Company: IPST
Filing Date: 2025-08-15
Form Type: 424B3
Source: 0001641172-25-024420
Chunk: 174

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-15
Form: 424B3
Chunk 174
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 or liabilities referred to in the first sentence of this Section 2.5shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any action or claim that is the subject of this Section 2.5(d). The parties agree that it would not be just and equitable if contributions were determined by pro rataallocation (even if a Holder was treated as one Person for such purpose) or any other method of allocation that does not take account of the equitable considerations referred to above. Notwithstanding anything else in this Agreement, in no event will a Holder be required to pay via indemnification or contribution an amount in excess of its net proceeds of sales of Registrable Securities under the Registration Statement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

2.6 Liquidated Damages for Registration Failures.

(a) Payment of Liquidated Damages. If (i) the Company fails to file any Registration Statement required to be filed pursuant to this Agreement on or before the applicable filing deadline, (ii) any Registration Statement required to be filed pursuant to this Agreement is not declared effective by the SEC or otherwise does not become effective under the Securities Act on or before the applicable effectiveness deadline, (iii) after a Registration Statement has been declared effective by the SEC, such Registration Statement ceases to be effective or available for use by a Holder at any time prior to the expiration of the registration period (other than during a permitted suspension period as set forth in this Agreement), or (iv) in the event a Registration Statement is not effective or available to sell all Registrable Securities and the Company fails to file with the SEC any required reports under Section 13 or 15(d) of the Exchange Act such that it is not in compliance with Rule 144(c)(1), as a result of which the Holders who are not affiliates are unable to sell Registrable Securities without restriction under Rule 144 but would have otherwise been eligible and able to sell Registrable Securities without restriction under Rule 144, then as partial liquidated damages and not as a penalty, the Company shall pay to each Holder an amount in cash equal to 2.0% of the aggregate Subscription Amount paid by such Holder pursuant to the Purchase Agreement for each thirty (30) day period (or pro rata for any portion thereof) during which such event continues, beginning on