Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 170

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 170
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or sale of such Series D Purchase Rights at the Series D Alternate Conversion Price (as defined below); subject to certain
limitations on beneficial ownership.

Conversion
Rights

Conversion
at Option of Holder. Each holder of Series D Preferred Stock may convert all, or any part, of the outstanding Series D
Preferred Stock, at any time at such holder’s option, into shares of the Common Stock (which converted shares of Common Stock are
referred to as “Series D Conversion Shares” herein) at the fixed “Series D Conversion Price” of $15.60,
which is subject to proportional adjustment upon the occurrence of any stock split, stock dividend, stock combination and/or similar
transactions.

Voluntary
Adjustment Right. Subject to the rules and regulations of the Nasdaq, the Company has the right, at any time after the Stockholder
Approval Date (as defined below), with the written consent of the Required Holders, to lower the fixed conversion price to any amount
and for any period of time deemed appropriate by the board of directors of the Company.

Alternate
Conversion Upon a Triggering Event. Following the occurrence and during the continuance of a Series D Triggering Event (as defined
below), each holder may alternatively elect to convert the Series D Preferred Stock at the “Series D Alternate Conversion
Price” equal to the lesser of:

●The
                                            applicable Conversion Price, and

●the
                                            greater of:

●the floor price of $3.12; and

●80% of the lowest volume weighted average price of the Common Stock during the five consecutive trading days immediately prior to such conversion.

 The
Series D Certificate of Designations contains standard and customary triggering events (each, a “Series D Triggering
Event”), including but not limited to: (i) the suspension from trading or the failure to list the Common Stock within certain
time periods; (ii) failure to declare or pay any dividend when due; (iii) the failure to timely file or make effective a registration
statement on Form S-1 or Form S-3 pursuant to the Registration Rights Agreement (as defined below), (iv) the Company’s
failure to cure a conversion failure or notice of the Company’s intention not to comply with a request for conversion of any Series D
Preferred Stock, and (iv) bankruptcy or insolvency of the Company.

19

Other Adjustments. In
connection