Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 269

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 269
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 shares of Common Stock, which will vest in equal monthly installments over
twenty-four months, subject to Dr. Pierce’s continued service; provided, that the vesting of 50% such options shall be accelerated
upon the FDA’s acceptance of our IND. Either party may terminate the Pierce Consulting Agreement at any time with at least 30 days’
prior written notice.

Annual Bonuses

We use annual cash incentive
bonuses for the named executive officers to motivate their achievement of short-term performance goals and tie a portion of their cash
compensation to performance. It is expected that, near the beginning of each year, the Compensation Committee will select the performance
targets, target amounts, target award opportunities and other terms and conditions of annual cash bonuses for the named executive officers,
subject to the terms of their employment agreements. Following the end of each year, the Compensation Committee will determine the extent
to which the performance targets were achieved and the amount of the award that is payable to each of the named executive officers. A
bonus plan was established for executive officers in 2024.

Equity Incentive Compensation

We believe it is important
to maintain a strong link between executive incentives and the creation of stockholder value. We believe performance and equity-based
compensation for our executives to be an important component of maximizing stockholder value while, at the same time, attracting, motivating
and retaining high-quality executives. Upon consummation of the Business Combination, we assumed options issued pursuant to the CERo
Therapeutics, Inc. 2016 Equity Incentive Plan, as amended (the “2016 Plan”), and we currently maintain the CERo Therapeutics
Holdings, Inc. 2024 Equity Incentive Plan (the “2024 Plan”) and the CERo Therapeutics Holdings, Inc. 2024 Employee Stock
Purchase Plan (the “2024 ESPP”).

As of December 31, 2023,
the 2016 Plan had options outstanding to purchase a total of 7,825 shares of common stock for a weighted average exercise price of $28.00
per share. On February 14, 2024, upon consummation of the Business Combination, these options were assumed by us and converted into options
to purchase shares in CERo at a conversion rate of 0.064452 underlying shares per legacy share and a strike price calculated as the legacy
strike price divided by 0.064452. This resulted in the issuance