Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 656

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 656
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 is three (3) months following the closing of the XTI Merger (the “Grant Date”) covering a number of shares having
a fair market value (based on the closing price per share on the Grant Date) equal to $1,023,600. Notwithstanding the foregoing, Nadir
Ali will not be eligible to receive the Award if his Consulting Agreement with the Company dated as of March 12, 2024 (the “Ali
Consulting Agreement”), terminates before the Grant Date due to (a) Company Good Reason (as defined in the Ali Consulting
Agreement) or (b) termination by Nadir Ali for any reason other than Consultant Good Reason (as defined in the Ali Consulting Agreement).

(ii)Any
                                            amounts payable to any participant in cash pursuant to the Strategic Transaction Bonus Plan,
                                            may be paid in shares under the Equity Plan upon written agreement of the Company and such
                                            participant.

The
Plan Amendment provides that any amounts payable to a participant in connection with the closing of the XTI Merger are payable as follows:

(1)The
                                            first fifty percent (50%) of any amounts payable in connection with the XTI Merger pursuant
                                            to Schedule 1 and Schedule 2 of the Strategic Transaction Bonus Plan for each participant,
                                            as applicable (the “First Fifty Percent”), will become earned upon the earlier
                                            of closing of a financing (whether a registered offering or private unregistered offering)
                                            in which the Company sells Qualifying Securities (as defined below) and receives an amount
                                            of gross proceeds that when added to the proceeds of previous sales of Qualifying Securities
                                            following the closing of the XTI Merger equals $5 million (the “First Financing”)
                                            or June 30, 2024 (the “Earned Date”). “Qualifying Securities”
                                            means any debt or equity securities other than debt or equity securities having a maturity
                                            date or a redemption right at the option of the holder of fewer than six (6) months
                                            following the issuance of that security.

(2)The
                                            remaining fifty percent (50%) of any amounts payable pursuant to Schedule 1 and Schedule 2
                                            of the Strategic Transaction Bonus Plan (the “Remaining Fifty Percent”) will
                                            be earned upon the earlier of the closing of a subsequent financing in which the Company
                                            receives an amount of gross proceeds that when added to the proceeds of previous sales of
                                            Qualifying Securities following the First Financing