Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 34

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 34
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Stock.

Dividend and Participation
Rights: The holders of Series A 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 A 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 A Preferred Stock may convert at any time, all, or any part, of the outstanding Series A Preferred Stock into shares of the
Common Stock at the initial “Conversion Price” of $20,000, which is subject to customary adjustments for stock splits. The
Company’s Board of Directors has the right, at any time, with the written consent of the Required Holders (as defined in the Certificate
of Designation of Preferences, Rights and Limitations of the Series A Convertible Preferred Stock (the “Series A Certificate of
Designations”), to lower the fixed conversion price to any amount and for any period of time. If 90 days or 180 days following the
occurrence of the effective date of the registration statement filed pursuant to the First PIPE Registration Rights Agreement, the Conversion
Price then in effect is greater than the greater of $2,000.00 and the Market Price (as defined in the Series A Certificate of Designations)
then in effect (the “Adjustment Price”), the Conversion Price shall automatically lower to the Adjustment Price. In connection
with such adjustment provisions, the Conversion Price was reset to $2,000.00.

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 A Preferred Stock at the “Alternate Conversion Price” equal to the lesser of the Conversion Price and the greater
of $2,000.00 (the “Series A Conversion Price Floor”) or 80% of the 5-day 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 A Conversion Price Floor, if the Series A 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 Certificates of Designations) is increased by a multiplier resulting in the convertibility of