Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 38

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 38
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, the Series B Convertible Preferred
Stock, and Common Stock. The Company shall not, without the consent of the Required Holders, authorize or issue any shares of senior
rank with respect to the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of
the Company, shares of pari passu rank with respect to the preferences as to dividends, distributions and payments upon the liquidation,
dissolution and winding up of the Company, or shares of junior ranking stock that have a maturity or redemption date prior to the first
anniversary of the Series C Preferred Stock issuance date.

Dividend
and Participation Rights: The holders of Series C Preferred Stock will be entitled to dividends, on an as-if converted basis, equal
to and in the same form as dividends actually paid on shares of Common Stock, when and if actually paid. Series C Preferred Stockholders
will be entitled to participate pro rata in any purchase rights extended to holders of Common Stock on an as-converted basis.

Conversion:
Each holder of Series C Preferred Stock may convert at any time, all, or any part, of the outstanding Series C Preferred Stock into shares
of the Common Stock at the initial “Conversion Price” of $448.00, which is subject to customary adjustments for stock splits.

Alternate
Conversion: Following the occurrence and during the continuance of a Trigger Event (as defined below), each holder may alternatively
elect to convert the Series C Preferred Stock at the “Alternate Conversion Price” equal to the lesser of the then current
Conversion Price and the greater of $39.20 (the “Series C Conversion Price Floor”) or 80% of the trailing 5-day daily volume
weighted average price of a share of Common Stock. Trigger Events include customary terms related to exchange listing, registration rights,
failure to deliver shares on conversion or exercise of derivative instruments, or insolvency. Notwithstanding the Series C Conversion
Price Floor, if the Series C Conversion Price Floor is greater than 80% of the 5-day volume weighted average price of a share of Common
Stock, then the Conversion Amount (as defined in the Series C Certificate of Designation) for such Series C Preferred Stock is increased
by a multiplier resulting in the convertibility of the shares of Series C Preferred Stock into the number of shares of Common Stock that
would have been issuable if the Alternate Conversion Price had been equal to such lower volume weighted average price.

Redemptions:
Upon bankruptcy or liquidation, Series C Preferred Stock