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                                                                     EXHIBIT 4.1

                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT, dated as of June 30, 2003 between
Icon Investors Ltd. ("PURCHASER") and US Dataworks, Inc. (the "COMPANY").

         WHEREAS, simultaneously with the execution and delivery of this
Agreement, pursuant to a Common Stock Purchase Agreement dated the date hereof
(the "PURCHASE AGREEMENT") the Purchaser has committed to purchase up to
$4,000,000 of the Company's Common Stock (TERMS NOT DEFINED HEREIN SHALL HAVE
THE MEANINGS ASCRIBED TO THEM IN THE PURCHASE AGREEMENT); and

         WHEREAS, the Company desires to grant to the Purchaser the registration
rights set forth herein with respect to the Draw Down Shares (the "SECURITIES").

         NOW, THEREFORE, the parties hereto mutually agree as follows:

         Section 1. REGISTRABLE SECURITIES. As used herein the term "REGISTRABLE
SECURITY" means the Securities; PROVIDED, HOWEVER, that any shares of Common
Stock which are Registrable Securities shall cease to be Registrable Securities
(i) when sold pursuant to the Registration Statement, (ii) when they may be sold
pursuant to Rule 144 (or any similar provision then in force) under the
Securities Act ("RULE 144"), (iii) upon any sale in any manner to a person or
entity which is not entitled pursuant to Section 9 to rights under this
Agreement, or (iv) such time as, in the opinion of counsel to the Company, such
Securities may be sold without any time, volume or manner limitations pursuant
to Rule 144(k) (or any similar provision then in effect) under the Securities
Act. In the event of any merger, reorganization, consolidation, recapitalization
or other change in corporate structure affecting the Common Stock, such
adjustment shall be deemed to be made in the definition of "Registrable
Security" as is appropriate in order to prevent any dilution or enlargement of
the rights granted pursuant to this Agreement.

         Section 2. RESTRICTIONS ON TRANSFER. The Purchaser acknowledges and
understands that in the absence of an effective Registration Statement
authorizing the resale of the Securities as provided herein, the Securities are
"restricted securities" as defined in Rule 144. The Purchaser understands that
no disposition or transfer of the Securities may be made by Purchaser in the
absence of (i) an opinion of counsel to the Purchaser, in form and substance
reasonably satisfactory to the Company, that such transfer may be made without
registration under the Securities Act or (ii) such registration.

         With a view to making available to the Purchaser the benefits of Rule
144, the Company agrees:

                  (a) to comply with the provisions of paragraph (c)(1) of Rule
         144; and

                  (b) to use its best effort to file with the Securities and
         Exchange Commission (the "COMMISSION") in a timely manner all reports
         and other documents required to be filed by the Company pursuant to

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         Section 13 or 15(d) under the Exchange Act; and furnish the Purchaser
         with such other reports and documents of the Company as the Purchaser
         may reasonably request to avail itself of any similar rule or
         regulation of the Commission allowing it to sell any such securities
         without registration.

         Section 3. REGISTRATION RIGHTS WITH RESPECT TO THE SECURITIES.

                  (a) The Company agrees that it will prepare and file with the
         Commission, within 45 days after the date hereof, a registration
         statement (on Form S-3, or other appropriate form of registration
         statement) under the Securities Act (the "REGISTRATION STATEMENT"), at
         the sole expense of the Company (except as provided in Section 3(c)
         hereof), in respect of Purchaser, so as to permit a resale of the
         Securities under the Securities Act by Purchaser. The Company shall use
         its commercially reasonable efforts to cause the Registration Statement
         to become effective within 90 days of the date hereof or five (5) days
         of clearance by the Commission and will within said five (5) days
         request acceleration of effectiveness of the Registration Statement by
         the Commission. The Company will notify Purchaser of the effectiveness
         of the Registration Statement within one Trading Day of such event.

                  (b) The Company will maintain the Registration Statement or
         post-effective amendment filed under this Section 3 hereof effective
         under the Securities Act until the earliest of (i) the date that all
         the Registrable Securities have been disposed of pursuant to the
         Registration Statement, (ii) 360 days from the last date Registrable
         Securities are issued, (iii) the date that all of the Securities may be
         sold under the provisions of Rule 144, (iv) the date all Securities
         have been otherwise transferred to persons who may trade such shares
         without restriction under the Securities Act, and the Company has
         delivered a new certificate or other evidence of ownership for such
         Securities not bearing a restrictive legend, or (v) the date all
         Securities may be sold without any time, volume or manner limitations
         pursuant to Rule 144(k) or any similar provision then in effect under
         the Securities Act (the "EFFECTIVENESS PERIOD").

                  (c) All fees, disbursements and out-of-pocket expenses and
         costs incurred by the Company in connection with the preparation and
         filing of the Registration Statement under subparagraph 3(a) and in
         complying with applicable securities and Blue Sky laws (including,
         without limitation, all attorneys' fees of the Company) shall be borne
         by the Company. The Purchaser shall bear the cost of underwriting
         and/or brokerage discounts, fees and commissions, if any, applicable to
         the Securities being registered and the fees and expenses of its
         counsel. The Purchaser and its counsel shall have a reasonable period,
         not to exceed three (3) Trading Days, to review the proposed
         Registration Statement or any amendment thereto, prior to filing with
         the Commission, and the Company shall provide the Purchaser with copies
         of any comment letters received from the Commission with respect
         thereto within two (2) Trading Days of receipt thereof. The Company
         shall make reasonably available for inspection by Purchaser, any
         underwriter participating in any disposition pursuant to the
         Registration Statement, and any attorney, accountant or other agent
         retained by the Purchaser or any such underwriter all relevant

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         financial and other records, pertinent corporate documents and
         properties of the Company and its subsidiaries, and cause the Company's
         officers, directors and employees to supply all information reasonably
         requested by the Purchaser or any such underwriter, attorney,
         accountant or agent in connection with the Registration Statement;
         PROVIDED, HOWEVER, that all records, information and documents that are
         designated in writing by the Company as confidential, proprietary or
         containing any material non-public information shall be kept
         confidential by the Purchaser and any such underwriter, attorney,
         accountant or agent (pursuant to an appropriate confidentiality
         agreement in the case of the Purchaser, underwriter, attorney,
         accountant or agent), unless such disclosure is made pursuant to
         judicial process in a court proceeding (after first giving the Company
         an opportunity promptly to seek a protective order or otherwise limit
         the scope of the information sought to be disclosed) or is required by
         law, or such records, information or documents become available to the
         public through a third party not in violation of an accompanying
         obligation of confidentiality; and PROVIDED FURTHER that, if the
         foregoing inspection and information gathering would otherwise disrupt
         the Company's conduct of its business, such inspection and information
         gathering shall, to the maximum extent possible, be coordinated on
         behalf of the Purchaser and the other parties entitled thereto by one
         firm of counsel designed by and on behalf of the majority in interest
         of Purchaser and other parties. The Company at its expense will supply
         the Purchaser with such reasonable number of copies of the Registration
         Statement and the final prospectus included therein (the "Prospectus")
         and other related documents as the Purchaser may request in order to
         facilitate the public sale or other disposition of the Registrable
         Securities.

                  (d) The Company shall not be required by this Section 3 to
         include the Purchaser's Securities in any Registration Statement which
         is to be filed if, in the opinion of counsel for both the Purchaser and
         the Company (or, should they not agree, in the opinion of another
         counsel experienced in securities law matters acceptable to counsel for
         the Purchaser and the Company) the proposed offering or other transfer
         as to which such registration is requested is exempt from applicable
         federal and state securities laws and would result in all purchasers or
         transferees obtaining securities which are not "restricted securities",
         as defined in Rule 144 under the Securities Act.

                  If at any time or from time to time after the effective date
         of the Registration Statement, the Company notifies the Purchaser in
         writing of the existence of a Potential Material Event (as defined in
         Section 3(e) below), the Purchaser shall not offer or sell any
         Securities or engage in any other transaction involving or relating to
         Securities, from the time of the giving of notice with respect to a
         Potential Material Event until the Purchaser has received copies of a
         supplemented or amended Prospectus or until the Purchaser is advised in
         writing by the Company that the then current Prospectus may be used and
         has received copies of any additional or supplemental filings that are
         incorporated or deemed incorporated by reference in such Prospectus
         (the "SUSPENSION PERIOD"); PROVIDED, HOWEVER, that, if a Suspension
         Period occurs during any periods commencing on a Trading Day a Draw
         Down Notice is deemed delivered and ending ten (10) Trading Days
         following the end of the corresponding Draw Down Pricing Period, then

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         the Company must compensate the Purchaser for any net decline in the
         market value of any Securities committed to be purchased by the
         Purchaser through the end of such Suspension Period. Net decline shall
         be calculated as the difference between the highest VWAP during the
         applicable Suspension Period and the VWAP on the Trading Day
         immediately following a properly delivered notice to the Purchaser that
         such Suspension Period has ended. The Company must give Purchaser
         notice in writing promptly upon knowledge that a Suspension Period may
         occur without indicating the nature of such Suspension Period.

