Document:

Unconditional Guaranty

    
      EXHIBIT
        10.4

       
UNCONDITIONAL
      GUARANTY

     

    This
      continuing Unconditional Guaranty (“Guaranty”) is entered into as of August 4,
      2006, by MARKLAND
      TECHNOLOGIES, INC.,
      a
      Florida corporation with a principal place of business located at 222 Metro
      Center Blvd., Warwick, Rhode Island 02886 (“Guarantor”), in favor of Silicon
      Valley Bank, California-chartered bank, with its principal place of business
      at
      3003 Tasman Drive, Santa Clara, California 95054 and with a loan production
      office located at One Newton Executive Park, Suite 200, 2221 Washington Street,
      Newton, Massachusetts 02462 (“Bank”).

     

    Recitals

     

    A.    Concurrently
      herewith, Bank and Technest Holdings, Inc., a Nevada corporation, with offices
      at 1
      McKinley Sq., Fifth Floor, Boston, Massachusetts 02109
      (“Technest”), E-OIR Technologies, Inc., a Virginia corporation, with offices at
10300
      Spotsylvania Ave., Suite 220, Fredericksburg, Virginia 22408
      (“EOIR”), and Genex Technologies Incorporated, a Maryland corporation, with
      offices at 10411
      Motor City Drive, Suite 650, Bethesda, Maryland 20817
      (“Genex”) (hereinafter,
      Technest, EOIR and Genex are jointly and severally, individually and
      collectively, referred to as “Borrower”),
      are
      entering into (i) a certain Loan and Security Agreement dated as of August
      4,
      2006 between Borrower and Bank, as amended from time to time (as amended, the
      “Term Loan Agreement”), and (ii) a certain Loan and Security Agreement (Working
      Capital Line of Credit) dated as of August 4, 2006 between Borrower and Bank,
      as
      amended from time to time (as amended, the “WCL Loan Agreement”) (hereinafter
      the Term Loan Agreement and the WCL Loan Agreement are collectively referred
      to
      as, the “Loan Agreement”) pursuant to which Bank has agreed to make certain
      advances of money and to extend certain financial accommodations to Borrower
      (collectively, the “Loans”), subject to the terms and conditions set forth
      therein. Capitalized terms used but not otherwise defined herein shall have
      the
      meanings given them in the Loan Agreement (as applicable).

     

    B.    In
      consideration of the agreement of Bank to make the Loans to Borrower under
      the
      Loan Agreement, Guarantor is willing to guaranty a portion of the payment and
      performance by Borrower of its obligations thereunder and under the other Loan
      Documents, all as further set forth herein.

     

    C.    Guarantor
      is the majority shareholder of Technest and will obtain substantial direct
      and
      indirect benefit from the Loans made by Bank to Borrower under the Loan
      Agreement.

     

    Now,
      Therefore,
      to
      induce Bank to enter into the Loan Agreement, and for other good and valuable
      consideration, the receipt and adequacy of which are hereby acknowledged, and
      intending to be legally bound, Guarantor hereby represents, warrants, covenants
      and agrees as follows: 

     

    
      
        
        

      

      
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    Section
      1.    Guaranty.
      

     

    1.1    Unconditional
      Guaranty of Payment. In consideration of the foregoing, Guarantor hereby
      irrevocably, absolutely and unconditionally guarantees to Bank the prompt and
      complete payment and performance when due (whether at stated maturity, by
      acceleration or otherwise) of all Obligations, provided, however, the
      maximum liability of Guarantor hereunder shall not exceed at any time the sum
      of
      (a) $6,000,000.00, plus (b) all amounts owed pursuant to Section 13 of this
      Guaranty. Guarantor
      agrees that it shall execute such other documents or agreements and take such
      action as Bank shall reasonably request to effect the purposes of this Guaranty.
      This Guaranty shall terminate on the earlier to occur of (i) the date which
      is
      two (2) years from the Effective Date of the Loan Agreement (the “Release
      Date”), provided no Event of Default has occurred and is continuing thereunder,
      and (ii) if an Event of Default has occurred and is continuing on the Release
      Date, immediately upon the cure of such Event of Default.

     

    1.2    Separate
      Obligations. These
      obligations are independent of Borrower’s obligations and separate actions may
      be brought against Guarantor (whether action is brought against Borrower or
      whether Borrower is joined in the action).

     

    Section
      2.    Representations
      and Warranties.

     

    Guarantor
      hereby represents and warrants that:

     

    (a)    Guarantor
      (i) is a corporation duly
      organized, validly existing and in good standing under the laws of the State
      of
      Florida; (ii) is duly qualified to do business and is in good standing in every
      jurisdiction where the nature of its business requires it to be so qualified
      (except where the failure to so qualify would not have a material adverse effect
      on Guarantor’s condition, financial or otherwise, or on Guarantor’s ability to
      pay or perform the obligations hereunder); and (iii) has all requisite power
      and
      authority to execute and deliver this Guaranty and each Loan Document executed
      and delivered by Guarantor pursuant to the Loan Agreement or this Guaranty
      and
      to perform its obligations thereunder and hereunder.

