Document:

Exhibit

	
	
	FORESCOUT TECHNOLOGIES, INC.

	CONSULTING AGREEMENT

	 

This Consulting Agreement (“Agreement”) is made and entered into as of June 5, 2019 (“Effective Date”) by and between Forescout Technologies, Inc. (“Forescout”), having a principal place of business at 190 West Tasman Drive, San Jose, CA 95134 and Night Dragon II, LLC (“Night Dragon”), with principals David DeWalt and Kenneth W. Gonzales, each of whom may be providing services to Forescout in accordance with the terms of this Agreement and the applicable SOW (each, a “Consultant”), having a principal place of business at 101 2nd St. #1275 San Francisco, CA 94105.  Consultant’s standard terms and conditions of sale, purchase order or other documents are for Consultant’s convenience only and any terms set forth therein that are inconsistent with, vary from, or add to the terms and conditions set forth in this Agreement shall not be binding on Forescout unless agreed to in writing by both Forescout and Consultant and are hereby rejected.  

1. ENGAGEMENT OF SERVICES.   
Forescout and Consultant may agree to services in the form of a Statement of Work (“SOW”) attached to this Agreement as Exhibit A.  A SOW will become binding when both parties have signed it and, once signed, Consultant will be obligated to provide the services and to deliver the materials and deliverables as specified in each SOW.  The terms of this Agreement will govern all SOWs and services undertaken by Consultant for Forescout.  Consultant represents, warrants and covenants that Consultant will perform the services under this Agreement in a timely, professional and workmanlike manner and that all materials and deliverables provided to Forescout will comply with (i) the requirements set forth in the SOW, (ii) the documentation and specifications for those materials and deliverables, (iii) any samples or documents provided by Consultant to Forescout.  

2. COMPENSATION AND TIMING.  
Forescout will pay Consultant the fee set forth in each SOW for the services provided as specified in that SOW.  All invoices will be paid within thirty (30) days from Forescout’s receipt thereof. If provided for in the SOW, Forescout will reimburse Consultant’s pre-approved, documented, out-of-pocket expenses as specified in the invoice and in accordance with this Section 2, except that reimbursement for expenses may be delayed until that time when Consultant furnishes adequate supporting documentation for the authorized expenses as Forescout may reasonably request.  Upon termination of this Agreement for any reason, Consultant will be (a) paid fees on the basis stated in the SOW(s) and (b) reimbursed only for expenses that are properly incurred prior to termination of this Agreement and which are either expressly identified in a SOW or approved in advance in writing by an authorized Forescout manager.

3. INDEPENDENT CONTRACTOR RELATIONSHIP.  
Consultant’s relationship with Forescout is that of an independent contractor, and nothing in this Agreement is intended to, or shall be construed to, create a partnership, agency, joint venture, employment or similar relationship.  Consultant will not be entitled to any of the benefits that Forescout may make available to its employees, including, but not limited to, group health or life insurance, profit sharing or retirement benefits.  Consultant is not authorized to make any representation, contract or commitment on behalf of Forescout unless specifically requested or authorized in writing to do so by a Forescout manager.  Consultant is solely responsible for, and will file, on a timely basis, all tax returns and payments required to be filed with, or made to, any federal, state or local tax authority with respect to the performance of services and receipt of fees under this Agreement.  Consultant is solely responsible for, and must maintain adequate records of, expenses incurred in the course of performing services under this Agreement.  No part of Consultant’s compensation will be subject to withholding by Forescout for the payment of any social security, federal, state or any other employee payroll taxes.  Forescout will regularly report amounts paid to Consultant by filing Form 1099 MISC with the Internal Revenue Service as required by law. 

4.  DISCLOSURE AND ASSIGNMENT OF WORK RESULTING FROM PROJECT ASSIGNMENTS.
4.1 “Innovations” and “Forescout Innovations” Definitions.  In this Agreement, “Innovations” means all discoveries, designs, developments, improvements, inventions (whether or not protectable under patent laws), works of authorship, information fixed in any tangible medium of expression (whether or not protectable under copyright laws), trade secrets, know-how, ideas (whether or not protectable under trade secret laws), mask works, trademarks, service marks, trade names and trade dress.  “Forescout Innovations” means Innovations that Consultant, solely or jointly with others, creates, derives, conceives, develops, makes or reduces to practice under a SOW. For the avoidance of doubt, Forescout Innovations shall be deemed a “work made for hire” as defined by Section 101 of the U.S. Copyright Act (17 U.S.C. § 101) and as used in Section 201 of the U.S. Copyright Act (17 U.S.C. § 201).
4.2 Disclosure and Assignment of Forescout Innovations.  Consultant agrees to maintain adequate and current records of all Forescout Innovations, which records shall be and remain the property of Forescout.  Consultant agrees to promptly disclose and describe to Forescout all Forescout Innovations.  Consultant hereby does and will irrevocably assign to Forescout or Forescout’s designee all of Consultant’s right, title and interest in and to any and all Forescout Innovations and all associated records.  To the extent any of the rights, title and interest in and to Forescout Innovations cannot be assigned by Consultant to Forescout, Consultant hereby grants to Forescout an exclusive, royalty-free, transferable, irrevocable, worldwide, fully paid-up license (with rights to sublicense through multiple tiers of sublicensees) to fully use, practice and exploit those non-assignable rights, title and interest, including, but not limited to, the right to make, use, sell, offer for sale, import, have made, and have sold, the Forescout Innovations.  To the extent any of the rights, title and interest in and to the Forescout Innovations can neither be assigned nor licensed by Consultant to Forescout, Consultant hereby irrevocably waives and agrees never to assert the non-assignable and non-licensable rights, title and interest against Forescout, any of Forescout’s successors in interest, or any of Forescout’s customers.
4.3 Assistance.  Consultant agrees to perform, during and after the term of this Agreement, all acts that Forescout deems necessary or desirable to permit and assist Forescout, at its expense, in obtaining, perfecting and enforcing the full benefits, enjoyment, rights and title throughout the world in the Forescout Innovations as provided to Forescout under this Agreement.  If Forescout is unable for any reason to secure Consultant’s signature to any document required to file, prosecute, register or memorialize the assignment of any rights under any Forescout Innovations as provided under this Agreement, Consultant hereby irrevocably designates and appoints Forescout and Forescout’s duly authorized officers and agents as Consultant’s agents and attorneys-in-fact to act for and on Consultant’s behalf and instead of Consultant to take all lawfully permitted acts to further the filing, prosecution, registration, memorialization of assignment, issuance and enforcement of rights in, to and under the Forescout Innovations, all with the same legal force and effect as if executed by Consultant.  The foregoing is deemed a power coupled with an interest and is irrevocable.
4.4 Consultant Out-of-Scope Innovations.  If Consultant incorporates or permits to be incorporated any Innovations relating in any way, at the time of conception, reduction to practice, creation, derivation, development or making of the Innovation, to Forescout’s business or actual or demonstrably anticipated research or development 

