Document:

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                                                                     EXHIBIT 4.7

                             TECHNEST HOLDINGS, INC.

                          CERTIFICATE OF DESIGNATION OF
                            SERIES B PREFERRED STOCK

                     NEVADA REVISED STATUTES SECTION 78.1955

         Technest Holdings, Inc., a Nevada corporation (the "COMPANY"),
certifies by and through its undersigned President or Vice-President and
Secretary or Assistant Secretary that the Board of Directors of the Company,
pursuant to Nevada Revised Statutes Section 78.1955 and Article IV, Section 2 of
the Articles of Incorporation of the Company, has adopted a resolution
establishing a series of the Company's authorized preferred stock designated as
Series B Preferred Stock (the "SERIES B PREFERRED STOCK").

         The number of shares of the Series B Preferred Stock which the Company
is authorized to issue is 1,149,425.

         The voting powers, designations, preferences, limitations, restrictions
and relative rights of the Series B Preferred Stock are set forth in the
Unanimous Consent of the Directors of Technest Holdings, Inc. set forth in
EXHIBIT A attached hereto and made a part hereof.

         In witness whereof, the undersigned have executed this Certificate of
Designation as of the 11th day of February, 2005.

                                                  TECHNEST HOLDINGS, INC.

                                                  By: __________________________
                                                      Name: Mark Allen
                                                      Title: Director

<PAGE>

                                                                      EXHIBIT A
                                                                      ---------

                   UNANIMOUS WRITTEN CONSENT OF THE DIRECTORS

                                       OF

                             TECHNEST HOLDINGS, INC.

                                       TO

                         ACTIONS TAKEN WITHOUT A MEETING

         Pursuant to Section 78.315 of the Nevada Revised Statutes and Article
IV, Section 2 of the Articles of Incorporation (the "ARTICLES OF INCORPORATION")
of Technest Holdings, Inc., a Nevada corporation (the "COMPANY"), the
undersigned, being all of the directors (the "DIRECTORS") of the Company, hereby
take the following actions by unanimous written consent (this "Consent") in lieu
of a meeting of the Directors, by consent of said Directors, as set forth in the
following resolutions, as if taken by unanimous vote of the Directors at a
special meeting of the directors at which all of the Directors were present:

         WHEREAS, the Directors desire to establish and designate a series of
shares of preferred stock of the Company and to fix and determine the
designation, number, voting powers, preferences, limitations, restrictions and
relative rights thereof in accordance with the following resolutions;

         NOW, THEREFORE, be it hereby:

         RESOLVED: That the Company shall be, and hereby is, authorized to issue
up to 1,149,425 shares of a series of the preferred stock, $0.001 par value per
share, of the Company with the following voting powers, designation,
preferences, limitations, restrictions and relative rights:

      1. DESIGNATION AND CONSIDERATION

         The designation of the series of the Preferred Stock created by this
resolution shall be, and hereby is, the "Series B Preferred Stock". Shares of
this series are referred to herein as the "Series B Preferred Stock". Each share
of the Series B Preferred Stock shall be issued for such consideration as set
forth in the Securities Purchase Agreement, dated February 14, 2005, between the
Company and the purchasers listed on the signature pages thereto (the
"PURCHASERS"), and upon receipt of such consideration shall be duly and validly
issued, fully paid and nonassessable.

      2. DEFINITIONS. Capitalized terms used herein and not otherwise defined
shall have the following meanings:

         "CLOSING BID PRICE" shall mean the per share closing bid price of the
         Markland Common Stock as reported by Bloomberg L.P.

         "COMMON STOCK" shall mean the common stock, par value $0.001 per share,
         of the Company.

         "LIQUIDATION PREFERENCE" shall have the meaning ascribed to such term
         in Section 6(a).

         "MARKET PRICE" shall mean the average Closing Bid Price during the 20
         Trading Days prior to the first date on which the Series B Preferred
         Stock may be converted pursuant to SECTION 5 herein.

                                      -2-
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         "MARKLAND" shall mean Markland Technologies, Inc., a Florida
         corporation.

         "MARKLAND COMMON STOCK" shall mean the common stock, $.0001 par value
         per share, of Markland.

         "PRINCIPAL MARKET" shall mean the Nasdaq National Market, the Nasdaq
         Small Cap Market, the America Stock Exchange, the Over the Counter
         Bulletin Board or the New York Stock Exchange, whichever is at the time
         the principal trading exchange or market for the Markland Common Stock.

         "TRADING DAY" shall mean any day during which the Principal Market
         shall be open for business.

      3. RANK. The shares of Series B Preferred Stock shall, with respect to the
distribution of assets on liquidation, dissolution or winding up of the Company,
rank senior and prior to the Common Stock and any other class or series of
capital stock of the Company currently or hereafter issued not expressly
designated as ranking senior to the Series B Preferred Stock (the "JUNIOR
SECURITIES"). The Series B Preferred Stock shall rank Pari Passu with the
Company's Series A Convertible Preferred Stock, and the Company's Series C
Preferred Stock.

