Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 216

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 216
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 of each month thereafter until the Remaining Fifty Percent (50%) is paid
                                            in full.

(4)A
                                            participant’s right to receive payment of the First Fifty Percent (50%) or the Second
                                            Fifty Percent (50%) is subject to the participant’s continuing employment or other
                                            service with the Company or any of its subsidiaries or affiliates until the date on which
                                            the payment is earned (as specified in clause (1) or (2) above); provided, however,
                                            that if a participant’s employment or service with the Company or any of its subsidiaries
                                            or affiliates terminates before the applicable payment is earned due to the involuntary termination
                                            of the participant other than for Cause, such participant will be deemed for this purpose
                                            to continue in employment or service with the Company and its subsidiaries and affiliates
                                            following the participant’s termination date until the date the applicable payment
                                            is earned.

(5)In
                                            the event the Company is unable to raise a minimum of $5 million from the sale of Qualifying
                                            Securities as of June 30, 2024, the participants designate and appoint Nadir Ali as
                                            the “Participant Representative” to work with the Company as necessary to amend
                                            the payment schedule set forth above to ensure that the Company will have sufficient cash
                                            to support its operations. If Nadir Ali cannot or refuses to serve the Participant Representative,
                                            then the Participant Representative will be selected by the Company from among the other
                                            participants entitled to receive any payment pursuant to Schedule 1 or Schedule 2
                                            of the Strategic Transaction Bonus Plan.

(6)If the Company or Legacy XTI pays cash bonuses related to the closing
of the XTI Merger to the Company’s or Legacy XTI’s employees or individual service providers who are not participants (“Non-Plan
Transaction Bonuses”), any then-unpaid 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