Document:

Termination Agreement

    Exhibit
      10.4

    

    

    TERMINATION
      AGREEMENT

    

    THIS
      TERMINATION AGREEMENT (“Agreement”)
      is effective as of March 24, 2006 by and between Greenfield Capital Partners,
      LLC, a Delaware limited liability company (“Greenfield”), and Markland
      Technologies Inc., a Florida corporation (“Markland”).

     

    WHEREAS,
      Greenfield and Markland have entered into that certain letter agreement dated
      December 1, 2004 (“Placement
      Agent Agreement”);
      and

     

    WHEREAS,
      Greenfield and Markland have agreed to terminate the Placement Agent Agreement
      under the terms and conditions set forth below.

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and undertakings contained herein, the
      parties hereto hereby agree as follows:

     

    1. Termination
      of Agreements.
      Greenfield and Markland hereby agree to terminate the Placement Agent Agreement,
      including, without limitation, any further obligation by Markland to pay
      compensation pursuant to Section 5 the Placement Agent Agreement.

     

    2. Series
      E Preferred Stock Issuance.
      In lieu
      of any compensation owed to Greenfield by Markland under the Placement Agent
      Agreement, Markland agrees to issue 166.67 shares of Markland’s Series E
      Preferred Stock (the “Series E Preferred Shares”) to Greenfield, convertible
      into 500,010 shares (the “Technest Shares”) of common stock of Technest
      Holdings, Inc., a Nevada corporation (“Technest”). Simultaneously with the
      initial issuance of Series E Preferred Stock to the “Investors” under that
      certain Redemption and Securities Purchase Agreement, dated as of the date
      hereof, between Markland and such Investors (the “Redemption Agreement”),
      Markland shall deliver to Greenfield the Series E Preferred Shares.

     

    3. Release
      by Markland.
      Markland, on behalf of itself and its affiliates, and their respective
      directors, officers, principals, shareholders, owners, affiliates, successors
      and assigns (collectively, “Markland Releasors”), hereby fully and
      unconditionally waives, releases, acquits, discharges and holds harmless
      Greenfield, its affiliates and their respective directors, officers, agents,
      representatives, employees, principals, members, owners, successors and assigns
      (collectively, “Greenfield Releasees”) of and from any and all claims, actions,
      causes of action, suits, debts, demands, damages, judgments, executions, costs,
      expenses, liabilities, duties, sums of money, bills, accounts, reckonings,
      bonds, securities, rights, indemnities, exonerations, covenants, contracts,
      controversies, agreements, promises, doings, omissions, losses, exposures and
      obligations of any kind whatsoever, whether known or unknown, whether in law
      or
      in equity (collectively, “Claims”), which the Markland Releasors have, had or
      claim to have had, against the Greenfield Releasees, from the beginning of
      the
      world through the date hereof; provided,
      however,
      that
      the Markland Releasors are not releasing the Greenfield Releasees from their
      obligations pursuant to this Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4. Release
      by Greenfield.
      Greenfield, on behalf of itself and its affiliates, and their respective
      directors, officers, principals, shareholders, owners, affiliates, successors
      and assigns (collectively, “Greenfield Releasors”), hereby fully and
      unconditionally waives, releases, acquits, discharges and holds harmless
      Markland, its affiliates and their respective directors, officers, agents,
      representatives, employees, principals, shareholders, owners, successors and
      assigns (collectively, “Markland Releasees), from any and all Claims which the
      Greenfield Releasors have, had or claim to have had against the Markland
      Releasees, from the beginning of the world through the date hereof; provided,
      however,
      that
      the Greenfield Releasors are not releasing the Markland Releasees from their
      obligations under this Agreement.

     

    5. No
      Claims.
      Each of
      the Markland Releasors and Greenfield Releasors hereby represent and covenant
      that none of them has instituted, and they will not institute, any complaints,
      claims, charges, proceedings or lawsuits, with any governmental agency,
      regulatory or self-regulatory body, court or otherwise, against any of the
      Greenfield Releasees or Markland Releasees, respectively, by reason of, relating
      to or in connection with any Claim, arising at any time up to the date of this
      Agreement, presently known or unknown.

