued but unpaid  interest  thereon and any and all
other sums due,  accrued or payable to the Holder  arising under this Note,  the
Security  Agreement,  or any  Ancillary  Agreement  (as defined in the  Security
Agreement) (the  "Redemption  Amount")  outstanding on the day written notice of
redemption (the "Notice of  Redemption")  is given to the Holder.  The Notice of
Redemption shall specify the date for such Optional  Redemption (the "Redemption
Payment Date") which date shall be ten (10) days after the date of the Notice of
Redemption  (the  "Redemption  Period").  A Notice  of  Redemption  shall not be
effective  with  respect to any  portion of this Note for which the Holder has a
pending election to convert pursuant to Section 3.1, or for conversions  elected
to be made by the Holder  pursuant to Section 3.1 during the Redemption  Period.

                                      -4-
<PAGE>

The  Redemption  Amount  shall  be  determined  as if such  Holder's  conversion
elections  had been  completed  immediately  prior to the date of the  Notice of
Redemption.  On the Redemption  Payment Date, the Redemption Amount must be paid
in good  funds  to the  Holder.  In the  event  the  Borrower  fails  to pay the
Redemption  Amount on the Redemption  Payment Date, then such Redemption  Notice
will be null and void.

                                   ARTICLE III
                                CONVERSION RIGHTS

      3.1. Holder's  Conversion Rights. The Holder shall have the right, but not
the obligation,  to convert all or any portion of the then aggregate outstanding
principal amount of this Note,  together with interest and fees due hereon, into
shares of Common  Stock  subject to the terms and  conditions  set forth in this
Article III; provided,  however, that notwithstanding anything contained in this
Note, or in the Warrant  issued to the Holder in connection  with the closing of
the sale of this Note  pursuant  to the  terms of the  Purchase  Agreement,  the
aggregate  number of shares of Common Stock to be issuable (i) under the Warrant
and (ii) upon the repayment or  conversion  of this Note,  including any warrant
coverage  or other  increases  granted  as a result  of  delayed  filing  of any
registration statement with the Securities and Exchange Commission (the "Maximum
Coverage")  with  respect  to the  distribution  of the  shares of Common  Stock
acquired  by Holder  pursuant  to  subprovisions  (i) and (ii)  above,  shall be
subject  to a maximum  limit  such that the  Maximum  Coverage  can not equal or
exceed 20% of the number of shares of Common  Stock  outstanding  on the date of
this Note without obtaining the requisite shareholder  approval.  The Holder may
exercise  such  right  by  delivery  to the  Borrower  of a  written  notice  of
conversion  not  less  than  one (1) day  prior  to the  date  upon  which  such
conversion  shall occur. The date upon which such conversion shall occur is (the
"Conversion Date").

      3.2 Conversion  Limitation.  Notwithstanding  anything contained herein to
the contrary,  the Holder shall not be entitled to convert pursuant to the terms
of this Note an amount that would be convertible  into that number of Conversion
Shares which would exceed the difference  between the number of shares of Common
Stock  beneficially  owned by such Holder or issuable  upon exercise of warrants
held by such Holder and 4.99% of the  outstanding  shares of Common Stock of the
Borrower.  For the purposes of the immediately  preceding  sentence,  beneficial
ownership  shall be determined in accordance  with Section 13(d) of the Exchange
Act and Regulation  13d-3  thereunder.  The Holder may void the Conversion Share
limitation  described  in this  Section  3.2 upon 75 days  prior  notice  to the
Borrower or without any notice requirement upon an Event of Default.

      3.3  Mechanics  of Holder's  Conversion.  (a) In the event that the Holder
elects to convert this Note into Common  Stock,  the Holder shall give notice of
such  election by  delivering  an executed and  completed  notice of  conversion
("Notice of  Conversion")  to the Borrower and such Notice of  Conversion  shall
provide a  breakdown  in  reasonable  detail of the  Principal  Amount,  accrued
interest  and fees being  converted.  On each  Conversion  Date (as  hereinafter
defined) and in accordance with its Notice of Conversion,  the Holder shall make
the appropriate reduction to the Principal Amount,  accrued interest and fees as
entered in its records and shall provide  written notice thereof to the Borrower
within two (2) business  days after the  Conversion  Date.  Each date on which a
Notice of  Conversion  is delivered or  telecopied to the Borrower in accordance
with the provisions

                                      -5-
<PAGE>

hereof  shall be deemed a Conversion  Date (the  "Conversion  Date").  A form of
Notice of Conversion  to be employed by the Holder is annexed  hereto as Exhibit
A.

      (b) Pursuant to the terms of the Notice of  Conversion,  the Borrower will
issue  instructions  to the transfer agent  accompanied by an opinion of counsel
within  three (3)  business  day of the date of the  delivery to Borrower of the
Notice  of  Conversion  and shall  cause  the  transfer  agent to  transmit  the
certificates  representing the Conversion  Shares to the Holder by crediting the
account of the Holder's  designated broker with the Depository Trust Corporation
("DTC") through its Deposit  Withdrawal Agent Commission  ("DWAC") system within
three  (3)  business  days  after  receipt  by the  Borrower  of the  Notice  of
Conversion (the "Delivery  Date"). In the case of the exercise of the conversion
rights set forth herein the  conversion  privilege  shall be deemed to have been
exercised  and the  Conversion  Shares  issuable upon such  conversion  shall be
deemed to have been  issued  upon the date of  receipt  by the  Borrower  of the
Notice of  Conversion  and the Holder  shall be treated for all  purposes as the
record holder of such Common Stock  thereafter,  unless the Holder  provides the
Borrower written instructions to the contrary.

