Document:

Exhibit

Exhibit 10.13

CUSTOM PRODUCTS AGREEMENT 
Integration and Services
This Agreement is entered into as of March 7, 2007 by and between, Forescout Technologies, Inc. (“Customer”) with its principal place of business at 10001 North De Anza Blvd., Ste. 220, Cupertino, CA 95014 and the OEM Computing Solutions Group of Arrow Electronics, Inc. (“Arrow”) with a place of business at 50 Marcus Drive, Melville, New York 11747-3509.
The Customer and Arrow hereby agree as follows:
1.    Work  Arrow will procure components, tooling and other supplies required and will assemble in Arrow assembly centers product(s) (“Products”) ordered by the Customer.  In addition, Customer may procure services (“Services”) associated with the support of the Products by executing mutually agreed upon statements of work (“SOW’s”), which will define the scope of and pricing for the Services.  Any such SOW’s shall be attached hereto as Exhibit A or may be incorporated at a later date by amendment to this Agreement.  To the extent that the terms of a SOW conflict with the terms of this Agreement, the terms of the SOW will prevail.  For each Product or revision the Customer will provide specifications including but not limited to a bill of materials, assembly drawings, test specifications and an approved subcontractor and vendor list.  The work will be performed in accordance with ISO-9001:2000 standards.
2.    Parts  Arrow will identify all parts required for any bill of materials. All parts required in connection with the work acquired or supplied by Arrow will be in compliance with the specifications, except parts, other materials or equipment that are supplied by Customer (“Customer Components”).  Arrow shall bear the risk of loss for Customer Components while in Arrow’s care and custody.  Parts may or may not be procured by Arrow from suppliers for whom Arrow serves as an authorized distributor and may be designated by Arrow as non-cancelable/non-returnable (“NC/NR”).  The parties shall agree to the purchase of any such parts by signing Arrow’s NC/NR Parts Agreement as applicable. From time-to-time, Arrows’ manufacturers will notify Arrow of their intention to discontinue the manufacture of certain parts (“EOL Parts”).  For such EOL Parts, Customer will give Arrow its purchase order for the entire quantity covered by the applicable NC/NR Parts Agreement.  Releases of EOL Parts will be scheduled as agreed upon between the parties, provided that the total quantity of such parts will be delivered within the schedule(s) set forth in the applicable NC/NR’s.  Should Customer not take delivery of such parts by the delivery date specified on the applicable NC/NR or in the case of blanket PO’s, as agreed upon between the parties, Customer agrees that the inventory carrying charge amounts specified in Section 12 (ii) will apply.  Customer is responsible for purchasing from Arrow all NC/NR parts procured or on non-cancelable order by Arrow for Customer’s Product(s).
3.    Engineering Change Orders  Any engineering change order (“ECO”) must be made in writing, signed and dated by the Customer.  Arrow will acknowledge the ECO and will reply with an effective date.  The Customer will remain liable for any unused NC/NR inventory affected by an ECO, including any WIP or any Parts on open order, which cannot be returned to the manufacturer, in support of the Forecast.
4.    Terms of Sale  All quotations and sales by Arrow are subject to Arrow’s then current Terms and Conditions of Sale.  To the extent there is any conflict between this Agreement and the Terms and 

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Conditions of Sale, the provisions of this Agreement will prevail.  Payment will be net forty-five (45) days from the date of invoice, payable in US dollars.  The price for Product(s) will be as agreed upon by Arrow and Customer from time to time as set forth in purchase orders issued by Customer and accepted by Arrow.  Customer will be responsible for payment of all taxes relating to the sale of Products or Services.  Products will be shipped F.O.B. Arrow’s facility, with freight payment obligations and risk of loss or damage to pass to Customer upon shipment.  Upon Customer’s written request, Arrow shall use Customer’s freight carrier account.
5.    Term and Termination  This Agreement will commence as of the date above written and will continue in effect until such time as either party hereto, with or without cause, terminates this Agreement by giving ninety (90) days prior written notice to the other party.  The Customer will remain liable for any Products, NC/NR Parts and/or work in progress (“WIP”) affected by the termination of this Agreement.  Termination of this Agreement will not affect the obligations of either party that exist as of the effective date of termination.  If Customer requests that Arrow stock any finished goods, Customer agrees to accept delivery of and pay for all finished goods upon termination of this Agreement or sixty (60) days after Customer’s last order for such finished goods (or applicable version or revision thereof), whichever is earlier.  For Services performed under this Agreement, (i) if Arrow terminates any SOW or this Agreement without cause, Arrow will either reimburse Customer, on a pro-rated basis, the fees paid by Customer relating to that part of any Service period that extends beyond the effective date of termination or continue to support any Service commitments made by Arrow prior to effective date of termination; (ii) if Customer terminates any SOW, Arrow will continue to support any Service commitments made by Arrow prior to effective date of termination.
6.    Warranty  For Products, Arrow warrants for a period of one (1) year from date of shipment to Customer that the Products are manufactured or assembled pursuant to the specifications and that the Products will be free from defects in workmanship.  For Services, Arrow warrants for a period of ninety (90) days from date of shipment of any of the Products repaired that such Products will be free from defects in workmanship.  With respect to any parts acquired by Arrow that are incorporated into the Products, Arrow agrees to pass through to Customer the warranty, if any, originally provided to Arrow by the manufacturer of the part subject to the terms, conditions and limitations of any such warranty.  No warranty will apply to Products that are altered or subjected to misuse, negligence or abnormal stress.  With respect to first articles, prototypes, pre-production units, Customer provided parts, test units or other similar products, Arrow makes no representations or warranties whatsoever.  ARROW MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE COMPONENTS, PRODUCTS OR ANY SERVICES PROVIDED UNDER THIS AGREEMENT, AND DISCLAIMS ALL OTHER WARRANTIES INCLUDING THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT.
7.    Returns  Due to the custom nature of Products, orders for Products are non-cancelable and Products are non-returnable except if they do not comply with the above warranty, and provided that Customer obtains a return material authorization (“RMA”) from Arrow prior to returning the Product.  Unless the parties in an attached SOW agree upon another process/remedy, any Product returned to Arrow will be repaired or replaced, or the purchase price refunded or credited, at Arrow’s option, which will be 

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Customer’s sole remedy for any Product failure.  If returned Products are found free of defects, Customer will incur reasonable inspection charges at the discretion of Arrow.
8.    Intellectual Property  i) Customer is the owner (or licensee as the case may be) of any designs, drawings, software or other intellectual property furnished by Customer to Arrow in connection with this Agreement.  Customer grants to Arrow a perpetual license under any copyright, patent, trade secret or other proprietary right as may be necessary for any manufacture or assembly of Products based in whole or part on such intellectual property.  Customer represents and warrants that such manufacture or assembly does not infringe the proprietary rights of any third party and Customer has the right and power to enter into this Agreement.  Customer agrees to indemnify Arrow and hold Arrow harmless from any cost, loss, or damage (including attorneys’ fees and court costs) that result from a breach or alleged breach of any of these representations and warranties or other obligations contained in this Agreement.  ii) Arrow is the owner of any designs, drawings, derivative works, software or other intellectual property created by Arrow in connection with the performance of engineering services or other work under this Agreement.  Arrow grants to Customer a perpetual license to use such intellectual property to the extent necessary for Customer to use Products provided by Arrow hereunder.  Arrow represents and warrants that such intellectual property does not infringe the proprietary rights of any third party and Arrow has the right and power to enter into this Agreement.  Arrow agrees to indemnify Customer and hold Customer harmless from any cost, loss, or damage (including attorneys’ fees and court costs) that result from a breach or alleged breach of any of these representations and warranties or other obligations contained in this Agreement.
9.    Forecast, Parts, Inventory Levels, Evaluation Units, Advanced
Replacement Units.
(a)    Forecast/Inventory Levels.  Customer will issue a rolling forecast (“Forecast”) once per calendar month which specifies all work to be completed within the ninety (90) day period commencing on the date of the Forecast.  Arrow shall stock thirty (30) days worth of parts(s) specified in the Forecast (“On-Hand Inventory”).  Arrow shall order thirty (30) days worth of parts(s) specified in the Forecast and such part(s) shall be scheduled to replenish On-Hand Inventory as it is consumed.  Subject to Section 11, each Forecast will be a binding commitment by Customer to purchase from Arrow all Products listed in the Forecast for the ninety (90) day period.  Arrow will be entitled to rely on the Forecast in purchasing parts and other supplies required to perform the work described in the Forecast and to produce finished goods inventory (“FGI), subject only to the terms and conditions of this Agreement.  Arrow and Customer will mutually agree upon FGI levels that-will accurately support Customer’s demand.
(b)    Evaluation Units.  The parties will mutually agree to the number of Product evaluation units to be produced (“Evaluation Units).  Evaluation Units will be produced as exact replicas of Product production units and will be invoiced to Customer at time of production.  Evaluation Units will be held in Arrow’s inventory as consigned Customer-owned Product and will be shipped in accordance with Customer’s directions.  Customer’s will be responsible for all shipping and export costs associated with outbound shipment of Evaluation Units and Customer’s end users will be responsible for all shipping and import/export costs associated with incoming shipments.  Additional details of the Evaluation Unit process and cost will be detailed on an attached SOW.

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(c)    Advanced Replacement Units.  The parties will mutually agree to the number of Product advanced replacement units that will be produced and held in Arrow’s inventory (“AWR Units”).  AWR Units will be invoiced as produced and will be held in Arrow’s inventory as consigned Customer-owned Product.  Arrow will be responsible for all shipping costs, excluding, pursuant to Section 11 of the attached SOW Advanced Exchange & Evaluation Equipment that is also f6und to be DOA, any duties/taxes resulting from such shipment, for AWR Units returned from End Users or Customer to Arrow.  Customer will be responsible for all shipping costs, any duties/taxes resulting from such shipment for defect free Evaluation Equipment shipped and returned by End User.  Additional details of the AWR Unit process and cost will be detailed on an attached SOW.
10.    Order Fulfillment.  Customer will issue blanket purchase orders (“ Blanket PO’s”) which will specify the purchase order number, part number, applicable specifications, quantity, and price of Products previously identified in the Forecast.  Customer will authorize Arrow to release a specific order against a Blanket PO.  Such authorization shall be in writing per email, mail or fax and will contain the delivery address.  Products will be shipped in accordance with Section 4.  Shipment of Products will be made using a first-in, first-out basis.  Arrow will provided same-day fulfillment provided that Arrow receives Customer’s PO for shipment of finished ‘goods by 3 PM local Phoenix, AZ time at Arrow’s warehouse.  Arrow will provide advanced shipping notices as requested by Customer for all finished goods shipments.
11.    Cancellation/Rescheduling.  Except with respect to components of Products which are associated with WIP, FGI or have been previously identified to Customer as NC/NR, if Customer requests Arrow to cancel delivery of components Arrow will make reasonable commercial efforts to return the affected components to their supplier and cancel Arrow’s orders for such components.  Customer is not obligated to pay Arrow for components that are returned or components on order, which are canceled at no cost to Arrow.  Notwithstanding anything contrary in this Agreement, for Product composed solely of franchised components (components procured by Arrow from manufacturers with which Arrow has a distribution agreement and return/stock rotation privileges) upon written or email notice, Arrow will grant Customer the ability to reschedule orders as follows: within the first 30 days of forecast, Customer may reschedule up to 20% of the forecasted quantities; within 60 days of notice Customer may reschedule up to 30% of forecasted quantities; within 90 days of the forecast Customer may reschedule up to 50% of forecasted quantities. For Finished goods, NCNR and EOL components, Arrow will ship completed Products and affected components to Customer and Customer will pay for (i) Products that have been shipped by Arrow or are in Arrow’s possession as of the cancellation date that have been produced for the canceled order; and (ii) all affected components at Arrow’s normal resale prices for such components.  Customer authorizes Arrow to bill these charges within sixty (60) days of the effective date of Customer’s cancellation.
12.    Finished Goods Inventory/Non-cancelable/Non-returnable Inventory.  Notwithstanding anything to the contrary in this Agreement in the event that, (i) finished goods inventory (hereinafter “FGI”) is held in support of this Agreement for more than thirty (30) days, or (ii) On-Hand Inventory is held in support of this Agreement for more than sixty (60) days, or Customer fails to take delivery of EOL Parts on the delivery date as specified on the NC/NR, Arrow will invoice Customer on a monthly basis, and Customer agrees to pay Arrow, an inventory carrying charge equal to one and one-half percent 

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(1.5%) of the extended price of the value of the total of any such inventory balance remaining in Arrow’s inventory at the end of every Arrow fiscal month or for FGI and EOL Parts Arrow reserves the right to ship and invoice to Customer any such parts or FGI. Terms of any such payments shall be net thirty (45 ) days from the date of invoice, payable in U.S. dollars.  This charge will be in addition and separate from any other fees invoiced by Arrow.
13.    Indemnification.  Each party will be solely responsible for and will indemnify and hold the other party harmless from loss or bodily injury to persons or property (real or tangible) to the extent the loss or injury is caused by the negligent acts or omissions or intentional wrongdoing of its employees, subcontractors or agents (except to the extent caused by the negligent acts, omissions, or intentional wrongdoing of the other party and its employees, subcontractors or agents) and arises out of performance of this Agreement; provided the indemnified party gives the other party prompt written notice of the claim, sole control of the proceedings or settlement, and reasonable cooperation in the defense or settlement negotiations.
14.    LIABILITY LIMITATION  NOTWITHSTANDING ANYTHING ELSE IN THIS AGREEMENT, NEITHER PARTY WILL BE LIABLE UNDER ANY SECTION OF THIS AGREEMENT OR UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR INCIDENTAL, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, LOST PROFITS, LOST BUSINESS, OR COST OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES.
15.    Governing Law; Dispute Resolution.  This Agreement will in all respects be governed by and construed in accordance with the laws of the State of New York, excluding that body of laws known as conflict of laws.  The prevailing party in any legal action or proceeding to enforce this Agreement will be entitled to recover from the non-prevailing party its reasonable attorneys’ fees, and related costs and disbursements, incurred in connection with such proceeding or the enforcement of this Agreement.  Both parties agree to waive trial by jury.
16.    Miscellaneous.
16.1    Independent Contractors.  The parties are and will be independent contractors to one another, and nothing herein will be deemed to cause this agreement to create an agency, partnership, joint venture or any other relationship between the parties.
16.2    Assignment.  Neither party may assign, delegate or other wise transfer any of its rights or obligation under this Agreement without the other party’s prior written approval, which will not be unreasonably withheld.
16.3    Notices.  Notices or other communications under this Agreement will be in writing and will be effective when delivered personally or by overnight courier, or mailed, postage prepaid, by certified or registered mail to each party at the address set forth above (or to such other address as either party may from time to time provide the other).

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16.4    Force Majeure.  Non-performance (other than timely payment) under this Agreement will be excused, and neither party will bear any resulting liability to the other, to the extent that such performance is rendered commercially impracticable or delayed by an act of God or any other cause beyond the reasonable control of the non-performing party.
16. 5    No Solicitation for Employment.  The parties agree that they will not directly solicit for employment each other’s employees during the term of this Agreement and for a period of one (1) year thereafter.
16.6    Quarterly Business Meetings.  The parties agree to meet at mutually agreed upon times and locations no less than once per quarterly to discuss inventory levels, lead times, quality and Product lifecycle issues.
17.    Entire Agreement; Amendment; Severability; and Waiver.  This Agreement represents the entire agreement between the parties concerning the subject matter hereof, and may not be modified except in a writing signed by both parties.  This Agreement supersedes all proposals or quotations, oral or written, and all negotiations, conversations, or discussions between or among the parties relating to the subject matter of this Agreement.  When interpreting this Agreement precedence will be given to the respective parts in the following order: (i) this Agreement; (ii) any exhibits to this Agreement; and (iii) if purchase orders are used to release Product, those portions of the purchase order that are not preprinted.  Any waiver of any provision of this Agreement must be in writing and signed by the party alleged to have waived such provision, and any single waiver will not operate to waive subsequent or other defaults.  The unenforceability of any provision of this Agreement will not affect the remaining provisions or any portions thereof.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the day and year first above written.
	
					
	CUSTOMER: 
	 
	ARROW ELECTRONICS, INC.

	 
	 
	 

	 
	 
	OEM Computing Solutions Group

	 
	 
	 
	 
	 

	By:
	/s/ Ayelet Steinitz
	 
	By:
	/s/ Yvonne Barcewski

	 
	 
	 
	 
	 

	Name:
	Ayelet Steinitz
	 
	Name:
	Yvonne Barcewski

	 
	 
	 
	 
	 

	Title:
	VP, Business Development
	 
	Title:
	Contract Manager OEM

	 
	 
	 
	Computing Solutions Group

	 
	 
	 
	 
	 

	Date:
	3-8-07
	 
	 

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EXHIBIT A
STATEMENT OF WORK (“SOW”)
ADVANCED EXCHANGE & EVALUATION EQUIPMENT
This Statement of Work (“SOW”) sets forth the scope of the Services, applicable prices, requirements and obligations of the parties and incorporates and is subject to the terms and conditions of the Master Services Agreement (“Agreement”) executed by Arrow Electronics, Inc. (“Arrow”) and Forescout, Inc. (“Customer”) dated February 8, 2007 (“Effective Date”).  Unless otherwise mutually agreed by the parties, in the event that the Agreement is terminated, then this SOW shall also terminate.
1.    GENERAL INFORMATION
This document describes Advanced Exchange and Evaluation Equipment services for Customer’s End Users located in North America (United States and Canada) and selected international locations and includes the consignment of appropriate Customer Owned Parts (COP) inventory to meet the management and shipment of replacement and evaluation units in support of Customer’s hardware program requirements.
2.    DEFINITIONS
▪“Equipment” means products identified in Schedule 3
		
	▪
	“Service Call” means a single event for request of Service to a single piece of Equipment at a single location.

