Company: LRHC
Filing Date: 2025-02-25
Form Type: PRE 14C
Source: 0001213900-25-016765
Chunk: 8

Company: La Rosa Holdings Corp.
Filing Date: 2025-02-25
Form: PRE 14C
Chunk 8
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 Note and sixteen (16) Incremental Warrants to purchase up to $40,000,000 original principal amount Incremental
Notes.

The Securities Purchase Agreement
includes customary representations, warranties and covenants by the Company and standard closing conditions. The Securities Purchase Agreement
also requires that the Company obtain the Stockholder Approvals by the Stockholder Meeting Deadline as described above. In accordance
with the Securities Purchase Agreement: (i) the Company, in addition to the Initial Note and Incremental Warrants, executed and delivered
to the Investor the Registration Rights Agreement and Security Agreement (as such terms are defined below); (ii) each subsidiary of the
Company (each, a “Subsidiary”) executed and delivered to the Investor the Security Agreement and Subsidiary Guaranty (as defined
below); (iii) the Majority Stockholder executed and delivered to the Investor the Voting Agreement (as defined below); and (iv) the Majority
Stockholder and institutional investor in our Common Stock executed and delivered to Investor a Lock-Up Agreement. These other “Transaction
Documents” (as defined in the Notes) are briefly described hereinbelow.

Payment

All outstanding principal,
accrued and unpaid interest and accrued and unpaid Late Charges (as defined in the Notes), if any, on such principal and interest under
the Notes are due and payable on the second anniversary of the respective issuance dates of thereof.

Interest on the Notes 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 (“Interest Shares”)
and is otherwise be payable in cash.

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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 our 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, and any other unpaid