Company: XTIA
Filing Date: 2025-09-11
Form Type: 8-K/A
Source: 0001213900-25-086879
Chunk: 5

Company: XTI Aerospace, Inc.
Filing Date: 2025-09-11
Form: 8-K/A
Chunk 5
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 expiration of any applicable exercise period, (v) a bonus in an amount equal to (a) the fair
market value used to calculate the income tax consequences of the immediate vesting of Company securities pursuant to the foregoing clause
(iv), divided by (b) the difference between 100% and the highest combined federal and state income tax rate among all the members of the
Executive Team (as defined in the Employment Agreement), and (vi) continued receipt, at the Company’s cost, for 18 months after
termination of all employee benefits in which Mr. Tapp and his family were entitled to receive immediately prior to the date of termination.

The Employment Agreement is
governed by Texas law and provides that disputes between Mr. Tapp and the Company will be submitted to binding arbitration, which will
occur in Tarrant, Collin, or Dallas County, Texas. Pursuant to the Employment Agreement, Mr. Tapp is subject to a non-solicitation provision
that prohibits him, while employed by the Company and for one year thereafter, from soliciting the Company’s employees, consultants
or independent contractors.

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The foregoing description
of the Employment Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Employment
Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference herein.

In connection with Mr. Tapp’s
appointment, the Company will enter into its standard form of indemnification agreement with Mr. Tapp. The form of the indemnification
agreement was previously filed as Exhibit 10.4 to the Company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange
Commission (the “SEC”) on March 15, 2024, a copy of which is filed as Exhibit 10.2 to this Current Report on Form 8-K and
incorporated herein by reference.

There is no arrangement or
understanding pursuant to which Mr. Tapp was appointed to the position of Chief Operating Officer of the Company other than as set forth
in the Employment Agreement. There are no family relationships between Mr. Tapp and any director or executive officer of the Company,
and Mr. Tapp has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation
S-K, other than with respect to (i) $