Company: NTWK
Filing Date: 2025-05-01
Form Type: DEF 14A
Source: 0001641172-25-007993
Chunk: 35

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-01
Form: DEF 14A
Chunk 35
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 at the time of the grant of restricted stock in an amount equal to the fair market value of such shares
at that time, determined without regard to any of the restrictions. If the shares are forfeited before the restrictions lapse, the participant
will be entitled to no deduction on account thereof.

The participant’s tax basis in the restricted stock is the amount
recognized by him or her as income attributable to such shares. Gain or loss recognized by the participant on a subsequent disposition
of any such shares is capital gain or loss if the shares are otherwise capital assets.

Our Company will be entitled to a tax deduction in the same amount
as the income recognized by the participant as a result of the grant of restricted stock or lapse of restrictions in the taxable year
in which the participant recognizes such income.

Deferred Stock/Other Stock Awards. Participants
will not have taxable income upon the grant of deferred stock or other stock awards. Recognition of taxable income is postponed until
the restrictions on the awards lapse. At that time, the participant will recognize taxable income equal to the then fair market value
of the shares or other property issuable in payment of such award, and such amount will be the tax basis for such shares. Our Company
will be entitled to a tax deduction in the same amount as the income recognized by the participant as a result of the lapse of restrictions
in the taxable year in which the participant recognizes such income.

Other Tax Issues. As noted above, Section
162(m) of the Code limits our federal income tax deduction for compensation paid to the Chief Executive Officer and any of the three other
most highly compensated executive officers (other than the Chief Financial Officer) for the applicable taxable year. In certain instances,
our Company may be denied a compensation deduction for awards granted to certain executive officers that do not qualify as “performance-based
compensation” to the extent their aggregate compensation exceeds $1,000,000 in a given year.

As noted above, the Committee may, in its sole discretion, accelerate
the payment or vesting or release any restrictions on any awards in the event of a change in control of our Company (as defined in our
2008 Plan) or in the event of certain tender offers. If a participant’s award vests because of a change in (i) the ownership or effective
control of our Company or (ii) the ownership of a substantial portion of the assets of our Company and the participant is an officer,
shareholder or highly-compensated employee of our Company, such acceleration could be subject to