Document:

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                                                                    EXHIBIT 10.7

                              CONSULTING AGREEMENT

         This consulting Agreement (this "Agreement") is made and entered into
as of October 15, 2002, by and between NetSol Technologies, Inc. F/K/A NetSol
International, Inc., a Nevada Corporation (hereinafter referred to as
the"Company") and Mark Caton, an individual (hereinafter referred to as the
"Consultant" collectively, the "Parties").

                                    RECITALS

WHEREAS, Consultant has certain sales and marketing experience pertaining to
sale of software and consulting services;

WHEREAS, the Company has the need to hire a Consultant in the sales and
marketing to promote the services and products offered by the Company; and

WHEREAS, the Company would like to engage the services of the Consultant and the
Consultant is interested in performing services for the Company.

NOW, THEREFORE, in consideration of the mutual promises herein contained, the
Parties hereto hereby agree as follows:

1.       CONSULTING SERVICES

                  Attached hereto as Exhibit A and incorporated herein by this
         reference is a description of the services to be provided by the
         Consultant hereunder (the "Consulting Services"). Consultant hereby
         agrees to utilize its best efforts in performing the Consulting
         Services, however, Consultant makes no warranties, representations, or
         guarantees regarding any corporate strategies attempted by the Company
         or the eventual effectiveness of the Consulting Services unless
         otherwise agreed to in writing.

2.       TERM OF AGREEMENT

                  This Agreement shall be in full force and effect commencing
         upon the date hereof. This Agreement has a term of 6 months beginning
         on the date hereof. This Agreement shall be renewed automatically for
         succeeding terms of 30 days unless either party gives written notice to
         the other at least 30 days prior to the expiration of any term of their
         intention not to review this Agreement. Either party hereto shall have
         the right to terminate this Agreement without notice in the event of
         the death, bankruptcy, insolvency, or assignment for the benefit of
         creditors of the other party. The Company shall have the right to
         terminate this Agreement upon delivery to Consultant of notice setting
         forth with specificity facts comprising a material breach of this
         Agreement by consultant. Consultant shall have 30 days to remedy such
         breach. Each party shall have the right to terminate this Agreement
         without cause upon 30 days written notice.

3.       TIME DEVOTED BY CONSULTANT

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                  It is anticipated that the Consultant shall spend as much time
         as deemed necessary by the Consultant in order to perform the
         obligations of Consultant hereunder. The Company understands that this
         amount of time may vary and that the Consultant may perform Consulting
         Services for other companies.

4.       PLACE WHERE SERVICES WILL BE PERFORMED

                  The Consultant will perform most services in accordance with
         this Agreement in the United States. In addition, the Consultant will
         perform services on the telephone and at such other place(s) as
         necessary to perform these services in accordance with this Agreement.

5.       COMPENSATION TO CONSULTANT

                  The Consultant's compensation for the Consulting Services
         shall be as set forth in Exhibit B attached hereto and incorporated
         herein by this reference.

6.       INDEPENDENT CONTRACTOR

                  Both Company and the Consultant agree that the Consultant will
         act as an independent contractor in the performance of his duties under
         this Agreement. Nothing contained in this Agreement shall be construed
         to imply that Consultant, or any employee, agent or other authorized
         representative of Consultant, is a partner, joint venture, agent,
         office of employee of Company.

7.       CONFIDENTIAL INFORMATION

                  The consultant and the Company acknowledge that each will have
         access to proprietary information regarding the business operations of
         the other and agree to keep all such information secret and
         confidential and not to use or disclose any such information to any
         individual or organization without the non-disclosing Parties prior
         written consent. It is hereby agreed that from time to time Consultant
         and Company may designate certain disclosed information as confidential
         for purposes of this Agreement.

8.       INDEMNIFICATION

                  The Company hereby agrees to indemnify and hold Consultant
         harmless from any and all liabilities incurred by Consultant under the
         Securities Act of 1933, as amended (the "Act"), the various state
         securities acts, or otherwise, insofar as such liabilities arise out of
         or are based upon (i) any material misstatement or omission contained
         in any offering documents provided by the Company (ii) any actions by
         the Company, direct or indirect, in connection with any offering by the
         Company, in violation of any applicable federal or state securities
         laws or regulations, or (iii) a breach of this Agreement by the
         Company. Furthermore, the Company agrees to reimburse Consultant for
         any legal or other expenses incurred by Consultant in connection with
         investigating or defending any action, proceeding, investigation, or
         claim in connection herewith. The indemnity obligations of the Company
         under this paragraph shall

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         extend to the shareholders, directors, officers, employees, agents and
         control persons of Consultant.

                  The indemnity obligations of the Parties under this paragraph
         8 shall be binding upon and inure to the benefit of any successors,
         assigns, heirs, and personal representatives of the Company, the
         Consultant, and any other such persons or entities mentioned
         hereinabove.

