Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 205

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 205
---
4 Plan or that the administrator may impose. A stock appreciation right may be payable in cash, shares of
common stock valued at fair market value or a combination of the two, as the administrator may determine or provide in the award agreement.
The administrator will establish each option’s and stock appreciation right’s exercise price per share and shall specify the
exercise price in the award agreement. Unless otherwise determined by the administrator, the exercise price will not be less than 100%
of the awarded fair market value or fair grant value, as applicable, of one share on the grant date of the option or stock appreciation
right. In no event shall the option price per share of any option be less than par value per share of our common stock.

Termination of Employment or Service.Except
as otherwise provided in any award agreement or an award holder’s employment offer letter, severance letter or services agreement,
or as determined by administrator at the time of the award holder’s termination of employment or service:

| ● | If the termination is for cause, the award holder will forfeit                                                                     
 all outstanding awards immediately upon termination and will not be permitted to exercise any stock options following termination. |

| ● | If the termination is due to the award holder’s death                                                                                       
 or disability (when the award holder could not have been terminated for cause), the award holder will forfeit the unvested portion of       
 any award, and any vested stock options will remain exercisable until the earlier of the original stock option expiration date or 12 months 
 from the date of termination, subject to calculating the triggering event that begins the tacking period as called for in the 2024 Plan.    |

| ● | If the termination was for any reason other than cause, death                                                                                  
 or disability (when the award holder could not have been terminated for cause), the award holder will forfeit the unvested portion of          
 any award, and any vested stock options will remain exercisable until the earlier of the original stock option expiration date or three months 
 from the date of termination, subject to certain restriction in the 2024 Plan.                                                                 |

Term of Plan and Plan Amendments.Our
2024 Plan will continue until all shares reserved for issuance under it are issued, or, if earlier, until the administrator terminates
it as described below. No incentive stock options may be granted after the ten (10) year anniversary of the date of stockholder approval
of our 2024 Plan unless the stockholders have approved an extension.

Our board of directors may, at