Item 5.02 Departure of Directors or Certain Officers; Election of
Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers.
On July 26, 2022, Exela Technologies BPA, LLC, a subsidiary
of the registrant, entered into an employment agreement with Suresh Yannamani. The agreement memorializes the
existing terms of Mr. Yannamani's compensation, namely an annual base salary of $422,500, subject to annual review, and
eligibility to participate in the Exela Technologies, Inc. Executive Bonus Plan with a bonus target of 100% of the base
salary with a maximum stretch level performance target of 250% of base salary. In addition, the agreement provides for severance in
an amount equal to the sum of two times the then current salary and the bonus target, in the case of termination for reasons other
than cause or without good reason. The Agreement also memorializes Mr. Yannamni's appointment as chief executive officer
of the subsidiary. In connection with his entry into the agreement, Mr. Yannamani ceased being President of the
registrant. The agreement expires on its one-year anniversary and automatically renews for successive one-year periods
unless terminated by either party.
The foregoing description of the employment agreement does not purport
to be a complete description of all of the terms, provisions, covenants and agreements contained in the agreement, and is subject to
and qualified in its entirety by reference to the full text of the agreement, a copy of which will be filed as an exhibit to the Company’s
next Quarterly Report on Form 10-Q, and will be incorporated herein in its entirety by reference.
Item 5.03 Amendment to Articles of Incorporation or Bylaws
Reverse Stock Split
On July 25, 2022, Exela Technologies, Inc.
(“Exela” or the “Company”) announced that it filed a Certificate of Amendment of the Company’s Second Amended
and Restated Certificate of Incorporation, as amended (the “Certificate of Amendment”), with the Secretary of State of Delaware,
to effect a 1-for-20 reverse stock split (the “Reverse Split”) of the Company’s issued and outstanding shares of common
stock, par value $0.0001 per share (the “Common Stock”), at 5:00 p.m. Eastern Time on that date. Beginning with the opening
of trading on July 26, 2022, the Company’s Common Stock will trade on The Nasdaq Capital Market on a split-adjusted basis under
a new CUSIP number 30162V706 and will continue to trade under the symbol “XELA.”
As a result of the Reverse Split, every twenty
(20) shares of the Company’s Common Stock issued and outstanding will be converted into
one (1) share of Common Stock. No fractional shares will be issued in connection with the Reverse Split. Stockholders who
would otherwise be entitled to a fractional share of Common Stock will instead receive cash in lieu of fractional shares based
on the closing sales price of the Company’s Common Stock as quoted on The Nasdaq Capital Market on July 25, 2022.
The Reverse Split will not reduce the number of
authorized shares of the Common Stock or preferred stock (the “Preferred Stock”), or change the par values of the Company’s
Common Stock or Preferred Stock. The Reverse Split will affect all stockholders uniformly and will not affect any stockholder's ownership
percentage of the Company's shares of Common Stock (except to the extent that the Reverse Split would result in some of the stockholders
receiving cash in lieu of fractional shares). All outstanding options, warrants, restricted stock units and similar securities entitling
their holders to receive or purchase shares of the Company’s Common Stock (including the conversion rate of the Preferred Stock)
will be adjusted as a result of the Reverse Split, as required by the terms of each security.
The foregoing
description of the Certificate of Amendment is a summary of the material terms thereof, does not purport to be complete and is qualified
in its entirety by reference to the full text of the Certificate of Amendment, which is filed with this report as Exhibit 3.1 and
is incorporated herein by reference.
As a result
of the Reverse Split, the number of issued and outstanding shares of Common Stock will be approximately 64.8 million shares.
On July 25,
2022, the Company issued a press release announcing the Reverse Split. A copy of the press release
is filed herewith as Exhibit 99.1 hereto.
Special Voting Stock Elimination
On July 25,
2022, the Company filed a Certificate of Elimination (the “Certificate of Elimination”) with the Secretary of State of the
State of Delaware retiring all previously redeemed shares of the Special Voting Preferred Stock. Effective upon the filing of the Certificate
of Elimination, all references to the Special Voting Preferred Stock in the Second Amended and Restated Certificate of Incorporation of
the Company shall be eliminated and the shares of Special Voting Preferred Stock so retired shall resume the status of authorized and
unissued shares of preferred stock of the Company, without designation as to series.
Preferred Stock Increase
On
July 25, 2022, the Company increased the authorized number of shares of each of Series B
Cumulative Perpetual Preferred Stock and Tandem Preferred Stock of the Corporation, from 5,000,000 shares to 8,600,000.