Document:

LEASE
        AMENDMENT WITH REGUS BUSINESS SERVICES (SHANGHAI) LTD., DATED JULY 1,
        2006

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          Terms
            of Business

          

          USING
            REGUS CENTRES 

           

          
            	1	
                    We
                      are REGUS BUSINESS CENTRE (BEIJING) LTD , hereafter referred
                      to as
                      “Regus”. These are our terms of business.
                      

                  

          

           

          They
            apply to the service Agreement which you the client have signed (which
            we refer
            to simply as your Agreement). Your Agreement supersedes any previous
            Agreement
            you may have with us for the same services and contains all the terms
            we have
            agreed.

          

          STANDARD
            SERVICES INCLUDED IN YOUR STANDARD FEE

           

          
            	2	
                    Furnished
                      Office Accommodation

                  

          

           

          We
            are to
            provide the number of serviced and fully furnished accommodations for
            which you
            have agreed to pay in the business centre stated in your Agreement (also
            referred to in this Agreement as “Accommodation(s)”). Your Agreement lists the
            accommodations we have initially allocated for your use. Occasionally,
            we may
            need to allocate different accommodations, but these will be of equivalent
            size
            and we will attempt to obtain your approval with respect to such different
            accommodations in advance.

          

          
            	3	
                    Office
                      Services

                  

          

           

          We
            are to
            provide the services described in the Business Services Order, the Regus
            Workstation offer and, if requested, the Business Services offer, and
            the
            RegusNet IT Connectivity Order during normal operating hours Monday to
            Friday.
            (Connectivity is available 24/7).

          We
            are
            happy to discuss special arrangements for use of these services outside
            our
            normal operating hours. All services are subject to the availability
            of our
            centre team at the time of any service request. We will endeavour to
            deal with a
            service request at the earliest opportunity, but will not be held responsible
            for any delay. If in our opinion, we decide that a request for any particular
            Business Service is excessive, we reserve the right to charge an additional
            fee
            at our usual published rates based on the time taken to complete the
            service.

          

          
            	4	
                    RegusNET

                  

          

           

          You
            must
            comply with any copyright notices, license terms or other notices appearing
            on
            screen or as part of any material on the Internet or our network. You
            must not
            copy, use or exploit such software or other material in any way, unless
            we have
            explicitly given you permission to do so. You must strictly comply with
            the
            terms of any permission that we give.

           

          We
            do not
            make any representations as to the security of our network (or the Internet)
            or
            of any information that you place on it. You should adopt whatever security
            measures (such as encryption) you believe are appropriate to your
            circumstances.

           

          We
            cannot
            guarantee that a particular degree of availability will be attained in
            connection with your use of the services. You hereby warrant to us that
            our
            provision of these services to you will not infringe the rights of any
            third
            party. You agree to comply with the RegusNet Conditions of Use as set
            out on the
            RegusNet Access Registration form. We warrant that the services shall
            be
            provided and performed in a professional and workmanlike manner and shall
            conform to the description of the services set out in the offers for
“Regus
            Connectivity Services” and in the RegusNet Access Registration form. If we fail
            to provide the services as warranted, your sole and exclusive remedy
            shall be
            the remedy of such failure by us within a reasonable time after written
            notice.

           

          The
            above
            warranty is in lieu of all other terms, conditions and warranties, whether
            express or implied by usage, custom, statute or otherwise, appertaining
            to the
            services and manner in which we perform our obligations and exercise
            our rights
            including, but without prejudice to the generality of the foregoing,
            such as
            relate to the description, performance, quality, suitability or fitness
            for any
            particular purposes, of the services. We do not warrant that the services
            will
            be uninterrupted or error free.

