Document:

Exhibit 4.1

 

DESCRIPTION OF SECURITIES

REGISTERED UNDER SECTION 12 OF THE SECURITIES
EXCHANGE ACT OF 1934

 

Capital Stock

 

Forward Industries, Inc. (the “Company”)
is authorized to issue (i) 40,000,000 shares of common stock, par value $0.01 per share (the “Common Stock”) and
(ii) 4,000,000 shares of “blank check” preferred stock, par value $0.01 per share, with such rights, preferences and
limitations as may be set by a resolution of the Board of Directors of the Company.

 

The Common Stock is registered pursuant
to Section 12(b) of the Securities Exchange Act of 1934.

 

The holders of Common Stock are entitled
to one vote per share on all matters submitted to a vote of shareholders, including the election of directors. There is no cumulative
voting in the election of directors. The directors of the Company are elected by a plurality of the votes cast by the shareholders.
On all other matters submitted to the shareholders, the affirmative vote of the majority of the votes cast for or against a proposal
shall be the act of the shareholders unless otherwise provided by New York Business Corporation Law (“NYBCL”) or the
bylaws of the Company. 

 

In the event of liquidation or dissolution,
the holders of Common Stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation
preferences of any outstanding shares of preferred stock. Holders of Common Stock have no preemptive rights and have no right to
convert their Common Stock into any other securities and there are no redemption provisions applicable to our Common Stock.

 

The holders of Common Stock are entitled
to any dividends that may be declared by the Board of Directors out of funds legally available for payment of dividends subject
to the prior rights of holders of preferred stock and any contractual restrictions we have against the payment of dividends on
Common Stock. We have not paid cash dividends on our Common Stock since 1987 and do not plan to pay dividends on our Common Stock
in the foreseeable future.

 

Certain Provisions of Our Charter and
Bylaws

 

Anti-takeover Provisions

In general, Section 912 of the NYBCL prohibits
a New York corporation with a class of voting stock subject to Section 12 of the Securities Exchange Act of 1934 from engaging
in a “business combination” with an “interested shareholder” for a five-year period following the time
that such shareholder becomes an interested shareholder, unless the business combination or such interested shareholder's acquisition
of the corporation’s voting stock is approved by the Board of Directors. An “interested shareholder” is defined
as any person or entity that currently owns 20% or more of the outstanding voting stock of the corporation or is an affiliate or
associate of the corporation and at any time within the five-year period immediately prior to the date in question was the beneficial
owner of 20% or more of the then outstanding voting stock the corporation. A “business combination” includes a merger
or consolidation, a sale, lease pledge or other disposition of assets, a stock issuance or transfer, a liquidation or dissolution,
a reclassification of securities, a recapitalization, or any transaction in which an interested shareholder benefits disproportionately
in relation to any other shareholder. Even if the interested stockholder waits five years, the business combination is prohibited
unless either:

 

		·	the business combination or the acquisition of stock by the interested stockholder was approved by the Board of Directors before
the interested stockholder acquired its 20% interest;

		·	the business combination is approved by a majority vote of all outstanding shares of stock not beneficially owned by the interested
stockholder or its affiliates or associates at a meeting held at least five years after the interested stockholder becomes an interested
stockholder; or

		·	the consideration paid for the business combination meets certain enumerated minimum amounts.

 

 

 

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Issuance of “Blank check”
Preferred Stock

 

As stated above the Board of Directors
may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or
other rights of the holders of Common Stock. The issuance of preferred stock, while providing flexibility in connection with possible
acquisitions and other corporate purposes could, under some circumstances, have the effect of delaying, deferring or preventing
a change in control of the Company.

 

Special Shareholder Meetings and Action
by Written Consent

 

Under our bylaws, special
meetings of the shareholders may be called by (i) the President, (ii) the Chairman of the Board of Directors, (iii) the Board of
Directors or (iv) shareholders holding at least 30% of all the votes entitled to be cast on any issue proposed to be considered
at the special meeting that have held their shares for at least six months prior to any such request for a special meeting.

 

Pursuant to Item 202(a), the information
regarding the Common Stock contained herein does not constitute a complete legal description of the Common Stock and is qualified
in all material respects by the provisions of the Company’s Certificate of Incorporation and bylaws, as filed with the Securities
and Exchange Commission.

 

 

 

 

 

 

 

 

 

 

 

    	 	2Exhibit 4.2

 

Amended
and restated Promissory Note

 

 

 

	U.S. $1,600,000	January 17, 2019

 

 

The undersigned maker,
Forward Industries Inc, a New York Corporation (“Borrower”) promises to pay to the order of Forward Industries
(Asia-Pacific) Corporation (“Lender”), at 101, Building 13, Bishui Laintian,, New Century Villas, Dongguan City,
Guandong Province, China, 523123, the principal sum of one million six hundred thousand Dollars (U.S. $1,600,000), together
with interest accruing thereon from the date hereof at the rate and time hereinafter provided.

 

Interest (computed
on the basis of a 360-day year for the actual number of days elapsed) on the outstanding balance of principal evidenced by this
Note shall accrue at a rate per annum (the “Applicable Interest Rate”) equal to eight percent (8%).

 

Interest only shall
be due and payable on February 18, 2018, and on the 18th day (or 17th on the maturity date) of each month
thereafter until January 17, 2019, at which time the entire principal and all accrued interest hereunder shall be immediately due
and payable in full.

