Document:

Unassociated Document

    

    THE
      SECURITIES REPRESENTED HEREBY MAY NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES
      HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF 1933, AS
      AMENDED, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144(K), OR (III)
      THE
      COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT
      SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES
      ACT
      OF 1933 OR QUALIFICATION UNDER APPLICABLE STATE OR PROVINCIAL SECURITIES
      LAWS.

    

    SUBJECT
      TO THE PROVISIONS OF SECTION 10 HEREOF, THIS WARRANT SHALL BE VOID AFTER 5:00
      P.M. EASTERN TIME ON JULY 27th,
      2009
      (the “EXPIRATION DATE”).

    

    No.W-A-9

    

    

    TIGER
      ETHANOL INTERNATIONAL INC.

    

    WARRANT
      TO PURCHASE 375 000 SHARES OF

    COMMON
      STOCK, PAR VALUE $0.001 PER SHARE

    SERIES
      A

    

    For
      VALUE
      RECEIVED, ADAGIO MARINE LTD. (“Warrantholder”), is entitled to purchase, subject
      to the provisions of this Warrant, from Tiger Ethanol International Inc., a
      Nevada corporation (“Company”), at any time not later than 5:00 P.M., Eastern
      time, on the Expiration Date (as defined above), at an exercise price per share
      equal to Two Dollars and Fifty cents ($2.50) (the exercise price in effect
      being
      herein called the “Warrant Price”), 375 000 shares
      (“Warrant Shares”) of the Company’s Common Stock, par value $0.001 per share
      (“Common Stock”). The number of Warrant Shares purchasable upon exercise of this
      Warrant and the Warrant Price shall be subject to adjustment from time to time
      as described herein.

    

    Section
      1. Registration.
      The
      Company shall maintain books for the transfer and registration of the Warrant.
      Upon the initial issuance of this Warrant, the Company shall issue and register
      the Warrant in the name of the Warrantholder.

    

    Section
      2. Transfers.
      As
      provided herein, this Warrant may be transferred only pursuant to a registration
      statement filed under the Securities Act of 1933, as amended (the “Securities
      Act”), or an exemption from such registration. Subject to such restrictions, the
      Company shall transfer this Warrant from time to time upon the books to be
      maintained by the Company for that purpose, upon surrender thereof for transfer
      properly endorsed or accompanied by appropriate instructions for transfer and
      such other documents as may be reasonably required by the Company, including,
      if
      required by the Company, an opinion of its counsel to the effect that such
      transfer is exempt from the registration requirements of the Securities Act,
      to
      establish that such transfer is being made in accordance with the terms hereof,
      and a new Warrant shall be issued to the transferee and the surrendered Warrant
      shall be canceled by the Company.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    Section
      3. Exercise
      of Warrant.
      Subject
      to the provisions hereof, the Warrantholder may exercise this Warrant in whole
      or in part at any time prior to its expiration upon surrender of the Warrant,
      together with delivery of the duly executed Warrant exercise form attached
      hereto as Appendix A (the “Exercise Agreement”) and payment by cash, certified
      check or wire transfer of funds (or,
      in
      certain circumstances, by cash-less exercise as provided in Section 18 below)
      for
      the
      aggregate Warrant Price for that number of Warrant Shares then being purchased,
      to the Company during normal business hours on any business day at the Company’s
      principal executive offices (or such other office or agency of the Company
      as it
      may designate by notice to the Warrantholder). The Warrant Shares so purchased
      shall be deemed to be issued to the Warrantholder or the Warrantholder’s
      designee, as the record owner of such shares, as of the close of business on
      the
      date on which this Warrant shall have been surrendered (or evidence of loss,
      theft or destruction thereof and security or indemnity satisfactory to the
      Company), the Warrant Price shall have been paid and the completed Exercise
      Agreement shall have been delivered. Certificates for the Warrant Shares so
      purchased, representing the aggregate number of shares specified in the Exercise
      Agreement, shall be delivered to the Warrantholder within a reasonable time,
      not
      exceeding three (3) business days, after this Warrant shall have been so
      exercised. The certificates so delivered shall be in such denominations as
      may
      be requested by the Warrantholder and shall be registered in the name of the
      Warrantholder or such other name as shall be designated by the Warrantholder.
      If
      this Warrant shall have been exercised only in part, then, unless this Warrant
      has expired, the Company shall, at its expense, at the time of delivery of
      such
      certificates, deliver to the Warrantholder a new Warrant representing the number
      of shares with respect to which this Warrant shall not then have been exercised.
      As used herein, “business day” means a day, other than a Saturday or Sunday, on
      which banks in New York City are open for the general transaction of business.
      Each exercise hereof shall constitute the re-affirmation by the Warrantholder
      that the representations and warranties contained in Section 5 of the Purchase
      Agreement (as defined below) are true and correct in all material respects
      with
      respect to the Warrantholder as of the time of such exercise. 

    

    Section
      4. Compliance
      with the Securities Act of 1933.
      Except
      as provided in the Purchase Agreement (as defined below), the Company may cause
      the legend set forth on the first page of this Warrant to be set forth on each
      Warrant or similar legend on any security issued or issuable upon exercise
      of
      this Warrant, unless counsel for the Company is of the opinion as to any such
      security that such legend is unnecessary.

    

    Section
      5. Payment
      of Taxes.
      The
      Company will pay any documentary stamp taxes attributable to the initial
      issuance of Warrant Shares issuable upon the exercise of the Warrant; provided,
      however, that the Company shall not be required to pay any tax or taxes which
      may be payable in respect of any transfer involved in the issuance or delivery
      of any certificates for Warrant Shares in a name other than that of the
      Warrantholder in respect of which such shares are issued, and in such case,
      the
      Company shall not be required to issue or deliver any certificate for Warrant
      Shares or any Warrant until the person requesting the same has paid to the
      Company the amount of such tax or has established to the Company’s reasonable
      satisfaction that such tax has been paid. The Warrantholder shall be responsible
      for income taxes due under federal, state or other law, if any such tax is
      due.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

    

    Section
      6. Mutilated
      or Missing Warrants.
      In case
      this Warrant shall be mutilated, lost, stolen, or destroyed, the Company shall
      issue in exchange and substitution of and upon cancellation of the mutilated
      Warrant, or in lieu of and substitution for the Warrant lost, stolen or
      destroyed, a new Warrant of like tenor and for the purchase of a like number
      of
      Warrant Shares, but only upon receipt of evidence reasonably satisfactory to
      the
      Company of such loss, theft or destruction of the Warrant, and with respect
      to a
      lost, stolen or destroyed Warrant, reasonable indemnity or bond with respect
      thereto, if requested by the Company.

    

    Section
      7. Reservation
      of Common Stock.
      The
      Company hereby represents and warrants that there have been reserved, and the
      Company shall at all applicable times keep reserved until issued (if necessary)
      as contemplated by this Section 7, out of the authorized and unissued shares
      of
      Common Stock, sufficient shares to provide for the exercise of the rights of
      purchase represented by this Warrant. The Company agrees that all Warrant Shares
      issued upon due exercise of the Warrant shall be, at the time of delivery of
      the
      certificates for such Warrant Shares, duly authorized, validly issued, fully
      paid and non-assessable shares of Common Stock of the Company.

    

    Section
      8. Adjustments.
      Subject
      and pursuant to the provisions of this Section 8, the Warrant Price and number
      of Warrant Shares subject to this Warrant shall be subject to adjustment from
      time to time as set forth hereinafter.

    

    (a) If
      the
      Company shall, at any time or from time to time while this Warrant is
      outstanding, pay a dividend or make a distribution on its Common Stock in shares
      of Common Stock, subdivide its outstanding shares of Common Stock into a greater
      number of shares or combine its outstanding shares of Common Stock into a
      smaller number of shares or issue by reclassification of its outstanding shares
      of Common Stock any shares of its capital stock (including any such
      reclassification in connection with a consolidation or merger in which the
      Company is the continuing corporation), then the number of Warrant Shares
      purchasable upon exercise of the Warrant and the Warrant Price in effect
      immediately prior to the date upon which such change shall become effective,
      shall be adjusted by the Company so that the Warrantholder thereafter exercising
      the Warrant shall be entitled to receive the number of shares of Common Stock
      or
      other capital stock which the Warrantholder would have received if the Warrant
      had been exercised immediately prior to such event upon payment of a Warrant
      Price that has been adjusted to reflect a fair allocation of the economics
      of
      such event to the Warrantholder. Such adjustments shall be made successively
      whenever any event listed above shall occur.