                  (e) "POTENTIAL MATERIAL EVENT" means any of the following: (i)
         the possession by the Company of material information that is not ripe
         for disclosure in a registration statement, as determined in good faith
         by the Chief Executive Officer or the Board of Directors of the Company
         or that disclosure of such information in the Registration Statement
         would be detrimental to the business or affairs of the Company; or (ii)
         any material engagement, development or activity by the Company which
         would, in the good faith determination of the Chief Executive Officer
         or the Board of Directors of the Company, be adversely affected by
         disclosure in a registration statement at such time, which
         determination shall be accompanied by a good faith determination by the
         Chief Executive Officer or the Board of Directors of the Company that
         the Registration Statement would be materially misleading absent the
         inclusion of such information; or (iii) pursuant to applicable law, a
         fundamental change that requires the Company to file a post-effective
         amendment to the Registration Statement, change the plan of
         distribution to the Prospectus, or must update the information included
         in the Prospectus pursuant to Section 10(a)(3) of the Securities Act.

                  (f) If the Company has delivered a Prospectus to the Purchaser
         and after having done so the Prospectus is amended to comply with the
         requirements of the Securities Act, the Company shall promptly notify
         the Purchaser and, if requested, the Purchaser shall immediately cease
         making offers of Registrable Securities. The Company shall promptly
         provide the Purchaser with revised Prospectuses and, following receipt
         of the revised Prospectuses, the Purchaser shall be free to resume
         making offers of the Registrable Securities.

         Section 4. COOPERATION WITH COMPANY. The Purchaser will cooperate with
the Company in all respects in connection with this Agreement, including timely
supplying all information reasonably requested by the Company (which shall
include all information regarding the Purchaser and proposed manner of sale of
the Registrable Securities required to be disclosed in the Registration
Statement) and executing and returning all documents reasonably requested in
connection with the registration and sale of the Registrable Securities and
entering into and performing its obligations under any underwriting agreement,
if the offering is an underwritten offering, in usual and customary form, with
the managing underwriter or underwriters of such underwritten offering. The
Purchaser shall consent to be named as an underwriter in the Registration
Statement. Purchaser acknowledges that in accordance with current Commission
policy, the Purchaser will be named as the underwriter of the Securities in the
Registration Statement.

         Section 5. REGISTRATION PROCEDURES. If and whenever the Company is
required by any of the provisions of this Agreement to effect the registration
of any of the Registrable Securities under the Securities Act, the Company shall
(except as otherwise provided in this Agreement), as expeditiously as possible,
subject to the Purchaser's assistance and cooperation as reasonably required:

                  (a) As expeditiously as possible prepare and file with the
         Commission such amendments and supplements to the Registration
         Statement and the Prospectus as may be necessary to keep such
         Registration Statement effective until the end of the Effectiveness
         Period and to comply with the provisions of the Securities Act with
         respect to the sale or other disposition of all securities covered by
         the Registration Statement (including prospectus supplements with
         respect to the sales of securities from time to time in connection with
         a registration statement pursuant to Rule 415 promulgated under the
         Securities Act);

                  (b) prior to the filing with the Commission of any
         Registration Statement (including any amendments thereto) and the
         distribution or delivery of the Prospectus (including any supplements
         thereto), (i) provide draft copies thereof to the Purchaser and reflect
         in such documents all such comments as the Purchaser (and its counsel)
         reasonably may propose and (ii) furnish to the Purchaser such numbers
         of copies of the Prospectus including a preliminary prospectus or any
         amendment or supplement to the Prospectus, as applicable, in conformity
         with the requirements of the Securities Act, and such other documents,
         as the Purchaser may reasonably request in order to facilitate the
         public sale or other disposition of the Registrable Securities;

                  (c) as expeditiously as possible use its best efforts to
         register or qualify the Registrable Securities covered by the
         Registration Statement under the applicable blue sky laws as requested
         by the Purchaser (subject to the limitations set forth in Section 3(c)
         above), and do any and all other acts and things which may be
         reasonably necessary or advisable to enable the Purchaser to consummate
         the public sale or other disposition in such jurisdiction of the
         Registrable Securities, except that the Company shall not for any such
         purpose be required to qualify to do business as a foreign corporation
         in any jurisdiction wherein it is not so qualified or to execute any
         general consent to service of process;

                  (d) list such Registrable Securities on the Principal Market,
         and any other exchange on which the Common Stock of the Company is then
         listed, if the listing of such Registrable Securities is then permitted
         under the rules of such exchange or the Principal Market;

                  (e) notify the Purchaser at any time when the Prospectus is
         required to be delivered under the Securities Act, of the happening of
         any event of which it has knowledge as a result of which the
         Prospectus, as then in effect, includes an untrue statement of a
         material fact or omits to state a material fact required to be stated
         therein or necessary to make the statements therein not misleading in
         the light of the circumstances then existing, and the Company shall
         prepare and file a curative amendment or curative supplement under
         Section 5(a) as quickly as commercially possible and the period
         beginning on the date of notice until the curative amendment is
         effective or curative supplement is provided to the Purchaser shall be
         deemed a Suspension Period and the Company shall compensate the
         Purchaser as set forth in Section 3(d) herein;

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                  (f) as promptly as practicable after becoming aware of such
         event, notify the Purchaser (or, in the event of an underwritten
         offering, the managing underwriters) of the issuance by the Commission
         or any state authority of any stop order or other suspension of the
         effectiveness of the Registration Statement and use commercially
         reasonable efforts to effect the withdrawal, rescission or removal of
         such stop order or other suspension; and

                  (g) maintain a transfer agent for its Common Stock.

         Section 6. INDEMNIFICATION.

                  (a) The Company agrees to indemnify and hold harmless the
         Purchaser and each person, if any, who controls the Purchaser within
         the meaning of the Securities Act ("DISTRIBUTING PURCHASER") against
         any losses, claims, damages or liabilities, joint or several (which
         shall, for all purposes of this Agreement, include, but not be limited
         to, all reasonable costs of defense and investigation and all
         reasonable attorneys' fees incurred by the Distributing Purchaser), to
         which the Distributing Purchaser may become subject, under the
         Securities Act or otherwise, insofar as such losses, claims, damages or
         liabilities (or actions in respect thereof) (i) arise out of or are
         based upon any untrue statement or alleged untrue statement of any
         material fact contained in the Registration Statement, or any related
         preliminary prospectus, the Prospectus or amendment or supplement to
         such Registration Statement, or (ii) arise out of or are based upon the
         omission or alleged omission to state therein a material fact required
         to be stated therein or necessary to make the statements therein not
         misleading; PROVIDED, HOWEVER, that the Company will not be liable in
         any such case to the extent that any such loss, claim, damage or
         liability arises out of or is based upon an untrue statement or alleged
         untrue statement or omission or alleged omission made in the
         Registration Statement, preliminary prospectus, the Prospectus or
         amendment or supplement to the Registration Statement in reliance upon,
         and in conformity with, written information furnished to the Company by
         the Distributing Purchaser specifically for use in the preparation
         thereof. This Section 6(a) shall not inure to the benefit of any
         Distributing Purchaser with respect to any person asserting such loss,
         claim, damage or liability who purchased the Registrable Securities
         which are the subject thereof if the Distributing Purchaser failed to
         send or give (in violation of the Securities Act or the rules and
         regulations promulgated thereunder) a copy of the Prospectus to such
         person at or prior to the written confirmation to such person of the
         sale of such Registrable Securities, where the Distributing Purchaser
         was obligated to do so under the Securities Act or the rules and
         regulations promulgated thereunder. This indemnity agreement will be in
         addition to any liability which the Company may otherwise have.

