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<P style="margin-top:0pt; margin-bottom:12pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin-top:0pt; margin-bottom:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Washington, D.C. 20549</B></P>
<P style="margin-top:0pt; margin-bottom:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>___________________________________________</B></P>
<P style="margin-top:0pt; margin-bottom:12pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>FORM 8-K</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>CURRENT REPORT</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>PURSUANT TO SECTION 13 OR 15(D) OF THE</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SECURITIES EXCHANGE ACT OF 1934</B></P>
<P style="margin-top:0pt; margin-bottom:10pt; text-indent:36pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:10pt; text-indent:36pt; font-family:Times New Roman" align=center>Date of Report (Date of earliest event reported): &nbsp;February 27, 2006</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>TECHNEST HOLDINGS, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>(Exact Name of Registrant as Specified in Charter)</I></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD valign=top width=212.8><P style="margin:0pt; padding-bottom:3pt; font-family:Times New Roman; border-bottom:0.5pt solid #000000" align=center><B>Nevada</B></P>
</TD><TD valign=top width=212.8><P style="margin:0pt; padding-bottom:3pt; font-family:Times New Roman; border-bottom:0.5pt solid #000000" align=center><B>000-27023</B></P>
</TD><TD valign=top width=212.8><P style="margin:0pt; padding-bottom:3pt; font-family:Times New Roman; border-bottom:0.5pt solid #000000" align=center><B>88-0357272</B></P>
</TD></TR>
<TR><TD valign=top width=212.8><P style="margin:0pt; font-family:Times New Roman" align=center><I>(State or other jurisdiction</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>of incorporation)</I></P>
</TD><TD valign=top width=212.8><P style="margin:0pt; font-family:Times New Roman" align=center><I>(Commission</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>File Number)</I></P>
</TD><TD valign=top width=212.8><P style="margin:0pt; font-family:Times New Roman" align=center><I>(IRS Employer</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Identification Number)</I></P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><I><BR></I></P>
<P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center><B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88 Royal Little Drive, Providence, RI &nbsp;02904</U></B></P>
<P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center><I>&nbsp;(Address of principal executive offices) (Zip Code)</I></P>
<P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center><B><U>276 Washington Street, No. 367, &nbsp;Boston, MA 02108</U></B></P>
<P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center><I>(Mailing Address)</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>(617) 973-5104</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>&nbsp;(Registrant&#146;s telephone number, including area code)</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><U>N/A</U></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>(Former Name or Former Address, if Changed Since Last Report)</I></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman">Check the appropriate box below if the form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below).</P>
<P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman">[ ] &nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>
<P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman">[ ] &nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
<P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman">[ ] &nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>
<P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman">[ ] &nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR>
<BR></P>
<P style="page-break-before:always; margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman"><B>ITEM 1.01 </B></P>
<P style="margin:0pt; text-indent:72pt; font-family:Times New Roman"><B>Entry Into a Material Definitive Agreement.</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman">On February 27, 2006, we entered into an agreement (the &#147;Amendment No. 2&#148;), with Verdi Consulting, Inc. (&#147;Verdi&#148;), ipPartners, Inc. (&#147;ipPartners&#148;), and Southridge Partners LP (&#147;Southridge&#148;) (collectively, the &#147;Holders&#148;) to amend the Registration Rights Agreement dated February 14, 2005, which was filed as Exhibit 4.3 to our current report on Form 8-K filed with the SEC on February 15, 2005 (SEC File No. 000-27023), by and among the Company and certain holders of the Company&#146;s Series C Preferred Stock (the &#147;Registration Rights Agreement&#148;). The purpose of Amendment No. 2 was to amend the Registration Rights Agreement to clarify Section 4 to more accurately reflect the original intent of the purchasers to ensure an orderly flow of the Registrable Securities (as such term is defined in the Registration Rights Agreement) into the public markets. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman">The Registration Rights Agreement was filed as Exhibit 4.3 to our current report on form 8-K filed with the SEC on February 15, 2005 (SEC File No. 000-27023) and is incorporated herein by reference as Exhibit 4.1. &nbsp;Amendment No.2 is filed herewith as Exhibit 4.2.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman"><I>Relationship with Investors</I></P>
<P style="margin:0pt; font-family:Times New Roman"><I><BR></I></P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman">Each of the Investors was an investor in the February 14, 2005 private placement by which the Company acquired all of the outstanding common stock of Genex Technologies, Inc., and by which the Company became a majority owned subsidiary of Markland Technologies, Inc. &nbsp;This transaction was described in our current report on Form 8-K filed with the SEC on February 15, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman">ipPartners is a corporation majority owned and controlled by Robert Tarini. &nbsp;Mr Tarini the chief executive officer and chairman of the board of directors of the Company. &nbsp;Mr. Tarini is also the chief executive officer and chairman of the board of directors of Markland Technologies, Inc., which owns approximately 90% of our outstanding common stock.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-14pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Item 9.01</B></P>
<P style="margin-top:0pt; margin-bottom:12pt; text-indent:72pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Financial Statements and Exhibits</B></P>