     

    6. Markland
      Representations, Warranties and Covenants.
      Markland represents, warrants and covenants, as applicable, that:

     

    a. Ownership
      of the Shares.
      Markland has good and valid title to the Technest Shares free and clear of
      all
      liens, charges, security interest, claims, agreements or other encumbrances
      of
      any nature whatsoever (other than restrictions imposed under applicable
      securities laws). There are no outstanding or authorized options, warrants,
      rights, calls, commitments, conversion rights, rights of exchange or other
      agreements of any character, contingent or otherwise, providing for the
      purchase, issuance or sale of any of the Technest Shares, or any arrangements
      that require or permit any shares of the Technest Shares to be voted by or
      at
      the discretion of anyone other than Markland, and there are no restrictions
      of
      any kind on the transfer of any of the Shares other than those restrictions
      under applicable state and federal securities laws. The Series E Preferred
      Shares, when issued and delivered in accordance with the terms of this Agreement
      shall be duly and validly issued, fully paid and nonassessable and will be
      free
      of restrictions on transfer, other than restrictions on transfer under
      applicable state and federal securities laws.

     

    b. Non-Contravention.
      The
      execution, delivery and performance of this Agreement and the consummation
      of
      the transactions contemplated hereby by Markland will not result in any material
      violation of any instrument, judgment, order, writ, decree or contract, statute,
      rule or regulation to which Markland is subject, or constitute, with or without
      the passage of time and giving of notice, an event that results in the creation
      of any lien, charge or encumbrance upon any of the Technest Shares.

     

    c. Compliance
      with Laws.
      Assuming the accuracy of the representations made by Greenfield in this
      Agreement, no consent, approval, order or authorization of registration,
      qualification, designation, declaration or filing with, any federal, state
      or
      local governmental authority, on the part of Markland, is required in connection
      with the consummation of the transactions and actions contemplated by this
      Agreement, except for (i) the filing of the Articles of Amendment to Markland’s
      Articles of Incorporation creating the Series E Preferred Stock (the “Series E
      Articles”) and (ii) federal or state securities law filings which have been made
      or will be made in a timely manner.

     

    
      
         

      

      
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    d. Markland’s
      Acquisition of the Technest Shares.
      Markland acquired the Technest Shares directly from Technest on or about August
      17, 2005 (“Acquisition Date”), for due consideration paid in full on the
      Acquisition Date. 

     

    7. Greenfield
      Representations, Warranties and Covenants.

     

    a. Investment
      Intent.
      Greenfield is acquiring shares the Series E Preferred Shares (and the related
      Technest Shares (as defined below)) for investment and not for, with a view
      to
      or in connection with the distribution thereof. The above sentence, however,
      shall not to limit Greenfield’s right to sell the Series E Preferred Shares and
      the underlying Technest Shares pursuant to applicable state and federal
      securities laws.

     

    b. Restricted
      Securities.
       Greenfield understands that neither the Series E Preferred Shares nor the
      Technest Shares issuable upon conversion of the Series E Preferred Shares being
      issued to Greenfield hereunder have been registered under the Securities Act,
      or
      any state securities law, by reason of their issuance in a transaction exempt
      from the registration requirements of the Securities Act and such laws, and
      that
      such shares must be held indefinitely unless they are subsequently registered
      under the Securities Act and such laws or a subsequent disposition thereof
      is
      exempt from registration.  The certificates for the Series E Preferred
      Shares and the underlying Technest Shares shall bear a legend in substantially
      the form set forth below as well as any other legends required by applicable
      law, and Greenfield covenants that it shall not transfer Series E Preferred
      Shares or any underlying Technest Shares represented by any such certificate
      without complying with the restrictions on transfer described in the legends
      endorsed on such certificate:

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (“SECURITIES ACT”), OR REGISTERED OR
      QUALIFIED UNDER ANY APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES MAY
      NOT
      BE TRANSFERRED UNLESS (A) COVERED BY AN EFFECTIVE REGISTRATION STATEMENT UNDER
      THE SECURITIES ACT AND REGISTERED OR QUALIFIED UNDER APPLICABLE STATE SECURITIES
      LAWS OR (B) EXEMPTIONS FROM SUCH REGISTRATION OR QUALIFICATION REQUIREMENTS
      ARE
      AVAILABLE. AS A CONDITION TO PERMITTING ANY TRANSFER OF THESE SECURITIES, THE
      COMPANY MAY REQUIRE THAT IT BE FURNISHED WITH AN OPINION OF COUNSEL ACCEPTABLE
      TO THE COMPANY TO THE EFFECT THAT NO REGISTRATION OR QUALIFICATION IS LEGALLY
      REQUIRED FOR SUCH TRANSFER.