      4. VOTING RIGHTS. Notwithstanding anything herein to the contrary, so long
as any shares of Series B Preferred Stock are outstanding, the Company shall
not, without the affirmative vote of the holders of a majority of the shares of
the Series B Preferred Stock then outstanding, (i) alter or change adversely the
absolute or relative powers, preferences or rights given to the Series B
Preferred Stock, (ii) alter or amend this Certificate of Designations, (iii)
amend its Articles of Incorporation, bylaws or other charter documents so as to
affect adversely any rights of any holders of Series B Preferred Stock, (iv)
increase the authorized number of shares of Series B Preferred Stock, or (v)
enter into any agreement to do any of the foregoing. Except as provided herein
or as required by applicable law, the Series B Preferred Stock shall have no
voting rights.

      5. OPTIONAL CONVERSION.

         The holders of the Series B Preferred Stock shall have conversion
rights as follows (the "CONVERSION RIGHTS"):

         (a) RIGHT TO CONVERT. From and after the earlier to occur of (a) the
first anniversary of the Closing Date (as defined in the Securities Purchase
Agreement) and (b) a date which is the first Trading Day after the date on which
Markland Common Stock reaches a Closing Bid Price of $2.50 (subject to
appropriate adjustment in the event of any stock dividend, stock split,
combination or other similar recapitalization affecting such shares) or more for
five consecutive Trading Days, each share of Series B Preferred Stock shall be
convertible, at the option of the holder thereof, and without the payment of
additional consideration by the holder thereof, into such number of fully paid
and nonassessable shares of Markland Common Stock (the "CONVERSION PRICE") as is
determined by dividing the quotient of (A) $5,000,000 divided by the lower of
(x) $0.60 (the "MAXIMUM CONVERSION PRICE") and (y) the Market Price by (B)
1,149,425.

         (b) FRACTIONAL SHARES. The Company shall not deliver any fraction of a
share of Markland Common Stock upon any conversion. All shares of Markland
Common Stock (including fractions thereof) to be delivered upon conversion of
more than one share of the Series B Preferred Shares by a holder thereof shall
be aggregated for purposes of determining whether the conversion would result in
the requirement for the Company to deliver a fraction of a share of Markland
Common Stock. If, after the aforementioned aggregation, the issuance would
result in the Company being required to deliver a fraction of a share of
Markland Common Stock, the Company shall round such fraction of a share of
Markland Common Stock down to the nearest whole share.

                                      -3-
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         (c) RESTRICTIONS ON CONVERSION. The holder shall not convert any of the
Series B Preferred Stock pursuant to this SECTION 5, if such conversion would
cause the aggregate number of shares of Markland Common Stock beneficially owned
by the holder and its affiliates (including, but not limited to, any person who
may be deemed an affiliate for purposes of aggregation under Rule 144(e)
promulgated under the Securities Act of 1933, as amended) to exceed 4.999% of
the outstanding shares of the Markland Common Stock following such conversion.
For purposes of this paragraph, beneficial ownership shall be calculated in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended. By written notice to the Company, a holder may waive the provisions of
this SECTION 5(C) as to itself but any such waiver will not be effective until
the 65th day after delivery thereof and such waiver shall have no effect on any
other holder PROVIDED THAT, in no event shall the number of shares of Common
Stock that may be acquired by a holder and its affiliates (including, but not
limited to, any person who may be deemed an affiliate for purposes of
aggregation under Rule 144(e) promulgated under the Securities Act of 1933, as
amended) exceed 9.999% of the outstanding shares of the Markland Common Stock
following such conversion.

         (d) CERTAIN ADJUSTMENTS AND OTHER EVENTS. The Maximum Conversion Price
will be subject to adjustment from time to time as provided in this SECTION
5(D).

                  (i) ADJUSTMENTS FOR SUBDIVISIONS OR COMBINATIONS OF COMMON
STOCK. In the event the outstanding shares of Markland Common Stock shall be
subdivided by stock split, stock dividend, reclassification or otherwise, into a
greater number of shares of Markland Common Stock or Markland shall declare a
dividend payable in any right to acquire Markland Common Stock for no
consideration, the Maximum Conversion Price or the Conversion Price (as the case
may be) in effect immediately prior to such event shall, concurrently with the
effectiveness of such subdivision, be proportionately decreased. In the event
the outstanding shares of Markland Common Stock shall be combined or
consolidated by reclassification or otherwise into a lesser number of shares of
Markland Common Stock, the Maximum Conversion Price or the Conversion Price (as
the case may be)in effect immediately prior to such event shall, concurrently
with the effectiveness of such combination or consolidation, be proportionately
increased.

