Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 183

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 183
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 B Preferred Stock have 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 of the Company, and are not entitled to call a meeting of such holders for any
purpose, nor are they entitled to participate in any meeting of the holders of common stock of the Company, except as provided in the
Section 16 of the Certificate of Designation or as otherwise required by the Nevada Revised Statutes.

Conversion
Rights

Subject to the Maximum Percentage, holders of
outstanding shares of Series B Preferred Stock 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 the stated value thereof (or $1,000 per share) and any other unpaid amounts owed to such holder(s) under the Exchange
Documents (as defined in the Exchange Agreement); (ii) “Conversion Rate” means the amount determined by dividing (x) such
Conversion Amount by (y) the Conversion Price; (iii) “Conversion Price”, as of any date of determination and subject to adjustment
as provided therein (if any), at the option of the converting holder(s), either: (A) $20.00 per share (subject to adjustment), or (B)
the “Alternate Conversion Price”; and (iv) “Alternate Conversion Price” means the greater of (x) the “Floor
Price” of $6.56 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events) and (y)
95% of the lowest VWAP (as defined in the Certificate of Designation) of the common stock during the seven (7) consecutive trading day
period ending and including the trading day immediately preceding the delivery or deemed delivery of the applicable conversion notice.
In the event the holder elects to convert the Series B Preferred Stock at the Alternate Conversion Price, the Conversion Amount shall
be multiplied by (i) if in connection with a Change of Control (as defined in the Certificate of Designation, 105% or (ii) otherwise,
125%,

A
holder of Series B Preferred Stock does not have the right to convert any portion of their shares thereof to the extent that, after giving
effect to such conversion, the holder (together with its affiliates) would beneficially own in excess of the