     

    c. Rule
      144.
       Greenfield understands that the exemption from registration afforded by
      Rule 144 promulgated under the Securities Act depends upon the satisfaction
      of
      various conditions and that, if applicable, Rule 144 affords the basis for
      sales
      only in limited amounts.

     

    
      
         

      

      
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    d. Experience
      and Knowledge.
       Greenfield: (a) has sufficient knowledge and experience in business
      and financial matters and with respect to investment in restricted securities
      so
      as to enable it to analyze and evaluate the merits and risks of the investment
      contemplated hereby; (b) is able to bear the economic risk of such
      investment; and (c) is an “accredited investor” as defined in Rule 501(a)
      of Regulation D under the Securities Act.  Such Investor is aware of
      Markland’s business affairs and condition and Technest’s business affairs and
      condition and has acquired sufficient information about Markland and Technest
      to
      reach an informed and knowledgeable decision to acquire the Series E Preferred
      Shares and underlying Technest Shares. Greenfield acknowledges that it has
      read
      and understands the relative rights and preferences and other terms of the
      Series E Preferred Stock as set forth in the Series E Articles.

     

    8. Registration
      Rights.
      Markland shall have Technest register the Technest Shares together with those
      shares of Technest common stock registered on behalf of the Investors pursuant
      to the Redemption Agreement. Markland shall have Technest promptly do, make,
      execute or deliver, or cause to be done, made, executed or delivered, all
      further acts, documents and things as the may reasonably be required from time
      to time for the purpose of giving effect to this Section.

     

    9. Restrictions
      on Resale.

     

    a. Subject
      to Section 9(b) hereof, for a period commencing on the date of the issuance
      of
      the Series E Preferred Shares and ending on the earlier of (i) twenty-four
      (24)
      months following the date of such issuance and (ii) the date on which the
      Investors and/or their Affiliates have sold at least 67% of the Technest
      Conversion Shares underlying the shares of Series E Preferred Stock issued
      under
      the Redemption Agreement (determined on an as-converted basis) either in
      transactions registered under the Securities Act of 1933, as amended (the
“Securities Act”), or pursuant to Rule 144 under the Securities Act (such
      period, the “Restriction Period”), Greenfield agrees that it will not sell,
      assign, hypothecate or otherwise transfer: (a) any shares of Technest Common
      Stock, (b) any securities convertible into or exercisable or exchangeable
      for Technest Common Stock or (c) any options, warrants or rights carrying
      any rights to purchase Technest Common Stock, in each case without the prior
      written consent of a Majority Interest. Capitalized terms used in this Section
      9
      shall have the meanings ascribed to such terms in the Redemption
      Agreement.

     

    b. Notwithstanding
      the foregoing, the restrictions imposed in Section 9(a) shall be inapplicable
      with respect to transfers of shares of Technest Common Stock into the open
      market in sales registered under the Securities Act or sales pursuant to Rule
      144 under the Securities Act, which sales shall not exceed 1% of Technest’s
      outstanding shares of common stock during any 90 day period; provided
      that
      subject
      to Section 9(c) immediately below, any sales made pursuant this Section 9(b)
      shall be limited to 2,500 shares per day (based upon 20 trading days per month)
      (as appropriately adjusted for any stock split, combination, reorganization,
      recapitalization, reclassification, stock distribution, stock dividend or
      similar event).

     

    
      
         

      

      
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    c. Greenfield
      agrees that (i) it will not convert more than 16.67 Series E Preferred Shares
      during any calendar month and (ii) it will not sell more than 10% of the
      Technest Shares (calculated on an as-converted basis) underlying its Series
      E
      Preferred Shares into the open market in sales registered under the Securities
      Act or sales pursuant to Rule 144 under the Securities Act during any calendar
      month; provided, however, that (A) if at any time during such calendar month,
      the average closing price of shares of Technest Common Stock over a period
      of
      five (5) consecutive trading days is equal to or greater than $10.00 (as
      appropriately adjusted for any stock split, combination, reorganization,
      recapitalization, reclassification, stock distribution, stock dividend or
      similar event), such limits shall be increased to 25% of the Technest Shares
      for
      such month and (B) if at any time during such calendar month, the average
      closing price of shares of Technest Common Stock over a period of five (5)
      consecutive trading days is equal to or less than $4.65 (as appropriately
      adjusted for any stock split, combination, reorganization, recapitalization,
      reclassification, stock distribution, stock dividend or similar event), such
      limits shall be decreased to 5% of the Technest Shares for such month.
      Greenfield shall provide that any transferees of shares of Technest Common
      Stock
      that received such shares in private transactions shall be bound by the same
      restrictions based on the number of shares of Technest Common Stock such
      transferees receive in their respective transactions.