                  (ii) ADJUSTMENTS FOR REORGANIZATION, RECLASSIFICATIONS OR
SIMILAR EVENTS. If the Markland Common Stock shall be changed into shares of any
other class or classes of stock, whether by capital reorganization,
reclassification or otherwise (other than a subdivision or combination of shares
provided for in SECTIONS 5(D)(I)), referred to herein as an "ORGANIC CHANGE",
then the Maximum Conversion Price or the Conversion Price (as the case may be)
then in effect shall, concurrently with the effectiveness of such reorganization
or reclassification or other event, be proportionately adjusted so that each
Series B Preferred Share shall thereafter be convertible into such number of
shares of such other class or classes of stock as the number of shares of
Markland Common Stock of the corporation deliverable upon conversion of such
Series B Preferred Share immediately before such reorganization,
reclassification or other event would have become in connection with such
reorganization, reclassification or other event.

         (e) MECHANICS OF CONVERSION.

                           (1) SURRENDER OF CERTIFICATES. In order for a holder
of Series B Preferred Stock to voluntarily convert shares of Series B Preferred
Stock into shares of Markland Common Stock, such holder shall surrender the
certificate or certificates for such shares of Series B Preferred Stock (or, if
such registered holder alleges that such certificate has been lost, stolen or
destroyed, a lost certificate affidavit and agreement reasonably acceptable to

                                      -4-
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the Corporation to indemnify the Corporation against any claim that may be made
against the Corporation on account of the alleged loss, theft or destruction of
such certificate), at the office of the transfer agent for the Series B
Preferred Stock (or at the principal office of the Company if the Company serves
as its own transfer agent), together with written notice that such holder elects
to convert all or any number of the shares of the Series B Preferred Stock
represented by such certificate or certificates and, if applicable, any event on
which such conversion is contingent. The close of business on the date of
receipt by the transfer agent of such certificates (or lost certificate
affidavit and agreement) and notice (or by the Company if the Company serves as
its own transfer agent) shall be the time of conversion (the "CONVERSION TIME").
The Company shall, as soon as practicable after the Conversion Time, deliver at
such office to such holder of Series B Preferred Stock, or to his, her or its
nominees, a certificate or certificates for the number of shares of Markland
Common Stock to which such holder shall be entitled.

                           (2) CANCELLATION OF SERIES B PREFERRED STOCK. All
shares of Series B Preferred Stock which shall have been surrendered for
conversion as herein provided shall no longer be deemed to be outstanding and
all rights with respect to such shares, including the rights, if any, to receive
notices and to vote, shall immediately cease and terminate at the Conversion
Time, except only the right of the holders thereof to receive shares of Markland
Common Stock in exchange therefor. Any shares of Series B Preferred Stock so
converted shall be retired and cancelled and shall not be reissued as shares of
such series, and the Company (without the need for stockholder action) may from
time to time take such appropriate action as may be necessary to reduce the
authorized number of shares of Series B Preferred Stock accordingly.

                           (3) TRANSFER TAXES, ETC. The Company shall pay any
and all issue and other similar taxes that may be payable in respect of any
delivery of shares of Markland Common Stock upon conversion of shares of Series
B Preferred Stock pursuant to this SECTION 5. The Company shall not, however, be
required to pay any tax which may be payable in respect of any transfer involved
in the delivery of shares of Markland Common Stock in a name other than that in
which the shares of Series B Preferred Stock so converted were registered, and
no such delivery shall be made unless and until the person or entity requesting
such issuance has paid to the Company the amount of any such tax or has
established, to the satisfaction of the Company, that such tax has been paid.

      6. LIQUIDATION.

         (a) LIQUIDATION AMOUNT. In the event of any voluntary or involuntary
liquidation, dissolution or winding up of the affairs of the Company, before any
distribution or payment shall be made to the holders of outstanding Junior
Securities, including, but not limited to, the Common Stock, and after the
holders of any other shares of Preferred Stock ranking senior to the Series B
Preferred Stock (the "Senior Securities") shall have been paid in full the
amounts to which they shall be entitled, the holders of outstanding shares of
Series B Preferred Stock shall be entitled to receive, out of the assets of the
Company at the time legally available therefor, in exchange for their shares of
Series B Preferred Stock an amount in cash equal to $2.175 per share of Series B
Preferred Stock, as adjusted for stock splits, stock dividends,
recapitalizations and other similar events (the "LIQUIDATION PREFERENCE"). If,
upon any such voluntary or involuntary liquidation, dissolution or winding up of
the affairs of the Company, the assets of the Company available therefor shall
be insufficient to permit the payment in full to the holders of outstanding
shares of Series B Preferred Stock of the preferential liquidation amounts to
which they are then entitled pursuant to the provisions of this clause (a), the
entire assets of the Company remaining, if any, after distributions required to
be made in respect of Senior Securities, thus distributable shall be distributed
among the holders of outstanding shares of Series B Preferred Stock ratably, in
proportion to the full amounts to which such holders would otherwise be entitled
if such assets were sufficient to permit payment in full.

                                      -5-
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         (b) LIMITATION ON DISTRIBUTION. Upon any such voluntary or involuntary
liquidation, dissolution or winding up of the affairs of the Company, after the
payment in full to the holders of outstanding shares of Series B Preferred Stock
of the preferential liquidation amounts to which they are then entitled pursuant
to the provisions of clause (a) above, the holders of outstanding shares of
Series B Preferred Stock shall not be entitled to participate in any further
distributions made to the holders of the Common Stock or any other class of
Junior Securities.