      3.4 Conversion Mechanics.

      (a) The number of shares of Common Stock to be issued upon each conversion
of this Note shall be  determined  by dividing that portion of the principal and
interest  and  fees  to be  converted,  if any,  by the  then  applicable  Fixed
Conversion  Price.  In the event of any  conversions  of  outstanding  principal
amount under this Note in part  pursuant to this Article III,  such  conversions
shall be  deemed to  constitute  conversions  of  outstanding  principal  amount
applying to Monthly Amounts for the remaining  Repayment Dates in  chronological
order.  The  Fixed  Conversion  Price  and  number  and kind of  shares or other
securities to be issued upon  conversion  is subject to adjustment  from time to
time upon the occurrence of certain events, as follows:

      A. Stock Splits, Combinations and Dividends. If the shares of Common Stock
are  subdivided or combined into a greater or smaller number of shares of Common
Stock,  or if a dividend is paid on the Common Stock in shares of Common  Stock,
the Fixed Conversion Price or the Conversion Price, as the case may be, shall be
proportionately  reduced in case of  subdivision  of shares or stock dividend or
proportionately  increased in the case of  combination  of shares,  in each such
case by the ratio which the total number of shares of Common  Stock  outstanding
immediately after such event bears to the total number of shares of Common Stock
outstanding immediately prior to such event.

      B.  During the period the  conversion  right  exists,  the  Borrower  will
reserve from its  authorized  and unissued  Common Stock a sufficient  number of
shares to provide for the issuance of Common Stock upon the full  conversion  of
this Note. The Borrower represents that upon issuance,  such shares will be duly
and validly issued, fully paid and non-assessable.  The Borrower agrees that its
issuance of this Note shall  constitute full authority to its officers,  agents,
and transfer agents who are charged with the duty of executing and issuing stock
certificates  to  execute  and issue the  necessary  certificates  for shares of
Common Stock upon the conversion of this Note.

      C. Share Issuances.  Subject to the provisions of this Section 3.4, if the
Borrower  shall at any time prior to the  conversion or repayment in full of the
Principal Amount issue any shares of

                                      -6-
<PAGE>

Common  Stock  to a person  other  than  the  Holder  (except  (i)  pursuant  to
Subsections  A  or B  above;  (ii)  pursuant  to  options,  warrants,  or  other
obligations  to issue  shares  outstanding  on the date  hereof,  including  the
Warrant  issued  pursuant to the Purchase  Agreement,  as disclosed to Holder in
writing or as disclosed in any Exchange Act Filings;  (iii)  pursuant to options
or other securities that may be issued under any employee incentive plan adopted
by the Borrower;  (iv) issuance of any securities  within five (5) business days
of the date hereof,  in an offering  registered with the Securities and Exchange
Commission;  (v)  issuance  of  any  securities  pursuant  to a  joint  venture,
technology  licensing or research and  development  arrangements  or pursuant to
arrangements for the development,  manufacture,  distribution, marketing or sale
of Borrower's (or its subsidiaries')  products or services; (vi) issuance of any
securities pursuant to a merger, consolidation, sale of all or substantially all
of the assets,  sale or exchange of capital stock or other similar  transaction;
or (vii) issuance of any  securities,  without  regard to the purpose  therefor,
during the 30-day period  succeeding the date of this Note) for a  consideration
per share (the "Offer Price") less than the Fixed  Conversion Price in effect at
the time of such issuance,  then the Fixed Conversion Price shall be immediately
reset pursuant to the formula below.  For purposes  hereof,  the issuance of any
security of the Borrower  convertible  into or exercisable or  exchangeable  for
Common Stock shall result in an adjustment to the Fixed  Conversion Price at the
time of issuance of such securities.

      If the  Corporation  issues any additional  shares pursuant to Section 3.4
above,  then and  thereafter  successively  upon  each  such  issue,  the  Fixed
Conversion  Price shall be adjusted by  multiplying  the then  applicable  Fixed
Conversion Price by the following fraction:

      ----------------------------------------
                     A + B
      ----------------------------------------
      (A + B) + [((C - D) x B) / C]
      ----------------------------------------

            A = Actual shares outstanding prior to such offering

            B = Actual shares sold in the offering

            C = Fixed Conversion Price

            D = Offering price

      D.  Reclassification,   etc.  If  the  Borrower  at  any  time  shall,  by
reclassification  or  otherwise,  change  the  Common  Stock  into the same or a
different  number of  securities  of any class or classes,  this Note, as to the
unpaid Principal Amount and accrued interest thereon, shall thereafter be deemed
to evidence the right to purchase an adjusted number of such securities and kind
of  securities  as would have been  issuable  as the result of such  change with
respect to the Common Stock immediately prior to such  reclassification or other
change.

      3.5 Issuance of New Note. Upon any partial  conversion of this Note, a new
Note  containing the same date and provisions of this Note shall, at the request
of the Holder, be issued by the Borrower to the Holder for the principal balance
of this Note and  interest  which  shall not have been  converted  or paid.  The
Borrower will pay no costs,  fees or any other  consideration  to the Holder for
the production and issuance of a new Note.

                                      -7-
<PAGE>

                                   ARTICLE IV
                                EVENTS OF DEFAULT

      If an Event of Default (as defined  below) occurs and is  continuing,  the
Borrower's rights under Sections 2.1, 2.3 and 2.4 shall immediately cease and be
of no further effect until such time as the Event of Default has been cured,  or
has been waived by the Holder.  Upon the occurrence and  continuance of an Event
of Default beyond any applicable  grace period,  the Holder may make all sums of
principal,  interest and other fees then  remaining  unpaid hereon and all other
amounts  payable  hereunder  due and payable  within five (5) days after written
notice  from  Holder  to  Borrower  (each  occurrence  being a  "Default  Notice
Period").  In the event of such  acceleration,  the  amount due and owing to the
Holder shall be one hundred twenty percent (120%) of the  outstanding  principal
amount of the Note (plus accrued and unpaid interest and fees, if any).If,  with
respect  to any Event of  Default  other  than a payment  default  described  in
Section 4.1 below, within the Default Notice Period the Borrower cures the Event
of  Default,  the Event of  Default  will be  deemed to no longer  exist and any
rights and remedies of Holder  pertaining to such Event of Default will be of no
further force or effect.