        
	
			
	 
	 
	Forescout Confidential

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but which were conceived, reduced to practice, created, derived, developed or made by Consultant (solely or jointly) either unrelated to Consultant’s work for Forescout under this Agreement or prior to the Effective Date (collectively, the “Out-of-Scope Innovations”) into any of the Forescout Innovations, then Consultant hereby grants to Forescout and Forescout’s designees a royalty-free, transferable, irrevocable, worldwide, fully paid-up license (with rights to sublicense through multiple tiers of sublicensees) to fully use, practice and exploit all patent, copyright, moral right, mask work, trade secret and other intellectual property rights relating to the Out-of-Scope Innovations.  Notwithstanding the foregoing, Consultant agrees that Consultant shall not incorporate, or permit to be incorporated, any Innovations conceived, reduced to practice, created, derived, developed or made by others or any Out-of-Scope Innovations into any Forescout Innovations without Forescout’s prior written consent.
4.5 Assignment by Employees of Consultant. Consultant covenants, represents and warrants that each of Consultant’s employees and/or contractors who perform services under this Agreement has or will have a written agreement with Consultant that provides Consultant with all necessary rights to fulfill its obligations under this Agreement, including but not limited to the obligations of this Section 4.

5. CONFIDENTIALITY. 
5.1 Definition of Confidentiality. “Confidential Information” means (a) any technical and non-technical information related to the Forescout’s business and current, future and proposed products and services of Forescout, including for example and without limitation, Forescout Innovations, Forescout Property (as defined in Section 6 (Ownership and Return of Confidential Information and Forescout Property)), and Forescout’s information concerning research, development, design details and specifications, financial information, procurement requirements, engineering and manufacturing information, customer lists, business forecasts, sales information, marketing plans and business plans, in each case whether or not marked as “Confidential” or “Proprietary” and (b) any information that Forescout has received from others that may be made known to Consultant and that Forescout is obligated to treat as confidential or proprietary, whether or not marked as “Confidential” or “Proprietary”.  
5.2 Non-Disclosure and Non-Use Obligations.  Except as permitted in this Section, Consultant will not (i) use any Confidential Information or (ii) disseminate or in any way disclose the Confidential Information to any person, firm, business or governmental agency or department.  Consultant may use the Confidential Information solely to perform SOW(s) for the benefit of Forescout.  Consultant shall treat all Confidential Information with the same degree of care as Consultant accords to Consultant’s own confidential information, but in no case shall Consultant use less than reasonable care.  If Consultant is not an individual, Consultant shall disclose Confidential Information only to those of Consultant’s employees and/or contractors who have a need to know the information as necessary for Consultant to perform this Agreement.  Consultant certifies that each of its employees and/or contractors will have agreed, either as a condition of employment or in order to obtain the Confidential Information, to be bound by terms and conditions at least as protective as those terms and conditions applicable to Consultant under this Agreement.  Consultant shall immediately give notice to Forescout of any unauthorized use or disclosure of the Confidential Information.  Consultant shall assist Forescout in remedying any unauthorized use or disclosure of the Confidential Information.  Consultant agrees not to communicate any information to Forescout in violation of the proprietary rights of any third party. 
5.3 Exclusions from Non-Disclosure and Non-Use Obligations.  Consultant’s obligations under Section 5.2 (Non-Disclosure and Non-Use Obligations) do not apply to any Confidential Information that Consultant can demonstrate (a) was in the public domain at or subsequent to the time the Confidential Information was communicated to Consultant by Forescout through no fault of Consultant; (b) was rightfully in Consultant’s possession free of any obligation of confidence at or subsequent to the time the Confidential Information was communicated to Consultant by Forescout; or (c) was independently developed by employees of Consultant without use of, or reference to, any Confidential Information communicated to Consultant by Forescout.  Disclosure of any Confidential Information by Consultant (a) in response to a valid order by a court or other governmental body or (b) as otherwise required by law will not be considered to be a breach of this Agreement or a waiver of confidentiality for other purposes; provided, however, that Consultant provides prompt prior written notice thereof to Forescout to enable Forescout to seek a protective order or otherwise prevent the disclosure.
5.4 Defense of Trade Secrets Act. Pursuant to the Defense of Trade Secrets Act, 18 U.S.C. § 1833(b), Consultant understands that: an individual shall not be held criminally or civilly liable under any federal or state trade secret law for disclosure of a trade secret: (i) made in confidence to a government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law; and/or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Consultant further understands that, an individual suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to his or her attorney and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order. Consultant represents and warrants that it or its subcontractors will provide any notice required under the Defense of Trade Secrets Act to each individual used or provided by Consultant to perform under this Agreement.

6. OWNERSHIP AND RETURN OF CONFIDENTIAL INFORMATION AND FORESCOUT PROPERTY.  
All Confidential Information and any materials and items (including, without limitation, software, equipment, tools, artwork, documents, drawings, papers, diskettes, tapes, models, apparatus, sketches, designs and lists) that Forescout furnishes to Consultant by Forescout, whether delivered to Consultant by Forescout or made by Consultant in the performance of services under this Agreement and whether or not they contain or disclose Confidential Information (collectively, the “Forescout Property”), are the sole and exclusive property of Forescout or Forescout’s suppliers or customers.  Consultant agrees to keep all Forescout Property at Consultant’s premises unless otherwise permitted in writing by Forescout.  Within five (5) days after any request by Forescout, Consultant shall destroy or deliver to Forescout, at Forescout’s option, (a) all Forescout Property and (b) all materials and items in Consultant’s possession or control that contain or disclose any Confidential Information.  Consultant will provide Forescout a written certification of Consultant’s compliance with Consultant’s obligations under this Section 6.