          

          USING
            THE ACCOMMODATION

           

          
            	5	
                    On
                      Moving In

                  

          

           

          You
            will
            be asked to sign an inventory of all accommodation(s), furniture and
            equipment
            you are permitted to use, together with a note of its condition, and
            details of
            the keys or entry cards issued to you. You may at any time have as many
            employees working in your accommodation(s) as there are maximum allowable
            workstations. This number is noted on the front of this Agreement. Anytime
            the
            number of people sharing an accommodation exceeds the maximum number
            of
            workstations allowable in that accommodation a Hot Desk Supplement fee
            equal to
            the monthly standard VO fee, (prices available on request), will apply
            for each
            person over the number of maximum workstations for the given accommodation.
            If
            at any time the number of people physically present exceeds the maximum
            number
            of workstations allowable, those employees will pay an additional hourly
            or
            daily rate for the additional accommodations. 

          

          
            	6	
                    The
                      Nature Of Your Business

                  

          

           

          You
            must
            only use the accommodation for office purposes, and only for the business
            stated
            in your Agreement or subsequently agreed with us. Office/Accommodation
            use of a
“retail” nature, involving frequent visits by members of the public, is not
            permitted. You must not carry on a business which competes with our business
            of
            providing serviced office or cube accommodations. You must not use the
            name
            Regus or any of its associated companies in any way in connection with
            your
            business.

          

          
            	7	
                    Your
                      Name And Address

                  

          

           

          You
            may
            only carry on that business in your name or some other name that we previously
            agree. At your request and cost we will include that name in the house
            directory
            at the business centre, where this is available. You must not put up
            any signs
            on the doors to your accommodation or anywhere else which is visible
            from
            outside the accommodation you are using. You may use the business centre
            address
            as your business address. If you use the centre address as your registered
            business address, you must have a third-party registered as your agent
            for
            service of process. 

          

          
            	8	
                    Taking
                      Care Of Our Property

                  

          

           

          You
            must
            take good care of all parts of the business centre, its equipment, fittings
            and
            furnishings which you use. You must not alter any part of it. You are
            liable for
            any damage caused by you or those in the business centre with your permission
            or
            at your invitation.

          

          
            	9	
                    Office
                      Furniture And Equipment

                  

          

           

          You
            must
            not install any furniture or office equipment, cabling, IT or telecom
            connections without our consent, which we may refuse at our absolute
            discretion.

          

          
            	10	
                    Keys
                      And Security

                  

          

           

          Any
            keys
            or entry cards which we let you use remain our property at all times.
            You must
            not make any copies of them or allow anyone else to use them without
            our
            consent. Any loss must be reported to us immediately and you must pay
            the cost
            of replacement keys or cards and / or changing locks, if required. If
            you are
            permitted to use the business centre outside normal working hours it
            is your
            responsibility to lock the doors to your accommodation and to the business
            centre when you leave.

          

          
            	11	
                    Comply
                      With The Law

                  

          

           

          You
            must
            comply with all relevant laws and regulations in the conduct of your
            business.
            You must do nothing illegal. You must not do anything that may interfere
            with
            the use of the business centre by us or by others, cause any nuisance
            or
            annoyance, increase the insurance premiums we have to pay or cause loss
            or
            damage to us or to the owner of any interest in the building which contains
            the
            business centre. You acknowledge that (a) the terms of the foregoing
            sentence
            are a material inducement to us for the execution of your Agreement and
            (b) any
            violation by you of the foregoing sentence shall constitute a material
            default
            by you hereunder, entitling us to terminate your Agreement.

          

          
            	12	
                    Comply
                      With House Rules

                  

          

           

          You
            must
            comply with any house rules which we impose generally on users of the
            business
            centre whether for reasons of health and safety, fire precautions or
            otherwise.

          

          
            	13	
                    Insurance

                  

          

           

          It
            is
            your responsibility to arrange insurance for your own property which
            you bring
            into the business centre and for your own liability to your employees
            and to
            third parties.

          

          PROVIDING
            THE SERVICES

           

          
            	14	
                    Access
                      To Your Accommodation

                  

          

           

          We
            can
            enter your accommodation at any time. However, unless there is an emergency
            we
            will as a matter of courtesy try to inform you in advance when we need
            access to
            carry out testing, repair or works other than routine inspection, cleaning
            and
            maintenance. We will also respect security procedures to protect the
            confidentiality of your business.

