Document:

Tax Allocation and Indemnification Agreement dated Sept. 1, 2004

 EXHIBIT 10.57 
  
 TAX ALLOCATION AND INDEMNIFICATION AGREEMENT 
  
 THIS TAX ALLOCATION AND INDEMNIFICATION AGREEMENT (this “Agreement”) is dated as of September 1, 2004, by
and between PC Mall, Inc., a Delaware corporation (“PC Mall”), and eCOST.com, Inc., a Delaware corporation (“eCOST”) (each, individually a “Party,” and collectively, the “Parties”).

  
 WHEREAS, PC Mall is the common parent corporation of
various directly and indirectly wholly-owned subsidiaries (the “PC Mall Consolidated Group”) including eCOST; 
  
 WHEREAS, members of the PC Mall Consolidated Group have heretofore joined in filing consolidated federal and combined income tax returns;

  
 WHEREAS, the Board of Directors of PC Mall has
determined that it is appropriate, desirable and in the best interests of PC Mall and its businesses as well as of the holders of PC Mall common stock, for PC Mall: (i) to contribute or otherwise transfer to eCOST, and to cause certain of its
Affiliates to contribute or otherwise transfer to eCOST, certain Assets and Liabilities associated with the eCOST Business as defined in the Master Separation and Distribution Agreement dated as of the date hereof, by and between PC Mall and eCOST
(the “Distribution Agreement”); (ii) to cause eCOST to make an initial public offering of its Common Stock, par value $.001 per share (the “Offering”); and (iii) following the consummation of the Offering, to
distribute pro rata to the holders of the PC Mall Common Stock all of its outstanding shares of common stock of eCOST (the “eCOST Common Shares”) as set forth in the Distribution Agreement, subject to the satisfaction or waiver of
the conditions set forth therein; 
  
 WHEREAS, as a result
of the Distribution (as defined in the Distribution Agreement), eCOST will cease to be a member of the PC Mall Consolidated Group; and 
  
 WHEREAS, PC Mall and eCOST desire to allocate the Tax (as defined herein) burdens and benefits of transactions which occurred on or prior to the
Distribution Date (as defined herein) and to provide for certain other Tax matters, including the assignment of responsibility for the preparation and filing of Tax Returns (as defined herein), the payment of Taxes, and the prosecution and defense
of any Tax controversies. 
  
 NOW, THEREFORE, in
consideration of the mutual agreements, provisions and covenants contained in this Agreement, the Parties hereby agree as follows: 
  
 ARTICLE I 
 DEFINITIONS

  
 SECTION 1.1. GENERAL. 
  
 Capitalized terms used in this Agreement and not defined herein shall have
the meanings that such terms have in the Distribution Agreement. As used in this Agreement, the following terms shall have the following meanings: 
  
 “Accountant” shall have the meaning set forth in Section 8.2(e) of this Agreement. 
  

 “Active Trade or Business” shall mean the active conduct (as defined in Section 355(b)(2) of
the Code and the Treasury Regulations thereunder) by eCOST of the eCOST Business. 
  
 “Actually Realized” shall mean, for purposes of determining the timing of the realization of a Refund by a Person in respect of any payment, transaction, occurrence or event, the time at which the amount of
Income Taxes paid by such Person is reduced below the amount of Income Taxes that such Person would have been required to pay but for such payment, transaction, occurrence or event. 
  
 “Affiliate” shall mean an entity with respect to which a Party possesses, directly or indirectly, the power to
direct or cause the direction of the management and policies of such entity, whether through ownership of voting securities or other interests, by contract or otherwise. 
  
 “After Tax Amount” shall mean any additional amount necessary to reflect the hypothetical Tax consequences of the
receipt or accrual of any payment required to be made under this Agreement (including the receipt or payment of an additional amount or amounts hereunder and the effect of the deductions available for interest paid or accrued and for Taxes such as
state and local income Taxes), determined by using the highest marginal corporate Tax rate (or rates, in the case of an item that affects more than one Tax) for the relevant taxable period (or portion thereof). 
  
 “Audit” shall mean any audit, assessment of Taxes, other
examination by any Governmental Authority, proceeding, or appeal of such a proceeding relating to Taxes, whether administrative or judicial, including proceedings relating to competent authority determinations. 
  
 “Board Certificate” shall have the meaning set forth in Section
5.2(e) of this Agreement. 
  
 “Code” shall mean the U.S.
Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder, including any successor legislation. 
  
 “Combined Return” shall mean any state, local or foreign Tax Return with respect to Income Taxes, filed on a consolidated, combined (including
nexus combination, worldwide combination, domestic combination, line of business combination or any other form of combination) or unitary basis. 
  
 “Consolidated Group” shall mean a group of entities that files a Consolidated Return. 
  
 “Consolidated Return” shall mean any Tax Return with respect to
U.S. federal Income Taxes filed on a consolidated basis. 
  
 “Contribution” shall mean the contribution of assets by PC Mall itself directly to eCOST itself pursuant to Section 2.1 of the Distribution Agreement. 
  

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 “Crossover Options(s)” shall have the meaning set forth in Section 7.2(b) of this Agreement.

  
 “Distribution Agreement” shall have the meaning set
forth in the recitals hereto. 
  
 “Distribution Date”
shall mean the close of business on the date on which the Distribution is effected. 
  
 “Distribution Taxes” shall mean any Taxes imposed on PC Mall or any Affiliate of PC Mall (other than eCOST), resulting from or in connection with the failure of the Distribution to be tax-free to PC Mall
under the Code (including, without limitation, any Tax resulting from the failure of the Distribution to qualify under Section 355 or Section 368 of the Code or the application of Section 355(d) or Section 355(e) of the Code to the Distribution) or
corresponding provisions of the laws of any other jurisdictions. Each Tax referred to in the immediately preceding sentence shall be determined using the highest marginal corporate rate applicable to such Tax for the relevant taxable period (or
portion thereof). 
  
 “eCOST” shall have the meaning set
forth in the recitals hereto. 
  
 “eCOST Business” shall
have the meaning set forth in the Distribution Agreement. 
  
 “eCOST Capital Stock” shall mean all classes or series of capital stock of eCOST, including (i) the eCOST Common Shares; (ii) all options, warrants and other rights to acquire such capital stock; and (iii) all instruments properly
treated as stock in eCOST for U.S. federal Income Tax purposes. 
  
 “eCOST Common Shares” shall have the meaning set forth in the recitals hereto. 
  
 “eCOST Indemnitees” shall mean eCOST, its directors, officers, employees, agents and stockholders. 
  
 “eCOST Option” shall mean an option to acquire eCOST Capital Stock.

  
 “eCOST Optionee” shall mean a person who at the time
of the exercise of a Replacement Option (i) is employed by or otherwise providing services to eCOST, or (ii) is not employed by or otherwise providing services to a member of either eCOST or the PC Mall Group but who previously was employed by or
otherwise provided services to eCOST and after the termination of such relationship did not become employed by or otherwise provide services to a member of the PC Mall Group. 
  
 “eCOST Separate Federal Amount” shall have the meaning set forth in Section 2.4(b) of this Agreement. 

 
 “eCOST Separate Combined Amount” shall have the meaning set
forth in Section 2.4(c) of this Agreement. 
  
 “eCOST
Separate Tax Return Amount” shall have the meaning set forth in Section 2.4(a) of this Agreement. 
  

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 “Effective Period” shall include all taxable periods of the PC Mall Consolidated Group that
begin or end on or after the date of the Offering, provided that eCOST is included in the PC Mall Consolidated Group for a portion of such taxable period. 
  
 “Fifty-Percent or Greater Interest” shall have the meaning ascribed to such term for purposes of Sections 355(d) and 355(e) of the Code.

  
 “Filing Party” shall have the meaning set forth in
Section 8.1(a) of this Agreement. 
  
 “Final
Determination” shall mean the final resolution of liability for any Tax for any taxable period, including any related interest or penalties, by or as a result of: a final and unappealable decision, judgment, decree or other order by any court
of competent jurisdiction; (ii) a closing agreement or accepted offer in compromise under Section 7121 or 7122 of the Code, or comparable agreement under the laws of other jurisdictions, which resolves the entire Tax liability for any taxable
period; (iii) any allowance of a refund or credit in respect of an overpayment of Tax, but only after the expiration of all periods during which such refund may be recovered by the jurisdiction imposing the Tax; or (iv) any other final disposition,
including by reason of the expiration of the applicable statute of limitations. 
  
 “Foreign Taxes” shall mean any Taxes imposed by a foreign Governmental Authority. 
  
 “Governmental Authority” shall mean any federal, state, local, foreign or international court, government, department, commission, board,
bureau, agency, official or other regulatory, administrative or governmental authority. 
  
 “Income Tax Return” shall mean any Tax Return with respect to Income Taxes. 
  
 “Income Taxes” shall mean any Taxes determined by or with reference to income or imposed in lieu of income Taxes, such as Taxes based on net
worth or gross receipts. “Income Taxes” shall include any minimum or alternative minimum Tax. 
  
 “Indemnifying Party” shall mean either PC Mall or eCOST, as the case may be, in its capacity as the party from which indemnification may be
sought as provided in this Agreement. 
  
 “Indemnitee”
shall mean a PC Mall Indemnitee or eCOST Indemnitee, as the case may be. 
  
 “IRS” shall mean the U.S. Internal Revenue Service or any successor thereto, including, but not limited to, its agents, representatives, and attorneys. 
  
 “Non-Filing Party” shall mean PC Mall, if eCOST is the Filing
Party, and eCOST, if PC Mall is the Filing Party. 
  
 “Offering” shall have the meaning set forth in the recitals hereto. 
  
 “Officer’s Certificate” shall mean the letters executed by officers of PC Mall and eCOST provided to Morrison & Foerster LLP, in connection with the Tax Opinion. 
  

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 “Owing Party” shall have the meaning set forth in Article III of this Agreement. 
  
 “Owed Party” shall have the meaning set forth in Article III of
this Agreement. 
  
 “Party” or “Parties” shall
have the meanings as defined in the recitals hereto. 
  
 “PC
Mall” shall have the meaning set forth in the recitals hereto. 
  
 “PC Mall Combined Return” shall mean any Combined Return that actually includes, by election or otherwise, PC Mall or one or more of its Affiliates together with eCOST or one or more of its Affiliates. 
  
 “PC Mall Consolidated Federal Return” shall mean any consolidated
federal Income Tax Return or amendment thereof of the PC Mall Consolidated Group for any PC Mall Consolidated Return Period. 
  
 “PC Mall Consolidated Group” shall mean, (i) with respect to federal Income Tax as to any taxable period, PC Mall and Affiliates of PC Mall
included in a consolidated federal Income Tax Return with PC Mall as the common parent, and (ii) with respect to Taxes other than federal Income Tax, as to any taxable period, PC Mall and Affiliates of PC Mall included in a Combined Return which
includes PC Mall or one or more Affiliates of PC Mall. 
  
 “PC Mall Consolidated Return Period” shall mean a taxable period that ends prior to or includes the Distribution Date for which a consolidated, combined or unitary (as applicable) federal, state, local or foreign Income Tax Return
is filed or required to be filed by the PC Mall Consolidated Group. 
  
 “PC Mall Consolidated Tax Liability” shall mean, with respect to any PC Mall Consolidated Return Period, the Income Tax liability of the PC Mall Consolidated Group with respect to a PC Mall Consolidated Federal Return or a PC Mall
Combined Return. 
  
 “PC Mall Group” shall mean the PC
Mall Consolidated Group, excluding eCOST. 
  
 “PC Mall
Indemnitees” shall mean each member of the PC Mall Group, each of their respective directors, officers, employees, agents, and shareholders. 
  
 “PC Mall Option” shall mean an option to acquire stock of PC Mall. 
  
 “PC Mall Optionee” shall mean a person who at the time of the exercise of a Replacement Option (i) is employed by
or otherwise providing services to a member of the PC Mall Group, or (ii) is not employed by or otherwise providing services to a member of either the PC Mall Group or eCOST but who previously was employed by or otherwise provided services to a
member of the PC Mall Group and after the termination of such relationship did not become employed by or otherwise provide services to eCOST. 
  
 “Person” shall mean any natural person, corporation, business trust, joint venture, association, company, partnership or government, or any
agency or political subdivision thereof. 
  

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 “Post-Distribution Period” shall mean a taxable period beginning on or after the Distribution
Date. 
  
