Document:

EXHIBIT
10.1

 

PCM,
INC.

 

FORM
OF INDEMNIFICATION AGREEMENT

 

This
Indemnification Agreement (“Agreement”) is made as of ________________ by and between PCM, Inc., a Delaware
corporation (the “Company”), and ____________ (“Indemnitee”).

 

RECITALS

 

WHEREAS,
the Company desires to attract and retain the services of highly qualified individuals, such as Indemnitee, to serve the Company;

 

WHEREAS,
in order to induce Indemnitee to continue to provide services to the Company, the Company wishes to provide for the indemnification
of, and advancement of expenses to, Indemnitee to the maximum extent permitted by law;

 

WHEREAS,
the Amended and Restated Bylaws of the Company (the “Bylaws”) require indemnification of the officers and directors
of the Company, and Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of
Delaware (the “DGCL”);

 

WHEREAS,
the Bylaws and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby
contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons
with respect to indemnification;

 

WHEREAS,
the Company and Indemnitee recognize the continued difficulty in obtaining liability insurance for the Company’s directors,
officers, employees, agents and fiduciaries, the significant and continual increases in the cost of such insurance and the general
trend of insurance companies to reduce the scope of coverage of such insurance;

 

WHEREAS,
the Company and Indemnitee further recognize the substantial increase in corporate litigation in general, subjecting directors,
officers, employees, agents and fiduciaries to expensive litigation risks at the same time as the availability and scope of coverage
of liability insurance provide increasing challenges for the Company;

 

WHEREAS,
Indemnitee does not regard the protection currently provided by applicable law, the Company’s governing documents and available
insurance as adequate under the present circumstances, and Indemnitee may not be willing to continue to serve the Company without
additional protection;

 

WHEREAS,
the Board of Directors of the Company (the “Board”) has determined that the increased difficulty in attracting
and retaining highly qualified persons such as Indemnitee is detrimental to the best interests of the Company’s stockholders
and that the Company should act to assure Indemnitee that there will be increased certainty of such protection in the future;

 

    	 	 	 

    	 

    

 

WHEREAS,
it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses
on behalf of, such persons to the fullest extent permitted by applicable law, regardless of any amendment or revocation of the
Company’s Amended and Restated Certificate of Incorporation (the “Charter”) or Bylaws, so that they will
serve or continue to serve the Company free from undue concern that they will not be so indemnified; and

 

WHEREAS,
this Agreement is a supplement to and in furtherance of the indemnification provided in the Bylaws and any resolutions adopted
pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

 

NOW,
THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant
and agree as follows:

 

Section
1. Services to the Company. Indemnitee
agrees to serve as a [director] [officer] [director and officer] of the Company. Indemnitee may at any time and for any reason
resign from such position (subject to any other contractual obligation or any obligation imposed by law), in which event the Company
shall have no obligation under this Agreement to continue Indemnitee in such position. This Agreement shall not be deemed an employment
contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee. The foregoing notwithstanding, this
Agreement shall continue in force after Indemnitee has ceased to serve as a [director] [officer] [director and officer] of the
Company.

 

Section
2. Definitions.

 

As
used in this Agreement:

 

(a)
A “Change in Control” shall
be deemed to have occurred if: (i) any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder (the “Exchange Act”) (other than
(a) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or (b) a corporation owned,
directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of
the Company) after the date of this Agreement becomes the “beneficial owner,” as defined in Rule 13d-3 of the Exchange
Act, directly or indirectly, of securities of the Company representing 20% or more of the total combined voting power represented
by the Company’s then outstanding Voting Securities; (ii) during any period of two consecutive years, individuals who at
the beginning of such period constitute the Board and any new director whose election or appointment by the Board or nomination
for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then in office
who either were directors at the beginning of the period or whose election, appointment or nomination for election was previously
so approved, cease for any reason to constitute a majority thereof; or (iii) the stockholders of the Company approve a merger
or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the Voting
Securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) at least 80% of the total voting power represented by the Voting
Securities of the Company or voting securities of such surviving entity outstanding immediately after such merger or consolidation,
or the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition
by the Company, in one transaction or a series of transactions, of all or substantially all of the Company’s assets.

 

    	 	-2-	 

    	 

    

 

(b)
“Corporate Status” describes
the status of a person as a current or former director, officer, employee, agent or trustee of the Company or of any other Enterprise
which such person is or was serving on behalf of the Company.

 

(c)
“Eligible Parties” means Indemnitee
and any other person who, as of immediately prior to the Potential Change in Control, is party to an indemnification agreement
with the Company in substantially the form of this Agreement (which agreement includes, for the avoidance of doubt, a provision
substantially similar to Section 17(c) hereof).

 

(d)
“Enforcement Expenses” shall
include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel
expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements
or expenses of the types customarily incurred in connection with an action to enforce indemnification or advancement rights, or
any other rights set forth in this Agreement, or an appeal from such action, including, without limitation, the premium, security
for and other costs relating to any cost bond, supersedeas bond or other appeal bond or its equivalent, and any federal, state,
local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments of Enforcement Expenses
under this Agreement.

 

(e)
“Enterprise” shall mean any
corporation (other than the Company), partnership, joint venture, trust, employee benefit plan or other legal entity of which
Indemnitee is or was serving on behalf of the Company as a director, officer, employee, agent or trustee.

 

(f)
“Expenses” shall include all
reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating
costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements or expenses of
the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being
or preparing to be a witness in, or otherwise participating in, a Proceeding or an appeal resulting from a Proceeding, including,
without limitation, the premium, security for and other costs relating to any cost bond, supersedeas bond or other appeal bond
or its equivalent, and any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt
of any payments under this Agreement. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount
of judgments or fines against Indemnitee.

 

(g)
“Independent Counsel” means
a law firm, or a partner (or, if applicable, member) of such a law firm, that is experienced in matters of Delaware corporation
law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company, any Enterprise or Indemnitee
in any matter material to any such party (other than with respect to matters concerning Indemnitee under this Agreement, or of
other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim
for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any
person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing
either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. The Company agrees
to pay the reasonable fees and expenses of the Independent Counsel and to fully indemnify such counsel against any and all expenses,
claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

 

    	 	-3-	 

    	 

    

 

(h)
“Potential Change in Control”
shall be deemed to occur if: (i) the Company enters into an agreement or arrangement, the consummation of which would result in
the occurrence of a Change in Control; (ii) any person (including the Company) publicly announces an intention to take or to consider
taking actions which, if consummated, would constitute a Change in Control; or (iii) the Board adopts a resolution to the effect
that, for purposes of this Agreement, a Potential Change in Control has occurred.