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    

    

    (b) If
      any
      capital reorganization, reclassification of the capital stock of the Company,
      consolidation or merger of the Company with another corporation in which the
      Company is not the survivor, or sale, transfer or other disposition of all
      or
      substantially all of the Company’s assets to another corporation shall be
      effected, then, as a condition of such reorganization, reclassification,
      consolidation, merger, sale, transfer or other disposition, lawful and adequate
      provision shall be made whereby each Warrantholder shall thereafter have the
      right to purchase and receive upon the basis and upon the terms and conditions
      herein specified and in lieu of the Warrant Shares immediately theretofore
      issuable upon exercise of the Warrant, such shares of stock, securities or
      assets as would have been issuable or payable with respect to or in exchange
      for
      a number of Warrant Shares equal to the number of Warrant Shares immediately
      theretofore issuable upon exercise of the Warrant, had such reorganization,
      reclassification, consolidation, merger, sale, transfer or other disposition
      not
      taken place, and in any such case appropriate provision shall be made with
      respect to the rights and interests of each Warrantholder to the end that the
      provisions hereof (including, without limitation, provision for adjustment
      of
      the Warrant Price) shall thereafter be applicable, as nearly equivalent as
      may
      be practicable in relation to any shares of stock, securities or assets
      thereafter deliverable upon the exercise hereof. The Company shall not effect
      any such consolidation, merger, sale, transfer or other disposition unless
      prior
      to or simultaneously with the consummation thereof the successor corporation
      (if
      other than the Company) resulting from such consolidation or merger, or the
      corporation purchasing or otherwise acquiring such assets or other appropriate
      corporation or entity shall assume the obligation to deliver to the
      Warrantholder, at the last address of the Warrantholder appearing on the books
      of the Company, such shares of stock, securities or assets as, in accordance
      with the foregoing provisions, the Warrantholder may be entitled to purchase,
      and the other obligations under this Warrant. The provisions of this paragraph
      (b) shall similarly apply to successive reorganizations, reclassifications,
      consolidations, mergers, sales, transfers or other dispositions.

    

    (c) In
      case
      the Company shall fix a payment date for the making of a distribution to all
      holders of Common Stock (including any such distribution made in connection
      with
      a consolidation or merger in which the Company is the continuing corporation)
      of
      evidences of indebtedness or assets (other than cash dividends or cash
      distributions payable out of consolidated earnings or earned surplus or
      dividends or distributions referred to in Section 8(a)), or subscription rights
      or warrants, the Warrant Price to be in effect after such payment date shall
      be
      determined by multiplying the Warrant Price in effect immediately prior to
      such
      payment date by a fraction, the numerator of which shall be the total number
      of
      shares of Common Stock outstanding multiplied by the Market Price (as defined
      below) per share of Common Stock immediately prior to such payment date, less
      the fair market value (as determined by the Company’s Board of Directors in good
      faith) of said assets or evidences of indebtedness so distributed, or of such
      subscription rights or warrants, and the denominator of which shall be the
      total
      number of shares of Common Stock outstanding multiplied by such Market Price
      per
      share of Common Stock immediately prior to such payment date. “Market Price” as
      of a particular date (the “Valuation
      Date”),
      shall
      mean the following with respect to any class of securities: (A) if such security
      is then listed on a national stock exchange, the Market Price shall be the
      average closing bid price of such security in the most recent five (5) Trading
      Days during which such security has traded prior to the Valuation Date; (B)
      if
      such security is then included in The Nasdaq Stock Market, Inc. (“Nasdaq”),
      the
      Market Price shall be the average closing price of such security in the most
      recent five (5) Trading Days during which such security has traded prior to
      the
      Valuation Date or, if no such closing sale price is available, the average
      of
      the high bid and the low ask prices quoted on Nasdaq for the five (5) Trading
      Days prior to the Valuation Date; (C) if such security is then included in
      the
      Over-the-Counter Bulletin Board, the Market Price shall be the weighted average
      sales prices of one share of such security on the Over-the-Counter Bulletin
      Board for the five (5) Trading Days prior to the Valuation Date or, if no such
      sales prices for the five (5) Trading Days are available, the average of the
      high bid and the low ask prices quoted on the Over-the-Counter Bulletin Board
      for the five (5) Trading Days prior to the Valuation Date; or (D) if such
      security is then included in the “pink sheets,” the Market Price shall be the
      weighted average sales prices of one share of such security on the “pink sheets”
for the five (5) Trading Days prior to the Valuation Date or, if no such closing
      sale price is available, the average of the high bid and the low ask price
      quoted on the “pink sheets” for the five (5) Trading Days prior to the Valuation
      Date; provided, however, that if the Common Stock is not then listed on a
      national stock exchange or quoted on Nasdaq, the Bulletin Board or such other
      exchange or association, or included in the “pink sheets”, the fair market value
      of one share of Common Stock as of the Valuation Date, shall be determined
      in
      good faith by the Board of Directors of the Company and the Warrantholder.
      If
      the Common Stock is not then listed on a national securities exchange, the
      Bulletin Board or such other exchange or association, or included in the “pink
      sheets”, the Board of Directors of the Company shall respond promptly, in
      writing, to an inquiry by the Warrantholder prior to the exercise hereunder
      as
      to the fair market value of a share of Common Stock as determined by the Board
      of Directors of the Company. In the event that the Board of Directors of the
      Company and the Warrantholder are unable to agree upon the fair market value
      in
      respect of subpart (c) hereof, the Company and the Warrantholder shall jointly
      select an appraiser, who is experienced in such matters. The decision of such
      appraiser shall be final and conclusive, and the cost of such appraiser shall
      be
      borne equally by the Company and the Warrantholder. Such adjustment shall be
      made successively whenever such a payment date is fixed.

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    

    

    (d) An
      adjustment to the Warrant Price shall become effective immediately after the
      payment date in the case of each dividend or distribution and immediately after
      the effective date of each other event which requires an
      adjustment.

    

    (e) In
      the
      event that, as a result of an adjustment made pursuant to this Section 8, the
      Warrantholder shall become entitled to receive any shares of capital stock
      of
      the Company other than shares of Common Stock, the number of such other shares
      so receivable upon exercise of this Warrant shall be subject thereafter to
      adjustment from time to time in a manner and on terms as nearly equivalent
      as
      practicable to the provisions with respect to the Warrant Shares contained
      in
      this Warrant.

    

    (f) Except
      as
      provided in subsection (g) hereof, if and whenever the Company shall issue
      or
      sell, or is, in accordance with any of subsections (f)(l) through (f)(7) hereof,
      deemed to have issued or sold, any shares of Common Stock for no consideration
      or for a consideration per share less than the Warrant Price in effect
      immediately prior to the time of such issue or sale, then and in each such
      case
      (a “Trigger
      Issuance”)
      the
      then-existing Warrant Price, shall be reduced, as of the close of business
      on
      the effective date of the Trigger Issuance, to a price determined as
      follows:

    

    
      	
              Adjusted
                Warrant Price = 

            	
              (A
                x B) + D

            
	 	
               
                A+C

            
	 	 
	 	 
	
              where

            

    

     

    “A”
      equals the number of shares of Common Stock outstanding, including Additional
      Shares of Common Stock (as defined below) deemed to be issued hereunder,
      immediately preceding such Trigger Issuance;

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    
 

    “B”
      equals the Warrant Price in effect immediately preceding such Trigger
      Issuance;

    

    “C”
      equals the number of Additional Shares of Common Stock issued or deemed issued
      hereunder as a result of the Trigger Issuance; and

    

    “D”
      equals the aggregate consideration, if any, received or deemed to be received
      by
      the Company upon such Trigger Issuance; provided, however, that in no event
      shall the Warrant Price after giving effect to such Trigger Issuance be greater
      than the Warrant Price in effect prior to such Trigger Issuance.

