Document:

Exhibit 10-9

 

 

AMENDMENT TO EMPLOYMENT AGREEMENT

AMENDMENT
TO EMPLOYMENT AGREEMENT (this "Amendment"), dated as of the 1st
day of January, 2008, between Forward Industries, Inc., a New York corporation
having its principal offices at 1801 Green Road, Suite E, Pompano Beach,
Florida 33064 (the "Company"), and Douglas W. Sabra, residing at 7441
Brunswick Circle, Boynton Beach FL 33437 ("Executive").

W I T N E S S E T H:

WHEREAS,
Executive has been rendering services to the Company pursuant to an employment
agreement between the Company and Executive dated as of December 27, 2005, effective
as of October 1, 2005, (the "Prior Agreement", which as modified by
this Amendment, is referred to herein as the “Amended Agreement”);

WHEREAS,
Executive has been appointed Chief Executive Officer of the Company and it desires
to employ Executive to perform such senior executive and other services for the
Company consistent with this position and to amend the Executive’s terms of
employment in connection therewith upon terms of compensation recommended by
the Compensation Committee (as hereinafter defined) and approved by the Board;

WHEREAS,
Executive agrees to accept such employment upon the amended terms and
conditions, and the parties agree that the Prior Agreement shall be amended in
accordance with the terms of this Amendment;

 

 

 

NOW,
THEREFORE, in consideration of the mutual covenants herein contained and
other good and valuable consideration, the receipt of which the parties hereby
acknowledge, the parties agree as follows:

 1.        
EMPLOYMENT AND DUTIES

On the terms
and conditions set forth herein and in the Prior Agreement, the Company hereby
employs Executive as its Chief Executive Officer for the term of the Amended Agreement,
and Executive hereby accepts such employment.

2.        
SERVICES

(a)       
Executive shall perform such duties of a senior executive nature for the
Company, as shall be consistent with the provisions of the Company's By-laws in
effect on the date hereof, subject to the direction of its Board of Directors
(the "Board").  Executive shall serve the Company faithfully and
to the best of his ability and shall devote his full business time and
attention to the business and affairs of the Company, subject to reasonable
absences for vacation and illness as determined by the Compensation Committee
of the Board (the "Compensation Committee").  Executive will not
engage, directly or indirectly, in any other business or occupation during the
Employment Term. It is understood, however, that the foregoing will not
prohibit the Executive from (i) engaging in personal investment activities for
himself and his family as have been or may hereafter be approved by the Board,
(ii) accepting directorships unrelated to the Company, subject to the prior,
written approval of the Compensation Committee, and (iii) engaging in
charitable and civic activities, so long as any one or more such outside
interests set forth in clauses (i), (ii) and (iii) hereof do not interfere with
or affect the performance of his duties hereunder in any material respect.

 

 

 

3.        
COMPENSATION 

(a)       
Salary.  Executive shall be entitled to receive for all services
rendered by Executive in any and all capacities in connection with his
employment hereunder a salary (as it may be adjusted, "Salary") of $250,000
per annum effective from the date of this Agreement, payable in equal
installments in accordance with the prevailing practices of the Company (but
not less frequently than monthly). 

(b)       
Bonus.  The Executive shall be eligible to receive a bonus ("Bonus")
with respect to each full fiscal year or (except to the extent expressly
provided in Sections 5(c) (solely with respect to the last paragraph thereof),
6, or 8 of the Prior Agreement) part thereof in respect of his employment
hereunder, as set forth in this Section 3.  

(c)       
Calculation and Payment of Bonus.  The amount of Bonus, if any,
that Executive may earn with respect to the fiscal year ending September 30,
2008 (“Fiscal 2008”), shall be equal to the product of (i) three percent (0.03)
and (ii) the amount, if any, of pre-tax income of the Company for Fiscal 2008,
exclusive of “other income”, .

Pre-tax
income is defined for purposes hereof as the Company's consolidated net income,
after giving effect to bonuses paid to employees (including executive officers)
but before extraordinary items (whether contributions to or deductions from net
income), less other income, plus income taxes, all as determined by reference
to the results of operations set forth in the Company's audited financial statements
in respect of Fiscal 2008.  