 

(i)
The term “Proceeding” shall
include any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation,
inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company
or otherwise and whether of a civil, criminal, administrative or investigative nature, in which Indemnitee was, is or will be
involved as a party or otherwise by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the
Company or is or was serving on behalf of the Company as a director, officer, employee, agent or trustee of any Enterprise or
by reason of any action taken by him or her or of any action taken on his or her part while acting as director, officer, employee
or agent of the Company or while serving on behalf of the Company as a director, officer, employee, agent or trustee of any Enterprise,
in each case whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification,
reimbursement or advancement of expenses can be provided under this Agreement; provided, however, that the term
“Proceeding” shall not include any action, suit or arbitration, or part thereof, initiated by Indemnitee to enforce
Indemnitee’s rights under this Agreement as provided for in Section 13(e) of this Agreement.

 

(j)
“Requisite Request” means
a written request to create a Trust signed by (a) at least two Eligible Parties and (b) a majority of the Eligible Parties party
to the Proceeding for which the creation of a Trust is requested.

 

(k)
“Voting Securities” shall
mean any securities of the Company which vote generally in the election of directors.

 

Section
3. Indemnity in Third-Party Proceedings.
The Company shall indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, was or is threatened
to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure
a judgment in its favor. Pursuant to this Section 3, Indemnitee shall be indemnified against all Expenses, judgments, fines and
amounts paid in settlement (including any interest, assessments, or other charges imposed thereon) actually and reasonably incurred
by Indemnitee or on his or her behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee
acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company
and, in the case of a criminal proceeding, had no reasonable cause to believe that his or her conduct was unlawful. Notwithstanding
anything to the contrary in this Agreement, the Company shall not be liable to indemnify the Indemnitee under this Agreement (a)
for any amounts paid in settlement of any action or claim effected without the Company’s written consent, which consent
shall not be unreasonably withheld or (b) for any judicial award if the Company was not given a reasonable and timely opportunity,
at its expense, to participate in the defense of such action.

 

    	 	-4-	 

    	 

    

 

Section
4. Indemnity in Proceedings by or in the Right
of the Company. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is,
was or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a
judgment in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified against all Expenses actually and reasonably
incurred by him or her or on his or her behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee
acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company.
No indemnification for Expenses shall be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee
shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent that the Delaware Court
of Chancery (the “Delaware Court”) or any court in which the Proceeding was brought shall determine upon application
that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably
entitled to indemnification for such Expenses as the Delaware Court or such other court shall deem proper.

 

Section
5. Indemnification for Expenses of a Party
Who is Wholly or Partly Successful. Notwithstanding any other provisions of this Agreement and except as provided in Section
8, to the extent that Indemnitee is or was a party to or a participant in and is successful, on the merits or otherwise, in any
Proceeding or in defense of any claim, issue or matter therein, the Company shall indemnify Indemnitee against all Expenses actually
and reasonably incurred by him or her in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is
successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the
Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or her or on his or her behalf
in connection with each successfully resolved claim, issue or matter. For purposes of this Section and without limitation, the
termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be
a successful result as to such claim, issue or matter.

 

Section
6. Indemnification For Expenses of a Witness.
Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is or was, by reason of his or her Corporate
Status, a witness in any Proceeding to which Indemnitee is not a party and is not threatened to be made a party, he or she shall
be indemnified against all Expenses actually and reasonably incurred by him or her or on his or her behalf in connection therewith.

 

Section
7. Additional Indemnification.

 

(a)
Except as provided in Section 8, notwithstanding
any limitation in Sections 3, 4 or 5, the Company shall indemnify Indemnitee to the fullest extent permitted by law if Indemnitee
is or was a party to or is or was threatened to be made a party to any Proceeding (including a Proceeding by or in the right of
the Company to procure a judgment in its favor) against all Expenses, judgments, fines and amounts paid in settlement (including
any interest, assessments, or other charges imposed thereon) actually and reasonably incurred by Indemnitee in connection with
the Proceeding.

 

    	 	-5-	 

    	 

    

 

(b)
For purposes of Section 7(a), the meaning of
the phrase “to the fullest extent permitted by law” shall include, but not be limited to:

 

(i)
to the fullest extent permitted by the provision
of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment
to or replacement of the DGCL or such provision thereof; and

 

(ii)
to the fullest extent authorized or permitted
by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a
corporation may indemnify its officers and directors.

 

Section
8. Exclusions. Notwithstanding any provision
in this Agreement to the contrary, the Company shall not be obligated under this Agreement:

 

(a)
to make any indemnity for amounts otherwise indemnifiable
hereunder (or for which advancement is provided hereunder) if and to the extent that Indemnitee has otherwise actually received
such amounts under any insurance policy, contract, agreement or otherwise;

 

(b)
to make any indemnity for an accounting of profits
made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section
16(b) of the Exchange Act or similar provisions of state statutory law or common law;

 

(c)
to make any indemnity or advancement that is
prohibited by applicable law; or

 

(d)
to make any indemnity or advancement for claims initiated or brought by Indemnitee (including Expenses incurred by Indemnitee
in defending any affirmative defenses or counterclaims brought or made in connection with a claim initiated by Indemnitee), except
(i) with respect to proceedings brought to establish or enforce a right (including to receive Expenses, Enforcement Expenses or
indemnification) under this Agreement or any other agreement or insurance policy or under the Charter or Bylaws now or hereafter
in effect relating to indemnification or advancement (which shall be governed by Section 13(e) of this Agreement), (ii) if the
Board has approved the initiation or bringing of such claim, or (iii) as otherwise required under Delaware law. For the avoidance
of doubt, Indemnitee shall not be deemed, for purposes of this subsection, to have initiated or brought any claim by reason of
(a) having asserted any affirmative defenses in connection with a claim not initiated by Indemnitee or (b) having made any counterclaim
(whether permissive or mandatory) in connection with any claim not initiated by Indemnitee.

