Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 81

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 81
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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”).

41

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,
trustees, joint venturers, attorneys, agents, and representatives (collectively, the “XTI Parties”), from and with respect
to any and all claims, demands, causes of action, damages, obligations, liabilities, costs, and expenses of any kind or nature whatsoever
(collectively, “Ali Claims”), arising out of any obligations of the Company with respect to 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 Ali Parties, or any of them, ever had, now have, or may have against the XTI Parties, or any of them, from the beginning of time through
and including the Completion Date (as defined below). As used in the Settlement Agreement, the term “Completion Date” means
the date on which the Company has delivered (i) the Series 9 Redemption Amount to Ali by wire transfer of immediately available funds;
(ii) the Deferred Amount to Ali by wire transfer of immediately available funds; (iii) the Outstanding Amount to Ali by wire transfer
of immediately available funds; (iv) the Former Management Payments to Loundermon and the recipients of the Bonus Plan Payments by wire
transfer of immediately available funds.

XTI Release. As of
the Effective Date, the XTI Parties agreed to release the Ali Parties from and with respect to any and all claims