    

    For
      purposes of this subsection (f), “Additional Shares of Common Stock” shall mean
      all shares of Common Stock issued by the Company or deemed to be issued pursuant
      to this subsection (f), other than Excluded Issuances (as defined in subsection
      (g) hereof).

    

    For
      purposes of this subsection (f), the following subsections (f)(l) to (f)(7)
      shall also be applicable:

    

    (f)(1) Issuance
      of Rights or Options.
      In case
      at any time the Company shall in any manner grant (directly and not by
      assumption in a merger or otherwise) any warrants or other rights to subscribe
      for or to purchase, or any options for the purchase of, Common Stock or any
      stock or security convertible into or exchangeable for Common Stock (such
      warrants, rights or options being called “Options” and such convertible or
      exchangeable stock or securities being called “Convertible Securities”) whether
      or not such Options or the right to convert or exchange any such Convertible
      Securities are immediately exercisable, and the price per share for which Common
      Stock is issuable upon the exercise of such Options or upon the conversion
      or
      exchange of such Convertible Securities (determined by dividing (i) the sum
      (which sum shall constitute the applicable consideration) of (x) the total
      amount, if any, received or receivable by the Company as consideration for
      the
      granting of such Options, plus (y) the aggregate amount of additional
      consideration payable to the Company upon the exercise of all such Options,
      plus
      (z), in the case of such Options which relate to Convertible Securities, the
      aggregate amount of additional consideration, if any, payable upon the issue
      or
      sale of such Convertible Securities and upon the conversion or exchange thereof,
      by (ii) the total maximum number of shares of Common Stock issuable upon the
      exercise of such Options or upon the conversion or exchange of all such
      Convertible Securities issuable upon the exercise of such Options) shall be
      less
      than the Warrant Price in effect immediately prior to the time of the granting
      of such Options, then the total number of shares of Common Stock issuable upon
      the exercise of such Options or upon conversion or exchange of the total amount
      of such Convertible Securities issuable upon the exercise of such Options shall
      be deemed to have been issued for such price per share as of the date of
      granting of such Options or the issuance of such Convertible Securities and
      thereafter shall be deemed to be outstanding for purposes of adjusting the
      Warrant Price. Except as otherwise provided in subsection 8(f)(3), no adjustment
      of the Warrant Price shall be made upon the actual issue of such Common Stock
      or
      of such Convertible Securities upon exercise of such Options or upon the actual
      issue of such Common Stock upon conversion or exchange of such Convertible
      Securities.

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    

    

    (f)(2) Issuance
      of Convertible Securities.
      In case
      the Company shall in any manner issue (directly and not by assumption in a
      merger or otherwise) or sell any Convertible Securities, whether or not the
      rights to exchange or convert any such Convertible Securities are immediately
      exercisable, and the price per share for which Common Stock is issuable upon
      such conversion or exchange (determined by dividing (i) the sum (which sum
      shall
      constitute the applicable consideration) of (x) the total amount received or
      receivable by the Company as consideration for the issue or sale of such
      Convertible Securities, plus (y) the aggregate amount of additional
      consideration, if any, payable to the Company upon the conversion or exchange
      thereof, by (ii) the total number of shares of Common Stock issuable upon the
      conversion or exchange of all such Convertible Securities) shall be less than
      the Warrant Price in effect immediately prior to the time of such issue or
      sale,
      then the total maximum number of shares of Common Stock issuable upon conversion
      or exchange of all such Convertible Securities shall be deemed to have been
      issued for such price per share as of the date of the issue or sale of such
      Convertible Securities and thereafter shall be deemed to be outstanding for
      purposes of adjusting the Warrant Price, provided that (a) except as otherwise
      provided in subsection 8(f)(3), no adjustment of the Warrant Price shall be
      made
      upon the actual issuance of such Common Stock upon conversion or exchange of
      such Convertible Securities and (b) no further adjustment of the Warrant Price
      shall be made by reason of the issue or sale of Convertible Securities upon
      exercise of any Options to purchase any such Convertible Securities for which
      adjustments of the Warrant Price have been made pursuant to the other provisions
      of subsection 8(f).

     

    (f)(3) Change
      in Option Price or Conversion Rate.
      Upon
      the happening of any of the following events, namely, if the purchase price
      provided for in any Option referred to in subsection 8(f)(l) hereof, the
      additional consideration, if any, payable upon the conversion or exchange of
      any
      Convertible Securities referred to in subsections 8(f)(l) or 8(f)(2), or the
      rate at which Convertible Securities referred to in subsections 8(f)(l) or
      8(f)(2) are convertible into or exchangeable for Common Stock shall change
      at
      any time (including, but not limited to, changes under or by reason of
      provisions designed to protect against dilution), the Warrant Price in effect
      at
      the time of such event shall forthwith be readjusted to the Warrant Price which
      would have been in effect at such time had such Options or Convertible
      Securities still outstanding provided for such changed purchase price,
      additional consideration or conversion rate, as the case may be, at the time
      initially granted, issued or sold. On the termination of any Option for which
      any adjustment was made pursuant to this subsection 8(f) or any right to convert
      or exchange Convertible Securities for which any adjustment was made pursuant
      to
      this subsection 8(f) (including without limitation upon the redemption or
      purchase for consideration of such Convertible Securities by the Company),
      the
      Warrant Price then in effect hereunder shall forthwith be changed to the Warrant
      Price which would have been in effect at the time of such termination had such
      Option or Convertible Securities, to the extent outstanding immediately prior
      to
      such termination, never been issued.

     

    (f)(4) Stock
      Dividends.
      Subject
      to the provisions of this Section 8(f), in case the Company shall declare a
      dividend or make any other distribution upon any stock of the Company (other
      than the Common Stock) payable in Common Stock, Options or Convertible
      Securities, then any Common Stock, Options or Convertible Securities, as the
      case may be, issuable in payment of such dividend or distribution shall be
      deemed to have been issued or sold without consideration.

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    

    

    (f)(5) Consideration
      for Stock.
      In case
      any shares of Common Stock, Options or Convertible Securities shall be issued
      or
      sold for cash, the consideration received therefor shall be deemed to be the
      net
      amount received by the Company therefor, after deduction therefrom of any
      expenses incurred or any underwriting commissions or concessions paid or allowed
      by the Company in connection therewith. In case any shares of Common Stock,
      Options or Convertible Securities shall be issued or sold for a consideration
      other than cash, the amount of the consideration other than cash received by
      the
      Company shall be deemed to be the fair value of such consideration as determined
      in good faith by the Board of Directors of the Company, after deduction of
      any
      expenses incurred or any underwriting commissions or concessions paid or allowed
      by the Company in connection therewith. In case any Options shall be issued
      in
      connection with the issue and sale of other securities of the Company, together
      comprising one integral transaction in which no specific consideration is
      allocated to such Options by the parties thereto, such Options shall be deemed
      to have been issued for such consideration as determined in good faith by the
      Board of Directors of the Company. If Common Stock, Options or Convertible
      Securities shall be issued or sold by the Company and, in connection therewith,
      other Options or Convertible Securities (the “Additional Rights”) are issued,
      then the consideration received or deemed to be received by the Company shall
      be
      reduced by the fair market value of the Additional Rights (as determined using
      the Black-Scholes option pricing model or another method mutually agreed to
      by
      the Company and the Warrantholder). The Board of Directors of the Company shall
      respond promptly, in writing, to an inquiry by the Warrantholder as to the
      fair
      market value of the Additional Rights. In the event that the Board of Directors
      of the Company and the Warrantholder are unable to agree upon the fair market
      value of the Additional Rights, the Company and the Warrantholder shall jointly
      select an appraiser, who is experienced in such matters. The decision of such
      appraiser shall be final and conclusive, and the cost of such appraiser shall
      be
      borne evenly by the Company and the Warrantholder.

