Document:

Exhibit 10.6

 

ASSET REPRESENTATIONS REVIEW AGREEMENT

 

among

 

HONDA AUTO RECEIVABLES 20[ ]–[ ] OWNER TRUST,

as Issuer,

 

AMERICAN HONDA FINANCE CORPORATION,

as Sponsor and Servicer

 

and

 

[                       ],

 

as Asset Representations Reviewer

 

Dated as of [           ]

 

     

     

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	ARTICLE I	USAGE AND DEFINITIONS	1
	 	Section 1.1.	 	Usage and Definitions	1
	 	Section 1.2.	 	Additional Definitions	2
	ARTICLE II	ENGAGEMENT OF ASSET REPRESENTATIONS REVIEWER	2
	 	Section 2.1.	 	Engagement; Acceptance	2
	 	Section 2.2.	 	Confirmation of Scope	3
	ARTICLE III	ASSET REPRESENTATIONS REVIEW PROCESS	3
	 	Section 3.1.	 	Review Notices	3
	 	Section 3.2.	 	Identification of Subject Receivables	3
	 	Section 3.3.	 	Review Materials	3
	 	Section 3.4.	 	Performance of Reviews	3
	 	Section 3.5.	 	Review Reports	4
	 	Section 3.6.	 	Limitations on Review Obligations	5
	ARTICLE IV	ASSET REPRESENTATIONS REVIEWER	5
	 	Section 4.1.	 	Representations and Warranties	5
	 	Section 4.2.	 	Covenants	6
	 	Section 4.3.	 	Fees, Expenses and Indemnities	7
	 	Section 4.4.	 	Limitation on Liability	8
	 	Section 4.5.	 	Indemnification by Asset Representations Reviewer	8
	 	Section 4.6.	 	Indemnification of Asset Representations Reviewer	8
	 	Section 4.7.	 	Inspections of Asset Representations Reviewer	9
	 	Section 4.8.	 	Delegation of Obligations	9
	 	Section 4.9.	 	Confidential Information	9
	 	Section 4.10.	 	Personally Identifiable Information	11
	ARTICLE V	RESIGNATION AND REMOVAL; SUCCESSOR ASSET REPRESENTATIONS REVIEWER	13
	 	Section 5.1.	 	Eligibility Requirements for Asset Representations Reviewer	13
	 	Section 5.2.	 	Resignation and Removal of Asset Representations Reviewer	13
	 	Section 5.3.	 	Successor Asset Representations Reviewer	14
	 	Section 5.4.	 	Merger, Consolidation or Succession	14

 

    	 	i	 

     

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	ARTICLE VI	OTHER AGREEMENTS	14
	 	Section 6.1.	 	Independence of Asset Representations Reviewer	14
	 	Section 6.2.	 	No Petition	15
	 	Section 6.3.	 	Limitation of Liability of Owner Trustee	15
	 	Section 6.4.	 	Termination of Agreement	15
	ARTICLE VII	MISCELLANEOUS PROVISIONS	15
	 	Section 7.1.	 	Amendments	15
	 	Section 7.2.	 	Assignment; Benefit of Agreement; Third Party Beneficiaries	15
	 	Section 7.3.	 	Notices	16
	 	Section 7.4.	 	Governing Law; Submission to Jurisdiction; Waiver of Jury Trial	16
	 	Section 7.5.	 	No Waiver; Remedies	17
	 	Section 7.6.	 	Severability	17
	 	Section 7.7.	 	Headings	17
	 	Section 7.8.	 	Counterparts; Electronic Transmission	17
	 	Schedule A	 	Representations
and Warranties, Review Materials and Tests	 

 

    	 	ii	 

     

    

 

ASSET REPRESENTATIONS REVIEW AGREEMENT, dated as
of            , 20[ ] (this “Agreement”), among HONDA AUTO RECEIVABLES 20[ ]-[ ] OWNER TRUST, a Delaware statutory trust, as Issuer
(the “Issuer”), AMERICAN HONDA FINANCE CORPORATION, a California corporation (“AHFC”), as Sponsor
and Servicer, and [_____], a [_____], as Asset Representations Reviewer (the “Asset Representations Reviewer”).

 

BACKGROUND

 

WHEREAS, in the regular course of its business,
AHFC acquires certain motor vehicle retail installment sale contracts secured by new and used automobiles (including light-duty trucks)
from motor vehicle dealers.

 

WHEREAS, in connection with a securitization transaction
sponsored by AHFC, AHFC sold a pool of Receivables consisting of retail installment sale contracts to American Honda Receivables, LLC
(the “Depositor”), who sold them to the Issuer.

 

WHEREAS, the Issuer has granted a security interest
in the pool of Receivables to the Indenture Trustee, for the benefit of the Holders of Notes, as security for the Notes issued by the
Issuer under the Indenture.

 

WHEREAS, the Issuer desires to engage the Asset
Representations Reviewer to perform reviews of certain Receivables for compliance with the representations and warranties made by AHFC
about the Receivables in the pool.

 

NOW, THEREFORE, in consideration of the foregoing,
other good and valuable consideration, and the mutual terms and conditions contained herein, the parties hereto agree as follows.

 

ARTICLE I

USAGE AND DEFINITIONS

 

Section 1.1.         Usage
and Definitions. (a) Except as otherwise specified herein or if the context may otherwise require, capitalized terms not defined
in this Agreement shall have the respective meanings assigned such terms set forth in Appendix A to the Sale and Servicing Agreement,
dated as of the date hereof (the “Sale and Servicing Agreement”), by and among the Depositor, as seller, AHFC, as servicer,
RPA seller and sponsor, and Honda Auto Receivables 20[ ]-[ ] Owner Trust, as issuer.

 

(b)       With
respect to all terms in this Agreement, the singular includes the plural and the plural the singular; words importing any gender include
the other genders; references to “writing” include printing, typing, lithography and other means of reproducing words in a
visible form; references to agreements and other contractual instruments include all subsequent amendments, amendments and restatements,
and supplements thereto or changes therein entered into in accordance with their respective terms and not prohibited by this Agreement;
references to Persons include their permitted successors and assigns; references to laws include their amendments and supplements, the
rules and regulations thereunder and any successors thereto; the term “including” means “including without limitation;”
and the term “or” is not exclusive.

 

     

     

    

 

Section 1.2.         Additional
Definitions. The following terms have the meanings given below:

 

“Asset Review” means the performance
by the Asset Representations Reviewer of the testing procedures for each Test and each Subject Receivable according to Section 3.4.

 

“Confidential Information” has
the meaning stated in Section 4.9(b).

 

“Information Recipients” has
the meaning stated in Section 4.9(a).

 

“Issuer PII” has the meaning
stated in Section 4.10(a).

 

“Personally Identifiable Information”
or “PII” has the meaning stated in Section 4.10(a).

 

“Review Fee” has the meaning
stated in Section 4.3(b).

 

“Review Materials” means, for
an Asset Review and a Subject Receivable, the documents and other materials for each Test listed under “Review Materials”
in Schedule A.

 

“Review Report” means, for an
Asset Review, the report of the Asset Representations Reviewer prepared according to Section 3.5.

 

“Test” has the meaning stated
in Section 3.4(a).

 

“Test Complete” has the meaning
stated in Section 3.4(c).

 

“Test Fail” has the meaning
stated in Section 3.4(a).

 

“Test Incomplete” has the meaning
stated in Section 3.4(a).

 

“Test Pass” has the meaning
stated in Section 3.4(a).

 

ARTICLE II

ENGAGEMENT OF ASSET REPRESENTATIONS REVIEWER

 

Section 2.1.         Engagement;
Acceptance. The Issuer engages [         ] to act as the Asset Representations Reviewer for the Issuer. [           ] accepts the engagement and agrees
to perform the obligations of the Asset Representations Reviewer on the terms in this Agreement.

 

    	 	2	 

     

    

 

Section 2.2.         Confirmation
of Scope. The parties confirm that the Asset Representations Reviewer is not responsible for determining whether noncompliance with
the representations or warranties constitutes a breach of the Basic Documents.

 

ARTICLE III

ASSET REPRESENTATIONS REVIEW PROCESS

 

Section 3.1.         Review
Notices. On receipt of a review notice from the Indenture Trustee in accordance with Section 7.05 of the Indenture, the Asset
Representations Reviewer will start an Asset Review. The Asset Representations Reviewer will have no obligation to start an Asset Review
until a review notice is received.

 

Section 3.2.         Identification
of Subject Receivables. Within [●] [Business Days][calendar days] after receipt of a review notice, the Servicer will
deliver to the Asset Representations Reviewer a list of the Subject Receivables.

 

Section 3.3.         Review
Materials.

 

(a)       Access
to Review Materials. The Servicer will give the Asset Representations Reviewer access to the Review Materials for all of the Subject
Receivables within [●] [Business Days][calendar days] after receipt of the review notice in one or more of the following ways in
the Servicer’s reasonable discretion: (i) by electronic posting of Review Materials to a password-protected website to which
the Asset Representations Reviewer has access, (ii) by providing originals or photocopies of documents relating to the Subject Receivables
at one of the properties of the Servicer or (iii) in another manner agreed by the Servicer and the Asset Representations Reviewer.
The Servicer may redact or remove PII from the Review Materials so long as all information in the Review Materials necessary for the Asset
Representations Reviewer to complete the Asset Review remains intact and unchanged.

 

(b)       Missing
or Insufficient Review Materials. The Asset Representations Reviewer will review the Review Materials to determine if any Review Materials
are missing or insufficient for the Asset Representations Reviewer to perform any Test. If the Asset Representations Reviewer reasonably
determines that any of the Review Materials are missing or insufficient for the Asset Representations Reviewer to perform any Test, the
Asset Representations Reviewer will notify the Servicer promptly, and in any event no less than [●] [Business Days][calendar days]
before completing the Review, and the Servicer will use reasonable efforts to provide the Asset Representations Reviewer access to such
missing Review Materials or other documents or information to correct the insufficiency within [●] [Business Days][calendar days].
[If the missing or insufficient Review Materials have not been provided by the Servicer within [●] [Business Days][calendar days],
the parties agree that the Subject Receivable will have a Test Incomplete for the related Test(s) and the Review Report will indicate
the reason for the Test Incomplete.]

 

Section 3.4.         Performance
of Reviews.

 

(a)       Test
Procedures. For an Asset Review, the Asset Representations Reviewer will perform for each Subject Receivable the procedures listed
under “Tests” in Schedule A for each representation and warranty (each, a “Test”), using the Review
Materials listed for each such Test in Schedule A. For each Test and Subject Receivable, the Asset Representations Reviewer will
determine in its reasonable judgment if the Test has been satisfied (a “Test Pass”) or if the Test has not been satisfied
(a “Test Fail”), or if the Test could not be concluded as a result of missing or incomplete Review Materials (a “Test
Incomplete”). The Asset Representations Reviewer will use such determination for all Subject Receivables that are subject to
the same Test.

 

    	 	3	 

     

    

 

(b)       Review
Period. The Asset Representations Reviewer will complete the Review of all of the Subject Receivables within [●] [Business Days][calendar
days] after receiving access to the Review Materials under Section 3.3(a). However, if missing or additional Review Materials
are provided to the Asset Representations Reviewer under Section 3.3(b), the review period will be extended for an additional
[●] [Business Days][calendar days].

 

(c)       Completion
of Review for Certain Subject Receivables. Following the delivery of the list of the Subject Receivables and before the delivery of
the Review Report by the Asset Representations Reviewer, the Servicer may notify the Asset Representations Reviewer if a Subject Receivable
is paid in full by the Obligor or purchased from the Issuer by the Sponsor, the Depositor or the Servicer according to the applicable
Basic Document. On receipt of notice, the Asset Representations Reviewer will immediately terminate all Tests of such Receivables and
the Review of such Receivables will be considered complete (a “Test Complete”). In this case, the Review Report will
indicate a Test Complete for the Receivables and the related reason.

 

(d)       Previously
Reviewed Receivable: Duplicative Tests. If any Subject Receivable was included in a prior Asset Review, the Asset Representations
Reviewer will not perform the same Tests on it, but will include the results of the previous Tests in the Review Report for the current
Asset Review.

 

(e)       Duplicative
Tests. If the same Test is required for more than one representation or warranty listed on Schedule A, the Asset Representations
Reviewer will only perform the Test once for each Review Receivable but will report the results of the Test for each applicable representation
or warranty on the Review Report.