     

    10. Redemption
      Agreement.
      Greenfield acknowledges that, other than the rights to have the Technest Shares
      registered together with the Technest common stock issuable to the Investors,
      it
      has none of the rights of an Investor under the Redemption
      Agreement.

     

    11. No
      Derogation; Confidentiality.
      Markland and Greenfield each agree not to make any critical, derogatory, or
      untruthful statement about the other party, its affiliates or their respective
      directors, officers, principals, shareholders, owners, successors and assigns
      or
      to any of the other party’s past, present or future clients, customers,
      investors, competitors, markets, employees, or any other persons (including,
      but
      not limited to, the press or other media). Recognizing the confidentiality
      of
      the information contained herein, it is understood and agreed by the parties
      that the parties will agree to keep any matters relating to this Agreement
      confidential and agree not to disclose them to any other person after the
      execution of this Agreement by all parties, except as may be required (i) by
      the
      order of a court of competent jurisdiction, (ii) by any governmental, regulatory
      agency or self-regulatory organization requiring such disclosure or (iii) to
      comply with any applicable law requiring such disclosure, in all cases after
      providing the other parties with ten (10) days prior written notice and, if
      requested, proof of the applicability of such requirement.

     

    12. Further
      Acts.
      Each
      party hereto shall each promptly do, make, execute or deliver, or cause to
      be
      done, made, executed or delivered, all further acts, documents and things as
      may
      reasonably be required from time to time for the purpose of giving effect to
      this Agreement.

     

    13. Authority.
      Each
      party hereto represents and warrants that it has the full right, authority
      and
      power to enter into this Agreement and to carry out its provisions. The
      execution, delivery and performance by such party of this Agreement has been
      duly authorized by all necessary action and no other action is required in
      connection therewith. 

     

    
      
         

      

      
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    14. Binding
      Effect.
      Each
      party hereto represents and warrants that this Agreement has been duly executed
      and delivered by such respective party and constitutes its legal, valid and
      binding obligation enforceable against it in accordance with its terms.

     

    15.  Severability
      and Governing Law.
      If any
      provision (or portion thereof) of this Agreement is declared void or
      unenforceable by a court of competent jurisdiction, all other provisions or
      other portions thereof shall nonetheless remain in full force and effect. This
      Agreement shall be governed by, and construed and enforced in accordance with
      the laws of the State of New York, without giving effect to conflict of law
      principles.

     

    16. Waiver.
      The
      waiver by any party of a breach of any provision or portion thereof of this
      Agreement shall not be construed as a waiver of any subsequent breach. The
      failure of a party to insist upon strict adherence to any provision or portion
      thereof of this Agreement on one or more occasions shall not be considered
      a
      waiver or deprive that party of the right thereafter to insist upon strict
      adherence to that provision or any other provision of this Agreement. Any waiver
      must be in writing.

     

    17. Assignment.
      This
      Agreement may not be transferred or assigned by any party without the other
      parties’ written consent, and shall be binding upon, and shall inure to, the
      benefit of the parties and their successors and assigns.

     

    18. Entire
      Agreement; All Prior Agreements Superceded; Counterparts.
      This
      Agreement constitutes the entire agreement between the parties with regard
      to
      the subject matter contained herein. This Agreement supercedes all prior
      agreements, written or oral, relating to the subject matter of this Agreement.
      This Agreement may be signed in one or more counterparts, each of which is
      an
      original and all of which together form one and the same
      instrument.

     

    THE
      REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK

     

    
      
         

      

      
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    IN
      WITNESS WHEREOF, the parties have executed this Termination Agreement effective
      as of the date first set forth above. 

    

    
      	 	 	 
	 	Greenfield
              Capital Partners, LLC
	 
 	 
 	 
 
	 	By:  	/s/ Michael
              Byl                                                                           
              
	 	Michael Byl, President 
	 	 

    
      	 	 	 
	 	Markland
              Technologies, Inc.
	 
