Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 69

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 69
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 of any one or more
awards. However, the Committee may not amend an award that would impair a participant’s rights under the award without the participant’s
written consent.

Forfeiture and Recoupment

Each award and the applicable participant’s
rights, payments and benefits with respect to an award are subject to reduction, cancellation, forfeiture or recoupment upon the occurrence
of the participant’s: (i) breach of a duty of confidentiality, (ii) competing with the Company, (ii) soliciting Company personnel
after employment is terminated, (iii) failure to assign any invention or technology to the Company if such assignment is a condition of
employment or any other agreements between the Company and the participant, (iv) being terminated for cause, (v) violating of the Company’s
insider trading policy, (vi) or engaging in other conduct that is detrimental to the business or reputation of the Company and/or its
affiliates as determined by the Board.

Clawback

Each award which is subject to recovery under any
law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to
be made pursuant to such law, government regulation or stock exchange listing requirement, or any policy adopted by the Company pursuant
to any of the foregoing.

Federal Income Tax Consequences of Awards

The following is a summary of U.S. federal income
tax consequences of awards granted under the 2021 Plan, based on current U.S. federal income tax laws. This summary does not constitute
legal or tax advice and does not address municipal, state or foreign income tax consequences.

Nonqualified Stock Options

The grant of a nonqualified stock option will not
result in taxable income to the participant. The participant will recognize ordinary income at the time of exercise equal to the excess
of the fair market value of the shares on the date of exercise over the exercise price and the Company will be entitled to a corresponding
deduction for tax purposes. Gains or losses realized by the participant upon the sale of the shares acquired on exercise will be treated
as capital gains or losses.

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Incentive Stock Options

The grant of an ISO will not result in taxable income
to the participant. The exercise of an ISO will not result in taxable income to the participant if at the time of exercise the participant
has been employed by the Company or its subsidiaries at all times beginning on the date the ISO was granted and ending not more than 90