 “Proposed Acquisition Transaction” shall mean
a transaction or series of transactions (or any agreement, understanding or arrangement, within the meaning of Section 355(e) of the Code and Treasury Regulation Section 1.355-7T, or any other Treasury Regulations promulgated thereunder, to enter
into a transaction or series of transactions), whether such transaction is supported by eCOST management or shareholders, is a hostile acquisition, or otherwise, as a result of which eCOST would merge or consolidate with any other Person or any
group of related Persons would (directly or indirectly) acquire, or have the right to acquire, from eCOST and/or one or more holders of outstanding shares of eCOST Capital Stock, a number of shares of eCOST Capital Stock that would, when combined
with the number of shares of eCOST Capital Stock sold pursuant to the Offering and any other changes in ownership of eCOST Capital Stock pertinent for purposes of Section 355(e) of the Code, comprise forty percent (40%) or more of (i) the value of
all outstanding shares of stock of eCOST as of the date of such transaction; or (ii) the total combined voting power of all outstanding shares of voting stock of eCOST as of the date of such transaction, or, with respect to either (i) or (ii), in
the case of a series of transactions, the date of the last transaction of such series. Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include: (i) the adoption by eCOST of a shareholder rights plan; or (ii) issuances of
eCOST that satisfy Safe Harbor VI (relating to acquisitions in connection with a person’s performance of services) or Safe Harbor VII (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355-7T(d).
This definition and the application hereof are intended to monitor compliance with Section 355(e) of the Code and shall be interpreted accordingly. Any clarification of, or change in, the statute or Treasury Regulations promulgated under Section
355(e) of the Code shall be incorporated in this definition and its interpretation. 
  
 “Refund” shall mean any refund of Taxes, including any reduction in Tax liabilities by means of a credit, offset or otherwise. 
  
 “Replacement Option” means (i) an option to acquire stock of PC Mall or (ii) an option to acquire stock of eCOST
which option was issued pursuant to Article V of the Employee Matters Agreement or in connection with the Distribution, or an option that is issued in exchange for an option described in clause (i) or (ii) of this definition. 
  
 “Restricted Period” shall mean the period beginning on the
Distribution Date and ending three years after the Distribution Date. 
  
 “Section 5.2(e) Acquisition Transaction” shall mean any transaction or series of transactions, other than the Offering, that is not a Proposed Acquisition Transaction but would be a Proposed Acquisition Transaction if the
percentage reflected in the definition of Proposed Acquisition Transaction were twenty-five percent (25%) instead of forty percent (40%). 
  
 “Sole Responsibility Item” shall mean any Tax Item for which the Non-Filing Party has the entire economic liability under this Agreement.

  

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 “Spin-Off” shall mean the separation of eCOST from the PC Mall Consolidated Group by means of
the Distribution. 
  
 “Tax” or “Taxes” whether
used in the form of a noun or adjective, shall mean taxes on or measured by income, franchise, gross receipts, sales, use, excise, payroll, personal property, real property, ad-valorem, value-added, leasing, leasing use or other taxes, levies,
imposts, duties, charges or withholdings of any nature (including, without limitation, any liability under Treasury Regulations Section 1.1502-6 or any comparable provision of foreign, state or local law). Whenever the term “Tax” or
“Taxes” is used (including, without limitation, regarding any duty to reimburse another Party for indemnified taxes or refunds or credits of taxes), it shall include penalties, fines, additions to tax and interest thereon. 
  
 “Tax Control” shall mean the definition of “control” set
forth in Section 368(c) of the Code (or in any successor statute or provision), as such definition may be amended from time to time. 
  
 “Tax Counsel” shall mean a U.S. tax counsel or accountant of recognized national standing. 
  
 “Tax Attribute” shall have the meaning as defined in Section 2.4(b)
of this Agreement. 
  
 “Tax-Free Status” shall mean the
qualification of the Contribution and the Distribution, taken together, (a) as a reorganization described in Sections 355(a) and 368(a)(1)(D) of the Code; (b) as a transaction in which the stock distributed thereby is “qualified property”
for purposes of Sections 355(d), 355(e) and 361(c) of the Code; and (c) as a transaction in which PC Mall, eCOST and the shareholders of PC Mall recognize no income or gain for U.S. federal income tax purposes pursuant to Sections 355, 361 and 1032
of the Code, other than, in the case of PC Mall and eCOST, intercompany items or excess loss accounts taken into account pursuant to the Treasury Regulations promulgated pursuant to Section 1502 of the Code. 
  
 “Tax Item” shall mean any item of income, capital gain, net
operating loss, capital loss, deduction, credit or other Tax attribute relevant to the calculation of a Tax liability. 
  
 “Tax Opinion” shall mean the opinion letter to be issued by Morrison & Foerster LLP, addressing the U.S. federal Income Tax consequences of
the Contribution and the Distribution under Sections 368(a)(1)(D) and 355 of the Code. 
  
 “Tax-Related Losses” shall mean (i) all federal, state and local Taxes imposed pursuant to any settlement, Final Determination, judgment or otherwise; (ii) all accounting, legal and other professional fees,
and court costs incurred in connection with such Taxes; and (iii) all costs, expenses and damages associated with shareholder litigation or controversies and any amount paid by PC Mall (or any Affiliate of PC Mall) or eCOST (or any Affiliate of
eCOST) in respect of the liability of shareholders, whether paid to the shareholders or to the IRS or any other Governmental Authority, in each case, resulting from failure of the Contribution and the Distribution to have Tax-Free Status.

  

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 “Tax Returns” shall mean all reports or returns (including information returns) required to be
filed or that may be filed for any period with any Governmental Authority (whether domestic or foreign) in connection with any Tax or Taxes (whether domestic or foreign), and any amendments thereto. 
  
 SECTION 1.2. REFERENCES; INTERPRETATION. 
  
 References in this Agreement to any gender include references to all
genders, and references to the singular include references to the plural and vice versa. The words “include,” “includes” and “including” when used in this Agreement shall be deemed to be followed by the phrase
“without limitation.” Unless the context otherwise requires, references in this Agreement to Articles and Sections shall be deemed references to Articles and Sections of this Agreement. Unless the context otherwise requires, the words
“hereof,” “hereby” and “herein” and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and not to any particular Article, Section or provision of this Agreement. 
  
 ARTICLE II 
 PREPARATION AND FILING OF TAX RETURNS; 
 ALLOCATION OF TAX LIABILITIES

  
 SECTION 2.1. PC MALL CONSOLIDATED FEDERAL RETURNS. 
  
 (a) In General. For any PC Mall Consolidated Return Period, PC
Mall shall have sole and exclusive responsibility for the preparation and filing of all PC Mall Consolidated Federal Returns with the IRS. To the extent provided by law, such Tax Returns shall include the income, gains, losses, deductions and
credits of eCOST. 
  
 (b) Cooperation. eCOST shall furnish
PC Mall, at least sixty (60) days before the due date (including extensions) of any such PC Mall Consolidated Federal Return, with the information relating to eCOST necessary to prepare and file such Tax Return, prepared in accordance with this
Agreement, in accordance with instructions from PC Mall and in a manner consistent with prior Tax Returns; eCOST shall also furnish PC Mall work papers and other such information and documentation as is reasonably requested by PC Mall with respect
to eCOST. 
  
 SECTION 2.2. PC MALL COMBINED RETURNS. 
  
 (a) In General. For any PC Mall Consolidated Return Period, PC Mall
shall have sole and exclusive responsibility for the preparation and filing of all PC Mall Combined Returns. 
  
 (b) Cooperation. PC Mall will timely advise eCOST of the inclusion of eCOST in any PC Mall Combined Returns and the jurisdictions in which such
returns will be filed. eCOST will evidence its agreement to be included in such return on the appropriate form(s) and will take such other actions as may be appropriate, in the opinion of PC Mall, to carry out the purposes and intent of this Section
2.2. eCOST shall furnish PC Mall, at least sixty (60) days before the due date (including extensions) of any such PC Mall Combined Return, with the information relating to eCOST necessary to prepare and file such Tax Return, prepared in accordance
with this Agreement, in accordance with instructions from PC Mall and in a manner consistent with 

  

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prior Tax Returns, if any. eCOST shall also furnish PC Mall work papers and other such information and documentation as is reasonably requested by PC Mall
with respect to eCOST. 
  
 SECTION 2.3. PC MALL TAX LIABILITY. 

 
 (a) PC Mall Consolidated Federal Return Liability. Except
to the extent otherwise provided herein, for each PC Mall Consolidated Return Period, PC Mall shall be liable for and indemnify eCOST against all Tax due in respect of the PC Mall Consolidated Federal Return, subject to reimbursement from eCOST as
contemplated by Sections 2.5 and 2.6 of this Agreement. 
  
 (b)
PC Mall Combined Return Liability. Except to the extent otherwise provided herein, for each PC Mall Consolidated Return Period, PC Mall shall be liable for and indemnify eCOST against all Tax due in respect of any PC Mall Combined Return with
respect to such period, subject to reimbursement from eCOST as contemplated by Sections 2.5 and 2.6 of this Agreement. 
  
 SECTION 2.4. eCOST SEPARATE RETURN TAX AMOUNT 
  
 (a) In General. For any taxable period ending during the Effective Period of this Agreement, the term “eCOST Separate Tax Return
Amount” shall mean the aggregate amount, whether negative or positive, of (i) the eCOST Separate Federal Amount and (ii) the eCOST Separate Combined Amount, each as adjusted pursuant to this Agreement. 
  
 (b) Computation of eCOST Separate Federal Amount. For each PC Mall
Consolidated Return Period that ends during the Effective Period of this Agreement, PC Mall shall compute the eCOST Separate Federal Amount for the portion of such periods in which eCOST is a member of the PC Mall Consolidated Group. “eCOST
Separate Federal Amount” means, with respect to each PC Mall Consolidated Return Period, the federal Income Tax liability that would be payable by eCOST to the IRS (in which case such amount will be positive), or the federal Income Tax
Refund that would be payable to eCOST (in which case such amount will be negative) if eCOST had filed a separate federal Income Tax Return for the entire period that eCOST is included in the PC Mall Consolidated Return. In the event that eCOST has a
net operating loss, tax credit or other favorable Tax attribute (a “Tax Attribute”) for federal Tax purposes for a particular PC Mall Consolidated Return Period that would eliminate the federal Tax liability of eCOST for such
taxable period but would not yield a federal Tax Refund for eCOST on a separate federal Income Tax Return basis, the eCOST Separate Federal Amount shall be zero for such taxable period, and such federal Tax Attribute shall be taken into account, if
at all, by eCOST in a subsequent PC Mall Consolidated Return Period on such separate return basis, as herein provided. For the sake of clarity, it is specifically intended that eCOST shall not be entitled to any recovery for the use by the PC Mall
Consolidated Group of an eCOST federal Tax Attribute by reason of the fact that such federal Tax Attribute is not available to eCOST in an eCOST federal Tax Return for any period beginning on or after the Distribution Date. In computing the eCOST
Separate Federal Amount, eCOST shall follow the Tax elections and other Tax positions adopted or prescribed by PC Mall. 
  

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 (c) Computation of eCOST Separate State, Local and Foreign Amount. For each PC Mall Consolidated
Return Period that ends on or after the first day of the Effective Period of this Agreement, eCOST shall compute as to each jurisdiction in which a PC Mall Combined Return is filed, the eCOST Separate Combined Amount for the portion of such periods
in which eCOST is a member of the PC Mall Consolidated Group. “eCOST Separate Combined Amount” means, with respect to each PC Mall Consolidated Return Period, as to each such jurisdiction in which a PC Mall Combined Return is filed,
the Tax liability that would be payable by eCOST (in which case such amount will be positive), or the Tax Refund that would be payable to eCOST (in which case such amount will be negative) if eCOST had filed a separate Tax Return for the entire
period that eCOST is included in the PC Mall Consolidated Return, in such jurisdiction using eCOST’s separate apportionment factors. In the event that eCOST would have a Tax Attribute for a particular PC Mall Consolidated Return Period in such
jurisdiction that would eliminate the Tax liability of eCOST for such taxable period in such jurisdiction but would not yield a Tax Refund for eCOST on a separate return basis, the eCOST Separate State, Local and Foreign Amount shall be zero for
such taxable period, and Tax Attribute shall be taken into account, if at all, by eCOST in a subsequent PC Mall Consolidated Return Period on such separate return basis, as herein provided. For the sake of clarity, it is specifically intended that
eCOST shall not be entitled to any recovery for the use by the PC Mall Consolidated Group of an eCOST Tax Attribute in such jurisdiction by reason of the fact that such Tax Attribute in such jurisdiction is not available to eCOST in an eCOST Tax
Return for any period beginning on or after the Distribution Date. In computing the eCOST Separate Combined Amount, eCOST shall follow the Tax elections and other Tax positions adopted or prescribed by PC Mall. 
  
 SECTION 2.5. PAYMENT OF eCOST SEPARATE TAX RETURN AMOUNTS. 
  
 (a) Payment from eCOST to PC Mall. For any PC Mall Consolidated
Return Period covered by this Agreement, if the eCOST Separate Tax Return Amount with respect to a Tax Return is a positive amount, eCOST shall pay such amount to PC Mall on or before the due date (without extensions) of the relevant PC Mall
Consolidated Federal Return or PC Mall Combined Return for the appropriate PC Mall Consolidated Return Period. Such payment shall be reduced by any relevant estimated Tax payments made by eCOST for such taxable period pursuant to Section 2.5(c) of
this Agreement. PC Mall may direct or allow the above payment to be made after the prescribed date. If all relevant information necessary to determine the amount of the payment is not available by the due date, the payment shall be based on
estimates, and adjustments shall be made when sufficient information is available or as soon as practicable after the relevant Tax Return is filed. 
  
