Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 433

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 433
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 an aggregate amount
                                            of 4% of the $70,350,000 transaction value of the Completed Transaction, with Mr. Ali
                                            and Ms. Loundermon being entitled to 3.5% and 0.5% of such transaction value, respectively.

64

During
the three months ended September 30, 2023, the Company paid approximately $3.5 million to Company management and former
management under the Completed Transaction Bonus Plan. No amounts were owed under the Completed Transaction Bonus Plan as of September 30,
2023.

In
addition, if a participant was entitled to any payments or benefits from the Completed Transaction Bonus Plan or any other amounts (collectively,
the “Company Payments Relating to the Completed Transaction Plan”) that are subject to the tax imposed by Section 4999
of the Internal Revenue Code of 1986, as amended (the “Excise Tax”), the Company agreed to pay the participant the greater
of the following amounts: (i) the Company Payments Relating to the Completed Transaction Plan, or (ii) one dollar less than
the amount of the Company Payments Relating to the Completed Transaction Plan that would subject the participant to the Excise Tax, as
mutually agreed between the Company and the participant.

Strategic
Transaction Bonus Plan

On
July 24, 2023, the Compensation Committee adopted a Transaction Bonus Plan, which was amended on March 11, 2024 (as amended,
the “Strategic Transaction Bonus Plan,” and such amendment, the “Plan Amendment”), and is intended to provide
incentives to certain employees and other service providers to remain with the Company through the consummation of a Contemplated Transaction
or Qualifying Transaction (each as defined below) and to maximize the value of the Company with respect to such transaction for the benefit
of its stockholders. The Strategic Transaction Bonus Plan is administered by the Compensation Committee. It will automatically terminate
upon the earlier 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