 

 

 

4.        
EFFECT ON PRIOR AGREEMENT

The parties
hereto hereby agree that, on and as of the date hereof, (a) the Prior Agreement
shall be, and it hereby is, amended in accordance with the terms of this
Amendment, (b) the terms and conditions of this Amendment supersede any
inconsistent terms and conditions of the Prior Agreement, and (c) all other
terms and conditions of the Prior Agreement shall remain in full force and
effect.

IN
WITNESS WHEREOF, the parties have executed this Amendment as of the 1st day
of January 2008. 

	
  DOUGLAS W. SABRA 

  	
   

  	
  FORWARD INDUSTRIES, INC.

  
	
   

  	
   

  	
   

  
	
  /s/ DOUGLAS W. SABRA

  	
  By:

  	
  /s/ James O. McKenna

  
	
   Executive

  	
   

  	
       Name: 
  James O. McKenna

       Title:    Chief Financial
  OfficerExhibit 10.10

 

 

 

SEVERANCE AND RELEASE AGREEMENT

 

            This Severance and Release Agreement
(this “Agreement”) is entered into as of this 31st day of December, 2007, by
and between Michael M. Schiffman, residing at 22153 Larkspur Trail, Boca Raton,
Florida 33433 ("Executive" or “you”), and Forward Industries, Inc., a
New York corporation (“Forward”) having its principal offices at 1801 Green
Road, Suite E, Pompano Beach, Florida 33064 (Forward, together with its
wholly-owned subsidiaries Forward Innovations, Koszegi Industries, Inc., and
Koszegi, Asia, Ltd., are referred to herein as the "Company").

 

RECITALS:

 

Executive has
been continuously employed by the Company as an executive since 1992;

 

Executive has
served as director of Forward since 1992;

 

Executive has been party to employment agreements with
Forward whereby he has been employed as its President and Chief Operating
Officer commencing 1998, as such agreement was extended and renewed in January
2001, April 2003, and again in December 2005 (the agreement dated as of
December 27, 2005, is referred to herein as the “Prior Agreement”); 

 

In such executive capacities Executive has had access to
confidential and valuable non-public information relating to the Company’s
customer lists, supplier lists, sourcing and pricing know-how, other
non-public, proprietary information relating to product pricing, product
proposals, product design proposals, product sourcing information, and other
information relating to the Company Business, as defined herein;

 

The Company and Executive have mutually agreed that
Executive will not continue his employment by the Company in the capacities
under the Prior Agreement, and the Company has agreed to the payment,
confirmation of benefits, and grant of Executive Release (as defined herein) set
forth in paragraphs 1, 3 and 4, respectively, hereof in consideration of the
Release and covenants in this Agreement; and

 

This Severance and Release Agreement will govern all
aspects of the termination and severance arrangements between Executive and the
Company arising out of or relating to the Prior Agreement and, as hereinafter
set forth, shall supersede any provisions thereof that are inconsistent with
this Agreement, the inconsistent terms of the Prior Agreement being null and
void:

 

In consideration of the foregoing, and in consideration of
the obligations undertaken and benefits received pursuant to the Prior
Agreement, the parties hereto agree as follows:

 

	
		

	
	 

  

 

1.  Consideration.  In consideration for
Executive to execute and perform this Agreement,
the Company agrees to pay Executive on the Effective
Date  $[162,500.00 (one hundred sixty-two thousand five hundred US Dollars)
(less applicable withholding and payroll taxes) and to grant the Executive Release.  Capitalized terms used in the Prior Agreement that are
not otherwise defined herein shall have the meanings ascribed to such terms
when used in this Agreement.  The parties hereto confirm the survival of Sections
10(a), (c), (d), and (e), 11, and 12 of the Prior
Agreement.