7.  INDEMNIFICATION.  
Consultant will indemnify and hold harmless Forescout from and against any and all third party claims, suits, actions, demands and proceedings against Forescout and all losses, costs and liabilities related thereto arising out of or related to (i) an allegation that any item, material and other deliverable delivered by Consultant under this Agreement infringes any intellectual property rights or publicity rights of a third party or (ii) any negligence by Consultant or any other act or omission of Consultant, including without limitation any breach of this Agreement by Consultant.

8.  OBSERVANCE OF FORESCOUT RULES.  
At all times while on Forescout’s premises, Consultant will observe Forescout’s rules and regulations with respect to conduct, health, safety and protection of persons and property.  Notwithstanding the foregoing, in the event this Agreement conflicts with the terms of Forescout’s Acceptable Use Policy, the terms of this Agreement shall govern. 

9.  NO CONFLICT OF INTEREST.  
Subject to such activities as may be permitted from time to time under the SOW, during the term of this Agreement, Consultant will not accept work, enter into a contract or accept an obligation inconsistent or incompatible with Consultant’s obligations, or the scope of services to be rendered for Forescout, under this Agreement.  Consultant warrants that, to the best of Consultant’s knowledge, there is no other existing contract or duty on Consultant’s part that conflicts with or is inconsistent with this Agreement.  Consultant agrees to indemnify and hold harmless Forescout from any and all losses and liabilities incurred or suffered by Forescout by reason of the alleged breach by Consultant of any services agreement between Consultant and any third party.

        
	
			
	 
	 
	Forescout Confidential

	Forescout Consulting Agreement (Company) Std_2.1.19    
	 
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10.  TERM AND TERMINATION.
10.1 Term.  This Agreement is effective as of the Effective Date set forth above and will remain in full force and effect unless terminated in accordance with the termination provisions below. 
10.2 Termination by Forescout.  Except during the term of a SOW, Forescout may terminate this Agreement without cause at any time, with termination effective fifteen (15) days after Forescout’s delivery to Consultant of written notice of termination.  Forescout also may terminate this Agreement (a) immediately upon Consultant’s breach of Section 4 (Disclosure and Assignment of Work Resulting from SOWs), 5 (Confidentiality) or 11 (Noninterference with Business) or (b) immediately for a breach by Consultant if Consultant’s breach of any other provision under this Agreement or obligation under a SOW is not cured within fifteen (15) days after the date of Forescout’s written notice of breach.  Forescout may terminate a SOW at any time upon three (3) days’ prior written notice to Consultant and, in that event, Forescout will pay Consultant for services properly performed prior to the date of termination.
10.3 Termination by Consultant.  Except during the term of a SOW, Consultant may terminate this Agreement without cause at any time, with termination effective fifteen (15) days after Consultant’s delivery to Forescout of written notice of termination.  Consultant also may terminate this Agreement immediately for a material breach by Forescout if Forescout’s material breach of any provision of this Agreement is not cured within fifteen (15) days after the date of Consultant’s written notice of breach.
10.4 Effect of Expiration or Termination.  Upon expiration or termination of this Agreement, Forescout shall pay Consultant for services properly performed under this Agreement as set forth in each then pending SOW.  The definitions contained in this Agreement and the rights and obligations contained in this Section and Sections 4 (Disclosure and Assignment of Work Resulting from SOWs), 5 (Confidentiality), 6 (Ownership and Return of Confidential Information and Forescout Property), 7 (Indemnification), 11 (Noninterference with Business) and 12 (General Provisions) will survive any termination or expiration of this Agreement.

11.  Noninterference with Business.  During this Agreement, and for a period of one (1) year immediately following the termination or expiration of this Agreement, Consultant agrees not to solicit or induce any employee or independent contractor involved in the performance of this Agreement to terminate or breach an employment, contractual or other relationship with Forescout.

12.  GENERAL PROVISIONS.
12.1 Successors and Assigns.  Consultant shall not assign its rights or delegate any performance under this Agreement without the prior written consent of Forescout.  For the avoidance of doubt, Consultant may not subcontract performance of any services under this Agreement to any other contractor or consultant without Forescout’s prior written consent.  All assignments of rights by Consultant are prohibited under this paragraph, whether they are voluntary or involuntary, by merger, consolidation, dissolution, operation of law, or any other manner. For purposes of this paragraph, (i) a “change of control” is deemed an assignment of rights; and (ii) “merger” refers to any merger in which Consultant participates, regardless of whether it is the surviving or disappearing entity.  Any purported assignment of rights or delegation of performance in violation of this paragraph is void. This Agreement will be for the benefit of Forescout’s successors and assigns, and will be binding on Consultant’s permitted assignees.
12.2 Injunctive Relief.  Consultant’s obligations under this Agreement are of a unique character that gives them particular value; Consultant’s breach of any of these obligations will cause irreparable and continuing damage to Forescout for which money damages are insufficient, and Forescout is entitled to injunctive relief, a decree for specific performance, and all other relief as may be proper (including money damages if appropriate), without the need to post a bond. 
12.3 Notices.  Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows, with notice deemed given as indicated:  (a) by personal delivery, when actually delivered; (b) by overnight courier, upon written verification of receipt; (c) by facsimile transmission, upon acknowledgment of receipt of electronic transmission; or (d) by certified or registered mail, return receipt requested, upon verification of receipt.  Notice shall be sent to the addresses set forth above or to such other address as either party may provide in writing.
12.4 Governing Law; Forum.  The laws of the United States of America and the State of California govern all matters arising out of or relating to this Agreement without giving effect to any conflict of law principles.  Each of the parties irrevocably consents to the exclusive personal jurisdiction of the federal and state courts located in Santa Clara County, California, as applicable, for any matter arising out of or relating to this Agreement, except that in actions seeking to enforce any order or any judgment of the federal or state courts located in Santa Clara County, California, such personal jurisdiction will be non-exclusive.  Additionally, notwithstanding anything in the foregoing to the contrary, a claim for equitable relief arising out of or related to this Agreement may be brought in any court of competent jurisdiction.  If a proceeding is commenced to resolve any dispute that arises between the parties with respect to the matters covered by this Agreement, the prevailing party in that proceeding is entitled to receive its reasonable attorneys’ fees, expert witness fees and out of pocket costs, in addition to any other relief to which that prevailing party may be entitled.  
12.5 Severability.  If a court of law holds any provision of this Agreement to be illegal, invalid or unenforceable, (a) that provision shall be deemed amended to achieve an economic effect that is as near as possible to that provided by the original provision and (b) the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected.
12.6 Waiver; Modification.  If Forescout waives any term, provision or Consultant’s breach of this Agreement, such waiver shall not be effective unless it is in writing and signed by Forescout.  No waiver by a party of a breach of this Agreement shall constitute a waiver of any other or subsequent breach by Consultant.  This Agreement may be modified only by mutual written agreement of authorized representatives of the parties.  
12.7 Entire Agreement.  This Agreement constitutes the final and exclusive agreement between the parties relating to this subject matter and supersedes all agreements, whether prior or contemporaneous, written or oral, concerning such subject matter.