 

(f)       Termination
of Review. If an Asset Review is in process and the Notes will be paid in full on the next Distribution Date, the Servicer will notify
the Asset Representations Reviewer and the Indenture Trustee no less than [●] [Business Days][calendar days] before that Distribution
Date. On receipt of notice, the Asset Representations Reviewer will terminate the Asset Review immediately and will have no obligation
to deliver a Review Report.

 

Section 3.5.         Review
Reports. (a) Within [●] [Business Days][calendar days] after the end of the Asset Review period under Section 3.4(b),
the Asset Representations Reviewer will deliver to the Issuer, the Sponsor, the Servicer and the Indenture Trustee a Review Report indicating
for each Subject Receivable whether there was a Test Pass or a Test Fail for each Test, or whether the Subject Receivable was a Test Complete
and the related reason. The Review Report will contain a summary of the findings and conclusions of the Asset Representations Reviewer
with respect to the Asset Review to be included in the Issuer’s Form 10-D report for the Collection Period in which the Review
Report is received. The Asset Representations Reviewer will ensure that the Review Report does not contain any Issuer PII. On the reasonable
request of the Servicer or the Indenture Trustee, acting solely on behalf of the Noteholders, the Asset Representations Reviewer will
provide additional details on the Test results.

 

(b)       Questions
About Review. The Asset Representations Reviewer will make appropriate personnel available to respond in writing to written questions
or requests for clarification of any Review Report from the Servicer or the Indenture Trustee, acting solely on behalf of the Noteholders,
until the earlier of (i) payment in full of the Notes and (ii) one year after the delivery of the Review Report. The Asset Representations
Reviewer will have no obligation to respond to questions or requests for clarification from Noteholders or any Person other than the Servicer
or the Indenture Trustee, acting solely on behalf of the Noteholders, and will direct such Persons to submit written requests to the Servicer.

 

    	 	4	 

     

    

 

Section 3.6.         Limitations
on Review Obligations.

 

(a)          Review
Process Limitations. The Asset Representations Reviewer will have no obligation:

 

(i)          to
determine whether a Delinquency Trigger has occurred or whether the required percentage of Noteholders has voted to direct an Asset Review
under the Indenture, and may rely on the information in any review notice delivered by the Indenture Trustee;

 

(ii)         to
determine which Receivables are subject to an Asset Review, and may rely on the lists of Subject Receivables provided by the Servicer;

 

(iii)        to
obtain or confirm the validity of the Review Materials and no liability for any errors in the Review Materials and may rely on the accuracy
and completeness of the Review Materials;

 

(iv)        to
obtain missing or insufficient Review Materials from any party or any other source; or

 

(v)         to
take any action or cause any other party to take any action under any of the Basic Documents or otherwise to enforce any remedies against
any Person for breaches of representations or warranties about the Subject Receivables.

 

ARTICLE IV

ASSET REPRESENTATIONS REVIEWER

 

Section 4.1.         Representations
and Warranties. The Asset Representations Reviewer represents and warrants to the Issuer as of the Closing Date:

 

(a)          Organization
and Qualification. The Asset Representations Reviewer is duly organized and validly existing as a [            ] in good standing under the laws
of [             ]. The Asset Representations Reviewer is qualified as a foreign [           ] in good standing and has obtained all necessary licenses and
approvals in all jurisdictions in which the ownership or lease of its properties or the conduct of its activities requires the qualification,
license or approval, unless the failure to obtain the qualifications, licenses or approvals would not reasonably be expected to have a
material adverse effect on the Asset Representations Reviewer’s ability to perform its obligations under this Agreement.

 

(b)          Power,
Authority and Enforceability. The Asset Representations Reviewer has the power and authority to execute, deliver and perform its obligations
under this Agreement. The Asset Representations Reviewer has authorized the execution, delivery and performance of this Agreement. This
Agreement is the legal, valid and binding obligation of the Asset Representations Reviewer enforceable against the Asset Representations
Reviewer, except as may be limited by insolvency, bankruptcy, reorganization or other laws relating to the enforcement of creditors’
rights or by general equitable principles.

 

    	 	5	 

     

    

 

(c)          No
Conflicts and No Violation. The completion of the transactions contemplated by this Agreement and the performance of the Asset Representations
Reviewer’s obligations under this Agreement will not (A) conflict with, or be a breach or default under, any indenture, loan
agreement, guarantee or other agreement or instrument under which the Asset Representations Reviewer is a debtor or guarantor, (B) result
in the creation or imposition of any Lien on any of the properties or assets of the Asset Representations Reviewer under the terms of
any indenture, loan agreement, guarantee or other agreement or instrument, (C) violate the organizational documents of the Asset
Representations Reviewer or (D) violate any law or any order, rule or regulation of a federal or State court, regulatory body,
administrative agency or other governmental instrumentality having jurisdiction over the Asset Representations Reviewer or its properties
that applies to the Asset Representations Reviewer, which, in each case, would reasonably be expected to have a material adverse effect
on the Asset Representations Reviewer’s ability to perform its obligations under this Agreement.

 

(d)         No
Proceedings. There are no proceedings or investigations pending or, to the knowledge of the Asset Representations Reviewer, threatened
in writing before a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction
over the Asset Representations Reviewer or its properties (A) asserting the invalidity of this Agreement, (B) seeking to prevent
the completion of the transactions contemplated by this Agreement or (C) seeking any determination or ruling that would reasonably
be expected to have a material adverse effect on the Asset Representations Reviewer’s ability to perform its obligations under,
or the validity or enforceability of, this Agreement.

 

(e)         Eligibility.
The Asset Representations Reviewer meets the eligibility requirements in Section 5.1 and will notify the Issuer and the Servicer
promptly if it no longer meets, or reasonably expects that it will no longer meet, the eligibility requirements in Section 5.1.

 

Section 4.2.         Covenants.
The Asset Representations Reviewer covenants and agrees that:

 

(a)          Eligibility.
It will notify the Issuer and the Servicer promptly if it no longer meets the eligibility requirements in Section 5.1.

 

(b)          Review
Systems; Personnel. It will maintain business process management and/or other systems necessary to ensure that it can perform each
Test and, on execution of this Agreement, will load each Test into these systems. The Asset Representations Reviewer will ensure that
these systems allow for each Subject Receivable and the related Review Materials to be individually tracked and stored as contemplated
by this Agreement. The Asset Representations Reviewer will maintain adequate staff that is properly trained to conduct Asset Reviews as
required by this Agreement.

 

    	 	6	 

     

    

 

(c)       Maintenance
of Review Materials. It will maintain copies of any Review Materials, Review Reports and other documents relating to an Asset Review,
including internal correspondence and work papers, for a period of two years after the termination of this Agreement or repayment of the
Notes in full, whichever comes first.

 

Section 4.3.         Fees,
Expenses and Indemnities.

 

(a)       [Monthly][Annual]
Fee. The Sponsor will pay the Asset Representations Reviewer, as compensation for agreeing to act as the Asset Representations Reviewer
under this Agreement, [a monthly][an annual] fee equal to $[●]. The [monthly][annual] fee will be paid as agreed in Section 4.3(d) by
the Sponsor until this Agreement is terminated; provided, that in the year in which all Notes are paid in full, the annual fee
shall be reduced pro rata by an amount equal to the days of the year in which the Notes are no longer outstanding.

 

(b)       Review
Fee. Following the completion of an Asset Review and the delivery to the Indenture Trustee, the Sponsor and the Servicer of the Review
Report, or the termination of an Asset Review according to Section 3.4(e), and the delivery to the Sponsor of a detailed invoice,
the Asset Representations Reviewer will be entitled to a fee of [up to $[●] for each Account containing a Subject Receivable][$[●]
per hour][insert any other rate agreed upon by the Asset Representations Reviewer and the Sponsor] (the “Review Fee”).
However, no Review Fee will be charged for any Tests that were performed in a prior Asset Representations Review or for any Asset Representations
Review in which no Tests were completed prior to the Asset Representations Reviewer being notified of a termination of the Asset Representations
Review in accordance with Section 3.4(e). The Sponsor will pay the Review Fee to the Asset Representations Reviewer in accordance
with the terms of Section 4.3(d) of this Agreement. If an Asset Review is terminated according to Section 3.4(e),
the Asset Representations Reviewer must submit its invoice for the Review Fee for the terminated Asset Review no later than five Business
Days before the final Payment Date to be reimbursed no later than the final Payment Date.

 

(c)       Reimbursement
of Travel Expenses. If the Servicer provides access to the Review Materials at one of its properties, the Sponsor will reimburse the
Asset Representations Reviewer for its reasonable travel expenses incurred in connection with the Asset Review upon receipt of a detailed
invoice.

 

(d)       Payment
of Fees and Indemnities. The Asset Representations Reviewer shall submit reasonably detailed invoices to the Sponsor for any amounts
owed to it under this Agreement. To the extent not paid by the Sponsor within [●] [Business Days][calendar days] following the receipt
of a detailed invoice, the fees provided for in this Section 4.3 and the indemnities provided for in Section 4.6(a) shall
be paid by the Issuer pursuant to Section 4.06(c) of the Sale and Servicing Agreement; provided, that prior to any such
payment pursuant to the Sale and Servicing Agreement, the Asset Representations Reviewer shall notify the Sponsor in writing that such
payments have been outstanding for at least [●] [Business Days][calendar days]. For the avoidance of doubt, to the extent that such
owed amounts are not paid in full by the Sponsor or any other party, upon receipt of a detailed invoice, the Asset Representations Reviewer
shall be entitled to payment by the Sponsor of incurred but otherwise unpaid amounts.

 

    	 	7	 

     

    

 

Section 4.4.         Limitation
on Liability. The Asset Representations Reviewer will not be liable to any Person for any action taken, or not taken, in good faith
under this Agreement or for errors in judgment. However, the Asset Representations Reviewer will be liable for its willful misconduct,
bad faith, breach of this Agreement or negligence in performing its obligations under this Agreement. In no event will the Asset Representations
Reviewer be liable for special, indirect or consequential losses or damages (including lost profit), even if the Asset Representations
Reviewer has been advised of the likelihood of the loss or damage and regardless of the form of action.

 

Section 4.5.         Indemnification
by Asset Representations Reviewer. The Asset Representations Reviewer will indemnify each of the Issuer, the Depositor, the Servicer,
the Sponsor, the Owner Trustee and the Indenture Trustee (each, an “Indemnified Party”) and their respective directors,
officers, employees and agents for all costs, expenses, losses, damages and liabilities (including any reasonable legal fees and expenses
incurred by an Indemnified Party in connection with the enforcement of any indemnification or other obligation of the Asset Representations
Reviewer) resulting from (a) the willful misconduct, bad faith or negligence of the Asset Representations Reviewer in performing
its obligations under this Agreement, (b) the Asset Representations Reviewer’s failure to comply with the requirements of applicable
federal, state or local laws and regulations in the performance of its duties hereunder or (c) the Asset Representations Reviewer’s
breach of any of its representations, warranties, covenants or other obligations in this Agreement. The Asset Representations Reviewer’s
obligations under this Section 4.5 will survive the termination of this Agreement, the termination of the Issuer and the permitted
resignation or removal of the Asset Representations Reviewer.

 

Section 4.6.         Indemnification
of Asset Representations Reviewer.

 

(a)       Indemnification.
The Sponsor will indemnify the Asset Representations Reviewer and its officers, directors, employees and agents (each, an “Indemnified
Person”), for all costs, expenses, losses, damages and liabilities resulting from the performance of the Asset Representations
Reviewer’s obligations under this Agreement (including the costs and expenses of defending itself against any loss, damage or liability),
but excluding any cost, expense, loss, damage or liability resulting from (i) the Asset Representations Reviewer’s willful
misconduct, bad faith or negligence, (ii) the Asset Representations Reviewer’s failure to comply with the requirements of applicable
federal, state and local laws and regulations in the performance of its duties hereunder or (iii) the Asset Representations Reviewer’s
breach of any of its representations, warranties, covenants or other obligations in this Agreement.

 

(b)       Proceedings.
Promptly on receipt by an Indemnified Person of notice of a Proceeding against it, the Indemnified Person will, if a claim is to be made
under Section 4.6(a), notify the Sponsor of the Proceeding. The Sponsor may participate in and assume the defense and settlement
of a Proceeding at its expense. If the Sponsor notifies the Indemnified Person of its intention to assume the defense of the Proceeding
with counsel reasonably satisfactory to the Indemnified Person, and the Sponsor will not be liable for legal expenses of counsel to the
Indemnified Person unless there is a conflict between the interests of the Sponsor, and an Indemnified Person. If there is a conflict,
the Sponsor will pay for the reasonable fees and expenses of separate counsel to the Indemnified Person. No settlement of a Proceeding
may be made without the approval of the Sponsor and the Indemnified Person, which approval will not be unreasonably withheld.

