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<title>Forward Industries Form 8-K </title>



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<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;<b><br>
UNITED STATES</b></p>

<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>SECURITIES AND EXCHANGE
COMMISSION</b></p>

<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>Washington</b><b>, </b><b>D.C.</b><b>
 </b><b>20549</b></p>
<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p>



<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>
<font size="4">FORM 8-K </font> </b></p>
<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p>



<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>CURRENT REPORT </b></p>
<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p>



<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>Pursuant to Section 13 OR 15(d) of </b></p>

<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>The Securities Exchange Act of 1934 </b></p>

<p style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;</p>

<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'>
<font size="2">Date of Report (Date of
earliest event reported) </font> </p>

<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>
<font size="2">November 30, 2006</font></b></p>
<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><br>
&nbsp;</p>



<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>
<font size="6">Forward Industries, Inc.</font></b></p>

<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>
<font size="2">(Exact name of registrant
as specified in its charter) </font> </b></p>





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  &nbsp;

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  padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">New York</font></b></p>
  </td>
  <td valign=bottom style='padding:0in 0in 0in 0in'>

  </td>
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  padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">000-6669</font></b></p>
  </td>
  <td valign=bottom style='padding:0in 0in 0in 0in'>

  </td>
  <td valign=bottom style='border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">13-1950672</font></b></p>
  </td>
 </tr>
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  <td valign=top style='padding:0in 0in 0in 0in'>
  <p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>
  <font size="2">(State or Other
  Jurisdiction</font></b></p>
  <p align=center style='margin-top:0in;margin-right:0in;margin-bottom:.75pt;
  margin-left:0in;text-align:center'><b><font size="2">of Incorporation)</font></b></p>
  </td>
  <td valign=bottom style='padding:0in 0in 0in 0in'>

  </td>
  <td valign=top style='padding:0in 0in 0in 0in'>
  <p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>
  <font size="2">(Commission</font></b></p>
  <p align=center style='margin-top:0in;margin-right:0in;margin-bottom:.75pt;
  margin-left:0in;text-align:center'><b><font size="2">File Number)</font></b></p>
  </td>
  <td valign=bottom style='padding:0in 0in 0in 0in'>

  </td>
  <td valign=top style='padding:0in 0in 0in 0in'>
  <p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>
  <font size="2">(IRS Employer</font></b></p>
  <p align=center style='margin-top:0in;margin-right:0in;margin-bottom:.75pt;
  margin-left:0in;text-align:center'><b><font size="2">Identification No.)</font></b></p>
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  &nbsp;</td>
  <td width="1%" valign=bottom style='width:1.0%;padding:0in 0in 0in 0in'>

  </td>
  <td width="47%" style='width:47.0%;padding:0in 0in 0in 0in'>

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  &nbsp;

  </td>
  <td width="1%" valign=bottom style='width:1.0%;padding:0in 0in 0in 0in'>

  &nbsp;</td>
  <td width="47%" style='width:47.0%;padding:0in 0in 0in 0in'>

  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 0in 0in 0in'>
  <p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>
  <font size="2">1801 Green Road, Suite E</font></b></p>
  <p align=center style='margin-top:0in;margin-right:0in;margin-bottom:.75pt;
  margin-left:0in;text-align:center'><b><font size="2">Pompano Beach</font></b><font size="2"><b>, FL</b></font><b><font size="2">
  </font> </b></p>
  </td>
  <td valign=bottom style='padding:0in 0in 0in 0in'>

  </td>
  <td valign=bottom style='border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">33064</font></b></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">(Address of principal executive offices)</font></b></p>
  </td>
  <td valign=bottom style='padding:0in 0in 0in 0in'>

  </td>
  <td valign=top style='padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">(Zip&nbsp;Code)</font></b></p>
  </td>
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  &nbsp;</td>
  <td valign=bottom style='padding:0in 0in 0in 0in'>

  &nbsp;</td>
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  &nbsp;</td>
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<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'>
<font size="2">Registrant's telephone
number, including area code </font> </p>