                  (b) The Purchaser agrees that it will indemnify and hold
         harmless the Company, and each officer, director of the Company or
         person, if any, who controls the Company within the meaning of the
         Securities Act, against any losses, claims, damages or liabilities

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         (which shall, for all purposes of this Agreement, include, but not be
         limited to, all reasonable costs of defense and investigation and all
         reasonable attorneys' fees incurred by the Purchaser) to which the
         Company or any such officer, director or controlling person may become
         subject under the Securities Act or otherwise, insofar as such losses,
         claims, damages or liabilities (or actions in respect thereof) arise
         out of or are based upon any untrue statement or alleged untrue
         statement of any material fact contained in the Registration Statement,
         or any related preliminary prospectus, the Prospectus or amendment or
         supplement to the Registration Statement, or arise out of or are based
         upon the omission or the alleged omission to state therein a material
         fact required to be stated therein or necessary to make the statements
         therein not misleading, but in each case only to the extent that such
         untrue statement or alleged untrue statement or omission or alleged
         omission was made in the Registration Statement, preliminary
         prospectus, the Prospectus or amendment or supplement thereto in
         reliance upon, and in conformity with, written information furnished to
         the Company by such Purchaser specifically for use in the preparation
         thereof. This indemnity agreement will be in addition to any liability
         which the Purchaser may otherwise have. Notwithstanding anything to the
         contrary herein, the Purchaser shall not be liable under this Section
         6(b) for any amount in excess of the net proceeds to such Purchaser as
         a result of the sale of Registrable Securities pursuant to the
         Registration Statement.

                  (c) Promptly after receipt by an indemnified party under this
         Section 6 of notice of the commencement of any action as to which
         indemnity may be sought under this Section 6, notify the indemnifying
         party of the commencement thereof and shall permit the indemnifying
         party to assume the defense of any claim or any litigation resulting
         therefrom; provided, that counsel for the indemnifying party, who shall
         conduct the defense of such claim or litigation, shall be approved by
         the indemnified party (whose approval shall not be unreasonably
         withheld, conditioned or delayed); but the failure to notify the
         indemnifying party will not relieve the indemnifying party from any
         obligations which it may have to any indemnified party except to the
         extent of actual prejudice demonstrated by the indemnifying party.
         After notice from the indemnifying party to such indemnified party of
         its election so to assume the defense thereof, the indemnifying party
         will not be liable to such indemnified party under this Section 6 for
         any legal or other expenses subsequently incurred by such indemnified
         party in connection with the defense thereof other than reasonable
         costs of investigation, unless the indemnifying party shall not pursue
         the action to its final conclusion. The indemnified party shall have
         the right, at such party's own expense, to employ separate counsel in
         any such action and to participate in the defense thereof; provided
         that the indemnifying party shall pay such expense if: (i) the
         employment of such counsel has been specifically authorized in writing
         by the indemnifying party, or (ii) the named parties to any such action
         (including any impleaded parties) include both the indemnified party
         and the indemnifying party and the indemnified party reasonably
         concludes that representation of such indemnified party by the counsel
         retained by the indemnifying party would be inappropriate due to actual
         or potential differing interests between the indemnified party and any
         other party represented by such counsel in such proceeding; provided
         further that in no event shall the indemnifying party be required to
         pay the expenses of more than one law firm per jurisdiction as counsel

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         for the indemnified party. No indemnifying party, in the defense of any
         such claim or litigation shall, except with the consent of each
         indemnified party, consent to entry of any judgment or enter into any
         settlement which does not include as an unconditional term thereof the
         giving by the claimant or plaintiff to such indemnified party of a
         release from all liability in respect of such claim or litigation, and
         no indemnified party shall consent to entry of any judgment or settle
         such claim or litigation without the prior written consent of the
         indemnifying party, which consent shall not be unreasonably withheld,
         conditioned or delayed.

                  (d) If the indemnifying party does not assume the defense of
         any claim or litigation pursuant to this Section 6, all reasonable
         costs of defense and investigation in a manner not inconsistent with
         this Section and all reasonable attorneys' fees incurred by the
         indemnified party in connection with a claim or litigation covered by
         this Section 6 shall be paid to the indemnified party, as incurred,
         within ten (10) Trading Days of written notice thereof to the
         indemnifying party; provided, that the indemnifying party may require
         such indemnified party to undertake to reimburse all such fees and
         expenses to the extent it is finally judicially determined that such
         indemnified party is not entitled to indemnification hereunder.

         Section 7. CONTRIBUTION.

                  (a) In order to provide for just and equitable contribution
         under the Securities Act in any case in which (i) the indemnified party
         makes a claim for indemnification pursuant to Section 6 hereof but is
         judicially determined (by the entry of a final judgment or decree by a
         court of competent jurisdiction and the expiration of time to appeal or
         the denial of the last right of appeal) that such indemnification may
         not be enforced in such case notwithstanding the fact that the express
         provisions of Section 6 hereof provide for indemnification in such
         case, or (ii) contribution under the Securities Act may be required on
         the part of any indemnified party, then the Company and the Purchaser
         shall contribute to the aggregate losses, claims, damages or
         liabilities to which they may be subject (which shall, for all purposes
         of this Agreement, include, but not be limited to, all reasonable costs
         of defense and investigation and all reasonable attorneys' fees), in
         either such case (after contribution from others) on the basis of
         relative fault as well as any other relevant equitable considerations.
         The relative fault shall be determined by reference to, among other
         things, whether the untrue or alleged untrue statement of a material
         fact or the omission or alleged omission to state a material fact
         relates to information supplied by the Company on the one hand or the
         applicable Distributing Purchaser on the other hand, and the parties'
         relative intent, knowledge, access to information and opportunity to
         correct or prevent such statement or omission. The Company and the
         Purchaser agree that it would not be just and equitable if contribution
         pursuant to this Section 7 were determined by pro rata allocation or by
         any other method of allocation which does not take account of the
         equitable considerations referred to in this Section 7. The amount paid
         or payable by an indemnified party as a result of the losses, claims,
         damages or liabilities (or actions in respect thereof) referred to
         above in this Section 7 shall be deemed to include any legal or other
         expenses reasonably incurred by such indemnified party in connection
         with investigating or defending any such action or claim. No person
         guilty of fraudulent misrepresentation (within the meaning of Section
         11(f) of the Securities Act) shall be entitled to contribution from any

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         person who was not guilty of such fraudulent misrepresentation. Any
         party entitled to contribution will, promptly after receipt of notice
         of commencement of any action, suit or proceeding against such party in
         respect of which a claim for contribution may be made against another
         party or parties under this Section 7, notify such party or parties
         from whom contribution may be sought, but the omission so to notify
         such party or parties from whom contribution may be sought shall not
         relieve such party from any other obligation it or they may have
         thereunder or otherwise under this Section 7. No party shall be liable
         for contribution with respect to any action, suit, proceeding or claim
         settled without its prior written consent, which consent shall not be
         unreasonably withheld, conditioned or delayed.

                  (b) Notwithstanding any other provision of this Section 7, in
         no event shall any (i) Purchaser be required to undertake liability to
         any person under this Section 7 for any amounts in excess of the dollar
         amount of the gross proceeds to be received by the Purchaser from the
         sale of the Purchaser's Registrable Securities pursuant to any
         Registration Statement under which such Registrable Securities are to
         be registered under the Securities Act and (ii) underwriter be required
         to undertake liability to any person hereunder for any amounts in
         excess of the aggregate discount, commission or other compensation
         payable to such underwriter with respect to the Registrable Securities
         underwritten by it and distributed pursuant to the Registration
         Statement.

         Section 8. NOTICES. All notices, demands, requests, consents,
approvals, and other communications required or permitted hereunder shall be in
writing and, unless otherwise specified herein, shall be delivered as set forth
in the Purchase Agreement.

         Section 9. ASSIGNMENT. Neither this Agreement nor any rights of the
Purchaser or the Company hereunder may be assigned by either party to any other
person. Notwithstanding the foregoing, (a) the provisions of this Agreement
shall inure to the benefit of, and be enforceable by, any transferee of any of
the Common Stock purchased by the Purchaser pursuant to the Purchase Agreement
other than through open-market sales, and (b) upon the prior written consent of
the Company, which consent shall not be unreasonably withheld or delayed in the
case of an assignment to an affiliate of the Purchaser, the Purchaser's interest
in this Agreement may be assigned at any time, in whole or in part, to any other
person or entity (including any affiliate of the Purchaser) who agrees to be
bound hereby.

