Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 45

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 45
---
 or other assets to which such holder would have been entitled with respect to such shares of Common Stock had such
shares of Common Stock been held by such holder upon consummation of such corporate event.

Company
Optional Redemption. At any time the Company shall have the right to redeem in cash all, but not less than all, the shares of Series D
Preferred Stock then outstanding at 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.

20