Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 653

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 653
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 the Completed Transaction Bonus Plan were eligible for a cash
                                            bonus equal to 100% of their aggregate annual base salary in effect as of the end of the
                                            year ended December 31, 2022, provided that the participants were required to execute a customary
                                            release of claims and confidentiality agreement.

●Participants
                                            listed on Schedule 2 of the Completed Transaction Bonus Plan, including our named executive
                                            officers Nadir Ali and Wendy Loundermon, were eligible for a cash bonus in an aggregate amount
                                            of 4% of the $70,350,000 transaction value of the Completed Transaction, with Mr. Ali
                                            and Ms. Loundermon being entitled to 3.5% and 0.5% of such transaction value, respectively.

64

During
the three months ended September 30, 2023, the Company paid approximately $3.5 million to Company management and former
management under the Completed Transaction Bonus Plan. No amounts were owed under the Completed Transaction Bonus Plan as of September 30,
2023.

In
addition, if a participant was entitled to any payments or benefits from the Completed Transaction Bonus Plan or any other amounts (collectively,
the “Company Payments Relating to the Completed Transaction Plan”) that are subject to the tax imposed by Section 4999
of the Internal Revenue Code of 1986, as amended (the “Excise Tax”), the Company agreed to pay the participant the greater
of the following amounts: (i) the Company Payments Relating to the Completed Transaction Plan, or (ii) one dollar less than
the amount of the Company Payments Relating to the Completed Transaction Plan that would subject the participant to the Excise Tax, as
mutually agreed between the Company and the participant.

Strategic
Transaction Bonus Plan

On
July 24, 2023, the Compensation Committee adopted a Transaction Bonus Plan, which was amended on March 11, 2024 (as amended,
the “Strategic Transaction Bonus Plan,” and such amendment, the “Plan Amendment”), and is intended to provide
incentives to certain employees and other service providers to remain with the Company through the consummation of a Contemplated Transaction
or Qualifying Transaction (each as defined below) and to maximize the value of the Company with respect to such transaction for the benefit
of its stockholders. The Strategic Transaction Bonus Plan is administered by the Compensation Committee. It will automatically terminate
upon the earlier