<P style="margin-top:0pt; margin-bottom:12pt; text-indent:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>(c) Exhibits</B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=61.2 rowspan=2><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>Exhibit No.</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=186 rowspan=2><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>Description</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=72 rowspan=2><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>Filed with this 8-K</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=319.2 colspan=3><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>Incorporated by reference</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>Form</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>Filing Date</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>Exhibit No.</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=61.2><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman">4.1 </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=186><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman">Registration Rights Agreement between Technest Holdings, Inc. and Southridge Partners LP, Southshore Capital Fund Limited, ipPartners, Inc, Verdi Consulting, Inc., DKR Soundshore Oasis Holding Fund, Ltd., DKR Soundshore Strategic Holding Fund, Ltd. and Deer Creek Fund, LP for Technest Series C Preferred Stock and Warrants for Technest common stock, dated February 14, 2005</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=72>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>8-K</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>February 15, 2005</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>4.3</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=61.2><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman">4.2</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=186><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman">Amendment No. 2 to Registration Rights Agreement</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=72><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>x</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4>&nbsp;</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:10pt; text-indent:36pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman"><BR>
<BR></P>
<P style="margin:0pt; text-indent:225.5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">- 2 -</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:11pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>SIGNATURES</B></P>
<P style="margin-top:0pt; margin-bottom:11pt; text-indent:36pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. </P>
<P style="margin:0pt; padding-left:216pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B>TECHNEST HOLDINGS, INC.</B></P>
<P style="margin:0pt; padding-left:216pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; padding-left:216pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; padding-left:216pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-13pt; padding-left:216pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">By:</P>
<P style="margin:0pt; padding-left:216pt; text-indent:36pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><U>/s/ Gino M. Pereira</U></P>
<P style="margin:0pt; padding-left:216pt; text-indent:36pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Chief Financial Officer</P>
<P style="margin:0pt; padding-left:216pt; text-indent:18pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; padding-left:216pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Date: &nbsp;March &nbsp;__, 2006</P>
<P style="margin-top:0pt; margin-bottom:11pt; font-family:Times New Roman; font-size:11pt"><BR>
<BR></P>
<P style="margin:0pt; text-indent:225.5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">- 3 -</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center><B>EXHIBIT INDEX</B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=61.2 rowspan=2><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>Exhibit No.</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=186 rowspan=2><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>Description</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=72 rowspan=2><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>Filed with this 8-K</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=319.2 colspan=3><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>Incorporated by reference</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>Form</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>Filing Date</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>Exhibit No.</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=61.2><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman">4.1 </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=186><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman">Registration Rights Agreement between Technest Holdings, Inc. and Southridge Partners LP, Southshore Capital Fund Limited, ipPartners, Inc, Verdi Consulting, Inc., DKR Soundshore Oasis Holding Fund, Ltd., DKR Soundshore Strategic Holding Fund, Ltd. and Deer Creek Fund, LP for Technest Series C Preferred Stock and Warrants for Technest common stock, dated February 14, 2005</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=72>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>8-K</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>February 15, 2005</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>4.3</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=61.2><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman">4.2</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=186><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman">Amendment No. 2 to Registration Rights Agreement</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=72><P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center>x</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=106.4>&nbsp;</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:11pt; font-family:Times New Roman; font-size:11pt"><B><BR></B></P>
<P style="margin-top:0pt; margin-bottom:11pt; font-family:Times New Roman; font-size:11pt"><BR>
</P>
<P style="margin:0pt; text-indent:225.5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">- 4 -</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
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{"company-data": {"conformed-name": "TECHNEST HOLDINGS INC", "cik": "0001077800", "assigned-sic": "3829", "irs-number": "880357272", "state-of-incorporation": "NV", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-27023", "film-number": "06660103"}, "business-address": {"street1": "90 GROVE ST", "street2": "STE 1", "city": "RIDGEFIELD", "state": "CT", "zip": "06877", "phone": "2034318300"}, "mail-address": {"street1": "90 GROVE ST", "street2": "STE 1", "city": "RIDGEFIELD", "state": "CT", "zip": "06877"}, "former-company": {"former-conformed-name": "FINANCIAL INTRANET INC/NY", "date-changed": "19990128"}}
Converted by EDGARwiz
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):  February 27, 2006
TECHNEST HOLDINGS, INC.