     

    (b)    The
      execution, delivery and performance by Guarantor of this Guaranty (i) are
      within Guarantor’s powers and have been duly authorized by all necessary action;
      (ii) do not contravene Guarantor’s charter documents or any law or any
      contractual restriction binding on or affecting Guarantor or by which
      Guarantor’s property may be affected; (iii) do not require any authorization or
      approval or other action by, or any notice to or filing with, any governmental
      authority or any other Person under any indenture, mortgage, deed of trust,
      lease, agreement or other instrument to which Guarantor is a party or by which
      Guarantor or any of its property is bound, except such as have been obtained
      or
      made; and (iv) do not result in the imposition or creation of any Lien upon
      any
      property of Guarantor, other than the Lien created pursuant to that certain
      Stock Pledge Agreement by and between the Guarantor and Bank executed of even
      date herewith. 

     

    (c)    This
      Guaranty is a valid and binding obligation of Guarantor, enforceable against
      Guarantor in accordance with its terms, except as the enforceability thereof
      may
      be subject to or limited by bankruptcy, insolvency, reorganization, arrangement,
      moratorium or other similar laws relating to or affecting the rights of
      creditors generally. 

     

    
      
        
        

      

      
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    (d)    There
      is
      no action, suit or proceeding affecting Guarantor pending or threatened before
      any court, arbitrator, or governmental authority, domestic or foreign, which
      may
      have a material adverse effect on the ability of Guarantor to perform its
      obligations under this Guaranty. 

     

    (e)    Guarantor’s
      obligations hereunder are not subject to any offset or defense against Bank
      or
      Borrower of any kind.

     

    (f)    The
      financial statements of Guarantor, dated as of ________________, 20__ (audited)
      and ____________, 20__, (unaudited), copies of which have been furnished to
      Bank, fairly present the financial position and results of operations for
      Guarantor for the dates and periods purported to be covered thereby, all in
      accordance with GAAP, and there has been no material adverse change in the
      financial position or operations of Guarantor since the date of such financial
      statements. 

     

    (g)    To
      ensure
      the legality, validity, enforceability or admissibility into evidence of this
      Guaranty in each of the jurisdictions in which Guarantor is incorporated or
      organized and any jurisdiction in which Guarantor conducts business, it is
      not
      necessary that (i) this Guaranty be filed or recorded with any court or
      other authority in such jurisdiction, (ii) any other filings, notices,
      authorizations, approvals be obtained or other actions taken, or (iii) any
      stamp or similar tax be paid on or with respect to this Guaranty, or, if any
      of
      the foregoing actions are necessary, they have been duly taken.

     

    (h)           
      The
      incurrence of Guarantor’s obligations under this Guaranty will not cause
      Guarantor to (i) become insolvent; (ii) be left with unreasonably small capital
      for any business or transaction in which Guarantor is presently engaged or
      plans
      to be engaged; or (iii) be unable to pay its debts as such debts mature.

     

    (i)    
Guarantor
      covenants, warrants, and represents to Bank that all representations and
      warranties contained in this Guaranty shall be true at the time of Guarantor’s
      execution of this Guaranty, and shall continue to be true so long as this
      Guaranty remains in effect. Guarantor expressly agrees that any
      misrepresentation or breach of any warranty whatsoever contained in this
      Guaranty shall be deemed material.

     

    (j)    
Simultaneously
      with Guarantor’s filing of same with the Securities and Exchange Commission,
      Guarantor agrees that it shall deliver to Bank: (i) a company prepared
      consolidated balance sheet and income statement covering Guarantor’s
      consolidated operations during the period certified by a Responsible Officer
      and
      in a form acceptable to Bank; and (ii) audited consolidated financial statements
      prepared under GAAP, consistently applied, together with an unqualified opinion
      on the financial statements from an independent certified public accounting
      firm
      reasonably acceptable to Bank. In addition, Guarantor shall deliver to Bank
      any
      other financial information reasonably requested by Bank.

     

    Section
      3.    General
      Waivers.
      Guarantor waives:

     

    (a)    Any
      right
      to require Bank to (i) proceed against Borrower or any other person;
      (ii) proceed against or exhaust any security or (iii) pursue any other
      remedy. Bank may exercise or not exercise any right or remedy it has against
      Borrower or any security it holds (including the right to foreclose by judicial
      or nonjudicial sale) without affecting Guarantor’s liability hereunder.

     

    
      
        
        

      

      
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    (b)    Any
      defenses from disability or other defense of Borrower or from the cessation
      of
      Borrowers liabilities.

