Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 191

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 191
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 a 25% redemption premium to the greater of (x) the amount of shares being redeemed, and (y) the equity value
of the Common Stock underlying the Series D Preferred Stock. The equity value of the Common Stock underlying the Series D Preferred
Stock is calculated using the greatest closing sale price of the Common Stock on any trading day immediately preceding the date the
Company notifies the holders of the Company’s election to redeem and the date the Company makes the entire payment required.

Fundamental Transactions.
The Certificate of Designations prohibit the Company from entering specified fundamental transactions (including, without limitation,
mergers, business combinations and similar transactions) unless the Company (or the Company’s successor) assumes in writing all
of the Company’s obligations under the Certificate of Designations and the other Transaction Documents (as defined in the Series D
Certificate of Designations).

Voting Rights. The
holders of the Series D Preferred Stock shall have no voting power and no right to vote on any matter at any time, either as a separate
series or class or together with any other series or class of share of capital stock, and shall not be entitled to call a meeting of such
holders for any purpose nor shall they be entitled to participate in any meeting of the holders of Common Stock, except as provided in
the Certificate of Designations (or as otherwise required by applicable law).

Covenants. The Series D
Certificate of Designations contains a variety of obligations on the Company’s part not to engage in specified activities. In particular,
the Company will not, and will cause the Company’s subsidiaries to not, redeem, repurchase or declare any dividend or distribution
on any of the Company’s capital stock (other than as required under the Series D Certificate of Designations) and will not
incur any indebtedness other than ordinary course trade payables or, subject to certain exceptions, incur any liens. In addition, the
Company will not issue any preferred stock or issue any other securities that would cause a breach or default under the Series D
Certificate of Designations.

Reservation Requirements.
So long as any Series D Preferred Stock remains outstanding, the Company shall at all times reserve at least 250% of the number of
shares of Common Stock as shall from time to time be necessary to effect the conversion of all Series D Preferred Stock then outstanding.

On April 21, 2025, the Company
entered into a Securities Purchase Agreement (the “Fourth Securities Purchase