Document:

Unassociated Document

    EXHIBIT
      10.6

    

    

    AGREEMENT
      RELATING TO CERTAIN PROMISSORY NOTES

    

    THIS
      AGREEMENT RELATING
      TO A CERTAIN PROMISSORY NOTES
      (the
“Agreement”),
      dated
      as of August 4, 2006, between Technest Holdings, a Nevada corporation
      (“Technest”),
      E-OIR
      Technologies, Inc., a Virginia corporation (“EOIR”
and
      collectively with Technest, the “Company”),
      and
      Joseph P. Mackin (the “Holder”)
      located in Quincy, Massachusetts.

     

    WITNESSETH
      THAT

     

    WHEREAS,
      the
      Holder was a selling shareholder in that certain stock purchase agreement dated
      June 29, 2004 by and among Markland Technologies, a Florida corporation, EOIR
      and the owners of all of the capital stock of EOIR; and

     

    WHEREAS,
      as
      consideration for selling her shares of EOIR to Markland, EOIR issued to the
      Holder a promissory note with a principal amount of $662,288.00 (the
“Note”);
      and

     

    WHEREAS,
      the
      current outstanding principal on the Note is $608,954.46; and

     

    WHEREAS,
      repayment of the Note is secured by a first position security interest on all
      of
      the outstanding capital stock and assets of EOIR (the “Security
      Interest”)
      as
      well as a pledge of all of the outstanding capital stock of EOIR (the
“Pledge”);
      and

     

    WHEREAS,
      Technest is the successor to Markland’s interest in EOIR; and

     

    WHEREAS,
      Technest is undertaking a financing with Silicon Valley Bank, a California
      chartered bank (the “Bank”);
      and

     

    WHEREAS,
      the
      Bank has conditioned its provision of financing on, among other things, its
      obtaining a first position security interest in all of the assets of Technest
      and its subsidiaries; and

     

    WHEREAS,
      the
      Holder wishes, on the terms described in this Agreement and in accordance with
      the other documentation entered into between the Holder and the Bank, to
      subordinate the Security Interest to the Bank and the consideration to the
      Holder for such subordination is set forth herein;

     

    THEREFORE,
      in
      consideration of the premises, the mutual agreements set forth below and other
      good and valuable consideration, the receipt and adequacy of which are hereby
      acknowledged, the parties agree as follows:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1. Subordination
      of the Security Interest
      The
      Holder will subordinate her rights under the Security Interest and the Pledge
      to
      the Bank. In furtherance of this, on a date to be determined, but not later
      than
      three business days prior to the Closing Date (as that term is defined below),
      the Holder agrees to deliver to Technest three (3) executed copies of the
      Subordination Agreement attached hereto as Exhibit
      A
      accompanied by three (3) executed copies of the Instruction Letter to the
      Shareholder’s Representative attached hereto as Exhibit
      B.
      For
      purposes of this Agreement, the Closing Date shall mean the closing date of
      the
      financing with the Bank.

     

    2. Allonge
      On the
      Closing Date, the parties shall enter into the Allonge in the form attached
      hereto as Exhibit
      C.

     

    3. Stock
      Grant
      Not less
      than five business days following the Closing Date, Technest shall issue to
      the
      Holder that number of shares of its common stock, $.001 par value per share
      (the
“Common
      Stock”)
      a
      fraction, rounded up to the nearest whole number of shares, the numerator of
      which shall be $82,500, and the denominator of which shall be the closing price
      of the Common Stock on the Closing Date. Such issuance shall be made pursuant
      to
      a Restricted Stock Agreement in substantially the same form as attached hereto
      as Exhibit
      D.
      On the
      Closing Date, the parties shall enter into the Restricted Stock
      Agreement.

     

    4. Lack
      of Knowledge of Claims
      The
      parties do hereby represent that as of the date of this Agreement, they are
      unaware of any unasserted claims they may have against any of the other parties
      hereto.

