Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 203

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 203
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) will be
vested in full and settled, along with any accompanying dividend equivalent units, and (iii) all awards subject to performance goals
with outstanding performance periods will be canceled in exchange for a cash payment equal to the amount that would have been due under
the award if performance had been satisfied at the better of target or the performance trend through the sale event.

Solely with respect to awards granted on and after
the completion of this offering, and except as otherwise expressly provided in any agreement with an award holder, if the receipt of any
payment by an award holder under the circumstances described above would result in the payment by the award holder of any excise tax provided
for in Section 280G and Section 4999 of the Code, then the amount of such payment shall be reduced to the extent required to
prevent the imposition of such excise tax.

Limit on Director Awards.The
maximum value of awards granted during a single fiscal year to any non-employee director, taken together with any cash fees paid during
the fiscal year to the non-employee director in respect of the director’s service as a member of our board of directors during such
year (including service as a member or chair of any committees of the board), shall be established by the administrator for any calendar
year, although our board of directors may, in its discretion, make exceptions to any such limits in extraordinary circumstances.

Types of Awards.Awards
under our 2024 Plan may consist of incentive stock options, non-qualified stock options, restricted stock awards, unrestricted stock awards,
restricted stock units, stock appreciation rights or any combination of those awards, or other legal instruments, securities or awards
approved by the Compensation Committee of our board of directors. Some provisions of our 2024 Plan relating to these award types are summarized
below.

Stock Options.A stock
option is an award entitling the recipient to acquire shares, at such exercise price as determined by the administrator (which may not
be lower than the fair market value of the underlying shares on the date of grant) and subject to such restrictions and conditions as
the administrator may determine at the time of grant. Conditions may be based on continuing employment (or other service relationships)
and/or achievement of pre-established performance goals and objectives. Stock options granted under our 2024 Plan may be either non-qualified
stock options or incentive stock options. Incentive stock options may be granted only to our employees or employees of our subsidiaries
and must meet certain requirements specified in our