Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 429

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 429
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 defined), he will receive his base salary for 12 months from the date of termination. Mr. Ali’s employment
agreement provides that he will not compete with the Company and will be subject to non-solicitation provisions relating to employees,
consultants and customers, distributors, partners, joint ventures or suppliers of the Company during the term of his employment or consulting
relationship with the Company. On April 17, 2015, the Compensation Committee approved the increase of Mr. Ali’s annual
salary to $252,400, effective January 1, 2015. Effective May 16, 2018, the Compensation Committee approved an increase in Mr. Ali’s
annual salary to $280,000 and an auto allowance of $1,000 a month.

On
February 27, 2023, the Company entered into a Limited Liability Company Unit Transfer and Joinder Agreement with Mr. Ali, pursuant
to which (i) the Company transferred 219,999 Class A Units of CVH to Mr. Ali in connection with Mr. Ali’s
services performed for and on behalf of the Company as an employee and a director of the Company and (ii) Mr. Ali became a
member of CVH and a party to the CVH LLC Agreement. The fair market value of the Class A Units at the date of grant is $462,430.
In addition, Mr. Ali beneficially owned membership interests in CVH through 3AM LLC, a Delaware limited liability company and a
founding member of CVH. CVH was dissolved as of December 31, 2023.

On
March 12, 2024, the Company and Mr. Ali entered into an amendment to Mr. Ali’s Amended and Restated Employment Agreement
dated May 15, 2018, to provide for payment of his cash severance thereunder on or as soon as practicable following the date that
is 21 days following the XTI Merger.

Mr. Ali
was also a participant of the Completed Transaction Bonus Plan pursuant to which he received a cash bonus in an aggregate amount of 3.5%
of the $70,350,000 transaction value of the Completed Transaction. See “Executive Compensation — Completed Transaction
Bonus Plan” for a description of the Completed Transaction Bonus Plan.

Mr. Ali
is a participant of the Strategic Transaction Bonus Plan pursuant to which