 	 
 	 
 
	 	By:  	/s/ Robert
              Tarini                                                                         
              
	 	Robert Tarini, Chief Executive
              Officer

    

     

     

    7Verdi Agreement

    Exhibit
      10.5

    

    

    AGREEMENT

    

    This
      agreement (this “Agreement”) confirms the engagement of Verdi Consulting Inc., a
      Rhode Island corporation with a mailing address of c/o 100 Pheasant Drive,
      East
      Greenwich, RI 02818 (“VCI”), by Markland Technologies Inc., a Florida
      corporation with a business address of 88 Royal Little Drive, Providence, RI
      02904 (the “Company”), to act as: (i) the Company’s exclusive agent to arrange
      and negotiate the redemption of the Company’s Series D Convertible Preferred
      Stock in exchange for newly issued Series E Preferred Stock (the “EXCHANGE
      TRANSACTION”) with James LLC and affiliates.

    

    Services
      to be rendered by VCI include:

    

    (a)
      assisting the Company in analyzing its equity structure;

    

    (b)
      assisting the Company in preparation of basic terms and conditions for the
      EXCHANGE TRANSACTION; and

    

    (c)
      advising the Company as to strategy and tactics for negotiations related to
      such
      EXCHANGE TRANSACTION.

    

    1.
      RETENTION.
      Subject
      to the terms and conditions of this Agreement, the Company hereby engages VCI
      to
      act on behalf of the Company as its exclusive agent during the Authorization
      Period (as defined in Section 2 below) to arrange for the EXCHANGE TRANSACTION
      and VCI hereby accepts such engagement on the terms and conditions hereof.
      During the Authorization Period, except for VCI, the Company will not retain
      or
      consult with any person or entity to provide such services to the Company or
      any
      of its subsidiaries or affiliates.

    

    2.
      AUTHORIZATION
      PERIOD.
      VCI’s
      engagement under this Agreement shall become effective on the date of this
      Agreement and, unless extended by the Company and VCI in writing, shall expire
      upon the earlier of (i) the closing of the EXCHANGE TRANSACTION and (ii) one
      hundred eighty (180) days after the date of this Agreement, or terminated
      earlier as provided for herein (the “Authorization Period”). VCI shall be
      entitled to terminate its engagement hereunder at any time upon ten (10) days
      prior written notice to the Company. The Company agrees that neither it,its
      controlling equity holders, nor its management will initiate any discussions
      regarding an EXCHANGE TRANSACTION with James LLC or any of its affiliates during
      the term of this Agreement, except through VCI. In the event the Company or
      the
      Company’s management receive any inquiry regarding the EXCHANGE TRANSACTION
      after the date of this Agreement, VCI will be promptly informed of such inquiry
      so that VCI can evaluate it as it may impact any resulting
      negotiations.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.
      COMPENSATION
      FOR SERVICES.
      Upon
      the closing of the EXCHANGE TRANSACTION, the Company shall pay VCI the
      compensation set forth below:

    

    (a) STOCK
      FEE.
      The
      Company shall pay VCI a stock fee of 500,000 fully paid shares (the “Technest
      Shares”) of common stock of Technest Holdings Inc., a Nevada corporation
      (“Technest”).

    

    4.
      PIGGYBACK
      REGISTRATION RIGHTS.
      The
      Company represents and warrants that the Technest Shares shall have piggyback
      registration rights and shall be included in the next registration statement
      filed by Technest with the Securities and Exchange Commission after the date
      hereof. The Company shall have Technest promptly do, make, execute or deliver,
      or cause to be done, made, executed or delivered, all further acts, documents
      and things as the may reasonably be required from time to time for the purpose
      of giving effect to this Section.

    

    5.
      SALES
      RESTRICTIONS.

    

    (a) Subject
      to Section 5(b) hereof, for a period commencing on the date of the closing
      of
      the EXCHANGE TRANSACTION and ending on the earlier of (i) twenty-four (24)
      months following the date of such closing and (ii) the date on which the
      Investors and/or their Affiliates have sold at least 67% of the Technest
      Conversion Shares underlying the shares of Series E Preferred Stock issued
      under
      the Redemption Agreement (determined on an as-converted basis) either in
      transactions registered under the Securities Act of 1933, as amended (the
“Securities Act”), or pursuant to Rule 144 under the Securities Act (such
      period, the “Restriction Period”), VCI agrees that it will not sell, assign,
      hypothecate or otherwise transfer: (a) any shares of Technest Common Stock,
      (b) any securities convertible into or exercisable or exchangeable for
      Technest Common Stock or (c) any options, warrants or rights carrying any
      rights to purchase Technest Common Stock, in each case without the prior written
      consent of a Majority Interest. Capitalized terms used in this Section 5 shall
      have the meanings ascribed to such terms in that certain Redemption and
      Securities Purchase Agreement, dated as of the date hereof, between the Company
      and the investors named therein (the “Redemption Agreement”).

