Company: FWDI
Filing Date: 2025-06-10
Form Type: PRE 14A
Source: 0001683168-25-004370
Chunk: 21

Company: Forward Industries, Inc.
Filing Date: 2025-06-10
Form: PRE 14A
Chunk 21
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On May 16, 2025, the Company
and Forward Industries (IN), Inc., a wholly-owned subsidiary of the Company entered into a Transaction Agreement with Forward China, a
company owned by Terence Wise, who at the time served as the Company’s Chairman of the Board and Chief Executive Officer. Pursuant
to the Transaction Agreement, the Company sold its wholly-owned subsidiary, Forward Industries (Switzerland) GmbH and certain other assets
related to the Company’s discontinued Original Equipment Manufacturer business to Forward China to satisfy outstanding payables
of approximately $4,100,000 due to Forward China under that certain Buying Agency and Supply Agreement between the Company and Forward
China (the “Agency Agreement”). Additionally, as part of the Agreement, (i) the Company and Forward China terminated the Agency
Agreement and (ii) the Company and Forward China extended the maturity date of that certain Promissory Note dated January 18, 2018 (as
amended) issued by the Company to Forward China to December 31, 2025. The Company paid $200,000 to Forward China at closing and agreed
to make additional cash payments of $150,000 on each of July 31, 2025, August 29, 2025 and September 30, 2025. In connection with the
Transaction Agreement, the Company and Mr. Wise entered into a separation agreement. The Transaction Agreement was approved by a Special
Committee of the Board (“Special Committee”), comprised of directors who were both independent and disinterested directors,
established to evaluate the transaction. To assist with the process, the Special Committee engaged legal counsel and CoView Capital, Inc.
(“CoView”), as its exclusive financial adviser. In connection with the transaction, CoView approached numerous potential alternative
acquirers who declined to provide an offer for the business and delivered a written opinion to the Special Committee, dated May 16, 2025,
to the effect that, as of such date and based upon and subject to the various assumptions made, procedures followed, matters considered
and limitations on the methodologies employed in preparing the opinion, the consideration to be paid in the transaction was fair, from
a financial point of view, to the Company’s shareholders.

<div align='center'>Compensation of Directors Table 2024</div>

In fiscal 2024, our non-employee
directors were compensated for as follows:

| Name (a)         |     | Fees              
 Earned or Paid in