Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 184

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 184
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 4.99% ( the “Maximum
Percentage”), which may be raised or lowered to any other percentage not in excess of 9.99%, at the option of the holder upon 61
days’ prior written notice to the Company.

Subject to certain exceptions outlined in the
Certificate of Designation, including, but not limited to, equity issuances in connection with its equity incentive plan and certain strategic
acquisitions, if the Company sells, enters into an agreement to sell, or grants any option to purchase, or sells, enters into an agreement
to sell, or otherwise disposes of or issues (or announces any offer, sale, grant or any option to purchase or other disposition) any shares
of common stock or any other securities that are at any time convertible into, or exercisable or exchangeable for, or otherwise entitle
the holder thereof to receive, common stock, at an effective price per share less than the Conversion Price of the Series B Preferred
Stock then in effect, the Conversion Price of the Series B Preferred Stock will be reduced to equal the effective price per share in such
dilutive issuance.

Redemption

Under the Certificate of Designation, the Company
has the right to redeem all, but not less than all, of the then outstanding shares of Series B Preferred Stock at a price equal to the
greater of (i) the Conversion Amount being redeemed and (ii) the product of (1) the Conversion Rate with respect to the Conversion Amount
being redeemed multiplied by (2) the greatest Closing Sale Price (as defined therein) of the common stock on any trading day during the
period commencing on the date immediately preceding the date of the Company’s notice to the holder(s) of Series B Preferred Stock
of such redemption and ending on the trading day immediately prior to the date the Company makes the entire redemption payment required
to be made under the Certificate of Designation.

29

La
Rosa Holdings Corp. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements

Dividends

The
Series B Preferred Stock bears no dividends.

Liquidation

In the event of a Liquidation Event (as defined
in the Certificate of Designation), the holders of the Series B Preferred Stock shall be entitled to receive in cash out of the assets
of the Company, whether from capital or from earnings available for distribution to its stockholders, before any amount shall be paid
to the holders of any shares of common stock, but pari