    

    (b) Notwithstanding
      the foregoing, the restrictions imposed in Section 5(a) shall be inapplicable
      with respect to transfers of shares of Technest Common Stock into the open
      market in sales registered under the Securities Act or sales pursuant to Rule
      144 under the Securities Act, which sales shall not exceed 1% of Technest’s
      outstanding shares of common stock during any 90 day period; provided
      that
      subject
      to Section 5(c) immediately below, any sales made pursuant this Section 5(b)
      shall be limited to 2,500 shares per day (based upon 20 trading days per month)
      (as appropriately adjusted for any stock split, combination, reorganization,
      recapitalization, reclassification, stock distribution, stock dividend or
      similar event).

    

    
      
        
        

      

      
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    (c) VCI
      agrees that it will not sell more than 10% of the Technest Shares into the
      open
      market in sales registered under the Securities Act or sales pursuant to Rule
      144 under the Securities Act during any calendar month; provided, however,
      that
      (A) if at any time during such calendar month, the average closing price of
      shares of Technest Common Stock over a period of five (5) consecutive trading
      days is equal to or greater than $10.00 (as appropriately adjusted for any
      stock
      split, combination, reorganization, recapitalization, reclassification, stock
      distribution, stock dividend or similar event), such limits shall be increased
      to 25% of the Technest Shares for such month and (B) if at any time during
      such
      calendar month, the average closing price of shares of Technest Common Stock
      over a period of five (5) consecutive trading days is equal to or less than
      $4.65 (as appropriately adjusted for any stock split, combination,
      reorganization, recapitalization, reclassification, stock distribution, stock
      dividend or similar event), such limits shall be decreased to 5% of the Technest
      Shares for such month. VCI shall provide that any transferees of shares of
      Technest Common Stock that received such shares in private transactions shall
      be
      bound by the same restrictions based on the number of shares of Technest Common
      Stock such transferees receive in their respective transactions.

    

    6.
      REPRESENTATIONS,
      WARRANTIES AND COVENANTS OF THE COMPANY.
      The
      Company represents, warrants, and covenants to VCI as follows:

    

    (a) Neither
      the Company nor any person acting on its behalf has taken, and the Company
      shall
      not and shall not permit its affiliates to take, directly or indirectly, any
      action so as to cause any of the transactions contemplated by this Agreement
      to
      not be exempt from registration or qualification under all applicable securities
      laws or which constitutes general advertising or general solicitation (as those
      terms are used in Regulation D under the Securities Act) with respect to the
      Technest Shares.

    

    (b) The
      Company shall take and shall cause its affiliates to take such actions as may
      be
      required to comply with this Agreement in all respects.

    

    (c) The
      Company will furnish, or cause to be furnished, to VCI such information as
      VCI
      believes necessary or appropriate to its engagement hereunder (all such
      information, the "INFORMATION"), and the Company represents that all such
      Information will be accurate and complete in all material respects. The Company
      will promptly notify VCI of any change that may be material to such information.
      It is understood that VCI will be entitled to rely on and use the Information
      and other information that is publicly available without independent
      verification, and will not be responsible in any respect for the accuracy,
      completeness or reasonableness of all such information or to conduct any
      independent verification.

    

    (d) The
      person executing the Agreement on behalf of the Company has been duly authorized
      to do so, and that this Agreement represents a valid and binding obligation
      of
      Company.

    

    
      
        
        

      

      
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    7.
      REPRESENTATIONS,
      WARRANTIES AND COVENANTS OF VCI.
      VCI
      represents, warrants, and covenants to the Company as follows:

    

    (a) The
      person executing the Agreement on behalf of the Company has been duly authorized
      to do so, and that this Agreement represents a valid and binding obligation
      of
      Company.

    

    (b) VCI
      is
      acquiring shares the Technest Shares for investment and not for, with a view
      to
      or in connection with the distribution thereof. The above sentence, however,
      shall not to limit VCI’s right to sell the Technest Shares pursuant to
      applicable state and federal securities laws.

    

    (c) VCI
      understands that the Technest Shares have not been registered under the
      Securities Act, or any state securities law, by reason of their issuance in
      a
      transaction exempt from the registration requirements of the Securities Act
      and
      such laws, and that such shares must be held indefinitely unless they are
      subsequently registered under the Securities Act and such laws or a subsequent
      disposition thereof is exempt from registration.  The certificates for the
      Technest Shares shall bear a legend to that effect as well as any other legends
      required by applicable law, and VCI covenants that it shall not transfer
      Technest Shares represented by any such certificate without complying with
      the
      restrictions on transfer described in the legends endorsed on such
      certificate.