 

    	 	-6-	 

    	 

    

 

Section
9. Advances of Expenses. The Company shall
advance, to the extent not prohibited by law, the Expenses incurred by Indemnitee in connection with any Proceeding, and such
advancement shall be made within twenty (20) days after the receipt by the Company of a statement or statements requesting such
advances (which shall include invoices received by Indemnitee in connection with such Expenses but, in the case of invoices in
connection with legal services, any references to legal work performed or to expenditures made that would cause Indemnitee to
waive any privilege accorded by applicable law shall not be included with the invoice) from time to time, whether prior to or
after final disposition of any Proceeding. Advances shall be unsecured and interest free. Advances shall be made without regard
to Indemnitee’s ability to repay the expenses and without regard to Indemnitee’s ultimate entitlement to indemnification
under the other provisions of this Agreement. Indemnitee shall qualify for advances upon the execution and delivery to the Company
of this Agreement which shall constitute an undertaking providing that Indemnitee undertakes to the fullest extent required by
law to repay the advance if and to the extent that it is ultimately determined by a court of competent jurisdiction in a final
judgment, not subject to appeal, that Indemnitee is not entitled to be indemnified by the Company. The right to advances under
this paragraph shall in all events continue until final disposition of any Proceeding, including any appeal therein. Nothing in
this Section 9 shall limit Indemnitee’s right to advancement pursuant to Section 13(e) of this Agreement.

 

Section
10. Procedure for Notification and Defense
of Claim.

 

(a)
To obtain indemnification under this Agreement,
Indemnitee shall submit to the Company a written request therefor and, if a Change in Control has occurred and Indemnitee so chooses
pursuant to Section 11 of this Agreement, such written request shall also include a request for Indemnitee to have the right to
indemnification determined by Independent Counsel.

 

(b)
The Company will be entitled to participate in
the Proceeding at its own expense.

 

Section
11. Procedure Upon Application for Indemnification.

 

(a)
Upon written request by Indemnitee for indemnification
pursuant to Section 10(a), a determination, if such determination is required by applicable law, with respect to Indemnitee’s
entitlement thereto shall be made in the specific case: (i) by Independent Counsel in a written opinion to the Board if Indemnitee
so requests in such written request for indemnification pursuant to Section 10(a) and a Change in Control has occurred or (ii)
by the Company in accordance with applicable law if Indemnitee does not so request such determination be made by Independent Counsel.
In the case that such determination is made by Independent Counsel, a copy of Independent Counsel’s written opinion shall
be delivered to Indemnitee and, if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall
be made within ten (10) days after such determination. Indemnitee shall cooperate with the Independent Counsel or the Company,
as applicable, making such determination with respect to Indemnitee’s entitlement to indemnification, including providing
to such counsel or the Company, upon reasonable advance request, any documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any
costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the Independent
Counsel or the Company shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to
indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

 

    	 	-7-	 

    	 

    

 

(b)
In the event that Indemnitee exercises his or
her right to have his or her entitlement to indemnification determined by Independent Counsel pursuant to Sections 10(a) and 11(a)(i),
the Independent Counsel shall be selected by Indemnitee. The Company may, within ten (10) days after written notice of such selection,
deliver to Indemnitee a written objection to such selection; provided, however, that such objection may be asserted
only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel”
as defined in Section 2 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion.
Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection is so
made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection
is withdrawn or a court has determined that such objection is without merit. If, within twenty (20) days after the later of (i)
submission by Indemnitee of a written request for indemnification and Independent Counsel pursuant to Sections 10(a) and 11(a)(i)
hereof, respectively, and (ii) the final disposition of the Proceeding, including any appeal therein, no Independent Counsel shall
have been selected without objection, Indemnitee may petition a court of competent jurisdiction for resolution of any objection
which shall have been made by the Company to the selection of Independent Counsel and/or for the appointment as Independent Counsel
of a person selected by the court or by such other person as the court shall designate. The person with respect to whom all objections
are so resolved or the person so appointed shall act as Independent Counsel under Section 11(a) hereof. Upon the due commencement
of any judicial proceeding or arbitration pursuant to Section 13(a) of this Agreement, Independent Counsel shall be discharged
and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then
prevailing).

 

Section
12. Presumptions and Effect of Certain Proceedings.

 

(a)
In making a determination with respect to entitlement
to indemnification hereunder, it shall be presumed that Indemnitee is entitled to indemnification under this Agreement if Indemnitee
has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and the Company shall have the
burden of proof to overcome that presumption in connection with the making of any determination contrary to that presumption.
Neither (i) the failure of the Company or of Independent Counsel to have made a determination prior to the commencement of any
action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable
standard of conduct, nor (ii) an actual determination by the Company or by Independent Counsel that Indemnitee has not met such
applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable
standard of conduct.

 

(b)
The termination of any Proceeding or of any claim,
issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of guilty, nolo contendere or its
equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee
to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he or she reasonably
believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee
had reasonable cause to believe that his or her conduct was unlawful.

 

    	 	-8-	 

    	 

    

 

(c)
The knowledge and/or actions, or failure to act,
of any director, officer, agent, trustee or employee of the Company or any Enterprise shall not be imputed to Indemnitee for purposes
of determining the right to indemnification under this Agreement.

 

Section
13. Remedies of Indemnitee.

 

(a)
Subject to Section 13(f), in the event that (i)
a determination is made pursuant to Section 11 of this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 9 of this Agreement, (iii) no determination of
entitlement to indemnification shall have been made pursuant to Section 11(a) of this Agreement within sixty (60) days after receipt
by the Company of the request for indemnification that does not include a request for Independent Counsel, (iv) payment of indemnification
is not made pursuant to Section 5 or 6 or the last sentence of Section 11(a) of this Agreement within ten (10) days after receipt
by the Company of a written request therefor or (v) payment of indemnification pursuant to Section 3, 4 or 7 of this Agreement
is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee
shall be entitled to an adjudication by a court of his or her entitlement to such indemnification or advancement. Alternatively,
Indemnitee, at his or her option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial
Arbitration Rules of the American Arbitration Association. Indemnitee shall commence such proceeding seeking an adjudication or
an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding
pursuant to this Section 13(a); provided, however, that the foregoing time limitation shall not apply in respect
of a proceeding brought by Indemnitee to enforce his or her rights under Section 5 of this Agreement. The Company shall not oppose
Indemnitee’s right to seek any such adjudication or award in arbitration.

 

(b)
In the event that a determination shall have
been made pursuant to Section 11(a) of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding
or arbitration commenced pursuant to this Section 13 shall be conducted in all respects as a de novo trial, or arbitration, on
the merits and Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial proceeding or arbitration
commenced pursuant to this Section 13, the Company shall have the burden of proving Indemnitee is not entitled to indemnification
or advancement, as the case may be.

