Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 434

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 434
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 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
                                            Wendy Loundermon, are eligible for a cash bonus based on the Transaction Value (as defined
                                            below) attributed to the Contemplated Transaction or Qualifying Transaction, as calculated
                                            in accordance with the terms of the Strategic Transaction Bonus Plan. Mr. Ali is eligible
                                            for 3.5% of such Transaction Value less $6.0 million. Ms. Loundermon is eligible for
                                            0.5% of such Transaction Value less $0.5