      The occurrence of any of the following events,  shall constitute an "Event
of Default":

      4.1 Failure to Pay  Principal,  Interest or other Fees. the Borrower fails
to pay when due any  installment of principal,  interest or other fees hereon in
accordance herewith.

      4.2 Breach of  Covenant.  The Borrower  breaches any material  covenant or
other term or condition  of this Note or the Purchase  Agreement in any material
respect and such breach,  if subject to cure,  continues  for a period of thirty
(30) days after the occurrence thereof.

      4.3 Breach of Representations and Warranties.  Any material representation
or warranty of the Borrower made herein,  in the Purchase  Agreement,  or in any
Related  Document (as defined in the  Purchase  Agreement)  shall be  materially
false or  misleading  and shall not be cured for a period of  fifteen  (15) days
after the occurrence thereof.

      4.4 Receiver or Trustee.  The Borrower  shall make an  assignment  for the
benefit of creditors,  or apply for or consent to the  appointment of a receiver
or trustee for it or for a substantial part of its property or business; or such
a receiver or trustee  shall  otherwise be  appointed.

      4.5 Judgments.  Any money judgment, writ or similar final process shall be
entered or filed against the Borrower or any of its property or other assets for
more than  $250,000,  and shall  remain  unvacated,  unbonded or unstayed  for a
period of ninety (90) days.

      4.6  Bankruptcy.  Bankruptcy,  insolvency,  reorganization  or liquidation
proceedings  or other  proceedings or relief under any bankruptcy law or any law
for the relief of debtors shall be instituted by or against the Borrower, and in
the event  involuntarily  instituted against the Borrower shall not be dismissed
within sixty (60) days thereafter.

      4.7 Stop Trade.  An SEC stop trade order or the Principal  Market  trading
suspension of the Common Stock shall be in effect for five (5) consecutive  days
or five (5 )days during a period of ten (10) consecutive days,  excluding in all
cases a suspension of all trading on the Principal

                                      -8-
<PAGE>

Market; provided, that this shall only be an Event of Default to the extent that
the  Borrower  shall not have been able to cure such trading  suspension  within
thirty  (30) days of the  notice  thereof  or list the  Common  Stock on another
trading market identified herein as a Principal Market within sixty (60) days of
such notice.  The "Principal Market" for the Common Stock shall include the NASD
OTC Bulletin  Board,  NASDAQ  SmallCap  Market,  NASDAQ  National Market System,
American Stock Exchange,  or New York Stock Exchange, or any securities exchange
or other  securities  market on which the Common  Stock is then being  listed or
traded (whichever of the foregoing is at the time the principal trading exchange
or market for the Common Stock).

      4.8 Failure to Deliver  Common Stock or  Replacement  Note. The Borrower's
failure to timely deliver Common Stock to the Holder pursuant to and in the form
required by this Note if such failure to timely  deliver  Common Stock shall not
be cured within two (2) Business  Days, or if required,  a  replacement  Note if
such  failure  to  deliver  a  replacement  Note is not cured  within  seven (7)
Business Days.

      4.9 Default Under Related  Agreements.  The occurrence and  continuance of
any Event of Default as defined in the Related Agreements.

      4.10 Payment  Grace Period.  The Borrower  shall have a three (3) business
day grace period to pay any monetary amounts due under this Note or the Purchase
Agreement or any Related  Document,  after which grace period a default interest
rate of five  percent  (5%) per annum above the then  applicable  Interest  Rate
hereunder shall apply to the monetary amounts due.

                           DEFAULT RELATED PROVISIONS

      4.11 Conversion Privileges. The conversion privileges set forth in Article
III shall remain in full force and effect  immediately  from the date hereof and
until this Note is paid in full.

      4.12  Cumulative   Remedies.   The  remedies  under  this  Note  shall  be
cumulative.

                                    ARTICLE V
                                  MISCELLANEOUS

      5.1 Failure or Indulgence  Not Waiver.  No failure or delay on the part of
the Holder  hereof in the exercise of any power,  right or  privilege  hereunder
shall operate as a waiver thereof,  nor shall any single or partial  exercise of
any such power, right or privilege preclude other or further exercise thereof or
of any other  right,  power or  privilege.  All  rights  and  remedies  existing
hereunder  are  cumulative  to, and not  exclusive  of,  any rights or  remedies
otherwise available.

      5.2 Notices.  Any notice herein required or permitted to be given shall be
in writing and shall be deemed  effectively given: (a) upon personal delivery to
the party notified, (b) when sent by confirmed telex or facsimile if sent during
normal  business hours of the recipient,  if not, then on the next business day,
(c) five days after having been sent by  registered  or certified  mail,  return
receipt  requested,  postage  prepaid,  or (d)  one  day  after  deposit  with a
nationally  recognized  overnight  courier,  specifying next day delivery,  with
written  verification  of  receipt.  All  communications  shall  be  sent to the
Borrower  at  the  address  provided  in  the  Purchase  Agreement  executed  in
connection  herewith,  and to the Holder at the address provided in the Purchase
Agreement for such Holder, with

                                      -9-
<PAGE>

a copy to John E. Tucker, Esq., 825 Third Avenue, 14th Floor, New York, New York
10022, facsimile number (212) 541-4434, or at such other address as the Borrower
or the Holder may  designate  by ten days  advance  written  notice to the other
parties  hereto.  A Notice of Conversion  shall be deemed given when made to the
Borrower pursuant to the Purchase Agreement.

      5.3 Amendment  Provision.  The term "Note" and all reference  thereto,  as
used  throughout  this  instrument,  shall mean this  instrument  as  originally
executed,  or  if  later  amended  or  supplemented,   then  as  so  amended  or
supplemented,  and any  successor  instrument  issued  pursuant  to Section  3.5
hereof, as it may be amended or supplemented.