 (b) Payment from PC Mall to eCOST. For any PC Mall Consolidated Return Period covered by this Agreement, if the eCOST Separate Tax Return Amount
with respect to a Tax Return is a negative amount, PC Mall shall pay to eCOST the amount that would have been allowed as a net Tax Refund to eCOST within ten days of the date such Tax Return is filed. Such payment shall be increased by any estimated
Tax payments with respect to such Tax Return made by eCOST for such taxable period pursuant to Section 2.5(c) of this Agreement. If all relevant information necessary to determine the amount of the payment is not available by the due date of such
payment, such payment shall be based on estimates, and adjustments shall be made when sufficient information is available. 
  

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 (c) Federal Estimated Tax Payments. For any PC Mall Consolidated Return Period covered by this
Agreement for periods prior to the Distribution, in accordance with Section 6655(c) of the Code, eCOST shall pay to PC Mall quarterly installments of federal estimated Tax promptly, but not later than, the date immediately preceding each due date of
the applicable estimated Tax payment with respect to a taxable period for which a PC Mall Consolidated Return or a PC Mall Combined Return will be filed. The amount of such payments for the first, second, third and fourth installments shall
cumulatively equal twenty-five percent (25%), fifty percent (50%), seventy-five percent (75%) and one hundred percent (100%), respectively, of the estimated full-year eCOST Separate Tax Return Amount (including minimum tax and environmental tax).

  
 (d) Combined Return Estimated Payments. eCOST shall pay
to PC Mall payments of estimated Tax with respect to any PC Mall Combined Return for a PC Mall Consolidated Return Period for periods prior to the Distribution. PC Mall shall advise eCOST of the due date of any such estimated Tax payment and the
applicable percentage of estimated Tax required to be paid. The payment due from eCOST shall equal the relevant percentage of the estimated full-year eCOST Separate tax Return Amount. Settlement for such payment shall be made on or before the due
date of the applicable estimated Tax payment. PC Mall may direct or allow such payment to be made after the prescribed date. 
  
 SECTION 2.6. ADJUSTMENTS RESULTING IN UNDERPAYMENTS. 
  
 In the case of any adjustment pursuant to a Final Determination with respect to any Tax Return, the Filing Party shall pay to the applicable Governmental
Authority when due any additional Tax due with respect to such Tax Return required to be paid as a result of such adjustment pursuant to a Final Determination. The Filing Party shall compute the amount attributable to eCOST and its Affiliates in
accordance with Article II of this Agreement and eCOST shall pay to PC Mall any amount due PC Mall (or PC Mall shall pay eCOST any amount due eCOST) under Section 2 within thirty (30) days from the later of (i) the date the additional Tax was paid
by the Filing Party or (ii) the date of receipt of a written notice and demand from the Filing Party for payment of the amount due, accompanied by evidence of payment and a statement detailing the Taxes paid and describing in reasonable detail the
particulars relating thereto. Any payments required under this Section 2.6 shall include interest computed pursuant to Section 3.5 of this Agreement based on the number of days from the date the additional Tax was paid by the Filing Party to the
date of the payment under this Section 2.6. 
  
 SECTION 2.7. SEPARATE TAX
RETURNS. 
  
 Except for PC Mall Federal Consolidated Federal
Returns and PC Mall Combined Returns, each Party shall be responsible for the preparation of any Tax Return it is required to file. The Party required to file such Tax Return shall be liable for any Tax due with respect to such Tax Return, shall be
entitled to any Refund of such Tax, and shall indemnify the other Party and its Indemnitees against any liability for such Tax. 
  

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 SECTION 2.8. POST-DISTRIBUTION TAX RETURNS. 
  
 (a) PC Mall shall prepare and file or cause to be filed any Tax Return required to be filed by any member of the PC Mall
Group for any Post-Distribution Period. 
  
 (b) eCOST shall file
or cause to be filed any Tax Return required to be filed by eCOST for any Post-Distribution Period. 
  
 SECTION 2.9. MANNER OF PREPARATION. 
  
 (a) All Tax Returns filed on or after the Distribution Date shall be prepared on a basis that is consistent with the Tax Opinion obtained from Morrison & Foerster LLP in connection with the Distribution (in the
absence of a controlling change in law or circumstances). In the absence of a controlling change in law or circumstances and unless deviation from past practice would have no adverse effect on the other Party, all Tax Returns filed within three
years after the Distribution Date shall be prepared on a basis consistent with the elections, accounting methods, conventions, assumptions and principles of taxation used for the most recent taxable periods for which Tax Returns involving similar
Tax Items have been filed; provided, however, that a Party preparing any Tax Return that does not conform to such past practices shall not be liable for any additional Tax liability imposed on the other Party, in whole or in part, as a result of
such deviation from past practice if: (i) thirty (30) days prior to the filing of such Tax Return, the Party preparing such Tax Return notifies the other Party if such other Party may be adversely affected; and (ii) the Party preparing such Tax
Return establishes that conformity with past practice involves a significant risk of the imposition of a penalty. Subject to the provisions of this Agreement, all decisions relating to the preparation of Tax Returns shall be made in the sole
discretion of the Party responsible under this Agreement for its preparation; provided, however, that if the other Party is included in such Tax Return, it shall have the right to review and comment on such Tax Return prior to the filing thereof.

  
 (b) Unless otherwise required by any Governmental Authority,
the Parties hereby agree to file all Tax Returns, and to take all other actions, in a manner consistent with the position that the Distribution Date is the last day on which eCOST is included in the PC Mall Consolidated Group. For any period that
includes but does not end on the Distribution Date, to the extent permitted by law or administrative practice, the taxable year of eCOST shall be treated as ending on the Distribution Date. 
  
 ARTICLE III 
 PAYMENTS OF TAX 
  
 In the event that one Party (the “Owing Party”) is required to make a payment to another Party (the “Owed Party”) pursuant this Agreement, then such payments shall be made according
to this Article III. 
  

 12 

 SECTION 3.1. IN GENERAL. 
  

All payments shall be made to the Owed Party or to the appropriate Governmental Authority as specified by the Owed Party within the time prescribed for
payment in this Agreement, or if no period is prescribed, within twenty (20) days after delivery of written notice of payment owing together with a computation of the amounts due. 
  
 SECTION 3.2. TREATMENT OF PAYMENTS. 
  
 Unless otherwise required by any Final Determination, the Parties agree that any payments made by one Party to another Party (other than payments of After
Tax Amounts pursuant to Section 3.4 of this Agreement and payments of interest pursuant to Section 3.5 of this Agreement) pursuant to this Agreement shall be treated for all Tax and financial accounting purposes, subject to applicable law, as
nontaxable payments (dividend distributions or capital contributions, as the case may be) made immediately prior to the Distribution and, accordingly, as not includible in the taxable income of the recipient or as deductible by the payor.

  
 SECTION 3.3. PROMPT PERFORMANCE. 
  
 All actions required to be taken by any Party under this Agreement shall be
performed within the time prescribed for performance in this Agreement, or if no period is prescribed, such actions shall be performed as soon as practicable. 
  

SECTION 3.4. AFTER TAX AMOUNTS. 
  
 If pursuant to a Final Determination it is determined that the receipt or accrual of any payment made under this Agreement (other than payments of
interest pursuant to Section 3.5 of this Agreement) is subject to any Tax, the Party making such payment shall be liable for: (1) the After Tax Amount with respect to such payment; and (2) interest at the rate described in Section 3.5 of this
Agreement on the amount of such After Tax Amount from the date such After Tax Amount is due under this Agreement through the date of payment of such After Tax Amount. A Party making a demand for a payment pursuant to this Agreement and for a payment
of an After Tax Amount with respect to such payment shall separately specify and compute such After Tax Amount. However, a Party may choose not to specify an After Tax Amount in a demand for payment pursuant to this Agreement without thereby being
deemed to have waived its right subsequently to demand an After Tax Amount with respect to such payment. 
  
 SECTION 3.5. INTEREST. 
  
 Payments made pursuant to this Agreement that are not made within the period prescribed in this Agreement (the “Payment Period”) shall bear interest for the period from and including the date immediately following the last date of
the Payment Period through and including the date of payment at a per annum rate equal to the applicable rate for large corporate underpayments set forth in Section 6621(c) of the Code. Such interest will be payable at the same time as the payment
to which it relates and shall be calculated on the basis of a year of 365 days and the actual number of days for which due. 
  

 13 

 ARTICLE IV 
 INDEMNIFICATION 
  
 SECTION 4.1. eCOST
INDEMNIFICATION. 
  
 eCOST shall indemnify, defend and hold
harmless the PC Mall Indemnitees from and against any and all Taxes for which eCOST is liable under this Agreement, and loss, cost, damage, fine, penalty or expense, including reasonable attorneys’ fees and costs, attributable to or resulting
from any breach by eCOST of this Agreement or the failure of eCOST to make any payment required to be made under this Agreement. 
  
 SECTION 4.2. PC MALL INDEMNIFICATION. 
  
 PC Mall shall indemnify, defend and hold harmless the eCOST Indemnitees from and against any and all Taxes for which PC Mall is liable under this
Agreement, and loss, cost, damage, fine, penalty or expense, including reasonable attorneys’ fees and costs, attributable to or resulting from any breach by PC Mall of this Agreement or the failure of PC Mall to make any payment required to be
made under this Agreement. 
  
 SECTION 4.3. PAYMENTS. 
  
 All indemnification payments under this Agreement shall be made by PC Mall
directly to eCOST and by eCOST directly to PC Mall; provided however, that if the Parties mutually agree with respect to any such indemnification payment, any Affiliate of PC Mall, on one hand, may make such indemnification payment to any
Affiliate of eCOST, on the other hand, and vice versa. 
  
 ARTICLE V 
 TAX-FREE STATUS 
  
 SECTION 5.1. TAX OPINION AND OFFICER’S CERTIFICATES. 
  
 (a) Each of PC Mall and eCOST hereby represents and agrees that (i) it will read the Officer’s Certificates prior to the date submitted and (ii)
subject to any qualifications therein, all information contained in such Officer’s Certificates that concerns or relates to such Party or any Affiliate of such Party will be true, correct and complete. 
  
 (b) PC Mall and eCOST acknowledge that the Tax Opinion and the Officer’s
Certificates have not yet been obtained or submitted and may not be obtained or submitted until after the Offering. PC Mall and eCOST shall use their commercially reasonable efforts and shall cooperate in good faith to finalize the Officer’s
Certificates for the Distribution as soon as practicable hereafter and to cause the same to be submitted to Morrison & Foerster LLP and shall take other commercially reasonable actions as may be necessary or desirable to obtain the Tax Opinion
in order to confirm the Tax-Free Status. 
  
 SECTION 5.2. RESTRICTIONS ON
eCOST.  
  
 (a) eCOST agrees that it will not take or
fail to take, or permit any Affiliate of eCOST to take or fail to take, any action where such action or failure to act would be 

  

 14 

 
inconsistent with or cause to be untrue any material information, covenant or representation that concerns or relates to eCOST or any Affiliate of eCOST in
any Officer’s Certificates or Tax Opinion. eCOST agrees that it will not take or fail to take, or permit any Affiliate of eCOST to take or fail to take, any action which prevents or could reasonably be expected to prevent (i) the Tax-Free
Status, or (ii) any transaction contemplated by the Distribution Agreement which is intended by the Parties to be tax-free from so-qualifying, including issuing any eCOST Capital Stock that would prevent that Distribution from qualifying as a
tax-free distribution under Section 355 of the Code. 
  
 (b) After
the consummation of the Offering, eCOST agrees that it shall not take nor permit any Affiliate of eCOST to take, any action that could reasonably be expected to jeopardize PC Mall’s Tax Control of eCOST. Without limiting the foregoing, eCOST
agrees that, after the consummation of the Offering and on or prior to the Distribution Date, eCOST shall not issue or grant, and shall not permit any Affiliate of eCOST to issue or grant, directly or indirectly, any eCOST Common Shares or any
rights, warrants, options or other securities to purchase or acquire (whether upon conversion, exchange or otherwise) any eCOST Common Shares (whether or not then exercisable, convertible or exchangeable) except for grants of stock options to
employees or directors of eCOST that by their terms cannot be exercised until after the earlier of (i) the Distribution Date or (ii) eighteen (18) months following the date on which the Offering is consummated. 
  
 (c) eCOST agrees that, from the Distribution Date until the first day after
the three-year anniversary of the Distribution Date, it will (i) maintain its status as a company directly engaged in the Active Trade or Business and (ii) not engage in any transaction that would result in it ceasing to be a company directly
engaged in the Active Trade or Business. 
  
