Company: NTWK
Filing Date: 2025-04-16
Form Type: PRE 14A
Source: 0001641172-25-005001
Chunk: 34

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-04-16
Form: PRE 14A
Chunk 34
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 gains if the participant held the shares for more than one year after the exercise of the ISO, or otherwise
will offset up to $3,000 of long-term or short-term capital gains each year with the remainder carried forward if the participant held
the shares for less than one year after the exercise of the ISO.

Our Company is not entitled to an income tax deduction on the grant
or exercise of an ISO or on the participant’s disposition of the shares after satisfying the holding period requirements described above.
If the holding periods are not satisfied, our Company will be entitled to a deduction in the year the participant disposes of the shares
in an amount equal to the ordinary income recognized by the participant.

The recipient of an NQSO will not realize any taxable income upon
the grant of the option. Upon exercise of such option, the participant will realize ordinary income in an amount generally measured by
the excess, if any, of the fair market value of the shares on the date of exercise over the option exercise price. Our Company will generally
be entitled to a deduction in the same amount as the ordinary income realized by the participant. Upon the sale of such shares, the participant
will realize short-term or long-term capital gain or loss, depending upon the length of time the shares are held. Such gain or loss will
be measured by the difference between the sale price of the shares and the fair market value on the date of exercise. Special rules will
apply in cases where a recipient of an award pays the exercise or purchase price of the award or applicable withholding tax obligations
under our 2025 Plan by delivering previously owned shares or by reducing the number of shares otherwise issuable pursuant to the award.
The surrender or withholding of such shares will in certain circumstances result in the recognition of income with respect to such shares
or a carryover basis in the shares acquired, and may constitute a disposition for purposes of applying the ISO holding periods discussed
above.

Stock Appreciation Rights. There will
be no federal income tax consequences to either the participant or our Company on the grant of a stock appreciation right or while the
right remains outstanding. Upon the exercise of such right, the participant will recognize ordinary income in an amount equal to the amount
of cash and/or the fair market value, at the date of such exercise, of the shares received by such participant as a result of such exercise.
Our Company will generally be entitled to a corresponding tax deduction.

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Restricted Stock. The federal income tax
consequences of a grant