      7. NOTICES. All notices, demands, requests, consents, approvals, and other
communications required or permitted hereunder shall be in writing and, unless
otherwise specified herein, shall be (i) personally served, (ii) deposited in
the mail, registered or certified, return receipt requested, postage prepaid,
(iii) delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice given in accordance herewith. Any notice or other
communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile at the address or
number designated below (if delivered on a business day during normal business
hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the third business day
following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever
shall first occur.

                                      -6-
<PAGE>

                                     ANNEX A

                             TECHNEST HOLDINGS, INC.

                                CONVERSION NOTICE

         Reference is made to the Certificate of Designations, Preferences and
Rights of Technest Holdings, Inc. (the "CERTIFICATE OF DESIGNATIONS"). In
accordance with and pursuant to the Certificate of Designations, the undersigned
hereby elects to convert the number of shares of Series B Convertible Preferred
Stock, $.001 par value per share ("SERIES B PREFERRED SHARES"), of Technest
Holdings, Inc., a Nevada corporation (the "COMPANY"), indicated below into
shares of the common stock, Markland Technologies, Inc., Florida coporation,
$.0001 par value per share (the "MARKLAND COMMON STOCK"), by tendering the stock
certificate(s) representing the share(s) of Series B Preferred Shares specified
below as of the date specified below.

         The undersigned acknowledges that any sales by the undersigned of the
securities issuable to the undersigned upon conversion of the Series B Preferred
Shares shall be made only pursuant to (i) a registration statement effective
under the Securities Act of 1933, as amended (the "ACT"), or (ii) advice of
counsel that such sale is exempt from registration required by Section 5 of the
Act.

         Please confirm the following information:

                       Date of Conversion:

                       ________________________________________

                       Number of Series B Preferred Shares to be converted

                       ________________________________________

                       Stock certificate no(s). of Series B Preferred Shares
                       to be converted:

                       ________________________________________

                       Number of shares of Markland Common Stock:

                       ________________________________________

                                      -7-
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Please issue the Common Stock into which the Series B Preferred Shares are being
converted in the following name and to the following address:

                       Issue to(1):

                       ________________________________________

                       Facsimile Number:_______________________

                       Authorization:

                       ________________________________________

                       By:_____________________________________

                       Title:__________________________________

                       Date:___________________________________

ACKNOWLEDGED AND AGREED:

TECHNEST HOLDINGS, INC.

By: _________________________________

Name: _______________________________

Title: ______________________________

Date: ___________________

---------------
(1) If other than to the record Holder of the Series B Preferred Shares, any
applicable transfer tax must be paid by the undersigned.

                                      -8-<PAGE>
                                                                     EXHIBIT 4.8

                             TECHNEST HOLDINGS, INC.

                          CERTIFICATE OF DESIGNATION OF
                      SERIES C CONVERTIBLE PREFERRED STOCK

                     NEVADA REVISED STATUTES SECTION 78.1955

         Technest Holdings, Inc., a Nevada corporation (the "COMPANY"),
certifies by and through its undersigned President or Vice-President and
Secretary or Assistant Secretary that the Board of Directors of the Company,
pursuant to Nevada Revised Statutes Section 78.1955 and Article IV, Section 2 of
the Restated Articles of Incorporation of the Company, has adopted a resolution
establishing a series of the Company's authorized preferred stock designated as
Series C Convertible Preferred Stock (the "SERIES C PREFERRED STOCK").

         The number of shares of the Series C Preferred Stock which the Company
is authorized to issue is 1,149,425.

         The voting powers, designations, preferences, limitations, restrictions
and relative rights of the Series C Preferred Stock are set forth in the
Unanimous Consent of the Directors of Technest Holdings, Inc. set forth in
EXHIBIT A attached hereto and made a part hereof.

         In witness whereof, the undersigned have executed this Certificate of
Designation as of the 11th day of February, 2005.

                                                 TECHNEST HOLDINGS, INC.

                                                 By:____________________________

                                                 Name:

                                                 Title:

<PAGE>

                                                                      EXHIBIT A
                                                                      ---------

                   UNANIMOUS WRITTEN CONSENT OF THE DIRECTORS

                                       OF

                             TECHNEST HOLDINGS, INC.