 (d) eCOST agrees
that, from the Distribution Date until the first day after the three-year anniversary of the Distribution Date, it will not (i) enter into any Proposed Acquisition Transaction, or, to the extent that eCOST has the right to prohibit any Proposed
Acquisition Transaction, permit any Proposed Acquisition Transaction to occur; (ii) merge or consolidate with any other Person or liquidate or partially liquidate; (iii) in a single transaction or series of transactions, sell or transfer (other than
sales or transfers of inventory in the ordinary course of business) all or substantially all of the assets that are transferred to eCOST pursuant to the Contribution or sell or transfer sixty percent (60%) or more of the gross assets of the Active
Trade or Business or sixty percent (60%) or more of the consolidated gross assets of eCOST and its Affiliates (such percentages to be measured based on fair market value as of the Distribution Date); (iv) redeem or otherwise repurchase (directly or
through an Affiliate of eCOST) any stock of eCOST, or rights to acquire stock, except to the extent such repurchases satisfy Section 4.05(1)(b) of Revenue Procedure 96-30, 1996-1 CB 696; or (v) take any action or actions (including any action or
actions that would be reasonably likely to be inconsistent with any representation made by eCOST in the Officer’s Certificates or the Tax Opinion, which in the aggregate (and taking into account any other transactions described in this Section
5.2(d)) which would be reasonably likely to have the effect of causing or permitting one or more persons (whether or not acting in concert) to acquire directly or indirectly stock representing a Fifty-Percent or Greater Interest in eCOST or
otherwise jeopardizing the Tax-Free Status, unless prior to taking any such action set forth in the foregoing clauses (i) through (v), eCOST obtains, and 

  

 15 

 
provides to PC Mall, a ruling from the IRS or a written opinion from Tax Counsel which opinion is reasonably acceptable to PC Mall that such transaction, and
any transaction or transactions related thereto, will not affect the qualification of the Distribution under Section 355 or Section 368 of the Code and will not cause Section 355(e) of the Code to apply to the transaction. 
  
 (e) If eCOST proposes to enter into any Section 5.2(e) Acquisition
Transaction, or to the extent eCOST has the right to prohibit any Section 5.2(e) Acquisition Transaction, proposes to permit any Section 5.2(e) Acquisition Transaction to occur, in each case, during the period from the Distribution Date until the
first day after the three-year anniversary of the Distribution Date, eCOST shall provide to PC Mall, no later than ten (10) days following the signing of any written agreement with respect to the Section 5.2(e) Acquisition Transaction, with a
written description of such transaction (including the type and amount of eCOST Capital Stock to be issued in such transaction) and a certificate of the Board of Directors of eCOST to the effect that the Section 5.2(e) Acquisition Transaction is not
a Proposed Acquisition Transaction or any other transaction to which the requirements of Section 5.2(d) apply (a “Board Certificate”). 
  
 SECTION 5.3. RESTRICTIONS ON PC MALL. 
  
 PC Mall agrees that it will not take or fail to take, or permit any member of the PC Mall Group to take or fail to take, any action where such action or
failure to act would be inconsistent with or cause to be untrue any material information, covenant or representation in any Officer’s Certificates or Tax Opinion. PC Mall agrees that it will not take or fail to take, or permit any member of the
PC Mall Group to take or fail to take, any action which prevents or could reasonably be expected to prevent (i) the Tax-Free Status; or (ii) any other transaction contemplated by the Distribution Agreement which is intended by the Parties to be
tax-free from so qualifying; provided however, that this Section 5.3 shall not be construed as obligating PC Mall to consummate the Distribution without the satisfaction or waiver of all conditions set forth in Section 4.3 of the Distribution
Agreement nor shall it be construed as preventing PC Mall from terminating the Distribution Agreement pursuant to Section 12.2 thereof. 
  
 SECTION 5.4. LIABILITY FOR TAX-RELATED LOSSES. 
  
 (a) Notwithstanding anything in this Agreement or the Distribution Agreement to the contrary, subject to Section 5.4(c), eCOST shall be responsible for,
and shall indemnify and hold harmless PC Mall and its Affiliates and each of their respective officers, directors and employees from and against one hundred percent (100%) of any Tax-Related Losses that are attributable to or result from any one or
more of the following: (i) after the Distribution Date, the acquisition (other than pursuant to the Contribution and the Distribution) of all or a portion of eCOST’s stock and/or its assets by any means whatsoever by any Person, (ii) after the
Distribution Date, any negotiations, understandings, agreements or arrangements by eCOST with respect to transactions or events (including, without limitation, stock issuances, pursuant to the exercise of stock options or otherwise, option grants,
capital contributions or acquisitions, or a series of such transactions or events) that cause the Distribution to be treated as part of a plan pursuant to which one or more Persons acquire directly or indirectly stock of eCOST representing a
Fifty-Percent or Greater Interest therein; (iii) after the Distribution Date, any act or failure to act by eCOST or any Affiliate of eCOST described in Section 5.2 (regardless of whether such act or 

  

 16 

 
failure to act is covered by a ruling or tax opinion described in Section 5.2(d), or a Board Certificate described in Section 5.2(e)); or (iv) any breach by
eCOST of its agreement and representation set forth in Section 5.1(a) after the Distribution Date. 
  
 (b) Notwithstanding anything in this Agreement or the Distribution Agreement to the contrary, subject to Section 5.4(c), PC Mall shall be responsible for,
and shall indemnify and hold harmless eCOST and its Affiliates and each of their respective officers, directors and employees from and against one hundred percent (100%) of any Tax-Related Losses that are attributable to or result from any one or
more of the following: (i) the acquisition (other than pursuant to the Contribution and the Distribution) of all or a portion of PC Mall’s stock and/or its assets by any means whatsoever by any Person other than an Affiliate of PC Mall; (ii)
any negotiations, understandings, agreements or arrangements by PC Mall with respect to transactions or events (including, without limitation, stock issuances, pursuant to the exercise of stock options or otherwise, option grants, capital
contributions or acquisitions, or a series of such transactions or events) that cause the Distribution to be treated as part of a plan pursuant to which one or more Persons acquire directly or indirectly stock of PC Mall representing a Fifty-Percent
or Greater Interest therein; (iii) any act or failure to act by PC Mall or any Affiliate of PC Mall described in Section 5.3; or (iv) any breach by PC Mall of its agreement and representation set forth in Section 5.1(a). 
  
 (c) To the extent that any Tax-Related Loss is subject to indemnity under
both Sections 5.4(a) and (b) hereof, responsibility for such Tax-Related Loss shall be shared by PC Mall and eCOST according to relative fault. 
  
 ARTICLE VI 
 TAX ATTRIBUTES

  
 SECTION 6.1. APPORTIONMENT OF TAX ATTRIBUTES. 
  
 (a) If the PC Mall Consolidated Group has a Tax Attribute, the portion, if
any, of such Tax Attribute that shall be apportioned to eCOST and treated as a carryover to the first Post-Distribution Period of eCOST shall be determined in accordance with Treasury Regulation §§ 1.1502-21(b), 1.1502-22(b), 1.1502-79 and
1.1502-79A; provided, however, that the portion, if any, of any consolidated unused Foreign Tax credit which shall be apportioned to eCOST or such member shall be determined separately with respect to each of the items of income listed
in Section 904(d) of the Code. 
  
 (b) No consolidated U.S.
federal income Tax Attribute of the PC Mall Consolidated Group, other than those described in Section 6.1(a) hereof, and no consolidated, combined or unitary state, local, or foreign income Tax Attribute arising in respect of a PC Mall State, Local
and Foreign Return, shall be apportioned to eCOST, except as PC Mall (or such member of the PC Mall Group as PC Mall shall designate) determines is otherwise required under the provisions of applicable law. 
  
 (c) PC Mall shall determine the portion, if any, of any Tax Attribute which
must (absent a Final Determination to the contrary) be apportioned to eCOST in accordance with this 

  

 17 

 
Section 6.1 and applicable law, and the amount of tax basis and earnings and profits to be apportioned to eCOST in accordance with applicable law, and shall
provide written notice of the calculation thereof to eCOST as soon as practicable after the information necessary to make such calculation becomes available to PC Mall. 
  
 (d) eCOST shall prepare, or cause to be prepared, and file, or cause to be filed, all Income Tax Returns for which it is
responsible under this Agreement, so as to take into account, to the extent permitted by applicable law, any Tax Attribute (and the amount of tax basis and earnings and profits) apportioned to eCOST as calculated pursuant to Section 6.1(c) hereof.
Until such time as any such Tax Attribute has been utilized by eCOST (or would have been so utilized had eCOST complied with the requirements of the previous sentence), eCOST shall, in connection with each Income Tax Return filed by it, provide PC
Mall with a statement, signed by eCOST’s chief financial officer and certified by eCOST’s independent accounting firm, setting forth in reasonable detail a calculation of the extent to which any such Tax Attribute was utilized on such
Income Tax Return (or would have been so utilized had eCOST complied with the requirements of the previous sentence). 
  
 (e) Notwithstanding any other provision of this Agreement, eCOST hereby expressly agrees to elect (under Section 172(b)(3) of the Code and, to the extent
feasible, any similar provision of any state, local or Foreign Tax law) to relinquish any right to carry back net operating losses for any tax year with respect to which such net operating loss could otherwise be carried back into a Consolidated
Return or a Combined Return (in which event no payment shall be due from PC Mall to eCOST in respect of such net operating loss). 
  
 (f) PC Mall shall be entitled to all Refunds (and any interest thereon received from the applicable Governmental Authority) in respect of Income Taxes for
all PC Mall Consolidated Return Periods. Except to the extent provided in Section 6.1(e), eCOST shall be entitled to all Refunds (and any interest thereon received from the applicable Governmental Authority) in respect of Income Taxes paid by eCOST
for all Post-Distribution Periods. A Party receiving a Refund to which another Party is entitled pursuant to this Section 6.1(f) shall pay the amount to which such other Party is entitled within ten (10) days after such Refund is Actually Realized.
PC Mall shall be permitted to file, and eCOST shall fully cooperate with PC Mall in connection with, any claim for Refund in respect of an Income Tax for which any member of the PC Mall Group is responsible pursuant to Section 2 hereof. Any costs
and expenses, if any, incurred in connection with obtaining a Refund shall be borne by the Party that is entitled to such Refund under this Section 6.1(f). 
  
 ARTICLE VII 
 COMPENSATORY STOCK
OPTIONS 
  
 SECTION 7.1. DEDUCTIONS. 
  
 (a) All compensation deductions attributable to the amounts included in the
gross income of a PC Mall Optionee whether such amounts of gross income are attributable to the exercise of a PC Mall Option or an eCOST Option shall be allocated to and claimed by the PC Mall Group and eCOST shall not report such deductions on its
Income Tax Returns. 
  

 18 

 (b) All compensation deductions attributable to the amounts included in the gross income of an eCOST
Optionee as a result of the exercise of an eCOST Option or a PC Mall Option after the Distribution Date shall be allocated to and claimed by eCOST and the PC Mall Group shall not report such deductions on its Income Tax Returns. 
  
 SECTION 7.2. WITHHOLDING AND INFORMATION REPORTING. 
  
 (a) PC Mall shall be responsible for any payroll Taxes, withholding Taxes
and information reporting arising out of the exercise of a PC Mall Option or an eCOST Option by a PC Mall Optionee, and eCOST shall be responsible for any payroll Taxes, withholding Taxes and information reporting arising out of the exercise of a PC
Mall Option or an eCOST Option by an eCOST Optionee. 
  
 (b) With
respect to any eCOST Option held by a PC Mall Optionee, and with respect to any PC Mall Option held by an eCOST Optionee, (each, a “Crossover Option”) such entity as mutually designated by PC Mall and eCOST shall act as the
recordkeeper for the Crossover Options. If the exercise of Crossover Options is made pursuant to a broker-assisted cashless exercise through the recordkeeper in accordance with the regulations of the Federal Reserve Board, then immediately after
such exercise, the recordkeeper shall sell the number of shares necessary to remit the following payments (which may be all the shares): (i) to the issuer of the option, the exercise price; and (ii) to the employer of the option holder, the
employee’s share of income and payroll taxes. The recordkeeper shall thereafter remit to the option holder (i) the balance of the proceeds from the sale of all shares or (ii) the remaining whole shares and cash for any fractional shares, as
applicable. 
  
 SECTION 7.3. COOPERATION. 
  
 PC Mall and eCOST agree to act (or to take such action) with respect to such
Tax deductions, and with respect to fulfilling the payroll Tax, withholding Tax and information reporting obligations, consistent with Sections 7.1 and 7.2 above, as are reasonably necessary or appropriate to achieve, maintain and/or preserve such
tax results. 
  

 19 

 ARTICLE VIII 
 TAX AUDITS, TRANSACTIONS AND OTHER MATTERS 
  
 SECTION 8.1. TAX AUDITS AND CONTROVERSIES. 
  
 (a) In General. Except as otherwise provided in this Agreement, the Party responsible for filing a Tax Return pursuant to Section 2 of this Agreement (the “Filing Party”) shall have the exclusive right, in its sole
discretion, to control, contest, and represent the interests of the PC Mall Group and eCOST in any Audit relating to such Tax Return and to resolve, settle or agree to any deficiency, claim or Adjustment proposed, asserted or assessed in connection
with or as a result of any such Audit. The Filing Party’s rights shall extend to any matter pertaining to the management and control of an Audit, including execution of waivers, choice of forum, scheduling of conferences and the resolution of
any Tax Item. Any costs incurred in handling, settling, or contesting an Audit shall be borne by the Filing Party. 
  