IN WITNESS WHEREOF, the parties have executed this Consulting Agreement as of the day and year set forth above.  This Agreement may be executed in counterpart.

	
					
	Consultant:
	NIGHT DRAGON II, LLC
	 
	FORESCOUT TECHNOLOGIES, INC.

	By:
	/s/ David DeWalt
	 
	By:
	/s/ Theresia Gouw

	Name:
	David DeWalt
	 
	Name:
	Theresia Gouw

	Title:
	CEO
	 
	Title:
	Chair of the Board

	Date:
	June 5, 2019
	 
	Date:
	June 6, 2019

        
	
			
	 
	 
	Forescout Confidential

	Forescout Consulting Agreement (Company) Std_2.1.19    
	 
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EXHIBIT A
FORM OF STATEMENT OF WORK

This Statement of Work (“SOW”) is made as of June 5, 2019 (the “Effective Date”) and describes the services to be provided to Forescout under the Consulting Agreement (“Agreement”) dated June 5, 2019, by and between Forescout Technologies, Inc. (“Forescout” or the “Company”) and Night Dragon II, LLC (“Night Dragon”), with principals David DeWalt and Kenneth W. Gonzales , each of whom may be providing services to Forescout in accordance with the terms of this Agreement and the applicable SOW.  Capitalized terms not defined in this SOW have the meanings set forth in the Agreement.  Except as expressly modified herein, the terms and conditions of the Agreement shall remain in full force and effect.

		
	1.
	PROJECT NAME: NIGHT DRAGON SECURITY CONSULTING

		
	2.
	PROJECT MANAGERS FOR THIS SOW

	
					
	NIGHT DRAGON II, LLC
	 
	 
	FORESCOUT

	Name:
	David DeWalt
	 
	Name:
	Theresia Gouw

	Address:
	 
	 
	Address:
	190 W. Tasman
San Jose, CA 95134

	Title:
	CEO
	 
	Title:
	Chair of the Board

	Mobile:
	 
	 
	Mobile:
	 

	Email:
	 
	 
	Email:
	 

		
	3.
	DESCRIPTION OF SERVICES

Consulting  and business development services over a period of two years, including customer engagement, speaking activities, competitive and market analysis, business development assistance and expertise.
		
	4.
	SCOPE OF WORK / DELIVERABLES

Mr. DeWalt to provide at least three (3) customer engagement and speaking activities each year during the consulting term pursuant to the parameters outlined by the                  Company in writing (each an “Engagement Assignment”), plus Mr. DeWalt to provide such additional sales and marketing support as may be requested by the Company and upon mutual agreement, including, but not limited to, phone conversations with customers or other industry participants, speaking engagements, and social media marketing.  For purposes hereof, an Engagement Assignment shall include any of (a) a half day strategic session with management on M&A and the partnership landscape for the Company; (b) any field marketing event speaking engagement, and (c) a one-on-one meeting with a C-level executive of a Tier 1-target. 
In addition, Night Dragon to make Mr. Gonzalez or other Night Dragon associates available to provide business development, competitive analysis and other in-depth market analysis services to the Company to supplement the in-house Business Development team at Forescout, pursuant to the parameters outlined by the Company in writing. Such analysis (“Business Development Analysis”) to be provided once per year (2019 & 2020) in the form of a written report and requires full complete downstream analysis of entities that Forescout should consider partnering with or acquiring.
During the consulting term, neither Mr. DeWalt nor Mr. Gonzalez will provide sales, marketing or market-facing services, including speaking engagements, directly or indirectly, through Night Dragon or otherwise, for the benefit of any Competitors, nor serve as an employee, officer or director of any Competitors.  For purposes hereof, “Competitors” shall mean such entities that are competitive with the Company’s business as of the date hereof or at any time during the consulting term, as shall be reasonably understood by the Board (as defined below) in their discussions.   Notwithstanding the foregoing, the Company acknowledges and agrees that Night Dragon is engaged primarily in investing in other entities and nothing herein is intended to prohibit or restrict Night Dragon’s business activities in this regard.  In addition, Mr. DeWalt may continue to provide advisory services (other than such sales, marketing or market-facing services and speaking engagements) to other companies and, to the extent Mr. DeWalt is requested to, or required to, speak on behalf of any entity in his capacity as an investor, Mr. DeWalt will inform the Company in advance to the extent reasonably possible.  If Mr. DeWalt provides services or desires to provide services to a Competitor, the Company or Mr. DeWalt may terminate this Agreement immediately upon notice to the other party and any PSUs that have not vested as of such termination will be forfeited.

		
	5.
	ESTIMATED DURATION OF PROJECT

Duration of the Night Dragon consulting project will be two years, beginning June 5, 2019 and ending on June 4, 2021.

