Company: NTWK
Filing Date: 2025-05-01
Form Type: DEF 14A
Source: 0001641172-25-007993
Chunk: 25

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-01
Form: DEF 14A
Chunk 25
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 limitation. In short, if our stockholders do not approve
this Proposal No. 4, we may not be able to access the capital markets, complete corporate collaborations or partnerships, and pursue other
business opportunities integral to our growth and success.

The additional common stock to be
authorized by stockholder approval of this Proposal 4 would have rights identical to the currently outstanding shares of our common
stock. Approval of this Proposal 4 and issuance of the additional authorized shares of common stock would not affect the rights of
the holders of currently outstanding shares of our common stock, except for effects incidental to increasing the number of shares of
our common stock outstanding, such as dilution of any earnings per share and voting rights of current holders of common stock. The
additional shares of common stock authorized by the approval of this Proposal 4 could be issued by the Board without further vote of
our stockholders except as may be required in particular cases by our Amended Articles of Incorporation, applicable law, regulatory
agencies or the NASDAQ listing standards. Under our Amended Articles of Incorporation, stockholders do not have preemptive rights to
subscribe to additional securities that we may issue, which means that current stockholders do not have a prior right there under to
purchase any new issue of common stock in order to maintain their proportionate ownership interests in NetSol.

Once Proposal 4 is passed by the stockholders, the Board of Directors
have the authority to increase the number of authorized shares of stock of the Company.

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The proposed amendment to our Amendment of Articles of Incorporation
to increase the number of authorized shares of our common stock could, under certain circumstances, have an anti-takeover effect. The
additional shares of common stock that would become available for issuance if this Proposal 4 is approved could also be used by us to
oppose a hostile takeover attempt or to delay or prevent changes in control or our management. For example, without further stockholder
approval, the Board could strategically sell shares of common stock in a private transaction to purchasers who would oppose a takeover
or favor the current Board. Although this proposal to increase the authorized common stock has been prompted by business and financial
considerations and not by the threat of any hostile takeover attempt (nor is the Board currently aware of any attempts directed at us),
stockholders should be aware that approval of this Proposal 4 could facilitate future efforts by us to deter or prevent changes in control,
including transactions in which the stockholders might otherwise receive