         Section 10. COUNTERPARTS/FACSIMILE. This Agreement may be executed in
two or more counterparts, each of which shall constitute an original, but all of
which, when together shall constitute but one and the same instrument, and shall
become effective when one or more counterparts have been signed by each party
hereto and delivered to the other party. In lieu of the original, a facsimile
transmission or copy of the original shall be as effective and enforceable as
the original.

         Section 11. REMEDIES AND SEVERABILITY. The remedies provided in this
Agreement are cumulative and not exclusive of any remedies provided by law. If
any term, provision, covenant or restriction of this Agreement is held by a

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court of competent jurisdiction to be invalid, illegal, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions set forth
herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their best efforts to
find and employ an alternative means to achieve the same or substantially the
same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms, provisions, covenants
and restrictions without including any of those that may be hereafter declared
invalid, illegal, void or unenforceable.

         Section 12. CONFLICTING AGREEMENTS. The Company shall not enter into
any agreement with respect to its securities that is inconsistent with the
rights granted to the Purchasers in this Agreement or otherwise prevents the
Company from complying with all of its obligations hereunder.

         Section 13. HEADINGS. The headings in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

         Section 14. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to
contracts made in New York by persons domiciled in New York City and without
regard to its principles of conflicts of laws. The Company and the Purchaser
agree to submit themselves to the IN PERSONAM jurisdiction of the state and
federal courts situated within the Southern District of the State of New York
with regard to any controversy arising out of or relating to this Agreement. The
prevailing party shall be awarded its costs, including attorneys' fees, from the
non-prevailing party. Any party shall have the right to seek injunctive relief
from any court of competent jurisdiction in any case where such relief is
available. The prevailing party in such injunctive action shall be awarded its
costs, including attorneys' fees, from the non-prevailing party.

                           ***************************

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                 [REGISTRATION RIGHTS AGREEMENT SIGNATURE PAGE]

                  IN WITNESS WHEREOF, the parties hereto have caused this
Registration Rights Agreement to be duly executed as of the date set forth
above.

                                              US DATAWORKS, INC.

                                              By: /S/ JOHN S. REILAND
                                                  --------------------------
                                                  Name: John S. Reiland
                                                  Title: CFO

                      [PURCHASER'S SIGNATURE PAGE FOLLOWS]

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                       [PURCHASER'S SIGNATURE PAGE TO RRA]

                                            ICON INVESTORS LTD.

                                            By: /S/ PIERCE LOUGHRAN
                                                --------------------------------
                                                Name: PIERCE LOUGHRAN
                                                Title: Authorized Signatory of
                                                       COFIDES S.A., DIRECTOR of
                                                       ICON INVESTORS LTD.

                                       12<PAGE>
                                                                     EXHIBIT 4.2

                                                                       EXHIBIT B

                          REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (this "AGREEMENT") is made and
entered into as of June 30, 2003, by and among US Dataworks, Inc., a Nevada
corporation (the "COMPANY"), and the investors signatory hereto (each a
"PURCHASER" and collectively, the "PURCHASERS").

         This Agreement is made pursuant to the Securities Purchase Agreement,
dated as of the date hereof among the Company and the Purchasers (the "PURCHASE
AGREEMENT").

                  The Company and the Purchasers hereby agree as follows:

         1. DEFINITIONS. Capitalized terms used and not otherwise defined herein
that are defined in the Purchase Agreement shall have the meanings given such
terms in the Purchase Agreement. As used in this Agreement, the following terms
shall have the following meanings:

                  "EFFECTIVENESS DATE" means, with respect to the Registration
         Statement required to be filed hereunder and subject to extension
         pursuant to Section 2(a), the earlier of (a) the 90th calendar day
         following the Closing Date and (b) the fifth Trading Day following the
         date on which the Company is notified by the Commission that the
         Registration Statement will not be reviewed or is no longer subject to
         further review and comments.

                  "EFFECTIVENESS PERIOD" shall have the meaning set forth in
         Section 2(a).

                  "FILING DATE" means, with respect to the Registration
         Statement required to be filed hereunder subject to extension pursuant
         to Section 2(a), the 45th calendar day following the Closing Date.

                  "HOLDER" or "HOLDERS" means the holder or holders, as the case
         may be, from time to time of Registrable Securities.

                  "INDEMNIFIED PARTY" shall have the meaning set forth in
         Section 5(c).

                  "INDEMNIFYING PARTY" shall have the meaning set forth in
         Section 5(c).

                  "LOSSES" shall have the meaning set forth in Section 5(a).

                  "PROCEEDING" means an action, claim, suit, investigation or
         proceeding (including, without limitation, an investigation or partial
         proceeding, such as a deposition), whether commenced or threatened.

                  "PROSPECTUS" means the prospectus included in the Registration
         Statement (including, without limitation, a prospectus that includes
         any information previously omitted from a prospectus filed as part of
         an effective registration statement in reliance upon Rule 430A
         promulgated under the Securities Act), as amended or supplemented by
         any prospectus supplement, with respect to the terms of the offering of
         any portion of the Registrable Securities covered by the Registration
         Statement, and all other amendments and supplements to the Prospectus,
         including post-effective amendments, and all material incorporated by
         reference or deemed to be incorporated by reference in such Prospectus.

                                      -1-
<PAGE>

                  "REGISTRABLE SECURITIES" means the Shares, the Warrant Shares,
         together with any shares of Common Stock issued or issuable upon any
         stock split, dividend or other distribution, recapitalization or
         similar event with respect to the foregoing or in connection with any
         anti-dilution provisions in the Warrant.

                  "REGISTRATION STATEMENT" means the registration statements
         required to be filed hereunder, including (in each case) the
         Prospectus, amendments and supplements to the registration statement or
         Prospectus, including pre- and post-effective amendments, all exhibits
         thereto, and all material incorporated by reference or deemed to be
         incorporated by reference in the registration statement.

                  "RULE 415" means Rule 415 promulgated by the Commission
         pursuant to the Securities Act, as such Rule may be amended from time
         to time, or any similar rule or regulation hereafter adopted by the
         Commission having substantially the same effect as such Rule.

                  "RULE 424" means Rule 424 promulgated by the Commission
         pursuant to the Securities Act, as such Rule may be amended from time
         to time, or any similar rule or regulation hereafter adopted by the
         Commission having substantially the same effect as such Rule.

                  "SECURITIES ACT" means the Securities Act of 1933, as amended.

         2. REGISTRATION.

                  (a) On or prior to the Filing Date, the Company shall prepare
         and file with the Commission the Registration Statement covering the
         resale of all of the Registrable Securities for an offering to be made
         on a continuous basis pursuant to Rule 415. The Registration Statement
         required hereunder shall be on Form S-3 (except if the Company is not
         then eligible to register for resale the Registrable Securities on Form
         S-3, in which case the Registration shall be on another appropriate
         form in accordance herewith). The Registration Statement required
         hereunder shall contain (except if otherwise directed by the Holders)
         the "PLAN OF DISTRIBUTION" attached hereto as ANNEX A. The Company
         shall cause the Registration Statement to become effective and remain
         effective as provided herein. The Company shall use its commercially
         reasonable efforts to cause the Registration Statement to be declared
         effective under the Securities Act as promptly as possible after the
         filing thereof, but in any event not later than the Effectiveness Date,
         and shall use its commercially reasonable efforts to keep the
         Registration Statement continuously effective under the Securities Act
         until the date which is one year following the issuance of the
         Registrable Securities or such later date when all Registrable
         Securities covered by the Registration Statement (a) have been sold
         pursuant to the Registration Statement or an exemption from the
         registration requirements of the Securities Act or (b) may be sold
         without volume restrictions pursuant to Rule 144(k) as determined by
         the counsel to the Company pursuant to a written opinion letter to such
         effect, addressed and acceptable to the Company's transfer agent and
         the affected Holders (the "EFFECTIVENESS PERIOD").

