Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 236

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 236
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”). Each of Streeterville and 3AM also agreed that none of such breaches or failures of
perform shall constitute an Event of Default (as defined in the Certificate of Designations or the Secured Notes, as applicable) under
the Certificate of Designations or, in the case of Streeterville, the Secured Notes. The Consent Agreement provides that failure to timely
the remit the Redemption Proceeds as set forth in the Consent Agreement will be considered an Event of Default under the Certificate
of Designations, and the Series 9 Holders’ consent to the ATM Increase will be immediately and automatically withdrawn in
the event the Company fails to make payment pursuant to the Consent Agreement and such payment failure is not cured within one business day.
The Consent Agreement may only be terminated or modified with the written consent of the Series 9 Holders and the Company.

As
further inducement for 3AM to approve the ATM Increase, pursuant to the Consent Agreement, on November 17, 2024, the Company entered
into a Letter Agreement (the “Letter Agreement”) with Nadir Ali, on behalf of himself and on behalf of 3AM, Grafiti Group
LLC (“Buyer”) and Grafiti LLC (“Grafiti”). Pursuant to the Letter Agreement, the Company agreed to amend that
certain Equity Purchase Agreement, dated as of February 16, 2024 (the “Equity Purchase Agreement”), by and among the
Company, Grafiti and Buyer, to remove the inclusion of any Net Income After Taxes in the Purchase Price (as such terms are defined in
the Equity Purchase Agreement) effective immediately upon execution of the Letter Agreement, and thereby waive future payments to the
Company of any Net Income After Taxes under the Equity Purchase Agreement. As previously described in a Current Report on Form 8-K
filed by the Company on February 23, 2024, the Company entered into the Equity Purchase Agreement to divest the businesses held
by Grafiti, then a wholly-owned subsidiary of the Company, by transferring 100% of the equity interest in Grafiti to Buyer. Nadir Ali
is the Managing Member of Buyer, which is the managing Member of Grafiti.

Additionally,
pursuant to the Letter Agreement, the Company agreed to (i) pay an amount equal to $426,006.00 representing amounts that remain
outstanding and payable to Mr. Nadir Ali in accordance with the terms of