Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 21

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 8
Chunk 21
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of medical and dental insurance coverage for her and her family until the end of the employment term and through the end of the second
anniversary of the date of termination. Provided, however, if such benefits cannot be continued for this extended period, the Executive
shall receive cash (including a tax-equivalency payment for Federal, state and local income and payroll taxes assuming Executive is in
the maximum tax bracket for all such purposes) where such benefits may not be continued. These agreements further provide for vesting
of all options and restrictive stock grants, if any.

These
agreements were designed to assist in the retention of the services of our named executives and to determine in advance the rights and
remedies of the parties in connection with any termination. The types and amounts of compensation and the triggering events set forth
in these agreements were based on a review of the terms and conditions of normal and customary agreements in our competitive marketplace.

Tax
and Accounting Implications 

Deductibility
of Executive Compensation 

As
part of its role, the Compensation Committee reviews and considers the deductibility of executive compensation under Section 162(m) of
the Internal Revenue Code, which provides that we may not deduct compensation of more than $1,000,000 that is paid to certain individuals.
The Compensation Committee is aware of the limitations imposed by Section 162(m) and considers the issue of deductibility when and if
circumstances warrant. The committee reviews proposed compensation plans in light of applicable tax deductions, and generally seeks to
maximize the deductibility for tax purposes of all elements of compensation. However, the committee may approve compensation that does
not qualify for deductibility, including stock option and time-based restricted stock awards, if and when the committee deems it to be
in the best interests of the Company and our shareholders.

Accounting
for Stock-Based Compensation 

We account for stock-based payments, including awards under our Employee Stock Option Plans, in accordance with the of
Financial Accounting Standards Board’s Accounting Standards Codification Topic 718, Compensation – Stock
Compensation.

Summary
Compensation 

The
following table shows the compensation for the fiscal years ended June 30, 2025 and 2024, earned by our Chairman and Chief Executive
Officer, our Chief Financial Officer who is our Principal Financial and Accounting Officer, and others considered to be executive officers
of the Company.

    Name and Principle Position 
    Fiscal Year Ended  
    Salary ($)  
    Bonus ($)  
    Stock Awards