Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 124

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1
Chunk 124
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 otherwise combine or merge with another publicly-traded digital asset treasury company, (ii) privately offered equity securities
and (iii) non-publicly traded convertible debt instruments). Title to the account and all account assets will be held in our name. The
Asset Manager is not authorized to act as custodian of our assets, nor to take possession or title to any assets.

As compensation for the Asset
Manager’s services, we will pay management fees of 0.6% per annum of the value of the Account Assets (as defined in the Asset Management
Agreement). In addition, the Asset Manager is authorized to appoint an affiliate to stake some or all of the SOL purchased for, maintained
in the account, or otherwise owned or controlled by the Company. Such Asset Manager affiliate will be entitled to mutually agreed upon
staking-based fees, subject to certain parameters according to a schedule set forth in the Asset Management Agreement. The Asset Manager
is otherwise responsible for all of its overhead costs and the custody fees of any custodian selected by the Asset Manager, and the Company
will pay or reimburse the Asset Manager for all reasonable and documented expenses related to the operation of the account.

The Asset Management Agreement
has an initial term of three years and renews for successive one-year renewal periods unless the Company or the Asset Manager terminates
or elects not to continue effectiveness of the Asset Management Agreement. The Asset Management Agreement may be terminated by either
party without cause after the initial term or any subsequent renewal period upon ninety (90) days’ notice prior to the expiration
of such term. In addition, at any time, the Asset Management Agreement may be terminated either for cause or upon certain acts of insolvency,
each as described therein. While the Asset Manager is the exclusive asset manager for the Company, the Asset Manager may nonetheless provide
similar services to other clients, and the Asset Manager or its affiliates may engage in transactions for their own accounts. The Asset
Management Agreement contains customary representations, warranties, confidentiality, indemnification and limitation of liability provisions,
and is governed by the laws of the State of New York.

     F-35 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

During Fiscal 2025, the Company
incurred fees of $535,000 related to the Asset Management Agreement, which were recorded on the consolidated financial statements as a
component of related party expenses and related party payables at and for the fiscal year ended