SEC FORM 4

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

SABRA DOUGLAS

(Last)

(First)

(Middle)

7441 BRUNSWICK CIRCLE

(Street)

BOYNTON BEACH

33472

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
FORWARD INDUSTRIES INC [ FORD ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

Director		10% Owner
Officer (give title below)	X	Other (specify below)
		former CEO and Director

3. Date of Earliest Transaction (Month/Day/Year)
08/12/2010

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Forward Industries Common Stock	08/12/2010		M		10,000	A	$2.02	10,000	D
Forward Industries Common Stock	08/12/2010		F		5,722⁽³⁾	D	$3.53⁽²⁾	30,944⁽⁴⁾	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
Forward Industries Common Stock Option	$2.02	08/12/2010		M			10,000	08/10/2010⁽¹⁾	12/11/2019	Forward Industries Common Stock	10,000	$0	0	D

Explanation of Responses:

1. The vesting of these options was accelerated to 8/10/2010 in conjunction with Mr. Sabra's Severance and Release Agreement. Orginal vesting of these shares were as follows: 3,334 vesting on 12/10/2010 3,333 vesting on 12/10/2011 3,333 vesting on 12/10/2012

2. $3.53 represents the closing stock price of FORD on 8/12/2010, the date the net share exercise was submitted.

3. 5,722 shares were withheld as payment of exercise price ($20,200) for 10,000 options (strike price of $2.02). The number of shares withheld was calculated using the closing stock price on the date of exercise, which was $3.53 on 8/12/2010.

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

	James McKenna, by Power of Attorney	08/16/2010
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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