Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 99

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 99
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 The outstanding obligations under each September 2024 Note accrues
interest at a rate equal to the Secured Overnight Financing Rate plus 2% per annum, adjusted quarterly, but interest is only payable
upon the maturity date of the September 2024 Note as long as there is no event of default thereunder. Each September 2024 Note is unsecured
and expressly subordinated to any senior debt of the Borrowers. The September 2024 Notes and the Note Purchase Agreements do not include
any operational or financial covenants for the Borrowers. Each September 2024 Note includes customary events of default for failure to
pay amounts due on the maturity date, for failure to otherwise comply with the Borrowers’ covenants thereunder or for Borrower
insolvency events, in each case, with customary cure periods, and upon an event of default, the Investor may accelerate all obligations
under its September 2024 Note and the Borrowers will be required to pay for the Investor’s reasonable out-of-pocket collection
costs.

The outstanding obligations
under each September 2024 Note are convertible in whole or in part into shares of Common Stock (the “Conversion Shares”)
at a conversion price of $7.50 per share (subject to equitable adjustment for stock splits, stock dividends and the like with respect
to the Common Stock after the Financing Closing) (the “Conversion Price”) at any time after the Financing Closing at the
sole election of the Investor. The outstanding obligations under each September 2024 Note will automatically convert at the Conversion
Price if (i) the Company or its subsidiaries consummate one or more additional financings for equity or equity-linked securities for
at least $20 million in the aggregate or makes one or more significant acquisitions valued in the aggregate (based on the consideration
provided by the Company and its subsidiaries) to be at least $20 million, (ii) the Investors holding a majority of the aggregate outstanding
obligations under the September 2024 Notes expressly agree to convert all obligations under the September 2024 Notes or (iii) the Common
Stock trades with an average daily VWAP of at least $10.00 (subject to equitable adjustment for stock splits, stock dividends and the
like with respect to the Common Stock after the Financing Closing) for ten (10) consecutive trading days. The obligations under each
September 2024 Note will also automatically convert in connection with a Brokerage Transfer, as described below.

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