Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 70

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 70
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days before the date of exercise. However, the excess of the fair market value of the shares on the date of exercise over the exercise
price is an adjustment that is included in the calculation of the participant's alternative minimum tax liability for the year the shares
are sold.

If the participant does not sell the shares acquired
on exercise within two years from the date of grant and one year from the date of exercise then on the sale of the shares any amount realized
in excess of the exercise price will be taxed as capital gain. If the amount realized in the sale is less than the exercise price, then
the participant will recognize a capital loss.

If these holding requirements are not met, then the
participant will generally recognize ordinary income at the time the shares are sold in an amount equal to the lesser of (a) the excess
of the fair market value of the shares on the date of exercise over the exercise price, or (b) the excess, if any, of the amount realized
on the sale of the shares over the exercise price, and the Company will be entitled to a corresponding deduction.

Stock Appreciation Rights

The grant of a SAR will not
result in taxable income to the participant. The participant will recognize ordinary income at the time of exercise equal to the amount
of cash received or the fair market value of the shares received and the Company will be entitled to a corresponding deduction for tax
purposes. If the SARs are settled in shares, then when the shares are sold the participant will recognize capital gain or loss on the
difference between the sale price and the amount recognized at exercise. Whether it is a long-term or short-term gain or loss depends
on how long the shares are held.

Restricted Stock and Performance Shares

Unless a participant makes an election to accelerate
the recognition of income to the grant date (as described below), the grant of restricted stock or performance shares awards will not
result in taxable income to the participant. When the restrictions lapse, the participant will recognize ordinary income on the excess
of the fair market value of the shares on the vesting date over the amount paid for the shares, if any, and the Company will be entitled
to a corresponding deduction.

If the participant makes an election under Section
83(b) of the Code within thirty days after the grant date, the participant will recognize ordinary income as of the grant date equal to
the fair market value of the shares on the grant date over the amount paid, if any, and the Company will be entitled to