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



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<div style='page:Section1;'>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>

<hr size=3 width="100%" noshade color=black align=left>

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<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font><b>UNITED STATES</b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>SECURITIES AND EXCHANGE
COMMISSION</b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Washington, D.C. 20549</b></p>

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<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
<font size="4">FORM 8-K </font> </b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>CURRENT REPORT </b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Pursuant to Section 13 OR 15(d) of </b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>The Securities Exchange Act of 1934 </b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>Date of Report (Date of
earliest event reported) </p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>August 11, 2008</b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
<font size="5">Forward Industries, Inc.</font></b></p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="1">(Exact name of registrant
as specified in its charter) </font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font></p>

<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="95%"
 style='width:95.0%'>
 <tr>
  <td width="34%" style='width:34.0%;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="1%" valign=bottom style='width:1.0%;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="32%" style='width:32.0%;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="1%" valign=bottom style='width:1.0%;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="32%" style='width:32.0%;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'><b><font style="font-size: 10.0pt">New York</font></b></p>
  </td>
  <td valign=bottom style='padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 7.5pt">&nbsp;</font></p>
  </td>
  <td valign=bottom style='border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'><b><font style="font-size: 10.0pt">000-6669</font></b></p>
  </td>
  <td valign=bottom style='padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 7.5pt">&nbsp;</font></p>
  </td>
  <td valign=bottom style='border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'><b><font style="font-size: 10.0pt">13-1950672</font></b></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in 0in 0in 0in'>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>(State or Other
  Jurisdiction</b></p>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:0in;margin-right:0in;margin-bottom:.75pt;
  margin-left:0in;text-align:center'><b>of Incorporation)</b></p>
  </td>
  <td valign=bottom style='padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 7.5pt">&nbsp;</font></p>
  </td>
  <td valign=top style='padding:0in 0in 0in 0in'>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>(Commission</b></p>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:0in;margin-right:0in;margin-bottom:.75pt;
  margin-left:0in;text-align:center'><b>File Number)</b></p>
  </td>
  <td valign=bottom style='padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 7.5pt">&nbsp;</font></p>
  </td>
  <td valign=top style='padding:0in 0in 0in 0in'>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>(IRS Employer</b></p>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:0in;margin-right:0in;margin-bottom:.75pt;
  margin-left:0in;text-align:center'><b>Identification No.)</b></p>
  </td>
 </tr>
</table>

</div>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font></p>

<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="75%"
 style='width:75.0%'>
 <tr>
  <td width="52%" style='width:52.0%;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="1%" valign=bottom style='width:1.0%;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="47%" style='width:47.0%;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 0in 0in 0in'>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>1801 Green Road, Suite E</b></p>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:0in;margin-right:0in;margin-bottom:.75pt;
  margin-left:0in;text-align:center'><b>Pompano Beach, FL </b></p>
  </td>
  <td valign=bottom style='padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 7.5pt">&nbsp;</font></p>
  </td>
  <td valign=bottom style='border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'><b><font style="font-size: 10.0pt">33064</font></b></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'><b><font style="font-size: 7.5pt">(Address of principal executive offices)</font></b></p>
  </td>
  <td valign=bottom style='padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 7.5pt">&nbsp;</font></p>
  </td>
  <td valign=top style='padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'><b><font style="font-size: 7.5pt">(Zip&nbsp;Code)</font></b></p>
  </td>
 </tr>
</table>

</div>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>Registrant&#146;s telephone
number, including area code </p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>(954) 419-9544 </b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font></p>

<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="80%"
 style='width:80.0%'>
 <tr>
  <td width="100%" style='width:100.0%;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='border:none;border-bottom:solid black 1.0pt;padding:
  0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 7.5pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td nowrap valign=top style='padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'><b><font style="font-size: 7.5pt">(Former name or former address, if changed since last
  report)</font></b></p>
  </td>
 </tr>
</table>