                                      -2-
<PAGE>

                  (b) If: (i) a Registration Statement is not filed on or prior
         to its Filing Date (if the Company files a Registration Statement
         without affording the Holder the opportunity to review and comment on
         the same as required by Section 3(a), the Company shall not be deemed
         to have satisfied this clause (i)); PROVIDED, HOWEVER, that if a Holder
         fails to provide the Company with any information that is required to
         be provided in the Registration Statement with respect to such Holder
         pursuant to Section 3(k), then the Filing Date shall be extended until
         two Trading Days following the date of receipt by the Company of such
         required information, or (ii) the Company fails to file with the
         Commission a request for acceleration in accordance with Rule 461
         promulgated under the Securities Act, within five Trading Days of the
         date that the Company is notified (orally or in writing, whichever is
         earlier) by the Commission that a Registration Statement will not be
         "reviewed," or not subject to further review, or (iii) prior to the
         date when such Registration Statement is first declared effective by
         the Commission, the Company fails to file a pre-effective amendment and
         otherwise respond in writing to comments made by the Commission in
         respect of such Registration Statement within ten Trading Days after
         the receipt of comments by or notice from the Commission that such
         amendment is required in order for a Registration Statement to be
         declared effective, or (iv) a Registration Statement filed or required
         to be filed hereunder is not declared effective by the Commission on or
         before the Effectiveness Date, or (v) after a Registration Statement is
         first declared effective by the Commission, it ceases for any reason to
         remain continuously effective as to all Registrable Securities for
         which it is required to be effective, or the Holders are not permitted
         to utilize the Prospectus therein to resell such Registrable
         Securities, for in any such cases ten Trading Days (which need not be
         consecutive days) in the aggregate during any 12-month period (any such
         failure or breach being referred to as an "EVENT," and for purposes of
         clause (i) or (iv) the date on which such Event occurs, or for purposes
         of clause (ii) the date on which such five Trading Day period is
         exceeded, or for purposes of clauses (iii) the date which such ten
         Trading Day period is exceeded, or for purposes of clause (v) the date
         on which such ten Trading Day period is exceeded being referred to as
         "EVENT DATE"), then in addition to any other rights the Holders may
         have hereunder or under applicable law: (x) on each such Event Date the
         Company shall pay to each Holder an amount in cash, as liquidated
         damages and not as a penalty, equal to 2% of the aggregate purchase
         price paid by such Holder pursuant to the Purchase Agreement for any
         Registrable Securities then held by such Holder; and (y) on each
         monthly anniversary of each such Event Date (if the applicable Event
         shall not have been cured by such date) until the applicable Event is
         cured, the Company shall pay to each Holder an amount in cash, as
         liquidated damages and not as a penalty, equal to 2% of the aggregate
         purchase price paid by such Holder pursuant to the Purchase Agreement
         for any Registrable Securities then held by such Holder. If the Company
         fails to pay any liquidated damages pursuant to this Section in full
         within seven days after the date payable, the Company will pay interest
         thereon at a rate of 18% per annum (or such lesser maximum amount that
         is permitted to be paid by applicable law) to the Holder, accruing
         daily from the date such liquidated damages are due until such amounts,
         plus all such interest thereon, are paid in full.

                                      -3-
<PAGE>

                  (c) If during the Effectiveness Period, the number of
         Registrable Securities at any time exceeds 100% of the number of shares
         of Common Stock then registered in a Registration Statement, then the
         Company shall file as soon as reasonably practicable but in any case
         prior to the 30th day following the date such number is exceeded, an
         additional Registration Statement covering the resale of by the Holders
         of not less than all of such Registrable Securities and the Company
         shall use commercially reasonable efforts to cause such Registration
         Statement to be declared effective as soon as reasonably practicable
         thereafter.

         3. REGISTRATION PROCEDURES

         In connection with the Company's registration obligations hereunder,
the Company shall:

                  (a) Not less than three Trading Days prior to the filing of
         the Registration Statement or any related Prospectus or any amendment
         or supplement thereto, the Company shall, (i) furnish to the Holders
         copies of all such documents proposed to be filed (including documents
         incorporated or deemed incorporated by reference to the extent
         requested by such Person) which documents will be subject to the review
         of such Holders, and (ii) cause its officers and directors, counsel and
         independent certified public accountants to respond to such inquiries
         as shall be necessary, in the reasonable opinion of respective counsel
         to conduct a reasonable investigation within the meaning of the
         Securities Act. The Company shall not file the Registration Statement
         or any such Prospectus or any amendments or supplements thereto to
         which the Holders of a majority of the Registrable Securities shall
         reasonably object in good faith.

                  (b) (i) Prepare and file with the Commission such amendments,
         including post-effective amendments, to the Registration Statement and
         the Prospectus used in connection therewith as may be necessary to keep
         the Registration Statement continuously effective as to the applicable
         Registrable Securities for the Effectiveness Period and prepare and
         file with the Commission such additional Registration Statements in
         order to register for resale under the Securities Act all of the
         Registrable Securities; (ii) cause the related Prospectus to be amended
         or supplemented by any required Prospectus supplement, and as so
         supplemented or amended to be filed pursuant to Rule 424; (iii) respond
         as promptly as reasonably possible, and in any event within ten Trading
         Days, to any comments received from the Commission with respect to the
         Registration Statement or any amendment thereto and, as promptly as
         reasonably possible, upon request, provide the Holders true and
         complete copies of all correspondence from and to the Commission
         relating to the Registration Statement; and (iv) comply in all material
         respects with the provisions of the Securities Act and the Exchange Act
         with respect to the disposition of all Registrable Securities covered
         by the Registration Statement during the applicable period in
         accordance with the intended methods of disposition by the Holders
         thereof set forth in the Registration Statement as so amended or in
         such Prospectus as so supplemented.

                  (c) Notify the Holders of Registrable Securities to be sold as
         promptly as reasonably possible (and, in the case of (i)(A) below, not
         less than two Trading Days prior to such filing) and (if requested by

                                      -4-
<PAGE>

         any such Person) confirm such notice in writing promptly following the
         day (i)(A) when a Prospectus or any Prospectus supplement or
         post-effective amendment to the Registration Statement is proposed to
         be filed; (B) when the Commission notifies the Company whether there
         will be a "review" of the Registration Statement and whenever the
         Commission comments in writing on the Registration Statement (the
         Company shall upon request provide true and complete copies thereof and
         all written responses thereto to each of the Holders); and (C) with
         respect to the Registration Statement or any post-effective amendment,
         when the same has become effective; (ii) of any request by the
         Commission or any other Federal or state governmental authority during
         the period of effectiveness of the Registration Statement for
         amendments or supplements to the Registration Statement or Prospectus
         or for additional information; (iii) of the issuance by the Commission
         or any other federal or state governmental authority of any stop order
         suspending the effectiveness of the Registration Statement covering any
         or all of the Registrable Securities or the initiation of any
         Proceedings for that purpose; (iv) of the receipt by the Company of any
         notification with respect to the suspension of the qualification or
         exemption from qualification of any of the Registrable Securities for
         sale in any jurisdiction, or the initiation or threatening of any
         Proceeding for such purpose; and (v) of the occurrence of any event or
         passage of time that makes the financial statements included in the
         Registration Statement ineligible for inclusion therein or any
         statement made in the Registration Statement or Prospectus or any
         document incorporated or deemed to be incorporated therein by reference
         untrue in any material respect or that requires any revisions to the
         Registration Statement, Prospectus or other documents so that, in the
         case of the Registration Statement or the Prospectus, as the case may
         be, it will not contain any untrue statement of a material fact or omit
         to state any material fact required to be stated therein or necessary
         to make the statements therein, in light of the circumstances under
         which they were made, not misleading.

                  (d) Use its commercially reasonable efforts to avoid the
         issuance of, or, if issued, obtain the withdrawal of (i) any order
         suspending the effectiveness of the Registration Statement, or (ii) any
         suspension of the qualification (or exemption from qualification) of
         any of the Registrable Securities for sale in any jurisdiction, at the
         earliest practicable moment.

                  (e) Furnish to each Holder, without charge, at least one
         conformed copy of the Registration Statement and each amendment
         thereto, including financial statements and schedules, all documents
         incorporated or deemed to be incorporated therein by reference to the
         extent requested by such Person, and all exhibits to the extent
         requested by such Person (including those previously furnished or
         incorporated by reference) promptly after the filing of such documents
         with the Commission.

                  (f) Promptly deliver to each Holder, without charge, as many
         copies of the Prospectus or Prospectuses (including each form of
         prospectus) and each amendment or supplement thereto as such Persons
         may reasonably request in connection with resales by the Holder of
         Registrable Securities. The Company hereby consents to the use of such
         Prospectus and each amendment or supplement thereto by each of the
         selling Holders in connection with the offering and sale of the
         Registrable Securities covered by such Prospectus and any amendment or
         supplement thereto, except after the giving on any notice pursuant to
         Section 3(c).