    

    (f)(6) Record
      Date.
      In case
      the Company shall take a record of the holders of its Common Stock for the
      purpose of entitling them (i) to receive a dividend or other distribution
      payable in Common Stock, Options or Convertible Securities or (ii) to subscribe
      for or purchase Common Stock, Options or Convertible Securities, then such
      record date shall be deemed to be the date of the issue or sale of the shares
      of
      Common Stock deemed to have been issued or sold upon the declaration of such
      dividend or the making of such other distribution or the date of the granting
      of
      such right of subscription or purchase, as the case may be.

    

    (f)(7) Treasury
      Shares.
      The
      number of shares of Common Stock outstanding at any given time shall not include
      shares owned or held by or for the account of the Company or any of its
      wholly-owned subsidiaries, and the disposition of any such shares (other than
      the cancellation or retirement thereof) shall be considered an issue or sale
      of
      Common Stock for the purpose of this subsection (f).

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    

    

    (g) Anything
      herein to the contrary notwithstanding, the Company shall not be required to
      make any adjustment of the Warrant Price in the case of the issuance of
(A)
      capital stock, Options or Convertible Securities issued to directors, officers,
      employees or consultants of the Company in connection with their service as
      directors of the Company, their employment by the Company or their retention
      as
      consultants by the Company pursuant to an equity compensation program approved
      by the Board of Directors of the Company or the compensation committee of the
      Board of Directors of the Company, (B) shares of Common Stock issued upon the
      conversion or exercise of Options or Convertible Securities issued prior to
      the
      date hereof, provided such securities are not amended after the date hereof
      to
      increase the number of shares of Common Stock issuable thereunder or to lower
      the conversion or exercise price thereof, (C) securities issued pursuant to
      that
      certain Purchase Agreement dated November 1st,
      2006,
      among the Company and the Investors named therein (the “Purchase Agreement”) and
      securities issued upon the exercise or conversion of those securities, and
      (D)
      shares of Common Stock issued or issuable by reason of a dividend, stock split
      or other distribution on shares of Common Stock (but only to the extent that
      such a dividend, split or distribution results in an adjustment in the Warrant
      Price pursuant to the other provisions of this Warrant) (collectively, “Excluded
      Issuances”).

    

    (h) Upon
      any
      adjustment to the Warrant Price pursuant to Section 8(f) above, the number
      of
      Warrant Shares purchasable hereunder shall be adjusted by multiplying such
      number by a fraction, the numerator of which shall be the Warrant Price in
      effect immediately prior to such adjustment and the denominator of which shall
      be the Warrant Price in effect immediately thereafter.

    

    Section
      9. Fractional
      Interest.
      The
      Company shall not be required to issue fractions of Warrant Shares upon the
      exercise of this Warrant. If any fractional share of Common Stock would, except
      for the provisions of the first sentence of this Section 9, be deliverable
      upon
      such exercise, the Company, in lieu of delivering such fractional share, shall
      pay to the exercising Warrantholder an amount in cash equal to the Market Price
      of such fractional share of Common Stock on the date of exercise.

    

    Section
      10. Extension
      of Expiration Date.
      N\A

    

    Section
      11. Benefits.
      Nothing
      in this Warrant shall be construed to give any person, firm or corporation
      (other than the Company and the Warrantholder) any legal or equitable right,
      remedy or claim, it being agreed that this Warrant shall be for the sole and
      exclusive benefit of the Company and the Warrantholder.

    

    Section
      12. Notices
      to Warrantholder.
      Upon
      the happening of any event requiring an adjustment of the Warrant Price, the
      Company shall promptly give written notice thereof to the Warrantholder at
      the
      address appearing in the records of the Company, stating the adjusted Warrant
      Price and the adjusted number of Warrant Shares resulting from such event and
      setting forth in reasonable detail the method of calculation and the facts
      upon
      which such calculation is based. Failure to give such notice to the
      Warrantholder or any defect therein shall not affect the legality or validity
      of
      the subject adjustment.

    

    Section
      13. Identity
      of Transfer Agent.
      The
      Transfer Agent for the Common Stock is Pacific Stock Transfer Company. Upon
      the
      appointment of any subsequent transfer agent for the Common Stock or other
      shares of the Company’s capital stock issuable upon the exercise of the rights
      of purchase represented by the Warrant, the Company will mail to the
      Warrantholder a statement setting forth the name and address of such transfer
      agent.

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    

    

    Section
      14. Notices.
      Unless
      otherwise provided, any notice required or permitted under this Warrant shall
      be
      given in writing and shall be deemed effectively given as hereinafter described
      (i) if given by personal delivery, then such notice shall be deemed given upon
      such delivery, (ii) if given by telex or facsimile, then such notice shall
      be
      deemed given upon receipt of confirmation of complete transmittal, (iii) if
      given by mail, then such notice shall be deemed given upon the earlier of (A)
      receipt of such notice by the recipient or (B) three days after such notice
      is
      deposited in first class mail, postage prepaid, and (iv) if given by an
      internationally recognized overnight air courier, then such notice shall be
      deemed given one business day after delivery to such carrier. All notices shall
      be addressed as follows: if to the Warrantholder, at its address as set forth
      in
      the Company’s books and records and, if to the Company, at the address as
      follows, or at such other address as the Warrantholder or the Company may
      designate by ten days’ advance written notice to the other:

    

    
      	
              If
                to the Company:

            
	 	
              Attention:
                Mr. James Leung

            
	 	
              Tiger
                Ethanol International Inc.

            
	 	
              6600 
                Trans-Canada Highway, Suite 519

            
	 	
              Pointe-Claire,
                Quebec, Canada H9R4S2

            
	 	
              Email: 
                leungppp@gmail.com

            
	 	
              Telephone: 
                514-771-3795

            
	 	
              Fax:              
                514-695-6319

            

    

    

    

    

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    

    
      	
              With
                a copy to:

            
	 	 
	 	
              Attention:
                Mr. Travis Gering, Esq.

            
	 	
              WUERSCH
                & GERING, LLP

            
	 	
              100,
                Wall Street, 21st Floor

            
	 	
              New
                York, NY 10005

            
	 	 
	 	
              Tel.
                No.: (212) 509-5050

            
	 	
              Fax
                No.: (212) 509-9559

            

    

    

    Section
      15. Registration
      Rights.
      N\A

    

    Section
      16. Successors.
      All the
      covenants and provisions hereof by or for the benefit of the Warrantholder
      shall
      bind and inure to the benefit of its respective successors and assigns
      hereunder. 

    

    Section
      17. Governing
      Law; Consent to Jurisdiction; Waiver of Jury Trial.
      This
      Warrant shall be governed by, and construed in accordance with, the internal
      laws of the State of New York, without reference to the choice of law provisions
      thereof. The Company and, by accepting this Warrant, the Warrantholder, each
      irrevocably submits to the exclusive jurisdiction of the courts of the State
      of
      New York located in New York County and the United States District Court for
      the
      Southern District of New York for the purpose of any suit, action, proceeding
      or
      judgment relating to or arising out of this Warrant and the transactions
      contemplated hereby. Service of process in connection with any such suit, action
      or proceeding may be served on each party hereto anywhere in the world by the
      same methods as are specified for the giving of notices under this Warrant.
      The
      Company and, by accepting this Warrant, the Warrantholder, each irrevocably
      consents to the jurisdiction of any such court in any such suit, action or
      proceeding and to the laying of venue in such court. The Company and, by
      accepting this Warrant, the Warrantholder, each irrevocably waives any objection
      to the laying of venue of any such suit, action or proceeding brought in such
      courts and irrevocably waives any claim that any such suit, action or proceeding
      brought in any such court has been brought in an inconvenient forum.
EACH
      OF THE COMPANY AND, BY ITS ACCEPTANCE HEREOF, THE WARRANTHOLDER HEREBY WAIVES
      ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS
      WARRANT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS
      WAIVER.