 

    	 	8	 

     

    

 

(c)       Survival
of Obligations. The Issuer’s obligations under this Section 4.6 will survive the permitted resignation or removal
of the Asset Representations Reviewer and the termination of this Agreement.

 

(d)       Repayment.
If the Sponsor makes any payment under this Section 4.6 and the Indemnified Person later collects any of the amounts for which
the payments were made to it from others, the Indemnified Person will promptly repay the amounts to the Sponsor.

 

Section 4.7.         Inspections
of Asset Representations Reviewer. The Asset Representations Reviewer agrees that, with reasonable prior notice not more than once
during any year, it will permit authorized representatives of the Issuer, the Servicer or the Sponsor, during the Asset Representations
Reviewer’s normal business hours, to examine and review the books of account, records, reports and other documents and materials
of the Asset Representations Reviewer relating to (a) the performance of the Asset Representations Reviewer’s obligations under
this Agreement, (b) payments of fees and expenses of the Asset Representations Reviewer for its performance and (c) a claim
made by the Asset Representations Reviewer under this Agreement. In addition, the Asset Representations Reviewer will permit the Issuer’s,
the Servicer’s or the Sponsor’s representatives to make copies and extracts of any of those documents and to discuss them
with the Asset Representations Reviewer’s officers and employees. Each of the Issuer, the Servicer and the Sponsor will, and will
cause its authorized representatives to, hold in confidence any proprietary confidential information of the Asset Representations Reviewer
except if disclosure may be required by law or if the Issuer, the Servicer or the Sponsor reasonably determines that it is required to
make the disclosure under this Agreement or the other Basic Documents. Except as described in Section 4.2(c), the Asset Representations
Reviewer will maintain all relevant books, records, reports and other documents and materials for a period of at least two years after
the termination of its obligations under this Agreement.

 

Section 4.8.         Delegation
of Obligations. The Asset Representations Reviewer may not delegate or subcontract its obligations under this Agreement to any Person
without the consent of the parties to this Agreement.

 

Section 4.9.         Confidential
Information.

 

(a)       Treatment.
The Asset Representations Reviewer agrees to hold and treat Confidential Information given to it under this Agreement in confidence and
under the terms and conditions of this Section 4.9, and will implement and maintain safeguards to further assure the confidentiality
of the Confidential Information. The Confidential Information will not, without the prior consent of the Issuer, the Sponsor and the Servicer,
be disclosed or used by the Asset Representations Reviewer, or its officers, directors, employees, agents, representatives or affiliates,
including legal counsel (collectively, the “Information Recipients”) other than for the purposes of performing Asset
Reviews of Subject Receivables or performing its obligations under this Agreement. The Asset Representations Reviewer agrees that it will
not, and will cause its Affiliates to not (i) purchase or sell securities issued by AHFC or its Affiliates or special purpose entities
on the basis of Confidential Information or (ii) use the Confidential Information for the preparation of research reports, newsletters
or other publications or similar communications.

 

    	 	9	 

     

    

 

(b)          Definition.
 “Confidential Information” means oral, written and electronic materials (irrespective of its source or form of communication)
furnished before, on or after the date of this Agreement to the Asset Representations Reviewer for the purposes contemplated by this Agreement,
including:

 

(i)          lists
of Subject Receivables and any related Review Materials;

 

(ii)         origination
and servicing guidelines, policies and procedures and form contracts; and

 

(iii)        notes,
analyses, compilations, studies or other documents or records prepared by the Sponsor or the Servicer, which contain information supplied
by or on behalf of the Sponsor or the Servicer or their representatives.

 

However, Confidential Information will not include information that
(A) is or becomes generally available to the public other than as a result of disclosure by the Information Recipients, (B) was
available to, or becomes available to, the Information Recipients on a non-confidential basis from a Person or entity other than the Issuer,
the Sponsor or the Servicer before its disclosure to the Information Recipients who, to the knowledge of the Information Recipient is
not bound by a confidentiality agreement with the Issuer, the Sponsor or the Servicer and is not prohibited from transmitting the information
to the Information Recipients, (C) is independently developed by the Information Recipients without the use of the Confidential Information,
as shown by the Information Recipients’ files and records or other evidence in the Information Recipients’ possession or (D) the
Issuer, the Sponsor or the Servicer provides permission to the applicable Information Recipients to release.

 

(c)          Protection.
The Asset Representations Reviewer will use reasonable measures to protect the secrecy of and avoid disclosure and unauthorized use of
Confidential Information, including those measures that it takes to protect its own confidential information and not less than a reasonable
standard of care. The Asset Representations Reviewer acknowledges that Personally Identifiable Information is also subject to the additional
requirements in Section 4.9.

 

(d)         Disclosure.
If the Asset Representations Reviewer is required by applicable law, regulation, rule or order issued by an administrative, governmental,
regulatory or judicial authority to disclose part of the Confidential Information, it may disclose the Confidential Information. However,
before a required disclosure, the Asset Representations Reviewer, if permitted by law, regulation, rule or order, will use its reasonable
efforts to provide the Issuer, the Sponsor and the Servicer with notice of the requirement and will cooperate, at the Sponsor’s
expense, in the Issuer’s and the Sponsor’s pursuit of a proper protective order or other relief for the disclosure of the
Confidential Information. If the Issuer or the Sponsor is unable to obtain a protective order or other proper remedy by the date that
the information is required to be disclosed, the Asset Representations Reviewer will disclose only that part of the Confidential Information
that it is advised by its legal counsel it is legally required to disclose.

 

    	 	10	 

     

    

 

(e)          Responsibility
for Information Recipients. The Asset Representations Reviewer will be responsible for a breach of this Section 4.9 by
its Information Recipients.

 

(f)           Violation.
The Asset Representations Reviewer agrees that a violation of this Agreement may cause irreparable injury to the Issuer, the Sponsor and
the Servicer and the Issuer, the Sponsor and the Servicer may seek injunctive relief in addition to legal remedies. If an action is initiated
by the Issuer or the Servicer to enforce this Section 4.9, the prevailing party will be reimbursed for its fees and expenses,
including reasonable attorney’s fees, incurred for the enforcement.

 

Section 4.10.       Personally
Identifiable Information.

 

(a)          Definitions.
 “Personally Identifiable Information” or “PII” means information in any format about an identifiable
individual, including, name, address, phone number, e-mail address, account number(s), identification number(s), vehicle identification
number(s) or “VIN(s)”, any other actual or assigned attribute associated with or identifiable to an individual and any
information that when used separately or in combination with other information could identify an individual. “Issuer PII”
means PII furnished by the Issuer, the Servicer or their Affiliates to the Asset Representations Reviewer and PII developed or otherwise
collected or acquired by the Asset Representations Reviewer in performing its obligations under this Agreement.

 

(b)          Use
of Issuer PII. The Issuer does not grant the Asset Representations Reviewer any rights to Issuer PII. None of the Issuer, the Sponsor
or the Servicer intend to share, provide or supply any Issuer PII to the Asset Representations Reviewer. However, if the Asset Representations
Reviewer receives any Issuer PII, the Asset Representations Reviewer will promptly (i) notify the Servicer and (ii) delete and
destroy such Issuer PII in accordance with Section 4.10(c). Notwithstanding the foregoing, the Asset Representations Reviewer
must comply with all laws applicable to PII, Issuer PII and the Asset Representations Reviewer’s business, including any legally
required codes of conduct, including those relating to privacy, security and data protection. The Asset Representations Reviewer will
implement and maintain reasonable and appropriate practices, procedures and systems, including administrative, technical and physical
safeguards designed to (i) protect the security, confidentiality and integrity of Issuer PII, (ii) ensure against anticipated
threats or hazards to the security or integrity of Issuer PII, (iii) protect against unauthorized access to or use of Issuer PII
and (iv) otherwise comply with its obligations under this Agreement. These safeguards include a written data security plan, employee
training, information access controls, restricted disclosures, systems protections (e.g., intrusion protection, data storage protection
and data transmission protection) and physical security measures.

 

(c)          Additional
Limitations. In addition to the use and protection requirements described in Section 4.10(b), the Asset Representations
Reviewer’s disclosure of Issuer PII is also subject to the following requirements:

 

(i)       The
Asset Representations Reviewer will not disclose Issuer PII to its personnel or allow its personnel access to Issuer PII [except (A) for
the Asset Representations Reviewer personnel who require Issuer PII to perform an Asset Review, (B) with the prior consent of the
Issuer or (C) as required by applicable law. When permitted, the disclosure of or access to Issuer PII will be limited to the specific
information necessary for the individual to complete the assigned task.] The Asset Representations Reviewer will inform personnel with
access to Issuer PII of the confidentiality requirements in this Agreement and train its personnel with access to Issuer PII on the proper
use and protection of Issuer PII.

 

    	 	11	 

     

    

 

(ii)       The
Asset Representations Reviewer will not sell, disclose, provide or exchange Issuer PII with or to any third party without the prior consent
of the Issuer.

 

(d)          Notice
of Breach. The Asset Representations Reviewer will notify the Issuer promptly in the event of an actual or reasonably suspected security
breach, unauthorized access, misappropriation or other compromise of the security, confidentiality or integrity of Issuer PII and, where
applicable, immediately take action to prevent any further breach.

 

(e)          Return
or Disposal of Issuer PII. Except where return or disposal is prohibited by applicable law, promptly on the earlier of the completion
of the Asset Review or the request of the Issuer, all Issuer PII in any medium in the Asset Representations Reviewer’s possession
or under its control will be (i) destroyed in a manner that prevents its recovery or restoration or (ii) if so directed by the
Issuer, returned to the Issuer without the Asset Representations Reviewer retaining any actual or recoverable copies, in both cases, without
charge to the Issuer. Where the Asset Representations Reviewer retains Issuer PII, the Asset Representations Reviewer will limit the Asset
Representations Reviewer’s further use or disclosure of Issuer PII to that required by applicable law.

 

(f)           Compliance;
Modification. The Asset Representations Reviewer will cooperate with and provide information to the Issuer regarding the Asset Representations
Reviewer’s compliance with this Section 4.10. The Asset Representations Reviewer and the Issuer agree to modify this
Section 4.10 as necessary from time to time for either party to comply with applicable law.

 

(g)          Affiliates
and Third Parties. If the Asset Representations Reviewer processes the PII of the Issuer’s Affiliates or a third party when
performing an Asset Review, and if such Affiliate or third party is identified to the Asset Representations Reviewer, such Affiliate or
third party is an intended third-party beneficiary of this Section 4.10, and this Agreement is intended to benefit the Affiliate
or third party. The Affiliate or third party will be entitled to enforce the PII related terms of this Section 4.10 against
the Asset Representations Reviewer as if each were a signatory to this Agreement.

 

(h)          Audit
of Asset Representations Reviewer. The Asset Representations Reviewer will permit the Issuer and its authorized representatives to
audit the Asset Representations Reviewer’s compliance with this Agreement during the Asset Representations Reviewer’s normal
business hours on reasonable advance notice to the Asset Representations Reviewer, and not more than once during any year unless circumstances
necessitate additional audits. The Issuer agrees to make reasonable efforts to schedule any audit described in this Section 4.10
with the inspections described in Section 4.7. The Asset Representations Reviewer will also permit the Issuer and its authorized
representatives during normal business hours on reasonable advance written notice to audit any service providers used by the Asset Representations
Reviewer with the Sponsor’s prior written consent to fulfill the Asset Representations Reviewer’s obligations under this Agreement.

 

    	 	12	 

     

    

 

ARTICLE V

RESIGNATION AND REMOVAL;

SUCCESSOR ASSET REPRESENTATIONS REVIEWER

 

Section 5.1.         Eligibility
Requirements for Asset Representations Reviewer. The Asset Representations Reviewer must be a Person who (a) is not Affiliated
with the Sponsor, the Depositor, the Servicer, the Indenture Trustee, the Owner Trustee or any of their Affiliates and (b) was not,
and is not Affiliated with a Person that was, engaged by the Sponsor or any Underwriter to perform any due diligence on the Receivables
prior to the Closing Date.

 

Section 5.2.         Resignation
and Removal of Asset Representations Reviewer.