 

(c)
If a determination shall have been made pursuant
to Section 11(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination
in any judicial proceeding or arbitration commenced pursuant to this Section 13, absent a misstatement by Indemnitee of a material
fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection
with the request for indemnification.

 

(d)
The Company shall be precluded from asserting
in any judicial proceeding or arbitration commenced pursuant to this Section 13 or pursuant to Section 17(c) that the procedures
and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any
such arbitrator that the Company is bound by all the provisions of this Agreement.

 

    	 	-9-	 

    	 

    

 

(e)
The Company shall indemnify Indemnitee against
any and all Enforcement Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of
a written request therefor) advance, to the extent not prohibited by law, such Enforcement Expenses to Indemnitee, which are incurred
by Indemnitee in connection with any action brought by Indemnitee for indemnification or advancement from the Company under this
Agreement, the Bylaws or under any directors’ and officers’ liability insurance policies maintained by the Company,
in the case of advancement of Enforcement Expenses regardless of whether Indemnitee will ultimately be successful in such action.
In addition, and notwithstanding anything in this Agreement to the contrary, if requested by a majority of the Trust Beneficiaries,
the Company shall indemnify the Trust Beneficiaries against any and all Enforcement Expenses and, if requested by a majority of
the Trust Beneficiaries, shall (within ten (10) days after receipt by the Company of a written request therefor) advance, to the
extent not prohibited by law, such Enforcement Expenses to the Trust Beneficiaries, which are incurred by the Trust Beneficiaries
in connection with any action brought by the Trust Beneficiaries to enforce the provisions of Section 17(c) of this Agreement,
in the case of advancement of Enforcement Expenses regardless of whether the Trust Beneficiaries will ultimately be successful
in such action.

 

(f)
Notwithstanding anything in this Agreement to
the contrary, no determination as to entitlement to indemnification under this Agreement shall be required to be made prior to
the final disposition of the Proceeding, including any appeal therein.

 

Section
14. Non-exclusivity; Survival of Rights; Insurance;
Subrogation; Period of Limitations.

 

(a)
The rights of indemnification and to receive
advancement as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time
be entitled under applicable law, the Charter, the Bylaws, any agreement, a vote of stockholders or a resolution of directors,
or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right
of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his or her Corporate Status
prior to such amendment, alteration or repeal. To the extent that a change in Delaware law, whether by statute or judicial decision,
permits greater indemnification or advancement than would be afforded currently under the Charter, Bylaws and this Agreement,
it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such
change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and
remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other right or remedy.

 

    	 	-10-	 

    	 

    

 

(b)
For the duration of Indemnitee’s service
as a [director] [officer] [director and officer] of the Company, and until the termination of this Agreement in accordance with
its terms, the Company shall use commercially reasonable efforts (taking into account the scope and amount of coverage available
relative to the cost thereof) to cause to be maintained in effect a policy or policies of directors’ and officers’
liability insurance providing coverage for directors and/or officers of the Company that is at least substantially comparable
in scope and amount to that provided by the Company’s policies of directors’ and officers’ liability insurance
in effect as of the date of this Agreement. In the event of a Change in Control occurring prior to the termination of this Agreement
in accordance with its terms, the Company shall maintain (or cause to be maintained) for the benefit of Indemnitee, the same policy
or policies of liability insurance for directors, officers, employees, agents or fiduciaries of the Company or of any other Enterprise
that existed for the benefit of Indemnitee prior to the Change in Control (or a policy or policies no less favorable to Indemnitee)
for a period of six years thereafter. The minimum AM Best rating for the insurance carrier of such insurance shall not be less
than A-VI. If, at the time of the receipt of a notice of a claim pursuant to the terms of this Agreement, the Company has directors’
and officers’ liability insurance in effect, the Company shall give prompt notice of the commencement of such Proceeding
to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such
Proceeding in accordance with the terms of such policies. To the extent that the Company maintains an insurance policy or policies
providing liability insurance for directors, officers, employees, agents or trustees of the Company or of any other Enterprise,
Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage
available for any such director, officer, employee, agent or trustee under such policy or policies.

 

(c)
In the event of any payment under this Agreement,
the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute
all papers reasonably required and take all action reasonably necessary to secure such rights, including execution of such documents
as are reasonably necessary to enable the Company to bring suit to enforce such rights.

 

(d)
The Company’s obligation to provide indemnification
or advancement hereunder to Indemnitee who is or was serving on behalf of the Company as a director, officer, employee, agent
or trustee of any other Enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement
from such other Enterprise.

 

(e)
To the fullest extent permitted by law, no legal
action shall be brought and no cause of action shall be asserted by or on behalf of the Company or any affiliate of the Company
against the Indemnitee or the Indemnitee’s spouse, heirs, executors or personal or legal representatives after the expiration
of two years from the date of accrual of such cause of action, or such longer period as may be required by state law under the
circumstances, and any claim or cause of action of the Company or its affiliates shall be extinguished and deemed released unless
asserted by the timely filing of a legal action within such period; provided, however, that if any shorter period of limitations
is otherwise applicable to any such cause of action, such shorter period shall govern.

 

    	 	-11-	 

    	 

    

 

Section
15. Duration of Agreement. This Agreement
shall continue until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve
as a [director] [officer] [director and officer] of the Company or (b) one (1) year after the final termination of any Proceeding,
including any appeal, then pending in respect of which Indemnitee is granted rights of indemnification or advancement hereunder
and of any proceeding, including any appeal, commenced by Indemnitee pursuant to Section 13 or Section 17(c) of this Agreement
relating thereto. This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit
of Indemnitee and his or her heirs, executors and administrators. The Company shall require and cause any successor, and any direct
or indirect parent of any successor, whether direct or indirect by purchase, merger, consolidation or otherwise, to all, substantially
all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory
to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company
would be required to perform if no such succession had taken place.

 

Section
16. Severability. If any provision or
provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity,
legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any
section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid,
illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent
permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law
and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of
this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held
to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give
effect to the intent manifested thereby.

 

Section
17. Enforcement; Trust.

 

(a)
The Company expressly confirms and agrees that
it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as
a [director] [officer] [director and officer] of the Company, and the Company acknowledges that Indemnitee is relying upon this
Agreement in serving as a [director] [officer] [director and officer] of the Company.

