Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 655

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 655
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                                            Wendy Loundermon, are eligible for a cash bonus based on the Transaction Value (as defined
                                            below) attributed to the Contemplated Transaction or Qualifying Transaction, as calculated
                                            in accordance with the terms of the Strategic Transaction Bonus Plan. Mr. Ali is eligible
                                            for 3.5% of such Transaction Value less $6.0 million. Ms. Loundermon is eligible for
                                            0.5% of such Transaction Value less $0.5 million. These bonus amounts will generally
                                            be paid at the closing of each applicable transaction subject to the treatment of deferred
                                            payments in accordance with the terms of the Strategic Transaction Bonus Plan, except that
                                            bonus amounts in connection with the closing of the XTI Merger are payable according to the
                                            payment schedule set forth in the Plan Amendment and described below. “Transaction
                                            Value” means the sum of any cash and the fair market value of any securities or other
                                            assets or property received by the Company or available for distribution to the holders of
                                            the Company’s equity securities in connection with the applicable transaction as provided
                                            for in the definitive agreement governing the applicable transaction, or such value as will
                                            be designated by the Compensation Committee. The Transaction Value applicable to the XTI
                                            Merger was assessed at $225 million which was determined by the Compensation Committee
                                            in part based on the enterprise value of Legacy XTI following a valuation analysis performed
                                            by an independent financial advisory firm.

●Participants listed on Schedule 3 of the Strategic Transaction
Bonus Plan will be eligible for equity-based grants, including but not limited to, options, restricted stock awards, restricted stock
units, or such other rights to acquire shares of the Company’s common stock in connection with the closing of the Contemplated Transaction
or a Qualifying Transaction, in such form and for such amounts as set forth on Schedule 3 or, if no such form or amount is specified
for a participant on Schedule3, in such form and for such amounts that may be approved by the Compensation Committee in its sole and absolute
discretion.

65

Schedule 3
of the Strategic Transaction Bonus Plan provides that:

(i)Nadir
Ali will receive an award (the “Award”) of fully vested shares of Company common stock issued under the Company’s 2018
Employee Stock Incentive Plan or any successor equity incentive plan adopted by the Company (the “Equity Plan”) on the date
that