		
	6.
	CONSULTANT FEES

In consideration for such services, upon the approval of the Board of Directors (the “Board”) of Forescout Technologies, the Company shall grant  a number of performance stock units (“PSUs”) calculated based on the Company's policy of a 30-day look-back period with a grant date fair value (determined in accordance with U.S. generally accepted accounting principles) of $2.5 million.  The PSUs will be granted pursuant to the Company’s 2017 Equity Incentive Plan (“Plan”) and will vest on the achievement of certain deliverables as set forth below in each case as long as the Consulting Agreement and this SOW remain in effect and the other provisions of the SOW are met at the time of vesting. In the event of a Change in Control (as defined in the Plan) or termination of this Agreement without cause, immediately prior to such Change of Control or upon termination, as applicable, the PSUs shall be deemed achieved at target (i.e. as if all Year 1 Deliverables and Year 2 Deliverables have been satisfied). In the event this Agreement is terminated by the Company or Night Dragon due to Night Dragon or Mr. DeWalt’s providing services to a Competitor, any PSUs not yet vested in full will be forfeited.

        
	
			
	 
	 
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Deliverables:  June 5, 2019 – June 4, 2020 (the “Year 1 Deliverables”)

	
			
	David DeWalt
	1.    Engagement Assignment
2.    Engagement Assignment
3.    Engagement Assignment

	12.5% PSU Grant
12.5% PSU Grant
12.5% PSU Grant

	David DeWalt
	Phone conversations with customers, as requested by Forescout

	 

	Kenneth Gonzalez
	Business Development Analysis

	12.5% PSU Grant

Upon completion of each deliverable from June 5, 2019 –June 4, 2020, Forescout will certify acceptance of each deliverable within sixty (60) days upon notice of receipt of such deliverable. Upon Forescout’s certification of acceptance of a deliverable, the corresponding portion of the PSU grant will vest. Notwithstanding the foregoing, if the Company has not requested all Year 1 Deliverables to be performed by Mr. DeWalt by June 4, 2020, such Year 1 Deliverable will be deemed to be a Year 2 Deliverable.  

Deliverables:  June 5, 2020 – June 4, 2021 (the “Year 2 Deliverables”)

	
			
	David DeWalt
	1.    Engagement Assignment
2.    Engagement Assignment
3.    Engagement Assignment

	12.5% PSU Grant
12.5% PSU Grant
12.5% PSU Grant

	David DeWalt
	Phone conversations with customers, as requested by Forescout

	 

	TBD 
Night Dragon associate
	Business Development Analysis

	12.5% PSU Grant

Upon completion of each deliverable from June 5, 2020 –June 4, 2021, Forescout will certify acceptance of each deliverable within sixty (60) days upon notice of receipt of such deliverable. Upon Forescout’s certification of acceptance of a deliverable, the corresponding portion of the PSU grant will vest. Notwithstanding the foregoing, if the Company has not requested all Year 2 Deliverables (including any Year 1 Deliverables that have become Year 2 Deliverables) to be performed by Mr. DeWalt by June 4, 2021, such Year 2 Deliverable will be deemed completed and accepted as of June 4, 2021.  

		
	7.
	CHANGE REQUESTS: Any changes to this SOW must be agreed in writing upon by both parties pursuant to the Agreement.

IN WITNESS WHEREOF, the parties have executed this SOW as of the day and year set forth above.  This SOW may be executed in counterparts.

        
	
			
	 
	 
	Forescout Confidential

	Forescout Consulting Agreement (Company) Std_2.1.19    
	 
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	Consultant:
	NIGHT DRAGON II, LLC
	 
	FORESCOUT TECHNOLOGIES, INC.

	By:
	/s/ David DeWalt
	 
	By:
	/s/ Theresia Gouw

	Name:
	David DeWalt
	 
	Name:
	Theresia Gouw

	Title:
	CEO
	 
	Title:
	Chair of the Board

	Date:
	June 5, 2019
	 
	Date:
	June 6, 2019

        
	
			
	 
	 
	Forescout Confidential

	Forescout Consulting Agreement (Company) Std_2.1.19    
	 
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 Exhibit 4.1 

[Face of Security] 
 FEDERAL
REALTY INVESTMENT TRUST 
 3.20% Note due 2029 
  

			
	CUSIP No. 313747 AZ0	  	$300,000,000

 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK,
NEW YORK) (THE “DEPOSITORY”) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND SUCH NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

UNLESS AND UNTIL THIS NOTE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITORY TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR OF THE DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR. 

THIS NOTE WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $2,000 AND INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF. 

FEDERAL REALTY INVESTMENT TRUST, a Maryland real estate investment trust (herein referred to as the “Company,” which term includes
any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to Cede & Co. or registered assigns the principal sum of Three Hundred Million Dollars ($300,000,000) on
June 15, 2029 (the “Stated Maturity Date”) or the date fixed for earlier redemption (the “Redemption Date,” and together with the Stated Maturity Date with respect to principal repayable on such date, the “Maturity
Date”), and to pay interest on the outstanding principal amount thereof from June 7, 2019 or from the most recent interest payment date to which interest has been paid or duly provided for, semi-annually on June 15 and
December 15 in each year (each, an “Interest Payment Date”), commencing December 15, 2019, at the rate of 3.20% per annum, until the principal hereof is paid or duly provided for. The interest so payable, and punctually paid or
duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Holder in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest, which shall be on June 1 and December 1 (whether or not a Business Day, as defined below), as the case may be, next preceding such Interest Payment Date at the office or agency of the Company maintained for such purpose;
provided, however, that such interest may be paid, at the Company’s option, by mailing a check to such Holder at its registered address or by transfer of 

 
funds to an account maintained by such Holder within the United States. Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such
Regular Record Date, and may be paid to the Holder in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee
referred to on the reverse hereof, notice whereof shall be given to Holders of Notes of this series not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements
of any securities exchange on which the Notes of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 
 The principal of this
Note payable on the Stated Maturity Date or the principal of, premium, if any, and, if the Redemption Date is not an Interest Payment Date, interest on this Note payable on the Redemption Date will be paid against presentation of this Note at the
office or agency of the Company maintained for that purpose in the Borough of Manhattan, The City of New York, in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private
debts. 
 Interest payable on this Note on any Interest Payment Date and on the Maturity Date, as the case may be, will include interest
accrued from and including the next preceding Interest Payment Date in respect of which interest has been paid or duly provided for (or from and including June 7, 2019, if no interest has been paid on this Note) to but excluding such Interest
Payment Date or the Maturity Date, as the case may be. If any Interest Payment Date or the Maturity Date falls on a day that is not a Business Day, principal, premium, if any, and/or interest payable with respect to such Interest Payment Date or
Maturity Date, as the case may be, will be paid on the next succeeding Business Day with the same force and effect as if it were paid on the date such payment was due, and no interest shall accrue on the amount so payable for the period from and
after such Interest Payment Date or Maturity Date, as the case may be. “Business Day” means any day, other than a Saturday or Sunday, on which banks in The City of New York and the City of Charlotte, State of North Carolina, are not
required or authorized by law or executive order to close. 
 All payments of principal, premium, if any, and interest in respect of this
Note will be made by the Company in immediately available funds. 
 Reference is hereby made to the further provisions of this Note set
forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless
the Certificate of Authentication hereon has been executed by the Trustee by manual signature of one of its authorized signatories, this Note shall not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose. 