      5.4  Assignability.  This Note shall be binding  upon the Borrower and its
successors  and  assigns,  and shall  inure to the benefit of the Holder and its
successors and assigns, and may be assigned by the Holder in accordance with the
requirements of the Purchase Agreement.

      5.5  Governing  Law.  This Note  shall be  governed  by and  construed  in
accordance with the laws of the State of New York,  without regard to principles
of  conflicts  of laws.  Any action  brought by either  party  against the other
concerning the transactions contemplated by this Agreement shall be brought only
in the state courts of New York or in the federal courts located in the state of
New York.  Both  parties and the  individual  signing this Note on behalf of the
Borrower  agree to submit to the  jurisdiction  of such courts.  The  prevailing
party  shall  be  entitled  to  recover  from the  other  party  its  reasonable
attorney's  fees and  costs.  In the event  that any  provision  of this Note is
invalid or unenforceable  under any applicable statute or rule of law, then such
provision  shall  be  deemed  inoperative  to the  extent  that it may  conflict
therewith  and shall be deemed  modified to conform with such statute or rule of
law. Any such provision which may prove invalid or  unenforceable  under any law
shall not affect the validity or unenforceability of any other provision of this
Note. Nothing contained herein shall be deemed or operate to preclude the Holder
from  bringing  suit or taking  other legal  action  against the Borrower in any
other  jurisdiction  to  collect on the  Borrower's  obligations  to Holder,  to
realize on any  collateral  or any other  security for such  obligations,  or to
enforce a judgment or other court order in favor of the Holder.

      5.6  Maximum  Payments.  Nothing  contained  herein  shall  be  deemed  to
establish  or require  the  payment of a rate of  interest  or other  charges in
excess of the maximum permitted by applicable law. In the event that the rate of
interest  required  to be paid or other  charges  hereunder  exceed the  maximum
permitted by such law, any payments in excess of such maximum  shall be credited
against  amounts  owed by the  Borrower  to the Holder and thus  refunded to the
Borrower.

      5.7 Security Interest. The holder of this Note has been granted a security
interest in certain  assets of the Borrower  more fully  described in a Security
Agreement dated as of January 30, 2004.

      5.8  Construction.   Each  party   acknowledges  that  its  legal  counsel
participated in the preparation of this Note and, therefore, stipulates that the
rule of construction  that  ambiguities are to be resolved  against the drafting
party shall not be applied in the interpretation of this Note to favor any party
against the other.

                                      -10-
<PAGE>

      5.9 Cost of  Collection.  If default is made in the  payment of this Note,
the  Borrower  shall pay to Holder  reasonable  costs of  collection,  including
reasonable attorney's fees.

      [Balance of page intentionally left blank; signature page follows.]

                                      -11-
<PAGE>

      IN WITNESS  WHEREOF,  Borrower has caused this Convertible Term Note to be
signed in its name effective as of this 30th day of January, 2004.

                                                     DYNTEK, INC.

                                                     By:________________________
                                                     Name:______________________
                                                     Title:_____________________

WITNESS:

_____________________________

                                      -12-
<PAGE>

                                    EXHIBIT A

                              NOTICE OF CONVERSION

(To be  executed  by the Holder in order to convert all or part of the Note into
Common Stock)

[Name and Address of Holder]

The  Undersigned  hereby  elects to convert  $_________  of the principal due on
[specify  applicable  Repayment Date] under the Convertible  Term Note issued by
DYNTEK,  INC.  dated  January __, 2004 by delivery of Shares of Common  Stock of
DYNTEK,  INC. on and subject to the  conditions  set forth in Article II of such
Note.

1.    Date of Conversion      _______________________

2.    Shares To Be Delivered: _______________________

                                                     By:________________________
                                                     Name:______________________
                                                     Title:_____________________

                                      -13-
<PAGE>

                                    EXHIBIT B

                            REPAYMENT ELECTION NOTICE

(To be executed by the Borrower in order to pay all or part of a Monthly  Amount
with Common Stock)

[Name and Address of Holder]

DYNTEK,  INC.  hereby  elects to pay  $_________  of the  Monthly  Amount due on
[specify  applicable  Repayment Date] under the Convertible  Term Note issued by
DYNTEK,  INC.  dated and effective as of January,  2004 by delivery of Shares of
Common  Stock of DYNTEK,  INC.  on and  subject to the  conditions  set forth in
Article II of such Note.

1.    Fixed Conversion Price: $_______________________

2.    Amount to be paid: $____________________________

3.    Shares To Be Delivered (2 divided by 1): __________________

Date: ____________                                   DYNTEK, INC.

                                                     By:________________________
                                                     Name:______________________
                                                     Title:_____________________

                                      -14-Exhibit 10.7

      THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
      WARRANT HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS
      AMENDED,  OR ANY STATE  SECURITIES LAWS. THIS WARRANT AND THE COMMON STOCK
      ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,  OFFERED FOR SALE,
      PLEDGED  OR  HYPOTHECATED  IN THE  ABSENCE  OF AN  EFFECTIVE  REGISTRATION
      STATEMENT  AS TO THIS  WARRANT  UNDER  SAID ACT AND ANY  APPLICABLE  STATE
      SECURITIES  LAWS OR AN  OPINION  OF  COUNSEL  REASONABLY  SATISFACTORY  TO
      DYNTEK, INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

               Right to Purchase 625,000 Shares of Common Stock of
                                  DynTek, Inc.
                   (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No. _________________                                    Issue Date: May 3, 2004

      DYNTEK,  INC.  a  corporation  organized  under  the laws of the  State of
Delaware,  hereby certifies that, for value received,  LAURUS MASTER FUND, LTD.,
or assigns (the "Holder"), is entitled, subject to the terms set forth below, to
purchase  from the Company (as defined  herein) from and after the Issue Date of
this  Warrant and at any time or from time to time  before  5:00 p.m.,  New York
time,  through the close of business May 3, 2009 (the "Expiration  Date"), up to
625,000  fully paid and  nonassessable  shares of Common  Stock (as  hereinafter
defined), $0.001 par value per share, at the applicable Exercise Price per share
(as defined below).  The number and character of such shares of Common Stock and
the  applicable  Exercise  Price per share are subject to adjustment as provided
herein.

