Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 71

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 71
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 a corresponding
deduction. Any future appreciation will be taxed at capital gains rates. However, if the shares are later forfeited, the participant will
not be able to recover any taxes paid.

Restricted Stock Units

The grant of an RSU will not result in taxable income
to the participant. When the RSU is settled, the participant will recognize ordinary income equal to the fair market value of the shares
or the cash provided on settlement and the Company will be entitled to a corresponding deduction. Any future appreciation will be taxed
at capital gains rates.

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Section 409A

Section 409A of the Code imposes complex rules on
nonqualified deferred compensation arrangements, including requirements with respect to elections to defer compensation and the timing
of payment of deferred amounts. Depending on how they are structured, certain equity-based awards may be subject to Section 409A of the
Code, while others are exempt. If an award is subject to Section 409A of the Code and a violation occurs, the compensation is includible
in income when no longer subject to a substantial risk of forfeiture and the participant may be subject to a 20% penalty tax and, in some
cases, interest penalties. The 2021 Plan and awards granted under the 2021 Plan are intended to be exempt from or conform to the requirements
of Section 409A of the Code.

New Plan Benefits

The following New Plan Benefits Table sets forth the
benefits or amounts that have been approved and will be received by the listed individuals under the 2021 Plan Amendment, subject
to shareholder approval.

<div align='center'>NEW PLAN BENEFITS TABLE (1)</div>

| Name and Position | Dollar Value ($) | Number of Units |
| Sangita Shah      |                0 |          12,147 |
| Sharon Hrynkow    |                0 |          12,147 |
| Keith Johnson     |                0 |          12,147 |

(1) Represents options granted to non-executive
directors, which are exercisable at $6.37 per share. Exercisability is subject to shareholder approval of Proposal 6.

Recommendation of the Board

The Board recommends a vote “FOR”
the Amendment to the 2021 Equity Incentive Plan Proposal.

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<div align='center'>PROPOSAL 7. ADJOURNMENT</div>

General

The Company is asking its stockholders
to approve, if necessary, a