Document:

exh10-3_17064.htm

EXHIBIT 10.3

 

TECHNEST HOLDINGS, INC.

EMPLOYMENT SETTLEMENT AGREEMENT AND RELEASE

This Agreement ("Agreement") is entered into as of January 11, 2011, by and between Technest Holdings, Inc., a Nevada corporation with its principal offices located at 10411 Motor City Drive, Suite 650, Bethesda, Maryland 20817, (together with its subsidiaries, the "Company"), and Gino M. Pereira, an individual residing in Oxford, Connecticut (the "Executive").

 

WHEREAS, the Executive is currently employed as Chief Executive Officer and President of the Company;

 

WHEREAS, on January 11, 2011, the Company entered into a Unit Purchase Agreement (the “Purchase Agreement”) between AccelPath LLC (“AccelPath”) and the members of AccelPath pursuant to which the Company has agreed to purchase all of the outstanding membership units of AccelPath in exchange for the issuance of shares of Technest Common Stock, resulting in AccelPath becoming a subsidiary of the Company (the “AccelPath Transaction”);

 

WHEREAS, in consideration of the services rendered and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Company, the Company is willing to provide, upon the completion of the AccelPath Transaction and subject to the terms of this Agreement, (i) certain payments to the Executive, (ii) shares of Technest Common Stock and (iii) a non-exclusive license to manufacture and sell any products developed by the Company and its subsidiaries prior to the Closing (as defined in the Purchase Agreement).

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties agree as follows:

 

1.           Resignation as of Closing.  The Executive hereby resigns as Chief Executive Officer and President of the Company and as a director of the Company, effective immediately prior to the Closing (the “Effective Time”).

 

2.           Continued Salary Payments.  Subject to the Executive’s continuing compliance following the Closing with the provisions of Section 5 (Confidential Information), Section 7 (Intellectual Property Rights) and Section 9 (Non-Competition) of the Employment Agreement dated as of January 14, 2008 between the Executive and the Company (the “Employment Agreement”) and to the Executive’s compliance with Section 8(e) (Surrender of Records and Property) of the Employment Agreement, the Company will continue to pay the Executive’s current reduced salary at a rate of $300,000 per annum through January 31, 2011. The Company may deduct from the payments described in this Section 2, such legally required withholdings, payments and/or deductions as may be required.

 

3.           Health Benefits. As of January 31, 2011, the Executive agrees that he is forgoing and is no longer entitled to any health insurance coverage or any 401(k) benefits of the Company.

 

  

  

  

4.           Termination of Employment Agreement. Other than as provided herein, the Employment Agreement shall terminate as of the Effective Time and the Executive shall have no other rights thereunder.

 

5.           Issuance of Technest Common Stock. Within seven (7) business days of the Closing, the Company shall issue to the Executive 1,000,000 shares of Common Stock pursuant to a restricted stock agreement which the Executive shall deliver to the Company prior to the issuance of the shares.

 

6.           Release.  In consideration for the payments provided herein (including, without limitation, the issuance of the shares under Section 5), the Executive and all his successors, assigns and heirs hereby release, forever discharge and covenant not to sue the Company, its predecessors, successors, subsidiaries, affiliates, assigns, agents, and any of their present or former directors, officers, employees or shareholders, from any and all claims, demands, damages or liability of any nature whatsoever prior to the date of this Agreement, known or unknown, which Executive has or may have, including, but not limited to, claims arising under the Employee Retirement Income Security Act of 1974 (“ERISA”), claims for breach of contract or wrongful termination, claims for equity awards, claims for severance or termination pay, claims for alleged discrimination under federal, state or local law, including, but not limited to, Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e, et seq., the Age Discrimination In Employment Act (“ADEA”), 29 U.S.C. § 621 et seq., the Americans With Disabilities Act, 42 U.S.C. § 12111, et seq., and any other federal, state, foreign or local laws, statutes, regulations, or ordinances, as well as rights under any and all common law causes of action. Consistent with the terms of this Paragraph, Executive further agrees to refrain from bringing, prosecuting or arbitrating any claim, demand or cause of action, either at law or in equity, against the Company as the result of any act or omission by the Company occurring up to and including the date of his execution of this Agreement.

 

7.  Miscellaneous.

 

(a)  Notices.  Any notice or other communication required or permitted hereunder shall be in writing and shall be deemed given when delivered personally or sent by facsimile transmission (with confirmation) or, if sent by regular mail, three days after the date of deposit in the United States mails to the addresses set forth above or to such other address as either party may from time to time provide to the other by notice as provided in this section.

