Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 239

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 239
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ity incentive plan and registered on a registration statement on Form S-8 or another appropriate form (“Registered Shares”),
or a combination of cash and Registered Shares. Mr. Ali must continue to provide consulting services to the Company on the date
of payment of an Equity Payment to receive the Equity Payment, unless the Company terminates the Ali Consulting Agreement without Company
Good Reason or Mr. Ali terminates the Ali Consulting Agreement for Consultant Good Reason, in which case the Equity Payments would
become due and payable in full. To the extent all or a portion of an Equity Payment is made in shares, such shares will be valued based
on the closing price per share on the date on which the Equity Payment is made.

Subject
to compliance with Section 15(b)(13) of the Exchange Act, if Mr. Ali provides services involving the identification
of prospective merger or acquisition targets for the Company or its affiliates, it is intended that he be eligible for a bonus upon the
successful delivery of services. The specifics of the bonus will be negotiated and mutually agreed upon by the Company and Mr. Ali.

As described above, the Settlement
Agreement provides that as of the Effective Date of the Settlement Agreement, the Ali Consulting Agreement is terminated.

Stock
Issuances to Nadir Ali

On
June 13, 2024, July 5, 2024, November 19, 2024 and December 2, 2024, the Company entered into a Restricted Stock Award
Agreement with Nadir Ali (the “June 2024 RSA Agreement,” the “July 2024 RSA Agreement”, the “November 2024
RSA Agreement” and the “December 2024 RSA Agreement,” respectively), a consultant to the Company and the Company’s
former Chief Executive Officer and a former director of the Company. Pursuant to each agreement, the Company issued Mr. Ali fully
vested shares of Common Stock (the “Shares”) under the 2018 Plan, which Shares were registered pursuant to a registration
statement on Form S-8.

Pursuant
to the June 2024 RSA Agreement, the Company issued 10,722 Shares to Mr. Ali at a price per share of $110.00 in partial satisfaction
of the $1,500,000 Equity Payment owed to Mr. Ali on June 12, 2024 under the Ali Consulting Agreement.

Pursuant
to the July 2024 RSA Agreement, the