Company: FWDI
Filing Date: 2025-06-10
Form Type: PRE 14A
Source: 0001683168-25-004370
Chunk: 56

Company: Forward Industries, Inc.
Filing Date: 2025-06-10
Form: PRE 14A
Chunk 56
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LOC Agreement if such shares of common stock, when aggregated with all
other common stock then beneficially owned by the Purchaser and its affiliates (as calculated pursuant to Section 13(d) of the Exchange
Act, and Rule 13d-3 promulgated thereunder), would result in the Purchaser beneficially owning common stock in excess of 4.99% of the
then-outstanding shares of common stock (the “Beneficial Ownership Limitation”), provided, however, the Purchaser may increase
the beneficial ownership limitation up to 9.99% at its sole discretion upon 61 days’ prior written notice to the Company. For the
avoidance of doubt, the beneficial ownership limitation in no event will exceed 19.99% of the number of shares of common stock outstanding
immediately after giving effect to the issuance of shares of common stock pursuant to the ELOC Agreement.

The net proceeds under the ELOC
Agreement to the Company will depend on the frequency and prices at which the Company sells shares of its stock to the Purchaser. The
Company expects that any proceeds received by the Company from such sales to the Purchaser will be used for working capital and other
general corporate purposes.

The Company has the right to terminate
the ELOC Agreement at any time, upon one business days’ notice, at no cost or penalty. During any “suspension event”
under the ELOC Agreement, the Purchaser does not have the right to terminate the ELOC Agreement; however, the Company may not initiate
any regular or other purchase of shares by the Purchaser, until such event of default is cured. In addition, in the event of bankruptcy
proceedings by or against the Company, the ELOC Agreement will automatically terminate in accordance with the terms of the ELOC Agreement.

Impact on Shareholders of Approval or Disapproval of this Proposal

If this proposal is approved,
existing shareholders will suffer dilution in ownership interests as a result of the issuance of shares of common stock pursuant to the
ELOC Agreement. For example, assuming the issuance of all of the Purchase Shares remaining to be sold under the ELOC Agreement, the Purchaser
would collectively own approximately [__] shares of common stock, assuming the shares to be issued are sold at a price of $_____per share
(the closing price on the record date), without giving effect to the Beneficial Ownership Limitation. Such shares would constitute approximately
[__]% of the outstanding common stock as of the record date. Because