 

(b)  Entire Agreement.  This Agreement constitutes the entire agreement and understanding between the Company and the Executive, and supersedes all prior negotiations, agreements, arrangements, and understandings, both written or oral, between the Company and the Executive with respect to the subject matter of this Agreement.

 

(c)  Waiver or Amendment.  The waiver by either party of a breach or violation of any term or provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach or violation of any provision of this Agreement or of any other right or remedy.  No provision in this Agreement may be amended unless such amendment is set forth in a writing that specifically refers to this Agreement and is signed by the Executive and the Company.

 

  

  

  

(d)  Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada without regard to its conflict of laws rules.

 

(e)  Assignment.  This Agreement shall inure to the benefit of, and shall be binding upon, each of the Company and the Executive and their respective heirs, personal representatives, legal representatives, successors and assigns.

 

(f)  Severability.  The invalidity of any one or more of the words, phrases, sentences, clauses or sections contained in this Agreement shall not affect the enforceability of the remaining portions of this Agreement or any part hereof.  If any part of this Agreement shall be declared invalid by a court of competent jurisdiction, this Agreement shall be construed as if such invalid part had not been inserted.

 

(g)  Section Headings.  The section and subsection headings contained in this Agreement are for reference purposes only and shall not affect any way the meaning, construction or interpretation of any or all of the provisions of this Agreement.

 

(h)  Counterparts.  This Agreement may be executed in any number of counterparts and by the separate parties hereto in separate counterparts, each of which shall be deemed to constitute an original and all of which shall be deemed to be one and the same instrument.

 

(i)  Authority to Execute.  The undersigned officer represents and warrants that he or she has full power and authority to enter into this Agreement on behalf of the Company, and that the execution, delivery and performance of this Agreement have been authorized by the Board of Directors of the Company.  Upon the Executive's acceptance of this Agreement by signing and returning it to the Company, this Agreement will become binding upon the Executive and the Company.

 

  

  

  

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above.

 

	
EXECUTIVE

	  	
TECHNEST HOLDINGS, INC.

	
/s/ Gino M. Pereira 

Gino M. Pereira

	  	
By:  /s/ Gino M. Pereira

 

        Chief Executive Officerexh10-4_17064.htm

EXHIBIT 10.4

 

FORM OF LOCK-UP AGREEMENT

 

This Lock-Up Agreement dated as of March ___, 2011 (this “Agreement”) is entered into by and between the undersigned (the “Stockholder”), Technest Holdings, Inc., a Nevada corporation (the “Company”), and AccelPath LLC, a Massachusetts limited liability company (“AccelPath”).  Capitalized terms used and not otherwise defined herein shall have the meanings given to such terms in the Unit Purchase Agreement (as defined below).

 

Recitals

 

Whereas, the Company, AccelPath and the former unit holders of AccelPath have entered into a Unit Purchase Agreement, dated as of January 11, 2011 (the “Unit Purchase Agreement”), which, subject to the conditions set forth therein, provides for the exchange of all of the issued and outstanding units of AccelPath by the Company (the “Exchange”) in consideration for the issuance of shares of common stock and of the Company to the former unit holders of AccelPath (the “Sellers”).

 

Whereas, the Unit Purchase Agreement provides that, as a condition to the closing of the Exchange, each of the Sellers and certain of the existing holders of securities of the Company (the “Existing Stockholders”) must enter into an agreement under which the Sellers and the Existing Stockholders agree that any securities of the Company held by them, whether now owned or hereafter acquired (the “Securities”), shall be held subject to certain restrictions on Disposition (as defined below).

 

Whereas, Stockholder, as a Seller or Existing Stockholder, in order to induce AccelPath and the Sellers to enter into the Unit Purchase Agreement and to consummate the Exchange in accordance therewith, desires to enter into this Agreement under which the Securities held by Stockholder will be subject to the restrictions on Disposition as required by the Unit Purchase Agreement.

 

Agreement

 

Now, Therefore, as an inducement to and in consideration of AccelPath’s agreement to enter into the Unit Purchase Agreement and to consummate the Exchange, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Stockholder hereby agrees as follows:

 

1. Restrictions on Disposition.  Until the later of (a) the date that is six months after the Closing (as defined in the Unit Purchase Agreement) and (b) the date that is three months after the date that the Company’s registration statement on Form S-1 (filed specifically to register the sale or sales of the Company’s shares of common stock in connection with the planned Equity Line Financing (as defined in the Unit Purchase Agreement)) is declared to be effective by the Securities and Exchange Commission (the “Lock-Up Period”), Stockholder will not, directly or indirectly, transfer, sell, offer to sell, announce the intention to sell, sell any option or contract to purchase, purchase any option or contract to sell, make any short sale of, grant any option, warrant or other right for the purchase of, contract to sell, pledge or otherwise dispose of any Securities (including without limitation, Securities that may be deemed to be 

 

  

  

  

beneficially owned by the undersigned in accordance with the rules and regulations of the Securities and Exchange Commission and securities that may be issued upon exercise of a stock option or warrant), or enter into any swap, hedge or other arrangement or transaction that transfers to another, in whole or in part, any of the economic consequences of ownership of any of the Securities, whether any such transaction described above is to be settled by delivery of Securities or any other securities, in cash or otherwise, except as otherwise provided in this Agreement (each of the above actions referred to herein as a “Disposition”).