          

          
            	15	
                    At
                      The Start Of Your
                      Agreement

                  

          

           

          If
            for
            any reason we cannot provide the Accommodation(s) stated in your Agreement
            by
            the date when your Agreement is due to start we have no liability to
            you for any
            loss or damages but you may cancel the Agreement without penalty. We
            will not
            charge you the standard fee for accommodations you cannot use until they
            become
            available.

          

          
            	16	
                    Suspension
                      Of Services

                  

          

           

          We
            may
            suspend the provision of services (including access to the business centre)
            for
            reasons of political unrest, strikes, or other events beyond our reasonable
            control, in which event payment of the standard fee will also be suspended
            for
            the same period.

          

          
            	17	
                    Our
                      Liability

                  

          

           

          We
            are
            not liable for any loss as a result of our failure to provide a service
            as a
            result of mechanical breakdown, strike, delay, failure of team, termination
            of
            our interest in the building containing the business centre or otherwise
            unless
            we do so deliberately or are grossly negligent. We are also not liable
            for any
            failure until you have informed us about it in writing and given us a
            reasonable
            time to put right. In addition, client releases Regus from any liability
            arising
            out of or incurred in connection with any Client Mail. 

          You
            agree
            (a) that we will not have any liability for any loss, damage or claim
            which
            arises as a result of, or in connection with, your Agreement and/or your
            use of
            the services except to the extent that such loss, damage, expense or
            claim is
            directly attributable to our deliberate act or our gross negligence (our
            liability); and (b) that our liability will be subject to the limits
            set out in
            the next paragraph.

           

          We
            will
            not in any circumstances have any liability for loss of business, loss
            of
            profits, loss of anticipated savings, loss of or damage to data, third
            party
            claims or any consequential loss. We strongly advise you to insure against
            all
            such potential loss, damage expense or liability. 

           

          We
            will
            be liable:

           

          
            *up
              to a
              maximum of RMB 7,500,000 (for any one event or series of connected
              events) for
              damage to your personal property; 

             

          

          
            *up
              to a
              maximum equal to 125% of the total fees paid under your Agreement up
              to the date
              on which the claim in question arises or RMB 400,000 (whichever is
              the higher),
              in respect of all other losses, damages expenses or claims. 

          

          

          YOUR
            AGREEMENT

          

          
            	18	
                    The
                      Nature Of Your Agreement

                  

          

          

          Your
            Agreement is the commercial equivalent of an Agreement for accommodation
            in a
            hotel. The whole of the business centre remains our property and in our
            possession and control. You acknowledge that your Agreement creates no
            tenancy
            interest, leasehold estate or other real property interest in your favour
            with
            respect to the accommodation. We are giving you just the right to share
            with us
            the use of the business centre so that we can provide the services to
            you. The
            Agreement is personal to you and cannot be transferred to anyone else.
            We may
            transfer the benefit of your Agreement and our obligations under it at
            any
            time.

          

          
            	19	
                    Duration

                  

          

          

          Your
            Agreement lasts for the period stated in it and will then automatically
            be
            extended for successive periods equal to the current term but no less
            than 3
            months until brought to an end by you or by us. All periods shall run
            to the
            last day of the month in which they would otherwise expire. The fees
            on any
            renewal will be the market price. In all other respects your Agreement
            will
            renew on the same terms and conditions.

          

          
            	20	
                    Bringing
                      Your Agreement To An End

                  

          

           

          Either
            of
            us can terminate your Agreement at the end date stated in it, or at the
            end of
            any extension or renewal period, by giving at least three months written
            notice
            to the other. However, if your Agreement, extension or renewal is for
            three
            months or less and one of us wishes to terminate it, the notice period
            is two
            months or if shorter one week less than the period stated in your Agreement,
            extension or renewal.

          

          
            	21	
                    Ending
                      Your Agreement Immediately

                  

          

           

          
            *you
              become insolvent, go into liquidation or become unable to pay your
              debts as they
              fall due,

          

          

          
            *you
              are
              in breach of one of your obligations which cannot be put right or which
              we have
              given you notice to put right and which you have failed to put right
              within
              fourteen days of that notice, or

          

          

          
            *your
              conduct, or that of someone at the business centre with your permission
              or at
              your invitation, is incompatible with ordinary office use.

