Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 677

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 677
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 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 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