    

    (d) VCI
      understands that the exemption from registration afforded by Rule 144
      promulgated under the Securities Act depends upon the satisfaction of various
      conditions and that, if applicable, Rule 144 affords the basis for sales only
      in
      limited amounts.

    

    (e) VCI:
      (a) has sufficient knowledge and experience in business and financial
      matters and with respect to investment in restricted securities so as to enable
      it to analyze and evaluate the merits and risks of the investment contemplated
      hereby; (b) is able to bear the economic risk of such investment; and
      (c) is an “accredited investor” as defined in Rule 501(a) of Regulation D
      under the Securities Act.  VCI is aware of Technest’s business affairs and
      condition and has acquired sufficient information about Technest to reach an
      informed and knowledgeable decision to acquire the Technest Shares.

    

    (f) VCI
      agrees that all nonpublic information regarding the Company obtained by it
      in
      connection with its engagement under this Agreement will be held by VCI in
      strict confidence and will be used by VCI solely for the purpose of performing
      its obligations under this Agreement.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    8.
      INDEMNIFICATION.
      In
      connection with the engagement pursuant to this Agreement, the Company agrees
      to
      indemnify and hold harmless VCI and its affiliates, the respective directors,
      officers, partners, agents, employees and attorneys (each, an “Indemnified
      Person”) from and against, and the Company agrees that no Indemnified Person
      shall have any liability to the Company or its owners, parents, affiliates,
      security holders or creditors for, any losses, claims, damages or liabilities
      (including actions or proceedings in respect thereof) (collectively “Losses”)
      (A) related to or arising out of (i) VCI’s actions or failures to act or (ii)
      actions or failures to act by an Indemnified Person with VCI’s consent or in
      reliance on our actions or failures to act, or (B) otherwise related to or
      arising out of the engagement; except that the Company shall not be responsible
      for any Losses of any Indemnified Person (and any Indemnified Person shall
      not
      be relieved of any liability to the Company or its owners, parents, affiliates,
      security holders or creditors for any of their Losses) to the extent such Losses
      have been finally judicially determined to have resulted from an Indemnified
      Person’s bad faith, gross negligence or willful misconduct.

    

    9.
      NOTICES.
      All
      notices, demands, consents, requests, instructions and other communications
      to
      be given or delivered or permitted under or by reason of the provisions of
      this
      Agreement or in connection with the transactions contemplated hereby shall
      be in
      writing and shall be deemed to be delivered and received by the intended
      recipient as follows: (a) if personally delivered, on the business day of such
      delivery (as evidenced by the receipt of the personal delivery service), (b)
      if
      mailed certified or registered mail return receipt requested, four (4) business
      days after being mailed, (c) if delivered by overnight courier (with all charges
      having been prepaid), on the business day of such delivery (as evidenced by
      the
      receipt of the overnight courier service of recognized standing), or (d) if
      delivered by facsimile transmission, on the business day of such delivery if
      sent by 6:00 p.m. in the time zone of the recipient, or if sent after that
      time,
      on the next succeeding business day (as evidenced by the printed confirmation
      of
      delivery generated by the sending party's facsimile machine). If any notice,
      demand, consent, request, instruction or other communication cannot be delivered
      because of a changed address of which no notice was given (in accordance with
      this section, or the refusal to accept same, the notice, demand, consent,
      request, instruction or other communication shall be deemed received on the
      second business day the notice is sent (as evidenced by a sworn affidavit of
      the
      sender). All such notices, demands, consents, requests, instructions and other
      communications will be sent to the following addresses or facsimile numbers
      as
      applicable:

    

    If
      to the
      Company, to:

    

    Markland
      Technologies Inc.

    88
      Royal
      Little Drive

    Providence,
      RI 02904

    Facsimile
      No:

    Attn.:
      Robert Tarini

    

    If
      to
      VCI:

    

    Mr.
      Chad
      Verdi, President of Verdi Consultant Services, Inc.

    100
      Pheasant Drive

    East
      Greenwich, RI 02818

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    10.
      INDEPENDENT
      CONTRACTOR.
      VCI
      shall be an independent contractor in providing its agent services hereunder.
      Nothing contained in this Agreement shall be deemed or construed to create
      a
      partnership or joint venture, to create the relationships of principal/agent,
      employer/employee, or otherwise create any fiduciary duty or any liability
      whatsoever of either party with respect to the indebtedness, liabilities,
      obligations or actions of the other party or any of their employees or agents,
      or any other person or entity, VCI shall not have any right to legally bind
      or
      otherwise obligate the Company in any manner whatsoever.