     

    (c)    Any
      setoff, defense or counterclaim against Bank.

     

    (d)    Any
      defense from the absence, impairment or loss of any right of reimbursement
      or
      subrogation or any other rights against Borrower. Until Borrower’s obligations
      to Bank have been paid, Guarantor has no right of subrogation or reimbursement
      or other rights against Borrower.

     

    (e)    Any
      right
      to enforce any remedy that Bank has against Borrower.

     

    (f)    Any
      rights to participate in any security held by Bank.

     

    (g)    Any
      demands for performance, notices of nonperformance or of new or additional
      indebtedness incurred by Borrower to Bank. Guarantor is responsible for being
      and keeping itself informed of Borrower’s financial condition. 

     

    (h)    The
      benefit of any act or omission by Bank which directly or indirectly results
      in
      or aids the discharge of Borrower from any of the Obligations by operation
      of
      law or otherwise.

     

    Section
      4.    Waiver
      of Defenses.
      Guarantor acknowledges that, to the extent Guarantor has or may have rights
      of
      subrogation or reimbursement against Borrower for claims arising out of this
      Guaranty, those rights may be impaired or destroyed if Bank elects to proceed
      against any real property security of Borrower by non-judicial foreclosure.
      That
      impairment or destruction could, under certain judicial cases and based on
      equitable principles of estoppel, give rise to a defense by Guarantor against
      its obligations under this Guaranty. Guarantor waives that defense and any
      others arising from Bank’s election to pursue non-judicial foreclosure.
      Guarantor waives the benefits, if any, of any statutory or common law rule
      that
      may permit a subordinating creditor to assert any defenses of a surety or
      guarantor, or that may give the subordinating creditor the right to require
      a
      senior creditor to marshal assets, and Guarantor agrees that it shall not assert
      any such defenses or rights.

     

    Section
      5.    Reinstatement.
      Notwithstanding any provision of the Loan Agreement to the contrary, the
      liability of Guarantor hereunder shall be reinstated and revived and the rights
      of Bank shall continue if and to the extent that for any reason any payment
      by
      or on behalf of Guarantor or Borrower is rescinded or must be otherwise restored
      by Bank, whether as a result of any proceedings in bankruptcy or reorganization
      or otherwise, all as though such amount had not been paid. The determination
      as
      to whether any such payment must be rescinded or restored shall be made by
      Bank
      in its sole discretion; provided,
      however,
      that if
      Bank chooses to contest any such matter at the request of Guarantor, Guarantor
      agrees to indemnify and hold harmless Bank from all costs and expenses
      (including, without limitation, reasonable attorneys’ fees) of such litigation.
      To the extent any payment is rescinded or restored, Guarantor’s obligations
      hereunder shall be revived in full force and effect without reduction or
      discharge for that payment.

     

    
      
        
        

      

      
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    Section
      6.    Intentionally
      omitted.

     

    Section
      7.    No
      Waiver; Amendments.
      No
      failure on the part of Bank to exercise, no delay in exercising and no course
      of
      dealing with respect to, any right hereunder shall operate as a waiver thereof;
      nor shall any single or partial exercise of any right hereunder preclude any
      other or further exercise thereof or the exercise of any other right. The
      remedies herein provided are cumulative and not exclusive of any remedies
      provided by law. This Guaranty may not be amended or modified except by written
      agreement between Guarantor and Bank, and no consent or waiver hereunder shall
      be valid unless in writing and signed by Bank. 

     

    Section
      8.    Compromise
      and Settlement.
      Except
      to the extent agreed to in writing by Bank, no compromise, settlement, release,
      renewal, extension, indulgence, change in, waiver or modification of any of
      the
      Obligations or the release or discharge of Borrower from the performance of
      any
      of the Obligations shall release or discharge Guarantor from this Guaranty
      or
      the performance of the obligations hereunder. 

     

    Section
      9.    Notice.
      Any
      notice or other communication herein required or permitted to be given shall
      be
      in writing and may be delivered in person or sent by facsimile transmission,
      overnight courier, or by United States mail, registered or certified, return
      receipt requested, postage prepaid and addressed as follows:

     

    If
      to
      Guarantor:                                   
Markland
      Technologies, Inc.

