Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2137

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 2137
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itled to receive any dividends paid or distributions made to our holders of Common Stock on an “as if converted” basis.

The December 2024 Common
Warrants prohibit us from entering into specified fundamental transactions unless the successor entity assumes all of our obligations
under the December 2024 Common Warrants under a written agreement before the transaction is completed. Upon specified corporate events,
a holder of December 2024 Common Warrants will thereafter have the right to receive upon an exercise such shares, securities, cash, assets
or any other property whatsoever which the holder would have been entitled to receive upon the happening of the applicable corporate event
had the December 2024 Common Warrants been exercised immediately prior to the applicable corporate event. Upon the consummation of any
Fundamental Transaction, the Company shall exchange the December 2024 Common Warrants for consideration equal to the Black Scholes Value
of such portion of the December 2024 Common Warrants subject to exchange (collectively, the “Aggregate Black Scholes Value”)
in the form of, at the Company’s election (such election to pay in cash or by delivery of the Rights (as defined below), a “Consideration
Election”), either (I) rights (with a beneficial ownership limitation, mutatis mutandis) (the “Rights”), convertible
in whole, or in part, at any time, without the requirement to pay any additional consideration, at the option of the Holder, into such
Corporate Event Consideration applicable to such Fundamental Transaction equal in value to the Aggregate Black Scholes Value issuable
upon conversion of the Rights to be determined in increments of 10% (or such greater percentage as the Holder may notify the Company from
time to time) of the portion of the Aggregate Black Scholes Value attributable to such Shares (the “Share Value Increment”),
with the aggregate number of Shares issuable upon exercise of the Rights with respect to the first Successor Share Value Increment determined
based on 70% of the Closing Bid Price of the Shares on the date the Rights are issued and on each of the nine subsequent Trading Days,
in each case, the aggregate number of additional Shares issuable upon exercise of the Rights shall be determined based upon a Share Value
Increment at 70% of the Closing Bid Price of the Shares in effect for such corresponding Trading Day (such ten (10) Trading Day period
commencing on, and including, the date the Rights are issued, the “Rights Measuring Period”)), or (II)