Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 403

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 403
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 of 18% per annum. Upon payment
of the Outstanding Amount and the Deferred Amount in accordance with the terms of the Settlement Agreement, the Ali Advisory Fees shall
be deemed to be satisfied in full and no further amounts shall be payable by the Company to Ali or his affiliated parties pursuant
to the Ali Consulting Agreement. On March 31, 2025, the Company paid the Outstanding Amount in full. As of the date of this report, the
Deferred Amount remains outstanding.

Former Management Payments. Pursuant
to the Settlement Agreement, the Company agreed to pay the Former Management Payments (as defined below) on the earlier of (a) the closing
date of the Company’s next financing transaction and (b) 30 days following the Effective Date of the Settlement Agreement, subject
to certain penalties for late payment. The “Former Management Payments” comprise (i) an aggregate amount of $803,260.65 (the
“Bonus Plan Payment”) that, as of the Effective Date, remains payable to the recipients of bonuses payable pursuant to that
certain Strategic Transaction Bonus Plan, adopted on July 24, 2023 and as amended (the “Bonus Plan”) together with (ii) an
aggregate amount of $303,372.87 (the “Loundermon Advisory Fee”) that, as of the Effective Date, is payable to Wendy Loundermon,
the Company’s former Chief Financial Officer and a former director of the Company (“Loundermon”), pursuant
to that certain Consulting Agreement, dated March 12, 2024, by and between the Company and Loundermon (the “Loundermon Consulting
Agreement”).

F-47

XTI
AEROSPACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

On March 31, 2025, the Company paid all amounts
due under the Former Management Payments in full.

Ali Release. As of the Effective
Date, Ali, on behalf of himself and his former and current affiliated entities, including 3AM, Grafiti LLC and Grafiti Group (collectively,
the “Ali Parties”) agreed to release the Company and each of its former and current subsidiaries, divisions, affiliates, predecessors,
successors, assigns, and its and their respective employees, officers, directors, shareholders, members, partners,