EX-10.3



 Exhibit 10.3 
 Summary of Perquisites and Associated Other Compensation Arrangements for Named Executive Officers 
 This Summary sets forth, as of August 1, 2013, perquisites and other personal benefits that MicroStrategy Incorporated (“MicroStrategy” and, collectively with its subsidiaries, the
“Company”) provides to its “named executive officers,” as defined in Item 402 of Regulation S-K. 
 On
January 31, 2011, MicroStrategy entered into an agreement with Aeromar Management Company, LLC, a Delaware limited liability company (“Aeromar”), of which Michael J. Saylor, MicroStrategy’s Chairman of the Board of Directors (the
“Board”) and Chief Executive Officer, is the sole member, effective October 11, 2010. Under the agreement, MicroStrategy is (i) providing to Aeromar use of approximately 150 square feet of office space within MicroStrategy’s
leased headquarters space at 1850 Towers Crescent Plaza, Tysons Corner, Virginia, (ii) providing to Aeromar various related services and arrangements, and (iii) providing to Mr. Saylor gross-up payments in respect of taxes that he may
incur as a result of the arrangement. The agreement does not require any rental or other payments from Aeromar or Mr. Saylor. MicroStrategy has filed a copy of this agreement as Exhibit 10.14 to its Annual Report on Form 10-K for the fiscal
year ended December 31, 2010, which was filed with the Securities and Exchange Commission on February 18, 2011. 
 For
each named executive officer who elects to be a member of a private club located near the Company’s headquarters that offers dining services and hosts business, professional, and social community events, the Company pays the monthly dues
associated with such membership. 
 The Company has a program pursuant to which it arranges for individual disability insurance
policies to be provided to eligible executives (including the named executive officers) as a supplement to the group disability insurance that is available to most Company employees and pays the premiums with respect to such supplemental policies.

 The Company has a program pursuant to which the Company pays the cost of annual healthcare screenings for eligible executives
(including the named executive officers). 
 The Company has adopted a fourth amended and restated aircraft use policy (the
“Aircraft Use Policy”) which, among other things, permits certain non-business use of (i) the Bombardier Global Express XRS aircraft owned by the Company (the “Global Express”), (ii) any aircraft in which the Company
has leased a fractional interest (the “Fractional Aircraft”) and which is managed by NetJets International, Inc. or any of its affiliates (collectively, “NetJets”), together with all other aircraft managed or provided by NetJets
to the extent that the Company uses such other aircraft in connection with the Company’s lease of the Fractional Aircraft (collectively, the “NetJets Aircraft”), and (iii) such other aircraft (A) that the Company may, from
time to time, lease or charter, including, without limitation, any aircraft subject to a fractional interest program in which the Company may participate by leasing a fractional interest, and (B) that has been designated by MicroStrategy to be
“Company Aircraft” for purposes of the Aircraft Use Policy (collectively with the Global Express and the NetJets Aircraft, “Company Aircraft”). Company Aircraft are available for non-business use only when such aircraft are not
otherwise being used by the Company exclusively for business use. The Aircraft Use Policy permits non-business use of Company Aircraft by the Chief Executive Officer, other officers or employees of the Company to the extent approved by the Chief
Executive Officer, and under certain circumstances, non-employee members of the Board. Any such personal use may result in imputed compensation to such persons. 
 Non-business use of Company Aircraft is subject to various limitations, including those described below. During each calendar year: 

 

	 	•	 	 the total number of flight hours used by the Company for non-business use of the NetJets Aircraft in such calendar year must be less than fifty percent
(50%) of the total number of flight hours of the NetJets Aircraft used by the Company for business use and non-business use during such calendar year; 



 

	 	•	 	 the total number of flight hours used by the Company for non-business use of the Global Express in such calendar year must be less than fifty percent
(50%) of the total number of flight hours of the Global Express used by the Company for business use and non-business use during such calendar year; and 



 

	 	•	 	 the total number of flight hours used by the Company for non-business use of all Company Aircraft in such calendar year may not exceed 200 flight
hours. 









