Company: PFSA
Filing Date: 2025-07-18
Form Type: 8-K
Source: 0001213900-25-065686
Chunk: 29

Company: Profusa, Inc.
Filing Date: 2025-07-18
Form: 8-K
Chunk 29
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ed average price per share (“VWAP”) of New Profusa Common Stock in the
10 trading days prior to the original issue date of the Initial Note and shall be adjusted, without limitation, based on down-round and
most-favored nation (MFN) price and terms protections (the “Conversion Price”).

The Initial Note includes
a “Minimum Interest Amount” equal to 10% of the principal amount, which represents a full year of interest payments under
the Initial Note; provided, that such Minimum Interest Amount shall be reduced by the amount of interest accrued on the principal amount
of the Initial Note. Interest shall accrue on the aggregate unconverted and then outstanding principal amount of the Initial Note at a
rate of 10% per annum, provided that the Minimum Interest Amount shall be fully earned and accrued on the original issue date of the Initial
Note. Upon an event of default, the interest rate shall be adjusted and increase to 24% per annum. Payments made in cash under the Initial
Note shall be subject to a 5% fee, which shall be in addition to any amounts owed thereunder. The Initial Note provides for certain events
of default that are typical for a transaction of this type, including, among other things, any breach of the representations or warranties
made by New Profusa or its subsidiaries. The Initial Note also provides for a 10% late fee in case of late payments and mandatory prepayments
upon Subsequent Offerings (as defined in the Initial Note) and, in the absence of an event of default, may be prepaid upon 10 business
days prior notice, subject to certain conversion rights of the PIPE Investors.

The Initial Note may not be
converted by the PIPE Investors into shares of New Profusa Common Stock if such conversion would result in the investors or their affiliates
owning in excess of 4.99% of the number of shares of New Profusa Common Stock outstanding immediately after giving effect to the issuance
of all shares issuable upon conversion of the Initial Note (the “Beneficial Ownership Limitation”); provided, that the PIPE
Investors may increase or decrease the Beneficial Ownership Limitation upon at least 61 days’ prior notice to New Profusa so long
as such increase does not exceed 9.99% of the number of shares of New Profusa Common Stock outstanding immediately after giving
effect to the issuance of all shares issuable upon conversion of the Initial Note.

The Company issued the Initial
Note pursuant to the exemption