                                      -5-
<PAGE>

                  (g) Prior to any resale of Registrable Securities by a Holder,
         use its commercially reasonable efforts to register or qualify or
         cooperate with the selling Holders in connection with the registration
         or qualification (or exemption from the Registration or qualification)
         of such Registrable Securities for the resale by the Holder under the
         securities or Blue Sky laws of such jurisdictions within the United
         States as any Holder reasonably requests in writing, to keep each the
         Registration or qualification (or exemption therefrom) effective during
         the Effectiveness Period and to do any and all other acts or things
         reasonably necessary to enable the disposition in such jurisdictions of
         the Registrable Securities covered by the Registration Statement;
         PROVIDED, that the Company shall not be required to qualify generally
         to do business in any jurisdiction where it is not then so qualified,
         subject the Company to any material tax in any such jurisdiction where
         it is not then so subject or file a general consent to service of
         process in any such jurisdiction.

                  (h) If requested by the Holders, cooperate with the Holders to
         facilitate the timely preparation and delivery of certificates
         representing Registrable Securities to be delivered to a transferee
         pursuant to the Registration Statement, which certificates shall be
         free, to the extent permitted by the Purchase Agreement, of all
         restrictive legends, and to enable such Registrable Securities to be in
         such denominations and registered in such names as any such Holders may
         request.

                  (i) Upon the occurrence of any event contemplated by Section
         3(c)(v), as promptly as reasonably possible, prepare a supplement or
         amendment, including a post-effective amendment, to the Registration
         Statement or a supplement to the related Prospectus or any document
         incorporated or deemed to be incorporated therein by reference, and
         file any other required document so that, as thereafter delivered,
         neither the Registration Statement nor such Prospectus will contain an
         untrue statement of a material fact or omit to state a material fact
         required to be stated therein or necessary to make the statements
         therein, in light of the circumstances under which they were made, not
         misleading.

                  (j) Comply with all applicable rules and regulations of the
         Commission.

                  (k) The Company may require each selling Holder to furnish to
         the Company a certified statement as to the number of shares of Common
         Stock beneficially owned by such Holder and, if required by the
         Commission, the person thereof that has voting and dispositive control
         over the Shares.

         4. REGISTRATION EXPENSES. All fees and expenses incident to the
performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to
the Registration Statement. The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses (A) with respect to filings
required to be made with the Trading Market on which the Common Stock is then
listed for trading, and (B) in compliance with applicable state securities or

                                      -6-
<PAGE>

Blue Sky laws), (ii) printing expenses (including, without limitation, expenses
of printing certificates for Registrable Securities and of printing prospectuses
if the printing of prospectuses is reasonably requested by the holders of a
majority of the Registrable Securities included in the Registration Statement),
(iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of
counsel for the Company, (v) Securities Act liability insurance, if the Company
so desires such insurance, and (vi) fees and expenses of all other Persons
retained by the Company in connection with the consummation of the transactions
contemplated by this Agreement. In addition, the Company shall be responsible
for all of its internal expenses incurred in connection with the consummation of
the transactions contemplated by this Agreement (including, without limitation,
all salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit and the fees and expenses
incurred in connection with the listing of the Registrable Securities on any
securities exchange as required hereunder.

         5. INDEMNIFICATION

                  (a) INDEMNIFICATION BY THE COMPANY. The Company shall,
         notwithstanding any termination of this Agreement, indemnify and hold
         harmless each Holder, the officers, directors, agents and employees of
         each of them, each Person who controls any such Holder (within the
         meaning of Section 15 of the Securities Act or Section 20 of the
         Exchange Act) and the officers, directors, agents and employees of each
         such controlling Person, to the fullest extent permitted by applicable
         law, from and against any and all losses, claims, damages, liabilities,
         costs (including, without limitation, reasonable attorneys' fees) and
         expenses (collectively, "LOSSES"), as incurred, to the extent arising
         out of or relating to any untrue or alleged untrue statement of a
         material fact contained in the Registration Statement, any Prospectus
         or any form of prospectus or in any amendment or supplement thereto or
         in any preliminary prospectus, or arising out of or relating to any
         omission or alleged omission of a material fact required to be stated
         therein or necessary to make the statements therein (in the case of any
         Prospectus or form of prospectus or supplement thereto, in light of the
         circumstances under which they were made) not misleading, except to the
         extent, but only to the extent, that (1) such untrue statements or
         omissions are based solely upon information regarding such Holder
         furnished in writing to the Company by such Holder expressly for use
         therein, or to the extent that such information relates to such Holder
         or such Holder's proposed method of distribution of Registrable
         Securities and was reviewed and expressly approved in writing by such
         Holder expressly for use in the Registration Statement, such Prospectus
         or such form of Prospectus or in any amendment or supplement thereto
         (it being understood that the Holder has approved Annex A hereto for
         this purpose) or (2) in the case of an occurrence of an event of the
         type specified in Section 3(c)(ii)-(v), the use by such Holder of an
         outdated or defective Prospectus after the Company has notified such
         Holder in writing that the Prospectus is outdated or defective and
         prior to the receipt by such Holder of the Advice contemplated in
         Section 6(d). The Company shall notify the Holders promptly of the
         institution, threat or assertion of any Proceeding of which the Company
         is aware in connection with the transactions contemplated by this
         Agreement.

                  (b) INDEMNIFICATION BY HOLDERS. Each Holder shall, severally
         and not jointly, indemnify and hold harmless the Company, its
         directors, officers, agents and employees, each Person who controls the
         Company (within the meaning of Section 15 of the Securities Act and

                                      -7-
<PAGE>

         Section 20 of the Exchange Act), and the directors, officers, agents or
         employees of such controlling Persons, to the fullest extent permitted
         by applicable law, from and against all Losses, as incurred, to the
         extent arising out of or based upon: (x) such Holder's failure to
         comply with the prospectus delivery requirements of the Securities Act
         or (y) any untrue or alleged untrue statement of a material fact
         contained in any Registration Statement, any Prospectus, or any form of
         prospectus, or in any amendment or supplement thereto or in any
         preliminary prospectus, or arising out of or relating to any omission
         or alleged omission of a material fact required to be stated therein or
         necessary to make the statements therein not misleading (i) to the
         extent, but only to the extent, that such untrue statement or omission
         is contained in any information so furnished in writing by such Holder
         to the Company specifically for inclusion in the Registration Statement
         or such Prospectus or (ii) to the extent that (1) such untrue
         statements or omissions are based solely upon information regarding
         such Holder furnished in writing to the Company by such Holder
         expressly for use therein, or to the extent that such information
         relates to such Holder or such Holder's proposed method of distribution
         of Registrable Securities and was reviewed and expressly approved in
         writing by such Holder expressly for use in the Registration Statement
         (it being understood that the Holder has approved Annex A hereto for
         this purpose), such Prospectus or such form of Prospectus or in any
         amendment or supplement thereto or (2) in the case of an occurrence of
         an event of the type specified in Section 3(c)(ii)-(v), the use by such
         Holder of an outdated or defective Prospectus after the Company has
         notified such Holder in writing that the Prospectus is outdated or
         defective and prior to the receipt by such Holder of the Advice
         contemplated in Section 6(d). In no event shall the liability of any
         selling Holder hereunder be greater in amount than the dollar amount of
         the net proceeds received by such Holder upon the sale of the
         Registrable Securities giving rise to such indemnification obligation.

                  (c) CONDUCT OF INDEMNIFICATION PROCEEDINGS. If any Proceeding
         shall be brought or asserted against any Person entitled to indemnity
         hereunder (an "INDEMNIFIED PARTY"), such Indemnified Party shall
         promptly notify the Person from whom indemnity is sought (the
         "INDEMNIFYING PARTY") in writing, and the Indemnifying Party shall have
         the right to assume the defense thereof, including the employment of
         counsel reasonably satisfactory to the Indemnified Party and the
         payment of all fees and expenses incurred in connection with defense
         thereof; provided, that the failure of any Indemnified Party to give
         such notice shall not relieve the Indemnifying Party of its obligations
         or liabilities pursuant to this Agreement, except (and only) to the
         extent that it shall be finally determined by a court of competent
         jurisdiction (which determination is not subject to appeal or further
         review) that such failure shall have prejudiced the Indemnifying Party.

