Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 217

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 217
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 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 to attract, retain, and motivate highly qualified
employees in an extremely competitive environment both in the United States and internationally.

Amount
of Shares of Common Stock. The number of shares of our Common Stock available for issuance under the 2018 Plan automatically increases
on the first day of each quarter through October 1, 2028, by a number of shares of Common Stock equal to the least of (i) 3,000,000
shares, (ii) twenty percent (20%) of the outstanding shares of Common Stock on the last day of the immediately preceding calendar
quarter, or (