▪“Service Commencement Date” means the execution date of this SOW
▪“Customer” means Forescout, Inc..
▪“End User” means Customer’s customer where covered equipment resides
3.    TERM
This SOW is effective on the Effective Date and will remain in force until terminated in accordance with the provisions of this section. The initial term of this SOW shall be one (1) year(s) from the date first set forth above and thereafter, will automatically renew for periods of one (1) year.  Either party may at any time terminate this SOW without cause by giving ninety days (90) prior written notice to the other.
4.    ADVANCED EXCHANGE AND EVALUATION EQUIPMENT
REPLACEMENT
Arrow will render Advanced Exchange and Evaluation Equipment Services (“Services”) as set forth herein for the Equipment identified in Schedule 3 and Customer will be charged the fees as set forth in Schedule 1 in fulfillment of these Services.  Schedule 2 will identify the quantity and pricing for spare parts inventory.

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5.    CUSTOMER RESPONSIBILITIES
		
	a.
	Customer will provide to Arrow an initial allotment of COP inventory of finished goods and parts to be used as dedicated service inventory in support of defective unit repairs and to establish an initial seed stock pool of finished goods inventory.  Arrow and Customer will mutually agree on an amount of inventory and associated minimum and maximum levels to be maintained by Arrow in support of this Service.

		
	b.
	Unless otherwise specified in a separate SOW to the Agreement, Customer will take first call from the End User and perform technical problem determination.  Customer will diagnose End User’s problem to ensure to the best of their ability that only Products with hardware failures or evaluation equipment returns are forwarded to the Arrow Depot Center.

		
	c.
	Customer will notify Arrow via a phone call or mutually agreed upon electronic notification each time hardware Services are required and will include the following details, if applicable, with each request for Service:

i.    End User contact name and shipping address
ii.    End User phone number
iii.    Equipment model number and part number
iv.    Equipment serial number
v.    Quantity of Equipment being returned
		
	vi.
	Problem diagnosis, to include a full description of symptoms describing fault, description of what Customer has done to try and make system operate correctly, and part(s) being shipped

		
	d.
	Customer will perform services to ensure End User returns defective Equipment to designated Depot Repair Center upon receipt of an advanced replacement product.

		
	e.
	Customer or End User will include the RMA number on the outside shipping label of all Equipment returned to Arrow as defective or as evaluation returns.

		
	f.
	Customer or End User will be responsible for initial installation or reinstallation of replacement Equipment, software, or operational procedures unless specifically requested and stipulated as part of this SOW.

		
	g.
	Prior to the Service Commencement Date (as defined in Section 10 below), Customer will provide or verify a list of service inventory that will be included in this Services program as listed on Schedules 1 & 2.  Arrow shall keep a list current 

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and provide in writing, in a mutually agreed upon format, additions and/or deletions of Equipment to the customer on a monthly basis.
		
	h.
	Customer will identify a single Customer contact for service issues.

		
	i.
	Customer will provide Arrow with a new unit and install base volume forecast on a quarterly basis that can be used by Arrow to forecast call, Advanced Exchange shipment and Equipment repair (if applicable) volumes. Such forecasts shall be a rolling six (6) month forecast.  The provision by Customer of such forecasts shall not constitute a commitment by Customer to fulfill such volumes from Arrow, nor does it constitute a commitment by Arrow to support such volumes. Customer acknowledges that Arrow will use these forecasts for planning purposes.

6.    ARROW RESPONSIBILITIES
		
	a.
	Opening Service Call

		
	i.
	Arrow will provide Customer with an assigned Program Manager who will act as the point of contact for Advanced Exchange shipment requests.

		
	ii.
	An end-user experiences a hardware failure with their in-warranty Equipment or authorized to receive evaluation Equipment and initiates a call to the Customer’s service system (unless Arrow providing call center services as specified in a separate SOW).  If deemed a hardware related issue, serviceable under this maintenance contract, Customer will initiate a service event with Arrow.  The Arrow Program Manager receives the call and initiates the processing of the request.

		
	iii.
	Arrow shall confirm receipt and acceptance of each Service Call by assigning an RMA number and providing this RMA number to the Customer.

		
	b.
	Advanced Exchange

		
	i.
	If Arrow receives an Advanced Exchange or Evaluation Equipment request from Customer, Arrow Program Manager will request that the Arrow depot repair facility ship the Advanced Exchange or evaluation Equipment to the End User experiencing the failure or that is authorized to receive an evaluation unit.

		
	ii.
	Arrow will maintain product tracking information and end-user shipping information.

		
	iii.
	Upon receipt of an Advance Exchange unit request, the Arrow Program Manager assigns an RMA# and orders the shipment of the replacement unit for the defective unit to the designated end-user via overnight airfreight for next business day delivery or best available service if next business day 

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delivery service is not available to that location.  If this request is received by 3:00 pm local Phoenix, AZ, then the Equipment will be shipped that day.  If request received after 3:00 pm local Phoenix, AZ, the Equipment will be shipped out the following day
		
	iv.
	Depot Repair facility enters outgoing Advance Exchange replacement or Evaluation Equipment order and shipping into the inventory management system.

		
	v.
	End User site receives Advance Exchange replacement unit and swaps the defective Equipment with the replacement Equipment supplied.

		
	vi.
	End User re-packs and ships the defective Equipment to the Arrow Depot Repair Facility via Arrow’s preferred and predetermined method of shipment, per the AWR Build Plans of such equipment

		
	vii.
	The Depot Repair Center receives the defective Equipment from the End User and inspects for any return shipping damage.

		
	viii.
	The Depot Repair Center matches RMA# and other provided product tracking information with the received defective Equipment to ensure correct Equipment has been received.

		
	ix.
	If the received Equipment does not match the RMA information, Arrow will isolate the Equipment until the mismatch can be resolved with the Customer or End User.  If the Equipment does match the RMA information, Arrow will receive incoming defective Equipment into the inventory management system.

		
	x.
	The Depot Repair Center receives incoming Equipment into the inventory management system.

		
	xi.
	The Depot Repair Center performs a test and screen on each repairable Equipment and associated component parts received to determine status and perform a visual inspection of the cosmetic status of the Equipment in accordance with Arrow’s Visual Cosmetic/Surface Inspection Standard on Advanced Exchange Units described in Schedule 4 of this SOW.

		
	xii.
	If failure isolated to defective part(s), The Depot Repair Center will draw a replacement part(s) from the available production and/or refurbished parts inventory and completes the repair (if applicable) in accordance with the current build plan specifications in effect at that time within five (5) business days of receipt within the Depot Repair Center.

		
	xiii.
	The Depot Repair Center will perform functionality testing in accordance with Customer build plan specifications on repaired Equipment.

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	xiv.
	Arrow repairs defective Equipment (if applicable), applies a warranty seal and places it into inventory where it will be used as replacement Equipment inventory.

		
	xv.
	The Depot Repair Center logs the repaired Equipment into the Inventory Management System as COP available to be used for replacement or evaluation Equipment inventory.

		
	xvi.
	If defective part(s) is covered under manufacturers warranty, Arrow will return to manufacturer for a refurbished or replacement part based on warranty coverage.  If part is not covered under warranty, Arrow will return to manufacturer for price quote to repair the part (if available from manufacturer).  If Customer provides written approval and acceptance of quoted repair charge, Arrow will request a Purchase Order (PO) from Customer and notify manufacturer to perform the required repair.

		
	xvii.
	The Depot Repair Center will perform a functionality test of the repaired or replacement part(s) received from manufacturers.

		
	xviii.
	The Depot Repair will replenish the COP service inventory with the refurbished/repaired part or request a Purchase Order from Customer for additional COP inventory to ensure adequate levels of service inventory are maintained based upon a mutually agreed upon minimum and maximum level of service inventory.

		
	xix.
	Arrow will provide to Customer a failure analysis report on a monthly (or other mutually agreed upon frequency) basis to cover the previous months incidents based on description of failure provided by Customer, Arrow’s inspection of returned part and any root cause failure analysis data provided by manufacturers.

		
	xx.
	Arrow will provide Customer an RMA report on a frequency to be mutually agreed by both parties (but not more frequent than weekly), that will list all RMA’s issued by Arrow for Customer that will includes dates and status of whether the RMA defective units have been received by The Depot Repair Facility.

7.    EQUIPMENT INVENTORY
Any request by the Customer to add, remove or change any Equipment listed on Schedule 2 or Schedule 3 must be made in writing thirty (30) days in advance. Arrow reserves the right to refuse such requests.  Arrow will inform Customer of change(s) to the pricing schedule (Schedules 1 & 2) associated with the addition of Equipment.  Arrow reserves the right to refuse such requests.  Please allow 30 days to entitle Equipment upon receipt of a change request to Schedule 1 &2.

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8.    SPARE PARTS
An inventory of the defined COP based on the configurations for the Equipment identified in Schedule 3 will be defined by the Arrow depot repair center, based on a formula comprised of— component repair/failure rates, target repair service level turnaround times, the current install base, and a three year forecast updated quarterly.  The customer owned reserve of inventory will be held at the depot repair center and used for Advanced Exchange requests and evaluation Equipment requests.  Reviews will be held on a quarterly basis or as required to adjust the COP inventory and procure additional Equipment as needed to ensure an adequate level of inventory is available to fulfill the current volume of Advanced Exchange and evaluation Equipment transaction volumes.
9.    PHYSICAL DAMAGE INSPECTION
When performing defective Equipment repair, if Arrow discovers that the Equipment is malfunctioning due to anything other than a failing internal component, or has been damaged due to fault or neglect on the part of the End User, or damaged during transit to Arrow, Arrow will notify the Customer via a mutually agreed upon established process.  Arrow will offer a price quote for an evaluation service to determine the extent of the damage and cost to repair, at the prevailing time and materials rate.  If accepted by the Customer, Arrow will perform the repair service and will invoice the Customer accordingly.
10.    NOT RESPONSIBLE FOR LOSS OF DATA OR SOFTWARE
Customer is responsible for backing-up all data at client location.  In no event shall Arrow be responsible for any loss of data that may occur while Services are being performed.
11.    EXPORT LICENSING, DUTIES AND TAXES
Customer is responsible for ensuing all Equipment that is supported with Services meets the export licensing and customs requirements to allow shipments into the Customer End User locations. Customer is responsible for all duties, taxes and tariff charges resulting from delivery of Services or shipment of replacement Equipment to the designated End User locations or return shipment of defective Equipment to the Arrow Depot Repair Center.
12.    SERVICE COMMENCEMENT
Customer and Arrow will mutually agree to the date that Services will commence (the “Service Commencement Date”).  Services shall not commence until this SOW has been accepted and signed by duly authorized representatives of both parties.
13.    PRICE AND INVOICE REQUIREMENTS
a.    Pricing outlined in Schedules 1 & 2.

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	b.
	If amounts owed to Arrow become past due, Arrow, in its sole discretion, reserves the right to suspend Services until Customer’s account is current. This right is in addition to any other rights and remedies that Arrow may have under the Agreement.

		
	c.
	Invoices will be sent to Customer at the following address:

Customer Name: ForeScout Technologies                                                              
Attention: Accounts Payable                                                                                   
Billing Address: 10001 NORTH DE ANZA BLVD, SUITE 220                            
City, State, Zip: Cupertino, CA 95014                                                                     
(Billing Contact Phone #): 408-213-3191                                                                
		
	d.
	Primary Customer Contact

Name: Ira Madnick                                             
Title: Director of Operations                               

	
					
	AGREED AND ACCEPTED:
	 
	 

	ARROW ELECTRONICS, INC.
	 
	FORESCOUT TECHNOLOGIES, INC.

	 
	 
	 
	 
	 

	By:
	/s/ Yvonne Barcewski
	 
	By:
	/s/ Ayelet Steinitz

	 
	 
	 
	 
	 

	Name:
	Yvonne Barcewski
	 
	Name:
	Ayelet Steinitz

	 
	 
	 
	 
	 

	Title:
	Contract Manager
	 
	Title:
	VP, Business Developments

	 
	 
	 
	 
	 

	Date:
	3-21-07
	 
	Date:
	3-8-07

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SCHEDULE 1 — PRICING SCHEDULE
ADVANCED EXCHANGE & EVALUATION EQUIPMENT

	
		
	Service Period:
	Monday through Friday, 8:00 AM to 5:00 PM MST.  Advanced Exchange & Evaluation requests received by 3:00 pm local Phoenix, AZ, will be shipped the same day for Next Business Day delivery shipping where NBD delivery is available.

Fee Schedule:
	
		
	Advanced Exchange Program Fees
	 

	Refurbished Inventory Management Fee (limit of 10 units)
	$Waived

	Advanced Replacement & Evaluation Handling Fee
	$19.00 Arrow Pays shipping

	In-Warranty Expedited Repair & Refurbishment Fee
	$130.00 plus parts

	Out of Warranty Repair & Refurbishment Fee
	$205.88 plus parts

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	SCHEDULE 2 - SPARE PARTS PRICING SCHEDULE

	MFG
	MFG P/N
	Descripton
	QTY
	 
	 
	Parts Fee

	 
	 
	 
	 
	 
	 

	 
	HW-200-02
	CT100 Hardware Components
	 
	 

	Intel
	SR1530AHNA
	Intel SR 1530 Pfixed Drive, Aspen Hill/Hawk Juntion UP 1U LX Platform, ships with North American Power Cord, Includes Basic Rail Kit and passive heatsink
	1
	$425.22

	Intel
	HH80547RE077CN SL98X
	Intel Celerno D, 341, 2.93Ghz, Embedded Processor
	1
	$53.69

	Micron
	MT9HTF6472AY-53EB3
	Unbuffered
ECC,512MB,DDR2-533
	1
	$77.33

	Intel
	FPWRCABLENA
	Spare NA Lead Free Power Cord
	1
	$6.00

	Western Dig
	WD2500YD
	SATA RAID Edition 250G,7200 8MB cache
	1
	$101.35

	Intel
	MOCBASICRAIL
	Basic Rail Kit Replacement
	1
	$42.00

	Intel
	AXXSCD
	Intel CDRom Slimline Black
	1
	$48.42

	Intel
	PWLA8490MT
	Single Gigabit Network Card - PCIe
	1
	 
	 
	$137.39

15

	
							
	Intel
	AAHPCIEUP
	2U Full Height
	1
	 
	 
	$27.16

	 
	 
	PCI-e Riser, 1 Slot
	 
	 
	 
	 

	Belkin
	F3B207-10
	DBF9 to DBF9 Serial Transfer cable 10ft.
	1
	 
	 
	$2.71

	COP
	QIG-102-02
	ConterAct 6.1.2 QIG kit
	1
	 
	 
	$—

	COP
	KHL1UCORRPAD2S#166
	Padding
	1
	 
	 
	$2.49

	COP
	KHL1UFOAMPAD2S#166
	Foam Padding
	1
	 
	 
	$13.12

	COP
	KHL1U2UACCBOX2S#166
	Accessory
	1
	 
	 
	$1.00

	COP
	KHL1U2UBOX2S#166
	Carton
	1
	 
	 
	$15.10

	COP
	KHL1U2UTRAY2S#166
	Tray
	1
	 
	 
	$33.09

	Arrow
	TBD
	Thermal .5x2.5 S/N P/N Label
	1
	 
	 
	TBD

	COP
	SW-200-02
	Software for CT100
	1
	 
	 
	TBD

	COP
	TBD
	ForeScout Image Version 6.x
	1
	Not part of floor stock
	 
	TBD

	COP
	TBD
	BIOS Revision P.5
	1
	Not part of floor stock
	 
	TBD

	Arrow
	TBD
	4mil 36x24 Anti Static Poly Bag
	1
	 
	 
	TBD

	Arrow
	TBD
	Manufactured in the USA label
	1
	 
	 
	TBD

	Arrow
	TBD
	3x4.25 Tyvek Bag Desiccants
	1
	 
	 
	TBD

	Arrow
	TBD
	2x2 ESD Label “Yellow”
	1
	 
	 
	TBD

	Arrow
	TBD by Arrow
	Label Warranty Void, Chrome
	1
	 
	 
	TBD

	Arrow
	TBD
	4x2 Direct Thermil P/N, S/N Carton label
	1
	 
	 
	TBD

	Arrow
	TBD
	ROHS Label
	1
	 
	 
	TBD

	Arrow
	TBD
	WEEH Label
	1
	 
	 
	TBD

16

	
							
	SCHEDULE 2 CONTINUED - SPARE PARTS PRICING SCHEDULE

	MFG
	MFG P/N
	Descripton
	QTY
	 
	 
	Parts Fee

	 
	 
	 
	 
	 
	 

	Intel
	SR1530AHNA
	Intel SR 1530 Pfixed Drive, Aspen Hill/Hawk Juntion UP 1U LX Platform, ships with North American Power Cord, Includes Basic Rail Kit and passive heatsink
	1
	 
	$425.22

	Intel
	HH80547RE077CN SL98X
	Intel Celerno D, 341, 2.93Ghz, Embedded Processor
	1
	$53.69

	Micron
	MT9HTF6472AY-53EB3
	Unbuffered
ECC,512MB,DDR2-533
	1
	$77.33

	Western Dig
	WD2500YD
	SATA RAID Edition 250G,7200 8MB cache
	1
	$101.35

	Intel
	FPWRCABLENA
	Spare NA Lead Free Power Cord
	1
	$6.00

	Intel
	MOCBASICRAIL
	Basic Rail Replacement
	1
	$42.00

	Intel
	AXXSCD
	Intel CDRom Slimline Black
	1
	$48.43

	Intel
	EXPI9404PT
	Copper Pro / 1000 Quad Gibit Card PCI-e
	1
	EXPI9404PTBLK-BULK
	$467.13

	Intel
	AAHPCIEUP
	1U Full Height PCI-e Riser, 1 Slot
	1
	 
	$27.17

17

	
							
