Company: XTIA
Filing Date: 2025-06-12
Form Type: S-1
Source: 0001213900-25-053928
Chunk: 43

Company: XTI Aerospace, Inc.
Filing Date: 2025-06-12
Form: S-1
Chunk 43
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 of directors could potentially
use this preferred stock to preserve control.

Classified Board

In accordance with the terms
of our bylaws, our board of directors is divided into three classes, with members of each class serving staggered three-year terms. Upon
the expiration of the term of a class of directors, directors in that class will be elected for three-year terms at the annual meeting
of stockholders in the year in which their term expires. As such, approximately one-third of our board of directors will be elected each
year and at least two annual meetings of stockholders may be necessary to change a majority of the directors. The classification of directors
makes it more difficult for stockholders to change the composition of our board of directors.

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Filling Vacancies

Nevada law and our bylaws
establish that any vacancies on the board of directors may be filled by a majority of the remaining directors then in office, even though
less than a quorum of the board, or by a sole remaining director. A vacancy in the board of directors created by the removal of a director,
and not otherwise filled by the remaining directors, may be filled by the vote of a plurality of the votes cast at the annual meeting
of the stockholders or at a duly called special meeting at which a quorum is present, or by the written consent of the holders of a majority
of the outstanding shares.

Removal of Directors

The provisions of our bylaws
may make it difficult for our stockholders to remove one or more of our directors. Nevada law and our bylaws provide that the entire board
of directors, or any individual director, may be removed from office only by vote of the holders of capital stock representing not less
than two-thirds of the voting power of the issued and outstanding capital stock entitled to vote. Under Nevada law, whenever the holders
of any class or series of shares are entitled to elect one or more directors, unless otherwise provided in the articles of incorporation,
removal of any such director requires only two-thirds of the holders of that class or series, and not the votes of the outstanding shares
as a whole.

Board Action Without Meeting

Our bylaws provide that the
board may take action without a meeting if all the members of the board consent to the action in writing. Board action through consent
allows the board to make swift decisions, including in the event that a hostile takeover threatens current management.

No Cumulative Voting

Our bylaws and articles of