 (b) Participation of Non-Filing Party. Except as otherwise provided in this Agreement, the Non-Filing Party shall have the right to assume control
over decisions to resolve, settle or otherwise agree to any deficiency, claim or Adjustment with respect to any Sole Responsibility Item for which the Non-Filing Party’s responsibility under this Agreement could exceed ten thousand dollars
($10,000); provided, that the Non-Filing Party acknowledges in writing that it has sole liability, as between the Filing Party and the Non-Filing Party, for such deficiency, claim or Adjustment. The Filing Party shall not settle any Audit
they control concerning a Tax Item on a basis that would materially adversely affect the Non-Filing Party without obtaining such Non-Filing Party’s consent, which consent shall not be unreasonably withheld if failure to consent would adversely
affect the Filing Party. 
  
 (c) Notice. Within ten (10)
days after a Party receives a written notice from a Governmental Authority of a proposed Adjustment to a Tax Item (irrespective of whether such proposed Adjustment would reasonably be expected to give rise to an indemnification obligation or other
liability (including a liability for Tax) under this Agreement), such Party shall notify the other Party of such proposed Adjustment, and thereafter shall promptly forward to the other Party copies of notices and communications with any Governmental
Authority relating to such proposed Adjustment; provided, however, that the failure to provide such notice shall not release the indemnifying Party from any of its obligations under this Agreement except to the extent that such
indemnifying Party is materially prejudiced by such failure. 
  
 SECTION 8.2.
ASSISTANCE AND COOPERATION; RELIANCE. 
  
 (a) After the
Offering, the Parties shall cooperate (and cause their respective Affiliates to cooperate) with each other and with each other’s agents, including accounting firms and legal counsel, in connection with Tax matters relating to the Parties and
their Affiliates including: (i) preparation and filing of Tax Returns, (ii) determining the liability for and amount of any Taxes due (including estimated Taxes) or the right to and amount of any refund of Taxes; (iii) examinations of Tax Returns;
and (iv) any administrative or judicial proceeding in respect of Taxes assessed or proposed to be assessed. Such cooperation shall include making all information and documents in their possession relating to the other Party and its Affiliates
reasonably available to such other Party as provided in Section 8.3. Each of the Parties shall also 

  

 20 

 
make available to the other, as reasonably requested and available, personnel (including officers, directors, employees and agents of the Parties or their
respective Affiliates) responsible for preparing, maintaining, and interpreting information and documents relevant to Taxes, and personnel reasonably required as witnesses or for purposes of providing information or documents in connection with any
administrative or judicial proceedings relating to Taxes. 
  
 (b)
Any information or documents provided under this Section 8.2 shall be kept confidential by the Party receiving the information or documents as provided in Section 8.5, except as may otherwise be necessary in connection with the filing of Tax Returns
or in connection with any administrative or judicial proceedings relating to Taxes. Notwithstanding any other provision of this Agreement or any other agreement to the contrary, (i) neither PC Mall nor any Affiliate of PC Mall shall be required to
provide eCOST, any Affiliate of eCOST or any other Person access to or copies of any information or procedures other than information or procedures that relate solely to eCOST, an Affiliate of eCOST or the business or assets of eCOST or any
Affiliate of eCOST and (ii) in no event shall PC Mall or any Affiliate of PC Mall be required to provide eCOST, any Affiliate of eCOST or any other Person access to or copies of any information if such action could reasonably be expected to result
in the waiver of any privilege. In addition, in the event that PC Mall determines that the provision of any information to eCOST or any Affiliate of eCOST could be commercially detrimental, violate any law or agreement or waive any privilege, the
Parties shall use commercially reasonable efforts to permit compliance with its obligations under this Section 8.2 in a manner that avoids any such harm or consequence. 
  
 (c) eCOST and PC Mall acknowledge that time is of the essence in relation to any request for information, assistance or
cooperation made by PC Mall or eCOST pursuant to Section 8.2(a) or (b), or this Section 8.2(c). eCOST and PC Mall acknowledge that failure to conform to the deadlines set forth herein or reasonable deadlines otherwise set by PC Mall or eCOST could
cause irreparable harm. 
  
 (d) Each Party shall provide to the
other Party information and documents relating to its respective Affiliates required by the other Party to prepare Tax Returns. Any information or documents the Filing Party requires to prepare such Tax Returns shall be provided in such time and
form as is reasonably required and necessary for the Filing Party to file such Tax Returns on a timely basis. 
  
 (e) In the event that eCOST fails to provide any information requested by PC Mall pursuant to this Section 8.2, within the deadlines as set forth herein
(or otherwise reasonably set by PC Mall and agreed to by eCOST, such agreement not to be unreasonably withheld), PC Mall shall have the right to engage a nationally recognized public accounting firm of its choice (the “Accountant”),
in its sole and absolute discretion, to gather such information directly from eCOST or any Affiliate of eCOST. eCOST and its Affiliates agree, upon ten business days’ notice by PC Mall, in the case of a failure by eCOST to provide information
pursuant to this Section 8.2, to permit any such Accountant full access to all records or other information requested by such Accountant that are in the possession of eCOST or any Affiliate of eCOST during reasonable business hours. eCOST agrees to
promptly pay PC Mall all reasonable costs and expenses incurred by PC Mall in connection with the engagement of such Accountant. 
  

 21 

 (f) If eCOST or any of its Affiliates supplies information to PC Mall or any of its Affiliates in
connection with a Tax liability and an officer of PC Mall or any of its Affiliates signs a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then upon the written request of PC Mall or such
Affiliate of PC Mall identifying the information being so relied upon, the chief financial officer of eCOST (or any officer of eCOST as designated by the chief financial officer of eCOST) shall certify in writing that to his or her knowledge (based
upon consultation with appropriate employees) the information so supplied is accurate and complete. eCOST agrees to indemnify and hold harmless PC Mall, its Affiliates, and their directors, officers and employees from and against any fine, penalty,
or other cost or expense of any kind attributable to eCOST or any of its Affiliates having supplied, pursuant to this Section 8, PC Mall or any of its Affiliates with inaccurate or incomplete information in connection with a Tax liability.

  
 (g) If PC Mall or any of its Affiliates supplies information
to eCOST or any of its Affiliates in connection with a Tax liability and an officer of eCOST or any of its Affiliates signs a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then upon the
written request of eCOST or such Affiliate of eCOST identifying the information being so relied upon, the chief financial officer of PC Mall (or any officer of PC Mall as designated by the chief financial officer of PC Mall) shall certify in writing
that to his or her knowledge (based upon consultation with appropriate employees) the information so supplied is accurate and complete. PC Mall agrees to indemnify and hold harmless eCOST, its Affiliates, and their directors, officers and employees
from and against any fine, penalty, or other cost or expense of any kind attributable to PC Mall or any of its Affiliates having supplied, pursuant to this Section 8, eCOST or any of its Affiliates with inaccurate or incomplete information in
connection with a Tax liability. 
  
 SECTION 8.3. RETENTION OF RECORDS; ACCESS.

  
 Beginning on the Distribution Date, PC Mall and eCOST
shall, and shall cause each of their Affiliates to: 
  
 (a) retain
adequate records, documents, accounting data and other information (including computer data) necessary for the preparation and filing of all Tax Returns required to be filed by PC Mall and its Affiliates and for any Audits and litigation relating to
such Tax Returns or to any Taxes payable by PC Mall or its Affiliates; and 
  
 (b) give to the other Party reasonable access to such records, documents, accounting data and other information (including computer data) and to its personnel and premises for the purpose of the review or Audit of
such reports or returns to the extent relevant to an obligation or liability of a Party under this Agreement and in accordance with the provisions of Article IX of the Distribution Agreement. 
  
 (c) The obligations set forth in Sections 8.3(a) and 8.3(b) hereof shall
continue until the final conclusion of any Audit or litigation to which the records and information relate or until expiration of all applicable statutes of limitations, whichever is longer. 
  

 22 

 SECTION 8.4. DISPUTE RESOLUTION. 
  
 Any dispute or claim arising out of, in connection with, or in relation to the interpretation, performance, nonperformance,
validity or breach of this Agreement or otherwise arising out of, or in any way related to this Agreement, shall be resolved in the manner set forth in Article X of the Distribution Agreement. 
  
 SECTION 8.5. CONFIDENTIALITY; OWNERSHIP OF INFORMATION; PRIVILEGED INFORMATION.

  
 The provisions of Article IX of the Distribution
Agreement relating to confidentiality of information, ownership of information, privileged information and related matters shall apply with equal force to any records and information prepared and/or shared by and between the Parties in carrying out
the intent of this Agreement. 
  
 ARTICLE IX 
 MISCELLANEOUS 
  
 SECTION 9.1. COMPLETE AGREEMENT; CONSTRUCTION. 
  
 This Agreement, the Distribution Agreement, including the exhibits and schedules, shall constitute the entire agreement between the Parties with respect
to the subject matter hereof and thereof, and shall supersede all previous negotiations, commitments and writings with respect to such subject matter. In the event of any inconsistency between this Agreement and any Schedule hereto, the Schedule
shall prevail. 
  
 SECTION 9.2. COUNTERPARTS. 
  
 This Agreement may be executed in one or more counterparts, all of which
shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the Parties and delivered to the other Party. 
  
 SECTION 9.3. SURVIVAL OF AGREEMENTS. 
  
 Except as otherwise provided by this Agreement, all covenants and agreements of the Parties contained in this Agreement shall survive the Distribution
Date. 
  
 SECTION 9.4. EXPENSES. 
  
 Except as otherwise set forth in this Agreement, all costs and expenses in
connection with the preparation, execution, delivery and required implementation of this Agreement shall be charged to and paid by the Parties in accordance with Section 13.9 of the Distribution Agreement. 
  
 SECTION 9.5. NOTICES. 
  
 All notices and other communications hereunder shall be in writing and hand delivered or mailed by registered or certified
mail (return receipt requested) or sent by any means of 

  

 23 

 
electronic message transmission with delivery confirmed (by voice or otherwise) to the Parties at the following addresses (or at such other addresses for a
Party as shall be specified by like notice) and will be deemed given on the date on which such notice is received: 
  

	 	(i)	if to PC Mall, to: 

  
 PC Mall, Inc. 
 2555 West 190th Street, Suite 201 
 Torrance, CA 90504 
 Telecopy: (310) 353-7435 
 Attn: Chief Financial Officer 
  
 With a copy to: 
  
 PC Mall, Inc. 
 2555 West 190th
Street, Suite 201 
 Torrance, CA 90504 
 Telecopy: (310) 630-3992 
 Attn: General Counsel 
  

	 	(ii)	if to eCOST, to: 

  
 eCOST.com, Inc. 
 2555 West 190th Street, Suite 106 
 Torrance, CA 90504 
 Telecopy: (310) 630-3578 
 Attn: Chief Executive Officer 
  
 SECTION 9.6.
WAIVERS. 
  
 The failure of any Party to require strict
performance by any other Party of any provision in this Agreement will not waive or diminish that Party’s right to demand strict performance thereafter of that or any other provision hereof. 
  
 SECTION 9.7. AMENDMENTS. 
  
 Subject to the terms of Section 9.9 hereof, this Agreement may not be
modified or amended except by an agreement in writing signed by each of the Parties hereto. 
  
 SECTION 9.8. ASSIGNMENT. 
  
 This Agreement shall not be assignable, in whole or in part, directly or indirectly, by any Party hereto without the prior written consent of the other Party hereto, and any attempt to assign any rights or obligations arising under this
Agreement without such consent shall be void. 
  

 24 

 SECTION 9.9. SUCCESSORS AND ASSIGNS. 
  
 The provisions to this Agreement shall be binding upon, inure to the benefit of and be enforceable by the Parties and their
respective successors and permitted assigns. 
  
 SECTION 9.10. TERMINATION.

  
 This Agreement may be terminated at any time prior to the
Effective Date by and in the sole discretion of PC Mall as provided in Section 12.2 of the Distribution Agreement. In the event of such termination, neither Party shall have any liability of any kind to the Party or any other person. After the
Distribution, this Agreement may not be terminated except by an agreement in writing signed by each of the Parties hereto. 
  
 SECTION 9.11. AFFILIATES. 
  
 Each of the Parties hereto shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth herein
to be performed by any Affiliates of such Party or by any entity that is contemplated to be an Affiliate of such Party on and after the Distribution Date. For the sake of clarity, eCOST and any of its Affiliates shall not be deemed to be an
Affiliate of PC Mall under this Section 9.11. 
  
 SECTION 9.12. THIRD PARTY
BENEFICIARIES. 
  
 This Agreement is solely for the benefit
of the Parties hereto and their respective Affiliates and should not be deemed to confer upon third parties any remedy, claim, liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement.

  
 SECTION 9.13. TITLE AND HEADINGS. 
  
 Titles and headings to sections herein are inserted for the convenience of
reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 
  
 SECTION 9.14. EXHIBITS AND SCHEDULES. 
  
 The Exhibits and Schedules shall be construed with and as an integral part of this Agreement to the same extent as if the same had been set forth verbatim
herein. 
  
 SECTION 9.15. GOVERNING LAW. 
  
 THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF CALIFORNIA.  
  
 SECTION 9.16. CONSENT TO JURISDICTION. 
  