 

(b)
This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral,
written and implied, between the parties hereto with respect to the subject matter hereof (including, for the avoidance of doubt,
any prior indemnification agreements entered into between Indemnitee and the Company); provided, however, that this
Agreement is a supplement to and in furtherance of the Charter, the Bylaws and applicable law, and shall not be deemed a substitute
therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

 

    	 	-12-	 

    	 

    

 

(c)
The Company shall, if it receives a Requisite Request within four years of the occurrence of a Potential Change in Control, create
a trust (the “Trust”) for the benefit of the Indemnitee and the other Eligible Parties who signed the Requisite
Request (the “Trust Beneficiaries”), and from time to time upon written request of a majority of the Trust
Beneficiaries shall fund such Trust, to the extent permitted by law, in an amount sufficient to satisfy any and all Expenses reasonably
anticipated at the time of each such request to be incurred by the Trust Beneficiaries in connection with investigating, preparing
for and defending any Proceeding, and any and all judgments, fines, penalties and settlement amounts of any and all Proceedings
from time to time actually and reasonably paid by the Trust Beneficiaries or reasonably claimed, anticipated or proposed to be
paid by the Trust Beneficiaries. The amount or amounts to be deposited in the Trust pursuant to the foregoing funding obligation
shall be determined by mutual agreement of a majority of the Trust Beneficiaries and the Company or, if the Company and a majority
of the Trust Beneficiaries are unable to reach such an agreement, by Independent Counsel chosen by a majority of the Trust Beneficiaries
in the manner set forth in Section 11(b) (provided, that (i) the provisions of Section 11(b) shall be applied mutatis mutandis,
including to reflect that the Independent Counsel shall be chosen by a majority of the Trust Beneficiaries, (ii) for this purpose,
references in the definition of “Independent Counsel” and “Enterprise” to “Indemnitee” shall
be deemed references to any of the Trust Beneficiaries and (iii) a majority of the Trust Beneficiaries may petition a court of
competent jurisdiction for resolution of any objection which shall have been made by the Company to the selection of Independent
Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by such other person as the court
shall designate if, within the later of 20 days after the submission by a majority of the Trust Beneficiaries of a written request
to fund the Trust and submission of a proposed Independent Counsel, no Independent Counsel shall have been selected without objection).
In the event that Independent Counsel determines that the amount or amounts to be deposited in the Trust pursuant to the foregoing
funding obligation should be equal to or greater than the amount requested by a majority of the Trust Beneficiaries (a “Full
Funding Determination”), the Company shall promptly (and in any event within 2 business days) fund the Trust in the
amount determined by the Independent Counsel, and a majority of the Trust Beneficiaries shall be entitled to petition a court
of competent jurisdiction to enforce the determination of the Independent Counsel if the Company shall fail to so fund the Trust
(and in such proceeding the Company shall be bound by the Full Funding Determination, which shall be final and binding). If the
Independent Counsel does not make a Full Funding Determination within 20 days of being identified as Independent Counsel pursuant
to the terms of this Agreement, or if prior to such time Independent Counsel determines that the amount or amounts to be deposited
in the Trust pursuant to the foregoing funding obligation should be less than the amount requested by a majority of the Trust
Beneficiaries, a majority of the Trust Beneficiaries may petition a court of competent jurisdiction for a determination of the
amount or amounts to be deposited in the Trust pursuant to the foregoing funding obligation, such proceeding to be conducted in
all respects as a de novo trial on the merits without prejudice by reason of any determination by Independent Counsel,
and the Company shall have the burden of proving that the amount or amounts to be deposited in the Trust pursuant to the foregoing
funding obligation should be less than that requested by a majority of the Trust Beneficiaries. In lieu of commencing an action
in a court of competent jurisdiction, a majority of the Trust Beneficiaries may, at their option, seek an award in arbitration
to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association; provided
that, to the fullest extent permitted by law, the same presumptions and procedures that would be applicable in a court proceeding
will be applicable to such arbitration. The terms of the Trust shall provide that upon a Change in Control (i) the Trust shall
not be revoked or the principal thereof invaded, without the written consent of a majority of the Trust Beneficiaries, (ii) the
trustee of the Trust (the “Trustee”) shall advance, within ten business days of a request by a majority of
the Trust Beneficiaries, any and all Expenses incurred by the Trust Beneficiaries in connection with investigating, preparing
for and defending any Proceeding, to the extent permitted by law, (and the Indemnitee hereby agrees to reimburse the Trust under
the circumstances under which the Indemnitee would be required to reimburse the Company under this Agreement), (iii) the Trust
shall continue to be funded by the Company in accordance with the funding obligation set forth above, (iv) the Trustee shall,
following the request of a majority of the Trust Beneficiaries, promptly pay to the Trust Beneficiaries all amounts for which
the Trust Beneficiaries shall be entitled to indemnification pursuant to this Agreement or otherwise, and (v) all unexpended funds
in the Trust shall revert to the Company upon the earlier of a written request of a majority of the Trust Beneficiaries and a
determination by a court of competent jurisdiction in a final judgment, not subject to appeal, that the Trust Beneficiaries have
been fully indemnified under the terms of this Agreement. The Trustee shall be a bank or trust company or other individual or
entity chosen by a majority of the Trust Beneficiaries and acceptable to and approved of by the Company. Nothing in this Section
17(c) shall relieve the Company of any of its obligations under this Agreement. All income earned on the assets held in the Trust
shall be reported as income by the Company for federal, state, local and foreign tax purposes.

 

    	 	-13-	 

    	 

    

 

Section
18. Modification and Waiver. No supplement,
modification or amendment, or waiver of any provision, of this Agreement shall be binding unless executed in writing by the parties
thereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions
of this Agreement nor shall any waiver constitute a continuing waiver.

 

Section
19. Notice by Indemnitee. Indemnitee agrees
promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information
or other document relating to any Proceeding or matter which may be subject to indemnification or advancement as provided hereunder.
The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee
under this Agreement or otherwise.

 

Section
20. Notices. All notices, requests, demands
and other communications under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered
by hand and receipted for by the party to whom said notice or other communication shall have been directed, (b) mailed by certified
or registered mail with postage prepaid, on the third business day after the date on which it is so mailed, (c) mailed by reputable
overnight courier and receipted for by the party to whom said notice or other communication shall have been directed or (d) sent
by facsimile transmission, with receipt of oral confirmation that such transmission has been received:

 

(a)
If to Indemnitee, at such address as Indemnitee
shall provide to the Company.