          

          

          If
            we put
            an end to the Agreement for any of these reasons it does not put an end
            to any
            then outstanding obligations you may have and you must:

          

          *
            pay for
            additional services you have used

           

          *
            pay the
            standard fee for the remainder of the period for which your Agreement
            would have
            lasted had we not ended it, or (if longer) for a further period of three
            months,
            and

          

          *
            indemnify us against all costs and losses we incur as a result of the
            termination.

           

          
            	22	
                    If
                      The Business Centre Is Not
                      Available

                  

          

           

          In
            the
            unlikely event that we are no longer able to provide the services and
            accommodation at the business centre stated in your Agreement then your
            Agreement will end and you will only have to pay standard fees up to
            the date it
            ends and for the additional services you have used. We will try to find
            suitable
            alternative accommodation for you at another Regus/HQ business
            centre.

          

          
            	23	
                    When
                      Your Agreement Ends

                  

          

          

          *
            Upon
            your departure or if you, at your option, choose to relocate to a different
            accommodation within the business centre a flat fee (US 60 per workstation)
            will
            be assessed to cover the routine cost of repainting and redecorating
            the
            accommodation to return it to it’s original condition in addition to general
            maintenance to the common areas of the business centre in which you have
            had
            access. We reserve the right to charge additional reasonable fees for
            any
            repairs needed above and beyond normal wear and tear. If you leave any
            of your
            own property in the business centre we may dispose of it in any way we
            chose
            without owing you any responsibility for it or any proceeds of
            sale.

           

          *
            In
            order to transition your mail and telephone calls from the business centre,
            you
            will be automatically entered into a Virtual Office (“VO”) Agreement with us on
            our standard terms at the time for 3 months. Current contract terns and
            pricing
            can be obtained online or through your Regus/HQ General Manager.

          

          If
            you
            continue to use the accommodation when your Agreement has ended:

          

          *
            you are
            responsible for any loss, claim or liability we incur as a result of
            your
            failure to vacate on time.

          

          *
            we may,
            at our discretion, permit you an extension subject to a surcharge on
            the
            standard fee.

          

          
            	24	
                    Employees

                  

          

          

          While
            your Agreement is in force and for a period of six months after it ends,
            you
            must not solicit or offer employment to any of our current employees
            or anyone
            who has left our employment in the last 3 months. If you do, we estimate
            our
            loss at the equivalent of one year’s salary for each of the employees concerned
            and you must pay us damages equal to that amount.

           

          
            	25	
                    Notices

                  

          

           

          All
            formal notices must be in writing. Client is responsible to keep updated
            address
            of record at the centre.

           

          
            	26	
                    Confidentiality

                  

          

           

          The
            terms
            of your Agreement are confidential. Neither of us may disclose them without
            the
            other’s consent unless required to do so by law or an official authority. This
            obligation continues after your Agreement ends.

           

          
            	27	
                    Indemnities

                  

          

           

          You
            must
            indemnify us in respect of all liability, claims, damages, loss and expenses
            which may arise (except to the extent caused by our gross negligence
            or wilful
            misconduct).

          

          *
            If
            someone dies or is injured while in the accommodation you are using

          

          *
            From a
            third party in respect of your use of the business centre and the
            services.

          

          *
            If you
            do not comply with the terms of your Agreement

           

          You
            must
            also pay any cost, including reasonable legal fees, which we incur in
            enforcing
            your Agreement.

           

          
            	28	
                    Data
                      Protection

                  

          

          

          You
            agree
            that we may process, disclose or transfer to other countries which are
            part of
            our international network from time to time) any personal data which
            we hold on
            or in relation to you provided that in doing so we take such steps as
            we
            consider reasonable to ensure that it is used only to fulfil our obligations
            under your Agreement; for work assessment and fraud prevention; or to
            make
            available information about new or beneficial products and services offered
            by
            us and other organizations which we consider may be of interest to you.
            Please
            be aware that all countries may not have laws in force to protect your
            personal
            data.