 

2.  Release.  This Release of Claims (the “Release”)
is entered into by you as a condition precedent to receiving the severance and
severance related benefits herein.  In exchange for the receipt of the
severance and severance related benefits, you for yourself, your heirs and
assigns and anyone else acting on your behalf, hereby voluntarily, knowingly
and irrevocably and forever discharge the Company, each of its subsidiaries,
and their respective successors, as well as their respective present, former,
and future officers, directors, shareholders, employees, and agents, in both
their individual and representative capacities, and each of their heirs and
assigns (the “Releasees”) from all actions, claims, demands, causes of actions,
obligations, damages, liabilities, expenses and controversies of any nature
whatsoever, whether known or not now known or suspected, which you had, have or
may have against the Releasees from the beginning of time up to and including
the date you sign this Release (the “Waived Claims”). The Waived Claims that
you forever and irrevocably give up and release when the Release becomes
Effective  include, but are not limited to, all claims related to (i)  your
employment at each of the Company and its subsidiaries or the termination of
your employment, (ii)  statements, acts or omissions by the Releasees, (iii) 
any express or implied agreement between you and the Releasees, (iv)  wrongful
discharge, defamation, slander, breach of express or implied contract,
negligent and/or intentional misrepresentation or infliction of emotional
distress, breach of an implied covenant of good faith and fair dealing, claims
of intentional or negligent interference  with economic, employment, or
contractual rights or promissory estoppel, (v)  any federal, state, or local
law or regulation prohibiting discrimination in employment or otherwise
regulating employment, including but not limited to, the Age Discrimination in
Employment Act of 1967, as amended (ADEA), the Older Worker Benefit Protections
Act,  the Equal Pay Act of 1963, Title VII of the Civil Rights Acts of 1964, as
amended,  the Civil Rights Act of 1991, the Family Medical Leave Act of 1993
(FMLA), the Americans with Disabilities Act of 1990 (ADA), the Worker
Adjustment and Retraining Notification Act, the Fair Labor Standards Act of
1938, as amended, the Employee Retirement Income Security Act of 1974 (ERISA),
as amended, 42 U.S.C. Sections 1981 through 1988, the Consolidated Omnibus
Reconciliation Act of 1986 (COBRA) the New York State Human Rights Law and the New
York City Human Rights Act, (vi) any claim for wages, commissions, bonuses,
incentive compensation, vacation pay, employee benefits (except as set forth in
paragraph 3 of this Release), expenses or allowances of any kind, or any other
payment or compensation, according to the terms of each of those plans. You are
not waiving any claims with respect to your rights to enforce this Agreement.
You are not waiving or releasing any rights or claims that may arise after the
date that you sign this Release.

 

3.  Termination and Severance Benefits. The Release
does not affect your vested rights and eligibility for benefits under the
Company 401(k) Plan, or any other employee benefit plan covered by ERISA (other
than a severance plan). Eligibility for benefits under these plans is
determined by the applicable plan documents.  The Release does not affect your
right to reimbursement of expenses incurred but not reimbursed prior to the
date you sign the Release, subject to the Company’s expense reimbursement
policies.  In addition, this Release does not affect your right to
post-retirement medical coverage as applicable.  In particular, this Agreement
and the Release shall not affect your right to the
payment provided in Section 1 or the Executive Release.

 

	
		

	
	 

  

4.  Release.  This Executive Release of Claims (the
“Executive Release”) is entered into by the Company in consideration of
Executive entering into and performing this Agreement.  In exchange for
Executive’s performance of the terms of this Agreement and grant of the
Release, Forward, for itself, its subsidiaries, and their respective successors
and assigns, subject to the last sentence of paragraph one hereof and the accuracy
of the representations set forth in paragraph 6 hereof, hereby voluntarily,
knowingly and irrevocably and forever discharges Executive from all actions,
claims, demands, causes of actions, obligations, damages, liabilities, expenses
and controversies of any nature whatsoever, whether known or not now known or
suspected, which it had, have or may have against the Executive in his capacity
as executive officer from the beginning of time up to and including the Effective
Date of this Agreement (the “Executive Waived Claims”). The Executive Waived
Claims that the Company and its subsidiaries forever and irrevocably give up
and release when the Executive Release becomes Effective  include, but are not
limited to, all claims related to (i)  Executive’s employment at each of the
Company and its subsidiaries or the termination of said employment, (ii)  statements,
acts or omissions by Executive, (iii)  any express or implied agreement between
the Company and its subsidiaries and you, other than agreements that by their
terms survive the Prior Agreement, and (iv) defamation, slander, breach of
express or implied contract, negligent and/or intentional misrepresentation or
infliction of emotional distress, breach of an implied covenant of good faith
and fair dealing. By entering into this Agreement or granting this Executive
Release neither Forward nor any subsidiary hereby waives any claim with respect
to its rights to enforce this Agreement. Neither the Company nor any subsidiary
waives or releases any rights or claims that may arise after the date that it
executes this Release.

