Company: IPST
Filing Date: 2025-08-15
Form Type: 424B3
Source: 0001641172-25-024420
Chunk: 20

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-15
Form: 424B3
Chunk 20
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 Holder the Warrant Shares pursuant to Section 3(b)(i) within the Standard Settlement    
 Period, then the Holder will have the right to rescind such exercise prior to the transmission 
 of such Warrant Shares.                                                                        |

| (c) | Cashless                                                                                     
 Exercise. Notwithstanding anything contained herein to the contrary, the Holder may exercise 
 this Warrant, whether in whole or in part, and in lieu of making the cash payment otherwise  
 contemplated to be made to the Company upon such exercise in payment of the Exercise Price,  
 by effecting a cashless exercise of this Warrant pursuant to which the Holder shall receive  
 upon such cashless exercise the “Net Number” of Warrant Shares determined according          
 to the following formula (a “Cashless Exercise”):                                            |

Net Number = (A x B) - (A x C)

B

For purposes of the foregoing formula:

| A | =                                                                                           
 the total number of shares of Common Stock with respect to which this Warrant is then being 
 exercised.                                                                                  |

| B | =                                                                                          
 the Weighted Average Price of the shares of Common Stock on the date immediately preceding 
 the date of the Notice of Exercise.                                                        |

| C | =                                                                                                 
 the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise. |

If Warrant Shares are issued in such a Cashless Exercise, the Company acknowledges and agrees that in accordance with Section 3(a)(9)of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrant being exercised, and the holding period of the Warrant being exercised may be tacked on to the holding period of the Warrant Shares. The Company agrees not to take any position contrary to this Section 3(c).

In the event that a registration statement registering the issuance of the Warrant Shares is, for any reason, not effective at the time of exercise of this Warrant, then the Warrant may only be exercised through a cashless exercise, as set forth in this Section 3. Except as set forth in Section 3(b)(iii)(Buy-In remedy) and Section 3(b)(iv)(payment of cash in lieu of fractional shares), in no event will the exercise of this Warrant be settled in cash.

| -5- |

| (d) | Holder’s                                                                                         
 Exercise Limitations. The Company shall not effect any exercise of this Warrant, and             
 the Holder shall not have the right to exercise any portion of this