    222
      Metro
      Center Blvd.

    Warwick,
      Rhode Island 02886

    Attn:
      Mr.
      Robert Tarini

    Facsimile
      No.: (401) 454-1806

    Email:
      rtarini@aol.com

    

    with
      copies
      to:                                     
Greenberg
      Traurig, LLP

    One
      International Place

    Boston,
      Massachusetts 02110

    Attn:
      Jonathan Bell, Esquire

    Facsimile
      No.: (617) 310-6001

    Email:
      bellj@gtlaw.com

     

    If
      to
      Bank:                                             
Silicon
      Valley Bank

    One
      Newton Executive Park, Suite 200

    2221
      Washington Street

    Newton,
      Massachusetts 02462         

                                                               
      Attn:
      Mr.
      Michael Tramack    

    Facsimile
      No.: (617) 969-5962

    Email:
      mtramack@svb.com

     

    
      
        
        

      

      
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    with
      copies
      to:                                     
Riemer
      & Braunstein LLP

    Three
      Center Plaza

    Boston,
      Massachusetts 02108

    Attn:
      David A. Ephraim, Esquire

    Facsimile
      No.: (617) 880-3456

    Email:
      dephraim@riemerlaw.com

     

    or
      at
      such other address as may be substituted by notice given as herein provided.
      Every notice, demand, request, consent, approval, declaration or other
      communication hereunder shall be deemed to have been duly given or served on
      the
      date on which personally delivered or sent by facsimile transmission or three
      (3) Business Days after the same shall have been deposited in the United States
      mail. If
      sent
      by overnight courier service, the date of delivery shall be deemed to be the
      next Business Day after deposited with such service. 

     

    Section
      10.    Entire
      Agreement.
      This
      Guaranty constitutes and contains the entire agreement of the parties and
      supersedes any and all prior and contemporaneous agreements, negotiations,
      correspondence, understandings and communications between Guarantor and Bank,
      whether written or oral, respecting the subject matter hereof. 

     

    Section
      11.    Severability.
      If any
      provision of this Guaranty is held to be unenforceable under applicable law
      for
      any reason, it shall be adjusted, if possible, rather than voided in order
      to
      achieve the intent of Guarantor and Bank to the extent possible. In any event,
      all other provisions of this Guaranty shall be deemed valid and enforceable
      to
      the full extent possible under applicable law. 

     

    Section
      12.    Subordination
      of Indebtedness.
      Any
      indebtedness or other obligation of Borrower now or hereafter held by or owing
      to Guarantor is hereby subordinated in time and right of payment to all
      obligations of Borrower to Bank until payment in full of Obligations and
      termination of the Loan Agreement and this Guaranty, except as such indebtedness
      or other obligation is expressly permitted to be paid under the Credit
      Agreement; and such indebtedness of Borrower to Guarantor is assigned to Bank
      as
      security for this Guaranty, and if Bank so requests shall be collected, enforced
      and received by Guarantor in trust for Bank and to be paid over to Bank on
      account of the Obligations of Borrower to Bank, but without reducing or
      affecting in any manner the liability of Guarantor under the other provisions
      of
      this Guaranty. Any notes now or hereafter evidencing such indebtedness of
      Borrower to Guarantor shall be marked with a legend that the same are subject
      to
      this Guaranty and shall be delivered to Bank.

     

    Section
      13.    Payment
      of Expenses.
      Guarantor shall pay,
      promptly
      on demand,
      all
      Expenses incurred by Bank in defending and/or enforcing this Guaranty. For
      purposes hereof, “Expenses” shall mean costs and expenses (including reasonable
      fees and disbursements of any law firm or other external counsel and the
      allocated cost of internal legal services and all disbursements of internal
      counsel) for defending and/or enforcing this Guaranty (including those incurred
      in connection with appeals or proceedings by or against any Guarantor under
      the
      United States Bankruptcy Code, or any other bankruptcy or insolvency law,
      including assignments for the benefit of creditors, compositions, extensions
      generally with its creditors, or proceedings seeking reorganization,
      arrangement, or other relief).

     

    
      
        
        

      

      
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    Section
      14.    Assignment; Governing
      Law.
      This
      Guaranty shall be binding upon and inure to the benefit of Guarantor and Bank
      and their respective successors and assigns, except that Guarantor shall not
      have the right to assign its rights hereunder or any interest herein without
      the
      prior written consent of Bank, which may be granted or withheld in Bank’s sole
      discretion. Any such purported assignment by Guarantor without Bank’s written
      consent shall be void. This Guaranty shall be governed by, and construed in
      accordance with, the laws of the Commonwealth of Massachusetts without regard
      to
      principles thereof regarding conflict of laws.