      As used herein the following terms, unless the context otherwise requires,
have the following respective meanings:

            (a)  The  term  "Company"  shall  include   DynTek,   Inc.  and  any
      corporation  which shall succeed,  or assume the  obligations  of, DynTek,
      Inc. hereunder.

            (b) The term "Common Stock" includes (i) the Company's Common Stock,
      par value $0.001 per share;  and (ii) any other  securities  into which or
      for which  any of the  securities  described  in (a) may be  converted  or
      exchanged pursuant to a plan of recapitalization,  reorganization, merger,
      sale of assets or otherwise.

            (c) The term  "Other  Securities"  refers to any stock  (other  than
      Common  Stock) and other  securities  of the  Company or any other  person
      (corporate or otherwise) which the holder of the Warrant at any time shall
      be entitled to receive,  or shall have  received,  on the  exercise of the
      Warrant,  in lieu of or in addition to Common Stock,  or which at any time
      shall  be  issuable  or shall  have  been  issued  in  exchange  for or in
      replacement of Common Stock or Other  Securities  pursuant to Section 4 or
      otherwise.

<PAGE>

            (d) The "Exercise  Price"  applicable under this Warrant shall be as
      follows:

                  (i)  a  price  of $  1.25  for  the  625,000  shares  acquired
            hereunder.

      1. Exercise of Warrant.

            1.1 Number of Shares Issuable upon Exercise. From and after the date
hereof through and including the  Expiration  Date, the Holder shall be entitled
to receive, upon exercise of this Warrant in whole or in part, by delivery of an
original  or fax copy of an  exercise  notice  in the form  attached  hereto  as
Exhibit  A (the  "Exercise  Notice"),  shares of  Common  Stock of the  Company,
subject to adjustment pursuant to Section 4.

            1.2 Fair Market Value. For purposes hereof,  the "Fair Market Value"
of a share of Common Stock as of a particular  date (the  "Determination  Date")
shall mean:

            (a) If the  Company's  Common Stock is traded on the American  Stock
      Exchange  or another  national  exchange  or is quoted on the  National or
      SmallCap  Market of The  Nasdaq  Stock  Market,  Inc.("Nasdaq"),  then the
      closing or last sale price,  respectively,  reported for the last business
      day immediately preceding the Determination Date.

            (b) If the  Company's  Common  Stock is not  traded on the  American
      Stock Exchange or another national exchange or on the Nasdaq but is traded
      on the NASD OTC  Bulletin  Board,  then  the  mean of the  average  of the
      closing  bid  and  asked  prices   reported  for  the  last  business  day
      immediately preceding the Determination Date.

            (c) Except as provided in clause (d) below, if the Company's  Common
      Stock is not publicly traded,  then as the Holder and the Company agree or
      in the absence of agreement by  arbitration  in accordance  with the rules
      then in effect of the American  Arbitration  Association,  before a single
      arbitrator to be chosen from a panel of persons qualified by education and
      training to pass on the matter to be decided.

            (d)  If  the  Determination  Date  is  the  date  of a  liquidation,
      dissolution  or  winding  up,  or any event  deemed  to be a  liquidation,
      dissolution  or winding up pursuant  to the  Company's  charter,  then all
      amounts to be payable per share to holders of the Common Stock pursuant to
      the charter in the event of such  liquidation,  dissolution or winding up,
      plus all other  amounts to be  payable  per share in respect of the Common
      Stock in liquidation under the charter,  assuming for the purposes of this
      clause  (d) that all of the  shares of Common  Stock  then  issuable  upon
      exercise of the Warrant are outstanding at the Determination Date.

            1.3 Company  Acknowledgment.  The Company  will,  at the time of the
exercise of the Warrant,  upon the request of the holder hereof  acknowledge  in
writing its  continuing  obligation to afford to such holder any rights to which
such holder shall continue to be entitled after such exercise in accordance with
the provisions of this Warrant. If the holder

                                      -2-
<PAGE>

shall  fail to make  any  such  request,  such  failure  shall  not  affect  the
continuing obligation of the Company to afford to such holder any such rights.

            1.4 Trustee for Warrant  Holders.  In the event that a bank or trust
company  shall have been  appointed  as trustee  for the  holders of the Warrant
pursuant to Subsection 3.2, such bank or trust company shall have all the powers
and duties of a warrant agent (as  hereinafter  described) and shall accept,  in
its own name for the account of the Company or such  successor  person as may be
entitled  thereto,  all  amounts  otherwise  payable  to  the  Company  or  such
successor,  as the case may be, on  exercise  of this  Warrant  pursuant to this
Section 1.

      2. Procedure for Exercise.

            2.1 Delivery of Stock Certificates,  Etc., on Exercise.  The Company
agrees that the shares of Common Stock  purchased  upon exercise of this Warrant
shall be deemed to be issued to the Holder as the record owner of such shares as
of the close of  business  on the date on which  this  Warrant  shall  have been
surrendered and payment made for such shares in accordance herewith.  As soon as
practicable  after the exercise of this  Warrant in full or in part,  and in any
event  within  three (3) business  days  thereafter,  the Company at its expense
(including  the payment by it of any  applicable  issue  taxes) will cause to be
issued in the name of and  delivered  to the  Holder,  or as such  Holder  (upon
payment  by  such  Holder  of any  applicable  transfer  taxes)  may  direct  in
compliance with applicable  securities  laws, a certificate or certificates  for
the number of duly and validly issued,  fully paid and  nonassessable  shares of
Common  Stock (or Other  Securities)  to which such Holder  shall be entitled on
such exercise,  plus, in lieu of any fractional share to which such holder would
otherwise be entitled,  cash equal to such fraction  multiplied by the then Fair
Market  Value  of one  full  share,  together  with  any  other  stock  or other
securities and property  (including cash, where applicable) to which such Holder
is entitled upon such exercise pursuant to Section 1 or otherwise.