     

    5. Governing
      law
      This
      Agreement shall be governed by the laws of the Commonwealth of Virginia, without
      regard to the principles of conflicts of law thereof.

     

    6. 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.

     

     

    /s/
      Joseph P.
      Mackin                           

    JOSEPH
      P.
      MACKIN

    

     

    E-OIR
      TECHNOLOGIES, INC.

    

    By:
      /s/
      Gino
      Pereira                              
  

    Name:
      Gino
      Pereira                                

    Title:
      Chief
      Financial
      Officer                

    

    

    TECHNEST
      HOLDINGS, INC.

    By:
      /s/
      Gino
      Pereira                               
  

    Name:
      Gino
      Pereira                               
 

    Title:
      Chief
      Financial
      Officer                 

     

     

    2First Allonge to Promissory Note of Joseph P. Mackin

    EXHIBIT
      10.7

    

    FIRST
      ALLONGE TO PROMISSORY NOTE

    

    This
      FIRST ALLONGE dated as of August 4, 2006 between E-OIR TECHNOLOGIES, INC.,
      a
      Virginia corporation (the “Maker”),
      and
      Joseph P. Mackin (the “Payee”),
      to
      the Promissory Note dated as of June 29, 2004 in the amount of Six Hundred
      Sixty-Two Thousand Two Hundred and Eighty-Eight Dollars ($662,288.00) (as the
      same may be further amended, modified or supplemented from time to time, the
      “NOTE”),
      payable to the order of the Payee and made by the Maker.

    

    RECITALS

    

    WHEREAS,
      the Maker is obtaining certain secured loans from Silicon Valley Bank, a
      California-chartered bank (the “Bank”);

    

    WHEREAS,
      the Payee has agreed to subordinate any security interest, indebtedness or
      lien
      that Payee may have in any property of the Maker; 

    

    WHEREAS,
      the Maker and the Payee have agreed to remove certain forfeiture provisions
      set
      forth in the Note; 

    

    WHEREAS,
      the Maker and the Payee have agreed to amend the Note to revise the amount
      of
      principal currently outstanding and to modify the payments of principal and
      interest due under the Note by amending the Note Payment Schedule attached
      to
      the Note as Exhibit A;

    

    NOW,
      THEREFORE, for valuable consideration, the receipt and adequacy of which are
      acknowledged, the Maker and the Payee hereby agree, with effect from the date
      first set forth above, as follows:

    

    1.
      The
      Note is hereby amended as follows:

    

    1.1
      The
      first paragraph of the Note is hereby deleted and replaced with the
      following:

    

    FOR
      VALUE
      RECEIVED, E-OIR TECHNOLOGIES, INC., a Virginia corporation (the “Maker”), hereby
      promises to pay to Joseph P. Mackin (the “Payee”), at
 __________________________________, or at any other place designated by
      the Payee in writing, in lawful money of the United States of America, the
      principal sum of Six Hundred Eight Thousand Nine Hundred Fifty-Four Dollars
      and
      Forty-Six Cents ($608,954.46), plus interest on the principal balance remaining
      outstanding from time to time at the rate of six percent (6%) per annum
      compounded monthly, in the quarterly installment amounts and on the dates set
      forth in the amortization schedule attached hereto as Exhibit A. All payments
      shall be applied first to accrued but unpaid interest owing hereunder and
      thereafter to reduce the principal balance hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.2
      The
      following paragraphs of the Note are deleted: 

    

    “Upon
      the
      occurrence of any of the following, Payee's right to receive payments under
      this
      Note shall terminate and be automatically assigned to each of the Sellers other
      than Payee then entitled to payments pursuant to a Buyer Note (as such term
      is
      defined in the Purchase Agreement, the “Buyer
      Note”
or
      “Buyer
      Notes”)
      other
      than the Payee, pro rata as set forth below (the "Assignees"),
      and
      all then unpaid amounts due hereunder, but no amounts previously paid hereunder,
      shall be paid to the Assignees thereafter:

    