9.       COVENENTS OF CONSULTANT

                  Consultant covenants and agrees with the Company that, in
         performing Consulting Services under this agreement, Consultant will:

                  (a) Comply with all federal and state securities and corporate
                      laws;

                  (b) Not make any representations other than those authorized
                      by the Company, except as identified in paragraph 7;

                  (c) Not compete directly or indirectly with the Company (see
                      paragraph 10); and

                  (d) Not publish, circulate or otherwise use any solicitation
                      materials, investor mailings, or updates other than
                      materials provided by or otherwise approved by the
                      Company.

10.      COVENANT NOT TO COMPETE

         The Company anticipates conducting operations worldwide. In the event
         there is a sale of shares by any party hereto and such shareholder
         elects to no longer be actively involved in the operations of the
         Company, Consultant agrees as follows:

                  (a)   He shall not, either directly or indirectly, compete
                      with the Company as an owner, manager, operator, employee,
                      salesman, agent, consultant, shareholder, or other
                      participant, with the operations of the Company existing
                      at the time of such sale, for a five (5) year period of
                      time following the date of such sale (subject to any
                      limitations set forth herein), anywhere in the United
                      States.

                  (b)   The covenant not to compete contained in this section 10
                      is intended as a separate covenant with respect to each
                      territory, or part thereof, set forth above. If any one of
                      the covenants is declared invalid for any reason, this
                      ruling shall not affect the validity of the remainder of
                      the covenants. The other covenants in the noncompetition
                      provision shall remain in effect as if the provision had
                      been executed without the invalid covenants. The Parties
                      hereby declare that they intend that the remaining
                      covenants of the provision continue to be effective
                      without any covenants that have been declared invalid.

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                  (c)   The covenant not to compete contained in this section 10
                      shall be binding upon and inure to the benefit of any
                      successor or assigns of the Parties, and such successor or
                      assign shall be deemed substituted for the Parties under
                      the terms of this Agreement. As used in this Agreement,
                      the term successor or assign shall be as a matter of
                      illustration and not of limitation, include any person,
                      form, corporation or other business entity which, at any
                      time, whether by merger, purchase or otherwise, acquires
                      all or substantially all of the assets or business of the
                      Company or substantially all of the shares of any
                      shareholder.

11.      MISCELLANEOUS

                           (A)  Any controversy arising out of or relating to
                                this Agreement or any modification or extension
                                thereof, including any claim for damages and/or
                                rescissions shall be settled by arbitration in
                                Los Angeles County, California in accordance
                                with the Commercial Arbitration Rules of the
                                American Arbitration Association before a panel
                                of three arbitrators. The arbitrators sitting in
                                any such controversy shall have no power to
                                alter or modify and express provisions of this
                                Agreement or to render any award which by its
                                terms effects any such alteration, or
                                modification subject to 11(G). This Section 11
                                shall survive the termination of this Agreement.

                           (B)  If either party to this Agreements brings an
                                action on this Agreement, the prevailing party
                                shall be entitled to reasonable expenses
                                therefore, including, but not limited to,
                                attorneys' fees and expenses and court costs.

                           (C)  This agreement shall inure to the benefit of the
                                Parties hereto, their administrators and
                                successors in interest. This Agreement shall not
                                be assignable by either party hereto without the
                                prior written consent of the other.

                           (D)  This agreement contains the entire understanding
                                of the Parties and supersedes all prior
                                agreements between them.

                           (E)  This Agreement shall be constructed and
                                interpreted in accordance with the governed by
                                the laws of the State of California.

                           (F)  No supplement, modification or amendment of this
                                Agreement shall be deemed, or shall constitute,
                                a waiver of any other provision, whether or not
                                similar, nor shall any waiver constitute a
                                continuing waiver. No waiver shall be binding
                                unless executed in writing by the party making
                                the waiver.

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                           (G)  If any provision hereof is held to be illegal,
                                invalid or unenforceable under present or future
                                laws effective during the term hereof, such
                                provision shall be fully severable. This
                                Agreement shall be construed and enforced as if
                                such illegal, invalid or unenforceable provision
                                had never comprised a part hereof, and the
                                remaining provisions hereof shall remaining full
                                force and effect and shall not be affected by
                                the illegal, invalid or unenforceable provision
                                or by its severance here from.

         IN WITNESS WHEREOF, the Parties hereto have placed their signatures
hereon on the day and year first above written.

NetSol Technologies, Inc.
a Nevada Corporation

/s/ Najeeb Ghauri
-----------------
BY: Najeeb Ghauri, CFO

/s/ Mark Caton
--------------
Mark Caton

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                                    EXHIBIT A
                       DESCRIPTION OF CONSULTING SERVICES

Consultant shall perform the following services pursuant to the terms of this
Agreement:

Consultant shall use his marketing skills to promote the sale of the Company's
products and services.