 

(a)          No
Resignation of Asset Representations Reviewer. The Asset Representations Reviewer will not resign as Asset Representations Reviewer
unless (a) the Asset Representations Reviewer no longer meets the eligibility requirements in Section 5.1 or (b) upon
determination that the performance of its duties under this Agreement is no longer permissible under applicable law. The Asset Representations
Reviewer will notify the Issuer and the Servicer of its resignation as soon as practicable after it determines it is required to resign
and stating the resignation date and including an Opinion of Counsel supporting its determination.

 

(b)          Removal
of Asset Representations Reviewer. If any of the following events occur, the Sponsor, by notice to the Asset Representations Reviewer,
may remove the Asset Representations Reviewer and terminate its rights and obligations under this Agreement:

 

(i)          [the
Asset Representations Reviewer no longer meets the eligibility requirements in Section 5.1;

 

(ii)         the
Asset Representations Reviewer breaches of any of its representations, warranties, covenants or obligations in this Agreement; or

 

(iii)        an
Insolvency Event of the Asset Representations Reviewer occurs.]

 

(c)       Notice
of Resignation or Removal. The Sponsor will notify the Issuer, the Owner Trustee and the Indenture Trustee of any resignation or removal
of the Asset Representations Reviewer.

 

(d)       Continue
to Perform After Resignation or Removal. No resignation or removal of the Asset Representations Reviewer will be effective, and the
Asset Representations Reviewer will continue to perform its obligations under this Agreement, until a successor Asset Representations
Reviewer has accepted its engagement according to Section 5.3(b).

 

    	 	13	 

     

    

 

Section 5.3.         Successor
Asset Representations Reviewer.

 

(a)           Engagement
of Successor Asset Representations Reviewer. Following the resignation or removal of the Asset Representations Reviewer, the Sponsor
will appoint a successor Asset Representations Reviewer who meets the eligibility requirements of Section 5.1.

 

(b)          Effectiveness
of Resignation or Removal. No resignation or removal of the Asset Representations Reviewer will be effective until the successor Asset
Representations Reviewer has executed and delivered to the Issuer and the Servicer an agreement accepting its engagement and agreeing
to perform the obligations of the Asset Representations Reviewer under this Agreement or entered into a new agreement with the Issuer
on substantially the same terms as this Agreement.

 

(c)          Transition
and Expenses. If the Asset Representations Reviewer resigns or is removed, the Asset Representations Reviewer will cooperate with
the Issuer and take all actions reasonably requested to assist the Issuer in making an orderly transition of the Asset Representations
Reviewer’s rights and obligations under this Agreement to the successor Asset Representations Reviewer. The Asset Representations
Reviewer will pay the reasonable expenses (including the fees and expenses of counsel) of transitioning the Asset Representations Reviewer’s
obligations under this Agreement and preparing the successor Asset Representations Reviewer to take on such obligations on receipt of
an invoice with reasonable detail of the expenses from the Issuer or the successor Asset Representations Reviewer.

 

Section 5.4.         Merger,
Consolidation or Succession. Any Person (a) into which the Asset Representations Reviewer is merged or consolidated, (b) resulting
from any merger or consolidation to which the Asset Representations Reviewer is a party or (c) succeeding to the business of the
Asset Representations Reviewer, if that Person meets the eligibility requirements in Section 5.1, will be the successor to
the Asset Representations Reviewer under this Agreement. Such Person will execute and deliver to the Issuer and the Servicer an agreement
to assume the Asset Representations Reviewer’s obligations under this Agreement (unless the assumption happens by operation of law).

 

ARTICLE VI

OTHER AGREEMENTS

 

Section 6.1.         Independence
of Asset Representations Reviewer. The Asset Representations Reviewer will be an independent contractor and will not be subject to
the supervision of the Issuer, the Owner Trustee or the Indenture Trustee for the manner in which it accomplishes the performance of its
obligations under this Agreement. Unless authorized by the Issuer, the Owner Trustee, or the Indenture Trustee, respectively, the Asset
Representations Reviewer will have no authority to act for or represent the Issuer, the Owner Trustee or the Indenture Trustee and will
not be considered an agent of the Issuer, the Owner Trustee or the Indenture Trustee. None of the Issuer, the Owner Trustee or the Indenture
Trustee will be responsible for monitoring the performance of the Asset Representations Reviewer or liable to any Person for the failure
of the Asset Representations Reviewer to perform its obligations hereunder. Nothing in this Agreement will make the Asset Representations
Reviewer and any of the Issuer, the Owner Trustee or the Indenture Trustee members of any partnership, joint venture or other separate
entity or impose any liability as such on any of them.

 

    	 	14	 

     

    

 

Section 6.2.         No
Petition. Each of the parties, by entering into this Agreement, agrees that, before the date that is one year and one day (or, if
longer, any applicable preference period) after payment in full of (a) all securities issued by the Depositor or by a trust for which
the Depositor was a depositor (including, without limitation, the Issuer) or (b) the Notes, it will not start or pursue against,
or join any other Person in starting or pursuing against (i) the Depositor or (ii) the Issuer, respectively, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy or similar law. This Section 6.2
will survive the termination of this Agreement.

 

Section 6.3.         Limitation
of Liability of Owner Trustee. This Agreement has been signed on behalf of the Issuer by [         ] not in its individual capacity but solely
in its capacity as Owner Trustee of the Issuer. In no event will [        ] in its individual capacity be liable for the Issuer’s obligations
under this Agreement. For all purposes under this Agreement, the Owner Trustee will be subject to, and entitled to the benefits of, the
Trust Agreement.

 

Section 6.4.         Termination
of Agreement. This Agreement will terminate, except for the obligations under Section 4.5 or as otherwise stated in this
Agreement, on the earlier of (a) the payment in full of all outstanding Notes and the satisfaction and discharge of the Indenture
and (b) the date the Issuer is terminated under the Trust Agreement.

 

ARTICLE VII

MISCELLANEOUS PROVISIONS

 

Section 7.1.         Amendments.

 

(a)       This
Agreement can be modified in a written document executed by the parties hereto without the consent of the Noteholders or any other Person;
provided, that, except with respect to amendments (i) to clarify an ambiguity, correct an error or correct or supplement any term
of this Agreement that may be defective or inconsistent with the other terms of this Agreement or to provide for, or facilitate the acceptance
of this Agreement by, a successor Asset Representations Reviewer or (ii) to convert or supplement any provision in a manner consistent
with the intent of this Agreement, either (a) such amendment shall not, as evidenced by an opinion of counsel or officer’s
certificate, materially and adversely affect the interests of the holders of any outstanding Note or (b) the Rating Agency Condition
is satisfied with respect to such amendment. With respect to any amendment for which clauses (a) or (b) of the immediately preceding
sentence cannot be satisfied, this Agreement can be amended with the consent of the Noteholders of a majority of the Outstanding Principal
Balance of the Notes of each adversely affected Series.

 

(b)       Notice
of Amendments. The Servicer will notify the Rating Agencies in advance of any amendment. Promptly after the execution of an amendment,
the Servicer will deliver a copy of the amendment to the Rating Agencies and the Indenture Trustee.

 

Section 7.2.         Assignment;
Benefit of Agreement; Third Party Beneficiaries.

 

(a)          Assignment.
Except as stated in Section 5.4, this Agreement may not be assigned by the Asset Representations Reviewer without the consent
of the parties to this Agreement.

 

    	 	15	 

     

    

 

(b)          Benefit
of Agreement; Third-Party Beneficiaries. This Agreement is for the benefit of and will be binding on the parties and their permitted
successors and assigns. The Owner Trustee and the Indenture Trustee, for the benefit of the Noteholders, will be third-party beneficiaries
of this Agreement and entitled to enforce this Agreement against the Asset Representations Reviewer. No other Person will have any right
or obligation under this Agreement.

 

Section 7.3.         Notices.

 

(a)          Delivery
of Notices. All notices, requests, demands, consents, waivers or other communications to or from the parties must be in writing and
will be considered given:

 

(i)          For
overnight mail, on delivery or, for a letter mailed by registered first class mail, postage prepaid, three days after deposit in the mail;

 

(ii)         for
a fax, when receipt is confirmed by telephone, reply email or reply fax from the recipient;

 

(iii)        for
an email, when receipt is confirmed by telephone or reply email from the recipient; and

 

(iv)        for
an electronic posting to a password-protected website to which the recipient has access, on delivery (without the requirement of confirmation
of receipt) of an email to that recipient stating that the electronic posting has occurred.

 

(b)          Notice
Addresses. Any notice, request, demand, consent, waiver or other communication will be delivered or addressed to: (i) (a) in
the case of the Sponsor and the Servicer, to American Honda Finance Corporation, 1919 Torrance Blvd, 5th Floor, Torrance, CA
90501, Attention: Treasury Capital Markets, (b) in the case of the Issuer or the Owner Trustee, to Honda Auto Receivables 20[               ]-[                      
] Owner Trust, c/o [_______________________],[_______________________], Attention: Asset Backed Securities Unit - Honda Auto Receivables
20[_]-[_], (c) in the case of the Indenture Trustee, to [_______________________], Attention: [__________________], and (d) in
the case of the Asset Representations Reviewer, to [_______] or, (ii) as to each party, at such other address or email as shall be
designated by such party in a written notice to each other party.

 

Section 7.4.         Governing
Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

    	 	16	 

     

    

 

Each
of the parties hereto hereby submits to the exclusive jurisdiction of the United States District Court for the Southern District of New
York and of any New York State court sitting in New York City for purposes of all legal proceedings arising out of or relating to this
Agreement or the transactions contemplated hereby. Each of the parties hereto hereby further irrevocably waives any claim that any such
courts lack jurisdiction over such party, and agrees not to plead or claim, in any legal action or proceeding with respect to this Agreement
in any of the aforesaid courts, that any such court lacks jurisdiction over such party. Each of the parties hereto irrevocably waives,
to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such proceeding
brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.

 

Each
party hereto hereby waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of
any litigation directly or indirectly arising out of, under or in connection with this agreement.

 

Section 7.5.         No
Waiver; Remedies. No party’s failure or delay in exercising a power, right or remedy under this Agreement will operate as a
waiver. No single or partial exercise of a power, right or remedy will preclude any other or further exercise of the power, right or remedy
or the exercise of any other power, right or remedy. The powers, rights and remedies under this Agreement are in addition to any powers,
rights and remedies under law.

 

Section 7.6.         Severability.
If a part of this Agreement is held invalid, illegal or unenforceable, then it will be deemed severable from the remaining Agreement and
will not affect the validity, legality or enforceability of the remaining Agreement.

 

Section 7.7.         Headings.
The headings in this Agreement are included for convenience and will not affect the meaning or interpretation of this Agreement.

 

Section 7.8.         Counterparts;
Electronic Transmission.

 

(a)       This
Agreement may be executed in multiple counterparts. Each counterpart will be an original and all counterparts will together be one document.
Delivery of an executed counterpart of a signature page of this Agreement by telecopy, e-mailed .pdf or any other electronic means
that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart
of this Agreement. The words “execution,” “signed,” “signature,” “delivery,” and words
of like import in or relating to any document to be signed in connection with this Agreement and the transactions contemplated hereby
shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based
recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures
in Global and National Commerce Act or any other similar state laws based on the Uniform Electronic Transactions Act.

 

    	 	17	 

     

    

 

(b)       The
Indenture Trustee, the Owner Trustee, the Delaware Trustee and the Issuer are authorized to accept written instructions, directions, reports,
notices or other communications signed manually, by way of faxed signatures, or delivered by Electronic Transmission. In the absence of
bad faith or negligence on its part, each of the Indenture Trustee, the Owner Trustee, the Delaware Trustee and the Issuer may conclusively
rely on the fact that the Person sending instructions, directions, reports, notices or other communications or information by Electronic
Transmission is, in fact, a Person authorized to give such instructions, directions, reports, notices or other communications or information
on behalf of the party purporting to send such Electronic Transmission and, in the absence of bad faith or negligence, shall not have
any liability for any losses, liabilities, costs or expenses incurred or sustained by any party as a result of such reliance upon or compliance
with such instructions, directions, reports, notices or other communications or information to the Indenture Trustee, the Owner Trustee,
the Delaware Trustee or the Issuer, including, without limitation, the risk of either the Indenture Trustee, the Owner Trustee, the Delaware
Trustee or the Issuer acting on unauthorized instructions, notices, reports or other communications or information, and the risk of interception
and misuse by third parties.