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    

    

    Section
      18. Cashless
      Exercise.
      N/A

    

    Section
      19. Limitations
      on Exercise.
      Notwithstanding anything to the contrary contained herein, the number of Warrant
      Shares that may be acquired by the Warrantholder upon any exercise of this
      Warrant (or otherwise in respect hereof) shall be limited to the extent
      necessary to insure that, following such exercise (or other issuance), the
      total
      number of shares of Common Stock then beneficially owned by such Warrantholder
      and its Affiliates and any other Persons whose beneficial ownership of Common
      Stock would be aggregated with the Warrantholder's for purposes of Section
      13(d)
      of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), does
      not exceed 9.999% of the total number of issued and outstanding shares of Common
      Stock (including for such purpose the shares of Common Stock issuable upon
      such
      exercise). For such purposes, beneficial ownership shall be determined in
      accordance with Section 13(d) of the Exchange Act and the rules and regulations
      promulgated thereunder. This provision shall not restrict the number of shares
      of Common Stock which a Holder may receive or beneficially own in order to
      determine the amount of securities or other consideration that such Holder
      may
      receive in the event of a transaction contemplated by Section 8 of this Warrant.
      By written notice to the Company, the Warrantholder may waive the provisions
      of
      this Section 19, but any such waiver will not be effective until the 61st day
      after delivery of such notice, nor will any such waiver effect any other
      Warrantholder.

    

    Section
      20. No
      Rights as Stockholder.
      Prior
      to the exercise of this Warrant, the Warrantholder shall not have or exercise
      any rights as a stockholder of the Company by virtue of its ownership of this
      Warrant.

    

    Section
      21. Amendment
      or Waiver.
      Any
      term of this Warrant may be amended or waived (including the adjustment
      provisions included in Section 8 of this Warrant) upon the written consent
      of
      the Company and the holders of Company Warrants representing at least 50% of
      the
      number of shares of Common Stock then subject to all outstanding Company
      Warrants (the “Majority
      Holders”);
      provided,
      that
      (x) any such amendment or waiver must apply to all Company Warrants; and (y)
      the
      number of Warrant Shares subject to this Warrant, the Warrant Price and the
      Expiration Date may not be amended, and the right to exercise this Warrant
      may
      not be altered or waived, without the written consent of the
      Warrantholder.

    

    Section
      22. Section
      Headings.
      The
      section headings in this Warrant are for the convenience of the Company and
      the
      Warrantholder and in no way alter, modify, amend, limit or restrict the
      provisions hereof.

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be duly executed, as
      July 27, 2007.

    

    
      	 	
              TIGER
                ETHANOL INTERNATIONAL INC.

            
	 	 	 
	 	 	 
	 	
              By:
                

            	
              /s/
                James Leung

            
	 	 	
              Name:
                James Leung

            
	 	 	
              Title:
                President

            

    

    

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    

    APPENDIX
      A

    TIGER
      ETHANOL INTERNATIONAL INC.

    WARRANT
      EXERCISE FORM

    

    To
      Tiger
      Ethanol International Inc.:

    

    The
      undersigned hereby irrevocably elects to exercise the right of purchase
      represented by the within Warrant (“Warrant”) for, and to purchase thereunder by
      the payment of the Warrant Price and surrender of the Warrant, _______________
      shares of Common Stock (“Warrant Shares”) provided for therein, and requests
      that certificates for the Warrant Shares be issued as follows: 

    

    
      	
               

            
	
              Name

            
	
               

            
	
              Address

            
	
               

            
	
               

            
	
              Federal
                Tax ID or Social Security No.

            

    

    

    
      	
              and
                delivered by

            	
              (certified
                mail to the above address, or electronically)

            
	 	
              (provide
                DWAC Instructions:___________________), or 

            
	 	
              (other
                specify):
                _________________________________)

            

    

    

    and,
      if
      the number of Warrant Shares shall not be all the Warrant Shares purchasable
      upon exercise of the Warrant, that a new Warrant for the balance of the Warrant
      Shares purchasable upon exercise of this Warrant be registered in the name
      of
      the undersigned Warrantholder or the undersigned’s Assignee as below indicated
      and delivered to the address stated below.

    

    
      	
              Dated:
                ___________________, 2007

            	 
	 	 
	
              Note:
                The signature must correspond with

            	 
	
              the
                name of the Warrantholder as written

            	 
	
              on
                the first page of the Warrant in every

            	
               

            
	
              particular,
                without alteration or enlargement

            	
              Name
                (please print)

            
	
              or
                any change whatever, unless the Warrant

            	 
	
              has
                been assigned.

            	
               

            
	 	
               

            
	
              Signature:
                __________________________

            	
              Address

            
	 	
               

            
	 	
              Federal
                Identification or

            
	 	
              Social
                Security No.

            
	 	 
	 	
              Assignee:Unassociated Document

    
       

      EMPLOYMENT
        AGREEMENT

       

      This
        EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of January 1,
        2007 (the “Effective Date”), by and between NetSol Technologies, Inc., a Nevada
        corporation (the “Company”) and Najeeb Ghauri, an individual (“Executive”).

      

      BACKGROUND

      

      A. The
        Company desires assurance of the association and services of Executive in
        order
        to retain Executive’s experience, skills, abilities, background and knowledge,
        and is willing to engage Executive’s services on the terms and conditions set
        forth in this Agreement.

      

      B. Executive
        desires to be in the employ of the Company, and is willing to accept such
        employment on the terms and conditions set forth in this Agreement.

      

      AGREEMENT

      

      In
        consideration of the foregoing recitals and the mutual promises and covenants
        herein contained, and for other good and valuable consideration, the parties,
        intending to be legally bound, agree as follows:

      

      1. EMPLOYMENT.

      

      1.1 The
        Company hereby enters into this Agreement with Executive, and Executive hereby
        accepts employment under the terms and conditions set forth in this Agreement
        for a period of three years thereafter (the “Employment Period”); provided,
        however, that the Employment Period may be terminated earlier pursuant as
        provided herein. The Employment Period shall be automatically extended for
        additional one-year periods unless either party notifies the other in writing
        six months before the end of the anniversary year to elect not to so extend
        the
        Employment Period. 

      

      1.2 Executive
        shall serve as Chief Executive Officer (“CEO”) of the Company. It is hereby
        contemplated that the Executive will have a seat on and act as Chairman of
        the
        Board of Directors.

      

      1.3 Executive
        shall perform all services, acts or things necessary or advisable to manage
        and
        conduct the business of the Company and which are normally associated with
        the
        position of CEO and consistent with the bylaws of the Company. 

      

      1.4 The
        employment relationship between the parties shall be governed by the policies
        and practices established by the Company, except that when the terms of this
        Agreement differ from or are in conflict with the Company’s policies or
        practices, this Agreement shall control.

      

      1.5 Unless
        the parties otherwise agree in writing, during the term of this Agreement,
        Executive shall perform the services he is required to perform pursuant to
        this
        Agreement at the Company’s offices, located at its present or future locations
        in the United States; provided, further, that the Company may from time to
        time
        require Executive to travel temporarily to other locations in connection
        with
        the Company’s business and in accordance with the Company’s standard policies
        regarding travel for executive and senior management employees.