            2.2 Exercise. Payment may be made either (i) in cash or by certified
or  official  bank  check  payable  to the  order  of the  Company  equal to the
applicable  aggregate Exercise Price, (ii) by delivery of the Warrant, or shares
of Common Stock and/or Common Stock  receivable  upon exercise of the Warrant in
accordance  with  Section  (b) below,  or (iii) by a  combination  of any of the
foregoing  methods,  for the number of Common Shares  specified in such Exercise
Notice (as such exercise  number shall be adjusted to reflect any  adjustment in
the total number of shares of Common Stock  issuable to the Holder per the terms
of this  Warrant)  and the Holder  shall  thereupon  be  entitled to receive the
number of duly authorized,  validly issued, fully-paid and non-assessable shares
of  Common  Stock  (or  Other   Securities)   determined  as  provided   herein.
Notwithstanding any provisions herein to the contrary,  if the Fair Market Value
of one share of Common Stock is greater than the Exercise  Price (at the date of
calculation  as set forth below),  in lieu of exercising  this Warrant for cash,
the Holder may elect to receive shares equal to the value (as determined  below)
of this Warrant (or the portion  thereof  being  exercised) by surrender of this
Warrant  at the  principal  office of the  Company  together  with the  properly
endorsed  Exercise Notice in which event the Company shall issue to the Holder a
number of shares of Common Stock computed using the following formula:

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

                                      -3-
<PAGE>

      Where X =   the  number  of  shares  of  Common  Stock to be issued to the
                  Holder

      Y =         the  number of shares of Common  Stock  purchasable  under the
                  Warrant  or,  if  only a  portion  of  the  Warrant  is  being
                  exercised,  the portion of the Warrant being exercised (at the
                  date of such calculation)

      A =         the Fair  Market  Value of one share of the  Company's  Common
                  Stock (at the date of such calculation)

      B =         Exercise Price (as adjusted to the date of such calculation)

      3. Effect of Reorganization, Etc.; Adjustment of Exercise Price.

            3.1 Reorganization,  Consolidation, Merger, Etc. In case at any time
or from  time to time,  the  Company  shall  (a)  effect a  reorganization,  (b)
consolidate  with or  merge  into  any  other  person,  or (c)  transfer  all or
substantially all of its properties or assets to any other person under any plan
or arrangement  contemplating the dissolution of the Company, then, in each such
case,  as a condition  to the  consummation  of such a  transaction,  proper and
adequate  provision  shall be made by the  Company  whereby  the  Holder of this
Warrant,  on the exercise  hereof as provided in Section 1 at any time after the
consummation of such  reorganization,  consolidation  or merger or the effective
date of such  dissolution,  as the case may be,  shall  receive,  in lieu of the
Common  Stock (or Other  Securities)  issuable  on such  exercise  prior to such
consummation or such effective date, the stock and other securities and property
(including  cash) to which  such  Holder  would  have  been  entitled  upon such
consummation or in connection with such dissolution, as the case may be, if such
Holder had so exercised this Warrant,  immediately prior thereto, all subject to
further adjustment thereafter as provided in Section 4.

            3.2  Dissolution.  In the event of any  dissolution  of the  Company
following the transfer of all or substantially  all of its properties or assets,
the Company,  concurrently with any distributions  made to holders of its Common
Stock,  shall at its expense  deliver or cause to be delivered to the Holder the
stock and other  securities  and property  (including  cash,  where  applicable)
receivable  by the Holder of the  Warrant  pursuant to Section  3.1,  or, if the
Holder shall so instruct the Company,  to a bank or trust  company  specified by
the Holder and having its  principal  office in New York,  NY as trustee for the
Holder of the Warrant (the "Trustee").

            3.3 Continuation of Terms. Upon any  reorganization,  consolidation,
merger or transfer (and any dissolution  following any transfer)  referred to in
this  Section 3, this  Warrant  shall  continue in full force and effect and the
terms hereof shall be applicable to the shares of stock and other securities and
property  receivable on the exercise of this Warrant after the  consummation  of
such   reorganization,   consolidation  or  merger  or  the  effective  date  of
dissolution  following  any such  transfer,  as the case  may be,  and  shall be
binding upon the issuer of any such stock or other securities, including, in the
case of any such transfer,  the person acquiring all or substantially all of the
properties  or assets of the  Company,  whether  or not such  person  shall have
expressly  assumed  the terms of this  Warrant as  provided in Section 4. In the
event  this  Warrant  does not  continue  in full  force  and  effect  after the
consummation of the transactions described in this Section 3, then the Company's
securities and property (including

                                      -4-
<PAGE>

cash,  where  applicable)  receivable  by the  Holders  of the  Warrant  will be
delivered to Holder or the Trustee as contemplated by Section 3.2.

      4.  Extraordinary  Events  Regarding  Common Stock.  In the event that the
Company shall (a) issue  additional  shares of the Common Stock as a dividend or
other  distribution on outstanding  Common Stock,  (b) subdivide its outstanding
shares of Common  Stock,  or (c)  combine its  outstanding  shares of the Common
Stock into a smaller  number of shares of the Common  Stock,  then, in each such
event,  the Exercise  Price  shall,  simultaneously  with the  happening of such
event,  be adjusted by multiplying  the then Exercise  Price by a fraction,  the
numerator  of which  shall be the number of shares of Common  Stock  outstanding
immediately prior to such event and the denominator of which shall be the number
of shares of Common  Stock  outstanding  immediately  after such event,  and the
product so obtained shall  thereafter be the Exercise Price then in effect.  The
Exercise Price, as so adjusted,  shall be readjusted in the same manner upon the
happening of any successive  event or events described herein in this Section 4.
The  number of shares of Common  Stock  that the  holder of this  Warrant  shall
thereafter,  on the  exercise  hereof as  provided  in Section 1, be entitled to
receive shall be increased to a number  determined by multiplying  the number of
shares of Common  Stock that would  otherwise  (but for the  provisions  of this
Section 4) be issuable on such exercise by a fraction of which (a) the numerator
is the  Exercise  Price that would  otherwise  (but for the  provisions  of this
Section 4) be in effect, and (b) the denominator is the Exercise Price in effect
on the date of such  exercise  (following  adjustment  in  connection  with this
Section 4).