</div>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'>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-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="100%"
 style='width:100.0%;border-collapse:collapse'>
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  <td width="6%" valign=top style='width:6.0%;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Wingdings";margin-left:0in; margin-right:0in; margin-top:0in'>
	o</p>
  </td>
  <td valign=top style='padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Written communications
  pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </p>
  </td>
 </tr>
</table>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="100%"
 style='width:100.0%;border-collapse:collapse'>
 <tr>
  <td width="6%" valign=top style='width:6.0%;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Wingdings";margin-left:0in; margin-right:0in; margin-top:0in'>
	o</p>
  </td>
  <td valign=top style='padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Soliciting material
  pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </p>
  </td>
 </tr>
</table>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="100%"
 style='width:100.0%;border-collapse:collapse'>
 <tr>
  <td width="6%" valign=top style='width:6.0%;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Wingdings";margin-left:0in; margin-right:0in; margin-top:0in'>
	o</p>
  </td>
  <td valign=top style='padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
  240.14d-2(b)) </p>
  </td>
 </tr>
</table>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="100%"
 style='width:100.0%;border-collapse:collapse'>
 <tr>
  <td width="6%" valign=top style='width:6.0%;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Wingdings";margin-left:0in; margin-right:0in; margin-top:0in'>
	o</p>
  </td>
  <td valign=top style='padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
  240.13e-4(c)) </p>
  </td>
 </tr>
</table>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>

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<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

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<div style='page:Section2;'>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><b><font style="font-size: 10.0pt">&nbsp;</font>Item
2.02 Results of Operations and Financial Condition. </b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-indent:24.5pt; margin-left:0in; margin-right:0in; margin-top:0in'>On Monday, August 11,
2008, the Company issued a press release announcing its results of operations
for the third fiscal quarter ended June 30, 2008.&nbsp; A copy of the press release
is attached as Exhibit 99.1.</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial Unicode MS";margin:0in;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:
0in;text-indent:24.5pt'>More
complete information relating to results of operations for the third fiscal
quarter is contained in the Company&#146;s Quarterly Report on Form 10-Q for the
three months ended June 30, 2008, filed with the Commission on August 11,
2008.&nbsp; </p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-bottom:12.0pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'><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='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:12.0pt;text-align:justify'><i><u><font style="font-size: 10.0pt">Amended and Restated Employment Agreement</font></u></i></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-indent:24.5pt; margin-left:0in; margin-right:0in; margin-top:0in'>Effective August 12,
2008, Douglas W. Sabra, the Company&#146;s Chief Executive Officer and Chairman of
the Board, entered into an Amended and Restated Employment Agreement (&#147;Amended
Agreement&#148;) with the Company.&nbsp; The Amended Agreement was approved by the
Compensation Committee of the Board of Directors.&nbsp; The terms of Mr. Sabra&#146;s
current compensation under his former employment agreement (&#147;Old Agreement&#148;)
are not modified by the Amended Agreement.</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial Unicode MS";margin:0in;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-indent:24.5pt; margin-left:0in; margin-right:0in; margin-top:0in'>The Amended Agreement
effects the following changes to the Old Agreement:&nbsp; The term of Mr. Sabra&#146;s
employment is extended one year to December 31, 2009, from December 31, 2008.&nbsp;
The formula for determining bonus compensation under the Amended Agreement,
which will affect his eligibility for earning bonus in the fiscal year ending September
30, 2009, has been modified to permit the Compensation Committee to set targets
that may or may not include pre-tax income, which was the benchmark under the
Old Agreement.</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial Unicode MS";margin:0in;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-indent:24.5pt; margin-left:0in; margin-right:0in; margin-top:0in'>Under the Amended
Agreement, a new provision relating to termination in the event of a change of
control (as defined in the Amended Agreement) of the Company has been added.&nbsp;
If Mr. Sabra&#146;s employment is terminated without cause, or if he terminates his
employment for good reason (as defined in the Amended Agreement), in either
case within one year of a change of control, he would receive severance equal
to 12 months of salary and immediate vesting of any unvested options and
restricted stock pursuant to applicable equity compensation plans.&nbsp; He would
not be able to terminate for good reason after a change of control as long as
he was one of the three most senior and highly compensated executives in the
entity that survives a business combination that results from a change of
control.</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial Unicode MS";margin:0in;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-indent:24.5pt; margin-left:0in; margin-right:0in; margin-top:0in'>Other provisions
relating to termination remain substantially the same from the Old Agreement,
while clarifying that in case of termination without cause (not in connection
with a change of control), Mr. Sabra would receive salary for the greater of
six months or the balance of the term remaining at the time of termination. </p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial Unicode MS";margin:0in;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-indent:24.5pt; margin-left:0in; margin-right:0in; margin-top:0in'>The Amended Agreement
binds Mr. Sabra to a customer non-solicitation covenant for one year following
the expiration of the employment term in addition to the confidentiality,
non-competition, and employee non-solicitation covenants that form part of the
Old Agreement and continue unchanged in the Amended Agreement. A copy of the
Amended Agreement is attached as Exhibit 10.1.</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial Unicode MS";margin:0in;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:12.0pt;text-align:justify'><i><u><font style="font-size: 10.0pt">New Employment Agreement</font></u></i></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-indent:24.5pt; margin-left:0in; margin-right:0in; margin-top:0in'>Effective August 12,
2008, James O. McKenna, the Company&#146;s Chief Financial Officer, entered into an
Employment Agreement (&#147;Agreement&#148;) with the Company that was authorized and
approved by the Compensation Committee of the Board.&nbsp; The terms of Mr.
McKenna&#146;s current compensation, salary of $175,000 per annum are not modified
by the terms of the Agreement.&nbsp; Under his Agreement, Mr. McKenna will be
eligible to earn bonus compensation based on achievement of targets set by the
Compensation Committee in respect of each fiscal year during the term.</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial Unicode MS";margin:0in;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=3 width="100%" noshade color="#999999" align=center>