      

      2.
        LOYAL
        AND
        CONSCIENTIOUS PERFORMANCE; NONCOMPETITION.

      

      2.1 During
        the Employment Period, Executive shall devote substantially all his business
        energies, interest, abilities and productive time to the proper and efficient
        performance of his duties under this Agreement. The foregoing shall not preclude
        Executive from engaging in civic, charitable or religious activities, or
        from
        serving on boards of directors of companies or organizations which will not
        present any direct conflict with the interest of the Company or affect the
        performance of Executive’s duties hereunder.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      2.2 Except
        with the prior written consent of the Company’s Board of Directors (“Board”),
        Executive will comply with all the restrictions set forth below at all times
        during his employment and for a period of eighteen months after the termination
        of his employment:

      

      2.2.1
        Executive will not, either individually or in conjunction with any person,
        as
        principal, agent, director, officer, employee or in any other manner whatsoever,
        directly or indirectly engage in or become financially interested in any
        competitive business within North America, except as a passive investor holding
        not more than one percent of the publicly traded stock of a corporation in
        which
        Executive is not involved in management;

      

      2.2.2
        Executive will not, either directly or indirectly, on his own behalf of on
        behalf of others, solicit, divert or appropriate or attempt to solicit, divert
        or appropriate to any competitive business, any business or actively sought
        prospective business of the Company or any customers with whom the Company
        or
        any affiliate of the Company has current agreements relating to the business
        of
        the Company, or with whom Executive has dealt, or with whom Executive has
        supervised negotiations or business relations, or about whom Executive has
        acquired confidential information in the course of Executive’s
        employment;

      

      2.2.3
        Executive will not, either directly or indirectly, on Executive’s behalf or on
        behalf of others, solicit, divert or hire away, or attempt to solicit, divert,
        or hire away, any independent contractor or any person employed by the Company
        or any affiliate of the Company or persuade or attempt to persuade any such
        individual to terminate his or her employment with the Company;
        and,

      

      2.2.4
        Executive will not directly or indirectly impair or seek to impair the
        reputation of the Company or any affiliate of the Company, nor any relationship
        that the Company or any affiliate of the Company has with its employees,
        customers, suppliers, agents or other parties with which the Company or any
        other affiliate of the Company does business or has contractual relation;
        and,

      

      2.2.5
        Executive will not receive or accept for his own benefit, either directly
        or
        indirectly, any commission, rebate, discount, gratuity or profit from any
        person
        having or proposing to have one or more business transactions with the Company
        or any affiliate of the Company, without the prior approval of the Board,
        which
        may be withheld; and,

      

      2.2.6
        Executive will, during the term of this employment with the Company, communicate
        and channel to the Company all knowledge, business and customer contacts
        and any
        other information that could concern or be in any way beneficial to the business
        of the Company. Any such information communicated to the Company as aforesaid
        will be and remain the property of the Company notwithstanding any subsequent
        termination of Executive’s employment.

      

      3.
        COMPENSATION
        OF EXECUTIVE.

      

      3.1 The
        Company shall pay Executive a base salary of Two Hundred Seventy Five Thousand
        Dollars ($275,000) per year (the “Base Salary”), payable in accordance with the
        Company policy. Such salary shall be pro rated for any partial year of
        employment on the basis of a 365-day fiscal year. Executive shall receive
        a car
        allowance of Three Thousand Dollars ($3,000) per month. Executive will be
        eligible for bonuses from time to time as determined by the Board.

      

      3.2 Executive’s
        Base Salary and other compensation may be changed from time to time by mutual
        agreement of Executive and the Board.

      

      3.3 All
        of
        Executive’s compensation shall be subject to customary withholding taxes and any
        other employment taxes applicable to Executive’s jurisdiction of employment as
        are commonly required to be collected or withheld by the Company.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      3.4 During
        the Employment Period, the Company agrees to reimburse Executive for all
        reasonable and necessary business expenses subject to the Company’s standard
        requirements with respect to reporting and documentation of such expenses.
        

      

      3.5 Executive
        shall, in accordance with the Company policy and the terms of the applicable
        plan documents, be eligible to participate in benefits under any Executive
        benefit plan or arrangement which may be in effect from time to time and
        made
        available to its executive or key management employees, including, as
        applicable, health and disability insurance, dental insurance, and participation
        in Employer’s 401(k) plan. The Company may modify or cancel its benefit plan(s)
        as it deems necessary.

      

      3.6 Executive
        shall cooperate with the Company and its insurers as reasonably required
        for the
        Company to acquire and keep in force key-man life insurance on
        Executive.

      

      3.7. The
        Company and Executive shall enter into an Indemnity Agreement to provide
        indemnification of and the advancing of expenses to Executive to the fullest
        extent (whether partial or complete) permitted by law, and, to the extent
        the
        Company maintains insurance, for the coverage of Executive under the Company’s
        directors’ and officers’ liability insurance policies.

      

      4.
        TERMINATION.
        

      

      4.1 Termination
        by the Company. Executive’s employment with the Company may be terminated under
        the following conditions:

      

      4.1.1 Death
        or
        Disability. Executive’s employment with the Company shall terminate effective
        upon the date of Executive’s death or “Complete Disability” (as defined in
        Section 4.5.1).

      

      4.1.2 For
        Cause. The Company may terminate Executive’s employment under this Agreement for
“Cause” (as defined in Section 4.5.3) by delivery of written notice to Executive
        specifying the cause or causes relied upon for such termination. Any notice
        of
        termination given pursuant to this Section 4.1.2 shall effect termination
        as of
        the date specified in such notice or, in the event no such date is specified,
        on
        the last day of the month in which such notice is delivered or deemed delivered
        as provided in Section 8 below.

      

      4.1.3 Without
        Cause. The Company may terminate Executive’s employment under this Agreement at
        any time and for any reason by delivery of written notice of such termination
        to
        Executive. Any notice of termination given pursuant to this Section 4.1.3
        shall
        effect termination as of the date specified in such notice (which shall be
        no
        earlier than 30 days after such notice is given) or, in the event no such
        date
        is specified, on the last day of the month following the month in which such
        notice is delivered or deemed delivered as provided in Section 8
        below

      

      4.2 Termination
        By Executive. Executive may terminate his employment with the Company for
“Good
        Reason” (as defined below in Section 4.5.2) by (i) delivery of written notice to
        the Company specifying the “Good Reason” relied upon by Executive for such
        termination, provided that such notice is delivered within six (6) months
        following the occurrence of any event or events constituting Good Reason,
        or
        (ii) at any time during the Employment Period without Good Reason. 

      

      4.3 Termination
        by Mutual Agreement of the Parties. Executive’s employment pursuant to this
        Agreement may be terminated at any time upon a mutual agreement in writing
        of
        the parties. Any such termination of employment shall have the consequences
        specified in such agreement.

      

      4.4 Compensation
        Upon Termination.

      

      4.4.1 Death
        or
        Complete Disability. If Executive’s employment shall be terminated by death or
        Complete Disability as provided in Section 4.4.1, the Company shall (i) pay
        Executive his accrued Base Salary and accrued and unused vacation benefits
        earned through the date of termination at the rate in effect at the time
        of
        termination, and (ii) continue Executive’s annual Base Salary, in effect at the
        time of termination, for a period of two (2) months after the termination
        date,
        in both cases subject to standard deductions and withholding, and the Company
        shall thereafter have no further obligations to Executive under this
        Agreement.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      4.4.2 Cause
        or
        Without Good Reason. If Executive’s employment shall be terminated by the
        Company for Cause, or if Executive terminates employment hereunder without
        Good
        Reason, the Company shall pay Executive his accrued Base Salary and accrued
        and
        unused vacation benefits earned through the date of termination at the rate
        in
        effect at the time of the notice of termination, and the Company shall
        thereafter have no further obligations to Executive under this
        Agreement.

      

      4.4.3 Without
        Cause or Good Reason. If Executive shall terminate Executive’s employment with
        the Company for Good Reason or the Company shall terminate Executive’s
        employment without Cause, or in the event Executive is terminated for any
        reason
        following a Change in Control, Executive shall be entitled to the
        following:

      

      (i) Executive’s
        Base Salary, and accrued and unused vacation earned through the date of
        termination;

      

      (ii) Continuation
        of Executive’s annual Base Salary, in effect at the time of termination, for a
        period of thirty-six (36) months after the termination date subject to standard
        deductions and withholding;

       

      (iii) Continuation
        of Executive’s medical, disability and other benefits for a period of thirty six
        (36) months after the termination date, as if Executive had continued in
        employment during said period, or in lieu thereof, 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 (or where such continuation would adversely
        affect the tax status of the plan pursuant to which the benefit is being
        provided) under applicable law or regulation; 

      

      (iv) 100%
        vesting of all of Executive’s Options, all other options granted to Executive
        and all restricted stock received upon early exercise; and,

      

      (v) in
        the
        event such termination occurs after a Change of Control, the Company shall
        pay
        Executive: (a) a one-time payment equal to the product of 2.99 and Executive’s
        salary for the previous twelve (12) months; (b) a one-time payment equal
        to the
        higher of (i) Executive’s bonus for the previous year and (ii) one percent of
        the Company’s consolidated gross revenues for the previous twelve (12) months;
        and, at the election of the Executive, (c) a one-time cash payment equal
        to the
        cash value of all shares eligible for exercise upon the exercise of Executive’s
        Options then currently outstanding and exercisable as if they had been exercised
        in full (the “Change of Control Termination Payment”). In the event Executive
        elects to receive the cash value of the shares underlying Executive’s options,
        he shall so notify the Company of his intent. 