                  An Indemnified Party shall have the right to employ separate
         counsel in any such Proceeding and to participate in the defense
         thereof, but the fees and expenses of such counsel shall be at the
         expense of such Indemnified Party or Parties unless: (1) the
         Indemnifying Party has agreed in writing to pay such fees and expenses;
         (2) the Indemnifying Party shall have failed promptly to assume the
         defense of such Proceeding and to employ counsel reasonably
         satisfactory to such Indemnified Party in any such Proceeding; or (3)

                                      -8-
<PAGE>

         the named parties to any such Proceeding (including any impleaded
         parties) include both such Indemnified Party and the Indemnifying
         Party, and such Indemnified Party shall have been advised by counsel
         that a conflict of interest is likely to exist if the same counsel were
         to represent such Indemnified Party and the Indemnifying Party (in
         which case, if such Indemnified Party notifies the Indemnifying Party
         in writing that it elects to employ separate counsel at the expense of
         the Indemnifying Party, the Indemnifying Party shall not have the right
         to assume the defense thereof and the reasonable fees and expenses of
         one separate counsel shall be at the expense of the Indemnifying
         Party). The Indemnifying Party shall not be liable for any settlement
         of any such Proceeding effected without its written consent, which
         consent shall not be unreasonably withheld. No Indemnifying Party
         shall, without the prior written consent of the Indemnified Party,
         effect any settlement of any pending Proceeding in respect of which any
         Indemnified Party is a party, unless such settlement includes an
         unconditional release of such Indemnified Party from all liability on
         claims that are the subject matter of such Proceeding.

                  All reasonable fees and expenses of the Indemnified Party
         (including reasonable fees and expenses to the extent incurred in
         connection with investigating or preparing to defend such Proceeding in
         a manner not inconsistent with this Section) shall be paid to the
         Indemnified Party, as incurred, within ten Trading Days of written
         notice thereof to the Indemnifying Party; PROVIDED, that the
         Indemnified Party shall promptly reimburse the Indemnifying Party for
         that portion of such fees and expenses applicable to such actions for
         which such Indemnified Party is not entitled to indemnification
         hereunder, determined based upon the relative faults of the parties.

                  (d) CONTRIBUTION. If a claim for indemnification under Section
         5(a) or 5(b) is unavailable to an Indemnified Party (by reason of
         public policy or otherwise), then each Indemnifying Party, in lieu of
         indemnifying such Indemnified Party, shall contribute to the amount
         paid or payable by such Indemnified Party as a result of such Losses,
         in such proportion as is appropriate to reflect the relative fault of
         the Indemnifying Party and Indemnified Party in connection with the
         actions, statements or omissions that resulted in such Losses as well
         as any other relevant equitable considerations. The relative fault of
         such Indemnifying Party and Indemnified Party shall be determined by
         reference to, among other things, whether any action in question,
         including any untrue or alleged untrue statement of a material fact or
         omission or alleged omission of a material fact, has been taken or made
         by, or relates to information supplied by, such Indemnifying Party or
         Indemnified Party, and the parties' relative intent, knowledge, access
         to information and opportunity to correct or prevent such action,
         statement or omission. The amount paid or payable by a party as a
         result of any Losses shall be deemed to include, subject to the
         limitations set forth in Section 5(c), any reasonable attorneys' or
         other reasonable fees or expenses incurred by such party in connection
         with any Proceeding to the extent such party would have been
         indemnified for such fees or expenses if the indemnification provided
         for in this Section was available to such party in accordance with its
         terms.

                  The parties hereto agree that it would not be just and
         equitable if contribution pursuant to this Section 5(d) were determined
         by pro rata allocation or by any other method of allocation that does
         not take into account the equitable considerations referred to in the
         immediately preceding paragraph. Notwithstanding the provisions of this

                                      -9-
<PAGE>

         Section 5(d), no Holder shall be required to contribute, in the
         aggregate, any amount in excess of the amount by which the proceeds
         actually received by such Holder from the sale of the Registrable
         Securities subject to the Proceeding exceeds the amount of any damages
         that such Holder has otherwise been required to pay by reason of such
         untrue or alleged untrue statement or omission or alleged omission,
         except in the case of fraud by such Holder. The indemnity and
         contribution agreements contained in this Section are in addition to
         any liability that the Indemnifying Parties may have to the Indemnified
         Parties.

         6. MISCELLANEOUS

                  (a) REMEDIES. In the event of a breach by the Company or by a
         Holder, of any of their obligations under this Agreement, each Holder
         or the Company, as the case may be, in addition to being entitled to
         exercise all rights granted by law and under this Agreement, including
         recovery of damages, will be entitled to specific performance of its
         rights under this Agreement. The Company and each Holder agree that
         monetary damages would not provide adequate compensation for any losses
         incurred by reason of a breach by it of any of the provisions of this
         Agreement and hereby further agrees that, in the event of any action
         for specific performance in respect of such breach, it shall waive the
         defense that a remedy at law would be adequate.

                  (b) COMPLIANCE. Each Holder covenants and agrees that it will
         comply with the prospectus delivery requirements of the Securities Act
         as applicable to it in connection with sales of Registrable Securities
         pursuant to the Registration Statement.

                  (c) DISCONTINUED DISPOSITION. Each Holder agrees by its
         acquisition of such Registrable Securities that, upon receipt of a
         notice from the Company of the occurrence of any event of the kind
         described in Section 3(c), such Holder will forthwith discontinue
         disposition of such Registrable Securities under the Registration
         Statement until such Holder's receipt of the copies of the supplemented
         Prospectus and/or amended Registration Statement or until it is advised
         in writing (the "ADVICE") by the Company that the use of the applicable
         Prospectus may be resumed, and, in either case, has received copies of
         any additional or supplemental filings that are incorporated or deemed
         to be incorporated by reference in such Prospectus or Registration
         Statement. The Company may provide appropriate stop orders to enforce
         the provisions of this paragraph.

                  (d) PIGGY-BACK REGISTRATIONS. If at any time during the
         Effectiveness Period there is not an effective Registration Statement
         covering all of the Registrable Securities and the Company shall
         determine to prepare and file with the Commission a registration
         statement relating to an offering for its own account or the account of
         others under the Securities Act of any of its equity securities, other
         than on Form S-4 or Form S-8 (each as promulgated under the Securities
         Act) or their then equivalents relating to equity securities to be
         issued solely in connection with any acquisition of any entity or

                                      -10-
<PAGE>

         business or equity securities issuable in connection with the stock
         option or other employee benefit plans, then the Company shall send to
         each Holder a written notice of such determination and, if within
         fifteen days after the date of such notice, any such Holder shall so
         request in writing, the Company shall include in such registration
         statement all or any part of such Registrable Securities such Holder
         requests to be registered, subject to customary underwriter cutbacks
         applicable to all holders of registration rights.

                  (e) AMENDMENTS AND WAIVERS. The provisions of this Agreement,
         including the provisions of this sentence, may not be amended, modified
         or supplemented, and waivers or consents to departures from the
         provisions hereof may not be given, unless the same shall be in writing
         and signed by the Company and each Holder of the then outstanding
         Registrable Securities.

                  (f) NOTICES. Any and all notices or other communications or
         deliveries required or permitted to be provided hereunder shall be in
         writing and shall be deemed given and effective on the earliest of (i)
         the date of transmission, if such notice or communication is delivered
         via facsimile at the facsimile number provided for below prior to 6:30
         p.m. (New York City time) on a Trading Day, (ii) the Trading Day after
         the date of transmission, if such notice or communication is delivered
         via facsimile at the facsimile number provided for below later than
         6:30 p.m. (New York City time) on any date and earlier than 11:59 p.m.
         (New York City time) on such date, (iii) the Trading Day following the
         date of mailing, if sent by nationally recognized overnight courier
         service, or (iv) upon actual receipt by the party to whom such notice
         is required to be given. The address for such notices and
         communications shall be delivered and addressed as set forth in the
         Purchase Agreement

                  (g) SUCCESSORS AND ASSIGNS. This Agreement shall inure to the
         benefit of and be binding upon the successors and permitted assigns of
         each of the parties and shall inure to the benefit of each Holder. Each
         Holder may assign their respective rights hereunder in the manner and
         to the Persons as permitted under the Purchase Agreement.

                  (h) EXECUTION AND COUNTERPARTS. This Agreement may be executed
         in any number of counterparts, each of which when so executed shall be
         deemed to be an original and, all of which taken together shall
         constitute one and the same Agreement. In the event that any signature
         is delivered by facsimile transmission, such signature shall create a
         valid binding obligation of the party executing (or on whose behalf
         such signature is executed) the same with the same force and effect as
         if such facsimile signature were the original thereof.