 

(b)
If to the Company to:

 

1940
E. Mariposa Avenue

El
Segundo, California 90245

[FAX:
]

 

    	 	-14-	 

    	 

    

 

or
to any other address as may have been furnished to Indemnitee by the Company.

 

Section
21. Contribution. To the fullest extent
permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason
whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for
judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement (including any interest, assessments, or other
charges imposed thereon) and/or for Expenses, in connection with any Proceeding in such proportion as is deemed fair and reasonable
in light of all of the circumstances in order to reflect (i) the relative benefits received by the Company and Indemnitee in connection
with the event(s) and/or transaction(s) giving rise to such Proceeding; and/or (ii) the relative fault of the Company (and its
directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transactions.

 

Section
22. Applicable Law and Consent to Jurisdiction.
This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with,
the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect to any arbitration commenced
by Indemnitee pursuant to Section 13(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (i)
agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware
Court, and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent
to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection
with this Agreement, (iii) consent to service of process at the address set forth in, or provided in accordance with, Section
20 of this Agreement with the same legal force and validity as if served upon such party personally within the State of Delaware,
(iv) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court and (v) waive, and agree
not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper
or inconvenient forum.

 

Section
23. Identical Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which
together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability
is sought needs to be produced to evidence the existence of this Agreement.

 

Section
24. Miscellaneous. The headings of the
paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or
to affect the construction thereof.

 

    	 	-15-	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written.

 

	 	PCM,
    INC.
	 	 	 
	 	By:	 
	 	 	[Name]
    
	 	 	[Office]
	 	 	 
	 	 	 
	 	 	[Indemnitee]
	 	 	[Name]

 

    	 	-16-gfe_Current_Folio_Ex_101

		
			SUBSCRIPTION AGREEMENT
		

		
			FOR
		

		
			HARVESTONE GROUP, LLC
		

		
			 
		

		
			This is the offer and agreement (“Subscription Agreement”) of the undersigned to purchase 20 Preferred Units of membership interest (“Preferred Units”) to be issued by Harvestone Group, LLC, a Delaware limited liability company (“Company”), for a purchase price of $100,000 per Unit, for a total purchase price of $2,000,000 (“Subscription Price”), subject to the terms, conditions, acknowledgments, representations and warranties stated herein.  Simultaneously with the execution and delivery hereof, I am transmitting a wire transfer pursuant to the wire instructions herein or a check payable to the order of “Harvestone Group, LLC” in the amount of $2,000,000, representing the Subscription Price for the Preferred Units I am purchasing. 
		

		
			 
		

		
			In order to induce the Company to accept this Subscription Agreement and as further consideration for such acceptance, I hereby make the following acknowledgments, representations and warranties with the full knowledge that the Company will expressly rely thereon in making a decision to accept or reject this Subscription Agreement:
		

		
			 
		

		
			1.I hereby adopt, confirm and agree to all of the covenants, representations and warranties contained in this Subscription Agreement.
		

		
			 
		

		
			2.My primary state of residence:  MN
		

		
			 
		

		
			3.My date of birth is: n/a
		

		
			 
		

		
			4.I hereby represent and warrant that, as of the date hereof (check each box as appropriate):
		

		
			 
		

		
			☐(i)I am an individual who had an income in excess of $200,000 in each of the two most recent years (or joint income with my spouse in excess of $300,000 in each of those years) and have a reasonable expectation of reaching the same income level in the current year;
		

		
			 
		

		
			☐(ii)I, together with my spouse, have a net worth, exclusive of the fair market value of my primary residence, but inclusive of home furnishings and personal automobiles, that exceeds $1,000,000;
		

		
			 
		

		
			☐(iii)the entity subscribing for Preferred Units is an Individual Retirement Account (“IRA”) or revocable trust and the individual who established the IRA or each grantor of the trust is an accredited investor on the basis of (i) or (ii) above;
		

		
			 
		

		
			
		

		
			

		 

		

			1

		

 

		

		
			☐(iv)the entity subscribing for Preferred Units is a self-directed pension plan and the participant who directed that assets of his or her account be invested in the Company is an accredited investor on the basis of (i) or (ii) above and such participant is the only participant whose account is being invested in the Company;
		

		
			 
		

		
			☐(v)the entity subscribing for Preferred Units is a pension plan which is not a self-directed plan and which has total assets in excess of $5,000,000;
		

		
			 
		

		
			☐(vi)the entity subscribing for Preferred Units is an irrevocable trust which consists of a single trust (a) with total assets in excess of $5,000,000, (b) which was not formed for the specific purpose of investing in the Company and (c) whose purchase is directed by a person who has such knowledge and experience in financial and business matters that he or she is capable or evaluating the merits and risks of the prospective investment in the Company;
		

		
			 
		

		
			☒(vii)the entity subscribing for Preferred Units is a corporation, a partnership or a Massachusetts or similar business trust, that was not formed for the specific purpose of acquiring Units in the Company, with total assets in excess of $5,000,000;
		

		
			 
		

		
			☐(viii)the entity subscribing for Preferred Units is an entity in which all of the equity owners are accredited investors; or
		

		
			☐(ix)the entity subscribing for Preferred Units is none of the above apply (further information may be required to determine accredited investor status).
		

		
			 
		

		
			5.Under penalties of perjury, I certify (a) that the number shown on this Subscription Agreement is my correct taxpayer identification number and (b) that I am not subject to backup withholding, either because I have not been notified that I am subject to backup withholding as a result of a failure to report all interest or dividends or the Internal Revenue Service has notified me that I am no longer subject to backup withholding. (Please strike out the language certifying that you are not subject to backup withholding due to notified payee under-reporting if you have been notified that you are subject to backup withholding due to notified payee under-reporting, and you have not received a notice from the Internal Revenue Service advising you that backup withholding has terminated.)
		

		
			 
		

		
			6.I further represent and warrant that I have the capacity to evaluate the merits and risks of the prospective investment in Preferred Units and that such investment is not disproportionate to my income or available liquid funds and that I further have the capacity to protect my interests in connection with the purchase of the Preferred Units. 
		