      

      4.5 Definitions.
        As used herein, the following terms shall have the following
        meanings:

      

      4.5.1 Complete
        Disability. “Complete Disability” shall mean the inability of Executive to
        perform Executive’s duties under this Agreement because Executive has become
        permanently disabled within the meaning of any policy of disability income
        insurance covering employees of the Company then in force. In the event the
        Company has no policy of disability income insurance covering employees of
        the
        Company in force when Executive becomes disabled, the term “Complete Disability”
shall mean the inability of Executive to perform Executive’s duties under this
        Agreement by reason of any incapacity, physical or mental, which the Board,
        based upon medical advice or an opinion provided by a licensed physician
        acceptable to the Board, determines to have incapacitated Executive from
        satisfactorily performing all of Executive’s usual services for the Company for
        a period of at least 120 days. Based upon such medical advice or opinion,
        the
        determination of the Board shall be final and binding and the date such
        determination is made shall be the date of such Complete Disability for purposes
        of this Agreement. 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      4.5.2 Good
        Reason. “Good Reason” shall be limited to the occurrence of any of the following
        events:

      

      (i) If
        the
        Company is in material breach of any provision of this Agreement;
        or

      

      (ii) If
        the
        Company asks Executive to perform any act which is illegal, including commission
        of any crime involving moral turpitude; or, 

      

      (iii) If
        there
        shall be a material diminution in Executive’s position, status, offices,
        authority, duties or responsibilities as set forth in the Agreement;
        or

      

      (iv) If
        there
        shall be a relocation or transfer of Executive’s office to a location of more
        than 30 miles from Calabasas, California.

      

      4.5.3 For
        Cause. “For Cause” shall be limited to the occurrence of any of the following
        events:

      (i) Executive’s
        engaging or in any manner participating in any activity which is directly
        competitive with or intentionally injurious to the Company or which violates
        any
        material provision of Section 6 hereof; or the use of alcohol or illegal
        drugs,
        materially interfering with the performance of Executive’s obligations under
        this Agreement, continuing after written warning;

      

      (ii) Executive’s
        commission of any fraud against the Company or use or intentional appropriation
        for his personal use or benefit of any material funds or properties of the
        Company not authorized by the Board to be so used or appropriated;

      

      (iii) Executive’s
        conviction of any crime involving moral turpitude; or

      

      (iv) Executive’s
        failure or refusal to materially perform his duties and responsibilities
        set
        forth in this Agreement, if such failure or refusal is not cured within thirty
        (30) days after written notice thereof to Executive by the Company.

      

      
        
          5.
            CHANGE
            IN
            CONTROL.

        

      

      

      5.1 A
“Change
        of Control” shall, for purposes of this Section mean: (1) a dissolution or
        liquidation of the Company; (2) any sale or transfer of more than 25% of
        the
        total assets of the Company; (3) any merger, consolidation or other business
        reorganization in which the holders of the Company’s outstanding voting
        securities immediately prior to such transaction do not hold, immediately
        following such transaction, securities representing fifty percent (50%) or
        more
        of the combined voting power of the outstanding securities of the surviving
        entity; (4) the acquisition by any person (within the meaning of Section
        13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934, as amended
        (the “Exchange Act”), of beneficial ownership (within the meaning of Rule 13d-3
        or any successor rule or regulation promulgated under the Exchange Act) of
        securities representing fifty percent (50%) or more of the combined voting
        power
        of the then-outstanding securities of the Company; or (5) a majority of the
        incumbent Board of Directors has been changed. 

      

      5.2 If
        a
        Change In Control occurs, Executive shall be entitled to all benefits set
        forth
        in section .4.3 of this Agreement, including, but not limited to full
        acceleration of the vesting of the then-unvested portion of the Options granted
        to Executive (or any restricted shares received upon early exercise) and,
        continuance of Executive’s medical, disability and other benefits for a period
        of thirty six (36) months, as if Executive had continued in employment during
        said period, or in lieu thereof, 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 (or where such continuation would adversely affect the tax status
        of
        the plan pursuant to which the benefit is being provided) under applicable
        law
        or regulation; and any and all Change in Control Termination
        Payments..

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      5.3 Anything
        in this Agreement to the contrary notwithstanding, in the event that it shall
        be
        determined that any payment or distribution by the Company to or for the
        benefit
        of Executive, whether paid or payable or distributed or distributable pursuant
        to the terms of this Agreement, including, without limitation, the Change
        of
        Control Termination Payment, or otherwise (the “Payment”), would constitute an
“excess parachute payment” within the meaning of Section 280G of the Internal
        Revenue Code of 1986, as amended (the “Code”), Executive shall be paid an
        additional amount (the “Gross-Up Payment”) such that the net amount retained by
        Executive after deduction of any excise tax imposed under Section 4999 of
        the
        Code, and any federal, state and local income and employment tax and excise
        tax
        imposed upon the Gross-Up Payment, and any interest and penalties imposed
        upon
        Executive, shall be equal to the Payment. For purposes of determining the
        amount
        of the Gross-Up Payment, Executive shall be deemed to pay federal income
        tax and
        employment taxes at the highest marginal rate of federal income and employment
        taxation in the calendar year in which the Gross-Up Payment is to be made
        and
        state and local income taxes at the highest marginal rate of taxation in
        the
        state and locality of Executive’s residence on the date of Payment, net of the
        maximum reduction in federal income taxes that may be obtained from the
        deduction of such state and local taxes.

      

      5.4 All
        determinations to be made under Section 5.3 shall be made by the Company’s
        independent public accountant (the “Accounting Firm”), which firm shall provide
        its determinations and any supporting calculations both to the Company and
        Executive within 10 days of the date of Payment. Any such determination by
        the
        Accounting Firm shall be binding upon the Company and Executive. Within five
        days after the Accounting Firm’s determination, the Company shall pay (or cause
        to be paid) or distribute (or cause to be distributed) to or for the benefit
        of
        Executive such amounts as are then due to Executive. 

      

      5.5 In
        the
        event that upon any audit by the Internal Revenue Service, or by a state
        or
        local taxing authority, of the Payment or Gross-Up Payment, a change is finally
        determined to be required in the amount of taxes paid by Executive, appropriate
        adjustments shall be made under this Agreement such that the net amount which
        is
        payable to Executive after taking into account the provisions of Section
        4999 of
        the Code shall reflect the intent of the parties as expressed in Section
        5.3
        above, in the manner determined by the Accounting Firm.

      

      5.6 All
        of
        the fees and expenses of the Accounting Firm in performing the determinations
        referred to above shall be borne solely by the Company. The Company agrees
        to
        indemnify and hold harmless the Accounting Firm of and from any and all claims,
        damages and expenses resulting from or relating to its determinations above,
        except for claims, damages or expenses resulting from the gross negligence
        or
        willful misconduct of the Accounting Firm.

       

      6.
        CONFIDENTIAL
        AND PROPRIETARY INFORMATION 

      

      6.1 Executive
        recognizes that his employment with the Company will involve contact with
        information of substantial value to the Company, which is not old and generally
        known in the trade, and which gives the Company an advantage over its
        competitors who do not know or use it, including but not limited to, techniques,
        designs, drawings, processes, inventions, developments, equipment, prototypes,
        sales and customer information, and business and financial information relating
        to the business, products, practices and techniques of the Company, (hereinafter
        referred to as “Confidential and Proprietary Information”). Executive will at
        all times regard and preserve as confidential such Confidential and Proprietary
        Information obtained by Executive from whatever source and will not, either
        during his employment with the Company or thereafter, publish or disclose
        any
        part of such Confidential and Proprietary Information in any manner at any
        time,
        or use the same except on behalf of the Company, without the prior written
        consent of the Company. 

