Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 265

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 265
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 may not be eligible for federal income tax deduction by
us pursuant to Section 280G of the Code. These payments and benefits may also be subject to an excise tax under Section 4999 of the Code.
If the payments or benefits payable to Mr. Atwood in connection with a change in control would be subject to the excise tax imposed under
Section 4999 of the Code, then those payments or benefits will be reduced if such reduction would result in a higher net after-tax benefit
to him.

Mr. Atwood resigned from
his position as Chief Executive Officer, effective on September 30, 2024. In connection with such resignation, on September 30, 2024,
Mr. Atwood and the Company entered into a consulting agreement (the “Atwood Consulting Agreement”), effective October 1,
2024, pursuant to which Mr. Atwood will provide consulting services for a period of 12 months following his resignation. Mr. Atwood will
receive a consulting fee of $25,000 per quarter. In connection with his entry into the Atwood Consulting Agreement, Mr. Atwood forfeited
all 13,318 of his outstanding options, and received an award of 5,080 options to purchase shares of Common Stock, which will vest (i)
50% upon the FDA’s acceptance of the Company’s IND and (ii) 50% upon the completion of a financing transaction generating
at least $1.5 million of gross proceeds, in each case subject to Mr. Atwood’s continued service with the Company.

Employment Agreement with Mr. Carter

On March 26, 2024, we entered
into an employment agreement with Mr. Carter, our Chief Financial Officer and Corporate Secretary (the “Carter Employment Agreement”).
Pursuant to the Carter Employment Agreement, Mr. Carter is entitled to an initial base salary of $350,000 and an initial target annual
incentive bonus of 35% of Mr. Carter’s base salary, an initial equity grant, and general eligibility to participate in our employee
benefit plans.

The Carter Employment Agreement
provides that in the event Mr. Carter’s employment is terminated by us without “cause” (other than as a result of Mr.
Carter’s death or disability) or by Mr. Carter with “good reason” (each as defined in the Carter Employment Agreement),
in either case within thirty days before or within twelve months following a “change in control” (as defined in the Carter