Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 202

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 202
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otherwise provided in an award or other agreement, upon a “sale event,” if the successor or surviving corporation (or parent
thereof) so agrees, then, without the consent of any holder of an award (or other person with rights in an award), some or all outstanding
awards may be assumed, or replaced with the same type of award with similar terms and conditions, subject to adjustments described in
our 2024 Plan, by the successor or surviving corporation (or parent thereof) in the sale event. A “sale event” is generally
defined for this purpose as (i) any person becoming the beneficial owner of 50% or more of the combined voting power of our then-outstanding
securities (subject to exceptions and other limitations described in our 2024 Plan), (ii) our stockholders approving a plan of complete
liquidation or dissolution of our company, (iii) the consummation of (a) an agreement for the sale or disposition of all or
substantially all of our assets (other than to certain excluded persons), (b) a merger, consolidation or reorganization of our company
with or involving any other corporation (subject to specified exceptions), or (iv) a change in the majority of our board of directors
that is not approved by a supermajority of the existing board. More detailed descriptions and additional information on limitations relating
to each of these sale events is in our 2024 Plan.

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If, after a sale event in which the awards are assumed
or replaced, the award holder experiences a termination event as a result of a termination of service without cause, due to death or disability,
or as a result of a resignation for good reason, in each case within 24 months after a sale event, then the award holder’s
awards will be vested in full or deemed earned in full (assuming target performance, if applicable).

To the extent the awards are not assumed or replaced
in the sale event, then, (i) each option will become immediately and fully vested and, unless the administrator determines otherwise,
will be canceled on the sale event in exchange for a cash payment equal to the excess of the price paid in the sale event over the exercise
price of the option as may be required in the Plan, and all options with an exercise price lower than the price paid in the sale event
will be canceled for no consideration, (ii) restricted stock and restricted stock units (not subject to performance goals