</div>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>-1- </p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman">

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style='page-break-before:always'>


</font>


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=3 width="100%" noshade color="#999999" align=center>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-indent:24.5pt; margin-left:0in; margin-right:0in; margin-top:0in'>The term of the
Agreement expires December 31, 2009, and either party may give notice of
non-renewal not less than 90 days prior to that date.&nbsp; If the Company gives
such notice, Mr. McKenna is entitled to six months of severance for termination
without cause at his prevailing salary rate.&nbsp; He is also entitled to six months
of severance for termination without cause in circumstances other than
non-renewal and termination for good reason (as defined in the Agreement).&nbsp; If
Mr. McKenna&#146;s employment is terminated without cause, or if he terminates his employment
for good reason, in either case within one year of a change of control, he is
entitled to receive severance equal to 12 months of salary and immediate
vesting of any unvested options and restricted stock (or other unvested grants)
pursuant to Company equity compensation plans.&nbsp; He would not be able to
terminate for good reason after a change of control provided that is serving as
an executive in the financial department of the surviving entity that results
from a change of control.</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial Unicode MS";margin:0in;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-indent:24.5pt; margin-left:0in; margin-right:0in; margin-top:0in'>Under the Agreement, Mr.
McKenna is subject to the terms of restrictive covenants that prohibit him from
competing against the Company, soliciting its employees, or soliciting its
customers, in each case for a period one year after expiration of the term or
any renewal thereof.&nbsp; He is also bound not to disclose material, non-public
information pertaining to the Company after expiration of the term. A copy of
the Agreement is attached as Exhibit 10.2.</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial Unicode MS";margin:0in;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><b>Item 9.01. Financial
Statements and Exhibits. </b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 10.0pt">&nbsp;</font></p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>(d) Exhibits.</p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Exhibit 99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Press release issued on August
11, 2008</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:1.0in;text-indent:-1.0in'>Exhibit 10.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amended
and Restated Employment Agreement between the Company and Douglas W. Sabra,
dated August 12, 2008</p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:1.0in;text-indent:-1.0in'>Exhibit 10.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employment
Agreement between the Company and James O. McKenna, dated August 12, 2008</p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in'><font style="font-size: 10.0pt">&nbsp;</font></p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=3 width="100%" noshade color="#999999" align=center>

