Company: FWDI
Filing Date: 2025-06-10
Form Type: PRE 14A
Source: 0001683168-25-004370
Chunk: 53

Company: Forward Industries, Inc.
Filing Date: 2025-06-10
Form: PRE 14A
Chunk 53
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 issue to the Purchaser, simultaneously with the delivery of any and all Purchase Shares purchased under the ELOC Agreement,
a number of shares of common stock equal to 1% of the Available Amount. (the “Commitment Shares” and, together with the Purchase
Shares, the “Securities”).

Concurrent with the execution
of the ELOC Agreement, the Company entered into a registration rights agreement with the Purchaser (the “Registration Rights Agreement”).
Pursuant to the Registration Rights Agreement, the Company agreed to file a registration statement on Form S-1 with the SEC covering the
resale of the Securities, on or before the 30th calendar day following the date of the Registration Rights Agreement and to use its commercially
reasonable efforts to cause such registration statement to be declared effective by the SEC at the earliest practicable date, subject
to limited exceptions described therein. The registration rights granted under the Registration Rights Agreement are subject to certain
conditions and limitations and are subject to customary indemnification and contribution provisions.

The Company did not have
a right to commence any sales of common stock to the Purchaser under the ELOC Agreement until the time when all of the conditions to
the Company’s right to commence sales of common stock to the Purchaser set forth in the ELOC Agreement had been satisfied, including
that a registration statement covering the resale of the Securities is declared effective by the Securities and Exchange Commission (the
“SEC”) and the final form of prospectus contained therein is filed with the SEC (the “Commencement Date”). The
Company filed a Registration Statement on Form S-1 covering the resale of up to 273,000 shares of common stock on June 10, 2025.

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Over the 36-month period from
and after the Commencement Date (unless the ELOC Agreement is terminated earlier in accordance with its terms), the Purchaser has no right
to require the Company to sell any shares of common stock to the Purchaser, but the Purchaser is obligated to make purchases as the Company
directs, subject to certain conditions. There are no upper limits on the price per share that the Purchaser must pay for shares of common
stock. Actual sales of shares of common stock to the Purchaser will depend on a variety of factors to be determined by the Company from
time to time, including, among others, market conditions, the trading price of the Company’s common stock and determinations by
the Company as to the appropriate sources of