      5.  Certificate  as to  Adjustments.  In each  case of any  adjustment  or
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise of the  Warrant,  the Company at its expense  will  promptly  cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or  readjustment  in  accordance  with the terms of the  Warrant  and  prepare a
certificate  setting forth such adjustment or readjustment and showing in detail
the facts upon which such  adjustment  or  readjustment  is based,  including  a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to have been issued or sold,  (b) the number of shares of Common Stock (or Other
Securities) outstanding or deemed to be outstanding,  and (c) the Exercise Price
and the number of shares of Common  Stock to be received  upon  exercise of this
Warrant,  in effect  immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant.  The Company will  forthwith
mail a copy of each  such  certificate  to the  holder  of the  Warrant  and any
Warrant agent of the Company (appointed pursuant to Section 11 hereof).

      6.  Reservation  of Stock,  Etc.,  Issuable on  Exercise  of Warrant.  The
Company will at all times  reserve and keep  available,  solely for issuance and
delivery  on the  exercise  of the  Warrant,  shares of  Common  Stock (or Other
Securities) from time to time issuable on the exercise of the Warrant.

      7. Company Redemption Option.  Upon five (5) business days prior notice to
Holder,  the Company shall have the right to redeem any  unexercised  portion of
the  Warrant  in cash for a price  of $0.01  per  warrant  if (i) the  Company's
obligations to the Holder under the Note have been  irrevocably  repaid in full;
(ii) the  closing  price of the  Company's  Common  Stock has  closed  above two
hundred fifty percent (250%) of the then applicable Exercise Price for ten

                                      -5-
<PAGE>

(10)  consecutive  trading  days and (iii) the Company has filed a  registration
statement with the  Securities  Exchange  Commission  covering the shares of the
Company's Common Stock to be issued upon the full exercise of this Warrant,  and
such registration  statement has been declared and remains effective on the date
of such notice.

      8. Assignment;  Exchange of Warrant. Subject to compliance with applicable
securities  laws,  this  Warrant,  and  the  rights  evidenced  hereby,  may  be
transferred  by any  registered  holder hereof (a  "Transferor")  in whole or in
part.  On the  surrender  for exchange of this  Warrant,  with the  Transferor's
endorsement  in  the  form  of  Exhibit  B  attached  hereto  (the   "Transferor
Endorsement  Form") and together with evidence  reasonably  satisfactory  to the
Company  demonstrating  compliance with applicable  securities laws, which shall
include,  without limitation, a legal opinion from the Transferor's counsel that
such  transfer  is  exempt  from the  registration  requirements  of  applicable
securities  laws,  the Company at its expense but with payment by the Transferor
of any applicable  transfer  taxes) will issue and deliver to or on the order of
the  Transferor  thereof  a new  Warrant  of  like  tenor,  in the  name  of the
Transferor  and/or the  transferee(s)  specified in such Transferor  Endorsement
Form  (each a  "Transferee"),  calling  in the  aggregate  on the  face or faces
thereof for the number of shares of Common Stock called for on the face or faces
of the Warrant so surrendered by the Transferor.

      9. Replacement of Warrant. On 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 loss,  theft or  destruction  of this  Warrant,  on
delivery of an indemnity agreement or security  reasonably  satisfactory in form
and amount to the Company or, in the case of any such  mutilation,  on surrender
and  cancellation  of this Warrant,  the Company at its expense will execute and
deliver, in lieu thereof, a new Warrant of like tenor.

      10.  Registration  Rights.  The Holder of this  Warrant  has been  granted
certain  registration  rights by the Company.  These registration rights are set
forth  in a  Registration  Rights  Agreement  entered  into by the  Company  and
Purchaser dated as of even date of this Warrant.

      11.  Maximum  Exercise.  The Holder shall not be entitled to exercise this
Warrant on an exercise date, in connection  with that number of shares of Common
Stock  which would be in excess of the sum of (i) the number of shares of Common
Stock  beneficially  owned by the Holder and its affiliates on an exercise date,
and (ii) the number of shares of Common Stock issuable upon the exercise of this
Warrant with respect to which the determination of this proviso is being made on
an exercise date,  which would result in beneficial  ownership by the Holder and
its affiliates of more than 4.99% of the  outstanding  shares of Common Stock of
the Company on such date.  For the  purposes  of the proviso to the  immediately
preceding sentence,  beneficial ownership shall be determined in accordance with
Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation
13d-3 thereunder.  Notwithstanding the foregoing,  the restriction  described in
this  paragraph  may be revoked upon 75 days prior notice from the Holder to the
Company and is  automatically  null and void upon an Event of Default  under the
Note.

      12. Warrant  Agent.  The Company may, by written notice to the each Holder
of the  Warrant,  appoint an agent for the purpose of issuing  Common  Stock (or
Other  Securities)  on the  exercise  of this  Warrant  pursuant  to  Section 1,
exchanging  this  Warrant  pursuant  to Section 7, and  replacing  this  Warrant
pursuant  to  Section  8,  or any of the  foregoing,  and  thereafter  any  such

                                      -6-
<PAGE>

issuance,  exchange or  replacement,  as the case may be,  shall be made at such
office by such agent.

      13. Transfer on the Company's Books.  Until this Warrant is transferred on
the books of the Company,  the Company may treat the registered holder hereof as
the absolute  owner hereof for all purposes,  notwithstanding  any notice to the
contrary.