<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>
<font size="2">(954) 419-9544 </font> </b></p>





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  &nbsp;</td>
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  <td nowrap valign=top style='padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><b>(Former name or former address, if changed since last
  report)</b></p>
  </td>
 </tr>
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  <td nowrap valign=top style='padding:0in 0in 0in 0in'>
  &nbsp;
  </td>
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<p style='margin:0in;margin-bottom:.0001pt'>Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions: </p>
<p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p>



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  <p class=MsoNormal><font face="Wingdings">o</font></p>
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  <td valign=top style='padding:0in 0in 0in 0in'>
  <p class=MsoNormal>Written communications
  pursuant to Rule 425 under the Securities Act (17 CFR 230.425) <br>
&nbsp;</p>
  </td>
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  <p class=MsoNormal><font face="Wingdings">o</font></p>
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  <td valign=top style='padding:0in 0in 0in 0in'>
  <p class=MsoNormal>Soliciting material
  pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) <br>
&nbsp;</p>
  </td>
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  <p class=MsoNormal>Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
  240.14d-2(b)) <br>
&nbsp;</p>
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  <p class=MsoNormal>Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
  240.13e-4(c)) <br>
&nbsp;</p>
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<p style='margin:0in;margin-bottom:.0001pt'><b>&nbsp;</b></p>

<p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt'><b>Item 5.02(E) DEPARTURE OF
DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN
OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS</b></p>

<p style='text-indent:24.5pt'>&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; On Thursday,
November 30, 2006, the Compensation Committee of the Board of Directors of Forward
Industries, Inc. (the &quot;Company&quot;) approved the terms of the financial formula
that will determine the amount, if any, of bonus compensation in respect of the
fiscal year ending September 30, 2007, that can be earned by the Company's
three most highly compensated executive officers under their respective
employment agreements. &nbsp;Mr. Jerome E. Ball, the Company's Chairman and
Principal Executive Officer, Mr. Michael M. Schiffman, the Company's President
and Principal Operating Office, and Mr. Douglas W. Sabra, the Company's Vice
President and Principal Financial and Accounting Officer (collectively, such
officers are referred to in this Current Report as the &quot;named executive
officers&quot;), are each party to an employment agreement with the Company entered
into effective October 1, 2005.</p>

<p style='text-indent:24.5pt'>Under
each of these agreements, Section 5(c) states that the executive is eligible to
earn bonus compensation in respect of each fiscal year of employment to the
extent to which, if any, the Company achieves all or a specified percentage of,
or exceeds, a specified Target, as determined each year by the Compensation
Committee.&nbsp; Section 5(c) goes on to state that &quot;Target&quot; means, in
effect, a specified threshold of pre-tax income, i.e., the Company's
consolidated net income, after giving effect to bonuses paid to employees
(including the named executive officers) but before extraordinary items, plus
income taxes, all as determined by reference to the results of operations set
forth in the Company's audited financial statements in respect of the fiscal
year for which bonus compensation is being calculated.</p>

<p style='text-indent:24.5pt'>For
the fiscal year ending September 30, 2007, the Compensation Committee has approved
the formula pursuant to which all three named executive officers may be
eligible to earn bonus compensation as follows:&nbsp; the bonus pool equals (A) a specified
percentage of the amount by which, if any, pre-tax income achieved by the
Company for such fiscal year exceeds 80% of the Target level until 125% of Target
level is reached <u>plus</u> (B) 5% of the amount by which, if any, pre-tax income
exceeds 125% of Target. &nbsp;&nbsp;</p>

<p style='text-indent:24.5pt'>The
total bonus pool, if any, will be allocated and paid as follows: 40% to Mr.
Ball; 30% to Mr. Schiffman; and 30% to Mr. Sabra.&nbsp; Based on this formula, Mr.
Ball, Mr. Schiffman, and Mr. Sabra are eligible to earn bonuses of
approximately $36,000, $27,000and $27,000 respectively, if pre-tax income equals
100% exactly of the Target level in the fiscal year ending September 30, 2007,
and a minimum of zero in each case, if pre-tax income fails to exceed 80% of
the Target level, all on a proportionally sliding scale.&nbsp; As set forth in the
formula above, the bonus pool may be greater, and the bonuses earned by the
named executive officers may be higher, if pre-tax income exceeds Target. </p>

