Document:

Exhibit
10.57

 

2004
ANNUAL SENIOR EXECUTIVE BONUS PLAN

 

The following bonus plan
will govern senior executives for the year 2004.

 

As used herein:

 

“Bonus Payment Date” means the date
on which the Annual Bonus and any Quarterly Progress Payouts are paid as
determined by the Compensation Committee. Payments shall be made as soon as
practicable after the financial statements for the relevant period are
prepared, reviewed or audited by the Company’s independent accountants and
approved by the Board of Directors. Except for good cause, Quarterly Progress
Payouts shall be made no later than 35 days after the end of the applicable
quarter and the Annual Bonus will be paid no later than 65 days after the end
of the Fiscal Year.

 

“EBITDA” means the
Company’s earnings before interest, taxes, depreciation and amortization for
the applicable Fiscal Year as calculated from the Company’s audited statements
of operations, but adjusted for (A) any extraordinary gains or losses or
items of a non-recurring nature, and; (B) strategic costs as determined
and approved by the Compensation Committee. 
In the event of any dispute or disagreement, the Board of Directors
shall have the sole discretion to determine EBITDA for purposes of this Agreement.

 

“Plan” means the
Annual Plan approved by the Board of Directors for the applicable Fiscal Year.

 

(a)           Annual Bonus.

 

During the first year that  Employment Agreement is in effect, Executive
shall be eligible to earn an Annual Performance Bonus (the “Annual Bonus”) as
follows:

 

Employment on Payout Dates
as Prerequisite; No Bonus Earned Until Payment Date.  Executive shall not earn or be entitled to an
Annual Bonus, a prorated share of the Annual Bonus, or any portion thereof
unless Executive remains employed by the Company in an Executive position
through the applicable period and remains employed in an Executive
position on the Payment Date.  Should
Executive be employed by the Company on the date of a Quarterly Progress Payout
but not at the time of the payment of the Annual Bonus, Executive shall have
earned and be entitled to payment only of the Quarterly Progress Payout(s)
actually received and shall not have earned or be entitled to any additional
amounts.

 

Attainment of Plan as
Prerequisite.  No Annual
Bonus shall be earned or payable unless earnings as measured by fiscal year-end
audited EBITDA are at no less than 90% of Plan for the then-current Fiscal
Year.  Eligibility shall be based on the
percentage of Plan achieved, as described below.

 

Annual Bonus as Percentage
of Salary Based Upon Achieving Plan.  Upon achieving 90% of Plan, Executive shall
be eligible for an Annual Bonus equal to 25% [22.5%; 20%] of Base

 

 

Salary. 
Upon achieving 100% of Plan, Executive shall be eligible for an Annual
Bonus equal to 50% [45%; 40%] of Base Salary. 
Upon achieving less than 100% of Plan but more than 90% of Plan
Executive shall be eligible for an Annual Bonus which shall be prorated based
upon the percentage of Plan achieved.

 

Method of Payment.  There shall be a Quarterly Progress Payout of
the Annual Bonus as follows.

 

(1)                                  At the
conclusion of the first fiscal quarter ending December 31, provided that
quarterly EBITDA is at least 90% of Plan for that first quarter based upon
quarterly review by the Company’s auditors, the amount of annual bonus that
would be earned if, at the end of the fiscal year, EBITDA was equal to the same
percentage of Plan as the percentage achieved in the first quarter, multiplied
by 12.5%;

 

(2)                                  At the
conclusion of the second fiscal quarter ending March 31, the greater of the
following:

 

(A)                              If quarterly
EBITDA is at least 90% of Plan for that second quarter based upon quarterly
review by the Company’s auditors, the amount of annual bonus that would be
earned if, at the end of the fiscal year, EBITDA was the same percentage of
Plan as the percentage achieved in the second quarter,  multiplied by 25%; or

 

(B)                                If no bonus was
earned in the first quarter and EBITDA in the aggregate for the first and
second quarters is at least 90% of Plan, based upon quarterly review by the
Company’s auditors, the amount of annual bonus that would be earned if, at the
end of the fiscal year, EBITDA was the same percentage of Plan as the
percentage achieved in the first and second quarters multiplied by 37.5%;

 

(3)                                  At the
conclusion of the third fiscal quarter ending June 30, the greater of the
following:

 

(A)                              If quarterly
EBITDA is at least 90% of Plan for that third quarter based upon quarterly
review by the Company’s auditors, the amount of annual bonus that would be
earned if, at the end of the fiscal year, EBITDA was the same percentage of
Plan as the percentage achieved in the third quarter, multiplied by 12.5%; or

 

(B)                                If a bonus was
earned in the first quarter but not the second quarter, and if EBITDA in the
aggregate for the second and third quarters is at least 90% of Plan based upon
quarterly review by the Company’s auditors, the amount of annual bonus that
would be earned if, at the end of the fiscal year, EBITDA was the same 

 

2

 

percentage of Plan as the
percentage achieved in the second and third quarters, multiplied by 37.5%, or

 

(C)                                If no bonus was
earned in the first or second quarters and, if EBITDA in the aggregate for the
first, second and third quarters is at least 90% of Plan, based upon quarterly
review by the Company’s auditors, the amount of annual bonus that would be
earned if, at the end of the fiscal year, EBITDA was the same percentage of
Plan as the percentage achieved in the first, second and third quarters, multiplied
by 50%;

 

(4)                                  At the
conclusion of the fiscal year ending September 30, the following:

 

(A)                              If annual
EBITDA is at least 90% of Plan for the year based upon audited results by the
company’s auditors, 100% of the annual bonus earned less any Quarterly Progress
Payouts made during the fiscal year.

 

(b)           Supplemental Annual Bonus Payment On Earnings Exceeding
Plan.

 

At the conclusion of the Fiscal Year in which
results exceed Plan, Executive shall be entitled to a Supplemental Annual Bonus
payment equal to a percentage share recommended by the company’s CEO and
approved by the Board of Directors of a bonus pool consisting of 25% of the
EBITDA in excess of Plan; PROVIDED THAT Executive shall not earn or be entitled
to any Supplemental Bonus after the aggregate of the base salary and all bonus
payments reaches 300% of the base Executive’s salary.

 

(c)           Potential
Renewal of Annual Bonus.

 

The Annual Bonus may be renewed on an annual
basis upon the review and recommendation of the CEO and approval of the Board of
Directors.

 

 

 

3EXHIBIT 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.

Dated:

/s/Patti L. W. McGlasson                            /s/Naeem Ghauri
CORPORATE SECRETARY             COMPANY SEAL        CHIEF EXECUTIVE OFFICER

<PAGE>

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:

TEN COM      -as tenants in common
TEN ENT      -as tenants by the entireties
JT TEN       -as joint tenants with right of Survivorship

UNIF GIFT MIN ACT- _________ Custodian _________
                   (cust)              (minor)

                under Uniform Gifts to Minors Act ________
                                                  (state)

UNIF TRF MIN ACT- _________ Custodian __________
            (cust)              (minor)

                under Uniform Transfers to Minors Act ____________
                                                      (state)

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 ASIGNEE)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

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

<PAGE>

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.

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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