Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 56

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 56
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 approval of the issuance of such shares by its shareholders in accordance with the applicable stock exchange
rules or (ii) the average price paid for all shares of common stock issued under the ELOC Agreement (including Commitment Shares) is equal
to or in excess of a price equal to the lower of (A) the closing price on Nasdaq on May 15, 2025 and (B) the average of the closing prices
of the common stock for the five business days immediately preceding May 16, 2025, as calculated in accordance with the rules of Nasdaq,
such that the sales of such common stock to the Purchaser would not count toward the ELOC Exchange Cap because they would not be “below
market” under applicable stock exchange rules.

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In addition, the Purchaser is
not obligated to buy any shares of common stock pursuant to the ELOC Agreement if such shares of common stock, when aggregated with all
other common stock then beneficially owned by the Purchaser and its affiliates (as calculated pursuant to Section 13(d) of the Exchange
Act, and Rule 13d-3 promulgated thereunder), would result in the Purchaser beneficially owning common stock in excess of 4.99% of the
then-outstanding shares of common stock (the “Beneficial Ownership Limitation”), provided, however, the Purchaser may increase
the beneficial ownership limitation up to 9.99% at its sole discretion upon 61 days’ prior written notice to the Company. For the
avoidance of doubt, the beneficial ownership limitation in no event will exceed 19.99% of the number of shares of common stock outstanding
immediately after giving effect to the issuance of shares of common stock pursuant to the ELOC Agreement.

The net proceeds under the ELOC
Agreement to the Company will depend on the frequency and prices at which the Company sells shares of its stock to the Purchaser. The
Company expects that any proceeds received by the Company from such sales to the Purchaser will be used for working capital and other
general corporate purposes.

The Company has the right to terminate
the ELOC Agreement at any time, upon one business days’ notice, at no cost or penalty. During any “suspension event”
under the ELOC Agreement, the Purchaser does not have the right to terminate the ELOC Agreement; however, the Company may not initiate
any regular or other purchase of shares by the Purchaser, until such event of default