Company: IPST
Filing Date: 2025-08-29
Form Type: DEF 14A
Source: 0001788230-25-000148
Chunk: 47

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-29
Form: DEF 14A
Chunk 47
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ive Plan was adopted by the Board on November 9, 2024, approved by the stockholders on November 10, 2024, and became effective at the close of our initial public offering on November 25, 2024. On May 30, 2025, the Board adopted a first amendment to the 2024 Equity Incentive Plan (as amended, the “2024 Plan”) to increase the number of shares we may issue under the 2024 Plan to 5,000,000 shares, which was approved by our stockholders and became effective on June 24, 2025. On August 18, 2025, the Board approved an amendment to the 2024 Plan to increase the maximum total number of shares of common stock we may issue under the 2024 Plan (the “Plan Amendment”) to 35,000,000 shares (an increase of 30,000,000 shares) because we need to be able to issue equity awards to service providers in order to motivate and retain such persons and to further align their interests with those of our stockholders. The Compensation Committee of the Board approved the Plan Amendment, subject to approval of the Board and the stockholders, and the Board approved the Plan Amendment, subject to approval of the stockholders. If the stockholders do not approve the Plan Amendment, the existing 2024 Plan will remain in effect and unchanged. If approved by stockholders, the Plan Amendment will be effective immediately.

Reason for the Proposal

As of August 15, 2025, 2,472,500 shares of common stock were available for grant under the 2024 Plan. In connection with the Offering, we have agreed to grant 2,500,000 Advisory RSUs and to grant a number of Advisory RSUs having a value on the date of grant equal to $250,000, each subject to any vesting provisions applicable thereto, upon stockholder approval of this proposal. Having an adequate number of shares available for future equity compensation grants is necessary to promote our long-term success and the creation of stockholder value by:

• enabling us to continue to attract and retain the services of key service providers who would be eligible to receive grants;

• aligning participants’ interests with stockholders’ interests through incentives that are based upon the performance of the common stock; and

• motivating participants, through equity incentive awards, to achieve long-term growth in our business, in addition to short-term financial performance.

Therefore, the Board approved