Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 657

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 657
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paid payments to participants pursuant to the Strategic Transaction Bonus Plan will be paid on
an accelerated basis pursuant to a payment schedule that is substantially similar to the bonus payment schedule for the Non-Plan Transaction
Bonuses. Conversely, if the Company agrees to an accelerated payment or more favorable payment terms of amounts payable pursuant to the
Strategic Transaction Bonus Plan, all recipients of Non-Plan Transaction Bonuses will receive similar treatment.

In
connection with the Plan Amendment, the Compensation Committee also adopted a new form of confidentiality and release agreement, which
was executed and delivered by the Strategic Transaction Bonus Plan participants who resigned from their Company positions at the closing
of the XTI Merger on March 12, 2024, including Mr. Ali and Ms. Loundermon. In addition, on March 12, 2024, the Strategic
Transaction Bonus Plan participants who retained their employment with the Company following the closing of the XTI Merger, including
Mr. Das, delivered an acknowledgment agreement to the Company irrevocably waiving and releasing the Company from any and all rights
to payment of such individual’s payments under Schedule 1 of the Strategic Transaction Bonus Plan except pursuant to and as
provided under the terms of the Plan Amendment.

66

The
Company recognized the $6.3 million expense of the strategic transaction bonus as it became payable during the second quarter of 2024.
During the third and fourth quarter of 2024, we paid $2.0 million of the strategic transaction bonus, with the remaining $4.3 million
of the strategic transaction bonus payable as of December 31, 2024. From January 1, 2025 through the date of this filing, the Company
repaid the remaining $4.3 million strategic transaction bonus obligation.

Employee
Stock Incentive Plans

2018 Employee
Stock Incentive Plan

The
following is a summary of the material terms of our 2018 Employee Stock Incentive Plan, as amended to date (the “2018 Plan”).
This description is not complete. For more information, we refer you to the full text of the 2018 Plan.

The
2018 Plan is an important part of our compensation program. It promotes financial saving for the future by our employees, fosters good
employee relations, and encourages employees to acquire shares of our Common Stock, thereby better aligning their interests with those
of the other stockholders. Therefore, the Board believes it is essential to our ability