Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 57

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 57
---
.0001 each (“ Series
A Preferred Shares” or the “ Subject Shares”), with the following terms:

I.

II.
each Series A Preferred Share is convertible into one (1) ordinary share of the Company, par value $0.0001 (“ Ordinary Share”)
at any time at the option of the holder thereof. The right to convert shall be exercisable by the holder of the Series A Preferred Share
delivering a written notice to the Company that such holder elects to convert a specified number of Series A Preferred Share into Ordinary
Shares. In no event shall Ordinary Shares be convertible into Series A Preferred Shares; and

III.
upon any sale, transfer, assignment or disposition of any Series A Preferred Share by such shareholder of the Company to any person who
is not an affiliate of such shareholder, or upon a change of control of any Series A Preferred Share to any person who is not an affiliate
of the registered shareholder of such share, as determined by the Board, such Series A Preferred Share shall be automatically and immediately
converted into one Ordinary Share (the “ Automatic Conversion”). For the avoidance of doubt, (i) a sale, transfer, assignment
or disposition shall be effective upon the Company’s registration of such sale, transfer, assignment or disposition in the register
of members of the Company; and (ii) the creation of any pledge, charge, encumbrance or other third party right of whatever description
on any Series A Preferred Share to secure a holder’s contractual or legal obligations shall not be deemed as a sale, transfer,
assignment or disposition unless and until any such pledge, charge, encumbrance or other third party right is enforced and results in
the third party holding legal title to the relevant Series A Preferred Shares, in which case all the relevant Series A Preferred Shares
shall be automatically converted into the same number of Ordinary Shares; and

IV.
other than the Automatic Conversion, any conversion of Series A Preferred Shares into Ordinary Shares by a holder thereof (the “ Conversion
Shareholder”) shall be effected by means of the repurchase of each relevant Series A Preferred Share for cancellation and allotting
and issuance of an Ordinary Share, credited as fully paid (the “ Ordinary Conversion”). Both the Automatic Conversion and
the Ordinary Conversion shall become effective forthwith upon the Register of Members being updated; and

V.

On
February 19, 2025 (the “ Grant Date”), the Compensation Committee (“ Committee”) of the Board of Directors (the
“ Board”) of the