 

[Remainder of Page Left Blank]

 

    	 	18	 

     

    

 

EXECUTED BY:

 

	 	HONDA AUTO RECEIVABLES 20[ ]-[ ] OWNER TRUST,
	 	         as Issuer
	 	 
	 	By:         ,
not in its individual capacity, but solely as Owner Trustee
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	 
	 	AMERICAN HONDA FINANCE CORPORATION,

          as Sponsor and Servicer
	 	 
	 	 
	 	By:	                                            
	 	 	Name:
	 	 	Title:
	 	 
	 	 
	 	[                      ],                                                                           ,
	 	as Asset Representations Reviewer
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature
Page to Asset Representations Review Agreement]

 

     

     

    

 

Schedule A

 

Representations and Warranties, Review Materials
and Tests

 

	
    Representations and Warranty
	 	
    Review Materials
    and Tests

	
    (i)     Characteristics of
    Receivables. Each Receivable

    (a)    was
    originated by a Dealer located in the United States for the sale of the related Financed Vehicle, fully executed or electronically authenticated
    by the Obligor thereto, purchased by AHFC from such Dealer under an existing agreement with AHFC, assigned by such Dealer to the RPA Seller
    and subsequently sold by the RPA Seller to the Purchaser pursuant to the Receivables Purchase Agreement,

    (b)    has
    created or shall create a first priority security interest in favor of the RPA Seller in the related Financed Vehicle, which security
    interest has been assigned by the RPA Seller to the Purchaser and shall be assignable, and shall be so assigned, by the Purchaser to the
    Issuer,

    (c)    contains
    provisions that permit the repossession and sale of the Financed Vehicle upon a default under the Receivable by the Obligor,

    (d)    except
    as otherwise provided in this Agreement, provides, at the time of origination, for level Monthly Payments (provided that the first and
    last payments in the life of the Receivable may be different from but in no event more than two times the level payment) that fully amortize
    the Amount Financed over its original term,

    (e)    allows
    for prepayment,

    (f)     is
    not listed on the Servicer’s records as a federal, state or local governmental entity and

    (g)    is
    a retail installment sales contract.
	 	
    Review Materials:

    (a)       Title
    documents

    (b)       Installment
    sales contract

    (c)       Receivable
    Files

    (d)       Servicer’s
    Records/Data file

    Tests:

    (a)       Origination

    i.      Review
    the contract and confirm that the Dealer address is a United States address.

    ii.     Review
    the contract and confirm that it was signed by the Obligor.

    iii.    Review
    the contract and confirm that AHFC (or an acceptable variation of the name) is listed as an assignee within the assignment section.

    iv.    Review
    the contract and confirm the Vehicle Identification Number (VIN) on the contract matches the VIN on the Certificate of Title or Application
    for Title.

    v.     Confirm
    the Dealer signed the assignment section of the contract.

    (b)       Security
    Interest Enforcement

    i.      Review
    the Receivable File and confirm that the security interest has not been subordinated and the Receivable maintains an enforceable security
    interest in favor of AHFC for the Financed Vehicle.

    (c)       Repossession

    i.      Review
    the contract and confirm that it contains language permitting the repossession and sale of the Financed Vehicle upon default by the Obligor.

    (d)       Fully
    Amortizing Payment Schedule

    i.      Review
    the contract and confirm that all payments are equivalent with the possible exception of the first and last payments, which may be two
    times the level payment.

    ii.     Review
    the Truth-in-Lending section of the contract and calculate the product of the Amount of Payments with the Number of Payments and confirm
    that this amount is equal to the Total of Payments.

    (e)       Prepayments

    i.      Review
    the contract and confirm that the terms conform to the representation.

    (f)       No
    governmental obligors

    i.      Review
    the contract and confirm that the Obligor does not appear to be a governmental entity and that the Servicer’s records do not otherwise
    indicate that the Obligor is a governmental entity.

    

 

     

     

    

 

	 	 	(g)   Retail installment sale contract

                                                                            i.      Review the contract and confirm that the contract terms conform to the representation.

                                                                            (h)   If
    (a) through (g) are confirmed, then Test Pass.

	(ii)      Compliance with Law.  At the time it was originated, the Receivable complied in all material respects with all requirements of law in effect at the time and applicable to such Receivable.	 	
    Review Materials:

    (a)   Installment
    sales contract

    (b)   AHFC’s
    list of approved contract forms.

    Tests:

    (a)   Review
    the contract form number and revision date and confirm that they are both on AHFC’s list of approved contract forms.

    (b)   If
    (a) is confirmed, then Test Pass.

	(iii)     Binding Obligation.  Each Receivable is on a form contract that includes the legal and binding payment obligation in writing of the related Obligor, enforceable by the holder thereof, except as enforceability may be subject to or limited by bankruptcy, insolvency, reorganization, moratorium, liquidation or other laws affecting the enforcement of creditors’ rights and by general principles of equity, consumer protection laws and the Servicemembers Civil Relief Act.	 	
    Review Materials:

    (a)   Installment
    sales contract

    (b)   AHFC’s
    list of approved contract forms.

    Tests:

    (a)   Review
    the contract form number and revision date and confirm that they are both on AHFC’s list of approved contract forms.

    (b)   Confirm
    the Obligor signed the contract.

    (c)   If
    (a) and (b) are confirmed, then Test Pass.

	(iv)     Receivables in Force.  According to the Servicer’s Receivables system, the Receivable shall not have been satisfied, subordinated or rescinded, nor shall the Financed Vehicle have been released in whole or in part from the lien granted by the related Receivable on the Cutoff Date.	 	
    Review Materials:

    (a)   Receivable
    Files

    (b)   Title
    documents

    (c)   Servicer’s
    Records/Data file

    Tests:

    (a)   Confirm
    that there is no indication in the Servicer’s Records or Receivable Files that the Receivable was subordinated or rescinded.

    (b)   Confirm
    that there is no indication in the Servicer’s Records or Receivable Files that the Receivable was satisfied prior to the Cut-off
    Date.

    (c)   Confirm
    that there is no indication in the Servicer’s Records or Receivable Files that the Financed Vehicle has been released from the lien
    in whole or in part.

    (d)   If
    (a) through (c) are confirmed, then Test Pass.

	(v)      No Defenses.  To the RPA Seller’s knowledge, no right of rescission, setoff, counterclaim or defense has been asserted or threatened in writing by any Obligor against the Receivable.	 	
    Review Materials:

    (a)   Receivable
    Files

    (b)   Receivable
    system

    Tests:

    (a)   Review
    the Receivable Files and confirm that there is no indication the Receivable is subject to rescission, setoff, counterclaim or defense
    that would cause the Receivable to become invalid, or, if so, confirm such indications were not present as of the Cut-off Date.

    (b)   If
    (a) is confirmed, then Test Pass.

	(vi)     No Defaults.  Except for payment delinquencies that, as of the Cutoff Date, were not more than thirty (30) days, according to the accounting records of the RPA Seller, no payment default existed under the terms of any Receivable as of the Cutoff Date.	 	
    Review Materials:

    (a)   Servicer’s
    Records/Data file

    Tests:

    (a)   Confirm
    that there is no indication of a payment default, other than payment delinquencies of not more than thirty (30) days, or if so, confirm
    such defaults were not present as of the Cut-off Date.

    (b)   If
    (a) is confirmed, then Test Pass.

 

     

     

    

 

	(vii)    Insurance.  Each Obligor of a Receivable has been required to obtain physical damage insurance covering the related Financed Vehicle and is required under the terms of the related Receivable to maintain such insurance.	 	
    Review Materials:

    (a)   Installment
    sale contract

    Tests:

    (a)    Confirm
    that the contract contains language that requires the Obligor to obtain and maintain insurance against physical damage to the Financed
    Vehicle.

    (b)   If
    (a) is confirmed, then Test Pass.

     

	(viii)   Lawful Assignment.  The terms of the Receivable do not limit the right of the owner of the Receivable to sell the Receivable.	 	
    Review Materials:

    (a)   Installment
    sale contract

    Tests:

    (a)   Review
    the contract and confirm that there is no language present that limits the rights of the owner of the Receivable to sell the Receivable.

    (b)   If
    (a) is confirmed, then Test Pass.

	(ix)      Chattel Paper.  The Receivable is either “tangible chattel paper” or “electronic chattel paper” within the meaning of the applicable UCC and (A) if the Receivable is tangible chattel paper, there is only one executed or otherwise authenticated original of such Receivable or (B) if the Receivable is electronic chattel paper, there is only one authoritative copy of the record or records (as defined in the UCC) comprising such Receivable.  If the Receivable constitutes electronic chattel paper, AHFC has “control” of such electronic chattel paper within the meaning of Section 9-105 of the applicable UCC.	 	
    Review Materials:

    (a)   Installment
    sale contract

    (b)   AHFC’s
    list of approved contract forms

    (c)   Title
    documents

    Tests:

    (a)   Review
    the contract form number and revision date and confirm that it is on AHFC’s list of approved contract forms.

    (b)   Confirm
    there is a signature under the each of the Obligor’s and seller’s name within the contract.

    (c)   Confirm
    there is no indication the contract was voided or is otherwise not the original authenticated copy.

    (d)   If
    (a) through (c) are confirmed, then Test Pass.

	(x)       Security Interest.  The RPA Seller has, or the Servicer has, started procedures that will result in the RPA Seller having a perfected, first priority security interest in the Financed Vehicle within then (10) days of the Closing Date, which security interest was validly created and is assignable by the RPA Seller to the Purchaser.	 	
    Review Materials:

    (a)   Installment
    sales contract

    (b)   Title
    documents

    Tests:

    (a)   Confirm
    the Title documents report AHFC (or an acceptable variation of the name) as the first lien holder.

    (b)   Confirm
    that the Obligor name on the contract matches the name on the title documents.

    (c)   Confirm
    that the Vehicle Identification Number (VIN) on the contract matches the vehicle identification number as reported on the title documents.

    (d)   If
    (a) through (c) are confirmed, then Test Pass.

 

     

     

    

 

	
    (xi)      Individual Characteristics.
    Each Receivable has the following individual characteristics as of the Cutoff Date:

    (a)   is
    not listed on the Servicer’s records as the subject of a pending bankruptcy proceeding;

    (b)   had
    an original maturity of not greater than [72] payments;

    (c)   provides
    for the payment of a finance charge or shall yield interest calculated on the basis of a Contract Rate of at least [0.50]%;

    (d)   has
    a Scheduled Payment that is not more than thirty (30) days past due;

    (e)   the
    Financed Vehicle to which the Receivable relates is a new or used Honda or Acura automobile or light-duty truck; and

    (f)    the
    Obligor under each Receivable had a billing address in the United States or its territories or possessions, according to the records of
    the Servicer.
	 	
    Review Materials:

    (a)   Installment
    sales contract

    (b)   Servicer’s
    Records/Data file

    (c)   Receivable
    Files

    Tests:

    (a)   Bankruptcy

    i.      Review
    the Servicer’s records and confirm that the Obligor was not the subject of a bankruptcy proceeding as of the Cutoff Date.

    (b)   Original
    Maturity

    i.      Confirm
    that the number of payments as stated within the contract does not exceed [72] payments.

    (c)   Contract
    Rate

    i.      Confirm
    that the Contract Rate stated within the contract is greater than or equal to [0.50]% as of the Cutoff Date.

    (d)   Past
    Due

    i.      Review
    the Servicer’s records and confirm that the Receivable was not more than thirty (30) days past due as of the Cutoff Date.

    (e)   New
    or Used Honda or Acura

    i.      Confirm
    the Financed Vehicle is a new or used automobile or light-duty truck as stated within the New/Used section of the contract.

    (f)    Billing
    Address

    i.       Confirm
    the Receivable Files indicate that the Obligor’s address is located within the United States or its territories or possessions as
    of the Cutoff Date.

    (g)   If
    (a) through (f) are confirmed, then Test Pass.Exhibit 10.4(a)

 

Exhibit 10.4(a)

 

FORM OF EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (this “Agreement”),
dated as of May 26, 2021, between Forward Industries, Inc. (the “Company”) and [Mitch Maiman] [Paul Severino] (the “Executive”).

 

RECITALS:

 

WHEREAS, the Company desires to employ the Executive
pursuant to the terms and conditions and for the consideration set forth in this Agreement, and the Executive desires to be employed by
the Company pursuant to such terms and conditions and for such consideration.