                                       TO

                         ACTIONS TAKEN WITHOUT A MEETING

         Pursuant to Section 78.315 of the Nevada Revised Statutes and Article
IV, Section 2 of the Restated Articles of Incorporation (the "RESTATED ARTICLES
OF INCORPORATION") of Technest Holdings, Inc., a Nevada corporation (the
"COMPANY"), the undersigned, being all of the directors (the "DIRECTORS") of the
Company, hereby take the following actions by unanimous written consent (this
"CONSENT") in lieu of a meeting of the Directors, as set forth in the following
resolutions, such resolutions setting forth the designations, powers,
preferences and rights of the Company's Series C Convertible Preferred Stock
(the "CERTIFICATE OF DESIGNATIONS"):

         WHEREAS, the Directors desire to establish and designate a series of
shares of preferred stock of the Company and to fix and determine the
designation, number, voting powers, preferences, limitations, restrictions and
relative rights thereof in accordance with the following resolutions;

         NOW, THEREFORE, be it hereby:

         RESOLVED: That the Company shall be, and hereby is, authorized to issue
up to 1,149,425 shares of a series of the preferred stock, $0.001 par value per
share, of the Company with the following voting powers, designation,
preferences, limitations, restrictions and relative rights (the "SERIES C
PREFERRED STOCK"):

         1. DIVIDENDS. The Series C Preferred Shares shall not bear any
dividends except as provided herein.

         2. CONVERSION OF SERIES C PREFERRED SHARES. A person or entity holding
shares of Series C Preferred Stock (a "HOLDER") shall have the following
conversion rights:

                  (a) CONVERSION RIGHT. subject to the limitation set forth in
SECTION 2(B) and subject to the availability of sufficient authorized shares of
Common Stock for issuing at conversion, each share of Series C Preferred Stock
(a "SERIES C PREFERRED SHARE") shall be convertible, at the option of the Holder
thereof at the office of the Company or any transfer agent for the Series C
Preferred Stock, into such number of fully paid and nonassessable shares of the
Company's common stock, $.001 par value per share ("COMMON STOCK"), rounded
downward to the nearest whole share in accordance with SECTION 2(E) below, and

                                      -2-
<PAGE>

as is determined by dividing $2.175 by the Series C Conversion Price (as defined
below) in effect at the time of conversion. The "SERIES C CONVERSION PRICE"
shall initially be equal to $.0102993. Such initial Series C Conversion Price,
and the rate at which shares of Series C Preferred Stock may be converted into
shares of Common Stock, shall be subject to adjustment as provided below.

                  (b) CONVERSION RESTRICTIONS. In no event shall any Holder be
entitled to convert Series C Preferred Shares if such conversion would cause the
aggregate number of shares of Common Stock beneficially owned by the Holder and
its affiliates (including, but not limited to, any person who may be deemed an
affiliate for purposes of aggregation under Rule 144(e) promulgated under the
Securities Act of 1933, as amended) to exceed 4.999% of the outstanding shares
of the Common Stock following such conversion. For purposes of this paragraph,
beneficial ownership shall be calculated in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended. By written notice to the Company, a
holder may waive the provisions of this SECTION 2(B) as to itself but any such
waiver will not be effective until the 65th day after delivery thereof and such
waiver shall have no effect on any other holder PROVIDED THAT, in no event shall
the number of shares of Common Stock that may be acquired by a holder and its
affiliates (including, but not limited to, any person who may be deemed an
affiliate for purposes of aggregation under Rule 144(e) promulgated under the
Securities Act of 1933, as amended) exceed 9.999% of the outstanding shares of
the Markland Common Stock following such conversion.

                  (c) CERTAIN ADJUSTMENTS AND OTHER EVENTS. The Series C
Conversion Price will be subject to adjustment from time to time as provided in
this SECTION 2(C).

                           (i) ADJUSTMENTS FOR SUBDIVISIONS OR COMBINATIONS OF
                           COMMON STOCK. In the event the outstanding shares of
                           Common Stock shall be subdivided by stock split,
                           stock dividend, reclassification or otherwise, into a
                           greater number of shares of Common Stock or the
                           Company shall declare a dividend payable in any right
                           to acquire Common Stock for no consideration, the
                           Series C Conversion Price in effect immediately prior
                           to such event shall, concurrently with the
                           effectiveness of such subdivision, be proportionately
                           decreased. In the event the outstanding shares of
                           Common Stock shall be combined or consolidated by
                           reclassification or otherwise into a lesser number of
                           shares of Common Stock, the Series C Conversion Price
                           in effect immediately prior to such event shall,
                           concurrently with the effectiveness of such
                           combination or consolidation, be proportionately
                           increased.

                           (ii) ADJUSTMENTS FOR STOCK DIVIDENDS AND OTHER
                           DISTRIBUTIONS. In the event the Company makes, or
                           fixes a record date for the determination of holders
                           of Common Stock entitled to receive any distribution
                           (excluding repurchases of securities by the Company
                           not made on a PRO RATA basis) payable in property or
                           in securities of the Company other than shares of
                           Common Stock, and other than as otherwise adjusted
                           for in this SECTION 2(C)(I), (III) OR (IV), in
                           connection with a dividend, then and in each such

                                      -3-
<PAGE>

                           event the Holders of the Series C Preferred Stock
                           shall receive, at the time of such distribution, the
                           amount of property or the number of securities of the
                           Company that they would have received had their
                           Series C Preferred Shares been converted into Common
                           Stock on the date of such event.

