Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 63

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 63
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 it must maintain competitive
compensation programs to continue to attract, motivate, and retain the types of employees, consultants and directors who will contribute
to the Company's short-term financial performance and long-range success. The Company also believes that the 2021 Plan Amendment will
allow it to continue to utilize a balanced approach to compensation by using a combination of salaries, performance-based bonuses, and
long-term equity incentives. The compensation structure encourages management to make decisions that favor the Company’s future
stability and profitability, rather than short term results.

Set forth below is a summary of the 2021 Plan, which
is qualified in its entirety by reference to the full text of the 2021 Plan Amendment, a copy of which is included as Annex D to
this Proxy Statement and the full text of the 2021 Plan as originally approved by the shareholders, a copy of which is included as Annex E to this Proxy Statement and which is included in the Company’s Proxy Statement on Schedule 14A filed with the SEC on December
29, 2020. If there is any inconsistency between the following summary of the 2021 Plan and the 2021 Plan Amendment and the full text,
the full text shall govern.

Material Terms of the 2021 Plan

The following summary of the material terms of the
2021 Plan is qualified in its entirety by the full text of the 2021 Plan. You also may obtain a copy of the 2021 Plan, free of charge,
by writing to the Company, Attention: Corporate Secretary, 700 Veterans Memorial Hwy, Suite 100, Hauppauge, New York 11788.

Effective Date; Duration of the 2021 Plan

If approved, the 2021 Plan Amendment will become effective
as of the date on which the 2021 Plan Amendment is approved by our shareholders. The 2021 Plan became effective on February 16, 2021,
and will continue in effect until the tenth anniversary of the date it was approved by shareholders, unless terminated by the Board.

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Plan Administration

The 2021 Plan will continue to be administered by
the Committee or, in the Board’s sole discretion by the Board. The Committee will continue to have the authority to, among other
things, interpret the 2021 Plan, determine who will be granted awards under the 2021 Plan, determine the terms and conditions of each
award, and take action as it determines to be necessary or advisable for the administration of the