     

    Section
      15.    JURISDICTION. Guarantor
      hereby irrevocably agrees that any legal action or proceeding with respect
      to
      this Guaranty or any of the agreements, documents or instruments delivered
      in
      connection herewith may be brought in the STATE AND FEDERAL courts LOCATED
      IN
      the Commonwealth of Massachusetts as BANK may elect (PROVIDED THAT GUARANTOR
      ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT
      LOCATED OUTSIDE OF THE STATE OF MASSACHUSETTS), and, by execution and delivery
      hereof, Guarantor accepts and consents to, generally and unconditionally, the
      jurisdiction of the aforesaid courts and agrees that such jurisdiction shall
      be
      exclusive, unless waived by BANK in writing, with respect to any action or
      proceeding brought by Guarantor against BANK. If for any reason Bank cannot
      avail itself of such courts in the Commonwealth of Massachusetts, Guarantor
      hereby irrevocably agrees to and accepts jurisdiction of the courts and venue
      in
      Santa Clara County, California. Nothing herein shall limit the right of BANK
      to
      bring proceedings against Guarantor in the courts of any other jurisdiction.
      Guarantor hereby waives, to the full extent permitted by law, any right to
      stay
      or to dismiss any action or proceeding brought before said courts on the basis
      of forum non conveniens.

     

    Section
      16.    WAIVER
      OF JURY TRIAL.
      EACH OF
BANK
      AND
      GUARANTOR HEREBY WAIVES, TO THE FULL EXTENT PERMITTED BY APPLICABLE LAW, ANY
      RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY
      OR
      INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS GUARANTY. EACH
      PARTY
      HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
      PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
      NOT,
      IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND
      (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED
      TO ENTER INTO THIS GUARANTY AND ANY RELATED INSTRUMENTS, AS APPLICABLE, BY,
      AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION
      16.

     

    
      
        
        

      

      
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      	 	GUARANTOR 
	 	 
	 	MARKLAND TECHNOLOGIES, INC.
	 	 
	 	By: Gino
              Pereira                                    
                      
	 	Name: Gino
              Pereira                                     
               
	 	Title: Chief
              Financial
              Officer                      
               

    

     

     

     

     

     

    8Third Party Stock Pledge Agreement

    EXHIBIT
      10.5

    THIRD
      PARTY

    STOCK
      PLEDGE AGREEMENT

     

     

    THIS
      STOCK PLEDGE AGREEMENT (the “Agreement”) is made this 4th
      day of
      August, 2006 by and between MARKLAND
      TECHNOLOGIES, INC.,
      a
      Florida corporation with a principal place of business at 222 Metro Center
      Blvd., Warwick, Rhode Island 02886 (“Pledgor”) and SILICON
      VALLEY BANK,
      a
      California-chartered bank, with its principal place of business at
      3003 Tasman Drive, Santa Clara, California 95054 and with a loan production
      office located at One Newton Executive Park, Suite 200, 2221 Washington Street,
      Newton, Massachusetts 02462 (“Bank”).

     

    Recitals

     

    Bank
      proposes to make certain loans to Technest Holdings, Inc. (the “Borrower”)
      pursuant to: (i) a certain Loan and Security Agreement dated as of August 4,
      2006 between Borrower, Lender, and certain other parties party thereto, as
      amended from time to time (as amended, the “Term Loan Agreement”), and (ii) a
      certain Loan and Security Agreement (Working Capital Line of Credit) dated
      as of
      August 4, 2006 between Borrower and Lender, and certain other parties party
      thereto, as amended from time to time (as amended, the “WCL Loan Agreement”)
      (hereinafter the Term Loan Agreement and the WCL Loan Agreement are collectively
      referred to as, the “Loan Agreement”). To secure the Obligations, as defined in
      the Loan Agreement and as referenced in the Unconditional Guaranty between
      Pledgor and Bank dated as of even date herewith (the “Guaranty”), Pledgor has
      agreed to pledge to Bank 1,739,130 (number of shares worth $6,000,000, to be
      determined on the closing date) shares of capital stock of Borrower in which
      Pledgor now owns or hereafter acquires an interest (the “Shares”). Any
      capitalized terms used without definition herein shall have the meanings
      assigned to them in the Loan Agreement.

     

    NOW,
      THEREFORE, Pledgor and Bank agree as follows:

     

    1.    Pledge
      of Securities.

     

    (a)    Pledgor
      hereby pledges, assigns and delivers to Bank and grants to Bank a security
      interest in the Shares, together with all proceeds and substitutions thereof,
      all cash, stock and other moneys and property paid thereon, all rights to
      subscribe for securities declared or granted in connection therewith, and all
      other cash and noncash proceeds of the foregoing (all hereinafter called the
      “Pledged Collateral”), as security for the prompt performance of all of the
      Obligations, as defined in the Loan Agreement and as referenced in the Guaranty
      (the “Secured Indebtedness”), and Pledgor’s obligations hereunder.

     

    (b)    The
      term
“Pledged Collateral” shall also include any securities, instruments or
      distributions of any kind issuable, issued or received by Pledgor upon
      conversion of, in respect of, or in exchange for any other Pledged Collateral,
      including, but not limited to, those arising from a stock dividend, stock split,
      reclassification, reorganization, merger, consolidation, sale of assets or
      other
      exchange of securities or any dividends or other distributions of any kind
      upon
      or with respect to the Pledged Collateral.