	Belkin
	F3B207-10
	DBF9 to DBF9 Serial Transfer cable 10ft.
	1
	 
	 
	$2.71

	COP
	QIG-102-02
	ConterAct 5.1.2 QIG kit
	1
	 
	 
	$ TBD

	COP
	BZ-102-01
	ForeScout CounterAct Bezel w/ Logo
	1
	 
	 
	TBD

	COP
	KHL1UCORRPAD2S#166
	Padding
	1
	 
	 
	$2.50

	COP
	KHL1UFOAMPAD2S#166
	Foam Padding
	1
	 
	 
	$13.12

	COP
	KHL1U2UACCBOX2S#166
	Accessory
	1
	 
	 
	$1.00

	COP
	KHL1U2UBOX2S#166
	Carton
	1
	 
	 
	$15.10

	COP
	KHL1U2UTRAY2S#166
	Tray
	1
	 
	 
	$33.09

	Arrow
	TBD
	Thermal .5x2.5 S/N P/N Label
	1
	 
	 
	TBD

	COP
	SW-200-02
	Software for CT100
	1
	 
	 
	TBD

	COP
	TBD
	ForeScout Image Version 6.x
	1
	Not part of floor stock
	 
	TBD

	COP
	TBD
	BIOS Revision P.5
	1
	Not part of floor stock
	 
	TBD

	Arrow
	TBD
	4mil 36x24 Anti Static Poly Bag
	1
	 
	 
	TBD

	Arrow
	TBD
	Manufactured in the USA label
	1
	 
	 
	TBD

	Arrow
	TBD
	3x4.25 Tyvek Bag Desiccants
	1
	 
	 
	TBD

	Arrow
	TBD
	2x2 ESD Label “Yellow”
	1
	 
	 
	TBD

	Arrow
	TBD by Arrow
	Label Warranty Void, Chrome
	1
	 
	 
	TBD

	Arrow
	TBD
	4x2 Direct Thermil P/N, S/N Carton label
	1
	 
	 
	TBD

	Arrow
	TBD
	ROHS Label
	1
	 
	 
	TBD

	Arrow
	TBD
	WEEH Label
	1
	 
	 
	TBD

18

	
							
	SCHEDULE 2 CONTINUED - SPARE PARTS PRICING SCHEDULE

	MFG
	MFG P/N
	Descripton
	QTY
	 
	 
	Parts Fee

	 
	 
	 
	 
	 
	 

	 
	HW-200-02
	CT100 Hardware Components
	 
	 
	 

	Intel
	SR1530AHNA
	Intel SR 1530 Pfixed Drive, Aspen Hill/Hawk Juntion UP 1U LX Platform, ships with North American Power Cord, Includes Basic Rail Kit and passive heatsink
	1
	$425.22

	Intel
	HH80547RE077CN SL98X
	Intel Celerno D, 341, 2.93Ghz, Embedded Processor
	1
	$53.69

	Micron
	MT9HTF6472AY-53EB3
	Unbuffered
ECC,512MB,DDR2-533
	1
	$77.33

	Intel
	FPWRCABLENA
	Spare NA Lead Free Power Cord
	1
	$6.00

	Western Dig
	WD2500YD
	SATA RAID Edition 250G,7200 8MB cache
	1
	$101.35

	Intel
	MOCBASICRAIL
	Basic Rail Replacement
	1
	$42.00

	Intel
	AXXSCD
	Intel CDRom Slimline Black
	1
	$48.43

	Intel
	EXPI9404PF
	PCIe Dual Fibre Channel Card
	1
	EXPI9404PTBLK-BULK
	$694.12

19

	
							
	Intel
	AAHPCIEUP
	1U Full Height PCI-e Riser, 1 Slot
	1
	 
	$27.17

	Belkin
	F3B207-10
	DBF9 to DBF9 Serial Transfer cable 10ft.
	1
	 
	 
	$2.71

	COP
	QIG-102-02
	ConterAct 5.1.2 QIG kit
	1
	 
	 
	$ TBD

	COP
	KHL1UCORRPAD2S#166
	Padding
	1
	 
	 
	$2.50

	COP
	KHL1UFOAMPAD2S#166
	Foam Padding
	1
	 
	 
	$13.12

	COP
	KHL1U2UACCBOX2S#166
	Accessory
	1
	 
	 
	$1.00

	COP
	KHL1U2UBOX2S#166
	Carton
	1
	 
	 
	$15.09

	COP
	KHL1U2UTRAY2S#166
	Tray
	1
	 
	 
	$33.09

	Arrow
	TBD
	Thermal .5x2.5 S/N P/N Label
	1
	 
	 
	TBD

	COP
	SW-200-02
	Software for CT100
	1
	 
	 
	TBD

	COP
	TBD
	ForeScout Image Version 6.x
	1
	Not part of floor stock
	 
	TBD

	COP
	TBD
	BIOS Revision P.5
	1
	Not part of floor stock
	 
	TBD

	Arrow
	TBD
	4mil 36x24 Anti Static Poly Bag
	1
	 
	 
	TBD

	Arrow
	TBD
	Manufactured in the USA label
	1
	 
	 
	TBD

	Arrow
	TBD
	3x4.25 Tyvek Bag Desiccants
	1
	 
	 
	TBD

	Arrow
	TBD
	2x2 ESD Label “Yellow”
	1
	 
	 
	TBD

	Arrow
	TBD by Arrow
	Label Warranty Void, Chrome
	1
	 
	 
	TBD

	Arrow
	TBD
	4x2 Direct Thermil P/N, S/N Carton label
	1
	 
	 
	TBD

	Arrow
	TBD
	ROHS Label
	1
	 
	 
	TBD

	Arrow
	TBD
	WEEH Label
	1
	 
	 
	TBD

20

SCHEDULE 3 — EQUIPMENT UNDER CONTRACT
CCPxxCT100-04  
CCPxxCT100E-04  
CCPxxCT100MS-04  
and all the above including suffix —EVAL , -AWR , and -DEF

21

SCHEDULE 4 
VISUAL COSMETIC/SURFACE INSPECTION SPECIFICATIONS
Purpose:
This specification shall be used as a reference to aid return center in visually inspecting the cosmetic defect permissibility for advanced exchange units.
Responsibilities:
Any Arrow representative engaged in inspecting advanced exchange units for cosmetic flaws should be familiar and understand the directives contained in this document prior to performing any visual inspection of the advanced exchange units.
Surface Classification:
The inspection criteria are based on the use of the unit.  Any surface that is internal and cannot be viewed, without dismantling the end product, is not a cosmetic surface and therefore, form, fit and function are the primary consideration when evaluating this surface.  It is reasonable that the advanced exchange units being inspected will not conform to the expected cosmetic standard at the time the unit was manufactured.  The below classifications are specific to units that have been “used” and have been repaired and subsequently been place into the advanced exchange spares pool at Arrow.  Each unit surface that can be viewed externally shall be categorized into one of three classes below.
Definition of Surface Classification:
•Class 1 Surface (Frequently Viewed)
Surfaces frequently viewed in the finished product by the customer.  (Examples: Front covers, side covers, top covers, faceplates, filler panels, etc...)
•Class 2 Surface (Occasionally Viewed)
Surfaces occasionally viewed in the finished product by the customer.  (Examples: Bottom covers, outside of rear covers, etc...)  Appearance of a class 2 surface, while important, is secondary to form, fit and function.  Consideration should be given to how the flaw affects general appearance/function.
•Class 3 Surfaces (Infrequently Viewed)
Surfaces infrequently or never viewed in the finished product by the customer.  (Example: Normally concealed surfaces, bottom plates, top plates (rack servers), internal surfaces of assemblies).  Form, fit, and function are the primary consideration when evaluating a class 3 surface.
Viewing Conditions:

22

When looking for a flaw, consider whether the flaw will affect the general appearance, based on the quality requirement for the surface exposure.  The product shall be viewed under the following conditions listed below:
•Viewing Angle: Product should be viewed within the viewing range and should not be viewed at less than 30 degrees from the surface.
•Viewing Distance: Approximately 18 inches minimum to 36 inches maximum.
•Viewing Lighting: Use normal room lighting.
•Viewing Magnification: None
•Viewing Time: A sufficient amount of time should be used to inspect the product.  When making an accept/reject judgment about a cosmetic flaw, avoid using concentrated study.  The following is a suggested guideline:
View the area at an approximate rate of 5 seconds per square foot.  Based on the quality requirements for the surface exposure, consider whether the flaw adversely affects the general appearance.
Inspection Criteria:
The following criteria being presented in the section are general guidelines.  Other specific requirements may be placed in customer documents and would supersede the requirements defined in this document.
Paint Defects (Covers/FacePlates):
-Corrosion: A state of deterioration in metals caused by oxidation or chemical action.
Class 1: Unacceptable
Class 2: Unacceptable
Class 3: Unacceptable
-Blisters: Non-adhesion: Lack of proper sticking of the coating surface.
Class 1: Unacceptable if larger than a pencil eraser AND more than 2 per square foot surface.
Class 2: Acceptable
Class 3: Acceptable
-Flaking/Peeling: The paint lifts from its underlying surface in smooth flakes.  These flakes may be easily broken, with tendency for the edges to peel away from the surface.
Class 1: Unacceptable if larger than a pencil eraser AND more than 2 per square foot surface.
Class 2: Acceptable
Class 3: Acceptable
Surface Irregularities: Surface irregularities, typically appearing as ripples curved, straight or crisscrossed grooves, or jagged or global protrusions.

23

Class 1: Unacceptable if larger than a quarter AND more than 2 per square foot surface.
Class 2: Acceptable
Class 3: Acceptable
Surface Defects (Covers/Faceplates):
-Scratches: Nicks, discoloration, voids, bubbles, and lumps:
Class 1: Acceptable provided bare metal is not exposed (see shallow grooves criteria below) AND scratches (nicks, voids, bubbles, & lumps), more than one inch long, do not exceed more than 10 per square foot surface OR discoloration does not exceed the size of a dollar bill.
Class 2: Acceptable provided it does not affect function or alignment.
Class 3: Acceptable provided it does not affect function or alignment.
-Scratches: Shallow grooves.
Class 1: A heavy scratch (bare metal exposed) is unacceptable if scratch is more than 1/3 inch long AND more than 6 per square foot surface.
Class 2: Acceptable
Class 3: Acceptable
-Dents/Gouges:
Class 1: Dents/Gouges are unacceptable if larger than a quarter in diameter and more than 1/8 inch in depth, or affects functions or alignment.
Class 2: Acceptable provided it does not affect function or alignment.
Class 3: Acceptable provided it does not affect function or alignment.
-Smear:
Class 1: Smears are unacceptable if larger than a dollar bill.
Class 2: Acceptable
Class 3: Acceptable
Alignment/Mechanical (Covers/Faceplates)
Misalignments:
Class 1: Overhang/misalignment of covers/panels greater than 1/3 inch is unacceptable.
Class 2: Acceptable provided it does not affect function, including footprint stability. 
Class 3: Acceptable provided it does not affect function, including footprint stability.

24

	
							
	MFG
	MFG P/N
	Descripton
	QTY
	Part Fee

	 
	 
	 
	 
	 

	 
	 
	CT1000 Hardware Components
	 
	 

	Intel
	SR1550ALSASNA
	SR1550 1U Hotswap “Active” SAS/SATA Backpane kit - 8 port PCI-e, 6 drive carriers included, Include NA Power Cord
	1
	

	$1,236.51
	

	Intel
	HH80556KJ0414M
	5130 WoodCrest dual core 2.0GHz /1333MHz FSB/4MB cache
	1
	

	$325.26
	

	 
	MT18HTF12872FDY-667D5E3
	1GB DDR2-667MHz for Alcolu board
	2
	

	$152.57
	

	AVC
	S440S00001
	1U Passive Thermal Solution
	 
	

	$27.77
	

	Seagate
	ST910021AS/SB
	Momentus 7200 Hard Drive - 100GB - internal 2.5in SATA 1.5 Gb/s 8MB Cache
	2
	

	$117.08
	

	Intel
	AXXSCD
	Intel CDRom Slimline Black
	1
	

	$48.43
	

	Intel
	ASR1550BEZ
	black 1U SR1550 locking Front Bezel
	1
	

	$34.25
	

	Intel
	EXPI9402PF
	 
	2
	

	$651.25
	

	Intel
	ASR1550PS
	SR1550 650W power supply, spare upgrade Redundant powere 1+1
	1
	

	$236.24
	

	Intel
	AXXHERAIL
	Tool-less Sliding Rail Kit
	1
	

	$51.97
	

	Arrow
	KHL1UCORRPAD2S#166
	Padding
	1
	

	$2.50
	

	Arrow
	KHLIUFOAMPAD2S#166
	Foam Padding
	1
	

	$13.12
	

	Arrow
	KHL1U2UACCBOX2S#166
	Accessorys
	1
	

	$1.00
	

	Arrow
	KHL1U2UBOX2S#166
	Carton
	1
	

	$15.10
	

	Arrow
	KHL1U2UTRAY2S#166
	Tray
	1
	

	$33.09
	

	ForeScout
	FS Supplied
	ForeScout Image Version 6.x
	1
	TBD
	

	ForeScout
	FS Supplied
	BIOS Revision P10
	1
	TBD
	

	ForeScout
	FS Supplied
	FRU-SDR 6.6.3
	1
	TBD
	

	ForeScout
	FS Supplied
	MBMC 2.40
	 
	TBD
	

	ForeScout
	TBD
	ConterAct 6.X QIG kit
	 
	TBD
	

	??
	??
	RJ45 to DB9 Female Console Cable
	1
	TBD
	

25

	
							
	MFG
	MFG P/N
	Descripton
	QTY
	Part Fee

	 
	 
	 
	 
	 

	 
	 
	CT1000 Hardware Components
	 
	 

	Intel
	SR1550ALSASNA
	SR1550 1U Hotswap “Active” SAS/SATA Backpane kit - 8 port PCI-e, 6 drive carriers included, Include NA Power Cord
	1
	

	$1,236.51
	

	Intel
	HH80556KJ0414M
	5130 WoodCrest dual core 2.0GHz /1333MHz FSB/4MB cache
	1
	

	$325.26
	

	Micron
	MT18HTF12872FDY-667D5E3
	1GB DDR2-667MHz for Alcolu board
	2
	

	$152.57
	

	AVC
	S440S00001
	1U Passive Thermal Solution
	 
	

	$27.77
	

	Seagate
	ST910021AS/SB
	Momentus 7200 Hard Drive - 100GB - internal 2.5in SATA 1.5 Gb/s 8MB Cache
	2
	

	$117.08
	

	Intel
	AXXSCD
	Intel CDRom Slimline Black
	1
	

	$48.43
	

	Intel
	ASR1550BEZ
	black 1U SR1550 locking Front Bezel
	1
	

	$34.25
	

	Intel
	PWLA8490MT
	 
	1
	

	$114.13
	

	Intel
	ASR1550PS
	SR1550 650W power supply, spare upgrade Redundant powere 1+1
	1
	

	$236.24
	

	Intel
	AXXHERAIL
	Tool-less Sliding Rail Kit
	1
	

	$51.97
	

	Arrow
	KHL1UCORRPAD2S#166
	Padding
	1
	

	$2.50
	

	Arrow
	KHLIUFOAMPAD2S#166
	Foam Padding
	1
	

	$13.12
	

	Arrow
	KHL1U2UACCBOX2S#166
	Accessorys
	1
	

	$1.00
	

	Arrow
	KHL1U2UBOX2S#166
	Carton
	1
	

	$15.10
	

	Arrow
	KHL1U2UTRAY2S#166
	Tray
	1
	

	$33.09
	

	ForeScout
	FS Supplied
	ForeScout Image Version 6.x
	1
	TBD
	

	ForeScout
	FS Supplied
	BIOS Revision P10
	1
	TBD
	

	ForeScout
	FS Supplied
	FRU-SDR 6.6.3
	1
	TBD
	

	ForeScout
	FS Supplied
	MBMC 2.40
	 
	TBD
	

	ForeScout
	TBD
	ConterAct 6.X QIG kit
	 
	TBD
	

	??
	??
	RJ45 to DB9 Female Console Cable
	1
	TBD
	

26

	
							
	MFG
	MFG P/N
	Descripton
	QTY
	Part Fee

	 
	 
	 
	 
	 

	 
	 
	CT1000 Hardware Components
	 
	 

	Intel
	SR1550ALSASNA
	SR1550 1U Hotswap “Active” SAS/SATA Backpane kit - 8 port PCI-e, 6 drive carriers included, Include NA Power Cord
	1
	

	$1,236.51
	

	Intel
	HH80556KJ0414M
	5130 WoodCrest dual core 2.0GHz /1333MHz FSB/4MB cache
	1
	

	$325.26
	

	 
	MT18HTF12872FDY-667D5E3
	1GB DDR2-667MHz for Alcolu board
	2
	

	$152.57
	

	AVC
	S440S00001
	1U Passive Thermal Solution
	 
	

	$27.77
	

	Seagate
	ST910021AS/SB
	Momentus 7200 Hard Drive - 100GB - internal 2.5in SATA 1.5 Gb/s 8MB Cache
	2
	

	$117.08
	

	Intel
	AXXSCD
	Intel CDRom Slimline Black
	1
	

	$48.43
	

	Intel
	ASR1550BEZ
	black 1U SR1550 locking Front Bezel
	1
	

	$34.25
	

	Intel
	EXPI9402PF
	PRO/1000 GT Dual Fibre Port Server Adaptor
	1
	

	$651.25
	

	Intel
	PWLA8492MT
	Copper 10/100/1000 Dual Gigabit Card
	1
	

	$156.75
	

	Intel
	ASR1550PS
	SR1550 650W power supply, spare upgrade Redundant powere 1+1
	1
	

	$236.24
	

	Intel
	AXXHERAIL
	Tool-less Sliding Rail Kit
	1
	

	$51.97
	

	Arrow
	KHL1UCORRPAD2S#166
	Padding
	1
	

	$2.50
	

	Arrow
	KHLIUFOAMPAD2S#166
	Foam Padding
	1
	

	$13.12
	

	Arrow
	KHL1U2UACCBOX2S#166
	Accessorys
	1
	

	$1.00
	

	Arrow
	KHL1U2UBOX2S#166
	Carton
	1
	

	$15.10
	

	Arrow
	KHL1U2UTRAY2S#166
	Tray
	1
	

	$33.09
	

	ForeScout
	FS Supplied
	ForeScout Image Version 6.x
	1
	TBD
	

	ForeScout
	FS Supplied
	BIOS Revision P10
	1
	TBD
	

	ForeScout
	FS Supplied
	FRU-SDR 6.6.3
	1
	TBD
	

	ForeScout
	FS Supplied
	MBMC 2.40
	 
	TBD
	

	ForeScout
	TBD
	ConterAct 6.X QIG kit
	 
	TBD
	

	??
	??
	RJ45 to DB9 Female Console Cable
	1
	TBD
	

27

ADDENDUM 1 
To 
Custom Products Agreement — Integration and Services  
Between the OEM Computing Solutions Group of Arrow Electronics, Inc.  
And
ForeScout Technologies, Inc.
This Addendum 1 (Addendum) to the Custom Product Agreement — Integration and Services referenced below is effective as of November 7, 2007 (“Addendum Effective Date”) by the OEM Computing Solutions Group of Arrow Electronics, Inc., (“Arrow”) and ForeScout Technologies, Inc. (“Customer).
RECITALS
A.    Arrow and Customer are parties to the Custom Products Agreement — Integration and Services entered into as of March 7, 2007 (the “Agreement”).
B.    Arrow and Customer desire to addend the Agreement as set forth below.
NOW THEREFORE, in consideration for the promise and mutual covenants contained in this Amendment, and for good and valuable consideration the receipt of which is hereby acknowledged, the parties agree as follows:
1.    The following integration location shall be covered by the terms and conditions of the Agreement:
Orion Electronics, Inc. (“Orion”)
29 Jaszberenjiut, Budapest, Hungary 1106
2.    The attached Statement of Work specific to repair services offer by Arrow’s subcontract, Orion, shall be added to and made a part of the Agreement.
3.    All other terms and conditions of the Agreement shall remain enforce and unchanged.
IN WITNESS WHERE OF, the parties hereto have executed this Addendum by their respective duly authorized representative to be effective as of the date first written above.
	