[This space intentionally left blank] 

  
 2 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

Dated: June     , 2019 
  

			
	FEDERAL REALTY INVESTMENT TRUST
		
	By:	 	  

		 	Donald C. Wood
		 	Trustee
		
	By:	 	  

		 	Daniel Guglielmone
		 	Executive Vice President-Chief Financial Officer and Treasurer

  

	
	 Attest:
  

    

	Dawn M. Becker
	Executive Vice President-General Counsel and Secretary

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is the Note of the series designated therein referred to in the within-mentioned Indenture. 

Dated: June     , 2019 
  

			
	U.S. BANK NATIONAL ASSOCIATION, as Trustee
		
	By:	 	  

		 	Authorized Signatory

 [Reverse of Security] 

FEDERAL REALTY INVESTMENT TRUST 

3.20% Note due 2029 
 This Note
is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of September 1, 1998 (herein called the
“Indenture”), between the Company and U.S. Bank National Association, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture with respect to the series of which this Note is a
part), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the
Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Note is one of the duly authorized series of Securities designated as “3.20% Notes due 2029” (collectively, the
“Notes”), and the aggregate principal amount of the Notes to be issued under such series is limited to $300,000,000 as of the date hereof (except for Notes authenticated and delivered upon transfer of, or in exchange for, or in lieu of
other Notes). The Company may, without the consent of the Holders of any Securities, create and issue additional notes in the future having the same terms other than the date of original issuance, the issue price and the date on which interest
begins to accrue so as to form a single series with the Notes. The Notes are the unsecured and unsubordinated obligations of the Company and rank equally with all existing and future unsecured and unsubordinated indebtedness of the Company. All
terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
 If an Event of
Default, as defined herein, shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

As used herein: 

“Event of Default” means any one of the following events (whatever the reason for such Event of Default and
whether or not it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): 

(1)    default in the payment of any interest upon or any Additional Amounts payable in respect of the
Notes when such interest or Additional Amounts becomes due and payable, and continuance of such default for a period of 30 days; 

(2)    default in the payment of the principal of (or premium, if any, on) the Notes when it becomes due
and payable at its Maturity; 
 (3)    default in the deposit of any sinking fund payment, when and as
due by the terms of the Notes; 
 (4)    default in the performance, or a breach, of any covenant or
agreement by the Company under the Indenture (other than a covenant or agreement a default in whose 

 
performance or whose breach is elsewhere in this definition of Event of Default specifically dealt with), and continuance of such default or breach for a period of 60 days after there has been
given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the outstanding Notes a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a “Notice of Default” under the Indenture; 

(5)    default under any bond, debenture, note or other evidence of indebtedness for money borrowed by the
Company (including obligations under leases required to be reflected on the balance sheet of the lessee as financing lease liabilities under generally accepted accounting principles but not including any indebtedness or obligations for which
recourse is limited to one or more properties) in an aggregate principal amount in excess of $50,000,000 or under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any indebtedness
for money borrowed by the Company (including such leases but not including such indebtedness or obligations for which recourse is limited to one or more properties) in an aggregate principal amount in excess of $50,000,000 by the Company, whether
such indebtedness now exists or shall hereafter be created, which default shall have resulted in such indebtedness becoming or being declared due and payable prior to the date on which it would otherwise have become due and payable or such
obligations being accelerated, without such acceleration having been rescinded or annulled; 
 (6)    a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 
 (a)    is for relief against
the Company or any Significant Subsidiary in an involuntary case, 
 (b)    appoints a Custodian of the Company or any
Significant Subsidiary or for all or substantially all of either of its property, or 
 (c)    orders the liquidation of
the Company or any Significant Subsidiary, and the order or decree remains unstayed and in effect for 90 days; or 

(7)    the Company or any Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law:

 (a)    commences a voluntary case or proceeding, 

(b)    consents to the entry of an order for relief against it in an involuntary case or proceeding, 

(c)    consents to the appointment of a Custodian of it or for all or substantially all of its property, or 

(d)    makes a general assignment for the benefit of its creditors. 

  
 5 

 The defeasance and covenant defeasance provisions of the Indenture apply to the Notes. The
Notes will not be entitled to the benefits of any sinking fund. 
 The Notes are subject to redemption at any time, in whole or in part, at
the election of the Company, at a redemption price equal to (x) if the Notes are redeemed before March 15, 2029 (the “Par Call Date”), the greater of (1) 100% of the principal amount of the Notes being redeemed, or (2) as
determined by the Quotation Agent (as defined below), the sum of the present values of the remaining scheduled payments of principal and interest (not including any portion of such payments of interest accrued as of the Redemption Date) on the Notes
to be redeemed, assuming that such Notes matured on, and that interest on such Notes was payable on, the Par Call Date, discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined below) plus 20 basis points (twenty one-hundredths of one percent) plus, in each case,
accrued interest thereon to, but excluding, the Redemption Date or (y) if the Notes are redeemed on or after the Par Call Date, 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to, but excluding, the
Redemption Date; provided, however, that installments of interest on this Note whose Stated Maturity Date is on or prior to such Redemption Date will be payable to the Holder of this Note, or one or more Predecessor Securities, of record at the
close of business on the relevant Record Dates referred to on the face hereof, all as provided in the Indenture. 
 As used herein: 

“Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per year equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as
having a maturity comparable to the remaining term of the Notes to be redeemed (assuming for this purpose that such Notes matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Notes. 

