Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 211

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 211
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 on the first and second anniversaries of service on our Board.
The amount of awards is set by the Compensation Committee.

● One-Time Initial Stock Option Grant (optional). In addition to the one-time initial RSU Award, each non-employee director shall also be eligible to receive a one-time
initial grant of stock options, each in an amount designated by the Compensation Committee of our board of directors, from any equity
compensation plan approved by the Compensation Committee of our Board.

● Annual Grant Eligibility. The
Compensation Committee, pursuant to the 2024 Plan, shall develop the award type, eligibility amount, and vesting schedule of awards to
be granted to non-employee directors on an annual basis for continued service, concurrent with the Annual Shareholder Meeting.

● Retaining Awards. Directors who
receive such awards for their service on the board will be entitled to keep the vested grants for the year pro rata up to the date of
a “qualified event”. A “qualified event” includes (i) death, (ii) incapacitation from which the director
is not likely to return, (iii) removal other than for cause, (iv) resignation, (v) voluntarily electing not to stand for re-election,
or (vi) not being nominated for election to the board for an additional term. In the case of (v) and (vi), the last date shall be
the date on which the new director’s term begins.

Reimbursement. In addition to such compensation,
we will reimburse each non-employee director for all preapproved expenses within 30 days of receiving satisfactory written
documentation setting out the expense actually incurred by such director. These include reasonable transportation and lodging costs incurred
for attendance at any meeting of our Board of Directors.

Additionally, on April 1, 2023, we entered into
a consulting agreement with AV Train Consulting, LLC (“AV Train”), an entity wholly owned by Andrew Varga, a director, pursuant
to which Mr. Varga agreed to act as our Acting Chief Revenue Officer and provide other related sales, marketing and strategic planning
services. In exchange for the provision of such services, we paid AV Train an amount equal to $12,500 per month. The consulting agreement
was entered into on a month-to-month basis.

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PRINCIPAL STOCKHOLDERS</div>

The following table sets forth certain information
regarding the beneficial ownership of our common stock as of January 22,