					
	ARROW ELECTRONICS, INC. 
	 
	 

	OEM Computing Solutions Group
	 
	FORESCOUT TECHNOLOGIES, INC.

	 
	 
	 
	 
	 

	By:
	/s/ Yvonne Barcewski
	 
	By:
	/s/ Gordon Boyce

	 
	 
	 
	 
	 

	Name:
	Yvonne Barcewski
	 
	Name:
	Gordon Boyce

	 
	 
	 
	 
	 

	Title:
	Contracts Manager
	 
	Title:
	President

	 
	 
	 
	 
	 

	 
	 
	 
	Date:
	Dec 12/07

28

STATEMENT OF WORK (“SOW”)  
ADVANCED EXCHANGE SERVICES  
FORESCOUT

This Statement of Work (“SOW”) is effective 11/7/07 (“Effective Date”) and sets forth the scope of the Services, applicable prices, requirements and obligations of the parties and incorporates and is subject to the terms and conditions of the Custom Products Agreement - Integration and Services (“Agreement”) executed by the OEM Computing Solutions Group of Arrow Electronics, Inc. (“Arrow”) and ForeScout Technologies, Inc. (“Customer”) dated March 7, 2007.  Unless otherwise mutually agreed by the parties, in the event that the Agreement is terminated, then this SOW shall also terminate.
1.    GENERAL INFORMATION
Customer has engaged Arrow to perform the assembly of individual electronic and computer components into certain finished good products specific to Customer.
The parties desire to engage in a relationship whereby Arrow or its sub contractor will provide Advanced Exchange and Repair/Refurbishment services (“Services”) to Customer.  This document describes Advanced Exchange services for Customer’s End Users located in Europe and includes the consignment of appropriate Customer Owned Parts (COP) inventory to meet the management and shipment of replacement and evaluation units in support of Customer’s hardware program requirements.
2.    DEFINITIONS
		
	▪
	“Depot Repair Center” means the depot center located at 29 Jaszberenji ut, Budapest, Hungary 1106

		
	▪
	“Equipment” means products identified in Schedule 3

		
	▪
	“Service Call” means a single event for request of Service to a single piece of Equipment at a single location.

		
	▪
	“Service Commencement Date” means the execution date of this SOW

		
	▪
	“Customer” means ForeScout, Inc.

		
	▪
	“End User” means Customer’s customer where covered equipment resides

3.    TERM
This SOW is effective on the Effective Date and will remain in force until terminated in accordance with the provisions of this section.  The initial term of this SOW shall be one (1) year(s) from the date first set forth above and thereafter, will automatically renew for periods of one (1) year.  Either party may at any time terminate this SOW without cause by giving ninety days (90) prior written notice to the other.

29

4.    ADVANCED EXCHANGE REPLACEMENT
Arrow or its subcontractor will render Advanced Exchange Services (“Services”) as set forth herein for the Equipment identified in Schedule 3 and Arrow will be charged the fees as set forth in Schedule 1 in fulfillment of these Services.  Schedule 2 will identify the quantity and pricing for spare parts inventory.
5.    CUSTOMER RESPONSIBILITIES
		
	a.
	Customer will provide to Arrow an initial allotment of COP inventory of finished goods and parts to be used as dedicated service inventory in support of defective unit repairs and to establish an initial seed stock pool of finished goods inventory.  The parties will mutually agree on an amount of inventory and associated minimum and maximum levels to be maintained by Arrow in support of this Service.

		
	b.
	Unless otherwise specified in a separate SOW to the Agreement, Customer will take first call from the End User and perform technical problem determination.  Customer will diagnose End User’s problem to ensure to the best of their ability that only Products with hardware failures or evaluation equipment returns are forwarded to the Depot Repair Center run by Arrow’s subcontractor Orion Electronics, Ltd. (“Orion”).

		
	c.
	Customer will notify Orion via a phone call or mutually agreed upon electronic notification each time hardware Services are required and will include the following details, if applicable, with each request for Service:

i.    End User contact name and shipping address
ii.    End User phone number
iii.    Equipment model number and part number
iv.    Equipment serial number
v.    Quantity of Equipment being returned
		
	vi.
	Problem diagnosis, to include a full description of symptoms describing fault, description of what Customer has done to try and make system operate correctly, and part(s) being shipped

		
	d.
	Customer will perform services to ensure End User returns defective Equipment to designated Depot Repair Center upon receipt of an advanced replacement product.

		
	e.
	Customer or End User will include the RMA number on the outside shipping label of all Equipment returned to Arrow as defective or as evaluation returns.

30

		
	f.
	Customer or End User will be responsible for initial installation or reinstallation of replacement Equipment, software, or operational procedures unless specifically requested and stipulated as part of this SOW.

		
	g.
	Prior to the Service Commencement Date (as defined in Section 10 below), Customer will provide or verify a list of service inventory that will be included in this Services program as listed on Schedules 1 & 2.  Arrow and Orion shall keep a list current and provide in writing, in a mutually agreed upon format, additions and/or deletions of Equipment to the customer on a monthly basis.

		
	h.
	Customer will identify a single Customer contact for service issues.

		
	i.
	Customer will provide Arrow with a new unit and install base volume forecast on a quarterly basis that can be used by Arrow to forecast call, Advanced Exchange shipment and Equipment repair (if applicable) volumes.  Such forecasts shall be a rolling ninety (90) day forecast.  The provision by Customer of such forecasts shall not constitute a commitment by Customer to fulfill such volumes from Arrow, nor does it constitute a commitment by Arrow to support such volumes.  Customer acknowledges that Arrow will use these forecasts for planning purposes.

6.    ARROW RESPONSIBILITIES
		
	a.
	Opening Service Call

		
	i.
	Orion will provide Customer with an assigned Program Manager who will act as the point of contact for Advanced Exchange shipment requests.

		
	ii.
	An end-user experiences a hardware failure with their in-warranty Equipment and initiates a call to the Customer’s service system (unless Arrow providing call center services as specified in a separate SOW).  If deemed hardware related issue, serviceable under this maintenance contract, Customer will initiate a service event with Orion.  The Orion Program Manager or designated Orion contact receives the call or other electronic communication method and initiates the processing of the request.

		
	iii.
	Orion shall confirm receipt and acceptance of each Service Call by assigning an RMA number and providing this RMA number to the Customer.

		
	b.
	Advanced Exchange

		
	i.
	If Orion receives an Advanced Exchange request from Customer, Orion Program Manager or other designated Orion contact will request 

31

that the Orion Depot Repair Center ship the Advanced Exchange to the End User experiencing the failure.
		
	ii.
	Orion will maintain product tracking information and end-user shipping information.

		
	iii.
	Upon receipt of an Advance Exchange unit request, the Orion Program Manager or other designated contact assigns an RMA# and orders the shipment of the replacement unit for the defective unit to the designated end-user via overnight airfreight for next business day delivery or best available service if next business day delivery service is not available to that location.  If this request is received by 3:00 pm local Budapest time, then the Equipment will be shipped that day.  If request received after 3:00 pm local time, the Equipment will be shipped out the following day

		
	iv.
	Depot Repair Center enters outgoing Advance Exchange replacement order and shipping into the Orion inventory management system.

		
	v.
	Depot Repair Center generates an advanced shipment notification to Customer as confirmation that the advanced replacement unit has shipped including the shipment tracking information.

		
	vi.
	End User site receives Advance Exchange replacement unit and swaps the defective Equipment with the replacement Equipment supplied.

		
	vii.
	End User re-packs and ships the defective Equipment to the Depot Repair Center via Customer’s preferred and predetermined method of shipment (as part of a prepaid shipping label that is included with the advanced replacement unit packaging).

		
	viii.
	The Depot Repair Center receives the defective Equipment from the End User and inspects for any return shipping damage.

		
	ix.
	The Depot Repair Center matches RMA# and other provided product tracking information with the received defective Equipment to ensure correct Equipment has been received.

		
	x.
	If the received Equipment does not match the RMA information, Orion will isolate the Equipment until the mismatch can be resolved with the Customer or End User.  If the Equipment does match the RMA information, Orion will receive incoming defective Equipment into the Orion inventory management system.

		
	xi.
	The Depot Repair Center receives incoming Equipment into the inventory management system and send Customer electronic 

32

notification that the RMA has been received and in process of being repaired and refurbished.
		
	xii.
	The Depot Repair Center performs a test and screen on each repairable Equipment and associated component parts received to determine status and perform a visual inspection of the cosmetic status of the Equipment in accordance with Arrow’s Visual Cosmetic/Surface Inspection Standard on Advanced Exchange Units described in Schedule 4 of this SOW.

		
	xiii.
	If failure isolated to defective part(s), The Depot Repair Center will draw a replacement part(s) from the available production and/or refurbished parts inventory and completes the repair (if applicable) in accordance with the current build plan specifications in effect at that time within five (5) business days of receipt within the Depot Repair Center.

		
	xiv.
	The Depot Repair Center will perform functionality testing in accordance with Customer build plan specifications on repaired Equipment.

		
	xv.
	Orion repairs defective Equipment (if applicable), repackages as new in accordance with the original build plan specifications and places it into inventory where it will be used as replacement Equipment inventory.

		
	xvi.
	The Depot Repair Center logs the repaired Equipment into the Inventory Management System as COP available to be used for replacement or evaluation Equipment inventory.

		
	xvii.
	Orion generates an electronic notification and updated inventory reporting to Customer that notifies Customer that the defective returned Equipment has been refurbished and available to ship as part of the advanced exchange inventory.

		
	xviii.
	If a defective part(s) replaced during the repair process is covered under manufacturers warranty, Orion will return to manufacturer for a refurbished or replacement part based on warranty coverage.  If part is not covered under warranty, Orion will return to manufacturer for price quote to repair the part (if available from manufacturer).  If Customer provides written approval and acceptance of quoted repair charge, Arrow will request a Purchase Order (PO) from Customer and Orion to notify manufacturer to perform the required repair.

33

		
	xix.
	The Depot Repair Center will perform a functionality test of the repaired or replacement part(s) received from manufacturers.

		
	xx.
	The Depot Repair Center will replenish the COP service inventory with the refurbished/repaired part or request a Purchase Order from Customer for additional COP inventory to ensure adequate levels of service inventory are maintained based upon a mutually agreed upon minimum and maximum level of service inventory.

		
	xxi.
	Orion will provide to Customer a failure analysis report on a monthly (or other mutually agreed upon frequency) basis to cover the previous months incidents based on description of failure provided by Customer, Arrow’s inspection of returned part and any root cause failure analysis data provided by manufacturers.

		
	xxii.
	Orion will provide Customer an RMA report on a frequency to be mutually agreed by both parties (but not more frequent than weekly), that will list all RMA’s issued by Arrow for Customer that will includes dates and status of whether the RMA defective units have been received by The Depot Repair Center.

7.    EQUIPMENT INVENTORY
Any request by the Customer to add, remove, or change any Equipment listed on Schedule 2 or Schedule 3 must be made in writing thirty (30) days in advance.  Orion will inform Arrow who will notify Customer of change(s) to the pricing schedule (Schedules 1 & 2) associated with the addition of Equipment.
Please allow 30 days to entitle Equipment upon receipt of a change request to Schedule 1 & 2.
8.    SPARE PARTS
An inventory of the defined COP based on the configurations for the Equipment identified in Schedule 3 will be defined by the Depot Repair Center, based on a formula comprised of component repair/failure rates, target repair service level turnaround times, the current install base, and a three month forecast updated quarterly.  The COP reserve of inventory will be held at the Depot Repair Center and used for Advanced Exchange requests.  Reviews will be held on a quarterly basis or as required to adjust the COP inventory and procure additional Equipment as needed to ensure an adequate level of inventory is available to fulfill the current volume of Advanced Exchange and evaluation Equipment transaction volumes.
9.    PHYSICAL DAMAGE INSPECTION
When performing defective Equipment repair, if Orion discovers that the Equipment is malfunctioning due to anything other than a failing internal component, or has been damaged due to fault or neglect on the part of the End User, or damaged during transit to Orion, Orion will notify the 

34

Customer and Arrow via a mutually agreed upon established process.  Orion will offer a price quote to Arrow for an evaluation service to determine the extent of the damage and cost to repair, at the prevailing time and materials rate.  Arrow will provide price quote to Customer and if accepted by the Customer, Arrow will inform Orion who will perform the repair service.
10.    NOT RESPONSIBLE FOR LOSS OF DATA OR SOFTWARE
Customer is responsible for backing-up all data at client location.  In no event shall Orion or Arrow be responsible for any loss of data that may occur while Services are being performed.
11.    EXPORT LICENSING, DUTIES AND TAXES
Customer is responsible for ensuing all Equipment that is supported with Services meets the export licensing and customs requirements to allow shipments into the Customer End User locations.  Customer is responsible for all duties, taxes and tariff charges resulting from delivery of Services or shipment of replacement Equipment to the designated End User locations or return shipment of defective Equipment to the Depot Repair Center.
12.    SERVICE COMMENCEMENT
Customer, Arrow and Orion will mutually agree to the date that Services will commence (the “Service Commencement Date”).  Services shall not commence until this SOW has been accepted and signed by duly authorized representatives of both parties.
13.    PRICE AND INVOICE REQUIREMENTS
a.    Pricing outlined on Schedules 1
b.    Spare Parts List outlined on Schedule 2
c.    Payment terms will be pursuant to those in the Agreement.
	
					
	AGREED AND ACCEPTED:
	 
	 

	ARROW ELECTRONICS, INC.
	 
	FORESCOUT TECHNOLOGIES, INC.

	OEM Computing Solutions
	 
	 
	 

	 
	 
	 
	 
	 

	By:
	/s/ Yvonne Barcewski
	 
	By:
	/s/ Gordon Boyce

	 
	 
	 
	 
	 

	Name:
	Yvonne Barcewski
	 
	Name:
	Gordon Boyce

	 
	 
	 
	 
	 

	Title:
	Contracts Manager
	 
	Officer/Title:
	President

	 
	 
	 
	 
	 

	Date:
	12/17/07
	 
	Date:
	Dec 12/07

35

SCHEDULE 1 - PRICING SCHEDULE
ADVANCED EXCHANGE & EVALUATION EQUIPMENT
SCHEDULE 1 - EUROPE PRICING SCHEDULE

	
		
	Service Period:
	Monday through Friday, 8:00 AM to 5:00 PM Local Time of Depot Repair Center.  Advanced Exchange requests received by 3:00 pm local time will be shipped the same day for Next Business Day delivery shipping where NBD delivery is available.

