Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 30

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 30
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 in the same
form as dividends actually paid on shares of Common Stock, when and if actually paid. Series A Preferred Stockholders will be entitled
to participate pro rata in any purchase rights extended to holders of Common Stock on an as-converted basis.

Conversion: Each holder
of Series A Preferred Stock may convert at any time, all, or any part, of the outstanding Series A Preferred Stock into shares of the
Common Stock at the initial “Conversion Price” of $1,000, which is subject to customary adjustments for stock splits. The
Company’s Board of Directors has the right, at any time, with the written consent of the Required Holders (as defined in the Certificate
of Designation of Preferences, Rights and Limitations of the Series A Convertible Preferred Stock (the “Series A Certificate of
Designations”)), to lower the fixed conversion price to any amount and for any period of time. If 90 days or 180 days following
the occurrence of the effective date of the registration statement filed pursuant to the First PIPE Registration Rights Agreement, the
Conversion Price then in effect is greater than the greater of $100.00 and the Market Price (as defined in the Series A Certificate of
Designations) then in effect (the “Adjustment Price”), the Conversion Price shall automatically lower to the Adjustment Price.
In connection with such adjustment provisions, the Conversion Price was reset to $100.00.

16

Alternate
Conversion: Following the occurrence and during the continuance of a Trigger Event (as defined below), each holder may
alternatively elect to convert the Series A Preferred Stock at the “Alternate Conversion Price” equal to the lesser of
the Conversion Price and the greater of $100.00 (the “Series A Conversion Price Floor”) or 80% of the 5-day volume
weighted average price of a share of Common Stock. Trigger Events include customary terms related to exchange listing, registration
rights, failure to deliver shares on conversion or exercise of derivative instruments, or insolvency. Notwithstanding the Series A
Conversion Price Floor, if the Series A Conversion Price Floor is greater than 80% of the 5-day volume weighted average price of a
share of Common Stock, then the Conversion Amount (as defined in the Certificates of Designations) is increased by a multiplier
resulting in the convertibility of the shares of Series A Preferred Stock into the number of shares of Common Stock that would have
been issuable if the Alternate Conversion Price had been equal to such