</div>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>-1- </p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

</div>

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style='page-break-before:always'>


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<div style='page:Section3;'>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=3 width="100%" noshade color="#999999" align=center>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>SIGNATURES </b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 7.5pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-indent:24.5pt; margin-left:0in; margin-right:0in; margin-top:0in'>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 style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in'><font style="font-size: 10.0pt">&nbsp;</font></p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in; margin-right:0in; margin-top:0in'><b>Forward Industries Inc.,</b></p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in'><b>
<font size="3">By</font></b><font size="3">:</font></p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in; margin-right:0in; margin-top:0in'>/s/ Douglas W. Sabra</p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in; margin-right:0in; margin-top:0in'>_______________________________________</p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in'><b>
<font size="3">Name </font></b><font size="3">Douglas
W. Sabra</font></p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in'><b>
<font size="3">Title:</font></b><font size="3"> Chief
Executive Officer</font></p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in'><b>
<font size="3">Dated:</font></b><font size="3"> August
12, 2008</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=3 width="100%" noshade color="#999999" align=center>

</div>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>-2- </p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

</div>

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<div style='page:Section4;'>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=3 width="100%" noshade color="#999999" align=center>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>EXHIBIT INDEX </b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in'><b><u>
<font size="3">Exhibit No.</font></u><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Description</u></font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:-1.0in'>&nbsp;</p>