     

    (c)    The
      certificate or certificates for the securities included in the Pledged
      Collateral, accompanied by an instrument of assignment duly executed in blank
      by
      Pledgor, have been, or will be immediately upon the subsequent receipt thereof
      by Borrower, delivered by Pledgor to Bank. Pledgor shall cause the books of
      Borrower to reflect the pledge of the Shares. Upon the occurrence of an Event
      of
      Default hereunder, Bank may effect the transfer of any securities included
      in
      the Pledged Collateral into the name of Bank and cause new certificates
      representing such securities to be issued in the name of Bank. Pledgor will
      execute and deliver such documents, and take or cause to be taken such actions,
      as Bank may reasonably request to perfect or continue the perfection of Bank’s
      security interest in the Pledged Collateral.

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     

    2.    Representations,
      Warranties and Covenants.
      Pledgor
      represents and warrants to and covenants with Bank that:

     

    (a)    The
      Pledged Collateral is owned by Pledgor free and clear of any security interests,
      liens or encumbrances;

     

    (b)    Pledgor
      has full power and authority to create a first lien on the Pledged Collateral
      in
      favor of Bank and no disability or contractual obligation exists which would
      prohibit Pledgor from pledging the Pledged Collateral pursuant to this Pledge
      Agreement, and Pledgor will not assign, create or permit to exist any other
      claim to, lien or encumbrance upon, or security interest in any of the Pledged
      Collateral;

     

    (c)    There
      are
      no subscriptions, warrants or other options exercisable with respect to the
      Shares;

     

    (d)    The
      Shares have been duly authorized and validly issued, and are fully paid and
      non-assessable; and

     

    (e)    The
      Pledged Collateral is not the subject of any present or threatened suit, action,
      arbitration, administrative or other proceeding, and Pledgor knows of no
      reasonable grounds for the institution of any such proceedings.

     

    All
      the
      above representations and warranties shall survive the making of this
      Agreement.

     

    3.    Voting
      Prior to Demand.
      Unless
      an Event of Default (as defined below) shall have occurred and be continuing,
      Pledgor shall be entitled to exercise any voting rights with respect to the
      Pledged Collateral and to give consents, waivers and ratifications in respect
      thereof, provided
      that no
      vote shall be cast or consent, waiver or ratification given or action taken
      which would be inconsistent with any of the terms of this Agreement or which
      would constitute or create any violation of any of such terms. All such rights
      of Pledgor to vote and give consents, waiver and ratifications shall upon notice
      to Pledgor cease in case such an Event of Default hereunder shall occur and
      be
      continuing. 

     

    4.    Events
      of Default.
      Each of
      the following shall constitute an event of default (“Event of Default”)
      hereunder:

     

    (a)    The
      occurrence of, and the continuance of, an Event of Default under the Loan
      Agreement; or

     

    (b)    The
      breach of any provision of this Agreement by Pledgor or the failure by Pledgor
      to observe or perform any of the provisions of this Agreement.

     

    5.    Bank’s
      Remedies Upon Default.

     

    (a)    Upon
      the
      occurrence and during the continuance of an Event of Default, Bank shall have
      the right to exercise all such rights as a secured party under the Uniform
      Commercial Code of the Commonwealth of Massachusetts as it, in its sole
      judgment, shall deem necessary or appropriate, including the right to sell
      all
      or any part of the Pledged Collateral at one or more public or private sales
      upon ten (10) days’ written notice to Pledgor, and any such sale or sales may be
      made for cash, upon credit, or for future delivery, and in connection therewith,
      Bank may grant options, provided that any such terms or options shall, in the
      best judgment of Bank, be extended only in order to obtain the best possible
      price.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    (b)    Pledgor
      recognizes that Bank may be unable to effect a public sale of all or a part
      of
      the Pledged Collateral by reason of certain prohibitions contained in the
      Securities Act of 1933, as amended (“Act”), so that Bank may be compelled to
      resort to one or more private sales to a restricted group of purchasers who
      will
      be obliged to agree, among other things, to acquire the Pledged Collateral
      for
      their own account, for investment and without a view to the distribution or
      resale thereof. Pledgor understands that private sales so made may be at prices
      and on other terms less favorable to the seller than if the Pledged Collateral
      were sold at public sales, and agrees that Bank has no obligation to delay
      the
      sale of any of the Pledged Collateral for the period of time necessary (even
      if
      Bank would agree), to register such securities for sale under the Act. Pledgor
      agrees that private sales made under the foregoing circumstances shall be deemed
      to have been made in a commercially reasonable manner.

     

    (c)    After
      the
      sale of any of the Pledged Collateral, Bank may deduct all reasonable legal
      and
      other expenses and attorney’s fees for preserving, collecting, selling and
      delivering the Pledged Collateral and for enforcing its rights with respect
      to
      the Secured Indebtedness, and shall apply the residue of the proceeds to the
      Secured Indebtedness in such manner as Bank in its reasonable discretion shall
      determine, and shall pay the balance, if any to Pledgor.