 Without limiting the provisions of Section 8.4 hereof, each of the parties irrevocably submits to the exclusive jurisdiction of (a) the Superior Court of
the State of California, Los 

  

 25 

 
Angeles County, and (b) the United States District Court for the Central District of California, for the purposes of any suit, action or other proceeding
arising out of this Agreement or any transaction contemplated hereby. Each of the parties agrees to commence any action, suit or proceeding relating hereto either in the United States District Court for the Central District of California or if such
suit, action or other proceeding may not be brought in such court for jurisdictional reasons, in the Superior Court of the State of California, Los Angeles County. Each of the parties further agrees that service of any process, summons, notice or
document by U.S. registered mail to such party’s respective address set forth above shall be effective service of process for any action, suit or proceeding in California with respect to any matters to which it has submitted to jurisdiction in
this Section 9.16. Each of the parties irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby in (i) Superior Court of the
State of California, Los Angeles County, or (ii) the United States District Court for the Central District of California, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such
action, suit or proceeding brought in any such court has been brought in an inconvenient forum. 
  
 SECTION 9.17. SEVERABILITY. 
  
 In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein
shall not in any way be affected or impaired thereby. The Parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to
that of the invalid, illegal or unenforceable provisions. 
  
 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first above written. 
  

			
	 PC MALL, INC.,
 a Delaware
Corporation

		
	By:	 	/s/    THEODORE R.
SANDERS        
	 Name:
	 	Theodore R. Sanders
	 Title:
	 	Chief Financial Officer
	
	 eCOST.COM, INC.,
 a Delaware
Corporation

		
	By:	 	/s/    ADAM SHAFFER        
	 Name:
	 	Adam Shaffer
	 Title:
	 	Chief Executive Officer

  

 26Employee Benefit Matters Agreement dated Sept. 1, 2004

 EXHIBIT 10.58 
  
 EMPLOYEE BENEFIT MATTERS AGREEMENT 
  
 THIS EMPLOYEE BENEFIT MATTERS AGREEMENT (this “Agreement”) is entered into on September 1, 2004, by and
between PC Mall, Inc., a Delaware corporation (“PC Mall”), and eCost.com, Inc., a Delaware corporation (“eCost”). 
  
 RECITALS 
  
 WHEREAS, eCost is currently a wholly-owned subsidiary of PC Mall; 
  

WHEREAS, eCost is considering an initial public offering of its Common Stock (“IPO”); and 
  
 WHEREAS, in furtherance of the foregoing, PC Mall and eCost desire to enter
into this Agreement to allocate between them assets, liabilities and responsibilities with respect to certain employee compensation, benefit plans and programs, and certain employment matters. 
  
 NOW, THEREFORE, in consideration of the foregoing and the covenants and
agreements set forth below, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 The following terms, as used herein, shall have the following meanings:

  
 “Adjusted Option” shall have the meaning set forth
in Section 5.1(a) of this Agreement. 
  
 “Administrative
Services Agreement” shall have the meaning set forth in Article I of the Master Separation and Distribution Agreement. 
  
 “Affiliate” shall mean, when used with respect to a Person, another Person that controls, is controlled by, or is under common control (within
the meaning of Section 414(b), (c), (m) or (o) of the Code) with the Person specified. 
  
 “Ancillary Agreements” shall have the meaning set forth in Article I of the Master Separation and Distribution Agreement. 
  
 “Board of Directors” shall mean, when used with respect to a specified corporation, the board of directors of the
corporation so specified. 
  
 “COBRA” shall mean the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and the regulations promulgated thereunder, including any successor legislation. 
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder, including any successor
legislation. 
  

 “Distribution Date” shall mean the date on which PC Mall’s interest in eCost shall be
distributed, as further defined in the Master Separation and Distribution Agreement. 
  
 “Distribution Ratio” shall have the meaning set forth in Section 5.1(a) of this Agreement. 
  
 “eCost” shall have the meaning set forth in the recitals hereto. 
  
 “eCost Adjusted Exercise Price to Market Price Ratio” shall have the meaning set forth on Schedule 5.1(b) of this
Agreement. 
  
 “eCost Employees” shall mean persons who
are employed by eCost (including persons who would otherwise be deemed to be eCost Employees who are absent from work by reason of disability or leave of absence and inactive employees treated as such by agreement therewith). 
  
 “eCost Employment Liabilities” shall have the meaning set forth in
Section 7.1(c) of this Agreement. 
  
 “eCost Flex Plan”
shall have the meaning set forth in Section 4.2 of this Agreement. 
  
 “eCost Option” shall have the meaning set forth in Section 5.1(a) of this Agreement. 
  
 “eCost Option Plans” shall mean that certain eCost 1999 Stock Incentive Plan and that certain eCost 2004 Stock Incentive Plan. 
  
 “eCost Savings Plan” shall have the meaning set forth in Section
3.2(a) of this Agreement. 
  
 “eCost Welfare Plan” shall
have the meaning set forth in Section 4.1 of this Agreement. 
  
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder, including any successor legislation. 
  
 “Group Status Change” shall mean the cessation of PC Mall’s ownership of at least eighty percent (80%) of the
combined voting power of all classes of stock entitled to vote or the total value of all shares of all classes of stock of eCost then outstanding. PC Mall’s ownership of outstanding eCost stock shall be determined pursuant to Sections 414 and
1563 of the Code. 
  
 “Group Status Change Date” shall
mean the earlier of (i) the Distribution Date or (ii) the date on which the Group Status Change occurs, or such other date as PC Mall and eCost shall mutually agree upon. 
  

 2 

 “Master Separation and Distribution Agreement” shall mean that certain Master Separation and
Distribution Agreement, by and between PC Mall and eCost, of even date herewith. 
  
 “Offering Date” shall mean the date on which the IPO closes. 
  
 “PC Mall” shall have the meaning set forth in the recitals hereto. 
  
 “PC Mall Adjusted Exercise Price to Market Price Ratio” shall have the meaning set forth on Schedule 5.1(b) of
this Agreement. 
  
 “PC Mall Adjusted Option” shall have
the meaning set forth in Section 5.1(a) of this Agreement. 
  
 “PC Mall Employees” shall mean persons who, immediately prior to the Group Status Change Date are employed by the PC Mall Group (including persons who would otherwise be deemed to be PC Mall Employees who are absent from work by
reason of disability or leave of absence and inactive employees treated as such by agreement therewith). 
  
 “PC Mall Group” shall mean PC Mall, together with all its wholly-owned subsidiaries, excluding eCost. 
  
 “PC Mall Option Number” shall have the meaning set forth in Section
5.1(a) of this Agreement. 
  
 “PC Mall Retained
Employees” shall mean persons who, immediately after the Group Status Change Date, are employed by the PC Mall Group (including persons who would otherwise be deemed to be PC Mall Retained Employees who are absent from work by reason of
disability or leave of absence and inactive employees treated as such by agreement therewith) but shall not include any persons who are or become eCost Employees on or after such date. 
  
 “PC Mall Welfare Plan” shall mean the “PC Mall, Inc. Welfare Benefits Plan” as in effect from time to
time. 
  
 “PC Mall Savings Plan” shall mean the
“Creative Computers, Inc. 401(k) Plan,” as in effect from time to time. 
  
 “PC Mall Stock Option” shall mean any option to purchase PC Mall common stock. 
  
 “PC Mall Stock Option Plans” shall mean that certain PC Mall Amended and Restated 1994 Stock Incentive Plan, as amended, and that certain PC
Mall Amended and Restated Directors’ Non-Qualified Stock Option Plan. 
  
 “Person” shall mean an individual, a general or limited partnership, a corporation, a trust, a joint venture, an unincorporated organization, a limited liability entity, any other 

  

 3 

 
entity, and any federal, state, local, foreign or international court, government, department, commission, board, bureau, agency, official or other
regulatory, administrative or governmental authority. 
  
 “Plan(s)” shall mean any “employee benefit plans” (within the meaning of Section 3(3) of ERISA), retirement, pension, savings, profit-sharing, welfare, stock purchase, stock option, equity-based, severance, employment,
change-in-control, fringe benefit, bonus, incentive, deferred compensation, disability, worker’s compensation and all other employee benefit plans, agreements, programs, policies or other arrangements (including any funding mechanisms
therefor), whether or not subject to ERISA, whether formal or informal, oral or written, legally binding or not. 
  
 “Plan Transfer Date” shall have the meaning set forth in Section 3.2(b) of this Agreement. 
  
 “Pre-Distribution Exercise Price to Market Price Ratio” shall have
the meaning set forth on Schedule 5.1(b) of this Agreement. 
  
 “Securities Act” shall mean the Securities Act of 1933, as amended. 
  
 “Tax Allocation and Indemnification Agreement” shall mean that certain Tax Allocation and Indemnification Agreement, by and between PC Mall and eCost, of even date herewith. 
  
 “Welfare Benefit Plan” shall mean, any Plan providing welfare
benefits within the meaning of Section 3(1) of ERISA. 
  
 Except
as otherwise expressly provided herein, all capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Master Separation and Distribution Agreement. 
  
 ARTICLE II 
  
 PRE-STATUS CHANGE PLAN PARTICIPATION 
  
 2.1 Continuing Participation in PC Mall Plans. Except as specified
otherwise in this Agreement, or as PC Mall may otherwise direct, eCost shall continue as a “participating company” in the PC Mall Plans in effect as of the Offering Date, to the extent that eCost has not yet established comparable Plans of
its own. 
  
 2.2 PC Mall’s General Obligations as Plan
Sponsor. The PC Mall Group shall continue to administer, or cause to be administered, in accordance with their terms and applicable law, such PC Mall Plans, and shall have the sole and absolute discretion and authority to modify and interpret
such Plans, as set forth therein. 
  
 2.3 eCost’s General
Obligations as Participating Company. eCost shall perform with respect to its participation in the PC Mall Plans, the duties of a participating company as set forth in each such Plan or any procedures adopted 

  

 4 

 
pursuant thereto, including (without limitation): (i) assisting in the administration of claims, to the extent requested by the claims administrator of the
applicable Plan; (ii) prompt payment of its allocable share expenses and costs relating to its participation; (iii) cooperating fully with Plan auditors, benefit personnel and benefit vendors; (iv) preserving the confidentiality of all financial
arrangements the PC Mall Group has or may have with any vendors, claims administrators, trustees or any other entity or individual with whom the PC Mall Group has entered into an agreement relating to such Plans; and (v) preserving the
confidentiality of participant information to the extent not specified otherwise in this Agreement. 
  
 2.4 Termination of Participating Company Status. Except as otherwise may be specified by PC Mall, effective as of the Group Status Change Date or
such other date as eCost establishes a comparable Plan (as specified in Section 3.2 or otherwise in this Agreement), eCost shall automatically cease to be a Participating Company in the corresponding PC Mall Plan. 
  
 2.5 Terms of Participation for eCost Plans. 
  
 (a) Non-Duplication of Benefits. As of the Group
Status Change Date or such later date that applies to the particular eCost Plan established thereafter, the eCost Plans shall be, with respect to eCost Employees, in all respects the successors in interest to, and shall not provide benefits that
duplicate benefits provided by, the corresponding PC Mall Plans. PC Mall and eCost shall mutually agree, if necessary, on methods and procedures, including amending the respective Plan documents, to prevent eCost Employees from receiving duplicate
benefits from the PC Mall Plans and the eCost Plans. 
  
 (b) Service Credit. Except as specified otherwise in this Agreement, with respect to eCost Employees, each eCost Plan shall provide that all service, all compensation and all other benefit-affecting determinations that, as of the
Group Status Change Date, were recognized under the corresponding PC Mall Plan shall, as of the Group Status Change Date, receive full recognition and credit and be taken into account under such eCost Plan to the same extent as if such items
occurred under such eCost Plan, except to the extent that duplication of benefits would result. The service crediting provisions shall be subject to any respectively applicable “break in service,” “employment date,” or
“eligibility date” rules under the eCost Plans and the PC Mall Plans. 
  
 2.6 Right to Amend or Terminate. Except as specifically provided herein, nothing in this Agreement shall be construed or interpreted to restrict PC Mall’s right or authority to amend or terminate the PC
Mall Plans at any time it deems necessary or appropriate. 
  
 2.7
Access to Information. The PC Mall Group and eCost shall share, or cause to be shared, all participant information that is necessary or appropriate for the efficient and accurate administration of each of the PC Mall Plans and eCost Plans
during the respective periods applicable to such Plans as PC Mall and eCost may mutually agree. The PC Mall Group, eCost and their respective authorized agents shall, 

  

 5 

 
subject to applicable laws of confidentiality and data protection, be given reasonable and timely access to, and may make copies of, all information relating
to the subjects of this Agreement in the custody of the other party or its agents, to the extent necessary or appropriate for such administration. 
  
