Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 80

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 80
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 the
termination of such Ali Consulting Agreement prior to the 15 month anniversary of the effective date thereof, the Company agreed
(i) that the aggregate amount of $1,000,000 (the “Grafiti Purchase Amount”) required to be delivered by Grafiti Group pursuant
to that certain Equity Purchase Agreement, dated February 16, 2024, by and among the Company, Grafiti LLC, and Grafiti Group, as amended
(the “Equity Purchase Agreement”), shall be deemed to be satisfied in full and no further amounts shall be payable to the
Company by Grafiti Group or any of its affiliated parties pursuant to the Equity Purchase Agreement; (ii) to deliver a cash amount of
$60,000 (the “Outstanding Amount”) to Ali by wire transfer of immediately available funds; and (iii) to deliver $1,500,000
(the “Deferred Amount”) by wire transfer of immediately available funds in three equal installments of $500,000 (“Installment
Amounts”) each on June 30, 2025, September 30, 2025 and December 30, 2025 (the “Deferred Amount Installment Dates”).
Any Installment Amount that is not paid by the applicable due dates will be subject to interest at a rate 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 (