Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 222

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 222
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 upon the length of time the employee held the shares before the disposition.

    ●
    A
                                            grant may be subject to a 20% tax, in addition to ordinary income tax, at the time the grant
                                            becomes vested, plus interest, if the grant constitutes deferred compensation under section
                                            409A of the Code and the requirements of section 409A of the Code are not satisfied.

Section 162(m) of the Code generally disallows a publicly
held corporation’s tax deduction for compensation paid to its chief executive officer or certain other officers in excess of $1 million
in any year. Qualified performance-based compensation is excluded from the $1 million deductibility limit, and therefore remains
fully deductible by the corporation that pays it. Stock units, stock awards, dividend equivalents, and other stock-based awards granted
under the 2018 Plan may be designated as qualified performance-based compensation if the Committee conditions such grants on the achievement
of specific performance goals in accordance with the requirements of section 162(m) of the Code.

We
have the right to require that grantees pay to us an amount necessary for us to satisfy our federal, state or local tax withholding obligations
with respect to grants. We may withhold from other amounts payable to a grantee an amount necessary to satisfy these obligations. The
Committee may permit a grantee to satisfy our withholding obligation with respect to grants paid in shares of our Common Stock by having
shares withheld, at the time the grants become taxable, provided that the number of shares withheld does not exceed the individual’s
minimum applicable withholding tax rate for federal, state and local tax liabilities.

2011
Employee Stock Incentive Plan

Except
as set forth below, the material terms of our 2011 Employee Stock Incentive Plan, as amended to date (the “2011 Plan”) are
substantially similar to the material terms of the 2018 Plan. However, this description is not complete. For more information, we refer
you to the full text of the 2011 Plan.

The
2011 Plan was intended to encourage ownership of Common Stock by our employees and directors and certain of our consultants in order
to attract and retain such people, to induce them to work for the benefit of us and to provide additional incentive for them to promote
our success. The 2011 Plan (but not awards granted under the 2011 Plan) terminated in accordance with its terms on August 31, 2021