		
			 
		

		
			
		

		
			

		 

		

			2

		

 

		

		
			7.I (we) wish to own my (our) Preferred Units as follows (check one):
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						(a)

					
					
						 

					
					
						 

					
					
						Separate or individual property. (In community property states, if the purchaser is married, his (her) spouse must submit written consent if community funds will be used to purchase the Preferred Units.)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						(b)

					
					
						 

					
					
						 

					
					
						Husband and Wife as community property. (Community property states only. Husband and Wife should both sign all required documents unless advised by their attorney that one signature is sufficient.)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						(c)

					
					
						 

					
					
						 

					
					
						Joint Tenants with right of survivorship. (Both parties must sign all required documents unless advised by their attorneys that one signature is sufficient.)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						(d)

					
					
						 

					
					
						 

					
					
						Tenants in Common. (Both parties must sign all required documents.)

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						(e)

					
					
						 

					
					
						 

					
					
						Trust. (Attach copy of trust instrument and include name of trust, name of trustee and date trust was formed.)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						(f)

					
					
						X

					
					
						 

					
					
						Partnership or Limited Liability Company. (Attach copy of partnership or operating agreement and include evidence of authority for person who executes required documents.)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						(g)

					
					
						 

					
					
						 

					
					
						Other (indicate):

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Subscriber’s Signature:

					
					
						 

					
					
						/s/ Steve A. Christensen

					
					
						 

					
					
						Date:

					
					
						 

					
					
						6-29

					
					
						, 2018

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Subscriber’s Signature

					
					
						 

					
					
						 

					
					
						 

					
					
						Date:

					
					
						 

					
					
						 

					
					
						, 2018

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			3

		

 

		

		
			REPRESENTATIONS AND WARRANTIES
		

		
			 
		

			
	
			
				 1.
			I have had and continue to have the opportunity to personally obtain from the Company any information, to the extent possessed or obtainable without unreasonable effort and expense, necessary to evaluate the merits and risks of the proposed investment in the Company and the Preferred Units, and I have concluded, based on the information presented to me, my own understanding of investments of this nature and of this investment in particular, and the advice of such consultants as I have deemed appropriate, that I wish to subscribe for the Preferred Units indicated on the first page of this Subscription Agreement.

		
			 
		

			
	
			
				 2.
			My overall commitment to investments that are not readily marketable is not disproportionate to my individual net worth, and my investment in the Preferred Units will not cause such overall commitment to become excessive. I have adequate means of providing for my financial requirements, both current and anticipated, and have no need for liquidity in this investment. I can bear and am willing to accept the economic risk of losing my entire investment in the Preferred Units.

		
			 
		

			
	
			
				 3.
			I acknowledge that the sale of the Preferred Units has not been accompanied by any disclosure or information statement, the publication of any advertisement, any general solicitation or as the direct result of an investment seminar sponsored by the Company or any of its affiliates.

		
			 
		

			
	
			
				 4.
			All information that I have provided to the Company herein concerning my suitability to invest in the Preferred Units is complete, accurate and correct as of the date of my signature on the last page of this Subscription Agreement. I hereby agree to notify the Company immediately of any material change in any such information occurring prior to the acceptance of this Subscription Agreement, including any information about changes concerning my net worth and financial position.

		
			 
		

			
	
			
				 5.
			I have had the opportunity to ask questions of, and receive answers from, the Company and its managers, officers, and employees concerning the Company, the formation or operation of the Company or terms and conditions of the offering of the Preferred Units. I have been provided with all materials and information requested by either me or others representing me, including any information requested to verify any information furnished to me.

		
			 
		

			
	
			
				 6.
			I am purchasing the Preferred Units for my own account and for investment purposes only and have no present intention, understanding or arrangement for the distribution, transfer, assignment, resale or subdivision of the Preferred Units. I understand that, due to the restrictions referred to in Paragraph 7 below, and the lack of any market existing or to exist for the Preferred Units, my investment in the Company will be highly illiquid and may have to be held indefinitely.

		
			 
		

			
	
			
				 7.
			I am not relying on any communication (written or oral) of the Company or any of its affiliates, as investment or tax advice or as a recommendation to purchase the Preferred Units. I do not consider information and explanations related to the terms and conditions of the Preferred Units provided in the LLC Agreement or otherwise by the Company or any of its affiliates to be investment or tax advice or a recommendation to purchase the Preferred Units, and I understand that neither the Company nor any of its affiliates is acting or has acted as an advisor to me in deciding to invest in the Preferred Units. I acknowledge that neither the Company nor any of its affiliates has made any representation regarding the proper characterization of the Preferred Units for purposes of determining my authority to invest in the Preferred Units. 

		
			 
		

		
			
		

		
			

		 

		

			4

		

		

			Initial Here: /s/ SAC

		

 

		

			
	
			
				 8.
			I understand that legends will be placed on certificates, if any, evidencing the Preferred Units with respect to restrictions on distribution, transfer, resale, assignment or subdivision of the Preferred Units imposed by applicable federal and state securities laws. I am fully aware that the Preferred Units subscribed for hereunder have not been registered with the Securities and Exchange Commission in reliance on an exemption specified in Regulation D, which reliance is based in part upon my representations set forth herein. I understand that the Preferred Units subscribed for herein have not been registered under applicable state securities laws and are being offered and sold pursuant to the exemptions specified in said laws, and unless they are registered, they may not be re-offered for sale or resold except in a transaction or as a security exempt under those laws. 

		
			 
		

			
	
			
				 9.
			I hereby acknowledge receipt of the Limited Liability Company Agreement of Harvestone Group, LLC, dated May 31, 2018 (the “LLC Agreement”), and have reviewed the terms of the LLC Agreement.  I hereby adopt the LLC Agreement as a member of the Company and hereby grant a power of attorney to any officer of the Company to execute the LLC Agreement on my behalf, as evidenced by my signature hereto.

		
			 
		

			
	
			
				 10.
			This Subscription Agreement shall be construed in accordance with and governed by the laws of the State of Delaware without regard to its choice of law provisions, except as to the type of registration of ownership of Preferred Units, which shall be construed in accordance with the state of principal residence of the subscribing investor.