 

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

 

1.   
EMPLOYMENT TERM

 

The term of employment hereunder (the “Term”)
shall commence on the date hereof (“Employment Commencement Date”) and shall continue for one year thereafter, unless earlier
terminated in accordance with the terms of this Agreement; provided that, on such one year anniversary of this Agreement and each annual
anniversary thereafter (such date and each annual anniversary thereafter, a “Renewal Date”), this Agreement shall be automatically
renewed, upon the same terms and conditions, for successive one-year periods, unless either party provides written notice of its intention
not to renew this Agreement at least six months prior to the applicable Renewal Date (the “Six Month Trigger Date”).  If
either party notifies the other party on or prior to the Six Month Trigger Date of their intention to renew the Term of this Agreement
with rights, obligations and/or conditions which are different than those provided for herein, the parties shall have 60 days from the
Six Month Trigger Date to agree in writing on such renegotiated rights, obligations and/or conditions.

 

2.   
EMPLOYMENT DUTIES AND SERVICES

 

The Company hereby employs the Executive as its
President, Intelligent Product Solutions, Inc. (“IPS”), for the Term of this Agreement and any renewal(s) thereof, and the
Executive hereby accepts such employment. In such position, the Executive shall have such duties, authority, and responsibilities as shall
be determined from time to time by the Forward Group’s Chief Executive Officer (“Chief Executive Officer”) and the Board
of Directors of the Company (the “Board”), which duties, authority, and responsibilities are consistent with the Executive's
position. The Executive shall serve the Company faithfully and to the best of his ability and shall devote his time and attention to the
business and affairs of the Company, subject to reasonable absences for vacation and illness in accordance with Company policies. Notwithstanding
the foregoing, subject to the Executive’s obligations and negative covenants set forth herein, including without limitation Section
9 hereof, the Executive may with the prior written consent of the Chairman of the Board, act or serve as a director, trustee, committee
member, or principal of any type of business,; provided that any such activities do not interfere with the performance of the Executive’s
duties and responsibilities to the Company or its subsidiaries as provided hereunder, including as set forth in this Section 2.

 

 

 

    	 	1	 

     

    

 

3.   
COMPENSATION AND EXPENSE REIMBURSEMENT

 

(a)   
Salary. The Executive shall be entitled to receive for all services rendered by the Executive in any and all capacities in connection
with the Executive’s employment hereunder a salary (as it may be adjusted from time to time, “Salary”) at the rate of
$[251,000] per annum, payable in equal instalments in accordance with the prevailing practices of the Company (but not less frequently
than monthly).

 

(b)  
Bonus: Calculation and Payment.

 

(i) The Executive shall be eligible
to receive a (“Bonus”) with respect to each full fiscal year or part thereof (subject to Sections 3, 4, 5, 6, and 7 hereof)
in respect of his employment hereunder, as set forth in this Section 3. The amount of Bonus, if any, that the Executive is eligible to
earn in any fiscal year during the Term hereof pursuant to this Section 3(b) shall be based on the bonus plan, fiscal targets and performance
metrics of Intelligent Product Solutions, Inc. a subsidiary of the Company (“IPS”), that the Compensation Committee of the
Board adopts, in its sole discretion, from year to year. During the Term, in addition to the Salary, for each fiscal year of the Company
ending during the Term, the Executive shall be eligible to receive, at the sole discretion of the Compensation Committee, a performance
bonus based on a combination of both IPS financial performance (“IPS Performance Bonus”) and individual performance (“Individual
Performance Bonus”), (collectively, the “Bonus”). Applicable and specific Company and Individual performance criteria
for the Executive will be determined by the Compensation Committee based on its consultation with the Company’s Chief Executive
Officer (who also shall consult with the Executive) and such criteria will be set forth in writing annually. The Compensation Committee
shall review the proposed performance goals and other metrics proposed by the Chief Executive Officer and shall approve or provide alternative
goals and metrics within 10 business days of receiving the Chief Executive Officer’s proposed performance goals and metrics..

 

The Executive’s IPS Performance
Bonus, if awarded, shall be paid to the Executive in cash, and the Executive’s Individual Performance Bonus may be awarded to the
Executive in a combination of cash, restricted stock, restricted stock units, stock options, and/or other equity, the combination and
vesting of which shall be determined by the Compensation Committee in its sole discretion.

 

(ii) The Compensation Committee shall
have the authority to pay the Executive a discretionary bonus from time to time based upon the Executive’s and IPS’ performance.
In awarding any such discretionary bonus the Compensation Committee will consult with the Chief Executive Officer.

 

(c)   
Expenses. Subject to the provisions of Section 3(a) hereof, the Executive will be reimbursed for all reasonable and necessary expenses
incurred by the Executive in carrying out the duties contemplated under this Agreement, in accordance with Company practices and procedures
in effect from time to time, as such practices may be changed from time to time by the Board. In addition, $900 per month incidental expense
shall be allowable.

 

(d)  
Benefits. The Executive shall be entitled to participate in all group health and other insurance programs and all other fringe
benefits (including 20 days’ paid time off) and retirement plans (including any 401(k) plan) or other compensatory plans that the
Company may hereafter elect to make available to its executives generally on terms no less favorable than those provided to other executives
generally, provided the Executive meets the qualifications therefor. This Agreement shall not require the Company to establish any such
program or plan.

 

(e)   
Withholding. All payments required to be made by the Company hereunder to the Executive shall be subject to the withholding of
authorized deductions and such amounts relating to taxes and other governmental assessments as the Company may reasonably determine it
should withhold pursuant to any applicable law, rule or regulation.

 

(f)    
Internal Revenue Code Section 409A compliance. The intent of the parties is that payments and benefits under this Agreement comply
with, or be exempt from, Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively “Code
Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.

 

 

 

    	 	2	 

     

    

 

(i) A termination of employment shall
not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon
or following a termination of employment that are considered “nonqualified deferred compensation” under Code Section 409A
unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any
such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall
mean “separation from service.” If the Executive is deemed on the date of termination to be a “specified employee”
within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment that is considered non-qualified deferred
compensation under Code Section 409A payable on account of a “separation from service,” such payment or benefit shall be made
or provided at the date which is the earlier of (A) the expiration of the six (6) month period measured from the date of such “separation
from service” of the Executive, and (B) thirty (30) days from the date of the Executive’s death (the “Delay Period”).

 

(ii)                    
With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted
by Code Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit,
(ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses
eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, provided that the foregoing clause (ii) shall
not be violated without regard to expenses reimbursed under any arrangement covered by Internal Revenue Code Section 105(b) solely because
such expenses are subject to a limit related to the period the arrangement is in effect and (iii) such payments shall be made on or before
the last day of the Executive’s taxable year following the taxable year in which the expense occurred.

 

(iii)                  
For purposes of Code Section 409A, the Executive’s right to receive any installment payments pursuant to this Agreement shall
be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment
period with reference to a number of days (e.g., “within sixty (60) days following the date of termination”), the actual date
of payment within the specified period shall be within the sole discretion of the Company.”

 

(g) Clawback Provisions. Notwithstanding
any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other compensation, paid to the Executive
pursuant to this Agreement or any other agreement or arrangement with the Company 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 such law,
government regulation or stock exchange listing requirement). This Section 3(g) shall not apply to any of the shares acquired by the Executive
pursuant to the acquisition of IPS by the Company.

 

4. TERMINATION BY THE COMPANY FOR CAUSE

 

(a) The Board may, by written notice
given at any time during the Term, or any renewal thereof, terminate the employment of the Executive for Cause, as determined by the Board.
For purposes of this Agreement, “Cause” shall mean the Executive’s:

 

(i) willful misconduct in connection
with the performance of any of his duties or services hereunder, including without limitation (1) misappropriation or improper diversion
of funds, rights or property of the Company or any subsidiary, or (2) securing or attempting to secure personally (including for the benefit
of any family member, or person sharing the same household, or any entity (corporate, partnership, unincorporated association, proprietorship,
limited liability company, trust, or otherwise) in which the Executive has any economic or beneficial interest) any profit or benefit
in connection with any transaction entered into on behalf of the Company or any subsidiary unless the transaction benefiting the entity
has been approved by the Board upon the basis of full disclosure of such benefit, or (3) material breach of (x) any provision of this
Agreement or (y) the Company’s Insider Trading Policy or Code of Business Conduct and Ethics or other material policy or procedure
of the Company or any subsidiary, as in effect from time to time, or (4) any other action in violation of the Executive’s fiduciary
duty owed to the Company or any subsidiary or the Executive’s acting in a manner adverse to the interests of the Company or any
subsidiary and for his own pecuniary benefit or that of a family member (or member of his household) or any entity (as described in clause
(i)(2) of Section 4(a) above) in which he or any such person has an economic or beneficial interest or (5) the Executive’s failure
to cooperate, if requested by the Board, with any investigation or inquiry into his or the Company’s or any subsidiary’s business
practices, whether internal or external.

 

 

 

    	 	3	 

     

    

 

(ii)             
willful failure, neglect or refusal to perform his duties or services under this Agreement, which failure, neglect or refusal shall
continue for a period of 15 calendar days after written notice thereof shall have been given to the Executive by or on behalf of the Board;
and/or

 

(iii)           
 commission of, conviction of, or nolo contendere or guilty plea in connection with, a felony or a crime of moral turpitude.

 

(b) Termination for Cause under paragraph
(a) of this Section 4 shall be effective immediately upon the giving of such written notice. For purposes of this Agreement, an act or
failure to act on the Executive’s part shall be considered “willful” if it was done or omitted to be done by him not
in good faith.

 

(c) Upon termination of employment
by the Company for Cause, the Executive shall be entitled to receive, and his sole remedies under this Agreement shall be:

 

(i)              
any earned and unpaid Salary accrued through the date of termination for Cause, payable in a lump sum not later than 15 calendar
days following the Executive’s termination of employment;

 

(ii)             
compensation for any unused PTO days accrued in the fiscal year in which termination occurs through the date of termination, payable
as in clause (i) of this Section 4(c);

 

(iii)           
except for any Bonus compensation (for which the Executive shall not be eligible), any unpaid benefits accrued through the day
immediately prior to the date of termination that may be due the Executive under any employee benefit plans or programs of the Company,
payable in accordance with the terms of such plans or programs, together with any documented, unreimbursed business expenses, payable
in accordance with Company policies; and

 

(iv)           
any stock options, grants of common stock, restricted share grants or other benefits under any of the Company’s compensation
plans may not be exercised or obtained on or after the effective date of termination and shall be forfeited for no consideration.

 

(d) Termination of the Executive’s
employment under this Section 4 shall be in addition to and not exclusive of any other rights and remedies that the Company has or may
have relating to the Executive with respect to the facts and circumstances pertaining to such termination.

 

5. TERMINATION BY THE EXECUTIVE FOR GOOD REASON
OR TERMINATION BY THE COMPANY WITHOUT CAUSE

 

(a) In the event the Executive terminates
his employment under this Agreement for Good Reason (as hereinafter defined), or in the event the Executive’s employment is terminated
by the Company without Cause (other than a nonrenewal under Section 1), which termination shall be effective as of the date specified
by the Company in written notice delivered to the Executive not fewer than 15 days prior to the date of termination) other than due to
death or Disability (as hereinafter defined), the Executive shall be entitled to receive, and his sole remedies under this Agreement shall
be:

 

(i) any earned and unpaid Salary accrued
through the date of termination, payable in a lump sum not later than 15 days following the Executive’s termination of employment;

 

(ii)             
Salary, at the annualized rate in effect on the date of termination of the Executive’s employment (or, in the event a reduction
in Salary is a basis for termination for Good Reason, then the Salary in effect immediately prior to such reduction), equal to the amount
of Salary payable for a period of six months, which may be reviewed and increased by the Board from time to time, following such termination,
payable in a lump sum not later than 15 days following the date the Release in Exhibit I becomes fully effective and irrevocable by its
terms;

 

 

 

    	 	4	 

     

    

 

(iii)            
compensation for any unused vacation days accrued in the fiscal year in which termination occurs through the date of termination,
payable as in clause (i) of this Section 5(a);

 

(iv)            
any unpaid benefits accrued through the day immediately prior to the date of termination that may be due the Executive under any
employee benefit plans or programs of the Company, payable in accordance with the terms of such plans or programs, together with any documented,
unreimbursed business expenses, payable in accordance with Company policies; and

 

(v)             
provided that the Release in Exhibit I becomes fully effective and irrevocable by its terms, any stock options, grants of common
stock, restricted share grants or other benefits under any of the Company’s compensation plans that were vested as of 5:00 PM New
York time on the date immediately prior to the date of termination, which may be exercised (in the case of options) or delivered (in the
case of restricted stock) in accordance with the terms of such plans and any applicable plan agreements with the Executive shall remain
fully exercisable for the remainder of their full term.