                           (iii) ADJUSTMENTS FOR REORGANIZATION,
                           RECLASSIFICATIONS OR SIMILAR EVENTS. If the Common
                           Stock shall be changed into shares of any other class
                           or classes of stock, whether by capital
                           reorganization, reclassification or otherwise (other
                           than a subdivision or combination of shares provided
                           for in SECTIONS 2(C)(I)), referred to herein as an
                           "ORGANIC Change", then the Series C Conversion Price
                           then in effect shall, concurrently with the
                           effectiveness of such reorganization or
                           reclassification or other event, be proportionately
                           adjusted so that each Series C Preferred Share shall
                           thereafter be convertible into such number of shares
                           of such other class or classes of stock as the number
                           of shares of Common Stock of the corporation
                           deliverable upon conversion of such Series C
                           Preferred Share immediately before such
                           reorganization, reclassification or other event would
                           have become in connection with such reorganization,
                           reclassification or other event.

                           (iv) SPIN OFF. If, at any time prior to a Conversion
                           Date, the Company consummates a spin off or otherwise
                           divests itself of a part of its business or
                           operations or disposes of all or of a part of its
                           assets in a transaction (the "SPIN OFF") in which the
                           Company does not receive just compensation for such
                           business, operations or assets, but causes securities
                           of another entity (the "SPIN OFF SECURITIES") to be
                           issued to security Holders of the Company, then the
                           Company shall cause (i) to be reserved Spin Off
                           Securities equal to the number thereof which would
                           have been issued to the Holder had all of the
                           Holder's Series C Preferred Shares outstanding on the
                           record date (the "RECORD DATE") for determining the
                           amount and number of Spin Off Securities to be issued
                           to security Holders of the Company been converted as
                           of the close of business on the trading day
                           immediately before the Record Date (the "RESERVED
                           SPIN OFF SHARES"), and (ii) to be issued to the
                           Holder on the conversion of all or any of the
                           outstanding Series C Preferred Shares, such amount of
                           the Reserved Spin Off Shares equal to (x) the
                           Reserved Spin Off Shares multiplied by (y) a
                           fraction, of which (a) the numerator is the principal
                           amount of the outstanding Series C Preferred Shares
                           then being converted, and (b) the denominator is the
                           principal amount of all the outstanding Series C
                           Preferred Shares.

                           (v) NOTICES.

                                      -4-
<PAGE>

                                    (1) Immediately upon any adjustment, the
                                    Company will give written notice thereof to
                                    each Holder of Series C Preferred Shares,
                                    setting forth in reasonable detail and
                                    certifying the calculation of such
                                    adjustment.

                                    (2) The Company will give written notice to
                                    each Holder of Series C Preferred Shares at
                                    least ten (10) days prior to the date on
                                    which the Company closes its books or sets a
                                    record date (I) with respect to any dividend
                                    or distribution upon the Common Stock, (II)
                                    with respect to any pro rata subscription
                                    offer to Holders of Common Stock or (III)
                                    for determining rights to vote with respect
                                    to any Organic Change, dissolution or
                                    liquidation.

                                    (3) The Company will also give written
                                    notice to each Holder of Series C Preferred
                                    Shares at least ten (10) days prior to the
                                    date on which any Organic Change,
                                    dissolution or liquidation will take place.

                  (d) MECHANICS OF CONVERSION.

                           (i) HOLDER'S DELIVERY REQUIREMENTS. To convert Series
                           C Preferred Shares into full shares of Common Stock
                           on any date (the "CONVERSION DATE"), the Holder
                           thereof shall (A) deliver or transmit by facsimile,
                           for receipt on or prior to 11:59 p.m., Eastern
                           Standard Time, on such date, a copy of a fully
                           executed notice of conversion in the form attached
                           hereto as ANNEX A (the "CONVERSION NOTICE") to the
                           Company or its designated transfer agent for the
                           Series C Preferred Stock (the "TRANSFER AGENT"), and
                           (B) surrender to a common carrier for delivery to the
                           Company or the Transfer Agent as soon as practicable
                           following such date, the original certificates
                           representing the Series C Preferred Shares being
                           converted (or an indemnification undertaking with
                           respect to such shares in the case of their loss,
                           theft or destruction) (the "PREFERRED STOCK
                           CERTIFICATES") and the originally executed Conversion
                           Notice.

                           (ii) COMPANY'S RESPONSE. Upon receipt by the Company
                           or the Transfer Agent of the Preferred Stock
                           Certificates to be converted pursuant to a Conversion
                           Notice, together with the originally executed
                           Conversion Notice, the Company or the Transfer Agent
                           (as applicable) shall, within five (5) business days
                           following the date of receipt, (A) issue and
                           surrender to a common carrier for overnight delivery
                           to the address specified in the Conversion Notice, a
                           certificate, registered in the name of the Holder or
                           its designee, for the number of shares of Common
                           Stock to which the Holder shall be entitled or (B)
                           credit the aggregate number of shares of Common Stock
                           to which the Holder shall be entitled to the Holder's
                           or its designee's balance account at The Depository
                           Trust Company.

                                      -5-
<PAGE>

                           (iii) RECORD HOLDER. The person or persons entitled
                           to receive the shares of Common Stock issuable upon a
                           conversion of Series C Preferred Shares shall be
                           treated for all purposes as the record Holder or
                           Holders of such shares of Common Stock on the
                           Conversion Date.

