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



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<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p>
<p align=center style='text-align:center; margin-left:0pt; margin-right:0pt'><b>UNITED STATES<br>
SECURITIES AND EXCHANGE
COMMISSION<br>
Washington, D.C. 20549</b></p>



<p align=center style='text-align:center; margin-left:0pt; margin-right:0pt'><b>
<font size="4">FORM 8-K </font> </b></p>



<p align=center style='text-align:center; margin-left:0pt; margin-right:0pt'><b>CURRENT REPORT </b></p>



<p align=center style='text-align:center; margin-left:0pt; margin-right:0pt'><b>Pursuant to Section 13 OR 15(d) of
<br>
The Securities Exchange Act of 1934 </b></p>

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

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

<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>
<font size="2">December 27, 2005 </font></b></p>
<p align=center style='text-align:center; margin-left:0pt; margin-right:0pt'><b>
<font size="5">Forward Industries, Inc.<br>
</font><font size="1">(Exact name of registrant
as specified in its charter) </font></b></p>





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  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">New York</font></b></p>
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  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">000-6669</font></b></p>
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  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">13-1950672</font></b></p>
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  <p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>
	<font size="2">(State or Other
  Jurisdiction</font></b></p>
  <p align=center style='margin-top:0pt;margin-right:0pt;margin-bottom:.75pt;
  margin-left:0pt;text-align:center'><b><font size="2">of Incorporation)</font></b></p>
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	<font size="2">(Commission</font></b></p>
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  margin-left:0pt;text-align:center'><b><font size="2">File Number)</font></b></p>
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	<font size="2">(IRS Employer</font></b></p>
  <p align=center style='margin-top:0pt;margin-right:0pt;margin-bottom:.75pt;
  margin-left:0pt;text-align:center'><b><font size="2">Identification No.)</font></b></p>
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  <font size="2">&nbsp;&nbsp; </font>

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  &nbsp;

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  &nbsp;</td>
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  &nbsp;</td>
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  <p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>
	<font size="2">1801 Green Road, Suite E</font></b></p>
  <p align=center style='margin-top:0pt;margin-right:0pt;margin-bottom:.75pt;
  margin-left:0pt;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>
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  padding:0pt 0pt 0pt 0pt'>
  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">33064</font></b></p>
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  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">(Address of principal executive offices)</font></b></p>
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  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">(Zip&nbsp;Code)</font></b></p>
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<font size="2">&nbsp;</font></p>
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<font size="2">Registrant's telephone
number, including area code </font> </p>

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





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  &nbsp;

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  &nbsp;

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  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">(Former name or former address, if changed since last
  report)</font></b></p>
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<p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p>
<p style='margin:0pt;margin-bottom:.0001pt'><font size="2">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: </font> </p>
<p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p>



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  <p class=MsoNormal><font size="2">Written communications
  pursuant to Rule 425 under the Securities Act (17 CFR 230.425) <br>
&nbsp;</font></p>
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  pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) <br>
&nbsp;</font></p>
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  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
  240.14d-2(b)) <br>
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  <p class=MsoNormal><font size="2">Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
  240.13e-4(c)) <br>
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<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p>
<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>
<font size="2">INFORMATION TO BE
INCLUDED IN THIS REPORT</font></b></p>

<p style='margin:0pt;margin-bottom:.0001pt'><b><font size="2">&nbsp;</font></b></p>

<p style='margin-left:0pt; margin-right:0pt'><b><font size="2">Section 1 - REGISTRANT'S BUSINESS AND OPERATIONS</font></b></p>

<p style='margin-left:0pt; margin-right:0pt'><b><font size="2">Item 1.01 Entry into a Material Definitive
Agreement</font></b></p>



<p class=MsoNormal><font size="2">On December 27, 2005, upon the recommendation of the Compensation Committee of
the Board of Directors, Forward Industries, Inc. (the &quot;Company&quot;) entered
into new Employment Agreements with each of Mr. Jerome E. Ball (the &quot;Ball
Agreement&quot;) and Mr. Michael M. Schiffman (the &quot;Schiffman Agreement&quot;). The
employment term of these agreements, which terminate and replace the existing
agreements between the Company and each such officer, runs from the effective
date thereof, October 1, 2005, until December 31, 2007, unless otherwise
terminated or extended pursuant to the terms of each agreement.&nbsp; The following
summaries of certain provisions of the Ball Agreement and the Schiffman
Agreement are qualified in their entirety by reference to each agreement, filed
as Exhibits 10.1 and 10.2, respectively, hereto and incorporated herein by
reference.</font></p>