 

(b)   
Termination by the Executive for Good Reason shall be effected by his giving prior written notice to the Company, in which case
this Agreement shall terminate on the date specified in such notice; provided, however, that the circumstances or event asserted as the
basis for termination for Good Reason must have occurred no later than 20 days before such notice, and provided further that such notice
shall specify (i) in reasonable detail the circumstances or event asserted as the basis for termination for Good Reason, and (ii) a date
of termination that shall be at least 30 days after the date of delivery of such notice; and provided, further, that the Company shall
have the right during such 30 day period to remedy the circumstances or event giving rise to the notice of termination for Good Reason
prior to the date specified in such notice, in which case no right under this Section 5 shall exist.

 

(c)   
For purposes of this Agreement, the term “Good Reason” shall mean:

 

(i)              
the assignment to the Executive without his consent of duties materially inconsistent with the Executive’s position as contemplated
by Section 2 of this Agreement;

 

(ii)             
any failure by the Company to perform any material obligation under, or its breach of a material provision of, this Agreement;
or

 

(iii)           
pursuant to Section 12(b) of this Agreement, failure of any Successor to expressly assume and agree to perform this Agreement in
the same manner and to the same extent as the Company would have had there been no Successor.

 

6. TERMINATION FOR DEATH OR DISABILITY

 

(a) The Executive’s employment
shall terminate immediately upon his death or Disability (as hereinafter defined). Upon such termination, the Executive, his estate, or
his beneficiaries, as the case may be, shall be entitled to receive, and their sole remedies under this Agreement shall be:

 

(i)              
subject to Section 6(b), any earned and unpaid Salary accrued through the date of termination, payable in a lump sum not later
than 15 days following the Executive’s termination of employment;

 

(ii)             
subject to Section 6(b), compensation for any unused vacation days accrued in the fiscal year in which termination occurs through
the date of termination, payable as in clause (i) of this Section 6(a);

 

(iii)           
any unpaid benefits accrued through the date of termination that may be due the Executive under any employee benefit plans or programs
of the Company, payable in accordance with the terms of such plans or programs, together with any documented, unreimbursed business expenses,
payable in accordance with Company policies; and

 

 

 

    	 	5	 

     

    

 

(iv)           
provided that the Release in Exhibit I becomes fully effective and irrevocable by its terms (which may be executed upon the Executive’s
death or Disability by his executor or estate, as applicable), any stock options, grants of common stock, restricted share grants or other
benefits under any of the Company’s compensation plans that were vested as of 5:00 PM New York time on the date immediately prior
to the date of termination, which may be exercised (in the case of options) or delivered (in the case of restricted stock) in accordance
with the terms of such plans and any applicable plan agreements with the Executive shall remain fully exercisable for the remainder of
their full term.

 

(b) For purposes of this Agreement,
the term “Disability” shall mean any disability, illness, or other incapacity that prevents the Executive from performing
services as contemplated by Section 2, for 60 or more consecutive days, or for an aggregate of 90 days in any consecutive 12-month period.
In such event, the Company shall have the right to terminate this Agreement upon 10 days’ prior written notice to the Executive.
During the period of any such disability, illness, or incapacity, (i) the obligation of the Company to pay Salary to the Executive pursuant
to Section 3 shall be reduced to the extent of any amount received by the Executive pursuant to any disability insurance policy maintained
and paid for by the Company or a subsidiary, and (ii) no bonus compensation or other employee benefits shall accrue or be earned or count
toward proration. Termination under this Section shall not prejudice any rights of the Executive under disability policies, if any, being
maintained by the Company for the Executive under the terms of this Agreement.

 

7. TERMINATION UPON EXPIRATION OF THE TERM

 

(a) The Executive’s employment
shall terminate upon the expiration of the Term unless renewed under Section 1. Upon such termination, the Executive shall be entitled
to receive, and his sole remedies under this Agreement shall be:

 

(i)              
any earned and unpaid Salary accrued through the date of termination, payable in a lump sum not later than 15 days following the
Executive’s termination of employment;

 

(ii)             
compensation for any unused PTO days accrued as of date of termination occurs through the date of termination, payable as in clause
(i) of this Section 7(a);

 

(iii)           
any unpaid benefits accrued through the date of termination that may be due the Executive under any employee benefit plans or programs
of the Company, payable in accordance with the terms of such plans or programs, together with any documented, unreimbursed business expenses,
payable in accordance with Company policies; and

 

(iv)           
provided that the Release in Exhibit I becomes fully effective and irrevocable by its terms, any stock options, grants of common
stock, restricted share grants or other benefits under any of the Company’s compensation plans that were vested as of 5:00 PM New
York time on the date immediately prior to the date of termination, which may be exercised (in the case of options) or delivered (in the
case of restricted stock) in accordance with the terms of such plans and any applicable plan agreements with the Executive.

 

8. OBLIGATIONS UPON TERMINATION, ETC.

 

(a)   
Upon the termination of employment for any reason hereunder, all provisions of this Agreement shall terminate except for Sections
8, 9, 10 and 11 of this Agreement and the provisions contained in Exhibit I hereto, the terms of which shall survive such termination,
and the Company shall have no further obligation to the Executive hereunder, except as herein and therein expressly provided. The Company
shall comply with the terms of settlement of all deferred compensation arrangements to which the Executive is a party in accordance with
his duly executed deferral election forms and plan provisions.

 

(b)   
Subject to Sections 1 and 7, in the event of a termination of employment by the Executive on his own initiative during the Term
or any renewal thereof by delivery of written notice of such resignation 10 business days in advance, other than due to Disability or
termination for Good Reason, the Executive shall have the same entitlements as provided in Section 4, Termination by the Company for Cause.

 

 

 

    	 	6	 

     

    

 

(c)   
In the event of a termination of employment, payment made and performance by the Company in accordance with the provisions of Section
4, 5, 6, or 7 as the case may be, and this Section 8 shall operate to fully discharge and release the Company, its subsidiaries, its affiliates,
and their respective directors, officers, employees, shareholders, successors, assigns, agents, and representatives (all of the foregoing
collectively, the “releasees”) from any further obligation or liability with respect to the Executive’s rights under
this Agreement. Other than payment and performance as aforesaid, none of the releasees shall have any further obligation or liability
to the Executive or any other person or entity arising out of termination of the Executive’s employment under this Agreement except
as expressly set forth in Exhibit I hereto. The Company’s payment of any severance or other amounts pursuant to Section 4, 5, 6,
7, or 8 shall be subject to delivery by the Executive to the Company of a release in form and substance satisfactory to the Company releasing
any and all claims the Executive, his estate, representatives, and assigns may have against the Company and any other releasee arising
out of this Agreement, as substantially set forth in Exhibit I hereto.

 

9. COVENANTS

 

(a) The Executive agrees that during
the Term, any renewal thereof, and for a 6-month period after expiration or termination of the Term or any renewal thereof (except in
the case of clause (a)(i) of this Section 9, as to which the Executive’s covenant shall not be limited in time), the Executive shall
not, without the express prior written consent of the Board, directly or indirectly, either individually or as an employee, officer, director,
agent, partner, shareholder, consultant, option holder, joint venture, contractor, nominee, lender, guarantor, investor, owner, or in
any other capacity:

 

(i) except as required in the course
of performing his duties hereunder, disclose, copy, divulge, furnish, distribute or make available in any medium whatsoever to any firm,
company, corporation, organization, or other entity or person (including but not limited to actual or potential customers or competitors
or government officials), or otherwise misappropriate trade secrets, intellectual property, or other confidential or non-public information
of or concerning the Company, its subsidiaries or the business of any of the foregoing, including without limitation, customer lists,
product designs and product know-how, launch information or plans pertaining to Company, its subsidiaries or customer products, arrangements
for supplying customers, methods of operation and organization, sources of supply and arrangements with vendors, product development,
business plans and strategies (collectively, “Confidential Information”); provided, however, the Executive may make disclosures
as and to the extent required by applicable law or compelled upon court or administrative order, provided, further, however, that in the
event that the Executive is so required or compelled to disclose Confidential Information, he shall notify the Company not fewer than
10 business days in advance of such disclosure in order to afford it the reasonable opportunity to obtain a protective order or other
remedy to limit the scope of such disclosure (it being understood and agreed that, if such disclosure is required by applicable law, the
Executive shall upon the Company’s request furnish the source and precedents with respect to such requirement) and that in such
event the Executive will furnish only that portion of the Confidential Information which he is reasonably advised in writing by his counsel
is legally required and will exercise all reasonable efforts to obtain reliable assurance that confidential treatment will be accorded
the Confidential Information to the extent possible. For purposes of this Section 9, information shall not be deemed confidential if it
is within the public domain or becomes publicly known other than through disclosure by the Executive in violation of this provision;

 

(ii)             
own (or have any financial interest in, actual, contingent or otherwise), control, manage, operate, participate, engage in, invest
in or otherwise have any interest in, or otherwise be connected with, in any manner, any firm, company, corporation, organization, business,
enterprise, venture or other entity, association or person that is engaged in the business actually engaged in by the Company or its subsidiaries
during the Term or any renewal thereof, including without limitation the Company Business (as hereinafter defined);

 

(iii)            
solicit, employ or retain or arrange, encourage, facilitate or assist to have any other firm, company, corporation, organization,
business, enterprise, venture or other entity, association or person solicit, employ, retain, or otherwise participate in the employment
or retention of, any person who is then, or who has been, within the preceding six months, an employee, consultant, sales representative,
technician or engineer of the Company, its subsidiaries, or joint venture counterparties.

 

(iv)            
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, association, business, enterprise, venture or other entity, or person that does or proposes to do any one or more of the
following as it relates to of the Company Business: (a)(i) engage in, do, or solicit business with, or (ii) interfere with or affect the
Company’s (or any subsidiary’s) business opportunities with, any of the customers with whom the Company (or any subsidiary)
has done business with during the most recent two years, or (b)(i) engage in, do, or solicit business with, or (ii) interfere with or
affect the Company’s (or any subsidiary’s) business opportunities with, any of the vendors with whom the Company (or any subsidiary)
has done business with during the most recent two years.

 

 

 

    	 	7	 

     

    

 

The term “Company Business”
shall mean, at the date of the determination, the business of IPS and/or the design, engineering, development and manufacturing of products
and technology as presently conducted or contemplated by the Company and its subsidiaries as described in the Company’s most recent
Form 10-K as updated by its most recent Form 10-Q, each as filed with the Securities and Exchange Commission. Nothing in this Section
9 shall be deemed to prohibit the Executive from the acquisition or holding of, solely as a passive stockholder, not more than 1% of the
shares or other securities of a publicly owned corporation if such securities are traded on a national securities exchange.

 

(v) Notice of Immunity Under the Economic
Espionage Act of 1996, as amended by the Defend Trade Secrets Act of 2016. Notwithstanding any other provision of this Agreement: (A)
The Executive will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade
secret that: (1) is made (X) in confidence to a federal, state, or local government official, either directly or indirectly, or to an
attorney; and (Y) solely for the purpose of reporting or investigating a suspected violation of law; or (2) is made in a complaint or
other document filed under seal in a lawsuit or other proceeding. (B) If the Executive files a lawsuit for retaliation by the Company
for reporting a suspected violation of law, the Executive may disclose the Company's trade secrets to the Executive's attorney and use
the trade secret information in the court proceeding if the Executive: (1) files any document containing trade secrets under seal; and
(2) does not disclose trade secrets, except pursuant to court order.

 

(b)
The Executive, on the one hand, and the Company on the other hand, agree that they will not, directly or indirectly, make disparaging
remarks about the other party, including any of its subsidiaries, or their owners, officers, directors or employees, in their individual
and representative capacities, or the Company Business. The parties will not, directly or indirectly, 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 disparaging, offensive, or prejudicial manner, the other party.

 

“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 goodwill. This Section will not be construed to prevent the parties from complying with any lawfully served and binding subpoena, provided
however, that the party forwards a copy of said subpoena(s) to the other party within 24 hours of receipt of the same, unless expressly
prohibited by law or by order of a court of competent jurisdiction from doing so.

 

(c) 
Upon the expiration or termination of this Agreement for any reason, the Executive shall promptly deliver to the Company all documents,
papers and records in his possession relating to the business or affairs of the Company or any subsidiary and that he obtained or received
in his capacity as an employee or officer of the Company or any subsidiary or Affiliate and any other Company or subsidiary property or
equipment in his possession or control.