           

          
            	29	
                    Applicable
                      Law:

                  

          

           

          Your
            Agreement is interpreted and enforced in accordance with the laws of
            the country
            in which the business centre in question is located. We both accept the
            exclusive jurisdiction of the courts of such jurisdiction where the centre
            is
            located.

           

          FEES

           

          In
            the
            following clauses any references to “fees” alone means all of the standard
            service fees, pay-as-you-use fees, the Business Services price, the Telecoms
            Service price and the Connectivity Service price. 

           

          
            	30	
                    Standard
                      Services

                  

          

           

          The
            standard fee, the Business Services price (if applicable), the Connectivity
            Service price (if applicable) and the Telecom Services price (if applicable)
            plus appropriate taxes and all other fees and charges, in accordance
            with our
            published rates which may change from time to time, are invoiced in respect
            of
            the services to be provided during the following month in advance in
            full on the
            25th day (or such other day as we designate) of each month. The charge
            for any
            such month will be 30 times the relevant fee. No refund will be given
            for months
            of less than 30 days nor will any additional charge be levied for months
            of more
            than 30 days. For a period of less than a month, the fees will be applied
            on a
            daily basis. You agree to pay promptly all (i) sales, use, excise and
            any other
            taxes, surcharges or license fees which you are required to pay to any
            governmental authority (and, at our request, will provide to use evidence
            of
            such payment), and (ii) any taxes paid by us attributable to your accommodation,
            including, without limitation, any gross receipts, rent and occupancy
            taxes,
            surcharge fees or tangible personal property taxes. Where client has
            agreed to
            participate in our Direct Debit Program, payment of fixed and variable
            charges
            will be made automatically through this mechanism. The Telecoms and Connectivity
            Service Packages are mandatory for the Shared Office and Hotdesk offering.
            Monthly fees and services that are paid by credit card will incur an
            administration charge.

           

          
            	31	
                    Pay-as-you-use
                      Services

                  

          

           

          Fees
            for
            pay-as-you-use services in accordance with our published rates, which
            may change
            from time to time, fees for Supplementary Services, plus tax (if applicable),
            are invoiced in arrears and payable on the 25th day (or such other day
            as we
            designate) of the month following the calendar month in which the additional
            services were provided.

           

          
            	32	
                    Service
                      Retainer

                  

          

           

          You
            will
            be required to pay a Service Retainer equivalent to 2 months standard
            service
            fee on entering into your Agreement. This will be held by us as security
            for
            performance of all your obligations under your Agreement. The Service
            Retainer,
            or any balance after deducting outstanding fees, three months VO fee
            for your VO
            Agreement, and other costs due to us, will be returned to you within
            30 days of
            the date you have settled your account with us in full. We may require
            you to
            pay an increased retainer if outstanding fees exceed the Service Retainer
            held
            or you frequently fail to pay us when due.

           

          
            	33	
                    Late
                      Payment

                  

          

           

          If
            you do
            not pay fees when due, a service fee of US25 plus 5% interest will be
            charged on
            all overdue balances under US 1,000 or a fee of US 50 plus 5% interest
            on all
            overdue balances will be charged on all overdue balances of US 1,000
            or greater.
            If you dispute a part of any invoice you must pay the amount not in dispute
            by
            the due date or be subject to late fees. The amount of interest and fees
            we
            charge will be the lesser of the amounts stated, or the country’s legally
            enforceable maximum, whichever is the lesser. We also reserve the right
            to
            withhold services (including for the avoidance of doubt, denying you
            access to
            your accommodation) while there are any outstanding fees and interest
            or you are
            in breach of your agreement. 

           

          
            	34	
                    Insufficient
                      Funds Fees

                  

          

           

          You
            will
            pay a fee of US 25 or the maximum amount permitted by law for the return
            of any
            payment for insufficient funds.

           

          
            	35	
                    Subordination

                  

          

           

          Your
            Agreement is subordinate to our lease with our landlord and to any other
            Agreements to which our lease with our landlord is subordinate.