<p class=MsoNormal><font size="2">The Ball Agreement provides
that Mr. Ball be employed as the Company's Chairman and Chief Executive Officer
for the term of the agreement at an annual salary of $325,000. Under the
terminated agreement, Mr. Ball was entitled to salary of $230,000 per annum and
was eligible to earn bonus compensation.&nbsp; </font> </p>



<p class=MsoNormal><font size="2">The Schiffman Agreement
provides that Mr. Schiffman be employed as the Company's President and Chief
Operating Officer for the term of the agreement at an annual salary of
$325,000. Under the terminated agreement, Mr. Schiffman was entitled to salary
of $300,000 per annum and was eligible to earn bonus compensation.&nbsp; </font> </p>



<p class=MsoNormal><font size="2">Under their agreements, each
of Mr. Ball and Mr. Schiffman have the opportunity to earn bonus compensation (subject
to pro ration) in respect of each fiscal year during which they are employed by
the Company based upon annual targets established by the Compensation Committee
of the Board of Directors.&nbsp; </font> </p>



<p class=MsoNormal><font size="2">As disclosed pursuant to a
Form 8-K filing on July 12, 2005, the employment agreement of Douglas W. Sabra,
the Company's Vice President and Chief Financial Officer, was amended to
increase his salary and extend the employment term until
December 31, 2008.&nbsp; On December 27, 2005, the terms of this employment
agreement were restated in order to conform the terms of his bonus eligibility
and other customary terms and conditions to those contained in the Ball and Schiffman
Agreements.&nbsp; No other material changes were made to that agreement, the terms
of which are qualified in their entirety by reference to such agreement filed
as Exhibit 10.3 hereto and incorporated herein by reference.</font></p>



<p style='margin-left:0pt; margin-right:0pt'><b><font size="2">Section
9 - FINANCIAL STATEMENTS AND EXHIBITS</font></b></p>

<p style='margin-left:0pt; margin-right:0pt'><b><font size="2">Item 9.01 Financial Statements and Exhibits.</font></b></p>



<p class=MsoNormal><font size="2">(c) Exhibits.</font></p>



<table border="0" width="100%" id="table1" cellspacing="3" cellpadding="4">
	<tr>
		<td valign="top"><font size="2">10.1</font></td>
		<td valign="top">



<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>
<font size="2">Employment Agreement
between the Company and Jerome E. Ball dated December 27, 2005 and effective October 1, 2005.</font></p>



		</td>
	</tr>
	<tr>
		<td valign="top"><font size="2">10.2</font></td>
		<td valign="top">



<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>
<font size="2">Employment Agreement
between the Company and Michael M. Schiffman dated December 27, 2005 and effective October 1, 2005.</font></p>



		</td>
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	<tr>
		<td valign="top"><font size="2">10.3</font></td>
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<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>
<font size="2">Employment Agreement
between the Company and Douglas W. Sabra dated December 27, 2005 and effective October 1, 2005.</font></p>
		<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>&nbsp;</p>
		<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>&nbsp;</p>



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

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<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p>
<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>
<font size="2">SIGNATURES </font> </b></p>



<p style='margin:0pt;margin-bottom:.0001pt;text-indent:24.5pt'><font size="2">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. </font> </p>





<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'><b>
<font size="2">Forward Industries Inc.,</font></b></p>

<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'><b>
<font size="2">&nbsp;</font></b></p>





<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'><b>
<font size="2">By</font></b><font size="2">:</font></p>





<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>
<font size="2">/s/ Jerome E. Ball</font></p>

<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>
<font size="2">_______________________________________</font></p>



<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'><b>
<font size="2">Name </font> </b><font size="2">Jerome
E. Ball</font></p>



<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'><b>
<font size="2">Title:</font></b><font size="2"> Chairman
and Chief Executive Officer</font></p>



<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'><b>
<font size="2">Dated:</font></b><font size="2"> December 28 , 2005</font></p>
<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>&nbsp;</p>
<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>&nbsp;</p>
<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>&nbsp;</p>
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<font size="2">-2- </font> </p>

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<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>
<font size="2">EXHIBIT INDEX </font> </b></p>
<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p>
<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p>

<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'><b><u>
<font size="2">Exhibit No.</font></u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font> <u><font size="2">Description</font></u></b></p>