Fee Schedule:

	
		
	Advanced Exchange Program Fees:
	 

	Advanced Exchange Inventory Management & Storage (weekly rate based on dimensions and number of units stored, billed monthly) - 
	 

	(A)     CT2000 / CT4000: Height 177.8 mm7.00”, Width with rails 609.6 mm 24.00”, Depth with CMA 939.8 mm 37.0”, Max. Weight 34.9 kg 77 lbs
	$6.38/unit stored/week

	(B)     CT1000 / AS1000: Height 127 mm 5.00”, Width 609.6 mm 24.00”, Depth with CMA 939.8 mm 37.0”, Max.  Weight 24.1 kg 53 lbs
	$4.88/unit stored/week

	(C)     CT100 / AS100: Height 101.6 mm 4.00 inches , Width 482.6 mm 19 inches, Width 609.6 mm 24.00”, Maximum weight 15.9 mm 35 pounds
	$4.38/unit stored/week

	Advanced Replacement Handling Fee
	$18.00 plus shipping

	In-Warranty Expedited Repair & Refurbishment Fee
	$109.90 plus parts

	Out of Warranty Repair & Refurbishment Fee
	$186.30 plus parts

36

SCHEDULE 2 - SPARE PARTS LIST
	
						
	Spare Parts Inventory
	Updated 10/10/07
	 
	 
	 
	 

	 
	1530/1550 Series 
Chassis
	2500 Series Chassis

	Spare Parts Description
	CT100-04
	AS100-04
	CT1000-04
	AS1000-04
	CT2000-04

	NIC Config
	6c
	3c
	8c
	3c
	8c

	Memory
	MT9HTF6472AY-53EB3
	MT9HTF6472AY-53EB3
	MT18HTF12872FDY-667D6E4
	MT18HTF12872FDY-667D6E4
	MT18HTF12872FDY-667D6E4

	HDD
	ST3250410AS
	ST3250410AS
	ST9100821AS
	ST9100821AS
	ST3250410AS

	CD-ROM
	AXXSCD
	AXXSCD
	AXXSCD
	AXXSCD
	AXXSCD

	Intel NIC
	EXPI9404PT
	EXPI9400PT
	EXPI9404PT
EXPI9402PT
	EXPI9400PT
	EXPI9404PT
EXPI9402PT

	Processor
	HH80547RE077CNSL98X
	HH80547RE077CNSL98X
	HH80556KJ0414M SL9RX
	HH80556KJ0414M SL9RX
	HH80556KJ0804M

	Serial Cable
	F3B207-10
	F3B207-10
	C17-ARROWE-006**KN*FORESC
	C17-ARROWE-006**KN*FORESC
	C17-ARROWE-006**KN*FORESC

	Power Supply
	FHJ350WPS
	FHJ350WPS
	ASR1550PS
	ASR1550PS
	ASR2500PS

	EU/UK Power Cord
	KAB220-V-GR, 9900-00093
	KAB220-V-GR, 9900-00093
	KAB220-V-GR, 9900-00093
	KAB220-V-GR, 9900-00093
	KAB220-V-GR, 9900-00093

	Bezel
	COUNTERACT100BEZ**COP-KN
	ACTIVESCOUT100BEZ**COP-KN
	COUNTERACT1000BEZ**COP-KN
	ACTIVSCOUT1000BEZ**KN*COP
	COUNTERACT2000BEZ**CO P*KN

	QIG
	QIG-102-03**COP-KN
	QIG-103-02**KN-COP
	QIG-102-03**COP-KN
	QIG-103-02**KN-COP
	QIG-102-03**COP-KN

	Packaging
	KLFRSCTNEW- 968462**KN#166, KLFRSCTINST968352**KN#166
	KLFRSCTNEW- 968462**KN#166, KLFRSCTINST968352**K N#166
	KLFRSCTNEW- 968462**KN#166
	KLFRSCTNEW- 968462**KN#166
	KLFRSCTNEW-968462**KN#166

	Bracket
	AXXBASICRAIL
	AXXBASICRAIL
	AXXHERAIL
	AXXHERAIL
	AXXHERAIL

	Fans
	FHJBLOWERFAN
	FHJBLOWERFAN
	FXX1UFAN
	FXX1UFAN
	FSR2500LXFAN

37

SCHEDULE 3 - EQUIPMENT UNDER CONTRACT
CCPxxCT100-04  
CCPxxCT1000-04  
CCPxxCT2000-04

38

SCHEDULE 4 
VISUAL COSMETIC/SURFACE INSPECTION SPECIFICATIONS
Purpose:
This specification shall be used as a reference to aid return center in visually inspecting the cosmetic defect permissibility for advanced exchange units.
Responsibilities:
Any Arrow representative engaged in inspecting advanced exchange units for cosmetic flaws should be familiar and understand the directives contained in this document prior to performing any visual inspection of the advanced exchange units.
Surface Classification:
The inspection criteria are based on the use of the unit.  Any surface that is internal and cannot be viewed, without dismantling the end product, is not a cosmetic surface and therefore, form, fit and function are the primary consideration when evaluating this surface.  It is reasonable that the advanced exchange units being inspected will not conform to the expected cosmetic standard at the time the unit was manufactured.  The below classifications are specific to units that have been “used” and have been repaired and subsequently been place into the advanced exchange spares pool at Arrow.  Each unit surface that can be viewed externally shall be categorized into one of three classes below.
Definition of Surface Classification:
•Class 1 Surface (Frequently Viewed)
Surfaces frequently viewed in the finished product by the customer.  (Examples: Front covers, side covers, top covers, faceplates, filler panels, etc...)
•Class 2 Surface (Occasionally Viewed)
Surfaces occasionally viewed in the finished product by the customer.  (Examples: Bottom covers, outside of rear covers, etc...)  Appearance of a class 2 surface, while important, is secondary to form, fit and function.  Consideration should be given to how the flaw affects general appearance/function.
•Class 3 Surfaces (Infrequently Viewed)
Surfaces infrequently or never viewed in the finished product by the customer.  (Example: Normally concealed surfaces, bottom plates, top plates (rack servers), internal surfaces of assemblies).  Form, fit, and function are the primary consideration when evaluating a class 3 surface.
Viewing Conditions:

39

When looking for a flaw, consider whether the flaw will affect the general appearance, based on the quality requirement for the surface exposure.  The product shall be viewed under the following conditions listed below:
•Viewing Angle: Product should be viewed within the viewing range and should not be viewed at less than 30 degrees from the surface.
•Viewing Distance: Approximately 18 inches minimum to 36 inches maximum.
•Viewing Lighting: Use normal room lighting.
•Viewing Magnification: None
•Viewing Time: A sufficient amount of time should be used to inspect the product.  When making an accept/reject judgment about a cosmetic flaw, avoid using concentrated study.  The following is a suggested guideline:
View the area at an approximate rate of 5 seconds per square foot.  Based on the quality requirements for the surface exposure, consider whether the flaw adversely affects the general appearance.
Inspection Criteria:
The following criteria being presented in the section are general guidelines.  Other specific requirements may be placed in customer documents and would supersede the requirements defined in this document.
Paint Defects (Covers/FacePlates):
-Corrosion: A state of deterioration in metals caused by oxidation or chemical action.
Class 1: Unacceptable
Class 2: Unacceptable
Class 3: Unacceptable
-Blisters: Non-adhesion: Lack of proper sticking of the coating surface.
Class 1: Unacceptable if larger than a pencil eraser AND more than 2 per square foot surface.
Class 2: Acceptable
Class 3: Acceptable
-Flaking/Peeling: The paint lifts from its underlying surface in smooth flakes.  These flakes may be easily broken, with tendency for the edges to peel away from the surface.
Class 1: Unacceptable if larger than a pencil eraser AND more than 2 per square foot surface.
Class 2: Acceptable
Class 3: Acceptable
Surface Irregularities: Surface irregularities, typically appearing as ripples curved, straight or crisscrossed grooves, or jagged or global protrusions.

40

Class 1: Unacceptable if larger than a quarter AND more than 2 per square foot surface.
Class 2: Acceptable
Class 3: Acceptable
Surface Defects (Covers/Faceplates):
-Scratches: Nicks, discoloration, voids, bubbles, and lumps:
Class 1: Acceptable provided bare metal is not exposed (see shallow grooves criteria below) AND scratches (nicks, voids, bubbles, & lumps), more than one inch long, do not exceed more than 10 per square foot surface OR discoloration does not exceed the size of a dollar bill.
Class 2: Acceptable provided it does not affect function or alignment.
Class 3: Acceptable provided it does not affect function or alignment.
-Scratches: Shallow grooves.
Class 1: A heavy scratch (bare metal exposed) is unacceptable if scratch is more than 1/3 inch long AND more than 6 per square foot surface.
Class 2: Acceptable
Class 3: Acceptable
-Dents/Gouges:
Class 1: Dents/Gouges are unacceptable if larger than a quarter in diameter and more than 1/8 inch in depth, or affects functions or alignment.
Class 2: Acceptable provided it does not affect function or alignment.
Class 3: Acceptable provided it does not affect function or alignment.
-Smear:
Class 1: Smears are unacceptable if larger than a dollar bill.
Class 2: Acceptable
Class 3: Acceptable
Alignment/Mechanical (Covers/Faceplates)
Misalignments:
Class 1: Overhang/misalignment of covers/panels greater than 1/3 inch is unacceptable.
Class 2: Acceptable provided it does not affect function, including footprint stability. 
Class 3: Acceptable provided it does not affect function, including footprint stability.

41

SCHEDULE 5
ARROW ASSEMBLY & DEPOT REPAIR CENTERS
Phoenix, Arizona:    1955 East Sky Harbor North, Phoenix, AZ 85034
Shenzhen, China:    China Great Wall Computer - Kefa Road, Science & Industry Park, Nanshan District, Schenzhen, Guang Dong, 518057 P.R. China
Europe:    Orion Electronics, Inc. (“Orion”) - 29 Jaszberenjiut, Budapest, Hungary 1106

42

AMENDMENT NO.  1  
TO  
CUSTOM PRODUCTS AGREEMENT  
Integration and Services
THIS AMENDMENT NO.  1 (this “Amendment”) is made effective as of the 22nd day of February, 2016, by and between Forescout Technologies, Inc. (“Customer”) and the OEM Computing Solutions Group of Arrow Electronics, Inc. (“Arrow”).
WHEREAS, Customer and Arrow are parties to the Custom Products Agreement Integration and Services dated March 7, 2007, and Addendum 1 to the Agreement dated November 7, 2007 (collectively the “Agreement”);
WHEREAS, Customer and Arrow continue to operate under the Agreement and desire to amend the Agreement and memorialize such modifications in writing; with the primary purpose being to reinforce standard practices between Customer and Arrow that were in effect around October, 2011, which contradict the terms stated in the Custom Products Agreement Integration and Services as of March 7, 2007.
NOW, THEREFORE, in consideration of the mutual covenants and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows:
		
	1.
	Arrow’s principal place of business address is changed as follows for the purposes of Section 16.3 “Notices”:

Arrow Electronics, Inc.
Attention: Contracts & Proposals
9201 East Dry Creek Road
Centennial, Colorado 80112-2818
Customer’s principal place of business address is changed as follows for the purposes of Section 16.3 “Notices”:
ForeScout Technologies, Inc.
Attention: General Counsel 
900 E. Hamilton Avenue #300 
Campbell, CA 95008
2.    Section 4 “Terms of Sale,” the third sentence of this Section which reads:
“Payment will be net forty-five (45) days from the date of invoice, payable in US dollars.”
is changed as follows:
“Payment will be net sixty (60) days from the date of invoice, payable in US dollars.”

1

3.    Section 12 “Finished Goods Inventory/Non-cancelable/Non-returnable Inventory,” is deleted in its entirety and replaced with the following:
“12.    Finished Goods Inventory/Non-cancelable/Non-returnable Inventory.
12.1    In the event that, (i) FGI or (ii) On-Hand Inventory is held by Arrow in support of this Agreement for more than ninety (90) days (collectively, “Aged Goods”), Arrow will invoice Customer for such Aged Goods on a monthly basis in accordance with this Section 12.
12.2    Aging Report.  Arrow will provide to Customer on a monthly basis, within one (1) business day following the end of the relevant month, an accurate inventory aging list identifying FGI and On-Hand Inventory (by Serial Number for FGI) maintained at Arrow’s facility (“Aging Report”).  Within one (1) business day following receipt, Customer will review the Aging Report and either (i) indicate its acceptance of the Aging Report provided by Arrow; or (ii) advise of discrepancies identified by Customer.
12.3    Disposition Plan.  Within two (2) business days following Customer’s receipt of the Aging Report, Customer will provide to Arrow a proposed disposition plan for the undisputed Aged Goods identified in the Aging Report (“Disposition Plan”).  Arrow will propose any adjustment to the Disposition Plan and the parties will agree to a revised Disposition Plan no later than three (3) business days following the end of the relevant month.
12.3    Customer Purchase of Aged Goods.  Following mutual agreement to the Disposition Plan, Customer will send Arrow a purchase order for the applicable Aged Goods against which Arrow will invoice Customer and store such Products, as applicable.  Terms of any such payments shall be net sixty (60) days from the date of invoice, payable in U.S. dollars.  This charge will be in addition to and separate from any other fees invoiced by Arrow pursuant to this Agreement.”
Except as modified by this Amendment, the remaining terms and conditions contained in the Agreement remain unchanged and in full force and effect.
IN WITNESS WHEREOF, the parties have caused this Amendment No. 1 to be executed by their duly authorized representatives as of the day and year first written above.
	
					
	FORESCOUT TECHNOLOGIES, INC.
	 
	ARROW ELECTRONICS, INC.

	 
	 
	 
	 
	 

	By:
	/s/ Darren J. Milliken
	 
	By:
	/s/ Charles Cobb

	 
	 
	 
	 
	 

	Name:
	Darren J. Milliken
	 
	Name:
	Charles Cobb

	 
	 
	 
	 
	 

	Title:
	SVP & General Counsel
	 
	Title:
	Manager, Customer Contracts

	 
	 
	 
	 
	 

	Date:
	2/22/2016
	 
	Date:
	2/23/2016

2Exhibit

Exhibit 10.14
Execution Version

EMPLOYMENT AGREEMENT
AS AMENDED AND RESTATED, MAY 18, 2016
This Amended and Restated Employment Agreement (“Agreement”) is by and between ForeScout Technologies, Inc., a Delaware corporation (the “Company”), and Michael P. DeCesare (the “Executive”) and effective as of May 18, 2016.  The Agreement amends and restates the original employment agreement between the Company and the Executive dated March 1, 2015 (the “Original Agreement”).
WHEREAS, the Company desires to employ the Executive and the Executive desires to be employed by the Company on the terms contained herein.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1.Employment.
(a)    Term. The Company hereby employs the Executive, and the Executive hereby accepts such employment, on an at-will basis, beginning as of March 1, 2015 (the “Start Date”). This Agreement shall have an initial term that expires on December 31, 2020 (the “Initial Employment Term”). On December 31, 2020, this Amended Agreement will automatically renew for additional successive one year terms as of the date thereof (each, a “Renewal Term”) unless either party provides the other party with written notice of non-renewal at least 60 days prior to the date of automatic renewal, in which case this Agreement will expire at the end of the Initial Employment Term or Renewal Term, as applicable (the Initial Employment Term and the Renewal Term, collectively the “Employment Term”). Non-renewal at the end of the Initial Employment Term or a Renewal Term shall not constitute termination without Cause under this Agreement, but a termination of this Agreement during the Employment Term will be a termination without Cause. To the extent that a definitive agreement for a transaction that would result in a Change in Control if consummated has been signed, the Company may not give a Notice of Non-Renewal until after the Change in Control has occurred or such transaction has been abandoned.
(b)    Position and Duties.
(i)    Executive Position. During the Term, the Executive shall serve as President and Chief Executive Officer of the Company, and shall have supervision and control over and responsibility for the day-to-day business and affairs of the Company and shall have such other powers and duties as may from time to time be prescribed by the Chairman of the Board of Directors of the Company (the “Board”), provided that such duties are consistent with the Executive’s position or other positions that he may hold from time to time. The Executive’s principal place of employment shall be Campbell, California. The Executive shall devote his full working time and efforts to the business and affairs of the Company. Notwithstanding the foregoing, the Executive may serve on other boards of directors, with the approval of the Board, or engage in religious, 

charitable or other community activities as long as such services and activities are disclosed to the Board and do not materially interfere with the Executive’s performance of his duties to the Company as provided in this Agreement.
(ii)    Board Membership. Upon commencement of employment as an Executive, and while Executive remains an employee in good standing, the Company will recommend that Executive be elected as a member of the Board of Directors with no additional compensation therefore. Executive will resign from the Board upon termination of employment.
2.    Compensation and Related Matters.
(a)    Base Salary. During the Term, the Executive’s initial annual base salary shall be $350,000. The Executive’s base salary shall be redetermined periodically by the Board or the Company’s Compensation Committee. The base salary in effect at any given time is referred to herein as “Base Salary.” The Base Salary shall be payable in a manner that is consistent with the Company’s usual payroll practices for senior executives.
(b)    Incentive Compensation. During the Term, the Executive shall be eligible to receive cash incentive compensation as determined by the Board or the Company’s Compensation Committee from time to time. The Executive’s target annual incentive compensation shall be $400,000 and will be awarded based on objective or subjective criteria established and approved by the Board, which shall have the sole discretion to determine whether you have earned any bonus and, if so, the amount of such bonus.
(c)    Equity.  The options and RSUs with respect to the Company’s Common Stock that previously were granted to the Executive will continue to be subject to their existing terms and any additional terms set forth in this Agreement, except as may be mutually agreed to by the parties.  During the Employment Term, the Executive shall be eligible to be granted additional stock-based awards to purchase Common Stock under (and therefore subject to all terms and conditions of) plans or programs as the Company may from time to time adopt, and subject to all rules of regulation of the Securities and Exchange Commission applicable thereto.  The number and type of additional stock-based awards, and the terms and conditions thereof, shall be determined by the Board, in its discretion, and under the plan or arrangement pursuant to which the Company’s stock-based awards are granted.
(d)    Expenses. The Executive shall be entitled to receive reimbursement for all reasonable expenses incurred by Executive in performing services hereunder, in accordance with the policies and procedures then in effect and established by the Company for its senior executive officers.
(e)    Other Benefits. During the Term, the Executive shall be eligible to participate in or receive benefits under the Company’s employee benefit plans in effect from time to time for the Company’s executive officers, subject to the terms of such plans.
(f)    Paid Time Off. During the Term, the Executive shall be entitled to receive paid time off in accordance with the Company’s policies, as in effect from time to time.

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3.    Termination. During the Term, the Executive’s employment hereunder may be terminated without any breach of this Agreement under the following circumstances:
(a)    Death. The Executive’s employment hereunder shall terminate upon his death.
(b)    Disability. The Company may terminate the Executive’s employment if he is disabled and unable to perform the essential functions of the Executive’s then existing position or positions under this Agreement with or without reasonable accommodation for a period of 180 days (which need not be consecutive) in any 12-month period. If any question shall arise as to whether during any period the Executive is disabled so as to be unable to perform the essential functions of the Executive’s then existing position or positions with or without reasonable accommodation, the Executive may, and at the request of the Company shall, submit to the Company a certification in reasonable detail by a physician selected by the Company to whom the Executive or the Executive’s guardian has no reasonable objection as to whether the Executive is so disabled or how long such disability is expected to continue, and such certification shall for the purposes of this Agreement be conclusive of the issue. The Executive shall cooperate with any reasonable request of the physician in connection with such certification. If such question shall arise and the Executive shall fail to submit such certification, the Company’s determination of such issue shall be binding on the Executive. Nothing in this Section 3(b) shall be construed to waive the Executive’s rights, if any, under existing law including, without limitation, the Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et seq. and the Americans with Disabilities Act, 42 U.S.C. §12101 et seq.
(c)    Termination by Company for Cause. The Company may terminate the Executive’s employment hereunder for Cause by a vote of the Board at a meeting of the Board called and held for such purpose so long as Executive has reasonable notice of such meeting and is allowed to be represented by counsel at such meeting. For purposes of this Agreement, “Cause” shall mean:
(i)    an act of dishonesty made by Executive in connection with Executive’s responsibilities as an employee;
(ii)    Executive’s conviction of, or plea of nolo contendere to, a felony or any crime involving fraud or embezzlement;
(iii)    Executive’s gross misconduct in connection with the performance of his duties;
(iv)    Executive’s willful breach of any obligations under any written agreement or covenant with the Company;
(v)    Executive’s failure to cooperate in good faith with a governmental or internal investigation of the Company or its directors, officers or employees, if the Company has requested Executive’s cooperation; or
(vi)    Executive’s continued failure to perform Executive1s employment duties after Executive has received a written demand of performance from the Company 

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which specifically sets forth the factual basis for the Company’s belief that Executive has not substantially performed his duties.
Provided however that “Cause” will not be deemed to exist in the event of Subsections (v) and (vi) unless Executive has been provided with (x) 30 days written notice by the Board of the act or omission constituting “Cause” and (y) 30 days opportunity to cure such act or omission, if capable of cure.
(d)    Termination Without Cause. The Company may terminate the Executive’s employment hereunder at any time without Cause. Any termination by the Company of the Executive’s employment under this Agreement which does not constitute a termination for Cause under Section 3(c) and does not result from the death or disability of the Executive under Section 3(a) or (b) shall be deemed a termination without Cause.
(e)    Termination by the Executive. The Executive may terminate his employment hereunder at any time for any reason, including but not limited to Good Reason. For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following events:
(i)    a material reduction of your Base Salary;
(ii)    a material reduction of your target bonus as set forth herein or as increased during the course of your employment with the Company;
(iii)    a material reduction in your duties, authority, reporting relationship or responsibilities;
(iv)    a requirement that you relocate to a location more than 50 miles from your then-current office location;
(v)    a material violation by the Company of a material term of any employment, severance or change of control agreement between you and the Company; or
(vi)    a failure by any successor entity to the Company to assume this letter agreement.
A Resignation for Good Reason will not be deemed to have occurred unless Executive gives the Company written notice of the condition within 90 days after the condition comes into existence and the Company fails to remedy the condition within 30 days after receiving the written notice.
(f)    Notice of Termination. Except for termination as specified in Section 3(a), any termination of the Executive’s employment by the Company or any such termination by the Executive shall be communicated by written Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon.