                  (i) GOVERNING LAW. All questions concerning the construction,
         validity, enforcement and interpretation of this Agreement shall be
         governed by and construed and enforced in accordance with the internal
         laws of the State of New York, without regard to the principles of
         conflicts of law thereof. Each party agrees that all legal proceedings
         concerning the interpretations, enforcement and defense of the
         transactions contemplated by this Agreement (whether brought against a
         party hereto or its respective affiliates, directors, officers,
         shareholders, employees or agents) shall be commenced exclusively in
         the state and federal courts sitting in the City of New York, New York.
         Each party hereto hereby irrevocably submits to the exclusive

                                      -11-
<PAGE>

         jurisdiction of the state and federal courts sitting in the City of New
         York, New York for the adjudication of any dispute hereunder or in
         connection herewith or with any transaction contemplated hereby or
         discussed herein (including with respect to the enforcement of the any
         of this Agreement), and hereby irrevocably waives, and agrees not to
         assert in any suit, action or proceeding, any claim that it is not
         personally subject to the jurisdiction of any such court, that such
         suit, action or proceeding is improper. Each party hereto hereby
         irrevocably waives personal service of process and consents to process
         being served in any such suit, action or proceeding by delivering a
         copy thereof via overnight delivery (with evidence of delivery) to such
         party at the address in effect for notices to it under this Agreement
         and agrees that such service shall constitute good and sufficient
         service of process and notice thereof. Nothing contained herein shall
         be deemed to limit in any way any right to serve process in any manner
         permitted by law. Each party hereto hereby irrevocably waives, to the
         fullest extent permitted by applicable law, any and all right to trial
         by jury in any legal proceeding arising out of or relating to this
         Agreement or the transactions contemplated hereby. If either party
         shall commence an action or proceeding to enforce any provisions of
         this Agreement, then the prevailing party in such action or proceeding
         shall be reimbursed by the other party for its attorneys fees and other
         costs and expenses incurred with the investigation, preparation and
         prosecution of such action or proceeding.

                  (j) CUMULATIVE REMEDIES. The remedies provided herein are
         cumulative and not exclusive of any remedies provided by law.

                  (k) SEVERABILITY. If any term, provision, covenant or
         restriction of this Agreement is held by a court of competent
         jurisdiction to be invalid, illegal, void or unenforceable, the
         remainder of the terms, provisions, covenants and restrictions set
         forth herein shall remain in full force and effect and shall in no way
         be affected, impaired or invalidated, and the parties hereto shall use
         their commercially reasonable efforts to find and employ an alternative
         means to achieve the same or substantially the same result as that
         contemplated by such term, provision, covenant or restriction. It is
         hereby stipulated and declared to be the intention of the parties that
         they would have executed the remaining terms, provisions, covenants and
         restrictions without including any of such that may be hereafter
         declared invalid, illegal, void or unenforceable.

                  (l) HEADINGS. The headings in this Agreement are for
         convenience of reference only and shall not limit or otherwise affect
         the meaning hereof.

                  (m) INDEPENDENT NATURE OF PURCHASERS' OBLIGATIONS AND RIGHTS.
         The obligations of each Purchaser hereunder is several and not joint
         with the obligations of any other Purchaser hereunder, and no Purchaser
         shall be responsible in any way for the performance of the obligations
         of any other Purchaser hereunder. Nothing contained herein or in any
         other agreement or document delivered at any closing, and no action
         taken by any Purchaser pursuant hereto or thereto, shall be deemed to
         constitute the Purchasers as a partnership, an association, a joint
         venture or any other kind of entity, or create a presumption that the
         Purchasers are in any way acting in concert with respect to such
         obligations or the transactions contemplated by this Agreement. Each
         Purchaser shall be entitled to protect and enforce its rights,
         including without limitation the rights arising out of this Agreement,
         and it shall not be necessary for any other Purchaser to be joined as
         an additional party in any proceeding for such purpose.

                            *************************

                                      -12-
<PAGE>

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

                                            US DATAWORKS, INC.

                                            By: /S/ JOHN S. REILAND
                                                --------------------------------
                                                Name: John S. Reiland
                                                Title: CFO

                       [SIGNATURE PAGE OF HOLDERS FOLLOWS]

<PAGE>

                       [SIGNATURE PAGE OF HOLDERS TO RRA]

                                        BONANZA MASTER FUND LTD.

                                        By: /S/ BRIAN LADIN
                                            -----------------------------
                                            Name: Brian Ladin
                                            Title: Managing Director

                                        MERRIMAN CURHAN FORD & CO.

                                        By: /S/ D. JONATHAN MERRIMAN
                                            -----------------------------
                                            Name: DJM
                                            Title: CEO

<PAGE>

                       [SIGNATURE PAGE OF HOLDERS TO RRA]

                                        BONANZA MASTER FUND LTD.

                                        By:
                                            --------------------------------
                                            Name:
                                            Title:

                                        D. JONATHAN MERRIMAN

                                        By: /S/ D. JONATHAN MERRIMAN
                                            --------------------------------
                                            Name: D. Jonathan Merriman
                                            Title:

<PAGE>

                       [SIGNATURE PAGE OF HOLDERS TO RRA]

                                        BONANZA MASTER FUND LTD.

                                        By:
                                            -------------------------------
                                            Name: Brian Ladin
                                            Title: Managing Director

                                        KENNETH R. WERNER

                                        By: /S/ KENNETH R. WERNER
                                            ------------------------------
                                            Name: Kenneth R. Werner
                                            Title:

<PAGE>

                       [SIGNATURE PAGE OF HOLDERS TO RRA]

                                        BONANZA MASTER FUND LTD.

                                        By:
                                            ------------------------------------
                                            Name: Brian Ladin
                                            Title: Managing Director

                                        GREGORY CURHAN

                                        By: /S/ GREGORY CURHAN
                                            ------------------------------------
                                            Name: Gregory Curhan
                                            Title:

<PAGE>

                                     ANNEX A
                              PLAN OF DISTRIBUTION

         The Selling Stockholders and any of their pledgees, assignees and
successors-in-interest may, from time to time, sell any or all of their shares
of Common Stock on any stock exchange, market or trading facility on which the
shares are traded or in private transactions. These sales may be at fixed or
negotiated prices. The Selling Stockholders may use any one or more of the
following methods when selling shares:

         o        ordinary brokerage transactions and transactions in which the
                  broker-dealer solicits purchasers;

         o        block trades in which the broker-dealer will attempt to sell
                  the shares as agent but may position and resell a portion of
                  the block as principal to facilitate the transaction;

         o        purchases by a broker-dealer as principal and resale by the
                  broker-dealer for its account;

         o        an exchange distribution in accordance with the rules of the
                  applicable exchange;

         o        privately negotiated transactions;

         o        settlement of short sales;

         o        broker-dealers may agree with the Selling Stockholders to sell
                  a specified number of such shares at a stipulated price per
                  share;

         o        a combination of any such methods of sale; and

         o        any other method permitted pursuant to applicable law.

         The Selling Stockholders may also sell shares under Rule 144 under the
Securities Act, if available, rather than under this prospectus.

         Broker-dealers engaged by the Selling Stockholders may arrange for
other brokers-dealers to participate in sales. Broker-dealers may receive
commissions or discounts from the Selling Stockholders (or, if any broker-dealer
acts as agent for the purchaser of shares, from the purchaser) in amounts to be
negotiated. The Selling Stockholders do not expect these commissions and
discounts to exceed what is customary in the types of transactions involved.

         The Selling Stockholders may from time to time pledge or grant a
security interest in some or all of the shares of common stock owned by them
and, if they default in the performance of their secured obligations, the
pledgees or secured parties may offer and sell the shares of common stock from
time to time under this prospectus, or under an amendment to this prospectus
under Rule 424(b)(3) or other applicable provision of the Securities Act of 1933
amending the list of Selling Stockholders to include the pledgee, transferee or
other successors in interest as Selling Stockholders under this prospectus.

<PAGE>

         The Selling Stockholders and any broker-dealers or agents that are
involved in selling the shares may be deemed to be "underwriters" within the
meaning of the Securities Act in connection with such sales. In such event, any
commissions received by such broker-dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act. The Selling Stockholders have
informed the Company that it does not have any agreement or understanding,
directly or indirectly, with any person to distribute the Common Stock.

         The Company is required to pay all fees and expenses incident to the
registration of the shares. The Company has agreed to indemnify the Selling
Stockholders against certain losses, claims, damages and liabilities, including
liabilities under the Securities Act.

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