     

    6.    Amendment
      of Loan Documents.
      Pledgor
      authorizes Bank, without notice, consent or demand and without affecting its
      liability hereunder, from time to time to (a) renew, extend, or otherwise change
      the terms of the Loan Documents, as defined in the Loan Agreement, or any part
      thereof; (b) take and hold security for the payment of the Loan Documents,
      and
      exchange, enforce, waive and release any such security; and (c) apply such
      security and direct the order or manner of sale thereof as Bank in its sole
      discretion may determine.

     

    7.    Pledgor
      Waivers.
      Pledgor
      waives any right to require Bank to (a) proceed against Borrower, any
      guarantor or any other person; (b) proceed against or exhaust any security
      held from Borrower; (c) marshal any assets of Borrower; or (d) pursue
      any other remedy in Bank’s power whatsoever. Bank may, at its election, exercise
      or decline or fail to exercise any right or remedy it may have against Borrower
      or any security held by Bank, including without limitation the right to
      foreclose upon any such security by judicial or nonjudicial sale, without
      affecting or impairing in any way the liability of Pledgor hereunder. Pledgor
      waives any defense arising by reason of any disability or other defense of
      Borrower or by reason of the cessation from any cause whatsoever of the
      liability of Borrower. Pledgor waives any setoff, defense or counterclaim that
      Borrower may have against Bank. Pledgor waives any right of subrogation or
      reimbursement, contribution or other rights against Borrower, and Pledgor waives
      any right to enforce any remedy that Bank now has or may hereafter have against
      Borrower. Pledgor waives any defense arising out of the absence, impairment
      or
      loss of any right of reimbursement or subrogation or any other rights against
      Borrower until payment in full of the Obligations and termination of the Loan
      Agreement and the Guaranty. Pledgor waives all rights to participate in any
      security now or hereafter held by Bank. Pledgor waives all presentments, demands
      for performance, notices of nonperformance, protests, notices of protest,
      notices of dishonor, notices of acceptance of this Pledge Agreement, notices
      of
      any default, notices of payment and nonpayment, or any nonpayment at maturity,
      notices of release, compromise, settlement, extension, or renewal of accounts,
      documents, instruments, chattel paper, and guarantees at any time held by Bank
      on which Pledgor may in any way be liable, and notices of the existence,
      creation, or incurring of new or additional indebtedness. Pledgor assumes the
      responsibility for being and keeping itself informed of the financial condition
      of Borrower and of all other circumstances bearing upon the risk of nonpayment
      of any indebtedness or nonperformance of any obligation of Borrower, warrants
      to
      Bank that it will keep so informed, and agrees that absent a request for
      particular information by Pledgor, Bank shall have no duty to advise Pledgor
      of
      information known to Bank regarding such condition or any such circumstances.
      

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    8.    Borrower
      Insolvency.
      If
      Borrower becomes insolvent or is adjudicated bankrupt or files a petition for
      reorganization, arrangement, composition or similar relief under any present
      or
      future provision of the United States Bankruptcy Code, or if such a petition
      is
      filed against Borrower, and in any such proceeding some or all of any
      indebtedness or obligations under the Loan Documents are terminated or rejected
      or any obligation of Borrower is modified or abrogated, or if Borrower’s
      obligations are otherwise avoided for insolvency, bankruptcy or any similar
      reason, Pledgor agrees that Pledgor’s liability hereunder shall not thereby be
      affected or modified and such liability shall continue in full force and effect
      as if no such action or proceeding had occurred. This Agreement shall continue
      to be effective or be reinstated, as the case may be, if any payment must be
      returned by Bank upon the insolvency, bankrupt-cy or reorganization of Borrower,
      Pledgor, any other person, or otherwise, as though such payment had not been
      made.

     

    9.    Indemnification.
      Pledgor
      agrees to defend, indemnify and hold harmless Bank and its officers, employees,
      and agents against: (a) all obligations, demands, claims, and liabilities
      claimed or asserted by any other party in connection with the transactions
      contemplated by this Agreement, and (b) all losses or expenses in any way
      suffered, incurred, or paid by Bank as a result of or in any way arising out
      of,
      following, or consequential to transactions between Bank and Pledgor, under
      this
      Agreement (including without limitation attorneys’ fees and expenses), except
      for obligations, demands, claims, liabilities, losses and Bank expenses caused
      by Bank’s gross negligence or willful misconduct.

