Company: XTIA
Filing Date: 2025-09-11
Form Type: 8-K/A
Source: 0001213900-25-086879
Chunk: 2

Company: XTI Aerospace, Inc.
Filing Date: 2025-09-11
Form: 8-K/A
Chunk 2
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ursuant to the terms of the
Employment Agreement, Mr. Tapp is entitled to receive an annualized base salary of $600,000, payable according to the Company’s
payroll policies for senior officer employees, and which base salary is subject to an annual review between Mr. Tapp and the Company’s
Chief Executive Officer in light of annual target objectives to be approved by the Board on an annual basis. Such base salary will not
be reduced or offset without Mr. Tapp’s written consent. Mr. Tapp is also entitled to receive quarterly performance bonuses subject
to the achievement of quarterly milestones to be agreed upon between Mr. Tapp and the Company’s Chief Executive Officer that are
within parameters to be approved by the Board, in an amount to be determined by the Company’s Chief Executive Officer in his sole
discretion that is up to 100% of his then current annualized base salary, with the sum of all calendar quarterly performance bonuses not
to exceed 100% of his then current annualized base salary. In addition, if the Company closes an investment in or acquisition of another
company through the purchase of either some or all of such target company’s equity or all or substantially all of such target company’s
assets that are used in or useful to the business of such target company, with total transaction consideration paid by the Company or
its subsidiary equal to or in excess of $10 million, Mr. Tapp is entitled to a bonus equal to 25% of his base salary then in effect.

Pursuant to the Employment
Agreement, Mr. Tapp is eligible to receive incentive awards of Company securities and he received an initial stock option grant as described
below. In addition, Mr. Tapp is entitled to 30 paid vacation days (“PTO Days”) during each twelve-month period during his
employment. Any unused PTO Days in any year will rollover to the next year. In the event of termination, Mr. Tapp will be compensated
for all accrued vacation at his base salary rate then in effect. Mr. Tapp is entitled to participate in all Company benefit plans, and
he is also entitled to the reimbursement of all reasonable business expenses incurred by him in connection with the performance of his
duties and reasonable relocation expenses if the Company relocates its headquarters to any location outside the Dallas-Fort Worth metroplex
area that is within a radius (the “Executive Office Area”) of not more than 17 miles from the intersection of Preston