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(g)    Date of Termination. “Date of Termination” shall mean the date set forth in the Notice of Termination, and, except as otherwise agreed by the parties shall be: (i) if the Executive’s employment is terminated by his death, the date of his death; (ii) if the Executive’s employment is terminated on account of disability under Section 3(b) or by the Company for Cause under Section 3(c), the date on which Notice of Termination is given; (iii) if the Executive’s employment is terminated by the Company under Section 3(d), the date set forth in the Notice of Termination; (iv) if the Executive’s employment is terminated by the Executive under Section 3(e) without Good Reason, 30 days after the date on which a Notice of Termination is given, and (v) if the Executive’s employment is terminated by the Executive under Section 3(e) with Good Reason, 90 days after the expiration of any cure period. Notwithstanding the foregoing, in the event that the Executive gives a Notice of Termination to the Company, the Company may unilaterally accelerate the Date of Termination and such acceleration shall not result in a termination by the Company for purposes of this Agreement.
4.    Compensation Upon Termination.
(a)    Termination Generally. If the Executive’s employment with the Company is terminated for any reason, the Company shall pay or provide to the Executive (or to his authorized representative or estate) (i) any Base Salary earned through the Date of Termination, unpaid expense reimbursements (subject to, and in accordance with, Section 2(c) of this Agreement) and unused vacation that accrued through the Date of Termination on or before the time required by law but in no event more than 30 days after the Executive’s Date of Termination; and (ii) any vested benefits the Executive may have under any employee benefit plan of the Company through the Date of Termination, which vested benefits shall be paid and/or provided in accordance with the terms of such employee benefit plans (collectively, the“Accrued Benefit”).
(b)    Termination by the Company Without Cause or by the Executive with  Good Reason. During the Term, if the Executive’s employment is terminated by the Company without Cause as provided in Section 3(d), or the Executive terminates his employment for Good Reason as provided in Section 3(e), then the Company shall pay the Executive his Accrued Benefit. In addition, subject to the Executive signing a separation agreement containing, among other provisions, a general release of claims in favor of the Company in substantially the form attached hereto as Exhibit A (the “Separation Agreement and Release”) and the Separation Agreement and Release becoming irrevocable, all within 60 days after the Date of Termination:
(i)    the Company shall pay the Executive an amount equal to 100% of the sum of (A) the Executive’s Base Salary plus (B) the Executive’s target incentive compensation, as determined under Section 2(b);
(ii)    notwithstanding anything to the contrary in any applicable option agreement or stock-based award agreement, the unvested portion of all stock options, restricted stock units (“RSUs”), and other stock-based awards held by the Executive shall immediately accelerate and become fully exercisable or nonforfeitable as of the Date of Termination to the extent they would have vested on or before the first anniversary of the Date of Termination.  For purposes of the foregoing sentence, if the Date of Termination 

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occurs prior to a Liquidity Event, any Liquidity Event vesting condition will be disregarded for any RSUs or other stock-based awards that vest based on the occurrence of a Liquidity Event after satisfying the requirements of a time-based schedule, such that any portion of such awards for which the time-based vesting requirements have been satisfied as of the Date of Termination or would be satisfied as of the first anniversary of the Date of Termination will vest.  To the extent that any stock-based award was eligible to vest in full or in part based on performance, the performance component shall be deemed achieved at target; and
(iii)    the Company shall pay the Executive an amount equal to 12 months of COBRA premiums for Executive and has family based on the benefits in effect at Date of Termination; and
(iv)    the amounts payable under this Section 4(b), less applicable deductions and withholding, shall be paid out in a single lump sum within 60 days following the Date of Termination, provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, the Severance Amount shall be paid in the second calendar year.
5.    Change in Control Payment.  The provisions of this Section 5 set forth certain terms of an agreement reached between the Executive and the Company regarding the Executive’s rights and obligations upon the occurrence of a Change in Control of the Company.  These provisions are intended to assure and encourage in advance the Executive’s continued attention and dedication to his assigned duties and his objectivity during the pendency and after the occurrence of any such event.  These provisions shall apply in lieu of, and expressly supersede, the provisions of Section 4(b) regarding severance pay and benefits upon a termination of employment, if such termination of employment occurs within three months prior to the occurrence of the first event that ultimately leads to a Change in Control or within 18 months after a Change in Control.  These provisions shall terminate and be of no further force or effect beginning 18 months after a Change in Control.
(a)Change in Control.  Notwithstanding anything to the contrary in any applicable option agreement or stock-based award agreement, if during the Term there is a Change in Control, immediately prior to the Change in Control, Executive shall immediately accelerate and become fully exercisable or nonforfeitable to the extent that any stock-based award would have vested on or before the first anniversary of the Change in Control.  To the extent that any stock-based award was eligible to vest in full or in part based on performance, the performance component shall be deemed achieved at target.  Additionally, during the Term, if within three months prior to the occurrence of the first event that ultimately leads to a Change in Control or within 18 months after a Change in Control, the Executive’s employment is terminated by the Company without Cause as provided in Section 3(d) or the Executive terminates his employment for Good Reason as provided in Section 3(e), subject to the signing of the Separation Agreement and Release by the Executive and the Separation Agreement and Release becoming irrevocable, all within 60 days after the Date of Termination,

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(i)the Company shall pay the Executive a lump sum in cash in an amount equal to 100% of the sum of (A) the Executive’s then-current Base Salary (or the Executive’s Base Salary in effect immediately prior to the Change in Control, if higher) plus (B) the Executive’s target incentive compensation, as determined under Section 2(b); and
(ii)notwithstanding anything to the contrary in any applicable option agreement or stock-based award agreement, 100% of the unvested portion of all stock options and other stock-based awards held by the Executive shall immediately accelerate and become fully exercisable or nonforfeitable as of the Date of Termination.  To the extent that any stock-based award was eligible to vest in full or in part based on performance, the performance component shall be deemed achieved at target.  If any stock-based award will not continue through assumption or substitution after the Change in Control, such award will be fully vested immediately prior to the Change in Control; and
(iii)the Company shall pay the Executive an amount equal to 12 months of COBRA premiums for Executive and has family based on the benefits in effect at Date of Termination; and
(iv)the amounts payable under this Section 5(a), less applicable deductions and withholding, shall be paid out in a single lump sum within 60 days following the Date of Termination, provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, the Severance Amount shall be paid in the second calendar year.
(b)Additional Limitation.
(i)Anything in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment or distribution by the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, calculated in a manner consistent with Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and the applicable regulations thereunder (the “Severance Payments”), would be subject to the excise tax imposed by Section 4999 of the Code, the following provisions shall apply:
(A)If the Severance Payments, reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and local income and employment taxes payable by the Executive on the amount of the Severance Payments which are in excess of the Threshold Amount, are greater than or equal to the Threshold Amount, the Executive shall be entitled to the full benefits payable under this Agreement.
(B)If the Threshold Amount is less than (x) the Severance Payments, but greater than (y) the Severance Payments reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and local income and employment taxes on the amount of the Severance Payments which are in excess 

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of the Threshold Amount, then the Severance Payments shall be reduced (but not below zero) to the extent necessary so that the sum of all Severance Payments shall not exceed the Threshold Amount.  In such event, the Severance Payments shall be reduced in the following order: (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits.  To the extent any payment is to be made over time (e.g., in installments, etc.), then the payments shall be reduced in reverse chronological order.
(ii)For the purposes of this Section 5(b), “Threshold Amount” shall mean three times the Executive’s “base amount” within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar; and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by the Executive with respect to such excise tax.
(iii)The determination as to which of the alternative provisions of Section 5(b)(i) shall apply to the Executive shall be made by a nationally recognized accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Executive within 15 days of the Date of Termination, if applicable, or at such earlier time as is reasonably requested by the Company or the Executive.  For purposes of determining which of the alternative provisions of Section 5(b)(i) shall apply, the Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes at the highest marginal rates of individual taxation in the state and locality of the Executive’s residence on the Date of Termination, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes.  Any determination by the Accounting Firm shall be binding upon the Company and the Executive.
(c)For purposes of this Agreement, “Change in Control” shall mean any of the following:
(i)any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Act”) (other than the Company, any of its subsidiaries, or any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Company or any of its subsidiaries), together with all “affiliates” and “associates” (as such terms are defined in Rule 12b-2 under the Act) of such person, shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, of securities of the Company representing 50 percent or more of the combined voting power of the Company’s then outstanding securities having the right to vote in an election of the Board (“Voting Securities”) (in such case other than as a result of an acquisition of securities directly from the Company); or

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(ii)the consummation of (A) any consolidation or merger of the Company where the stockholders of the Company, immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, shares representing in the aggregate more than 50 percent of the voting shares of the Company issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any), or (B) any sale or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the Company.
Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred for purposes of the foregoing clause (i) solely as the result of an acquisition of securities by the Company which, by reducing the number of shares of Voting Securities outstanding, increases the proportionate number of Voting Securities beneficially owned by any person to 50 percent or more of the combined voting power of all of the then outstanding Voting Securities; provided, however, that if any person referred to in this sentence shall thereafter become the beneficial owner of any additional shares of Voting Securities (other than pursuant to a stock split, stock dividend, or similar transaction or as a result of an acquisition of securities directly from the Company) and immediately thereafter beneficially owns 50 percent or more of the combined voting power of all of the then outstanding Voting Securities, then a “Change in Control” shall be deemed to have occurred for purposes of the foregoing clause (i).
Further, and for purposes of the “Liquidity Event” definition only, a transaction will not be deemed a Change in Control unless the transaction qualifies as a change in control event within the meaning of Section 409A of the Code.  For purposes of this Agreement, “Liquidity Event” means the earlier of (i) a Change in Control or (ii) the first date following the expiration of all lockup and blackout periods following the closing of the Company’s first firm commitment underwritten public offering of its common stock under the Securities Act of 1933, as amended.
(d)Anything in this Agreement to the contrary notwithstanding, if at the time of the Executive’s separation from service within the meaning of Section 409A of the Code, the Company determines that the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the Executive becomes entitled to under this Agreement on account of the Executive’s separation from service would be considered deferred compensation otherwise subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one day after the Executive’s separation from service, or (B) the Executive’s death.  If any such delayed cash payment is otherwise payable on an installment basis, the first payment shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the application of this provision, and the balance of the installments shall be payable in accordance with their original schedule.

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(e)All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company or incurred by the Executive during the time periods set forth in this Agreement.  All reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred.  The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year (except for any lifetime or other aggregate limitation applicable to medical expenses).  Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.
(f)To the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive’s termination of employment, then such payments or benefits shall be payable only upon the Executive’s “separation from service.” The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h).
(g)The parties intend that this Agreement will be administered in accordance with Section 409A of the Code.  To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner so that all payments hereunder are exempt from Section 409A of the Code or are paid in a manner that does not result in the imposition of the tax specified in Section 409A(a) of the Code.  Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2).  The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary so that payments are exempt from Section 409A of the Code or are paid in a manner that does not result in the imposition of the tax specified in Section 409A(a) of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.
(h)The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions of this Agreement are determined to constitute non-qualified deferred compensation subject to Section 409A of the Code that is not paid in a manner that does not result in the imposition of the tax specified in Section 409A(a) of the Code.
6.Confidential Information, Indemnification, and Cooperation.
(a)Confidential Information.  Executive has signed the agreement attached hereto as Exhibit B and will comply with its terms.
(b)Insurance and Indemnification.  Executive shall be entitled to indemnification to the maximum extent permitted by law against expenses (including attorneys’ fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred in connection with any threatened, pending or completed action, suit, or proceeding in which such person was or is a party or is threatened to be made a party by reason of the fact that such 

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Executive is or was a director or officer of the corporation.  The Company shall pay the expenses (including attorney’s fees) incurred by Executive if entitled to indemnification hereunder in defending any action, suit or proceeding referred to in this Section 6(b) in advance of its final disposition; provided, however, that payment of expenses incurred by Executive in advance of the final disposition of such action, suit or proceeding shall be made only upon receipt of an undertaking by Executive to repay all amounts advanced if it should ultimately be determined that Executive is not entitled to be indemnified.
(c)Documents, Records, etc.  All documents, records, data, apparatus, equipment and other physical property, whether or not pertaining to Confidential Information, which are furnished to the Executive by the Company or are produced by the Executive in connection with the Executive’s employment will be and remain the sole property of the Company.  The Executive will return to the Company all such materials and property as and when requested by the Company.  In any event, the Executive will return all such materials and property immediately upon termination of the Executive’s employment for any reason.  The Executive will not retain with the Executive any such material or property or any copies thereof after such termination.
(d)Third-Party Agreements and Rights.  The Executive hereby confirms that the Executive is not bound by the terms of any agreement with any previous employer or other party which restricts in any way the Executive’s use or disclosure of information or the Executive’s engagement in any business.  The Executive represents to the Company that the Executive’s execution of this Agreement, the Executive’s employment with the Company and the performance of the Executive’s proposed duties for the Company will not violate any obligations the Executive may have to any such previous employer or other party.  In the Executive’s work for the Company, the Executive will not disclose or make use of any information in violation of any agreements with or rights of any such previous employer or other party, and the Executive will not bring to the premises of the Company any copies or other tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party.
(e)Litigation and Regulatory Cooperation.  During and after the Executive’s employment, the Executive shall cooperate fully with the Company in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company which relate to events or occurrences that transpired while the Executive was employed by the Company.  The Executive’s full cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient times.  During and after the Executive’s employment, the Executive also shall cooperate fully with the Company in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while the Executive was employed by the Company.  The Company shall reimburse the Executive for any reasonable out-of-pocket expenses incurred in connection with the Executive’s performance of obligations pursuant to this Section 7(e).
(f)Injunction.  The Executive agrees that it would be difficult to measure any damages caused to the Company which might result from any breach by the Executive of the 

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promises set forth in this Section 7, and that in any event money damages would be an inadequate remedy for any such breach.  Accordingly, subject to Section 8 of this Agreement, the Executive agrees that if the Executive breaches, or proposes to breach, any portion of this Agreement, the Company shall be entitled, in addition to all other remedies that it may have, to an injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the Company.
7.Arbitration of Disputes.  Any controversy or claim arising out of or relating to this Agreement or the breach thereof or otherwise arising out of the Executive’s employment or the termination of that employment (including, without limitation, any claims of unlawful employment discrimination whether based on age or otherwise) shall, to the fullest extent permitted by law, be settled by arbitration in any forum and form agreed upon by the parties or, in the absence of such an agreement, under the auspices of the American Arbitration Association (“AAA”) in Santa Clara County, California in accordance with the Employment Dispute Resolution Rules of the AAA, including, but not limited to, the rules and procedures applicable to the selection of arbitrators.  In the event that any person or entity other than the Executive or the Company may be a party with regard to any such controversy or claim, such controversy or claim shall be submitted to arbitration subject to such other person or entity’s agreement.  Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  This Section 8 shall be specifically enforceable.  Notwithstanding the foregoing, this Section 8 shall not preclude either party from pursuing a court action for the sole purpose of obtaining a temporary restraining order or a preliminary injunction in circumstances in which such relief is appropriate; provided that any other relief shall be pursued through an arbitration proceeding pursuant to this Section 8.
8.Consent to Jurisdiction.  To the extent that any court action is permitted consistent with or to enforce Section 8 of this Agreement, the parties hereby consent to the jurisdiction of the Superior Court of the State of California and the United States District Court for the District of Northern California.  Accordingly, with respect to any such court action, each party (a) submits to the personal jurisdiction of such courts; (b) consents to service of process; and (c) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process.
9.Integration.  This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements between the parties concerning such subject matter, including, for the avoidance of doubt, the Original Agreement.  This Agreement may not be altered, modified, or amended except by written instrument signed by the parties that specifically references this Section 9.
10.Withholding.  All payments made by the Company to the Executive under this Agreement shall be net of any tax or other amounts required to be withheld by the Company under applicable law.
11.Successor to the Executive.  This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal representatives, executors, administrators, heirs, distributees, devisees and legatees.  In the event of the Executive’s death after his termination of 

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employment but prior to the completion by the Company of all payments due him under this Agreement, the Company shall continue such payments to the Executive’s beneficiary designated in writing to the Company prior to his death (or to his estate, if the Executive fails to make such designation).
12.Enforceability.  If any portion or provision of this Agreement (including, without limitation, any portion or provision of any section of this Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.
13.Survival.  The provisions of this Agreement shall survive the termination of this Agreement and/or the termination of the Executive’s employment to the extent necessary to effectuate the terms contained herein.
14.Waiver.  No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party.  The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.
15.Notices.  Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt requested, to the Executive at the last address the Executive has filed in writing with the Company or, in the case of the Company, at its main offices, attention of the Board.
16.Amendment.  This Agreement may be amended or modified only by a written instrument signed by the Executive and by a duly authorized representative of the Company.
17.Governing Law.  This is a California contract and shall be construed under and be governed in all respects by the laws of the State of California, without giving effect to the conflict of laws principles of such State.  With respect to any disputes concerning federal law, such disputes shall be determined in accordance with the law as it would be interpreted and applied by the United States Court of Appeals for the Ninth Circuit.
18.Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be taken to be an original; but such counterparts shall together constitute one and the same document.
19.Successor to Company.  The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and agree to perform this Agreement to the same extent that the Company would be required to perform it if no succession had taken 

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place.  Failure of the Company to obtain an assumption of this Agreement at or prior to the effectiveness of any succession shall be a material breach of this Agreement.
20.Gender Neutral.  Wherever used herein, a pronoun in the masculine gender shall be considered as including the feminine gender unless the context clearly indicates otherwise.

