Material Event (Form 8-K)

As previously disclosed, on July 30, 2026, XAI Floating Rate & Alternative Income Trust (NYSE: XFLT) (the "Trust") convened a special meeting of shareholders (the "Special Meeting") to approve a new investment sub-advisory agreement (the "New Sub-Advisory Agreement") among the Trust, XA Investments, LLC (the "Adviser") and Rockford Tower Asset Management, L.L.C. (the "King Street Sub-Adviser"). The Special Meeting was adjourned to August 6, 2026, in order to continue to solicit additional proxies to approve the New Sub-Advisory Agreement.

At the reconvened Special Meeting held on August 6, 2026, shareholders of the Trust approved the New Sub-Advisory Agreement.

Following the certification of the final vote, the Trust, the Adviser and the King Street Sub-Adviser entered into the New Sub-Advisory Agreement on August 10, 2026. The terms of the New Sub-Advisory Agreement are substantially the same as the terms of the interim investment sub-advisory agreement entered into among the Trust, the Adviser and the King Street Sub-Adviser on July 30, 2026, except with respect to the agreement's term. The New Sub-Advisory Agreement shall continue for an initial term of two years. Thereafter, the New Sub-Advisory Agreement shall continue in effect from year to year if approved annually (i) by the Board of Trustees of the Trust or the holders of a majority of the outstanding voting securities of the Trust and (ii) by a majority of the trustees who are not "interested persons" of the Trust, the Adviser or the King Street Sub-Adviser, by vote cast in person at a meeting called for the purpose of voting on such approval. The New Sub-Advisory Agreement may be terminated (i) by the Trust or the Adviser at any time, without the payment of any penalty, upon giving the King Street Sub-Adviser 60 days' written notice, or (ii) by the King Street Sub-Adviser on 60 days' written notice to the Trust and the Adviser. The New Sub-Advisory Agreement will also immediately terminate in the event of its assignment, as defined in the 1940 Act. The New Sub-Advisory Agreement also terminates upon the termination of the Trust's investment advisory agreement with the Adviser.

The foregoing description of the New Sub-Advisory Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the New Sub-Advisory Agreement filed with this report as Exhibit 10.1 and incorporated herein by reference.