INVESTMENT MANAGEMENT AGREEMENTInvestment Management Agreement • April 19th, 2013 • Forward Industries Inc • Plastics products, nec • New York
Securities that are traded on listed securities exchanges consist of investments such as common stock and options. Common stock shall be valued at the last reported sales price on the valuation date. Options shall be valued at the average of the “bid” and “ask” price. Investments in derivative instruments can be exchange-traded or over-the-counter (“OTC”). OTC derivatives, including nonmarketable OTC options, are generally valued by the Investment Adviser using observable inputs. Inputs may include quotations from counterparties, the fair value of the underlying assets, market prices for reference securities, credit spreads, market liquidity and concentrations, foreign currency rates, funding and administrative costs. In instances where market models are used, the value of the OTC derivative depends on the contractual terms of, and specific risks inherent in, the instrument as well as the availability and reliability of observable inputs.
