Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 237

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 237
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 that certain Amended and Restated Employment Agreement,
dated as of May 15, 2018, as further amended on March 22, 2024, by and between XTI and Nadir Ali (the “Employment Agreement”),
with payment to be made in full no later than November 19, 2024 (the “Severance Payment”) and (ii) pay an amount
equal to $60,000 representing the total monthly cash service fee currently outstanding and payable pursuant to that certain Consulting
Agreement dated March 12, 2024, by and between XTI and Nadir Ali (the “Ali Consulting Agreement”), no later than November 19,
2024 (the “Consulting Payment”). The Company paid Mr. Ali the Severance Payment and the Consulting Payment in full on
November 18, 2024.

Furthermore,
                                            the Letter Agreement provides that in the event that the Company breaches the terms and conditions
                                            of the Letter Agreement or fails to satisfy the conditions and obligations described therein,
                                            the Consent Agreement as provided by 3AM shall be deemed to be void ab initio.

Pursuant
to the Letter Agreement, Nadir Ali and 3AM agreed to waive any past breach of or failure to perform any of the Company’s covenants,
obligations, conditions or agreements contained in the Employment Agreement and the Consulting Agreement relating to the Severance Payment
and the Consulting Payment as applicable.

76

Payments
of Redemption Proceeds Pursuant to the Consent Agreement

Pursuant
to the Consent Agreement, the Company delivered an aggregate of $492,331 to Streeterville and $302,116 to 3AM during the period from
November 17, 2024 through December 31, 2024, via wire transfer of immediately available funds, which amounts represent the Redemption
Proceeds payable to Streeterville and 3AM, respectively, in connection with amounts raised from sales under the ATM. Such payments were
made for 469.00 shares of the Company’s Series 9 Preferred Stock held by Streeterville and 287.70 shares of the Company’s
Series 9 Preferred Stock held by 3AM. The Company entered into acknowledgment agreements with each of Streeterville and 3AM
to record such payments.

Securities
Purchase Agreement with 3AM

On March 12, 2024, the
Company entered into the SPA with 3AM, an entity controlled by Nadir Ali, the