    

    11.
      MISCELLANEOUS.

    

    (a)
      ATTORNEYS’
      FEES.
      If any
      party to this Agreement brings an action directly or indirectly based upon
      this
      Agreement or the matters contemplated hereby against another party, the
      prevailing party shall be entitled to recover, in addition to any other
      appropriate amounts, its reasonable costs and expenses in connection with such
      proceeding, including, but not limited to, reasonable attorneys' fees and
      expenses and court costs.

    

    (b)
      AMENDMENT.
      This
      Agreement may not be modified, amended, altered or supplemented, except by
      a
      written agreement executed by each of the parties hereto.

    (c)
      ENTIRE
      AGREEMENT.
      This
      Agreement contains the entire understanding and agreement of the parties
      relating to the subject matter hereof and supersedes all prior and/or
      contemporaneous understandings and agreements of any kind and nature (whether
      written or oral) among the parties with respect to such subject matter, all
      of
      which are merged herein.

    

    (d)
      WAIVER.
      Any
      waiver by a party hereto of any breach of or failure to comply with any
      provision or condition of this Agreement by any other party hereto shall not
      be
      construed as, or constitute, a continuing waiver of such provision or condition,
      or a waiver of any other breach of, or failure to comply with, any other
      provision or condition of this Agreement, any such waiver to be limited to
      the
      specific matter and instance for which it is given. No waiver of any such breach
      or failure or of any provision or condition of this Agreement shall be effective
      unless in a written instrument signed by the party granting the waiver and
      delivered to the other party hereto in the manner provided for in the Notice
      section hereof. No failure or delay by any party to enforce or exercise its
      rights hereunder shall be deemed a waiver hereof, nor shall any single or
      partial exercise of any such right or any abandonment or discontinuance of
      steps
      to enforce such rights, preclude any other or further exercise thereof or the
      exercise of any other right.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (e)
      GOVERNING
      LAW; JURISDICTION.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Rhode Island applicable to agreements made and to be performed in
      that
      state, without regard to any of its principles of conflicts of laws or other
      laws that would result in the application of the laws of another jurisdiction.
      The parties shall make reasonable efforts to resolve any dispute concerning
      this
      Agreement, its construction or its alleged breach by face-to-face negotiations.
      Each of the parties unconditionally and irrevocably consents to the exclusive
      jurisdiction of the courts of the State of Rhode Island to any suit, action
      or
      proceeding arising out of or relating to this Agreement, and each of the parties
      hereby unconditionally and irrevocably waives any objection to venue in any
      such
      court or to assert that any such court is an inconvenient forum, and agrees
      that
      service of any summons, complaint, notice or other process relating to such
      suit, action or other proceeding may be effected in the manner provided in
      the
      Notice section hereof. Each of the parties hereby unconditionally and
      irrevocably waives the right to a trial by jury in any such action, suit or
      other proceeding.

    

    (f)
      BINDING
      EFFECT, NO ASSIGNMENT.
      This
      Agreement shall be binding upon and shall inure to the benefit of the parties
      hereto and their respective successors and permitted assigns. Neither this
      Agreement nor any right, interest or obligation hereunder may be assigned by
      the
      Company without the prior written consent of VCI, and any attempt to do so
      shall
      be void and of no force and effect.

    

    (g)
      COUNTERPARTS.
      This
      Agreement may be executed in two (2) or more counterparts (including by
      facsimile signature, which shall constitute a legal and valid signature), and
      by
      the different parties hereto in separate counterparts, each of which when
      executed shall be deemed to be an original, and all of which, when taken
      together, shall constitute one and the same document. This Agreement shall
      become effective when one or more counterparts, taken together, shall have
      been
      executed and delivered by all of the parties.

    

    

    [SIGNATURE
      PAGES FOLLOW]

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    ACCEPTED
      AND AGREED TO

    this
      ____
      day of March 2006

     

    
 

    Markland
      Technologies, Inc.

    

     

    By:
      /s/
      Robert
      Tarini                                     

    Name:
      Robert Tarini    

    Title:
      CEO

    

    

    Verdi
      Consulting Inc.

    
 

    By:
      /s/
      Chad
      Verdi                                        

    Name:
      Chad Verdi     

    Title:
      President

    

    8

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