 The Company has adopted a policy pursuant to which the Company makes available, from time to
time, certain designated vehicles that the Company owns or may acquire (“Designated Vehicles”) and related driving services for personal use by eligible Company personnel, to the extent the Designated Vehicle is not at such time being used
exclusively by the Company for business purposes. Eligible personnel include the Chief Executive Officer and any employees and members of the Board authorized by the Chief Executive Officer to use Designated Vehicles. Any such personal use may
result in imputed compensation to such persons. 
 The Company also pays for the services of one or more drivers for vehicles
other than Company-owned vehicles (such services, “Alternative Car Services”) for personal use by eligible Company personnel. Eligible personnel include the Chief Executive Officer and any employees and members of the Board authorized by
the Chief Executive Officer to use Alternative Car Services. Any such personal use may result in imputed compensation to such persons. The Company has established a policy that the aggregate compensation to all Company personnel as a result of use
of Alternative Car Services, excluding any associated tax gross-up payments, may not exceed $100,000 in any fiscal year. 
 The
Company has adopted a policy pursuant to which the Company makes available, from time to time, tickets to sporting, charity, dining, entertainment, or similar events as well as use of corporate suites, club memberships, or similar facilities that
the Company may acquire (“Corporate Development Programs”), for personal use by Company personnel to the extent a Corporate Development Program is not at such time being used exclusively by the Company for business purposes. Eligible
personnel include executive officers and other employees of the Company and members of the Board. Personal use of the Corporate Development Programs may result in imputed compensation to participating individuals for tax purposes. 

From time to time, the Board may hold meetings and other related activities in various locations for which the Company pays for specified
travel, lodging, food, beverage, entertainment, and related expenses on behalf of the participants and their guests. Participation in these activities may result in imputed compensation to Company participants for tax purposes. 

The Company sponsors an annual trip and related events for sales and services personnel who have met specified performance criteria as
well as certain named executive officers and their guests (“President’s Club Events”) and pays for specified travel, lodging, food, beverage, entertainment, and related expenses on behalf of the participants. Participation in
President’s Club Events may result in imputed compensation to Company participants for tax purposes. The Company has established a policy that the compensation imputed to Mr. Saylor as a result of his participation in President’s Club
Events, excluding any associated tax gross-up payments, may not exceed $30,000 in any fiscal year. 
 In addition, the Company
may hold, host, or otherwise arrange parties, outings, or other similar entertainment functions at which Mr. Saylor and Sanju K. Bansal, MicroStrategy’s Vice Chairman of the Board and Executive Vice President, are permitted to entertain
personal guests (“Entertainment Events”). The Company has established a policy that the aggregate incremental cost to the Company of Entertainment Events (to the extent that they are not Corporate Development Programs) attributable to each
of Messrs. Saylor and Bansal, including any associated tax gross-up payments, may not exceed $75,000 in any fiscal year (the “Entertainment Events Cap”). 
 The Company may also request that Company personnel participate in conferences, symposia, and other similar events or activities relating to the Company’s business for which the Company’s
payment of the expenses of Company participants and Company participants’ guests may result in imputed compensation to Company participants (“Company-Sponsored Activities”). 

From time to time, Company personnel are offered meals prepared by the Company’s in-house catering department (“Company
Meals”). To the extent that any Company Meals are considered non-business expenses, they may result in imputed compensation to the applicable individuals. In addition, the Company permits Mr. Saylor to make personal use of the
Company’s in-house catering resources (such use, other than for Company Meals, “Non-Business Catering Use”). The Company has established a policy that the compensation imputed to Mr. Saylor as a result of Non-Business Catering
Use, excluding any associated tax gross-up payments, may not exceed $25,000 per year. 

  
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 The Company pays the reasonable expenses of Bob Watts, MicroStrategy’s Senior Executive
Vice President, Worldwide Professional Services, for travel between his home in Kentucky and the Company’s headquarters during 2013. To the extent that any of these expenses constitute commuting expenses for purposes of the Internal Revenue
Code, they may result in imputed compensation to Mr. Watts. 
 The Company has paid the costs of security services rendered
to Mr. Saylor by a security firm in December 2012 and January 2013, and the Company will pay a tax gross-up with respect to such costs as described below. 
 The Company has paid the costs of tax advisory services rendered to Mr. Saylor by a tax advisory firm in connection with Mr. Saylor’s filing of foreign entity tax forms which are required
in connection with his status as a controlling stockholder of MicroStrategy, and the Company will pay a tax gross-up with respect to such costs as described below. 
 To the extent that any of the arrangements described above (except payment of Mr. Watts’s reasonable expenses for travel between his home and the Company’s headquarters during the second half of
2013) result in imputed compensation to any of the named executive officers, the Company pays to (or withholds and pays to the appropriate taxing authority on behalf of) such individual a “tax gross-up” approximating his (i) federal
and state income and payroll taxes on the taxable income in connection with such arrangements plus (ii) federal and state income and payroll taxes on the taxes that the individual may incur as a result of the payment of taxes by the Company
with respect to the imputed compensation, subject to the Entertainment Events Cap as applicable. 

  
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