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Execution Version

Each party is signing this Agreement on the date set out opposite its signature.
	
			
	 
	 
	FORESCOUT TECHNOLOGIES, INC.

	 
	 
	 

	5/25/2016 | 08:43 PT
	 
	/s/Hezy Yeshurun

	Date
	 
	Hezy Yeshurun

	 
	 
	Chair of the Board

	 
	 
	 

	 
	 
	MICHAEL P. DECESARE

	 
	 
	 

	5/25/2016 14:27
	 
	/s/Michael P. DeCesare

	Date
	 
	Michael P. DeCesare

	 
	 
	 

	 
	 
	 

	 
	 
	 

EXHIBIT A
FORM OF SEPARATION AGREEMENT AND GENERAL RELEASE
This Separation Agreement and General Release (this “Agreement”) is hereby entered into by and between [Executive Name], an individual (“Executive”), and ForeScout Technologies, Inc., a Delaware corporation, on behalf of itself and all of its subsidiaries (collectively, the “Company”).
Recitals
1.    Executive has been employed by the Company pursuant to an employment agreement by and between the Company and Executive effective as of [insert date of employment agreement] (the “Employment Agreement”), and currently is serving as [specify position held at time of termination] ;
2.    Executive’s employment with the Company and any of its parents, direct or indirect subsidiaries, affiliates, divisions, or related entities (collectively referred to herein as the “Company and its Related Entities”) will be ended on the terms and conditions set forth in this Agreement.
Agreement
In consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows:
1.    Effective Date. Except as otherwise provided herein, this Agreement shall be effective on the eighth day after it has been executed by both of the parties (the “Effective Date”).
2.    End of Employment and Service as a Director. Executive’s employment with the Company and its Related Entities has ended or will end effective as of [insert time] Pacific Time, on [insert termination date] (the “Termination Date”). If Executive is a member of the Board of Directors of the Company and/or its Related Entities (the “Board”), Executive hereby voluntarily resigns from the Board, effective [insert termination date].
3.    Continuation of Benefits After the Termination Date. Except as expressly provided in this Agreement or in the plan documents governing the Company’s employee benefit plans, after the Termination Date, Executive will no longer be eligible for, receive, accrue, or participate in any other benefits or benefit plans provided by the Company and its Related Entities, including, without limitation, medical, dental and life insurance benefits, and the Company’s 401(k) retirement plan; provided, however, that nothing in this Agreement shall waive Executive’s right to any vested benefits, including vested amounts in the Company’s 401(k) retirement plan, which amounts shall be handled as provided in the plan.
4.    Payments Upon Termination. Executive will be entitled to receive payment of the following: (i) all earned but unpaid compensation (including accrued unpaid vacation) 

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through the effective date of termination, payable on or before the termination date; and (ii) reimbursement, made in accordance with Section 2(d) of the Employment Agreement, of any monies advanced or incurred by Executive in connection with his employment for reasonable and necessary Company-related expenses incurred on or before the Termination Date. The provisions of this Agreement shall not waive or terminate any rights to compensation or vested benefits under the Company’s benefits plans or as required by law, or to indemnification Executive may have under the Company’s Certificate of Incorporation, Bylaws or separate indemnification agreement, as applicable.
5.    Severance Payments or Change in Control Payments. In return for Executive’s promises in this Agreement, the Company will provide Executive with the severance payments as delineated in Section 4(b) of the Employment Agreement (“Severance Payments”) or the Change in Control Payments as delineated in Section 5 of the Employment Agreement (“Change in Control Payments”) and as applicable based on the nature of the termination, subject to the terms and conditions set forth in the Employment Agreement, including, but not limited to,  Sections 5(b), 6, and 11 thereof. The Severance Payments or Change in Control Payments will be paid as specified in Section 4(b) or Section 5 of the Employment Agreement, as applicable and shall be subject to required withholdings and authorized deductions and to Section 21 below. For purposes of this Agreement, the term “Severance Period “means twelve (12) months, regardless of whether Executive receives the Severance Payments or the Change in Control Payments.
6.    Acknowledgement of Total Compensation and Indebtedness. Executive acknowledges and agrees that the cash payments under Sections 4 and 5 of this Agreement extinguish any and all obligations for monies, or other compensation or benefits that Executive claims or could claim to have earned or claims or could claim is owed to him as a result of his employment by the Company and its Related Entities through the Termination Date, under the Employment Agreement or otherwise. Notwithstanding the foregoing, the parties acknowledge and agree that the provisions of this Section 6 shall not terminate any rights Executive has under Section 3 or to other payments Executive may have, and to any indemnification Executive may have under the Company’s Bylaws or separate indemnification agreement, as applicable.
7.    Status of Related Agreements and Future Employment.
(a)    Agreements Between Executive and the Company. [Agreements to be scheduled at time of termination].
(b)    Employment Agreement. The parties agree that the Employment Agreement shall be terminated as of the Termination Date. Notwithstanding the termination of the Employment Agreement, the parties hereto acknowledge that certain rights and obligations set forth in the Employment Agreement extend beyond the Termination Date. In the event that any provision of this Agreement conflicts with Exhibit B of or Sections 7(a), 7(c), or 7(f) of the Employment Agreement, the terms and provisions of the section(s) providing the greatest protection to the Company and its Related Entities shall control.

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8.    Release by Executive.
(a)    Except for any obligations or covenants of the Company pursuant to this Agreement and as otherwise expressly provided in this Agreement, Executive, for himself and his heirs, executors, administrators, assigns, successors and agents (collectively, the “Executive’s Affiliates”) hereby fully and without limitation releases and forever discharges the Company and its Related Entities, and each of their respective agents, representatives, shareholders, owners, officers, directors, employees, consultants, attorneys, auditors, accountants, investigators, affiliates, successors and assigns (collectively, the “Company Releasees”), both individually and collectively, from any and all waivable rights, claims, demands, liabilities, actions, causes of action, damages, losses, costs, expenses and compensation, of whatever nature whatsoever, known or unknown, fixed or contingent, which Executive or any of Executive’s Affiliates has or may have or may claim to have against the Company Releasees by reason of any matter, cause, or thing whatsoever, from the beginning of time to the Effective Date (“Claims”), arising out of, based upon, or relating to his employment or the termination of his employment with the Company and its Related Entities and/or his service as an officer of any of the ompany Releasees, any agreement or compensation arrangement between Executive and any of the Company Releasees, to the maximum extent permitted by law.
(b)    Executive specifically and expressly releases any Claims arising out of or based on: the California Fair Employment and Housing Act, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the National Labor Relations Act and the Equal Pay Act, as the same may be amended from time to time; the California common law on fraud, misrepresentation, negligence, defamation, infliction of emotional distress or other tort, breach of contract or covenant, violation of public policy or wrongful termination; state or federal wage and hour laws, and other provisions of the California Labor Code, to the extent these may be released herein as a matter of law; or any other state or federal law, rule, or regulation dealing with the employment relationship, except those claims which may not be released herein as a matter of law.
(c)    Nothing contained in this Section 8 or any other provision of this Agreement shall release or waive any right that Executive has to indemnification and/or reimbursement of expenses by the Company and its Related Entities with respect to which Executive may be eligible as provided in California Labor Code section 2802, the Company’s and its Related Entities’ Certificates of Incorporation, Bylaws and any applicable directors and officers, errors & omissions, umbrella or general liability insurance policies, any indemnification agreements, including the Employment Agreement; or any other applicable source, nor prevent Executive from cooperating in an investigation of the Company by the Equal Employment Opportunity Commission (“EEOC”).
9.    Waiver of Civil Code Section 1542.
(a)    Executive understands and agrees that the release provided herein extends to all Claims released above whether known or unknown, suspected or unsuspected, which may be released as a matter of law. Executive expressly waives and relinquishes any and all rights he may have under California Civil Code section 1542, which provides as follows:

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“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. “
Executive expressly waives and releases any rights and benefits which he has or may have under any similar law or rule of any other jurisdiction. It is the intention of each party through this Agreement to fully, finally and forever settle and release the Claims as set forth above. In furtherance of such intention, the release herein given shall be and remain in effect as a full and complete release of such matters notwithstanding the discovery of any additional Claims or facts relating thereto.
10.     [If Executive is age 40 or over on Termination Date] Release of Federal Age Discrimination Claims by Executive. Executive hereby knowingly and voluntarily waives and releases all rights and claims, known or unknown, arising under the Age Discrimination In Employment Act of 1967, as amended, which he might otherwise have had against the Company or any of the Company Releasees regarding any actions which occurred prior to the date that Executive signed this Agreement, except that Executive is not prevented from cooperating in an investigation by the EEOC or from filing an EEOC charge other than for personal relief.
11.    Release by Company and its Related Entities. The Company and its Related Entities hereby release and forever discharge Executive, from any and all waivable actions, causes of action, covenants, contracts, claims and demands of whatever character, nature and kind, whether known or unknown, which the Company and its Related Entities ever had, now have, or any of them hereafter can, shall or may have by reason of Executive’s employment and/or his service as a director and/or officer of the Company and/or its Related Entities; provided, however, that this general release shall not apply, or be deemed or construed to apply, to (a) any of Executive’s continuing obligations pursuant to this Agreement or the Employment Agreement, (b) criminal conduct or acts or omissions constituting willful misconduct or gross negligence by Executive during his employment with the Company, or (c) recoupment of all or a portion of any previously awarded bonus or equity award pursuant to the Company’s Recoupment (Clawback) Policy, if any, that was in effect when the bonus was paid or the equity award vested or was exercised by Executive, whichever was later.
12.     [If Executive is age 40 or over on Termination Date] Review and Revocation Rights. Executive hereby is advised of the following:
(a)    Executive has the right to consult with an attorney before signing this Agreement and is encouraged by the Company to do so;
(b)    Executive has twenty-one (21) days from his receipt of this Agreement to consider it; and
(c)    Executive has seven (7) days after signing this Agreement to revoke this Agreement, and this Agreement will not be effective until that revocation period has expired 

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without revocation. Executive agrees that in order to exercise his right to revoke this Agreement within such seven (7) day period, he must do so in a signed writing delivered to the Company’s Board before the close of business on the seventh calendar day after he signs this Agreement.
13.    Confidentiality of Agreement. After the execution of this Agreement by Executive, neither Executive, his attorney, nor any person acting by, through, under or in concert with them, shall disclose any of the terms of or amount paid under this Agreement (other than to state that the Company has filed this Agreement and/or agreements related thereto as public documents) or the negotiation thereof to any individual or entity; provided, however, that the foregoing shall not prevent such disclosures by Executive to his attorney, tax advisors and/or immediate family members, or as may be required by law.
14.    No Filings. Executive represents that he has not filed any lawsuits, claims, charges or complaints, which are pending as of the date hereof, against the Company Releasees with any local, state or federal agency or court from the beginning of time to the date of execution of this Agreement, and that Executive is not aware of any facts that would support any Claims or any compliance-related or code of ethics violations of any kind whatsoever against the Company Releasees, including without limitation any claims for any work-related injuries. If Executive hereafter commences, joins in, or in any manner seeks relief through any suit arising out of, based upon, or relating to any of the Claims released in this Agreement, or in any manner asserts against the Company Releasees any of the Claims released in this Agreement, then Executive agrees to pay to the Company Releasees against whom such Claim(s) is asserted, in addition to any other damages caused thereby, all attorneys’ fees incurred by the Company Releasees in defending or otherwise responding to the suit or Claim; provided, however, that this provision shall not obligate Executive to pay the Company Releasees’ attorneys’ fees in any action challenging the release of claims under the Older Workers Benefit Protection Act or the ADEA, unless otherwise allowed by law. If any governmental agency or court ever assumes jurisdiction over any such lawsuit, claim, charge or complaint and/or purports to bring any legal proceeding, in whole or in part, on behalf of Executive based upon events occurring prior to the execution of this Agreement, Executive will request such agency or court to withdraw from and/or to dismiss the lawsuit, claim, charge or complaint with prejudice.
15.    Confidential and Proprietary Information. Executive acknowledges that certain information, observations and data obtained by him during the course of or related to his employment with the Company and its Related Entities (including, without limitation, projection programs, business plans, business matrix programs ( i.e., measurement of business), strategic financial projections, certain financial information, shareholder information, technology and product design information, marketing plans or proposals, personnel information, customer lists and other customer information) are the sole property of the Company and its Related Entities and constitute Proprietary Information as defined in Exhibit B of and Section 7(a) of the Employment Agreement. Executive represents and warrants that he has returned all files, customer lists, financial information and other property of the Company and its Related Entities that were in Executive’s possession or control without retaining copies thereof. Executive further represents and warrants that he does not have in his possession or control any files, customer lists, financial information or other property of the Company and its Related Entities. In addition to his promises in Exhibit B of and Sections 7(a),  7(c), and 7(f) of the Employment Agreement, 

5

Executive agrees that he will not disclose to any person or use any such information, observations or data without the written consent of the Board. If Executive is served with a deposition subpoena or other legal process calling for the disclosure of such information, or if he is contacted by any third person requesting such information, he will notify the Board as soon as is reasonably practicable after receiving notice and will reasonably cooperate with the Company and its Related Entities in minimizing the disclosure thereof; provided, that nothing in this Agreement will affect Executive’s obligations to testify truthfully in response to any subpoena or other legally required discovery proceeding.
16.    Prohibited Activities.
(a)    Non-Solicitation of Customers and Other Business Partners. Executive agrees that, for a period beginning on the Effective Date and ending twelve (12) months after termination of Executive’s employment with the Company, regardless of the reason for such termination, Executive shall not use any Proprietary Information to, directly or indirectly, solicit, direct, interfere with, or entice away from the Company any existing customer, licensee, licensor, vendor, contractor or distributor of the Company or for the customer or other business partner to expand its business with a competitor, without the prior written consent of the Board.
(b)    Non-Solicitation of Employees. Executive recognizes the substantial expenditure of time and effort which the Company devotes to the recruitment, hiring, orientation, training and retention of its employees. Accordingly, Executive agrees that, for a period beginning on the Effective Date and ending twelve (12) months after termination of Executive’s employment with the Company, regardless of the reason for such termination, Executive shall not solicit for employment the services of any employee of the Company in a position classified as exempt from overtime pay requirements. For purposes of the foregoing, “employee of the Company” shall include any person who was an employee of the Company at any time within six (6) months prior to the prohibited conduct.
(c)    Scope of Restrictions. Executive agrees that the restrictions in Sections 16(a) and (b), above, are reasonable and necessary to protect the Company’s trade secrets and that they do not foreclose Executive from working in the network security industry generally. To the extent that any of the provisions in this Section 16 are held to be overly broad or otherwise unenforceable at the time enforcement is sought, Executive agrees that the provision shall be reformed and enforced to the greatest extent permissible by law. Executive further agrees that if any portion of this Section 16 is held to be unenforceable, that the remaining provisions of it shall be enforced as written.
17.    Remedies. Executive acknowledges that any misuse of Proprietary Information belonging to the Company and its Related Entities, or any violation of Exhibit B of or Section 7 of the Employment Agreement, and any violation of Sections 13, 15 and 16 of this Agreement, will result in irreparable harm to the Company and its Related Entities, and therefore, the Company and its Related Entities shall, in addition to any other remedies, be entitled to immediate injunctive relief. To the extent there is any conflict between Exhibit B of or Section 7 of the Employment Agreement and this Section 17, the provision providing the greatest protection to the Company and its Related Entities shall control. In addition, in the event of a 

6

breach of any provision of this Agreement by Executive, including Sections 13,  15 and 16, Executive shall forfeit, and the Company and its Related Entities may withhold payment of any unpaid portion of, the Severance Payments or Change in Control Payments provided under Section 5, above.
18.    Cooperation Clause.
(a)    To facilitate the orderly conduct of the Company and its Related Entities’ businesses, for the Severance Period, Executive agrees to cooperate, at no charge, with the Company and its Related Entities’ reasonable requests for information or assistance related to the time of his employment.
(b)    For the Severance Period, Executive agrees to cooperate, at no charge, with the Company’s and its Related Entities’ and its or their counsel’s reasonable requests for information or assistance related to (i) any investigations (including internal investigations) and audits of the Company’s and its Related Entities’ management’s current and past conduct and business and accounting practices and (ii) the Company’s and its Related Entities’ defense of, or other participation in, any administrative, judicial, or other proceeding arising from any charge, complaint or other action which has been or may be filed relating to the period during which Executive was employed by the Company and its Related Entities. The Company will promptly reimburse Executive for his reasonable, customary and documented out-of-pocket business expenses in connection with the performance of his duties under this Section 18. Except as required by law or authorized in advance by the Board of Directors of the Company, Executive will not communicate, directly or indirectly, with any third party other than Executive’s legal counsel, including any person or representative of any group of people or entity who is suing or has indicated that a legal action against the Company and its Related Entities or any of their directors or officers is being contemplated, concerning the management or governance of the Company and its Related Entities, the operations of the Company and its Related Entities, the legal positions taken by the Company and its Related Entities, or the financial status of the Company and its Related Entities. If asked about any such individuals or matters, Executive shall say: “I have no comment, “and shall direct the inquirer to the Company. Executive acknowledges that any violation of this Section 18 will result in irreparable harm to the Company and its Related Entities and will give rise to an immediate action by the Company and its Related Entities for injunctive relief.
19.    No Future Employment. Executive understands that his employment with the Company and its Related Entities will irrevocably end as of the Termination Date and will not be resumed at any time in the future. Executive agrees that he will not apply for, seek or accept employment by the Company and its Related Entities at any time, unless invited to do so by the Company and its Related Entities.
20.    Tax Issues. The parties agree that the payments and benefits provided under this Agreement, and all other contracts, arrangements or programs that apply to him, shall be subject to Sections 5(b), 6, and 11 of the Employment Agreement.