      

      7.
        ASSIGNMENT
        AND BINDING EFFECT.

      

      7.1 This
        Agreement shall be binding upon and inure to the benefit of Executive and
        Executive’s heirs, executors, personal representatives, assigns, administrators
        and legal representatives. Due to the unique and personal nature of Executive’s
        duties under this Agreement, neither this Agreement nor any rights or
        obligations under this Agreement shall be assignable by Executive. This
        Agreement shall be binding upon and inure to the benefit of the Company and
        its
        successors, assigns and legal representatives. The Company shall require
        any
        successor (whether direct or indirect, by purchase, merger, consolidation,
        reorganization or otherwise) to all or substantially all of the business
        or
        assets of the Company, by agreement in form and substance satisfactory to
        Executive, expressly to assume and agree to perform this Agreement in the
        same
        manner and to the same extent the Company would be required to perform it
        if no
        succession had taken place.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      8.
        NOTICES.

      

      8.1 All
        notices or demands of any kind required or permitted to be given by the Company
        or Executive under this Agreement shall be given in writing and shall be
        personally delivered (and receipted for) or mailed by certified mail, return
        receipt requested, postage prepaid, addressed as follows:

       

      8.1.1 If
        to the
        Company:

      

      NetSol
        Technologies, Inc.

      23901
        Calabasas Road, Suite 2072

      Calabasas,
        CA 91302

      Attn:
        General Counsel

      

      8.1.2 If
        to
        Executive:

      

      Najeeb
        Ghauri

      c/o
        NetSol Technologies, Inc.

      23901
        Calabasas Road, Suite 2072

      Calabasas,
        CA 91302

      

      Any
        such
        written notice shall be deemed received when personally delivered or three
        (3)
        days after its deposit in the United States mail as specified above. Either
        party may change its address for notices by giving notice to the other party
        in
        the manner specified in this section.

      

      9.
        TRADE
        SECRETS OF OTHERS.

      

      9.1 It
        is the
        understanding of both the Company and Executive that Executive shall not
        divulge
        to the Company and/or its subsidiaries any confidential information or trade
        secrets belonging to others, including Executive’s former employers, nor shall
        the Company and/or its affiliates seek to elicit from Executive any such
        information. Consistent with the foregoing, Executive shall not provide to
        the
        Company and/or its affiliates, and the Company and/or its affiliates shall
        not
        request, any documents or copies of documents containing such
        information.

      

      10.
        CHOICE
        OF
        LAW.

      

      10.1 This
        Agreement is made in Calabasas, California. This Agreement shall be construed
        and interpreted in accordance with the laws of the State of
        California.

       

      11.
        INTEGRATION.

      

      11.1 This
        Agreement contains the complete, final and exclusive agreement of the parties
        relating to the subject matter of this Agreement, and supersedes all prior
        oral
        and written employment agreements or arrangements between the parties.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      12.
        AMENDMENT.

      

      12.1 This
        Agreement cannot be amended or modified except by a written agreement signed
        by
        Executive and the Company.

      

      13.
        WAIVER.

      

      13.1 No
        term,
        covenant or condition of this Agreement or any breach thereof shall be deemed
        waived, except with the written consent of the party against whom the wavier
        is
        claimed, and any waiver or any such term, covenant, condition or breach shall
        not be deemed to be a waiver of any preceding or succeeding breach of the
        same
        or any other term, covenant, condition or breach.

      

      14.SEVERABILITY.

      

      14.1 The
        finding by a court of competent jurisdiction of the unenforceability, invalidity
        or illegality of any provision of this Agreement shall not render any other
        provision of this Agreement unenforceable, invalid or illegal. Such court
        shall
        have the authority to modify or replace the invalid or unenforceable term
        or
        provision with a valid and enforceable term or provision which most accurately
        represents the parties’ intention with respect to the invalid or unenforceable
        term or provision.

      

      15.
        INTERPRETATION;
        CONSTRUCTION.

      

      15.1 The
        headings set forth in this Agreement are for convenience of reference only
        and
        shall not be used in interpreting this Agreement. This Agreement has been
        drafted by legal counsel representing the Company, but Executive has been
        encouraged, and has consulted with, his own independent counsel and tax advisors
        with respect to the terms of this Agreement. The parties acknowledge that
        each
        party and its counsel has reviewed and revised, or had an opportunity to
        review
        and revise, this Agreement, and the normal rule of construction to the effect
        that any ambiguities are to be resolved against the drafting party shall
        not be
        employed in the interpretation of this Agreement.

      

      16.
        REPRESENTATIONS
        AND WARRANTIES.

      

      16.1 Executive
        represents and warrants that he is not restricted or prohibited, contractually
        or otherwise, from entering into and performing each of the terms and covenants
        contained in this Agreement, and that his execution and performance of this
        Agreement will not violate or breach any other agreements between Executive
        and
        any other person or entity.

      

      17.
        LITIGATION
        COSTS.

      

      17.1 Should
        any litigation, arbitration, or administrative action be commenced between
        the
        parties or their personal representatives concerning any provision of this
        agreement or the rights and duties of any person in relation to this agreement,
        the party or parties prevailing in such action shall be entitled, in addition
        to
        such other relief as may be granted to a reasonable sum as and for that party’s
        attorney’s fees in such litigation which shall be determined by the court,
        arbitrator, or administrative agency, in such action or in a separate action
        brought for that purpose.

      

      18.
        COUNTERPARTS.

      

      18.1 This
        Agreement may be executed in two counterparts, each of which shall be deemed
        an
        original, all of which together shall constitute one and the same
        instrument.

      

      19.
        ARBITRATION.

      

      19.1 To
        ensure
        rapid and economical resolution of any disputes which may arise under this
        Agreement, Executive and the Company agree that any and all disputes or
        controversies of any nature whatsoever, arising from or regarding the
        interpretation, performance, enforcement or breach of this Agreement shall
        be
        resolved by confidential, final and binding arbitration (rather than trial
        by
        jury or court or resolution in some other forum) to the fullest extent permitted
        by law. Any arbitration proceeding pursuant to this Agreement shall be conducted
        by the American Arbitration Association (“AAA”) in Los Angeles under the then
        existing AAA arbitration rules. If for any reason all or part of this
        arbitration provision is held to be invalid, illegal, or unenforceable in
        any
        respect under any applicable law or rule in any jurisdiction, such invalidity,
        illegality or unenforceability will not effect any other portion of this
        arbitration provision or any other jurisdiction, but this provision will
        be
        reformed, construed and enforced in such jurisdiction as if such invalid,
        illegal or unenforceable part or parts of this provision had never been
        contained herein, consistent with the general intent of the parties insofar
        as
        possible.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      20.
        PAYMENTS.
        Any amount hereunder not paid when due shall be subject until paid to an
        interest charge equal to the lesser of (i) one-and-one-half percent of the
        amount due per month and (ii) the highest rate allowable by applicable law.
        The
        late-paying party shall pay all of the other party’s costs and expenses
        (including reasonable attorney’s fees) to collect any amount due.

       

      IN
        WITNESS WHEREOF, the parties have executed this Agreement as of the date
        first
        above written.

       

      
        
          	
                  NETSOL
                    TECHNOLOGIES, INC.

                	 
	 	 
	
                  By:
                    

                	
                  /s/
                    Patti L. W. McGlasson

                	 	
                  By:

                	
                  /s/
                    Tina Gilger

                	 
	 	
                  Patti
                    L. W. McGlasson

                	 	 	
                  Tina
                    Gilger

                	 
	
                  Its:
                    Corporate Secretary

                	
                  Its:
                    Chief Financial Officer

                
	 	 
	
                  Dated:
                    January 1, 2007

                	
                  Dated:
                    January 1, 2007

                

        

      

       

      EXECUTIVE:

       

      /s/
        Najeeb Ghauri

      
        
          

        

      

      NAJEEB
        GHAURI

      

      Dated: January
        1, 2007

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]