(Exact Name of Registrant as Specified in Charter)
Nevada
000-27023
88-0357272
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification Number)
88 Royal Little Drive, Providence, RI  02904
(Address of principal executive offices) (Zip Code)
276 Washington Street, No. 367,  Boston, MA 02108
(Mailing Address)
(617) 973-5104
(Registrant's telephone number, including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below).
[ ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 1.01
Entry Into a Material Definitive Agreement.
On February 27, 2006, we entered into an agreement (the "Amendment No. 2"), with Verdi Consulting, Inc. ("Verdi"), ipPartners, Inc. ("ipPartners"), and Southridge Partners LP ("Southridge") (collectively, the "Holders") to amend the Registration Rights Agreement dated February 14, 2005, which was filed as Exhibit 4.3 to our current report on Form 8-K filed with the SEC on February 15, 2005 (SEC File No. 000-27023), by and among the Company and certain holders of the Company's Series C Preferred Stock (the "Registration Rights Agreement"). The purpose of Amendment No. 2 was to amend the Registration Rights Agreement to clarify Section 4 to more accurately reflect the original intent of the purchasers to ensure an orderly flow of the Registrable Securities (as such term is defined in the Registration Rights Agreement) into the public markets.
The Registration Rights Agreement was filed as Exhibit 4.3 to our current report on form 8-K filed with the SEC on February 15, 2005 (SEC File No. 000-27023) and is incorporated herein by reference as Exhibit 4.1.  Amendment No.2 is filed herewith as Exhibit 4.2.
Relationship with Investors
Each of the Investors was an investor in the February 14, 2005 private placement by which the Company acquired all of the outstanding common stock of Genex Technologies, Inc., and by which the Company became a majority owned subsidiary of Markland Technologies, Inc.  This transaction was described in our current report on Form 8-K filed with the SEC on February 15, 2005.
ipPartners is a corporation majority owned and controlled by Robert Tarini.  Mr Tarini the chief executive officer and chairman of the board of directors of the Company.  Mr. Tarini is also the chief executive officer and chairman of the board of directors of Markland Technologies, Inc., which owns approximately 90% of our outstanding common stock.
Item 9.01
Financial Statements and Exhibits
(c) Exhibits
Exhibit No.
Description
Filed with this 8-K
Incorporated by reference
Form
Filing Date
Exhibit No.
4.1
Registration Rights Agreement between Technest Holdings, Inc. and Southridge Partners LP, Southshore Capital Fund Limited, ipPartners, Inc, Verdi Consulting, Inc., DKR Soundshore Oasis Holding Fund, Ltd., DKR Soundshore Strategic Holding Fund, Ltd. and Deer Creek Fund, LP for Technest Series C Preferred Stock and Warrants for Technest common stock, dated February 14, 2005
8-K
February 15, 2005
4.3
4.2
Amendment No. 2 to Registration Rights Agreement
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
TECHNEST HOLDINGS, INC.
By:
/s/ Gino M. Pereira
Chief Financial Officer
Date:  March  __, 2006
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EXHIBIT INDEX
Exhibit No.
Description
Filed with this 8-K
Incorporated by reference
Form
Filing Date
Exhibit No.
4.1
Registration Rights Agreement between Technest Holdings, Inc. and Southridge Partners LP, Southshore Capital Fund Limited, ipPartners, Inc, Verdi Consulting, Inc., DKR Soundshore Oasis Holding Fund, Ltd., DKR Soundshore Strategic Holding Fund, Ltd. and Deer Creek Fund, LP for Technest Series C Preferred Stock and Warrants for Technest common stock, dated February 14, 2005
8-K
February 15, 2005
4.3
4.2
Amendment No. 2 to Registration Rights Agreement
x
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