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21.    Non-disparagement. Executive agrees not to criticize, denigrate, or otherwise disparage the Company and its Related Entities, or any of their directors, officers, products, processes, experiments, policies, practices, standards of business conduct, or areas or techniques of research. The Company agrees not to authorize or condone denigrating or disparaging statements about Executive to any third party, including by press release or other formally released announcement. Factually accurate statements in legal or public filings shall not violate this provision. In addition, nothing in this Section 21 shall prohibit Executive or the Company or the Board, or any of their employees or members from complying with any lawful subpoena or court order or taking any other actions affirmatively authorized by law.
22.    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without giving effect to principles of conflict of laws.
23.    Dispute Resolution. The parties hereby agree that all disputes, claims or controversies arising from or otherwise in connection with this Agreement (except for injunctive relief sought by either party) between them and between Executive and any of the Company’s affiliated entities and the successor of all such entities, and any director, shareholder or employee of the Company will be resolved in accordance with Sections 8 and 9 of the Employment Agreement, except for its attorneys’ fee provision.
24.    Attorneys’ Fees. Except as otherwise provided herein, in any action, litigation or proceeding between the parties arising out of or in relation to this Agreement, including any purported breach of this Agreement, the prevailing party shall be entitled to an award of its costs and expenses, including reasonable attorneys’ fees.
25.    Non-Admission of Liability. The parties understand and agree that neither the payment of any sum of money nor the execution of this Agreement by the parties will constitute or be construed as an admission of any wrongdoing or liability whatsoever by any party.
26.    Severability. If any one or more of the provisions contained herein (or parts thereof), or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity and enforceability of any such provision in every other respect and of the remaining provisions hereof will not be in any way impaired or affected, it being intended that all of the rights and privileges shall be enforceable to the fullest extent permitted by law.
27.    Entire Agreement. This Agreement represents the sole and entire agreement among the parties and, except as expressly stated herein, supersedes all prior agreements, negotiations and discussions among the parties with respect to the subject matters contained herein.
28.    Waiver. No waiver by any party hereto at any time of any breach of, or compliance with, any condition or provision of this Agreement to be performed by any other party hereto may be deemed a waiver of similar or dissimilar provisions or conditions at the same time or at any prior or subsequent time .

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29.    Amendment. This Agreement may be modified or amended only if such modification or amendment is agreed to in writing and signed by duly authorized representatives of the parties hereto, which writing expressly states the intent of the parties to modify this Agreement.
30.    Counterparts. This Agreement may be executed in counterparts, each of which will be deemed to be an original as against any party that has signed it, but both of which together will constitute one and the same instrument.
31.    Assignment. This Agreement inures to the benefit of and is binding upon the Company and its successors and assigns, but Executive’s rights under this Agreement are not assignable, except to his estate.
32.    Notice. All notices, requests, demands, claims and other communications hereunder shall be in writing and shall be deemed to have been duly given (a) if personally delivered or delivered by overnight courier; (b) if sent by electronic mail; or (c) if mailed by overnight or by first class, United States certified or registered mail, postage prepaid, return receipt requested, and properly addressed as follows:
	
		
	If to the Company:
	ForeScout Technologies, Inc.

	 
	900 East Hamilton Avenue, Suite 300

	 
	Campbell, California 95008

	 
	Attn: Board of Directors

	 
	c/o Corporate Secretary

	 
	email: generalcounsel@forescout.com

	 
	 

	If to Executive:
	[Executive Name]

	 
	[Address: most recent on file with the Company]

	 
	[Email: most recent on file with the Company]

Such addresses may be changed, from time to time, by means of a notice given in the manner provided above. Notice will conclusively be deemed to have been given when personally delivered (including, but not limited to, by messenger or courier); or if given by mail, on the third business day after being sent by first class, United States certified or registered mail; or if given by Federal Express or other similar overnight service, on the date of delivery; or if given by electronic mail during normal business hours on a business day, when confirmation of transmission is indicated by the sender’s computer; or if given by electronic mail at any time other than during normal business hours on a business day, the first business day following when confirmation of transmission is indicated by the sender’s computer. Unless otherwise agreed, notices, requests, demands and other communications delivered to legal counsel of any party 

9

hereto, whether or not such counsel shall consist of in-house or outside counsel, shall not constitute duly given notice to any party hereto.
33.    Miscellaneous Provisions.
(a)    The parties represent that they have read this Agreement and fully understand all of its terms; that they have conferred with their attorneys, or have knowingly and voluntarily chosen not to confer with their attorneys about this Agreement; that they have executed this Agreement without coercion or duress of any kind; and that they understand any rights that they have or may have, and they are signing this Agreement with full knowledge of any such rights.
(b)    Both parties have participated in the drafting of this Agreement with the assistance of counsel to the extent they desired. The language in all parts of this Agreement must be in all cases construed simply according to its fair meaning and not strictly for or against any party. Whenever the context requires, all words used in the singular must be construed to have been used in the plural, and vice versa, and each gender must include any other gender. The captions of the Sections of this Agreement are for convenience only and must not affect the construction or interpretation of any of the provision herein.
(c)    Each provision of this Agreement to be performed by a party hereto is both a covenant and condition, and is a material consideration for the other party’s performance hereunder, and any breach thereof by the party will be a material default hereunder. All rights, remedies, undertakings, obligations, options, covenants, conditions and agreements contained in this Agreement are cumulative and no one of them is exclusive of any other. Time is of the essence in the performance of this Agreement.
(d)    Each party acknowledges that no representation, statement or promise made by any other party, or by the agent or attorney of any other party, except for those in this Agreement, has been relied on by him or it in entering into this Agreement.
(e)    Unless expressly set forth otherwise, all references herein to a “day “are deemed to be a reference to a calendar day. All references to “business day “mean any day of the year other than a Saturday, Sunday or a public or bank holiday in Santa Clara County, California. Unless expressly stated otherwise, cross-references herein refer to provisions within this Agreement and are not references to any other document.
(f)    Each party to this Agreement will cooperate fully in the execution of any and all other documents and in the completion of any additional actions that may be necessary or appropriate to give full force and effect to the terms and intent of this Agreement.
(Signature Page to Follow)

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EACH OF THE PARTIES ACKNOWLEDGES THAT HE/IT HAS READ THIS AGREEMENT, UNDERSTANDS IT AND IS VOLUNTARILY ENTERING INTO IT, AND THAT IT INCLUDES A WAIVER OF THE RIGHT TO A TRIAL BY JURY, AND, WITH RESPECT TO EXECUTIVE, HE UNDERSTANDS THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the dates written below.
	
			
	EXECUTIVE:
	 
	 

	 
	 
	 

	 
	[Executive Name]

	 
	 
	 

	 
	Date:
	 

	 
	 
	 

	 
	 
	 

	COMPANY:
	ForeScout Technologies, Inc.

	 
	 
	 

	 
	By:
	 

	 
	Name:
	 

	 
	Title:
	 

	 
	 
	 

	 
	Date:
	 

	 
	 
	 

(Signature Page of the Separation Agreement and General Release)

Exhibit B 
PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT
The following confirms and memorializes an agreement that ForeScout Technologies, Inc., a Delaware corporation (the “Company”) and I (Michael P. DeCesare) have had since the commencement of my employment with the Company in any capacity and that is and has been a material part of the consideration for my employment by Company:
1.I have not entered into, and I agree I will not enter into, any agreement either written or oral in conflict with this Agreement or my employment with Company. I will not violate any agreement with or rights of any third party or, except as expressly authorized by Company in writing hereafter, use or disclose my own or any third party’s confidential information or intellectual property when acting within the scope of my employment or otherwise on behalf of Company. Further, I have not retained anything containing any confidential information of a prior employer or other third party, whether or not created by me.
2.    Company shall own all right, title and interest (including patent rights, copyrights, trade secret rights, mask work rights and all other intellectual and industrial property rights of any sort throughout the world) relating to any and all inventions (whether or not patentable), works of authorship, mask works, designs, know-how, ideas and information made or conceived or reduced to practice, in whole or in part, by me during the term of my employment with Company to and only to the fullest extent allowed by California Labor Code Section 2870 (which is attached as Appendix A) (collectively “Inventions”) and I will promptly disclose all Inventions to Company. I will also disclose anything I believe is excluded by Section 2870 so that the Company can make an independent assessment. I hereby make all assignments necessary to accomplish the foregoing. I shall further assist Company, at Company’s expense, to further evidence, record and perfect such assignments, and to perfect, obtain, maintain, enforce, and defend any rights specified to be so owned or assigned. I hereby irrevocably designate and appoint Company as my agent and attorney-in-fact, coupled with an interest and with full power of substitution, to act for and in my behalf to execute and file any document and to do all other lawfully permitted acts to further the purposes of the foregoing with the same legal force and effect as if executed by me. If anything created by me prior to my employment relates to Company’s actual or proposed business, I have listed it on Appendix B in a manner that does not violate any third party rights. Without limiting paragraph 1 or Company’s other rights and remedies, if, when acting within the scope of my employment or otherwise on behalf of Company, I use or (except pursuant to this paragraph 2) disclose my own or any third party’s confidential information or intellectual property (or if any Invention cannot be fully made, used, reproduced, distributed and otherwise exploited without using or violating the foregoing), Company will have and I hereby grant Company a perpetual, irrevocable, worldwide royalty-free, non-exclusive, sub licensable right and license to exploit and exercise all such confidential information and intellectual property rights.
3.    To the extent allowed by law, paragraph 2 includes all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred to as “moral rights,” “artist’s rights,” “droit moral,” or the like (collectively “Moral Rights”). To the extent I retain any such Moral Rights under applicable law, I hereby ratify and consent to any 

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action that may be taken with respect to such Moral Rights by or authorized by Company and agree not to assert any Moral Rights with respect thereto. I will confirm any such ratifications, consents and agreements from time to time as requested by Company.
4.    I agree that all Inventions and all other business, technical and financial information (including, without limitation, the identity of and information relating to customers or employees) I develop, learn or obtain during the term of my employment that relate to Company or the business or demonstrably anticipated business of Company or that are received by or for Company in confidence, constitute “Proprietary Information.” I will hold in confidence and not disclose or, except within the scope of my employment, use any Proprietary Information. However, I shall not be obligated under this paragraph with respect to information I can document is or becomes readily publicly available without restriction through no fault of mine. Upon termination of my employment, I will promptly return to Company all items containing or embodying Proprietary Information (including all copies), except that I may keep my personal copies of (i) my compensation records, (ii) materials distributed to shareholders generally and (iii) this Agreement. I also recognize and agree that I have no expectation of privacy with respect to Company’s telecommunications, networking or information processing systems (including, without limitation, stored computer files, email messages and voice messages) and that my activity and any files or messages on or using any of those systems may be monitored at any time without notice.
5.    Until one year after the term of my employment, I will not encourage or solicit any employee or consultant of Company to leave Company for any reason (except for the bona fide firing of Company personnel within the scope of my employment).
6.    I agree that during the term of my employment with Company (whether or not during business hours), I will not engage in any activity that is in any way competitive with the business or demonstrably anticipated business of Company, and I will not assist any other person or organization in competing or in preparing to compete with any business or demonstrably anticipated business of Company.
7.    I agree that this Agreement is not an employment contract for any particular term and that I have the right to resign and Company has the right to terminate my employment at will, at any time, for any or no reason, with or without cause. In addition, this Agreement does not purport to set forth all of the terms and conditions of my employment, and, as an employee of Company, I have obligations to Company which are not set forth in this Agreement. However, the terms of this Agreement govern over any inconsistent terms and can only be changed by a subsequent written agreement signed by the President of Company.
8.    I agree that my obligations under paragraphs 2, 3, 4 and 5 of this Agreement shall continue in effect after termination of my employment, regardless of the reason or reasons for termination, and whether such termination is voluntary or involuntary on my part, and that Company is entitled to communicate my obligations under this Agreement to any future employer or potential employer of mine. My obligations under paragraphs 2, 3 and 4 also shall be binding upon my heirs, executors, assigns, and administrators and shall inure to the benefit of Company, its subsidiaries, successors and assigns.

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9.    Any dispute in the meaning, effect or validity of this Agreement shall be resolved in accordance with the laws of the State of California without regard to the conflict of laws provisions thereof. I further agree that if one or more provisions of this Agreement are held to be illegal or unenforceable under applicable California law, such illegal or unenforceable portion(s) shall be limited or excluded from this Agreement to the minimum extent required so that this Agreement shall otherwise remain in full force and effect and enforceable in accordance with its terms. I also understand that any breach of this Agreement will cause irreparable harm to Company for which damages would not be an adequate remedy, and, therefore, Company will be entitled to injunctive relief with respect thereto in addition to any other remedies and without any requirement to post bond.
I HAVE READ THIS AGREEMENT CAREFULLY AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS WHICH IT IMPOSES UPON ME WITHOUT RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO ME TO INDUCE ME TO SIGN THIS AGREEMENT. I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY WITH THE UNDERSTANDING THAT THE COMPANY WILL RETAIN ONE COUNTERPART AND THE OTHER COUNTERPART WILL BE RETAINED BY ME.
	
			
	 
	, 2015
	Michael P. DeCesare

	 
	 
	 

	 
	 
	 

	 
	 
	Signature

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APPENDIX A
California Labor Code Section 2870 - Application of provision providing that employee shall assign or offer to assign rights in invention to employer.
		
	(i)
	Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either:

		
	(A)
	Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or

		
	(B)
	Result from any work performed by the employee for his employer.

		
	(ii)
	To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

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FORESCOUT TECHNOLOGIES, INC.
AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT
This Amendment (the “Amendment”) to the Amended and Restated Employment Agreement (the “Agreement”) by and between ForeScout Technologies, Inc., a Delaware corporation (the “Company”) and Michael P. DeCesare (the “Executive”) dated May 18, 2016, is entered into by and between the Company and Executive effective as of the date of the last signature below. 
WHEREAS, the Company and Executive previously entered into the Agreement; and
WHEREAS, the Company and Executive desire to amend certain provisions of the Agreement. 
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1.Termination Due to Death or Disability While Executing Employment Duties. In the event that Executive’s employment is terminated by the Company due to a Death/Disability Event (as defined below), then subject to Executive (or his legal custodian, if applicable, or the executor of his estate if Executive is deceased) signing and not revoking the Separation Agreement and Release (as defined in the Agreement) and the Separation Agreement and Release becoming effective and irrevocable within 60 days after the Date of Termination (as defined in the Agreement), 100% of the unvested portion of Executive’s Equity Awards (as defined in the Agreement) shall immediately accelerate and become fully exercisable or non‐forfeitable, and with respect to any performance objectives other than continued employment or other service to which any such Equity Award remained subject as of the Date of Termination, such performance objectives shall be deemed achieved at target.  Subject to Sections 5(b) through 5(h) of the Agreement, the amounts payable under the immediately preceding sentence, less applicable deductions and withholding, shall be paid out within 60 days following the Date of Termination; provided, however, that if the 60 day period begins in one calendar year and ends in a second calendar year, the amounts payable under the immediately preceding sentence shall be paid in the second calendar year.
2.Definition of Death/Disability Event. The term “Death/Disability Event” means (x) Executive becoming Disabled (as defined in the Agreement) or (y) Executive’s death provided that Executive becoming Disabled or deceased is a result of, or directly in connection with, Executive’s performance of his duties that are required to be performed by him as an employee of the Company; and provided further, for purposes of clarity and without limitation, that a Death/Disability Event shall not be deemed to occur in connection with Executive becoming Disabled or deceased due to any recreational or other personal activity in each case that is not required for the performance of his duties as an employee of the Company.  For example, Executive becoming Disabled as a result of injury due to an automobile accident while in direct transit to a business meeting in the performance of his required duties shall qualify as a Death/Disability Event, but Executive becoming Disabled as a result of injury occurring while skydiving shall not qualify as a Death/Disability Event.

3.Definition of Severance Amount. For purposes of clarity, the term “Severance Amount,” as used in Section 4(b)(iv) of the Agreement means the amounts payable under Section 4(b) of the Agreement; and, as used in Section 5(a)(iv) of the Agreement, means the amounts payable under Section 5(a) of the Agreement as a result of a termination of Executive’s employment by the Company without Cause (as defined in the Agreement) or by Executive for Good Reason (as defined in the Agreement).
4.Integration. This Amendment, together with the Agreement (to the extent not modified by this Amendment), constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements between the parties concerning such subject matter. This Amendment may not be altered, modified, or amended except by written instrument signed by the parties that specifically references this Section 4.
5.Enforceability. If any portion or provision of this Amendment or the Agreement (including, without limitation, any portion or provision of any section of this Amendment) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Amendment (or Agreement, as applicable), or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Amendment and the Agreement shall be valid and enforceable to the fullest extent permitted by law.
6.Governing Law. This is a California contract and shall be construed under and be governed in all respects by the laws of the State of California, without giving effect to the conflict of laws principles of such State. With respect to any disputes concerning federal law, such disputes shall be determined in accordance with the law as it would be interpreted and applied by the United States Court of Appeals for the Ninth Circuit.
7.Counterparts. This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be taken to be an original; but such counterparts shall together constitute one and the same document.

[Signature page follows]

2

Each party is signing this Amendment on the date set out opposite its signature.
	
			
	 
	 
	FORESCOUT TECHNOLOGIES, INC.

	 
	 
	 

	9/29/2017
	 
	/s/ Yehezkel Yeshurun

	Date
	 
	Yehezkel Yeshurun

	 
	 
	Chair of the Board

	 
	 
	 

	 
	 
	MICHAEL P. DECESARE

	 
	 
	 

	9/29/2017
	 
	/s/ Michael P. DeCesare

	Date
	 
	Michael P. DeCesare

	 
	 
	 

	 
	 
	 

	 
	 
	 

3

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