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		<td valign="top" align="left"><font size="2">10.1</font></td>
		<td valign="top" width="1010">



<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>
<font size="2">Employment Agreement
between the Company and Jerome E. Ball dated December 27, 2005 and effective October 1, 2005.</font></p>



		</td>
	</tr>
	<tr>
		<td valign="top" align="left"><font size="2">10.2</font></td>
		<td valign="top" width="1010">



<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>
<font size="2">Employment Agreement
between the Company and Michael M. Schiffman dated December 27, 2005 and effective October 1, 2005.</font></p>



		</td>
	</tr>
	<tr>
		<td valign="top" align="left"><font size="2">10.3</font></td>
		<td valign="top" width="1010">



<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>
<font size="2">Employment Agreement
between the Company and Douglas W. Sabra dated December 27, 2005 and effective October 1, 2005.</font></p>
		<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>&nbsp;</p>
		<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>&nbsp;</p>
		<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>&nbsp;</p>
		<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>&nbsp;</p>
		<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>&nbsp;</p>
		<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>&nbsp;</p>
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<font size="2">-3- </font> </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": "051287862"}, "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 Inc. 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)
December 27, 2005
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))
INFORMATION TO BE
INCLUDED IN THIS REPORT
Section 1 - REGISTRANT'S BUSINESS AND OPERATIONS
Item 1.01 Entry into a Material Definitive
Agreement
On December 27, 2005, upon the recommendation of the Compensation Committee of
the Board of Directors, Forward Industries, Inc. (the "Company") entered
into new Employment Agreements with each of Mr. Jerome E. Ball (the "Ball
Agreement") and Mr. Michael M. Schiffman (the "Schiffman Agreement"). The
employment term of these agreements, which terminate and replace the existing
agreements between the Company and each such officer, runs from the effective
date thereof, October 1, 2005, until December 31, 2007, unless otherwise
terminated or extended pursuant to the terms of each agreement.  The following
summaries of certain provisions of the Ball Agreement and the Schiffman
Agreement are qualified in their entirety by reference to each agreement, filed
as Exhibits 10.1 and 10.2, respectively, hereto and incorporated herein by
reference.
The Ball Agreement provides
that Mr. Ball be employed as the Company's Chairman and Chief Executive Officer
for the term of the agreement at an annual salary of $325,000. Under the
terminated agreement, Mr. Ball was entitled to salary of $230,000 per annum and
was eligible to earn bonus compensation.
The Schiffman Agreement
provides that Mr. Schiffman be employed as the Company's President and Chief
Operating Officer for the term of the agreement at an annual salary of
$325,000. Under the terminated agreement, Mr. Schiffman was entitled to salary
of $300,000 per annum and was eligible to earn bonus compensation.
Under their agreements, each
of Mr. Ball and Mr. Schiffman have the opportunity to earn bonus compensation (subject
to pro ration) in respect of each fiscal year during which they are employed by
the Company based upon annual targets established by the Compensation Committee
of the Board of Directors.
As disclosed pursuant to a
Form 8-K filing on July 12, 2005, the employment agreement of Douglas W. Sabra,
the Company's Vice President and Chief Financial Officer, was amended to
increase his salary and extend the employment term until
December 31, 2008.  On December 27, 2005, the terms of this employment
agreement were restated in order to conform the terms of his bonus eligibility
and other customary terms and conditions to those contained in the Ball and Schiffman
Agreements.  No other material changes were made to that agreement, the terms
of which are qualified in their entirety by reference to such agreement filed
as Exhibit 10.3 hereto and incorporated herein by reference.
Section
9 - FINANCIAL STATEMENTS AND EXHIBITS
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits.
10.1
Employment Agreement
between the Company and Jerome E. Ball dated December 27, 2005 and effective October 1, 2005.
10.2
Employment Agreement
between the Company and Michael M. Schiffman dated December 27, 2005 and effective October 1, 2005.
10.3
Employment Agreement
between the Company and Douglas W. Sabra dated December 27, 2005 and effective October 1, 2005.
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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 28 , 2005
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EXHIBIT INDEX
Exhibit No.
Description
10.1
Employment Agreement
between the Company and Jerome E. Ball dated December 27, 2005 and effective October 1, 2005.
10.2
Employment Agreement
between the Company and Michael M. Schiffman dated December 27, 2005 and effective October 1, 2005.
10.3
Employment Agreement
between the Company and Douglas W. Sabra dated December 27, 2005 and effective October 1, 2005.
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