		
			 
		

			
	
			
				 11.
			THE Preferred UNITS OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATES OR ANY OTHER JURISDICTION AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS, THE Preferred UNITS ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER SAID ACT AND SUCH LAWS PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. THE Preferred UNITS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

		
			 
		

		
			
		

		
			

		 

		

			5

		

		

			Initial Here: /s/ SAC

		

 

		

			
	
			
				 12.
			I hereby covenant and agree that any dispute, controversy or other claim arising under, out of or relating to this Agreement or any of the transactions contemplated hereby, or any amendment thereof, or the breach or interpretation hereof or thereof, shall be determined and settled in binding arbitration in the County of Davidson, State of Tennessee, in accordance with the rules and procedures of The American Arbitration Association. The prevailing party shall be entitled to an award of its reasonable costs and expenses, including but not limited to, attorneys’ fees, in addition to any other available remedies. Any award rendered therein shall be final and binding on each and all of the parties thereto and their personal representatives, and judgment may be entered thereon in any court of competent jurisdiction.

		
			 
		

			
	
			
				 13.
			I hereby agree to indemnify, defend and hold harmless the Company and all of its managers, officers, employees, affiliates and advisors, from any and all damages, losses, liabilities, costs and expenses (including reasonable attorneys’ fees and costs) that they may incur by reason of my failure to fulfill all of the terms and conditions of this Subscription Agreement or by reason of the untruth or inaccuracy of any of the representations, warranties or agreements contained herein or in any other documents I have furnished to any of the foregoing in connection with this transaction.  This indemnification includes, but is not limited to, any damages, losses, liabilities, costs and expenses (including attorneys’ fees and costs) incurred by the Company, its directors, managers, officers, employees, affiliates and advisors, defending against any alleged violation of federal or state securities laws which is based upon or related to any untruth or inaccuracy of any of the representations, warranties or agreements contained herein or in any other documents I have furnished in connection with this transaction.

		
			 
		

			
	
			
				 14.
			I hereby acknowledge and agree that: (a) I may not transfer or assign this Subscription Agreement, or any interest herein, and any purported transfer shall be void; (b) I am not entitled to cancel, terminate or revoke this Subscription Agreement once I execute and deliver to the Company this Subscription Agreement and this Subscription Agreement will be binding on my heirs, successors and personal representatives; provided, however, that if the Company rejects this Subscription Agreement, this Subscription Agreement shall be automatically canceled, terminated and revoked; (c) notwithstanding subsection (b) above, I hereby acknowledge that the Company shall not accept this Subscription Agreement until the closing date of the offering of the Preferred Units; (d) this Subscription Agreement constitutes the entire agreement among the parties hereto with respect to the sale of the Preferred Units and may be amended, modified or terminated only by a writing executed by all parties (except as provided herein with respect to rejection of this Subscription Agreement by the Company); (e) within five days after receipt of a written request from the Company, the undersigned agrees to provide such information and to execute and deliver such documents as may be necessary to comply with any and all laws and regulations to which the Company is subject; and (f) the representations and warranties of the undersigned set forth herein shall survive the sale of the Preferred Units pursuant to this Subscription Agreement.

		
			 
		

		
			

		 

		

			6

		

		

			Initial Here: /s/ SAC

		

 

		

			 

		

		

		
			(SPECIAL INSTRUCTIONS: In all cases, the person/entity making the investment decision to purchase the Preferred Units must complete and sign the Subscription Agreement. For example, if the form of ownership designated above is a retirement plan for which investments are directed or made by a third party trustee, then that third party trustee must complete this Subscription Agreement rather than the beneficiaries under the retirement plan. Investors must list their principal place of residence rather than their office or other address on the signature page so that the Company can confirm compliance with appropriate securities laws. If you wish correspondence sent to some address other than your principal residence, please provide a mailing address in the blank provided below.)
		

		
			 
		

		
			IN WITNESS WHEREOF, I (we) have executed this Subscription Agreement this 29 day of June, 2018.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						A.

					
					
						REGISTRATION

					
						INFORMATION

					
					
						Please print the exact name (registration) investor desires on account:

					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
						Granite Falls Energy, LLC

				
	
					
						 

					
					
						 

					
					
						 

					
						Mailing address:

					
					
						 

					
						15045 Hwy 23 SE

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Granite Falls, MN 56241

				
	
					
						 

					
					
						 

					
					
						 

					
						E-mail address:

					
					
						 

					
						schristensen@granitefallsenergy.com

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						B.

					
					
						DISTRIBUTION

					
						ADDRESS

					
					
						Please indicate to whom distributions should be sent, if not to the address set forth in A. above.

					
						 

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Address:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Account Number:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						C.

					
					
						INVESTOR

					
						INFORMATION

					
					
						Please send all investor correspondence to the following:

					
						 

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Stacie Schuler, CFO

				
	
					
						 

					
					
						 

					
					
						 

					
						Address:

					
					
						 

					
						- same -

				
	
					
						 

					
					
						 

					
					
						 

					
						Investor Phone:

					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Business:

					
					
						(320) 564-3100

					
					
						Home:

					
					
						(    )

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Primary State of Residence:

					
					
						MN

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Social Security or Federal Tax ID Number:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				

		
			
		

		

		 

		

			7

		

 

		

			 

		

	
					
						

					
						D.

					
					
						SIGNATURES

					
					
						THE UNDERSIGNED HAS THE AUTHORITY TO ENTER INTO THIS SUBSCRIPTION AGREEMENT ON BEHALF OF THE PERSON(S) OR ENTITY REGISTERED IN A. ABOVE.

					
						 

				
	
					
						 

					
					
						 

					
					
						Executed this 29th day of June, 2018

				
	
					
						 

					
					
						 

					
					
						 

					
						/s/ Steve A. Christensen

				
	
					
						 

					
					
						 

					
					
						Signature (Investor, or authorized signatory)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						E.

					
					
						SUBMIT

					
						SUBSCRIPTION

					
					
						Make check payable to “Harvestone Group, LLC” or wire the Subscription Price to:

					
						 

					
						Account Name:  Harvestone Group, LLC 

					
						Account Number: 

					
						Bank Name: First Tennessee Bank 

					
						Bank ABA Routing Number: 

					
						 

					
						Mail the executed Subscription Agreement and check (if applicable) to:

					
						

					
						Harvestone Group, LLC

					
						840 Crescent Center Drive, Suite 540

					
						Franklin, Tennessee 37067

					
						Attn:  Chad Martin, Manager

				

		
			 
		

		
			Accepted by the Company as of this 29th day 
		

		
			of June, 2018.
		

		
			 
		

		
			HARVESTONE GROUP, LLC
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						/s/ Chad Martin

				
	
					
						By:

					
					
						Chad Martin

				
	
					
						Its:

					
					
						Manager

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		 

		

			8

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