Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 654

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 654
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 of (i) the one-year anniversary of the adoption date, (ii) the completion of all payments under the terms of
the Strategic Transaction Bonus Plan, or (iii) at any time by the Compensation Committee, provided, however, that the Strategic Transaction
Bonus Plan may not be amended or terminated following the consummation of a Contemplated Transaction or Qualifying Transaction without
the consent of each participant being affected, except as required by any applicable law.

A “Contemplated Transaction” refers to a strategic alternative
transaction including an asset sale, merger, reorganization, spin-off or similar transaction (a “Strategic Transaction”) that
results in a change of control as defined in the Strategic Transaction Bonus Plan. A Qualifying Transaction refers to a Strategic Transaction
that does not result in a change of control for which bonuses may be paid pursuant to the Strategic Transaction Bonus Plan as
approved by the Compensation Committee. The XTI Merger qualifies as a Contemplated Transaction.

The
Plan Amendment, among other things, changed the timing of and imposed certain additional conditions on the payment of certain bonuses
to be paid to the participants thereunder, including Nadir Ali, Wendy Loundermon and Soumya Das.

Pursuant
to the Strategic Transaction Bonus Plan, in connection with the closing of a Contemplated Transaction or a Qualifying Transaction, the
participants will be eligible to receive bonuses as described below.

●Participants listed on Schedule 1 of the Strategic Transaction
Bonus Plan, including Nadir Ali, Wendy Loundermon, Soumya Das and certain other employees, are eligible for a cash bonus equal to 100%
of their aggregate annual base salary and target bonus amount in effect as of the closing of the Contemplated Transaction or a Qualifying
Transaction, provided, however, that the Company’s payment of such bonus to a participant may, in the Company’s discretion,
be conditioned on the participant’s timely execution and delivery of a customary release of claims and confidentiality agreement
and such participant’s non-revocation of the release prior to the expiration of any revocation rights afforded to such participant
by applicable law. These bonus amounts will generally be paid at the closing of each applicable transaction, 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.

●Participants
                                            listed on Schedule 2 of the Strategic Transaction Bonus Plan, including Nadir Ali and