Document:

AMENDMENT
        TO EMPLOYMENT AGREEMENT

      

      This
        Amendment (“Amendment”) to the Employment Agreement by and between NetSol
        Technologies, Inc. (“Netsol” or the “Company”) and Salim Ghauri (“Executive”),
        dated January 1, 2007 (the “Employment Agreement”) is entered into effective as
        of January 1, 2008, other than the specific amendments enumerated in the
        Amendment, all of the terms of the Employment Agreement shall remain in the
        full
        force and effect, and shall not be obviated or affected by this
        Amendment.

      

      In
        the
        event of a conflict between the terms of this Amendment and the Employment
        Agreement, the terms of this Amendment shall govern. All capitalized terms
        contained herein are, unless otherwise stated, as defined in the
        Agreement.

      

      Now
        therefore, for good and valuable consideration, the sufficiency of which
        is
        hereby acknowledged, the parties agree as follows:

      

      Section
        1.1 of the Employment Agreement is modified to read:

      

      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 as provided
        herein. The Employment Period shall be automatically extended for additional
        three-year periods unless either party notifies the other in writing six
        months
        before the end of the term to elect not to so extend the Employment Period.
        

      

      Section
        3.1 of the Employment Agreement is modified to read:

      

      3.1 The
        Company shall pay Executive a base salary of Two Hundred Twenty-Five Thousand
        Dollars ($225,000) 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 will be eligible
        for
        bonuses from time to time as determined by the Board.

      

      A
        new
        section 3.8 shall be added to read as follows:

      

      3.8
        Only
        upon the achievement of the Minimum Bonus Benchmark (as defined below),
        Executive shall be granted stock options for 525,000 shares of the common
        stock
        of the Company (the "Options") pursuant to an option agreement (the "Option
        Agreement") issued pursuant to the Company’s 2005 Employee Stock Option Plan and
        shall vest equally over twenty four months beginning on the grant date and
        will
        be exercisable based on the customary provisions of such plan. The Option
        Agreement will have customary provisions relating to adjustments for stock
        splits and similar events. The exercise price of the Options will be $2.62
        for
        175,000 shares and, $3.90 for 350,000 shares. 

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      A
        new
        section 3.9 shall be added to read as follows:

      

      3.9
        Pursuant to the power granted to the board to provide bonuses to the Executive
        in section 3.1 of this Agreement, the compensation committee has authorized
        the
        following bonus structure. The bonus structure contemplates a bonus being
        awarded on the basis of a benchmark and accelerators. A bonus of Fifty Thousand
        Dollars ($50,000) is payable upon achieving the minimum bonus benchmark of:
        company-wide revenue of $32,230,000 for fiscal year 2007-2008; and, earnings
        per
        share of $0.22 (the “Minimum Bonus Benchmark”). Additional bonuses may be earned
        if certain “accelerator goals” are achieved. The bonus is accelerated to 200% of
        the bonus amount if revenue of $35,000,000 is attained and earnings per share
        of
        $0.27; and, to 400% if revenue of $40,000,000 is attained and earnings per
        share
        of $0.32. Once the Minimum Bonus Benchmark is attained the accelerator bonus
        shall be awarded proportionally to the accelerator goals achieved.

       

       

      The
        Amendment is agreed to on February 11, 2008 and shall become effective as
        of the
        date first written above.

    

     

     

    Employee

     

    

      
        	
                By:
                  

              	  
	 	 	 	 
	
                 

              	
                
                  Salim
                    Ghauri

                

              	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
                NetSol
                  Technologies, Inc.

              	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
                By:
                  

              	  
	 	
                By:
                  

              	    
	 
	 	
                Tina
                  Gilger

              	 	 	
                Patti
                  L. W. McGlasson

              	 
	 	
                Chief
                  Executive Officer

              	 	 	
                SecretaryCONVERTIBLE
      LOAN AGREEMENT

    

    Between

    

    Qnective
      Inc., (3702 South Virginia St., Suite G12-401, Reno, NV, 89502, United States
      of
      America ("Qnective") 

    and
      

    Mrs.
      Thea
      Kunz, CH-4414 Arlesheim, (“Kunz”)

    

    

    1. General
      

    

    
      	 	
              a)

            	
              Qnective
                is a company which is active in the field of telecommunications in
                Switzerland. For the further enrolment of its services it requires
                sufficient working capital;

            

    

    

    
      	 	
              b)

            	
              Therefore,
                Qnective wishes to borrow from Kunz, and Kunz wishes to lend to Qnective,
                a total amount of USD 2’000’000.00 in the form of a convertible
                subordinated loan.

