Company: IPST
Filing Date: 2025-08-15
Form Type: 424B3
Source: 0001641172-25-024420
Chunk: 5

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-15
Form: 424B3
Chunk 5
---
 holder’s Pre-Funded Warrants.

| 2 |

The Subscription Agreements

The Subscription Agreements contain representations and warranties of the Company and the Investors, which are typical for transactions of this type. The Subscription Agreements also obligate the Company to indemnify the Investors and various related parties for certain losses including those resulting from (i) any misrepresentation or breach of any representation or warranty made by the Company, (ii) any breach of any obligation of the Company, and (iii) certain claims by third parties. In addition, the Subscription Agreements contain customary covenants on the Company’s part that are typical for transactions of this type, as well as the following additional covenants:

| (i) | the                                                                                             
 Company agreed that, effective upon the closing of the Offering, the Company will adopt a       
 treasury reserve policy, under which the Company’s treasury reserve assets will consist         
 of (i) cash and cash equivalents and short-term investments (“Cash Assets”)                     
 that exceed working capital requirements and (ii) $IP Tokens that will serve as the primary     
 treasury reserve asset of the Company on an ongoing basis, subject to market conditions and     
 anticipated needs of the business for Cash Assets and oversight by the Digital Assets Committee 
 of the Company’s board of directors (the “Board”);                                              |

| (ii) | the                                                                                   
 Company agreed to increase the reserve under the Company’s 2024 Equity Incentive Plan 
 (the “Incentive Plan”) to 35 million shares of Common Stock and                       
 to seek stockholder approval of such increase;                                        |

| (iv) | the                                                                                               
 Company agreed that, following receipt of stockholder approval of the issuance of the Securities  
 at the Special Meeting, it will take all necessary corporate action such that (a) the authorized  
 size of the Board shall be eight members, (b) at least three and up to five individuals           
 designated by Story Foundation shall be appointed to the Board (each a “New Director”             
 and collectively, the “New Directors”), (c) the Technology and Cryptocurrency                     
 Committee of the Board shall be reconstituted as the Digital Assets Committee with an updated     
 committee charter to be adopted, which committee shall be comprised solely of the New Directors   
 and will be chaired by a New Director, (d) certain of the New Directors will be appointed         
 as members of the Audit Committee, the Nominating and Corporate Governance Committee and          
 the Compensation Committee of the Board, as designated by Story Foundation, and