Forward Industries, Inc. — Director's Dealing 2010

Aug 16, 2010

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: FORWARD INDUSTRIES INC (FORD)
CIK: 0000038264
Period of Report: 2010-08-12

Reporting Person: SABRA DOUGLAS (former CEO and Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2010-08-12	Forward Industries Common Stock	M	10000	$2.02	Acquired	10000	Direct
2010-08-12	Forward Industries Common Stock	F	5722	$3.53	Disposed	30944	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2010-08-12	Forward Industries Common Stock Option	$2.02	M	10000	Disposed	2019-12-11	Forward Industries Common Stock (10000)	Direct

Footnotes

F1: The vesting of these options was accelerated to 8/10/2010 in conjunction with Mr. Sabra's Severance and Release Agreement. Orginal vesting of these shares were as follows:

3,334 vesting on 12/10/2010
3,333 vesting on 12/10/2011
3,333 vesting on 12/10/2012

F2: $3.53 represents the closing stock price of FORD on 8/12/2010, the date the net share exercise was submitted.

F3: 5,722 shares were withheld as payment of exercise price ($20,200) for 10,000 options (strike price of $2.02). The number of shares withheld was calculated using the closing stock price on the date of exercise, which was $3.53 on 8/12/2010.

F4: Consists of 4,278 shares (representing the net amount of shares issued from 8/12/2010 exercise of options) and 26,666 shares of restricted stock which became fully vested on 8/10/2010 in connection with Mr. Sabra's Seveance and Release Agreement.