Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 35

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 35
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 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.

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 $22.40, 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 $1.96 (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 C Preferred Stock is increased by a multiplier
resulting in the convertibility of the shares of Series C Preferred Stock into the number of shares of Common Stock that would have been
issuable if the Alternate Conversion Price had been equal to such lower volume weighted average price.

Redemptions: Upon
bankruptcy or liquidation, Series C Preferred Stock will be redeemed at a 25% premium to the conversion amount multiplied by the highest
Alternative Conversion Price within the preceding 20 days multiplied by