 

2. Permitted Dispositions.

 

(a) Notwithstanding the restrictions on Dispositions contained in Section 1, Stockholder may effect a Disposition (a) pursuant to a bona fide gift or gifts; (b) by will or intestacy or to a trust, the beneficiaries of which are the Stockholder or, if Stockholder is an individual, members of Stockholder’s immediate family or (c) as a distribution to limited partners, members or stockholders of Stockholder or affiliates of Stockholder, provided that in each case of clauses (a) through (c) above, such gift, transfer or distribution shall be conditioned upon the donee’s, transferee’s or distributee’s execution and delivery to the Company of a Lock-Up Agreement containing terms and conditions identical to the terms and conditions contained herein.  For the purposes of this Section 2, “immediate family” shall mean a spouse, domestic partner, lineal descendant (including adopted children), father, mother, brother or sister of the transferor.

 

(b) Notwithstanding the above and the restrictions on Dispositions contained in Section 1, the Company, upon the approval of at least a majority of the members of the Board of Directors of the Company, in its sole discretion, may at one or more times during the Lock-Up Period, permit limited Dispositions by one or more parties for any legitimate business purpose.

 

3. Legends.

 

(a) In addition to any legends that may be required by federal or state securities laws, each stock certificate, book entry or other form of evidence representing Securities held by Stockholder shall be stamped or otherwise imprinted with the following legend:

 

“THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS OF A LOCK-UP AGREEMENT DATED MARCH ___, 2011 BY AND BETWEEN THE HOLDER HEREOF, THE ISSUER AND CERTAIN OTHER PARTIES AND MAY ONLY BE SOLD OR TRANSFERRED IN ACCORDANCE WITH THE TERMS THEREOF.”

 

(b) The Company shall be obligated to reissue and deliver substitute certificates without the foregoing legend and shall instruct its transfer agent to remove such legend at the request of Stockholder when the restrictions on Disposition lapse in accordance with this Agreement.

 

(c) Stockholder hereby agrees and consents to the entry of stop transfer instructions with Company’s transfer agent against the transfer of the Securities except in compliance with this Agreement.

 

  

- 2 -

  

4. Term.  This Agreement shall be effective upon the Closing and shall terminate and shall be of no further force and effect upon the earlier of (a) the expiry of the Lock-Up Period and (b) the ten month anniversary of the Closing.

 

5. Miscellaneous.

 

(a) Authority; Successors and Assigns.  The undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this Agreement.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives and permitted successors and assigns.

 

(b) Governing Law. This Agreement shall be construed in accordance with, and governed in all respects by, the internal laws of the State of Nevada (without giving effect to principles of conflicts of laws).

 

(c) Specific Performance.  The parties to this Agreement agree that, in the event of any breach or threatened breach by any party to this Agreement of any covenant, obligation or other provision set forth in this Agreement for the benefit of any other party to this Agreement, such other party shall be entitled (in addition to any other remedy that may be available to it) to (i) a decree or order of specific performance or mandamus to enforce the observance and performance of such covenant, obligation or other provision and (ii) an injunction restraining such breach or threatened breach.

 

(d) Amendments.  This Agreement may not be amended, modified, altered or supplemented other than by means of a written instrument duly executed and delivered on behalf of the parties hereto.

 

(e) Severability.  In the event one or more of the provisions of this Agreement should, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

 

(f) Counterparts.  This Agreement may be executed in separate counterparts, each of which shall be deemed an original and both of which shall constitute one and the same instrument.

 

  

- 3 -

  

In Witness Whereof, the parties hereto have executed and delivered this Agreement as of the date first set forth above.

 

 

 

 

 

	 	
Stockholder

By:________________________________

 

Print Name:__________________________

 

Address:____________________________

 

 

Technest Holdings, Inc.

By:________________________________

 

Print Name:__________________________

 

Title:_______________________________

 

 

AccelPath LLC

By:________________________________

 

Print Name:__________________________

 

Title:_______________________________

 

Lockup Agreement

Signature Page

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}]]