Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 624

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 624
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 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, demands, causes of action, damages,
obligations, liabilities, costs, and expenses of any kind or nature whatsoever (collectively, “XTI Claims”), arising out of
any obligations of the 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