“Comparable Treasury Price” means, with respect to any Redemption Date, (1) the average of the Reference
Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Trustee obtains fewer than five such Reference Treasury Dealer quotations, the average of
all such Quotations. 
 “Quotation Agent” means the Reference Treasury Dealer appointed by the Company. 

“Reference Treasury Dealer” means a Primary Treasury Dealer selected by each of (1) BofA Securities,
Inc., Jefferies LLC and U.S. Bancorp Investments, Inc. and their 

  
 6 

 
respective successors; provided, however, that if any Reference Treasury Dealer ceases to be a primary U.S. Government securities dealer (a “Primary Treasury Dealer”), the Company will
substitute therefor another Primary Treasury Dealer; and (2) any two other Primary Treasury Dealers selected by the Company. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any
Redemption Date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury
Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 Notice of any redemption of the Notes
will be given by mail to Holders of Securities, not less than 15 nor more than 60 days prior to the Redemption Date, all as provided in the Indenture. 

In the event of redemption of this Note in part only, a new Note or Notes for the unredeemed portion hereof shall be issued in the name of the
Holder hereof upon the cancellation hereof. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the Securities under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority of the aggregate
principal amount of all Securities issued under the Indenture at the time Outstanding and affected thereby. The Indenture also contains provisions permitting the Holders of not less than a majority of the aggregate principal amount of the
Outstanding Securities, on behalf of the Holders of all such Securities, to waive compliance by the Company with certain provisions of the Indenture. Furthermore, provisions in the Indenture permit the Holders of not less than a majority of the
aggregate principal amount, in certain instances, of the Outstanding Securities of any series to waive, on behalf of all of the Holders of Securities of such series, certain past defaults under the Indenture and their consequences. Any such consent
or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and other Notes issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Note. 
 No reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of (and premium, if any) and interest on this Note at the times, places and rate, and in the coin or currency, herein
prescribed. 
 The Company will not, and will not permit any Subsidiary to, incur any Debt (as defined below) if, immediately after giving
effect to the incurrence of such Debt and the application of the proceeds thereof, the aggregate principal amount of all outstanding Debt of the Company and its Subsidiaries on a consolidated basis determined in accordance with generally accepted
accounting principles is greater than 60% of the sum of (without duplication) (i) Total Assets as of the end of the calendar quarter covered in the Company’s Annual Report on Form 

  
 7 

 
10-K or Quarterly Report on Form 10-Q, as the case may be, most recently filed with the Securities and Exchange
Commission (or, if such filing is not permitted under the Securities Exchange Act of 1934, with the Trustee) prior to the incurrence of such additional Debt and (ii) the purchase price of any real estate assets or mortgages receivable acquired,
and the amount of any securities offering proceeds received (to the extent such proceeds were not used to acquire real estate assets or mortgages receivable or used to reduce Debt), by the Company or any Subsidiary since the end of such calendar
quarter, including those proceeds obtained in connection with the incurrence of such additional Debt. 
 In addition to the foregoing
limitation on the incurrence of Debt, the Company will not, and will not permit any Subsidiary to, incur any Debt secured by any mortgage, lien, charge, pledge, encumbrance or security interest of any kind upon any property of the Company or any
Subsidiary if, immediately after giving effect to the incurrence of such Debt and the application of the proceeds thereof, the aggregate principal amount of all outstanding Debt of the Company and its Subsidiaries on a consolidated basis which is
secured by any mortgage, lien, charge, pledge, encumbrance or security interest on property of the Company or any Subsidiary is greater than 40% of the sum of (without duplication) (1) Total Assets as of the end of the calendar quarter covered
in the Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most recently filed with the Securities and Exchange Commission
(or, if such filing is not permitted under the Securities Exchange Act of 1934, with the Trustee) prior to the incurrence of such additional Debt and (2) the purchase price of any real estate assets or mortgages receivable acquired, and the
amount of any securities offering proceeds received (to the extent such proceeds were not used to acquire real estate assets or mortgages receivable or used to reduce Debt), by the Company or any Subsidiary since the end of such calendar quarter,
including those proceeds obtained in connection with the incurrence of such additional Debt; provided, however, that for purposes of this limitation, the amount of obligations under capital leases shown as a liability on the Company’s
consolidated balance sheet shall be deducted from Debt and from Total Assets. 
 Furthermore, the Company will not, and will not permit any
Subsidiary to, incur any Debt if the ratio of Consolidated Income Available for Debt Service (as defined below) to the Annual Debt Service Charge (as defined below) for the four consecutive fiscal quarters most recently ended prior to the date on
which such additional Debt is to be incurred shall have been less than 1.5 to 1, on an unaudited pro forma basis after giving effect thereto and to the application of the proceeds therefrom, and calculated on the assumption that: (i) such Debt
and any other Debt incurred by the Company and its Subsidiaries since the first day of such four-quarter period and the application of the proceeds therefrom, including to refinance other Debt, had occurred at the beginning of such period;
(ii) the repayment or retirement of any other Debt by the Company and its Subsidiaries since the first day of such four-quarter period had been repaid or retired at the beginning of such period (except that, in making such computation, the
amount of Debt under any revolving credit facility shall be computed based upon the average daily balance of such Debt during such period); (iii) in the case of Acquired Debt or Debt incurred in connection with any acquisition since the first day of
such four-quarter period, the related acquisition had occurred as of the first day of such period with the appropriate adjustments with respect to such acquisition being included in such unaudited pro forma calculation; and (iv) in the case of
any acquisition or disposition by the Company or its 

  
 8 

 
Subsidiaries of any asset or group of assets since the first day of such four-quarter period, whether by merger, stock purchase or sale, or asset purchase or sale, such acquisition or disposition
or any related repayment of Debt had occurred as of the first day of such period with the appropriate adjustments with respect to such acquisition or disposition being included in such unaudited pro forma calculation. 

Furthermore, the Company and its Subsidiaries taken as a whole, will, at all times maintain an Unencumbered Total Asset Value (as defined
below) in an amount not less than 150% of the aggregate outstanding principal amount of the unsecured Debt of the Company and its Subsidiaries, taken as a whole. 

