Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 187

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 187
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 appointed non-employee director receives a one-time initial 
 restricted stock unit (“RSU”) award for shares of our common stock, which shares          
 vest in arrears in two equal tranches 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 stockholder       
 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,