           

          
            	36	
                    Annual
                      Increase

                  

          

          

          We
            will
            increase your current standard service fee on each and any annual anniversary
            of
            the start date of your Agreement by 4% or the CPI, whichever is greater,
            or such
            other broadly equivalent index which we substitute, over the previous
            year. This
            will only apply to Agreements that have an original start and end date
            constituting more than a 12 month term. Renewals do not fall under this
            category
            and will be reviewed as per clause 19 above.

           

          Client
            Initials __________________EXHIBIT
      10.20 

     

    EMPLOYMENT
      AGREEMENT BY AND BETWEEN NETSOL TECHNOLOGIES, INC. AND 

    PATTI
      L. W. MCGLASSON DATED MAY 1, 2006

    

    EMPLOYMENT
      AGREEMENT

     

    This
      EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into as of May 1,
      2006 (the "Effective Date"), by and between NetSol Technologies, Inc., a Nevada
      corporation (the "Company") and Patti L. W. McGlasson, 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 two 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 Secretary and General Counsel of the Company. 

    

    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 Secretary and General Counsel 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 she is required to perform pursuant to
      this
      Agreement at the Company's offices, located at its present or future locations
      in the State of California; 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 hers business
      energies, interest, abilities and productive time to the proper and efficient
      performance of her 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 her 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 her 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 One Hundred Ten Thousand Dollars
      ($110,000) 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.

    

    3.2 Executive's
      Base Salary and other compensation may be changed from time to time by mutual
      agreement of Executive and the Board and shall be evaluated on an at least
      annual basis by the Board of Director’s Compensation Committee.

    

    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 receive the standard vacation of 2 weeks per annum.

    

    3.7 Executive
      shall be granted stock options for 20,000 shares of the common stock of the
      Company (the "Options") pursuant to an option agreement (the "Option Agreement")
      issued pursuant to the Company’s 2004 Employee Stock Option Plan at the exercise
      price of $1.65 of which all options vest immediately; and 20,000 shares of
      the
      common stock of the Company (the “Options”) pursuant to an Option Agreement
      issued pursuant to the Company’s 2004 Employee Stock Option Plan at the exercise
      price of $2.25 of which all options vest immediately. The Option Agreement
      will
      have customary provisions relating to adjustments for stock splits and similar
      events. The Options as granted shall permit Executive (or, where applicable,
      his
      personal representative) up to eighteen (18) months following termination of
      employment for any reason to exercise any options which were vested at the
      time
      of such termination (including options vesting as the result of such
      termination, where applicable). 

    

    3.8
      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 4.1.4 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 her 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 her 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 her 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 without Good Reason or the Company shall terminate Executive's
      employment without Cause, 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 twelve (12) 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 twelve
      (12) 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; and,

    

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

     

    (v)
       
      in the
      event such termination occurs within twelve (12) months 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 and
      (b) a one-time payment equal to the higher of (i) Executive’s bonus for the
      previous year and (ii) one-half a percent of the Company’s consolidated gross
      revenues for the previous twelve (12) months (the “Change of Control Termination
      Payment”).

     

    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 60 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 full acceleration
      of
      the vesting of the then-unvested portion of the Options granted to Executive
      under Section 3.9 hereof and of any other options granted to Executive (or
      any
      restricted shares received upon early exercise). If Executive is terminated
      due
      to a Change In Control, Executive’s medical, disability and other benefits shall
      continue for a period of eighteen (18) 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.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    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.

    23091
      Calabasas Road, 2072

    Calabasas,
      CA 91302

    Attn:
      Chairman

    

    8.1.2 If
      to
      Executive:

    

    Patti
      L.
      W. McGlasson

    537
      Brookside Lane

    Sierra
      Madre, CA 91024

    

    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:	
               

            	 	By:	
            
	 	
              
Naeem
              Ghauri	 	 	
              
Najeeb
              U. Ghauri
	Its: 	Chief Executive
              Officer	 	 	Its: Chairman
              of the
              Board
	
            	 	 	
            
	
            	 	 	
            

    

     

    
      
        	
                EXECUTIVE:

              	 	 	 
	 	 	 	 
	 	 	 	 
	
                
Patti
                L. W. McGlasson	 	 	
              
	 	 	 	 	 
	
                Dated: May
                  1, 2006

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]