Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 51

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 51
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i) “Conversion
Amount” means the stated value thereof (or $1,000 per share) and any other unpaid amounts owed to such holder(s) under the Exchange
Documents (as defined in the Exchange Agreement); (ii) “Conversion Rate” means the amount determined by dividing (x) such
Conversion Amount by (y) the Conversion Price; (iii) “Conversion Price”, as of any date of determination and subject to adjustment
as provided therein (if any), at the option of the converting holder(s), either: (A) $20.00 per share (subject to adjustment), or (B)
the “Alternate Conversion Price”; and (iv) “Alternate Conversion Price” means the greater of (x) the “Floor
Price” of $6.56 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events) and (y)
95% of the lowest VWAP (as defined in the Certificate of Designation) of the common stock during the seven (7) consecutive trading day
period ending and including the trading day immediately preceding the delivery or deemed delivery of the applicable conversion notice.
In the event the holder elects to convert the Series B Preferred Stock at the Alternate Conversion Price, the Conversion Amount shall
be multiplied by (i) if in connection with a Change of Control (as defined in the Certificate of Designation, 105% or (ii) otherwise,
125%,

A
holder of Series B Preferred Stock does not have the right to convert any portion of their shares thereof to the extent that, after giving
effect to such conversion, the holder (together with its affiliates) would beneficially own in excess of the 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 exchange