 

The failure of Borrower
to pay to Lender promptly within five (5) days after written notice from Lender that amounts are due and payable under this Note
shall constitute an event or default under this Note. At any time after the occurrence of any such event of default, the indebtedness
evidenced by this Note and/or any note(s) or other obligation(s) which may be taken in renewal, extension, substitution or modification
of all or any part of the indebtedness evidenced thereby and all other obligations of Borrower to Lender howsoever created and
existing shall, at the option of the Lender in its sole discretion, immediately become due and payable without demand upon or notice
to Borrower, and Lender shall be entitled to exercise all remedies as provided by law and/or equity.

 

Borrower hereby waives
presentment for payment, demand, notice of dishonor and protest and agrees that (i) any collateral, lien or right of setoff securing
any indebtedness evidenced by this Note may, from time to time, in whole or in part, be exchanged or released, and any person liable
on or with respect to this Note may be released, all without notice to or further reservations of rights against Borrower, any
endorser, surety or guarantor and all without in any way affecting or releasing the liability of Borrower, any endorser, surety
or guarantor, and (ii) none of the terms or provisions hereof may be waived, altered, modified or amended except as Lender may
consent thereto in writing.

 

Borrower hereby agrees
to pay all out-of-pocket costs and expenses, including reasonable attorneys’ fees, incurred by Lender in the collection of
the indebtedness evidenced by this Note, in enforcing any of the rights, powers, remedies and privileges of Lender hereunder, or
in connection with any further negotiations, modifications, releases, or otherwise incurred by Lender in connection with this Note.
As used in this Note, the term “attorneys’ fees” shall mean reasonable charges and expenses for legal services
rendered to or on behalf of Lender in connection with the collection of the indebtedness evidenced by this Note at any time whether
prior to the commencement of judicial proceedings and/or thereafter at the trial and/or appellate level and/or in pre-judgment
and post-judgment or bankruptcy proceedings.

 

 

 

    
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In no event shall the
rate of interest charged under this Note exceed the rate that may legally be charged to Borrower for obligations of this nature
under the laws of the State of Florida, and any interest that may be paid in excess of the legal limit shall, at the option of
Lender, be refunded to Borrower or shall be applied towards payment of the principal obligation under this Note.

 

If any installment
of interest, principal or principal and interest shall become overdue for a period in excess of ten (10) days, in addition to such
payment, a “late charge” in the amount of five percent (5%) of such overdue payment shall be paid by Borrower to Lender
on demand for the purpose of defraying the expenses incident to handling such delinquent payments.

 

During the continuation
of any default by Borrower in the payment of any installment of interest, principal or principal and interest under this Note,
the interest rate provided herein shall be increased to a rate which shall be equal to the maximum rate of interest allowable under
the laws of the State of Florida. Venue of any litigation arising in connection with this Note shall be in Palm Beach County, Florida.

 

To the extent that
Lender receives any payment on account of any of Borrower’s obligations, and any such payment(s) or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside, subordinate and/or required to be repaid to a trustee,
receiver or any other person or entity under any bankruptcy act, state or federal law, common law or equitable cause, then, to
the extent of such payment(s) received, Borrower’s obligations or part thereof intended to be satisfied shall be revived
and continue in full force and effect, as if such payment(s) had not been received by Lender and applied on account of Borrower’s
obligations.

 

Borrower agrees that
this Note shall be deemed to have been made under and shall be governed by the laws of the State of Florida in all respects, including
matters of construction, validity and performance. If any provisions of this Note shall be deemed unenforceable under applicable
law, such provision shall be ineffective, but only to the extent of such unenforceability, without invalidating the remainder of
such provision or the remaining provisions of this Note. All of the terms and provisions of this Note shall be applicable to and
be binding upon each and every maker, endorser, surety, guarantor, all other persons who are or may become liable for the payment
hereof and their heirs, personal representatives, successors or assigns.

 

BORROWER AND LENDER
(BY ACCEPTING THIS NOTE) HEREBY MUTUALLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER BORROWER
OR LENDER AGAINST THE OTHER AND BASED UPON, ARISING OUT OF, OR IN CONNECTION WITH, THIS NOTE OR OTHER DOCUMENTS EXECUTED IN CONNECTION
WITH THE LOAN EVIDENCED BY THIS NOTE.

 

 

 

 

    
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        FORWARD INDUSTRIES, INC.

         

         

         

        By:___________________________________

        Name: Michael Matte

        Its: Chief Financial Officer

 

 

	STATE OF _________________	)	 
	 	) SS:	 
	COUNTY OF ________________	)	 

 

The foregoing Promissory
Note was acknowledged before me this _____ day of _______________, 20__, by ____________________, the _______________ of _______________

____________________________________, a
____________________, on behalf of the _______________, (    ) who is personally known to me OR (    ) who
produced ____________________________________________________________ as identification.

 

 

	 	____________________________________
	 	Notary Signature
	 	 
	 	____________________________________
	 	Print Notary Name
	 	 
	 	NOTARY PUBLIC
	 	State of _______________
at Large
	 	 
	 	My Commission Expires:

 

 

 

 

 

 

 

 

 

 

Promissory Note Signature Page

 

 

    
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