Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 673

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 673
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 Ali Parties with respect to any obligation of the Ali Parties in connection with the payment of
the purchase price as set forth in the Equity Purchase Agreement, the Ali Consulting Agreement, the Series 9 Purchase Agreement and the
portion of the Bonus Plan relating to Ali, whether known or unknown, foreseen or unforeseen, that the XTI Parties, or any of them, ever
had, now have, or may have against the Ali Parties, or any of them, from the beginning of time through and including the Completion Date.

Entire Agreement. The
Settlement Agreement provides that it supersedes any prior consents or agreements regarding the allocation of financing proceeds for the
payment of any obligations of the Company described in the Settlement Agreement.

February
2025 Consent from 3AM

On February 12, 2025, the
Company obtained a written consent (the “February 2025 Consent”) from 3AM as the Required Holder (as defined below) of the
Company’s Series 9 Preferred Stock, in connection with the Company’s now expired “at the market” offering program
pursuant to that certain Equity Distribution Agreement, dated as of July 22, 2022, by and between the Company and Maxim Group LLC, as
amended from time to time (the “ATM”). Pursuant to the February 2025 Consent, 3AM authorized the Company to raise up to an
additional $10 million of common stock under the ATM in consideration for the Company’s agreement to pay 20% of the gross proceeds
(the “Payment Amount”) of any sale by the Company of any debt or equity securities of the Company, including but not limited
to sales of common stock under the ATM (each, a “Financing”), (a) first, to those certain employees and other service providers,
including Nadir Ali, Wendy Loundermon (the Company’s former Chief Financial Officer and a former director of the Company) and Soumya
Das (the Company’s Chief Executive Officer of its Real Time Location System Division and a current director of the Company) (the
“Bonus Plan Recipients”), entitled to bonuses payable pursuant to that certain Transaction Bonus Plan, adopted on July 24,
2023, as amended from time to time (“Bonus Plan Payments”); and (b) second, to the extent the Bonus Plan Payments have been
fully satisfied, any remaining portion of the Payment Amount shall be applied to the redemption of outstanding shares of the Series 9
Preferred