                  (e) FRACTIONAL SHARES. The Company shall not issue any
fraction of a share of Common Stock upon any conversion. All shares of Common
Stock (including fractions thereof) issuable upon conversion of more than one
share of the Series C Preferred Shares by a Holder thereof shall be aggregated
for purposes of determining whether the conversion would result in the issuance
of a fraction of a share of Common Stock. If, after the aforementioned
aggregation, the issuance would result in the issuance of a fraction of a share
of Common Stock, the Company shall round such fraction of a share of Common
Stock down to the nearest whole share.

                  (f) TAXES. The Company shall pay any and all taxes which may
be imposed upon it with respect to the issuance and delivery of Common Stock
upon the conversion of the Series C Preferred Shares.

                  (g) CANCELLATION OF SERIES C PREFERRED STOCK. If any shares of
Series C Preferred Stock are converted pursuant to this Certificate of
Designations, the shares so converted shall be cancelled and shall return to the
status of authorized, but unissued preferred stock of no designated series.

         3. REISSUANCE OF CERTIFICATES. In the event of a conversion pursuant to
this Certificate of Designations of less than all of the Series C Preferred
Shares represented by a particular Preferred Stock Certificate, the Company
shall promptly cause to be issued and delivered to the Holder of such Series C
Preferred Shares a Preferred Stock Certificate representing the remaining Series
C Preferred Shares which have not been so converted or redeemed.

         4. RESERVATION OF SHARES. The Company shall use its best efforts to
effect a reverse split of its outstanding shares of Common Stock sufficient to
provide for conversion of the Series C Preferred Shares. After such reverse
split, so long as any of the Series C Preferred Shares are outstanding, the
Company shall reserve and keep available out of its authorized and unissued
Common Stock, solely for the purpose of effecting the conversion of the Series C
Preferred Shares, such number of shares of Common Stock as shall from time to
time be sufficient to affect the conversion of all of the Series C Preferred
Shares then outstanding.

         5. VOTING RIGHTS. The Series C Shares shall have no voting rights
except as otherwise provided in SECTION 9 or as required by the Chapter 78 of
the Nevada Revised Statutes.

         6. LIQUIDATION PREFERENCE.

                  (a) LIQUIDATION, DISSOLUTION, WINDING-UP. In the event of any
voluntary or involuntary liquidation, dissolution, or winding up of the Company,
and after payment in full has been made the holders of senior securities of the

                                      -6-
<PAGE>

full amounts to which they shall be entitled by reason of their ownership of the
senior securities, the Holders of the Series C Preferred Shares shall be
entitled to receive, prior and in preference to any distribution of any assets
or funds of the Company to the holders of the Common Stock by reason of their
ownership thereof, an amount per Series C Preferred Share equal to $2.175 (such
sum being referred to as the "LIQUIDATION VALUE"); PROVIDED THAT, if the assets
and funds of the Company legally available for distribution to stockholders by
reason of their ownership of the stock of this Company shall be insufficient to
permit the payment to the Holders of the Series C Preferred Stock of the
aggregate Liquidation Value which they would otherwise be entitled to receive,
plus all amounts due to holders of shares of other classes or series of
preferred stock of the Company that are of equal rank with the Series C
Preferred Stock for purposes of preference in the event of any voluntary or
involuntary liquidation, dissolution, or winding up of the Company ("PARI PASSU
SHARES"), then the entire assets and funds of the Company legally available for
distribution to the holders of the Series C Preferred Shares and the Pari Passu
Shares shall be distributed ratable among the holders of the Series C Preferred
Stock and the Pari Passu Shares in proportion to the aggregate assets or funds
of the Company each holder of the Series C Preferred Shares or Pari Passu Shares
would receive based on their ownership of such shares if there were an amount of
assets or funds of the Company legally available to pay the full liquidation
preference due to the holders of the Series C Preferred Shares and the Pari
Passu Shares by reason of their ownership thereof. The purchase or redemption by
the Company of stock of any class in any manner permitted by law, shall not for
the purposes hereof, be regarded as a liquidation, dissolution or winding up of
the Company. Neither the consolidation or merger of the Company with or into any
other Person, nor the sale or transfer by the Company of less than substantially
all of its assets, shall, for the purposes hereof, be deemed to be a
liquidation, dissolution or winding up of the Company. No Holder of Series C
Preferred Shares shall be entitled to receive any amounts with respect thereto
upon any liquidation, dissolution or winding up of the Company other than the
amounts provided for herein.

                  (b) RANK. The Series C Preferred Stock shall rank (i) senior
to Company's Common Stock, (ii) Pari Passu with the Company's Series A
Convertible Preferred Stock, (iii) Pari Passu to the Company's Series B
Preferred Stock.

