Company: CXAI
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001829126-25-002457
Chunk: 42

Company: CXApp Inc.
Filing Date: 2025-04-08
Form: 424B3
Chunk 42
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 to Avondale at closing.

Under the Avondale Purchase
Agreement, each Pre-Paid Purchase has a principal balance upon which Avondale may, at its option, require the Company to deliver shares
of Common Stock (“Purchase Shares”) in full or partial satisfaction of that balance. The Company will deliver Purchase Shares
at the per-share price specified in the relevant Pre-Paid Purchase (the “Purchase Share Purchase Price”), subject to a defined
floor price and satisfaction of conditions. Each Pre-Paid Purchase is treated as a separate instrument, with a distinct outstanding balance
and holding period.

The Initial Pre-Paid Purchase
includes: (i) a principal amount of $4,200,000; (ii) an original issue discount of $200,000 (the “OID”); and (iii) a $10,000
“Transaction Expense Amount” to cover Avondale’s legal, administrative, and due diligence costs. Accordingly, the net
amount funded at closing was $4,000,000. In connection with the Initial Pre-Paid Purchase, we issued the 80,000 Commitment Shares to Avondale.
Under the Initial Pre-Paid Purchase, if Avondale elects to receive Purchase Shares, the Purchase Share Purchase Price is the lower of:
(ii) 120% of the Nasdaq-defined Minimum Price (measured on the trading day immediately prior to the applicable closing date), or (ii)
91% of the lowest daily volume-weighted average price (“VWAP”) for the ten consecutive trading days immediately preceding
the relevant purchase notice date, subject in all cases to a floor price equal to 20% of the Minimum Price.

As long as conditions in the
Avondale Purchase Agreement are met—including minimum trading volume thresholds and obtaining stockholder approval under the Nasdaq
20% Rule—we may request additional Pre-Paid Purchases. Each subsequent Pre-Paid Purchase would: (i) bear an original issue discount
of 5% of the requested amount; (ii) include no additional transaction expense beyond the initial $10,000; (iii) be subject to a floor
price equal to 20% of the applicable Minimum Price, and (iv) have a “fixed price” capped at 120% of the Minimum Price on the
closing date for that subsequent Pre-Paid Purchase. We are not obligated to seek or utilize additional Pre-Paid Purchases beyond the initial
closing, and we retain full discretion to do so or forego