            

    

    

    2. Delivery
      of the Funds

    

    Kunz
      will
      immediately provide for a transfer to the bank account of Qnective at
      ___________; the amount of USD 2’000’000.00. Qnective will acknowledge receipt
      of that amount and acknowledge owing USD 2’000’000.00 to Kunz, with reference to
      the present Agreement.

    

    3. Interest

    

    A
      fixed
      interest of 15% per annum shall be due on the principal. The interest is due
      from the date of the execution of this agreement and is payable quarterly,
      beginning at December 1th , 2008.

    

    4. Term;
      Prepayment of Loan

    

    
      	a)	
              All
                unpaid principal shall be due and payable on the third anniversary
                of this
                Agreement (such date is referred to as "Due
                Date").

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	b)	
              Qnective
                may prepay the principal on the first anniversary of this agreement
                by
                giving 30 days notice in writing. In such case, Qnective has to pay
                an
                interest of 7.5 per annum of the remaining term of this
                agreement.

            

    

    

    5. Conversion
      Option

    

    
      	a)	
              Qnective
                grants Kunz the option to convert the sums payable as interest as
                well as
                the repayment of the principal into Common Stock of Qnective under
                the
                conditions outlined in this section 5; by giving 30 days written
                notice on
                an interest payment term or the due date. The day on which notice
                has to
                be given is referred to herein as the “Effective
                Date”;

            

    

    
      	b)	
              Condition
                for the execution of the conversion option is a stock exchange rate
                of
                $2.00 or higher at Effective Date; 

            

    

    
      	c)	
              In
                case of execution the amount of shares to received is calculated
                according
                to the stock exchange rate at Effective
                Date;

            

    

    
      	d)	
              In
                case of conversion of a quarterly interest payment, an increase of
                100% on
                the amount of shares calculated according to lit. c shall be granted;
                

            

    

    
      	e)	
              The
                transfer of the shares into a shares deposit of Kunz shall be effectuated
                not later than 30 days after Effective
                Date;

            

    

    
      	f)	
              Referring
                to the Statutes of Qnective which provide for a conditional capital
                stock
                increase, Qnective declares to be able to issue the necessary number
                of
                shares required in case of conversion of the hereunder defined
                loan;

            

    

    
      	g)	
              In
                case of conversion, Kunz will serve a formal declaration of compensation
                to Credit Suisse, Basel, (Art. 653 e lit. b of Swiss Code of Obligations)
                no later than 30 days after the day on which the respective interest
                payment or the repayment of the principal was
                due.

            

    

    

    6. Confidentiality

    

    Kunz
      declares to keep confidential all internal information of Qnective coming to
      her
      knowledge in respect with the execution of this agreement even in the case
      such
      information is not expressly declared as secret or confidential. 

    

    7. Amendments,
      modifications

    

    This
      Agreement may only be modified or amended by an instrument in
      writing.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    8. Severability;
      Enforcement 

    

    If
      any
      provision of this Agreement, shall be invalid, unenforceable, or void, the
      remainder of this Agreement shall remain in full force and effect. The invalid,
      unenforceable or void provisions have to be replaced by other provisions which
      come as close as possible to the original intention of the parties but are
      valid
      and enforceable; or the existing provisions have to be interpreted in such
      manner. 

    

    9. Governing
      Law

    

    This
      Agreement shall be governed by and construed in accordance with Swiss law .
      The
      parties irrevocably submit to the exclusive jurisdiction of the Zurich courts
      in
      respect of any matter or dispute arising under or in connection
      herewith.

    

    10. Counterparts

    

    This
      agreement is executed in two counterparts for each party.

    

     

    

    Arlesheim,
      _____________________ (Date)

     

     

     

    

    
      	
              Thea
                Kunz

            	
              Qnective
                Inc.

            
	 	 
	 	 
	
              _______________________

            	
              ________________________

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