     

    10.    Notices.
      Unless
      otherwise provided in this Agreement, all notices or demands by any party
      relating to this Agreement or any other agreement entered into in connection
      herewith shall be in writing and (except for financial statements and other
      informational documents which may be sent by first-class mail, postage prepaid)
      shall be personally delivered or sent by certified mail, postage prepaid, return
      receipt requested, or by prepaid telefacsimile to Pledgor or to Bank, as the
      case may be, at its addresses set forth below. Such notice shall be deemed
      effective three (3) days after deposit if sent by first class mail, upon actual
      receipt if personally delivered or sent by certified mail, or upon confirmed
      transmission if sent via telefacsimile.

     

    If
      to
      Pledgor:                
      Markland
      Technologies, Inc.

    222
      Metro
      Center Blvd.

    Warwick,
      Rhode Island 02886

    Attn:
      Mr.
      Robert Tarini

    Facsimile
      No.: (401) 454-1806

    Email:
      rtarini@aol.com

    

    with
      copies to:             
      Greenberg
      Traurig, LLP

    One
      International Place

    Boston,
      Massachusetts 02110

    Attn:
      Jonathan Bell, Esquire

    Facsimile
      No.: (617) 310-6001

    Email:
      bellj@gtlaw.com

     

    If
      to
      Bank:                    
Silicon
      Valley Bank

    One
      Newton Executive Park, Suite 200

    2221
      Washington Street

    Newton,
      Massachusetts 02462         

                                   
      Attn: Mr. Michael Tramack    

    Facsimile
      No.: (617) 969-5962

    Email:
      mtramack@svb.com

     

    with
      copies to:             
      Riemer
      & Braunstein LLP

    Three
      Center Plaza

    Boston,
      Massachusetts 02108

    Attn:
      David A. Ephraim, Esquire

    Facsimile
      No.: (617) 880-3456

    Email:
      dephraim@riemerlaw.com

     

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    The
      parties hereto may change the address at which they are to receive notices
      hereunder, by notice in writing in the foregoing manner given to the
      other.

     

    11.    CHOICE
      OF LAW AND VENUE; JURY TRIAL WAIVER

     

    The
      laws
      of the Commonwealth of Massachusetts shall apply to this Agreement. PLEDGOR
      ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, UNCONDITIONALLY,
      THE
      NON-EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT
      JURISDICTION IN THE COMMONWEALTH OF MASSACHUSETTS IN ANY ACTION, SUIT, OR
      PROCEEDING OF ANY KIND, AGAINST IT WHICH ARISES OUT OF OR BY REASON OF THIS
      AGREEMENT; PROVIDED, HOWEVER, THAT IF FOR ANY REASON BANK CANNOT AVAIL ITSELF
      OF
      THE COURTS OF THE COMMONWEALTH OF MASSACHUSETTS, PLEDGOR ACCEPTS JURISDICTION
      OF
      THE COURTS AND VENUE IN SANTA CLARA COUNTY, CALIFORNIA.

     

    PLEDGOR
      AND BANK EACH HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM
      OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE
      LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING
      CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW
      OR
      STATUTORY CLAIMS. EACH PARTY RECOGNIZES AND AGREES THAT THE FOREGOING WAIVER
      CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT. EACH
      PARTY REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL
      COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS
      FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

     

    (a)    This
      Agreement may not be amended or modified except by a written instrument signed
      by Bank and Pledgor.

     

    (b)    This
      Agreement and the agreements and instruments executed in connection therewith
      constitute the entire agreement between Bank and Pledgor with respect to the
      subject matter hereof and supersede all prior agreements, understandings, offers
      and negotiations, oral or written.

     

    (c)    This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which shall together constitute one and the
      same
      document.

     

    12.   Termination. This
      Agreement shall terminate on the earlier to occur of (i) the date which is
      two
      (2) years from the Effective Date of the Loan Agreement (the “Release Date”)
      provided no Event of Default has occurred and is continuing thereunder or (ii)
      if an Event of Default has occurred and is continuing on the Release Date,
      immediately upon the cure of such Event of Default. Upon the termination of
      this
      Agreement, Bank shall return any certificates for the securities included in
      the
      Pledged Collateral to Pledgor, to the extent Bank has possession of same, and
      shall terminate any control agreements relating to this Agreement.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

     

     

    EXECUTED
      as a
      sealed instrument this 4th
      day of
      August, 2006 under the laws of the Commonwealth of Massachusetts.

     

     

    PLEDGOR:

     

    MARKLAND
      TECHNOLOGIES, INC.

     

    By:
      /s/
      Gino
      Pereira                                                        

    Name:
      Gino
      Pereira                                                         

    Title:
      Chief
      Financial
      Officer                                         

     

    BANK:

     

    SILICON
      VALLEY BANK

     

    By:
      /s/
      Michael
      Tramack                                              

    Name:
      Michael
      Tramack                                               

    Title:
      Senior
      Vice
      President                                         

     

    

     

     

    6

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