Company: XTIA
Filing Date: 2025-04-30
Form Type: 424B3
Source: 0001213900-25-037074
Chunk: 11

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-30
Form: 424B3
Chunk 11
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 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 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”). On March 31, 2025, the Company fully paid the
Former Management Payments.

. 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