         7. PREFERRED RATE. All shares of Common Stock shall be of junior rank
to all Series C Preferred Shares in respect to the preferences as to
distributions and payments upon the liquidation, dissolution, and winding up of
the Company. Without the prior express written consent of the Holders of not
less than a majority of the then outstanding Series C Preferred Shares, the
Company shall not hereafter authorize or make any amendment to the Company's
Certificate of Incorporation or bylaws, or make any resolution of the board of
directors with the Nevada Secretary of State containing any provisions, which
would materially and adversely affect or otherwise impair the rights or relative
priority of the Holders of the Series C Preferred Shares relative to the Holders
of the Common Stock. In the event of the merger or consolidation of the Company
with or into another corporation, the Series C Preferred Shares shall maintain
their relative powers, designations, and preferences provided for herein and no
merger shall result inconsistent therewith.

                                      -7-
<PAGE>

         8. RESTRICTION ON DIVIDENDS. If any Series C Preferred Shares are
outstanding, without the prior express written consent of the Holders of not
less than a majority of the then outstanding Series C Preferred Shares, the
Company shall not, directly or indirectly, declare, pay or make any dividends or
other distributions upon any of the Common Stock, unless written notice thereof
has been given to Holders of the Series C Preferred Shares at least 10 days
prior to the earlier of (a) the record date taken for or (b) the payment of any
such dividend or other distribution. Notwithstanding the foregoing, this SECTION
8 shall not prohibit the Company from declaring and paying a dividend in cash
with respect to the Common Stock so long as the Company: (i) pays simultaneously
to each Holder of Series C Preferred Shares an amount in cash equal to the
amount such Holder would have received had all of such Holder's Series C
Preferred Shares been converted to Common Stock pursuant to SECTION 2 hereof one
business day prior to the record date for any such dividend.

         9. VOTE TO CHANGE THE TERMS OF SERIES C PREFERRED SHARES. Except as
provided in SECTION 7 above, the affirmative vote at a meeting duly called for
such purpose, or the written consent without a meeting of the Holders of not
less than a majority of the then outstanding Series C Preferred Shares, shall be
required for any change, modification or amendment to this Certificate of
Designations or any waiver of any right of the Series C Preferred Shares or any
amendment to the Company's Restated Articles of Incorporation if such amendment
would materially and adversely affect the rights, preferences or privileges of
the Series C Preferred Shares.

         10. LOST OR STOLEN CERTIFICATES. Upon receipt by the Company of
evidence satisfactory to the Company of the loss, theft, destruction or
mutilation of any Preferred Stock Certificate representing Series C Preferred
Shares, and, in the case of loss, theft or destruction, of an indemnification
undertaking, in form and substance reasonably satisfactory to the Company, by
the Holder to the Company and, in the case of mutilation, upon surrender and
cancellation of the preferred stock certificate(s), the Company shall execute
and deliver new preferred stock certificate(s) of like tenor and date; provided,
that, the Company shall not be obligated to re-issue preferred stock
certificates if the Holder contemporaneously requests the Company to convert
such Series C Preferred Shares into Common Stock.

                                      -8-
<PAGE>

                                     ANNEX A

                             TECHNEST HOLDINGS, INC.

                                CONVERSION NOTICE

         Reference is made to the Certificate of Designations, Preferences and
Rights of Technest Holdings, Inc. (the "CERTIFICATE OF DESIGNATIONS"). In
accordance with and pursuant to the Certificate of Designations, the undersigned
hereby elects to convert the number of shares of Series C Convertible Preferred
Stock, $.001 par value per share ("SERIES C PREFERRED SHARES"), of Technest
Holdings, Inc., a Nevada corporation (the "COMPANY"), indicated below into
shares of the Company's common stock, $.001 par value per share (the "COMMON
STOCK"), by tendering the stock certificate(s) representing the share(s) of
Series C Preferred Shares specified below as of the date specified below.

         The undersigned acknowledges that any sales by the undersigned of the
securities issuable to the undersigned upon conversion of the Series C Preferred
Shares shall be made only pursuant to (i) a registration statement effective
under the Securities Act of 1933, as amended (the "ACT"), or (ii) advice of
counsel that such sale is exempt from registration required by Section 5 of the
Act.

         Please confirm the following information:

                       Date of Conversion:

                       ________________________________________

                       Number of Series C Preferred Shares to be converted

                       ________________________________________

                       Stock certificate no(s). of Series C Preferred Shares
                       to be converted:

                       ________________________________________

                       Number of shares of Common:

                       ________________________________________

                                      -9-
<PAGE>

Please issue the Common Stock into which the Series C Preferred Shares are being
converted in the following name and to the following address:

                       Issue to(1):

                       ________________________________________

                       Facsimile Number:_______________________

                       Authorization:

                       ________________________________________

                       By:_____________________________________

                       Title:__________________________________

                       Date:___________________________________

ACKNOWLEDGED AND AGREED:

TECHNEST HOLDINGS, INC.

By: _________________________________

Name: _______________________________

Title: ______________________________

Date: ___________________

----------------
(1) If other than to the record Holder of the Series C Preferred Shares, any
applicable transfer tax must be paid by the undersigned.

                                      -10-

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