 ARTICLE III 
  
 SAVINGS PLANS 
  
 3.1 PC Mall Savings Plan. From and after the Group Status Change Date, PC Mall shall continue to sponsor the PC Mall Savings Plan for the benefit of PC Mall Retained Employees who, prior to such date, were
participants thereunder. Active participation of all eCost Employees in the PC Mall Savings Plan shall cease immediately prior to the Group Status Change Date, and the trustee of such plan shall not accept or permit further contributions made by or
on behalf of the eCost Employees, other than contributions that accrued prior to the Group Status Change Date. Except as may be required by Section 411(d)(3) of the Code or other applicable law, nothing contained in this Article 3 shall have the
effect of accelerating the degree to which any individual has a vested interest in the PC Mall Savings Plan or the eCost Savings Plan. 
  
 3.2 eCost Savings Plan. 
  
 (a) Effective as of the Group Status Change Date, eCost shall adopt a defined contribution plan that is intended to qualify under Sections
401(a) and 40l(k) of the Code (the “eCost Savings Plan”), under which retirement benefits shall generally be provided for eCost Employees. Subject to such adoption, eCost agrees to use its reasonable best efforts to cause the applicable
fiduciaries of the eCost Savings Plan to accept a transfer of assets and liabilities from the PC Mall Savings Plan, in accordance with the spin-off provisions set forth under Section 414(l) of the Code and other applicable law, representing the full
account balances of eCost Employees for all periods of participation in the PC Mall Savings Plan through the Group Status Change Date (including all contributions and all earnings attributable thereto). 
  
 (b) Prior to the date on which the transfer of assets and
liabilities to the eCost Savings Plan may occur (the “Plan Transfer Date”), which date shall occur as promptly as practicable following the Group Status Change Date and be subject to the fiduciaries of the eCost Savings Plan
accepting a transfer of assets and liabilities under Section 3.2(a), PC Mall shall (i) cause the trustee of the PC Mall Savings Plan to segregate, in accordance with the spin-off provisions set forth under Section 414(l) of the Code and other
applicable law, the assets of the PC Mall Savings Plan representing the full account balances of eCost Employees for all periods of participation in the PC Mall Savings Plan through the Group Status Change Date (including all contributions and all
earnings attributable thereto); (ii) make all required filings and submissions to the appropriate governmental agencies; and (iii) make all required amendments to the PC Mall Savings Plan and related trust agreement necessary to provide for the
segregation of assets described in this Section 3.2(b). 
  

 6 

 (c) On the Plan Transfer Date, PC Mall shall cause the trustee of the PC Mall Savings
Plan to transfer to the trustee of the eCost Savings Plan the account balances (inclusive of outstanding participant loans) of any participating eCost Employees, as determined under Section 3.2(b). Such transfer shall be “in kind,” based
on those investment funds in which such account balances are then invested or in such other form as PC Mall and eCost may mutually agree; provided, however, that any participant loans to eCost Employees shall be transferred in the form of notes. In
consideration of the segregation and transfer of assets described herein, the eCost Savings Plan shall, as of the Plan Transfer Date, assume all liabilities attributable to such assets. Upon the full completion of the transfer described herein, the
PC Mall Group and the PC Mall Savings Plan shall be relieved of, and eCost and the eCost Savings Plan shall assume, all liabilities for the payment of any account balances transferred from the PC Mall Savings Plan to the eCost Savings Plan.

  
 3.3 Outstanding Participant Loans. Subject to the
fiduciaries of the eCost Savings Plan accepting a transfer of assets and liabilities under Section 3.2(c), with respect to any eCost Employees who have outstanding plan loans originally made from the eCost Savings Plan, such Employees shall be
permitted to repay such loans to the eCost Savings Plan by way of regular deductions from their paychecks, and, prior to the Plan Transfer Date, the PC Mall Group or eCost (as the case may be) shall cause all such deductions to be forwarded to the
PC Mall Savings Plan as promptly as practicable. From and after the Plan Transfer Date, all plan loan repayments made by eCost Employees shall be remitted exclusively to the eCost Savings Plan but only to the extent such plan loans are transferred
to the eCost Savings Plan. Unless expressly contemplated by this Agreement, in no event will the transactions contemplated by this Agreement alter the terms of the applicable notes or the loan provisions of the eCost Savings Plan or the PC Mall
Savings Plan. 
  
 3.4 Allocation of Liabilities. From and
after the Group Status Change Date, the eCost Savings Plan shall assume all liabilities relating to the payment of benefits to eCost Employees in the PC Mall Savings Plan. The PC Mall Group shall retain all other liabilities relating to the PC Mall
Savings Plan. 
  
 ARTICLE IV 
  
 WELFARE PLANS 
  
 4.1 Transition for Welfare Plan Participation. From and after the
Group Status Change Date, the PC Mall Group shall continue to maintain the PC Mall Welfare Plan for the PC Mall Retained Employees who, prior to such date, were receiving benefits under such plan. Active participation of all eCost Employees in the
PC Mall Welfare Plan shall cease as of 11:59 p.m. Pacific Time on the earlier of: (a) the day immediately preceding the Group Status Change Date; or (b) the 90th day following PC Mall’s notification to eCost that the eCost Employees will no
longer be eligible to participate in the PC Mall Welfare Plan. From and after such time, eCost shall adopt and maintain the eCost Welfare Plan for the benefit of eCost Employees. 

  

 7 

 
Notwithstanding the foregoing, neither PC Mall nor eCost shall have any obligation to sponsor any specific Welfare Plan prior to or after the Group Status
Change Date. 
  
 4.2 Adoption of eCost Flex Plan. Effective
as of the Group Status Change Date, eCost shall adopt a “flexible benefit plan” under Section 125 of the Code for the benefit of the eCost Employees (the “eCost Flex Plan”), the material terms of which plan shall be substantially
similar to those set forth in the “flexible benefits” component of the PC Mall Welfare Plan. As provided in Section 4.1 above, active participation of all eCost Employees in the flexible benefits component of the PC Mall Welfare Plan shall
cease immediately prior to the Group Status Change Date, and such plan shall not accept further contributions made by or on behalf of the eCost Employees, other than contributions that accrued prior to the Group Status Change Date. With respect to
amounts deferred into the PC Mall Welfare Plan by eCost Employees prior to the Group Status Change Date, such amounts shall remain available for reimbursement of qualified medical and dependent care expenses incurred prior to the Group Status Change
for a period of time to be mutually agreed upon by PC Mall and eCost (the “Run-out Period”). Any claims relating to expenses incurred prior to the Group Status Change Date that are not submitted to administrator for the PC Mall
Welfare Plan prior to the end of the Run-out Period shall not be eligible for reimbursement. Any amounts deferred by eCost Employees under the PC Mall Welfare Plan that are not paid out in connection with claims submitted prior to the end of the
Run-out Period shall be forfeited. Reimbursement for medical and dependent care expenses incurred after the Group Status Change Date shall be subject to the terms of the eCost Code Flex Plan. 
  
 4.3 Continuance of Elections, Co-Payments and Maximum Benefits.

  
 (a) As of the Group Status Change Date, eCost
shall cause the eCost Welfare Plans to maintain comparable coverage and contribution elections made by eCost Employees under the PC Welfare Plan and apply such elections under the eCost Welfare Plans for the remainder of the period or periods for
which such elections are by their terms applicable. The transfer or other movement of employment between the PC Mall Group and eCost at any time upon or before the Group Status Change Date shall constitute neither a “change in status
event” under the PC Mall Welfare Plan or the eCost Welfare Plans nor a “qualifying event,” as defined under COBRA. 
  
 (b) On and after the Group Status Change Date, eCost shall cause the eCost Welfare Plans to recognize and give credit for (i) all amounts
applied to deductibles, out-of-pocket maximums, co-payments and other applicable benefit coverage limits with respect to which such expenses have been incurred by eCost Employees under the PC Mall Welfare Plan for the remainder of the calendar year
in which the Group Status Change Date occurs, and (ii) all benefits paid to eCost Employees under the PC Mall Welfare Plan for purposes of determining when such persons have reached their lifetime maximum benefits under the eCost Welfare Plan.
Notwithstanding the above, eCost’s obligations under this SubSection 4.3(b) shall be limited by the market availability of health insurance products or other arrangements satisfying the criteria described above. eCost shall use its commercially
reasonable best 

  

 8 

 
efforts to locate and engage the services of a vendor whose policies or other arrangements meet the requirements above. 
  
 4.4 Allocation of Liabilities. 
  
 (a) Except to the extent welfare benefits are funded by
employee contributions or as otherwise provided in this Agreement, the PC Mall Group shall retain responsibility for and continue to pay all premiums, expenses and benefits relating to the PC Mall Welfare Plan with respect to claims incurred or
premiums due prior to the Group Status Change Date by PC Mall Employees (including eCost Employees participating in the PC Mall Welfare Plan prior to such date) as well as their covered dependents. 
  
 (b) Except to the extent welfare benefits are funded by
employee contributions or as otherwise provided in this Agreement, eCost shall assume responsibility for and pay all premiums, expenses and benefits relating to the eCost Welfare Plan with respect to claims incurred or premiums due from and after
the Group Status Change Date by eCost Employees as well as their covered dependents. 
  
 (c) For the purposes of this Section 4.4, a claim is deemed incurred when the services that are the subject of the claim are performed; in
the case of life insurance, when the death occurs; in the case of long-term disability, when the disability occurs; and, in the case of a hospital stay, when the employee first enters the hospital. 
  
 (d) The eCost Welfare Plan shall be responsible for making
COBRA continuation coverage available with respect to the eCost Employees (and their covered dependents) subsequent to the Group Status Change Date. 
  
 ARTICLE V 
  
 EQUITY COMPENSATION 
  
 5.1 PC Mall Stock Options. PC Mall Stock Options shall be treated as follows: 
  
 (a) As of the Distribution Date, each PC Mall Stock Option outstanding as of the Distribution Record Date and not exercised prior to the
Distribution Date shall be adjusted as set forth in this Section 5.1. Each PC Mall Stock Option shall be converted (an “Adjusted Option”), as of the Distribution Date, into two options: an option (the “PC Mall Adjusted
Option”) to purchase the same number of shares of PC Mall Common Stock covered by the PC Mall Stock Option and as to which the PC Mall Stock Option has not been exercised as of the Distribution Date (“PC Mall Option Number”)
and an option (the “eCost Option”) to purchase a number of shares of eCost Common Stock equal to the PC Mall Stock Option Number times a fraction, the numerator of which is the total number of shares of eCost Common Stock
distributed to PC Mall stockholders in the Distribution and the denominator of which is the total number of shares of PC Mall Common Stock outstanding on Distribution Record Date (the “Distribution Ratio”). The terms of the PC Mall
Adjusted Option and the eCost 

  

 9 

 
Option (other than the exercise price and the number of shares) shall be substantially the same as the PC Mall Stock Option. 
  
 (b) The exercise prices per share for each PC Mall Adjusted
Option and the eCost Option shall be established, as set forth in Schedule 5.1(b) hereto, in a manner so that: (i) the aggregate “intrinsic value” (i.e. the market value of the stock underlying the option, less the exercise price of such
option, multiplied by the number of shares then covered by such option) after the Distribution of the PC Mall Adjusted Option plus the eCost Option is not greater than the intrinsic value of the related PC Mall Stock Option immediately prior to the
Distribution, and (ii) the ratio of the exercise price per option to the market value per share after the Distribution is not lower than the ratio of the exercise price of the PC Mall Stock Option to the market value per share of PC Mall Common
Stock immediately prior to the Distribution. The determination of the exercise prices for each PC Mall Adjusted Option and eCost Option shall be made by PC Mall as advised by its professional advisors. 
  
 (c) The eCost Options to be granted with respect to each
Adjusted Option shall be issued under the eCost 2004 Stock Incentive Plan, and eCost shall take all corporate action and make all required filings under applicable state blue sky laws and the Securities Act to (i) issue the eCost Options required
under this Section 5.1 and (ii) to register or qualify the eCost Options and/or the underlying shares of eCost Common Stock so that the shares of eCost Common Stock acquired upon exercise of each eCost Option are freely tradable under the Securities
Act (except for shares acquired by Affiliates of eCost) and each applicable state’s blue sky laws. 
  
 (d) The Board of Directors of PC Mall may determine that certain PC Mall Stock Options described above may not be adjusted as described
above, but instead shall be subject to such conditions as the Board of Directors of PC Mall (or the compensation committee thereof) shall determine to the extent necessary to avoid adverse tax consequences to option holders who are not U.S.
residents. 
  
 (e) PC Mall and eCost acknowledge
that the adjustment to PC Mall Stock Options under this Article V will be implemented in part by the issuance of the eCost Options under the terms of the eCost 2004 Stock Incentive Plan. 
  
 (f) After the Distribution Date, (i) PC Mall Stock Options, regardless of by whom held, shall be settled by
PC Mall pursuant to the terms of the applicable PC Mall Stock Option Plans, and (ii) eCost Options, regardless of by whom held, shall be settled by eCost pursuant to the terms of the eCost 2004 Stock Incentive Plan. 
  
 5.2 Allocation of Liabilities. Except as provided in Article VII of
the Tax Allocation and Indemnification Agreement, (a) eCost shall assume all liabilities with respect to awards granted pursuant to the eCost Option Plans, and (b) the PC Mall Group shall retain all other liabilities with respect to awards granted
pursuant to the PC Mall Stock Option Plans (including, but not limited to, awards granted to PC Mall Retained Employees). 
  

