----

----

|   | Re: | Modifications to      Employment Agreement |
|--------|-----|--------------------------------------------|

|   | (a) | $61,875,      which shall be withheld by the Company for withholding taxes and other      similar deductions; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

|   | (b) | Balance      of $144,375 payable as follows: |
|--------|-----|----------------------------------------------|

|   | ii. | Cash      payments aggregating $61,875, payable in three tranches as      follows:  $20,000 payable immediately; $20,000 payable on or      before November 30, 2009; and $21,875, payable on or before December 31,      2009; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii. | $82,500, payable in the      form of issuance of restricted Company common stock, valued at $0.75 per      share. |
|--------|------|------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | $78,104,      shall be withheld by the Company for withholding taxes and other similar      deductions; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (b) | Balance      of $182,245 payable as follows: |
|--------|-----|----------------------------------------------|

|   | i. | Cash      payment $9,104 in one tranche, payable immediately;  and |
|--------|----|--------------------------------------------------------------------|

|   | ii. | $173,141, payable in the form of      issuance of restricted Company common stock, valued at $0.75 per      share. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

|                                                                                |   |   | Sincerely,                                   |   |
|-------------------------------------------------------------------------------------|--------|--------|----------------------------------------------|--------|
|                                                                                |   |   |                                         |   |
|                                                                                |   |   |                                         |   |
|                                                                                |   |   | /S/      LEONARD SOKOLOWLeonard      Sokolow |   |
|                                                                                |   |   |                                         |   |
| Accepted      and Agreed:                                                           |   |   |                                         |   |
|                                                                                |   |   |                                         |   |
| National      Holdings Corporation                                                  |   |   |                                         |   |
|                                                                                |   |   |                                         |   |
| By:/S/ MARK      GOLDWASSER           Mark Goldwasser, CEO |   |   |                                         |   |