Company: XTIA
Filing Date: 2025-11-21
Form Type: PRER14A
Source: 0001213900-25-113701
Chunk: 12

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-21
Form: PRER14A
Chunk 12
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 all unpaid accrued and accumulated
Preferential Dividends on such share (whether or not declared) by the Conversion Price. To the extent not converted in connection with
a mandatory conversion, each share of Series 10 Preferred Stock will be convertible, from and after the Shareholder Approval Date, at
the option of the holder, into that number of shares of the Company’s common stock determined in accordance with the formula in
the preceding sentence.

Each outstanding share of
Series 10 Preferred Stock is entitled to receive, in preference to shares of Junior Securities (as defined in the Certificate of Designation),
cumulative dividends (“Preferential Dividends”), payable quarterly in arrears, at an annual rate of 12.0% of the Stated Value.
Preferential Dividends will be payable, at the option of the Company, either in-kind in shares of the Company’s common stock, through
an accrual on the Stated Value of the Series 10 Preferred Stock or in cash, subject to, with respect to the issuance of shares of the
Company’s common stock, the receipt of Shareholder Approval and the Beneficial Ownership Limitation. The rights to Preferential
Dividends expire automatically on the two-year anniversary of the original issuance date of the Series 10 Preferred Stock. In addition,
each holder of Series 10 Preferred Stock will be entitled to receive dividends equal to, on an as-converted to shares of the Company’s
common stock basis, and in the same form as, dividends actually paid on shares of the Company’s common stock when, as, and if such
dividends are paid on shares of the Company’s common stock.

No shares of the Company’s
common stock may be issued upon conversion of, or as a dividend on, the Series 10 Preferred Stock, if the holder, together with its affiliates,
would beneficially own in excess of 4.99% (or, at the election of the holder, 9.99%) of the number of shares of the Company’s common
stock outstanding immediately after giving effect to such conversion (the “Beneficial Ownership Limitation”).

To the extent that the issuance
of shares of the Company’s common stock upon conversion of, or as a dividend on, the Series 10 Preferred Stock would result in
the holder exceeding the Beneficial Ownership Limitation, then, in lieu of the issuance of such shares, at the election of the holder,
(i) the holder will be issued such shares in