 

(d)
The Executive agrees that the Executive will cooperate with the Company, its subsidiaries, and each of their respective attorneys or other
legal representatives (“Company attorneys”) in connection with any claim, litigation, or judicial or arbitration proceeding
which is now pending or may hereinafter be brought against the Company or any of its subsidiaries by any third party. The Executive’s
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 the Executive’s knowledge of matters at issue and recollection of events; (ii) appearance
by the Executive as a witness at depositions or trials, without necessity of a subpoena, in order to state truthfully the Executive’s
knowledge of matters at issues; and (iii) signing, upon the request of Company attorneys, declaration or affidavits that truthfully state
matters of which the Executive has knowledge. The Company shall reimburse the Executive for the Executive’s actual and reasonable
travel expenses which have been approved by the Company in writing in advance of the Executive incurring them in complying with the Executive’s
obligations pursuant to this Section.

 

(e) 
In the event that either party shall violate or be in violation of any provision of this Section 9 (which provisions the parties
hereby acknowledge are reasonable and equitable), in addition to the parties right to exercise any and all remedies, legal and equitable,
which it may have under applicable laws, the Executive shall not be entitled to any, and hereby waives any and all rights to, each and
every, termination payment or benefit under this Agreement.

 

(f) Nothing contained in this Agreement shall
be construed to prevent the Executive from reporting any act or failure to act to the Securities and Exchange Commission or other governmental
body or prevent the Employee from obtaining a fee as a “whistleblower” under Rule 21F-17(a) under the Securities and Exchange
Act of 1934 or other rules or regulations implemented under the Dodd-Frank Wall Street Reform Act and Consumer Protection Act.

 

 

 

    	 	8	 

     

    

 

10. SEVERABILITY

 

The Executive acknowledges and agrees that the
provisions of Section 9 hereof constitute independent, separable and severable covenants, for which the Executive is receiving consideration,
which shall survive the termination of employment, and which shall be enforceable by the Company notwithstanding any rights or remedies
the Company may have under any other provision hereof.

 

11. SPECIFIC PERFORMANCE

 

(a) The Executive acknowledges and agrees that:

 

(i)              
the services to be rendered and covenants to be performed under this Agreement are of a special and unique character and that the
Company and any subsidiary would be irreparably harmed if such services were lost to it or if the Executive breached its obligations and
covenants hereunder;

 

(ii)             
the Company and its subsidiaries are relying on the Executive’s performance of the covenants contained herein, including,
without limitation, those contained in Section 9 above, as a material inducement for its entering into this Agreement;

 

(iii)           
the Company and its subsidiaries may be damaged if the provisions hereof are not specifically enforced; and

 

(iv)           
the award of monetary damages may not adequately protect the Company and its subsidiaries in the event of a breach hereof by the
Executive.

 

(b) By virtue thereof, the Executive
agrees and consents that if the Executive breaches any of the provisions of this Agreement, the Company and its subsidiaries, in addition
to any other rights and remedies available under this Agreement or under applicable laws, shall (without any bond or other security being
required and without the necessity of proving monetary damages) be entitled to a temporary and/or permanent injunction to be issued by
a court of competent jurisdiction restraining the Executive from committing or continuing any violation of this Agreement, or any other
appropriate decree of specific performance. Such remedies shall not be exclusive and shall be in addition to any other remedy that the
Company and its subsidiaries may have.

 

12. MISCELLANEOUS

 

(a) Entire Agreement; Amendment. This
Agreement constitutes the entire employment agreement between the parties and may not be modified, amended or terminated (other than pursuant
to the terms hereof) except by a written instrument executed by the parties hereto. All other agreements, written or oral, between the
parties pertaining to the employment or remuneration of the Executive not specifically contemplated hereby or incorporated or merged herein
are hereby terminated and shall be of no further force or effect.

 

(b) Assignment; Successors. This Agreement
is not assignable by the Executive and any purported assignment by the Executive of the Executive’s rights and/or obligations under
this Agreement shall be null and void. Except as provided below, this Agreement may be assigned by the Company at any time, upon delivery
of written notice to the Executive, to any successor to the business of the Company, or to any subsidiary. In the event that another corporation
or other business entity becomes a Successor of the Company, then this Agreement may not be assigned to such Successor unless the Successor
shall assume and agree to perform this Agreement in the same manner and to the same extent as the Company would be required to perform
if there had been no Successor. The term “Successor” as used herein shall mean any corporation or other business entity that
succeeds to substantially all of the assets or conducts the business of the Company, whether directly or indirectly, by purchase, merger,
consolidation or otherwise. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors,
administrators, personal representatives, successors and permitted assigns.

 

 

 

    	 	9	 

     

    

 

(c) Waivers. No waiver of any breach
or default hereunder shall be considered valid unless in writing, and no such waiver shall be deemed a waiver of any subsequent breach
or default of the same or similar nature. The failure of any party to insist upon strict adherence to any term of this Agreement on any
occasion shall not operate or be construed as a waiver of the right to insist upon strict adherence to that term or any other term of
this Agreement on that or any other occasion.

 

(d) Provisions Overly Broad. In the
event that any term or provision of this Agreement shall be deemed by a court of competent jurisdiction to be overly broad in scope, duration
or area of applicability, the court considering the same shall have the power and hereby is authorized and directed to modify such term
or provision to limit such scope, duration or area, or all of them, so that such term or provision is no longer overly broad and to enforce
the same as so limited. Subject to the foregoing sentence, in the event that any provision of this Agreement shall be held to be invalid
or unenforceable for any reason, such invalidity or unenforceability shall attach only to such provision and shall not affect or render
invalid or unenforceable any other provision of this Agreement.

 

(e) Notices. Any notice permitted or
required hereunder shall be in writing and shall be deemed to have been given on the date of delivery or, if mailed by certified mail,
postage prepaid, return receipt requested, documented overnight courier, or by email, on the date mailed or emailed.

 

(i)              
If to the Executive to:

________________ (if delivered by any
other physical means). Email: ______________.com

 

(ii)             
If to the Company to:

 

700 Veterans Highway, Suite 100, Hauppague,
NY 11788

Email: twise@forwardindustries.com

 

With a copy to (which shall not constitute
notice):

Nason, Yeager, Gerson,
Harris & Fumero, P.A.

Attn: Brian Bernstein

3001 PGA Blvd., Suite
305

Palm Beach Gardens,
Florida 33410

Email: bbernstein@nasonyeager.com

 

(f) Law Governing; Jurisdiction and
Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of New York governing contracts made
and to be performed in New York without regard to conflict of law principles thereof. Any action or proceeding to enforce this Agreement
shall be brought only in a state or federal court located in the State of New York, County of Suffolk. The parties hereby irrevocably
submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum with respect to the maintenance of any
such action or proceeding in such venue.

 

(g)   
Survival. All obligations of the Company to the Executive and the Executive to the Company shall terminate upon the termination
of this Agreement, except as expressly provided herein. The provisions of Sections 8, 9, 10 and 11 shall survive termination of this Agreement.

 

(h)  
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and each party may become
a party hereto by executing a counterpart hereof. This Agreement and any counterpart so executed shall be deemed to be one and the same
instrument. It shall not be necessary in making proof of this Agreement or any counterpart hereof to produce or account for any of the
other counterparts. Facsimile or electronic copies of this Agreement shall be of the same force and effect as the original.

 

 

 

    	 	10	 

     

    

 

(i)    
Approval. This Agreement is subject to prior review and approval of the Compensation Committee of the Company’s Board.

 

(j)    
Headings. The headings in this Agreement are for convenience of reference only.

 

(k)   
Representation. The Executive represents and warrants to the Company, and the Executive acknowledges that the Company has relied
on such representations and warranties in offering to employ the Executive, that neither the Executive’s duties as an employee of
the Company nor his performance of this Agreement will breach any other agreement to which the Executive is a party, including without
limitation, any agreement limiting the use or disclosure of any information acquired by the Executive prior to his employment by the Company.
In addition, the Executive represents and warrants and acknowledges that the Company has relied on such representations and warranties
in employing the Executive that he has not entered into, and will not enter into, any agreement, either oral or written, in conflict herewith.
If it is determined that the Executive is in breach or has breached any of the representations set forth herein, the Company shall have
the right to terminate the Executive’s employment for Cause.

 

13. Indemnification and Liability Insurance.
The Company shall indemnify and cover the Executive under the Company’s directors’ and officers’ liability insurance
during the Term in the same amount and to the same extent as the Company indemnifies and covers its other officers and directors.

 

 

IN WITNESS WHEREOF, the Company and
the Executive have executed this Agreement as of the date and year first above written.

 

THE EXECUTIVE

 

_________________________

EMAIL: __________________________.com

 

FORWARD INDUSTRIES, INC.

 

By:       [_________________] Terry Wise          Chief Executive
Officer

 

Address:

 

Email:

 

 

 

 

    	 	11	 

     

    

 

 

A-I

 

EXHIBIT I

 

1. 
Release. This Release of Claims (the “Release”) is entered into by you as a condition precedent to receiving the severance
and severance related benefits provided in the Employment Agreement to which this Exhibit I relates (the “Employment Agreement”).
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 affiliates,
and their respective predecessors and successors, as well as each of 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 affiliates or the termination of such 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 199
1, the Family Medical Leave Act of 1993 (FMLA), the America ns 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. Section s 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, the Florida Civil Rights Act, the Florida Whistleblower Protection Act, the Florida Workers Compensation
Retaliation provision, the Florida Minimum Wage Act, the Florida Fair Housing Act and Article X, Section 24 of the Florida Constitution,
(vi) any claim for wages, commissions, bonuses, incentive compensation, vacation pay, employee benefits, expenses or allowances of any
kind, or any other payment or compensation. You are not waiving any claims with respect to your rights to enforce Sections 5, 6 and 7
of the Employment Agreement. You are not waiving or releasing any rights or claims that may arise after the date that you sign this Release.

 

2. 
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 particular, this Release
shall not affect your right to the payment provided in Sections 5, 6 and 7 of the Employment Agreement.

 

3. No Suit. This Release does not impair
any rights you have to file a charge of discrimination with a federal or state administrative agency; provided, however, that you acknowledge
and agree that neither you nor your heirs, executors, administrators, successors or assigns will be entitled to any personal recovery
in any proceeding of any nature whatsoever against the Releasees arising out of any of the matters released in Section 1. You represent
and warrant that as of the date hereof, 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 or affiliate thereof,
and/or Releasees in any federal, state or local court, agency or investigative body.

 

4. 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 Release;

 

(b)
You are executing this Release freely and voluntarily;

 

 

 

    	 	12	 

     

    

 

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

 

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

 

(e) 
You have not, during the term of your employment under the Employment 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 covenants to be performed by you referred to or set forth in the Employment Agreement, nor are there any agreements, arrangements,
or understandings, written or oral, that would, if performed or acted upon, constitute such a violation;

 

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

 

(g) 
You have 21 days to consider this Release, although you may sign it sooner, and once you sign this Release, you have 7 days to
revoke your consent to this Release. Any such revocation shall be made in writing by hand delivery, email, or overnight courier so as
to be received by the Company prior to (or if by overnight courier, on or prior to) the 8th day following your execution of this Release;
and if no such revocation occurs, this Release shall become fully effective on the 8th day following your execution of this Release. In
the event that you do not sign within such 21-day period or you revoke your consent as permitted above, this Release shall be null and
void.

 

5. Employment Agreement. You further
acknowledge and agree that the following provisions of the Employment Agreement are incorporated by reference into this Release as if
fully set forth herein: 9 (Covenants), 10 (Severability), 11 (Specific Performance) and 12 (Miscellaneous). You hereby reaffirm such sections
and acknowledge and agree that such sections shall survive the termination of your employment for whatever reason and continue as set
forth in the Employment Agreement.

 

6. No Admission. This Release is not
an admission of any liability or wrongdoing by you, the Company and/or any Releasee.

 

7. No Reinstatement. By entering into
this Agreement, you acknowledge that you (i) waive any claim to reinstatement and/or future employment with the Company or any subsidiary
or affiliate and (ii) are not and shall not be entitled to any payments, benefits or other obligations from the Company or any subsidiary
or affiliate 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 Release.

 

 

 

	Executive:	__________________________________	Date: ____________________
	 	__________________________________	 
	 	 	 
	 	 	 

 

	FORWARD INDUSTRIES, INC.	 
	By:  [_____________________________________________]	Date: ______________________
	[Name]       [Position]	 
	 	 
	 	 

 

 

    	 	13

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