Company: LRHC
Filing Date: 2025-02-05
Form Type: 8-K
Source: 0001213900-25-010286
Chunk: 2

Company: La Rosa Holdings Corp.
Filing Date: 2025-02-05
Form: 8-K
Item: Item 1.01
Chunk 2
---
 excess of 19.99% of the Company’s outstanding Common Stock at a per share price less than
the minimum price required by the Principal Market.

Senior Secured Convertible
Notes

Interest on the Note
commences accruing on the issuance date thereof at an annual rate of 12% per annum computed on the basis of a 360-day year and the actual
number of days elapsed in each month and is payable in arrears for on the first trading day of each fiscal quarter with the first such
date being April 1, 2025. Interest may be paid in certain limited conditions in shares of the Company’s Common Stock and shall otherwise
be payable in cash.

Conversion Rights.

Subject to the Maximum
Percentage (as defined below), holders of outstanding Notes are entitled to convert any portion of the outstanding and unpaid Conversion
Amount (as hereinafter defined) thereof into shares of Common Stock at the Conversion Rate (as hereinafter defined). For such purpose:
(i) “ Conversion Amount” means 100% of the sum of the portion of the principal of the Note to be converted, the accrued and
unpaid interest thereon, certain specific accrued and unpaid Late Charges (as defined in the Notes), and any other unpaid amounts pursuant
to the Transaction Documents (as defined in the Notes); (ii) “ Conversion Rate” means the amount determined by dividing (x)
such Conversion Amount by (y) the Conversion Price; and (iii) “ Conversion Price”, as of any date of determination and subject
to adjustment as provided therein (if any): (A) with respect to the Initial Note, 115% of the Closing Sale Price (as defined) of the Common
Stock on the trading day prior to the Closing Date; and (B) with respect to any Incremental Note, the lower of (x) 115% of Closing Sale
Price on the trading Day prior to the relevant funding date of such Incremental Note and (y) the lowest Conversion Price in effect of
any then outstanding Note or Incremental Note.

Subject to the Maximum
Percentage (as defined below), holders of the Notes may alternatively convert (each, an “ Alternate Conversion”) all or any
part of the Conversion Amount thereof into shares of Common Stock at a conversion rate equal to the quotient of (x) 120% of the Conversion
Amount divided by (y) the Alternate Conversion Price. For such purpose: (i) “ Alternate Conversion Price” means that price
which is the lower