Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 40

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 40
---
 required holder votes are obtained to create a class of stock
senior to Series C Preferred Stock.

Ranking: The Series
C Preferred Stock are senior in rank with respect to the preferences as to dividends, distributions and payments upon the liquidation,
dissolution and winding up of the Company to the Series A Convertible Preferred Stock, 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.

17

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