<p style='text-indent:24.5pt'>Under
the previously disclosed terms of their agreements, Mr. Ball, Mr. Schiffman,
and Mr. Sabra are entitled to earn annual salary of $325,000, $325,000, and (as
amended) $225,000, respectively; no stock options or other equity compensation
was granted pursuant to any such agreement.&nbsp; The named executive officers are also
entitled to receive customary benefits including health, life and disability
insurance, auto allowances and participation in the Company's 401K retirement
plan.&nbsp; In addition to the foregoing, each named executive officers may, by
notice, terminate his agreement in the event that &quot;good cause&quot; (as defined in
his agreement) is established, in which case he would be entitled to receive
six months of his salary on the date of termination (at the rate in effect when
notice is given) plus the amount of the bonus to which he would otherwise be
entitled, pro rated to the date of termination.</p>

<p style='text-indent:24.5pt'>The
named executive officers' employment agreements with the Company were entered
into effective October
 1, 2005,
and expire on December
 31, 2007,
except Mr. Sabra's agreement expires December 31, 2008.&nbsp;&nbsp; The agreements
provides for successive one-year renewal terms, unless either party provides
written notice of its intention not to renew the agreement not later than 90
days prior to the end of the term (or renewal period). If the Company gives
such notice, subject to certain conditions, the named executive officers would
be entitled to receive six months salary, at the rate then in effect, as
severance.</p>
<p style='text-indent:24.5pt'>&nbsp;</p>

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<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'>-1- </p>

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<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p>
<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>SIGNATURES </b></p>
<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>&nbsp;</b></p>



<p style='margin:0in;margin-bottom:.0001pt;text-indent:24.5pt'>Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized. </p>





<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'><b>Forward Industries Inc.,</b></p>

<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'><b>&nbsp;</b></p>





<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'><b>By</b>:</p>





<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'>/s/ Jerome E. Ball</p>

<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'>_______________________________________</p>



<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'><b>Name </b>Jerome
E. Ball</p>



<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'><b>Title:</b> Chairman
and Chief Executive Officer</p>



<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'><b>Dated:</b> December
1, 2006</p>
<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'>&nbsp;</p>
<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'>&nbsp;</p>
<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'>&nbsp;</p>
<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'>&nbsp;</p>
<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'>&nbsp;</p>
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<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'>-3- </p>

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<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'><u>&nbsp;</u></p>



