Company: XAIR
Filing Date: 2025-11-05
Form Type: 8-K
Source: 0001493152-25-020888
Chunk: 4

Company: Beyond Air, Inc.
Filing Date: 2025-11-05
Form: 8-K
Item: Item 2.03
Chunk 4
---
 that the Trigger Effect may only be
applied three times with respect to Major Trigger Events and three times with respect to Minor Trigger Events. Subject to certain exceptions
described below, if the Company fails to cure a Trigger Event within five trading days following the date of transmission of a written
demand notice by the Lender, the Trigger Event will automatically become an Event of Default (as defined in the Note). Following the
occurrence of any Event of Default, the Lender may, upon written notice to the Company, (i) accelerate the Note, with the outstanding
balance of the Note following application of the Trigger Effect (the “ Mandatory Default Amount”) becoming immediately due
and payable in cash, and (ii) cause interest on the outstanding balance of the Exchange Note beginning on the date the applicable Event
of Default occurred to accrue at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted under applicable
law. Notwithstanding the foregoing, upon the occurrence of certain Trigger Events related to bankruptcy or insolvency, immediately and
without notice, an Event of Default will be deemed to have occurred and the outstanding balance of the Exchange Note as of the date of
the occurrence of such Bankruptcy-Related Trigger Event will become immediately and automatically due and payable in cash at the Mandatory
Default Amount.

$6,000,000
of the net proceeds from the Note were wired to the Company and $6,000,000 were sent to a deposit account owned and controlled by the
Company’s new wholly-owned subsidiary XAIR Holdings, LLC (“ Xair Holdings”). The Note is secured by a deposit account
control agreement (the “ DACA”) with an initial cash collateral requirement of $6,000,000, which requirement will be reduced
by $0.50 for every $1.00 of principal repaid on the outstanding balance for the first $3,000,000 million repaid, and further reduced
by $0.75 for every $1.00 repaid thereafter. Once the balance of the cash collateral account is $1,000,000 or less, the collateral requirement
shall terminate and the Company may withdraw the remaining funds at its discretion. In addition to the DACA, the Note is secured
by (i) a guaranty from XAIR Holdings, LLC (the “ XAIR Holdings Guaranty”), (ii) a guaranty from certain foreign
subsidiaries (the “ Foreign Subsidiary Guaranty”), and (iii