As used herein, 

“Acquired Debt” means Debt of a Person (i) existing at the time such Person becomes a Subsidiary or
(ii) assumed in connection with the acquisition of assets from such Person, in each case, other than Debt incurred in connection with, or in contemplation of, such Person becoming a Subsidiary or such acquisition. Acquired Debt shall be deemed
to be incurred on the date of the related acquisition of assets from any Person or the date the acquired Person becomes a Subsidiary. 

“Annual Debt Service Charge” as of any date means the maximum amount which is payable in any period for
interest on, and original issue discount of, Debt of the Company and its Subsidiaries and the amount of dividends which are payable in respect of any Disqualified Stock (as defined below). 

“Capital Stock” means, with respect to any Person, any capital stock (including preferred stock), shares,
interests, participations or other ownership interests (however designated) of such Person and any rights (other than debt securities convertible into or exchangeable for corporate stock), warrants or options to purchase any thereof. 

“Consolidated Income Available for Debt Service” for any period means Funds from Operations (as defined below)
of the Company and its Subsidiaries plus amounts which have been deducted for interest on Debt of the Company and its Subsidiaries. 

“Debt” means any indebtedness of the Company, or any Subsidiary, whether or not contingent, in respect of
(without duplication) (i) borrowed money evidenced by bonds, notes, debentures or similar instruments, (ii) indebtedness secured by any mortgage, pledge, lien, charge, encumbrance or any security interest existing on property owned by the
Company or any Subsidiary, (iii) the reimbursement obligations, contingent or otherwise, in connection with any letters of credit actually issued or amounts representing the balance deferred and unpaid of the purchase price of any property or
services, except any such balance that constitutes an accrued expense or trade payable, or all conditional sale obligations or obligations under any title retention agreement, (iv) the principal amount of all obligations of the Company or any
Subsidiary with respect to redemption, repayment or other repurchase of any Disqualified Stock or (v) any lease of property by the Company or any Subsidiary as lessee which is reflected on the 

  
 9 

 
Company’s consolidated balance sheet as a financing lease liability in accordance with generally accepted accounting principles to the extent, in the case of items of indebtedness under
(i) through (iii) above, that any such items (other than letters of credit) would appear as a liability on the Company’s consolidated balance sheet in accordance with generally accepted accounting principles, and also includes, to the
extent not otherwise included, any obligation of the Company or any Subsidiary to be liable for, or to pay, as obligor, guarantor or otherwise (other than for purposes of collection in the ordinary course of business or for the purposes of
guaranteeing the payment of all amounts due and owing pursuant to leases to which the Company is a party and has assigned its interest, provided that such assignee of the Company is not in default of any amounts due and owing under such
leases), Debt of another Person (other than the Company or any Subsidiary) (it being understood that Debt shall be deemed to be incurred by the Company or any Subsidiary whenever the Company or such Subsidiary shall create, assume, guarantee or
otherwise become liable in respect thereof). 
 “Disqualified Stock” means, with respect to any Person, any
Capital Stock of such Person which by the terms of such Capital Stock (or by the terms of any security into which it is convertible or for which it is exchangeable or exercisable), upon the happening of any event or otherwise (i) matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, (ii) is convertible into or exchangeable or exercisable for Debt or Disqualified Stock or (iii) is redeemable at the option of the holder thereof, in whole or in
part, in each case on or prior to the Stated Maturity of the Notes. 
 “Funds from Operations” for any
period means income available to common shareholders before depreciation and amortization of real estate assets and before extraordinary items less gain on sale of real estate. 

“Total Assets” as of any date means the sum of (i) the Company’s and its Subsidiaries’
Undepreciated Real Estate Assets and (ii) all other assets of the Company and its Subsidiaries determined in accordance with generally accepted accounting principles (but excluding goodwill). 

“Undepreciated Real Estate Assets” as of any date means the cost (original cost plus capital improvements) of
real estate assets and finance lease right of use assets of the Company and its Subsidiaries on such date, before depreciation and amortization determined on a consolidated basis in accordance with generally accepted accounting principles. 

“Unencumbered Total Asset Value” as of any date means the sum of (i) those Undepreciated Real Estate
Assets not encumbered by any mortgage, lien, charge, pledge or security interest and (ii) all other assets of the Company and each of its Subsidiaries on a consolidated basis determined in accordance with generally accepted accounting
principles (but excluding intangibles and accounts receivable), in each case which are unencumbered by any mortgage, lien, charge, pledge or security interest; provided, however, that in determining Unencumbered Total Asset Value for purposes of the

  
 10 

 
covenant relating to the maintenance of Unencumbered Total Asset Value, all investments by the Company and any of the Company’s subsidiaries in unconsolidated joint ventures, unconsolidated
limited partnerships, unconsolidated limited liability companies and other unconsolidated entities accounted for financial reporting purposes using the equity method of accounting in accordance with U.S. generally accepted accounting principles
shall be excluded from Unencumbered Total Asset Value. 
 Furthermore, the Company will, and will cause each of its Subsidiaries to,
maintain insurance with financially sound and reputable insurance companies against such risks and in such amounts as is customarily maintained by Persons engaged in similar businesses or as may be required by applicable law, and the Company will
from time to time deliver to the Administrative Agent (as such term is defined in the Credit Agreement, dated as of July 7, 2011, between the Company and the various financial institutions named therein, as amended), upon its request a detailed
list, together with copies of all policies of the insurance then in effect, stating the names of the insurance companies, the amounts and rates of the insurance, the dates of the expiration thereof and the properties and risks covered thereby. 

As provided in the Indenture and subject to certain limitations therein and herein set forth, the transfer of this Note is registrable in the
Security Register of the Company upon surrender of this Note for registration of transfer at the office or agency of the Company in any place where the principal of (and premium, if any) and interest on this Note are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or by his attorney duly authorized in writing, and thereupon one or more new Notes, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 
 As provided in the
Indenture and subject to certain limitations therein and herein set forth, this Note is exchangeable for a like aggregate principal amount of Notes of different authorized denominations but otherwise having the same terms and conditions, as
requested by the Holder hereof surrendering the same. 
 The Securities of this series are issuable only in registered form without coupons
in denominations of $2,000 and any integral multiples of $1,000 in excess thereof. 
 No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may
treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

  
 11 

 The Indenture and the Notes shall be governed by and construed in accordance with the laws
of the State of New York applicable to agreements made and to be performed entirely in such State. 

  
 12

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