<p style="font-size: 12.0pt; font-family: Times New Roman; text-indent: -1.0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">Exhibit 99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Press
release issued by the Company on August 11, 2008</p>
<p style="font-size: 12.0pt; font-family: Times New Roman; text-indent: -1.0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:1.0in;text-indent:-1.0in'>Exhibit
10.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amended and Restated Employment Agreement between the Company
and Douglas W. Sabra, dated August 12, 2008</p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:1.0in;text-indent:-1.0in'>Exhibit
10.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employment Agreement between the Company and James O. McKenna,
dated August 12, 2008</p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
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[{"type": "8-K", "sequence": "1", "filename": "esforward8k502.htm", "secsgml_size_bytes": 44577}]
{"company-data": {"conformed-name": "FORWARD INDUSTRIES INC", "cik": "0000038264", "assigned-sic": "3089", "irs-number": "131950672", "state-of-incorporation": "NY", "fiscal-year-end": "0908"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-06669", "film-number": "081010409"}, "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)
August 11, 2008
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
2.02 Results of Operations and Financial Condition.
On Monday, August 11,
2008, the Company issued a press release announcing its results of operations
for the third fiscal quarter ended June 30, 2008.  A copy of the press release
is attached as Exhibit 99.1.
More
complete information relating to results of operations for the third fiscal
quarter is contained in the Company's Quarterly Report on Form 10-Q for the
three months ended June 30, 2008, filed with the Commission on August 11,
2008.
Item 5.02 (e) Departure Of Directors Or Certain Officers; Election Of
Directors; Appointment Of Certain Officers; Compensatory Arrangements Of Certain
Officers
Amended and Restated Employment Agreement
Effective August 12,
2008, Douglas W. Sabra, the Company's Chief Executive Officer and Chairman of
the Board, entered into an Amended and Restated Employment Agreement ("Amended
Agreement") with the Company.  The Amended Agreement was approved by the
Compensation Committee of the Board of Directors.  The terms of Mr. Sabra's
current compensation under his former employment agreement ("Old Agreement")
are not modified by the Amended Agreement.
The Amended Agreement
effects the following changes to the Old Agreement:  The term of Mr. Sabra's
employment is extended one year to December 31, 2009, from December 31, 2008. 
The formula for determining bonus compensation under the Amended Agreement,
which will affect his eligibility for earning bonus in the fiscal year ending September
30, 2009, has been modified to permit the Compensation Committee to set targets
that may or may not include pre-tax income, which was the benchmark under the
Old Agreement.
Under the Amended
Agreement, a new provision relating to termination in the event of a change of
control (as defined in the Amended Agreement) of the Company has been added. 
If Mr. Sabra's employment is terminated without cause, or if he terminates his
employment for good reason (as defined in the Amended Agreement), in either
case within one year of a change of control, he would receive severance equal
to 12 months of salary and immediate vesting of any unvested options and
restricted stock pursuant to applicable equity compensation plans.  He would
not be able to terminate for good reason after a change of control as long as
he was one of the three most senior and highly compensated executives in the
entity that survives a business combination that results from a change of
control.
Other provisions
relating to termination remain substantially the same from the Old Agreement,
while clarifying that in case of termination without cause (not in connection
with a change of control), Mr. Sabra would receive salary for the greater of
six months or the balance of the term remaining at the time of termination.
The Amended Agreement
binds Mr. Sabra to a customer non-solicitation covenant for one year following
the expiration of the employment term in addition to the confidentiality,
non-competition, and employee non-solicitation covenants that form part of the
Old Agreement and continue unchanged in the Amended Agreement. A copy of the
Amended Agreement is attached as Exhibit 10.1.
New Employment Agreement
Effective August 12,
2008, James O. McKenna, the Company's Chief Financial Officer, entered into an
Employment Agreement ("Agreement") with the Company that was authorized and
approved by the Compensation Committee of the Board.  The terms of Mr.
McKenna's current compensation, salary of $175,000 per annum are not modified
by the terms of the Agreement.  Under his Agreement, Mr. McKenna will be
eligible to earn bonus compensation based on achievement of targets set by the
Compensation Committee in respect of each fiscal year during the term.
-1-
The term of the
Agreement expires December 31, 2009, and either party may give notice of
non-renewal not less than 90 days prior to that date.  If the Company gives
such notice, Mr. McKenna is entitled to six months of severance for termination
without cause at his prevailing salary rate.  He is also entitled to six months
of severance for termination without cause in circumstances other than
non-renewal and termination for good reason (as defined in the Agreement).  If
Mr. McKenna's employment is terminated without cause, or if he terminates his employment
for good reason, in either case within one year of a change of control, he is
entitled to receive severance equal to 12 months of salary and immediate
vesting of any unvested options and restricted stock (or other unvested grants)
pursuant to Company equity compensation plans.  He would not be able to
terminate for good reason after a change of control provided that is serving as
an executive in the financial department of the surviving entity that results
from a change of control.
Under the Agreement, Mr.
McKenna is subject to the terms of restrictive covenants that prohibit him from
competing against the Company, soliciting its employees, or soliciting its
customers, in each case for a period one year after expiration of the term or
any renewal thereof.  He is also bound not to disclose material, non-public
information pertaining to the Company after expiration of the term. A copy of
the Agreement is attached as Exhibit 10.2.
Item 9.01. Financial
Statements and Exhibits.
(d) Exhibits.
Exhibit 99.1      Press release issued on August
11, 2008
Exhibit 10.1      Amended
and Restated Employment Agreement between the Company and Douglas W. Sabra,
dated August 12, 2008
Exhibit 10.2      Employment
Agreement between the Company and James O. McKenna, dated August 12, 2008
-1-
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/ Douglas W. Sabra
_______________________________________
Name
Douglas
W. Sabra
Title:
Chief
Executive Officer
Dated:
August
12, 2008
-2-
EXHIBIT INDEX
Exhibit No.
Description
Exhibit 99.1            Press
release issued by the Company on August 11, 2008
Exhibit
10.1            Amended and Restated Employment Agreement between the Company
and Douglas W. Sabra, dated August 12, 2008
Exhibit
10.2            Employment Agreement between the Company and James O. McKenna,
dated August 12, 2008
-3-