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                                    EXHIBIT B
                      COMPENSATION FOR CONSULTING SERVICES

CASH COMPENSATION: From June 1, 2002 to December 31, 2002, Consultant shall
receive cash compensation of $5,000 per month. This will be reviewed at least
after 6 months.

STOCK OPTIONS: Consultant shall be granted 100,000 Options for shares of
restricted Rule 144 common stock with a strike price of $ 0.10. There will be
another 100,000 options at strike price of 0.50

Amended in October 15, 2003. Additional Stock Options under ESOP 2001. Total
grant 200,000 options with a strike price of $0.15.

CONVERSION: Consultant shall have the option of exercising his stock options
with the salary paid, by notifying the management in writing of his choice to do
so.

Initial: __/MC/___

Initial: NetSol __/NG/__<PAGE>
                                                                     EXHIBIT 4.1

Number                                                         Shares

                            NETSOL TECHNOLOGIES, INC.

INCORPORATED UNDER THE LAWS                                    CUSIP
OF THE STATE OF NEVADA

THIS CERTIFIES THAT
                                                               ----------------

Is the owner of

   FULLY PAID AND NON-ASSESSABLE 25,000,000 AUTHORIZED SHARES COMMON SHARES,
                               PAR VALUE $001, OF

                            NETSOL TECHNOLOGIES, INC.

Transferable only on the books of the Company in person or by duly authorized
attorney upon surrender of this Certificate properly endorsed. This Certificate
is not valid unless countersigned and registered by the Transfer Agent and
Registrar.

IN WITNESS WHEREOF, the said Company has caused this Certificate to be executed
by the facsimile signatures of its duly authorized officers and to be sealed
with the facsimile seal of the Company.

<TABLE>
<S>                               <C>                    <C>
Dated:

/s/Najeeb Ghauri                                         /s/Naeem Ghauri

CORPORATE SECRETARY               COMPANY SEAL           CHIEF EXECUTIVE OFFICER
</TABLE>
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The Corporation will furnish to any stockholder upon request and without charge,
a statement of the powers, designations preferences and relative participating
optional or other special rights of each class of stock or series thereof and
the qualifications, limitations restriction of such preferences and/or rights,
so far as the same shall have been fixed, and of the authority of the Board of
Directors to designate and fix any preferences, rights and limitations of any
wholly unissued series. Any such requests should be addressed to the Secretary
of the Corporation at its corporate headquarters.

KEEP THIS CERTIFICATE IN A SAFE PLACE, IF IT IS LOST, STOLEN OR DESTROYED THE
CORPORATION WILL REQUIRE A BOND OF INDEMNITY AS A CONDITION TO THE ISSUANCE OF A
REPLACEMENT CERTIFICATE.

The following abbreviations, when used in the inscription on the fact of this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>          <C>                                 <C>
TEN COM      -as tenants in common               UNIF GIFT MIN ACT-          Custodian
                                                                    --------           ---------
TEN ENT      -as tenants by the entireties                           (cust)             (minor)
JT TEN       -as joint tenants with right of                        under Uniform Gifts to Minors
             Survivorship and not as tenants     UNIF TRF MIN ACT-           custodian (until age     )
                                                                    --------                      ---
             In common                                               (cust)

                                                                             under Uniform Transfers
                                                                    --------
                                                                    (minor)
                                                                    to Minors Act
                                                                                 ----------------------
                                                                                        (state)
</TABLE>

    Additional abbreviations may also be used though not in the above list.

FOR VALUE RECEIVED,                        hereby sell, assign and transfer unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE

-------------------------

--------------------------------------------------------------------------------
  (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)
--------------------------------------------------------------------------------

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                                                                          Shares
of the common stock represented by the within Certificate, and do hereby
irrevocably consent and appoint

                                                                        Attorney
to transfer the said stock on the books of the within named Corporation with
full power of substitution in the premises

<TABLE>
<S>                                <C>
Dated:
      -----------------------

                                   X
                                     -------------------------------------------

                                   X
                                     -------------------------------------------
                                   NOTICE: THE SIGNATURE(S) TO THIS ASSIGNMENT
                                   MUST CORRESPOND WITH THE NAME(S) AS WRITTEN
                                   UPON THE FACE OF THE CERTIFICATE IN EVERY
                                   PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT
                                   OR ANY CHANGE WHATEVER.
</TABLE>

Signature(s) Guaranteed

By:
   -------------------------------------
The signature(s) must be guaranteed by an eligible guarantor institution (Banks,
stockbrokers, savings and loan associations and credit unions with membership in
an approved signature guarantee medallion program), Pursuant to S.E.C. Rule
17Ad-15

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