Material Agreement, Management Change/Compensation (Form 8-K)

Item 1.01. Entry into a Material Definitive Agreement.

The disclosure in Item 5.02 below is incorporated by reference into this Item 1.01.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On or about July 1, 2026, the Board of Directors (the "Board") of BluSky AI Inc. (the "Company") appointed Mort Aaronson as a member of the Board to fill a vacancy on the Board.

Mr. Aaronson, age 67, is a seasoned executive, entrepreneur, advisor, and executive coach with extensive C-level leadership experience across telecommunications, energy, digital media, technology, consumer products, and emerging growth industries. Mr. Aaronson is the Founder of, and has been the CEO of, GreyMatters Advisors since 2003, where he partners with organizations, leadership teams, and founders to solve complex strategic and operational challenges while improving leadership effectiveness and organizational performance. As a member of 100 Coaches, Mr. Aaronson specializes in executive coaching, leadership development, organizational transformation, and growth strategy. His clients span a broad range of industries and include organizations such as FanDuel, Acme Smoked Fish, Digicel, Zoox, TORQ Commodities AG, Momofuku, American Homes 4 Rent, Orkin, T-Mobile, CRH, Hines, and Beacon Mobility. Mr. Aaronson was previously the CEO (and Founder) of PlaceWise Media, the President and COO of KN Energy, and a Senior Executive at MCI Communications.

In connection with Mr. Aaronson's appointment, on July 1, 2026, the Company entered into a Director Agreement and Indemnification Agreement with Mr. Aaronson, providing that (i) Mr. Aaronson will serve as a director of the Company, (ii) the Company will pay Mr. Aaronson an annual fee of $75,000, payable quarterly in shares of common stock of the Company valued based on the closing price of the Company's common stock on the date of the agreements ($4.50/share), and (iii) the Company will indemnify Mr. Aaronson for any losses incurred by Mr. Aaronson as a result of Mr. Aaronson's service as a director of the Company.

The foregoing descriptions of the Director Agreement and Indemnification Agreement do not purport to be complete and are qualified in their entirety by reference to the full text of those agreements, copies of which are filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated by reference herein (with the Indemnification Agreements included as an exhibit the Director Agreement).