 10 

 ARTICLE VI 
  

EMPLOYEE TRANSITION 
  
 Unless PC Mall and eCost otherwise mutually agree in writing, for the period beginning on the Offering Date and ending on the second anniversary thereof,
neither eCost nor the PC Mall Group will, nor will they permit their applicable Affiliates to, solicit or hire any employee of the other or of the other’s Affiliates or any person who, within the six (6) months immediately preceding such
solicitation or hiring, was employed by the other or the other’s Affiliates. 
  
 ARTICLE VII 
  
 INDEMNIFICATION 
  
 Article V of the Master
Separation and Distribution Agreement shall govern the rights of PC Mall and eCost with respect to indemnification. The term “PC Mall Liabilities” in that Article shall be read to include all liabilities assumed or retained by the PC Mall
Group pursuant to this Agreement. The term “eCost Liabilities” in that Article shall be read to include all liabilities assumed or retained by eCost pursuant to this Agreement. 
  
 ARTICLE VIII 
  
 DISPUTE RESOLUTION 
  
 Article IX of the Master Separation and Distribution Agreement shall govern the rights of the PC Mall Group and eCost with respect to dispute resolution.

  
 ARTICLE IX 
  
 MISCELLANEOUS 
  
 9.1 Counterparts, Entire Agreement, Corporate Power. This Agreement
may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other party. This
Agreement and the Schedules hereto contain the entire agreement between the parties with respect to the subject matter hereof, supersede all previous agreements, negotiations, discussions, writings, understandings, commitments and conversations with
respect to such subject matter, and there are no agreements or understandings between the parties other than those set forth or referred to herein or therein. 
  

9.2 Governing Law. This Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of California
(other than as to its laws of arbitration which shall be governed under the United States Arbitration Act, 9 U.S.C. §§ 1-14, as the same may be amended from time to time, or other applicable 

  

 11 

 
federal law pursuant to Article IX of the Master Separation and Distribution Agreement), irrespective of the choice of laws principles of the State of
California, as to all matters, including matters of validity, construction, effect, enforceability, performance and remedies. 
  
 9.3 Assignability. This Agreement shall be binding upon and inure to the benefit of the parties hereto and thereto, respectively, and their
respective successors and assigns; provided, however, that no party hereto or thereto may assign its respective rights or delegate its respective obligations under this Agreement without the express prior written consent of the other
parties hereto or thereto. 
  
 9.4 Third Party
Beneficiaries. The provisions of this Agreement are solely for the benefit of the parties and are not intended to confer upon any Person except the parties any rights or remedies hereunder. There are no third party beneficiaries of this
Agreement, and this Agreement shall not provide any third person with any remedy, claim, liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement. No party hereto shall have any right,
remedy or claim with respect to any provision of this Agreement to the extent such provision relates solely to the other two parties hereto or the members of such other two parties’ respective Groups. 
  
 9.5 Notices. All notices, requests, demands, waivers and other
communications under this Agreement, any Ancillary Agreement or the Tax Indemnification and Allocation Agreement shall be in writing and shall be deemed to have been duly given if delivered personally or by facsimile transmission or mailed
(certified or registered mail, postage prepaid, return receipt requested): 
  

			
	 If to PC Mall, to:
	  	 PC Mall, Inc.
 2555 West 190th Street, Suite
201
 Torrance, California 90504
 Attention: Chief Executive
Officer
  
 Fax No.: (310) 353-7411

		
	 with a copy to:
	  	 PC Mall, Inc.
 2555 West 190th Street, Suite
201
 Torrance, California 90504
 Attention: General
Counsel
  
 Fax No.: (310) 630-3992

  

 12 

			
	 If to eCOST:
	  	 eCOST.com, Inc.
 2555 West 190th Street, Suite
106
 Torrance, California 90504
 Attention: Chief Executive
Officer
  
 Fax No.: (310) 630-3578

  
 or to such other person or address as
any party shall specify by notice in writing to the other party. All such notices, requests, demands, waivers and communications shall be deemed to have been received on the date on which hand delivered, upon transmission of the facsimile
transmission by the sender and issuance by the transmitting machine of a confirmation slip confirming that the number of pages constituting the notice have been transmitted without error, or on the third business day following the date on which so
mailed, except for a notice of change of address, which shall be effective only upon receipt thereof. In the case of a notice sent by facsimile transmission, the sender shall contemporaneously mail a copy of the notice to the addressee at the
address provided for above. However, such mailing shall in no way alter the time at which the facsimile notice is deemed received. In no event shall the provision of notice pursuant to this Section 10.5 constitute notice for service of process.

  
 9.6 Severability. If any provision of this Agreement or
the application thereof to any Person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof or thereof, or the application of such provision to Persons or
circumstances or in jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal
substance of the transactions contemplated hereby or thereby, as the case may be, is not affected in any manner adverse to any party. Upon such determination, the parties shall negotiate in good faith in an effort to agree upon such a suitable and
equitable provision to effect the original intent of the parties. 
  
 9.7 Force Majeure. No party shall be deemed in default of this Agreement to the extent that any delay or failure in the performance of its obligations under this Agreement results from any cause beyond its reasonable control and
without its fault or negligence, such as acts of God, acts of civil or military authority, embargoes, epidemics, war, riots, insurrections, fires, explosions, earthquakes, floods, unusually severe weather conditions, labor problems or unavailability
of parts, or, in the case of computer systems, any failure in electrical or air conditioning equipment. In the event of any such excused delay, the time for performance shall be extended for a period equal to the time lost by reason of the delay.

  
 9.8 Expenses. eCOST shall pay all third-party costs,
fees and expenses relating to the performance of its obligations under this Agreement. 
  

 13 

 9.9 Headings. The article, section and paragraph headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 
  
 9.10 Waivers of Default. Waiver by any party of any default by the other party of any provision of this Agreement shall not be deemed a waiver by
the waiving party of any subsequent or other default, nor shall it prejudice the rights of the other party. 
  
 9.11 Specific Performance. In the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this
Agreement, the party or parties who are or are to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief of its rights under this Agreement, in addition to any and all other rights and remedies at
law or in equity, and all such rights and remedies shall be cumulative. The parties agree that the remedies at law for any breach or threatened breach, including monetary damages, are inadequate compensation for any loss and that any defense in any
action for specific performance that a remedy at law would be adequate is waived. Any requirements for the securing or posting of any bond with such remedy are waived. 
  
 9.12 Amendments. No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by any
party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the party against whom it is sought to enforce such waiver, amendment, supplement or modification. 
  
 9.13 Interpretation. Words in the singular shall be held to include
the plural and vice versa and words of one gender shall be held to include the other genders as the context requires. The terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise
stated, be construed to refer to this Agreement (or the applicable Ancillary Agreement) as a whole (including all of the Schedules, Exhibits and Appendices hereto and thereto) and not to any particular provision of this Agreement (or such Ancillary
Agreement). Article, Section, Exhibit, Schedule and Appendix references are to the Articles, Sections, Exhibits, Schedules and Appendices to this Agreement (or the applicable Ancillary Agreement) unless otherwise specified. The word
“including” and words of similar import when used in this Agreement (or the applicable Ancillary Agreement) shall mean “including, without limitation,” unless the context otherwise requires or unless otherwise specified. The word
“or” shall not be exclusive. 
  
 9.14
Cooperation. PC Mall and eCost agree to, and to cause their Affiliates to, cooperate and use reasonable efforts to promptly (a) comply with all requirements of this Agreement, ERISA, the Code and other laws and regulations which may be
applicable to the matters addressed herein, and (b) subject to applicable law, provide each other with such information reasonably requested by the other Party to assist the other Party in administering its Plans and complying with applicable law
and regulations and the terms of this Agreement. 
  

 14 

 9.15 Subsidiaries. Each of the parties hereto shall cause to be performed, and hereby guarantees
the performance of, all actions, agreements and obligations set forth herein to be performed by any Subsidiary of such party or by any entity that is contemplated to be a Subsidiary of such party on and after the Group Status Change Date.

  
 9.16 Fiduciary Matters; Consent of Third Parties. PC
Mall and eCost each acknowledge that actions required to be taken pursuant to this Agreement may be subject to fiduciary duties or standards of conduct under ERISA or other applicable law, and no party shall be deemed to be in violation of this
Agreement if it fails to comply with any provisions hereof based upon its good faith determination that to do so would violate such a fiduciary duty or standard. If any provision of this Agreement is dependent on the consent of any third party and
such consent is withheld, PC Mall and eCost shall use their reasonable best efforts to implement the applicable provisions of this Agreement to the full extent practicable. If any provision of this Agreement cannot be implemented due to the failure
of such third party to consent, PC Mall and eCost shall negotiate in good faith to implement the provision in a mutually satisfactory manner. 
  
 9.17 Governmental Notices; Cooperation. Notwithstanding anything in this Agreement to the contrary, all actions contemplated herein which are to be
consummated pursuant to this Agreement shall be subject to such notices to, and/or approvals by, the Internal Revenue Service (or any other governmental agency or entity) as are required or deemed appropriate by the sponsor of the applicable Plan.
Each of PC Mall and eCost agrees to use its commercially reasonable efforts to cause all such notices and/or approvals to be filed or obtained, as the case may be. Each party hereto shall reasonably cooperate with the other parties with respect to
any government filings, employee notices or any other actions reasonably necessary to maintain and implement the Plans covered by this Agreement. 
  
 9.18 Limitation of Damages. NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT OR ANY ANCILLARY AGREEMENT TO THE CONTRARY, IN NO EVENT WILL
EITHER PARTY OR ANY OF ITS GROUP MEMBERS BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, COLLATERAL, CONSEQUENTIAL OR PUNITIVE DAMAGES OR LOST PROFITS IN CONNECTION WITH ANY CLAIMS, LOSSES, DAMAGES, OR INJURIES ARISING OUT OF THE CONDUCT OF SUCH
PARTY PURSUANT TO THIS AGREEMENT. 
  

 15 

 IN WITNESS WHEREOF, the parties have duly executed and entered into this Agreement, as of the date
first above written. 
  

			
	PC MALL, INC.
		
	 By:
	 	/S/    THEODORE R.
SANDERS        
	 Name:
	 	Theodore R. Sanders
	 Title:
	 	Chief Financial Officer

  

			
	ECOST.COM, INC.
		
	 By:
	 	/S/    ADAM
SHAFFER        
	 Name:
	 	Adam Shaffer
	 Title:
	 	Chief Executive Officer

  

 16 

 Schedule 5.1(b) 
  
 The exercise prices for each PC Mall Adjusted Option and eCost Option will be determined as follows: 
  
 1. Calculate the aggregate intrinsic value of the PC Mall Stock Option
immediately prior to the Distribution and determine the ratio of the exercise price for the PC Mall Stock Option to the market value of PC Mall Common Stock immediately prior to the Distribution (the “Pre-Distribution Exercise Price to
Market Price Ratio”). 
  
 2. Calculate the preliminary PC
Mall Adjusted Option exercise price by dividing (a) the market value of PC Mall Common Stock (without eCost) immediately after the Distribution by (b) the sum of (i) the market value of PC Mall Common Stock immediately after the Distribution and
(ii) the market value of eCost Common Stock immediately after the Distribution multiplied by the Distribution Ratio, and multiplying the result by the exercise price for the PC Mall Stock Option. 
  
 3. Divide the preliminary PC Mall Adjusted Option exercise price by the
market value of PC Mall Common Stock immediately after the Distribution to determine the “PC Mall Adjusted Exercise Price to Market Price Ratio.” If the PC Mall Adjusted Exercise Price to Market Price Ratio is less than the
Pre-Distribution Exercise Price to Market Price Ratio, increase the preliminary PC Mall Adjusted Option exercise price to align the PC Mall Adjusted Exercise Price to Market Ratio with the Pre-Distribution Exercise Price to Market Price Ratio in
order to determine the final Adjusted PC Mall Option exercise price. 
  
 4. Calculate the preliminary eCost Option exercise price by multiplying the exercise price for the PC Mall Stock Option by the result obtained by dividing (a) one minus the fraction calculated in paragraph 2 above by (b) the Distribution
Ratio. 
  
 5. Divide the preliminary eCost Option exercise price
by the market value of eCost Common Stock immediately after the Distribution to determine the “eCost Adjusted Exercise Price to Market Price Ratio.” If the eCost Adjusted Exercise Price to Market Ratio is less than the Pre-Distribution
Exercise Price to Market Price Ratio, increase the preliminary eCost Option exercise price to align the eCost Adjusted Exercise Price to Market Price Ratio with the Pre-Distribution Exercise Price to Market Price Ratio in order to determine the
final eCost Option exercise price. 
  
 6. Add the aggregate
intrinsic values of the Adjusted PC Mall Option and eCost Option and compare the sum to the aggregate intrinsic value calculated in paragraph 1 above and make final adjustments, if necessary, so that the aggregate intrinsic values of the Adjusted PC
Mall Option and eCost Option do not exceed the original aggregate intrinsic value of the PC Mall Stock Option.

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