 

5.  No
suit. You represent and warrant that as of the date you enter into this
Agreement, you nor anyone acting on your behalf has made or filed, commenced,
maintained, prosecuted or participated in any action, suit, charge, grievance,
complaint or proceeding of any kind against the Company, any subsidiary
thereof, and/or Releasees in any federal, state or local court, agency or
investigative body.  You acknowledge that based on the foregoing, you hereby
waive all relief available to you, including, without limitation, monetary
damages, attorney’s fees and costs, equitable relief and reinstatement, under
any claims released pursuant to paragraph 2 above.

 

6.  Representations.
You acknowledge and agree that:

(a)          You have read and fully understand the legal effect and binding nature of the
promises and obligations contained in this Agreement;

(b)          You are signing this Agreement freely and voluntarily;

 

	
		

	
	 

  

(c)          You have been advised to consult with legal counsel, at your own expense,
before signing the Agreement;

(d)          You are receiving benefits as a condition to signing this Agreement and the
Agreement becoming Effective that you would not otherwise be entitled to
receive but for the Agreement becoming Effective;

(e)              You have not,
during the term of your employment under the Prior Agreement or thereafter
performed any act, or directed any other person or entity to perform any act on
your or their behalf, the intended or proximate result of which would
constitute a violation of the terms referred to or set forth in Section 7 of
this Agreement, nor are there any agreements, arrangements, or understandings,
written or oral, that would, if performed or acted upon, constititue such a
violation. 

(f)           There are no promises or representations that have been made to you to sign
this Agreement except those that are included in this Agreement;

(g)           You will have had a period of five (5) days from the date of receipt of this
Agreement to consider it. After you sign the Agreement by sending a written
notice of revocation via overnight mail or hand delivery to:

 

James O.
McKenna

c/o Forward
Industries, Inc.

1801 Green
Road, Suite E,

Pompano
Beach, FL 33064

 

 

(g)               
This Agreement will be “Effective” on the eighth (8th) day after you sign it
unless earlier revoked. 

 

7.  Covenants Under Prior Agreement.  You further
acknowledge and agree that the Confidentiality, Non-Solicitation, Separability,
and Specific Performance provisions in Sections 10(a), 10(c), 10(d), 11, and 12
of the Prior Agreement are hereby reaffirmed and shall survive the termination
of your employment for whatever reason, and continue as set forth in the Prior
Agreement.  Section 10(b) of the Prior Agreement is
superseded in its entirety and replaced with the following: 

Commencing on the date of this Agreement and expiring on
December 31, 2008, Executive
shall not, without the express prior written consent of the Company, directly
or indirectly, either individually or as an employee, officer, director, agent,
partner, shareholder, consultant, option holder, joint venturer, contractor,
nominee, lender of money, guarantor or in any other capacity: own (or have any
financial interest in, actual, contingent, future, or otherwise), control, manage,
operate, participate, engage in, invest in or otherwise have any interest in or
through, or otherwise be connected with, in any manner, any firm, company,
corporation, organization, associate, business, enterprise, venture or other
entity, association or person that does or proposes to do any one or more of
the following as it relates to of the Company Business (as hereinafter defined): (a)(i) engage in, do, or solicit
business with, or (ii) interfere with or affect the Company’s business
opportunities with any of the
customers with whom the Company has done business with during the most recent two calendar years or (b)(i)  engage
in, do, or solicit business with or (ii) interfere with or
affect the Company’s business opportunities with  any
of the vendors with whom the Company has done business with during the most
recent two calendar years.  The “Company Business” shall
mean the business of designing, manufacturing, procuring the supply or
manufacture of, sourcing, selling, re-selling, and/or distributing of carrying
or portable cases or cover plates and related carry case accessories supplied
to the cellular telephone, portable medical equipment, laptop computer,
photography, video or audio industries. Nothing in this paragraph shall be
deemed to prohibit Executive from the acquisition or holding of, solely as a
passive stockholder, not more than one percent (1%) of the shares or other
securities of a publicly-owned corporation if such securities are traded on a
national securities exchange or the NASDAQ Stock Market.