    1.
      The
      Payee shall voluntarily terminate Payee's employment with Maker prior to the
      scheduled maturity date of this Note; provided that the death or permanent
      disability of the Payee shall not be considered termination of Payee's
      employment hereunder; or

    

    2.
      The
      Maker shall terminate the Payee's employment with Maker for cause prior to
      the
      scheduled maturity date of this Note; and for purposes of this Note, "cause"
      shall mean:

    

    a.
      repeated, willful and material failure to perform the Payee's duties as an
      officer or employee of the Maker, and Payee has failed to cure such breach
      or
      default within 30 days after receipt of written notice of thereof from the
      Maker; or

    

    b.
      engaging in criminal fraud, misappropriation or embezzlement in connection
      with
      the Maker's business; or

    

    c.
      Payee's conviction or a plea of nolo
      contendere
      (no
      contest) to criminal misconduct of a nature that impairs or impugns the Payee's
      ability to perform Payee's duties for the Maker;

    

    provided
      that
      the
      permanent disability of the Payee shall not be considered “cause" for purposes
      of the foregoing; and

    

    provided
      further that
      resignation following a material, adverse change to the Payee's compensation,
      benefits, responsibilities, status, seniority or working conditions (including
      forced relocation outside of Payee's then-current place of residence) shall
      not
      be deemed voluntary termination by Payee.

    

    Each
      Assignee shall be assigned a pro rata portion of the payments due hereunder
      at
      the time of assignment based on the percentage of the total initial face amount
      of all then unassigned Buyer Notes represented by the initial face amount of
      the
      Buyer Note held by such Assignee. In the event any Assignee loses the right
      to
      receive payments from a Buyer Note issued to such Assignee, such Assignee's
      assigned portion of the right to receive payments under this Note shall be
      redistributed to the then remaining Assignees as set forth above. Payments
      made
      pursuant to this Note are "wages" as that term is defined in Section 3401(a)
      of
      the U.S. Internal Revenue Code of 1986, as amended, and Maker shall withhold
      from payments hereunder the appropriate amount of federal, state and local
      withholding taxes.”

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    1.3
      The
      Payment Schedule set forth in Exhibit A is hereby deleted in its entirety and
      replaced with the attached Exhibit A.

    

    2.
      The
      Note is, and shall continue to be, in full force and effect as modified hereby,
      and is hereby in all respects ratified and confirmed. The Payee is hereby
      authorized to attach this Allonge to the Note.

    

    IN
      WITNESS the execution hereof under seal as of the day and year first
      above

    written.

    .

    E-OIR
      TECHNOLOGIES, INC.

    

    By:
      /s/
      Gino
      Pereira                      
  

    Name:
      Gino
      Pereira                       
  

    Title:
      Chief
      Financial Officer        

    

    

    

    PAYEE:

    

    

    /s/
      Joseph P. Mackin____  ____ 

       
      Name:
      Joseph P. Mackin

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    Note
      Payment Schedule

    

    

    
      	
              Payment
                Date

            	 	
              Total
                Payment

            	 
	
              1-Oct-06

            	 	
              $

            	
              9,582.06

            	 
	
              1-Jan-07

            	 	
              $

            	
              9,582.06

            	 
	
              1-Apr-07

            	 	
              $

            	
              9,582.06

            	 
	
              1-Jul-07

            	 	
              $

            	
              425,202.52

            	 
	
              1-Oct-07

            	 	
              $

            	
              3,316.53

            	 
	
              1-Jan-08

            	 	
              $

            	
              3,316.52

            	 
	
              1-Apr-08

            	 	
              $

            	
              3,316.53

            	 
	
              1-Jul-08

            	 	
              $

            	
              113,316.53

            	 
	
              1-Oct-08

            	 	
              $

            	
              1,658.26

            	 
	
              1-Jan-09

            	 	
              $

            	
              1,658.26

            	 
	
              1-Apr-09

            	 	
              $

            	
              1,658.26

            	 
	
              1-Jul-09

            	 	
              $

            	
              111,658.26

            	 

    

     

     

    4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]