      14. Notices, Etc. All notices and other communications from the Company to
the  Holder  of this  Warrant  shall be  mailed  by first  class  registered  or
certified mail,  postage prepaid,  at such address as may have been furnished to
the Company in writing by such Holder or, until any such Holder furnishes to the
Company an  address,  then to, and at the  address  of, the last  Holder of this
Warrant who has so furnished an address to the Company.

      15.  Voluntary  Adjustment  by the  Company.  The  Company may at any time
during the term of this Warrant  reduce the then current  Exercise  Price to any
amount and for any period of time deemed  appropriate  by the Board of Directors
of the Company.

      16.  Miscellaneous.  This  Warrant  and any term  hereof  may be  changed,
waived,  discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is sought.  This Warrant shall be governed by and  construed in accordance  with
the laws of State of New York without regard to principles of conflicts of laws.
Any action brought  concerning  the  transactions  contemplated  by this Warrant
shall be brought only in the state  courts of New York or in the federal  courts
located in the state of New York; provided,  however, that the Holder may choose
to waive this  provision and bring an action  outside the state of New York. The
individuals  executing  this Warrant on behalf of the Company agree to submit to
the  jurisdiction  of such courts and waive trial by jury. The prevailing  party
shall be entitled to recover from the other party its reasonable attorney's fees
and  costs.  In the event  that any  provision  of this  Warrant  is  invalid or
unenforceable  under any applicable  statute or rule of law, then such provision
shall be deemed  inoperative  to the extent that it may conflict  therewith  and
shall be deemed  modified to conform  with such statute or rule of law. Any such
provision  which  may prove  invalid  or  unenforceable  under any law shall not
affect the validity or  enforceability  of any other  provision of this Warrant.
The headings in this Warrant are for purposes of reference  only,  and shall not
limit  or  otherwise  affect  any  of  the  terms  hereof.   The  invalidity  or
unenforceability  of any provision hereof shall in no way affect the validity or
enforceability  of any other  provision.  The  Company  acknowledges  that legal
counsel  participated  in  the  preparation  of  this  Warrant  and,  therefore,
stipulates  that the rule of  construction  that  ambiguities are to be resolved
against the drafting  party shall not be applied in the  interpretation  of this
Warrant to favor any party against the other party.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                            SIGNATURE PAGE FOLLOWS.]

                                      -7-
<PAGE>

      IN WITNESS  WHEREOF,  the Company has executed this Warrant as of the date
first written above.

                                                  DYNTEK, INC.

WITNESS:

                                                  By:    _______________________
                                                  Name:  _______________________
_______________________                           Title: _______________________

                                      -8-
<PAGE>

                                    EXHIBIT A

                              FORM OF SUBSCRIPTION
                   (To Be Signed Only On Exercise Of Warrant)

TO: DynTek, Inc.

      Attention: Chief Financial Officer

      The  undersigned,  pursuant to the  provisions  set forth in the  attached
Warrant (No.____), hereby irrevocably elects to purchase (check applicable box):

______      ______  shares of the Common Stock covered by such Warrant; or

______      the maximum number of shares of Common Stock covered by such Warrant
            pursuant to the cashless exercise procedure set forth in Section 2.

      The undersigned herewith makes payment of the full Exercise Price for such
shares  at  the  price  per  share  provided  for  in  such  Warrant,  which  is
$___________. Such payment takes the form of (check applicable box or boxes):

______      $______ in lawful money of the United States; and/or

______      the  cancellation  of such  portion  of the  attached  Warrant as is
            exercisable  for a total of _______  shares of Common Stock (using a
            Fair  Market  Value of  $_______  per  share  for  purposes  of this
            calculation); and/or

______      the  cancellation  of such  number of  shares of Common  Stock as is
            necessary,  in accordance with the formula set forth in Section 2.2,
            to exercise  this  Warrant  with  respect to the  maximum  number of
            shares of Common Stock purchasable pursuant to the cashless exercise
            procedure set forth in Section 2.

      The undersigned  requests that the  certificates for such shares be issued
in the name of, and  delivered  to  _____________________________________  whose
address is _________________________________________________________________.

      The  undersigned  represents and warrants that all offers and sales by the
undersigned of the securities issuable upon exercise of the within Warrant shall
be made pursuant to registration of the Common Stock under the Securities Act of
1933,  as amended  (the  "Securities  Act") or  pursuant  to an  exemption  from
registration under the Securities Act.

Dated: _________________________

                                            (Signature must conform to name of
                                            holder as specified on the face of
                                            the Warrant)

                                            Address: ___________________________
                                                     ___________________________

                                      A-1
<PAGE>

                                    EXHIBIT B

                         FORM OF TRANSFEROR ENDORSEMENT
                   (To Be Signed Only On Transfer Of Warrant)

      For value received,  the undersigned hereby sells,  assigns, and transfers
unto the  person(s)  named  below  under  the  heading  "Transferees"  the right
represented  by the within  Warrant to  purchase  the  percentage  and number of
shares of Common Stock of DynTek,  Inc.  into which the within  Warrant  relates
specified under the headings "Percentage  Transferred" and "Number Transferred,"
respectively,  opposite the name(s) of such  person(s)  and  appoints  each such
person  Attorney to transfer its respective  right on the books of DynTek,  Inc.
with full power of substitution in the premises.

                                            Percentage               Number
Transferees            Address              Transferred            Transferred
-----------            -------              -----------            -----------

____________________   __________________   ____________________   _____________

____________________   __________________   ____________________   _____________

____________________   __________________   ____________________   _____________

____________________   __________________   ____________________   _____________

Dated: _________________                    ____________________________________

                                            (Signature must conform to name of
                                            holder as specified on the face of
                                            the Warrant)

                                            Address: ___________________________
                                                     ___________________________

                                            SIGNED IN THE PRESENCE OF:

                                            ____________________________________
                                                          (Name)
ACCEPTED AND AGREED:
[TRANSFEREE]

_______________________________________
             (Name)

                                      B-1

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