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{"company-data": {"conformed-name": "FORWARD INDUSTRIES INC", "cik": "0000038264", "assigned-sic": "3089", "irs-number": "131950672", "state-of-incorporation": "NY", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-06669", "film-number": "061249632"}, "business-address": {"street1": "1801 GREEN ROAD", "street2": "SUITE E", "city": "POMPANO BEACH", "state": "FL", "zip": "33064", "phone": "9544199544"}, "mail-address": {"street1": "1801 GREEN RD", "street2": "SUITE E", "city": "POMPANO BEACH", "state": "FL", "zip": "33064"}, "former-company": {"former-conformed-name": "PROGRESS HEAT SEALING CO INC", "date-changed": "19721111"}}
Forward Industries Form 8-K
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington
,
D.C.
20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of
earliest event reported)
November 30, 2006
Forward Industries, Inc.
(Exact name of registrant
as specified in its charter)
New York
000-6669
13-1950672
(State or Other
  Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
1801 Green Road, Suite E
Pompano Beach
, FL
33064
(Address of principal executive offices)
(Zip Code)
Registrant's telephone
number, including area code
(954) 419-9544
(Former name or former address, if changed since last
  report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:
o
Written communications
  pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material
  pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
  240.14d-2(b))
o
Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
  240.13e-4(c))
Item 5.02(E) DEPARTURE OF
DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN
OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS
(e)                 On Thursday,
November 30, 2006, the Compensation Committee of the Board of Directors of Forward
Industries, Inc. (the "Company") approved the terms of the financial formula
that will determine the amount, if any, of bonus compensation in respect of the
fiscal year ending September 30, 2007, that can be earned by the Company's
three most highly compensated executive officers under their respective
employment agreements.  Mr. Jerome E. Ball, the Company's Chairman and
Principal Executive Officer, Mr. Michael M. Schiffman, the Company's President
and Principal Operating Office, and Mr. Douglas W. Sabra, the Company's Vice
President and Principal Financial and Accounting Officer (collectively, such
officers are referred to in this Current Report as the "named executive
officers"), are each party to an employment agreement with the Company entered
into effective October 1, 2005.
Under
each of these agreements, Section 5(c) states that the executive is eligible to
earn bonus compensation in respect of each fiscal year of employment to the
extent to which, if any, the Company achieves all or a specified percentage of,
or exceeds, a specified Target, as determined each year by the Compensation
Committee.  Section 5(c) goes on to state that "Target" means, in
effect, a specified threshold of pre-tax income, i.e., the Company's
consolidated net income, after giving effect to bonuses paid to employees
(including the named executive officers) but before extraordinary items, plus
income taxes, all as determined by reference to the results of operations set
forth in the Company's audited financial statements in respect of the fiscal
year for which bonus compensation is being calculated.
For
the fiscal year ending September 30, 2007, the Compensation Committee has approved
the formula pursuant to which all three named executive officers may be
eligible to earn bonus compensation as follows:  the bonus pool equals (A) a specified
percentage of the amount by which, if any, pre-tax income achieved by the
Company for such fiscal year exceeds 80% of the Target level until 125% of Target
level is reached
plus
(B) 5% of the amount by which, if any, pre-tax income
exceeds 125% of Target.
The
total bonus pool, if any, will be allocated and paid as follows: 40% to Mr.
Ball; 30% to Mr. Schiffman; and 30% to Mr. Sabra.  Based on this formula, Mr.
Ball, Mr. Schiffman, and Mr. Sabra are eligible to earn bonuses of
approximately $36,000, $27,000and $27,000 respectively, if pre-tax income equals
100% exactly of the Target level in the fiscal year ending September 30, 2007,
and a minimum of zero in each case, if pre-tax income fails to exceed 80% of
the Target level, all on a proportionally sliding scale.  As set forth in the
formula above, the bonus pool may be greater, and the bonuses earned by the
named executive officers may be higher, if pre-tax income exceeds Target.
Under
the previously disclosed terms of their agreements, Mr. Ball, Mr. Schiffman,
and Mr. Sabra are entitled to earn annual salary of $325,000, $325,000, and (as
amended) $225,000, respectively; no stock options or other equity compensation
was granted pursuant to any such agreement.  The named executive officers are also
entitled to receive customary benefits including health, life and disability
insurance, auto allowances and participation in the Company's 401K retirement
plan.  In addition to the foregoing, each named executive officers may, by
notice, terminate his agreement in the event that "good cause" (as defined in
his agreement) is established, in which case he would be entitled to receive
six months of his salary on the date of termination (at the rate in effect when
notice is given) plus the amount of the bonus to which he would otherwise be
entitled, pro rated to the date of termination.
The
named executive officers' employment agreements with the Company were entered
into effective October
 1, 2005,
and expire on December
 31, 2007,
except Mr. Sabra's agreement expires December 31, 2008.   The agreements
provides for successive one-year renewal terms, unless either party provides
written notice of its intention not to renew the agreement not later than 90
days prior to the end of the term (or renewal period). If the Company gives
such notice, subject to certain conditions, the named executive officers would
be entitled to receive six months salary, at the rate then in effect, as
severance.
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SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
Forward Industries Inc.,
By
:
/s/ Jerome E. Ball
_______________________________________
Name
Jerome
E. Ball
Title:
Chairman
and Chief Executive Officer
Dated:
December
1, 2006
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