 

	
		

	
	 

  

 

8.  Non-Disparagement. 
You agree that you will not make disparaging remarks about Forward, any of its
subsidiaries, or their officers, or directors in their individual and
representative capacities, or the Company Business. Forward and its
subsidiaries will not, and they shall cause their respective officers and
directors not to, make disparaging remarks about you.  None of the parties
to this Agreement will issue or cooperate with issuance of any article,
memorandum, release, interview, publicity, or statement, whether oral or
written of any kind, to the public, the press or the media, which in any way
concerns in a disaparaging, offensive, or prejudicial manner the other party,
including any accusation of impropriety or unlawful conduct made directly or by
authorizing others to make such accusations. “Disparaging remarks” when used in
this Agreement shall mean the publication of matter that is untrue or adversely
affects the subject’s reputation, image or good will, or is designed to induce
others not to do business with you, Forward, or any of its subsidiaries, as the
case may be. This subparagraph will not be construed to prevent you from
complying with any lawfully served and binding subpoena, provided however, that
you forward a copy of said subpoena(s) to the Company within seventy-two (72)
hours of receipt of the same, unless expressly prohibited by law from doing so.

 

9. 
Equitable Relief.  You agree that the violation of the obligations in
paragraphs 7 and 8 would be a material breach of this Agreement, and the
Company shall have no adequate remedy at law and will be able to enforce these
obligations by seeking an injunction, including without limitation an ex parte
preliminary and/or temporary restraining order, and such other relief as may be
deemed just and proper, including monetary damages. 

 

10. 
Cooperation.  You agree that you will cooperate with Forward,
its subsidiaries, and each of their respective attorneys or other legal
representatives (“Company attorneys”) in connection with any claim, litigation,
or judicial or arbitral proceeding which is now pending or may hereinafter be
brought against Forward or any of its subsidiaries by any third party. Your
duty of cooperation shall include, but not be limited to (i) meeting with 
Company attorneys by telephone or in person, at mutually convenient times and
places,  in order to state truthfully your knowledge of matters at issue
and recollection of events; (ii) appearance by you (that does not conflict with
the needs or requirements of your then current employer or occupation) as a
witness at depositions or trials, without necessity of a subpoena, in order to
state truthfully your knowledge of matters at issues; and (iii) signing, upon
the request of Company attorneys, declaration or affidavits that truthfully
state matters of which you have knowledge.  The Company shall promptly
reimburse you for your actual and reasonable travel or other expenses that you
may incur in complying with your obligations pursuant to this paragraph.

 

 

	
		

	
	 

  

 

11.  Law Governing.  Agreement shall be deemed to
have been made within the State of New York, and shall be interpreted and
construed and enforced in accordance with the law of the State of New York and
before the courts of the State of New York.  This Agreement is not an admission
of any liability or wrongdoing by you, the Company and/or any Releasee.

 

12.  Return of Property.  You acknowledge that by
executing this Agreement that you have returned to the Company all property and
all copies of Confidential Information belonging or pertaining to, or arising
out of your employment by, the Company or any of its subsidiaries , as defined
in Section 10(d) of the Prior Agreement, in your custody or possession.

 

13.  No Reinstatement.  By  entering into this
Agreement, you acknowledge that you (i)  waive any claim to reinstatement
and/or future employment with the Company and (ii)  are not and shall not be
entitled to any payments, benefits or other obligations from the Company or any
subsidiary thereof whatsoever (except as expressly set forth herein).

 

Your signature below acknowledges that you knowingly and
voluntarily agree to all of the terms and conditions contained in this
Agreement.

 

 

 

           
Agreed to and Accepted this 28th day of January , 2008

 

 

/s/Michael
M. Schiffman

Michael M.
Schiffman

 

 

FORWARD
INDUSTRIES, INC.

(on its own
behalf and behalf of each

subsidiary
thereof)

 

/s/Douglas
W. Sabra

By: Douglas
W. Sabra

President
and Chief Executive Officer

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