Document:

Exhibit 10.9

 

FORWARD PURCHASE AGREEMENT

 

This Forward Purchase Agreement (this “Agreement”)
is entered into as of [·], 2021, by and between Avista Public Acquisition Corp. II, a
Cayman Islands exempted company (the “Company”) and Avista Acquisition LP II, a Cayman Islands exempted limited partnership
(the “Purchaser”).

 

WHEREAS, the Company was incorporated for the purpose
of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more
businesses (a “Business Combination”);

 

WHEREAS, the Company has filed with the U.S. Securities
and Exchange Commission (the “SEC”) a registration statement on Form S-1 (the “Registration Statement”)
for its initial public offering (“IPO”) of units (the “Public Units”) at a price of $10.00 per Public
Unit, each consisting of one Class A ordinary share of the Company, par value $0.0001 per share (the “Class A Share(s)”),
and one-third of one redeemable warrant, where each whole redeemable warrant is exercisable to purchase one Class A Share at an exercise
price of $11.50 per share (the “Warrant(s)”). Only whole Warrants are exercisable. A holder of Warrants will not be
able to exercise any fraction of a Warrant. The Company shall not issue fractional Warrants other than as part of the Public Units. If,
upon the detachment of the Warrants from the Public Units or otherwise, a holder of Warrants would be entitled to receive a fractional
Warrant, the Company shall round down to the nearest whole number the number of Warrants to be issued to such holder;

 

WHEREAS, following the closing of the IPO (the
 “IPO Closing”), the Company will seek to identify and complete a Business Combination; and

 

WHEREAS, the parties wish to enter into this Agreement,
pursuant to which immediately prior to the closing of the Company’s initial Business Combination (the “Business Combination
Closing”), the Company shall issue and sell, and the Purchaser shall purchase, on a private placement basis, 10,000,000 Class
A Shares (the “Forward Purchase Shares”) and 3,333,333 Warrants (the “Forward Purchase Warrants”
and together with the Forward Purchase Shares, the “Forward Purchase Securities”) on the terms and conditions set forth
herein.

 

NOW, THEREFORE, in consideration of the premises,
representations, warranties and the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt,
sufficiency and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

1. Sale and Purchase.

 

(a) Forward Purchase Securities.

 

(i) The Company shall issue and sell to the Purchaser,
and the Purchaser shall purchase from the Company, the Forward Purchase Shares and the Forward Purchase Warrants for an aggregate purchase
price of $100,000,000 (the “FPS Purchase Price”).

 

(ii) Each Forward Purchase Warrant will have the
same terms as each Warrant sold as part of the Public Units in the IPO (“Public Warrants”), and will be subject to
the terms and conditions of the Warrant Agreement to be entered into between the Company and Continental Stock Transfer & Trust Company,
as Warrant Agent, in connection with the IPO (the “Warrant Agreement”). Each Forward Purchase Warrant will entitle
the holder thereof to purchase one Class A Share at a price of $11.50 per share, subject to adjustment as described in the Warrant Agreement,
and only whole Forward Purchase Warrants will be exercisable. The Forward Purchase Warrants will become exercisable 30 days after the
Business Combination Closing and will expire five years after the Business Combination Closing or earlier upon redemption or the liquidation
of the Company, as described in the Warrant Agreement.

 

     

     

    

 

(iii) The Company shall require the Purchaser to
purchase the Forward Purchase Securities by delivering notice to the Purchaser, at least ten (10) Business Days before the funding of
the FPS Purchase Price to the Escrow Account (defined below), specifying the anticipated date of the Business Combination Closing and
instructions for wiring the FPS Purchase Price to an account of a third-party escrow agent (the “Escrow Account”) which
shall be the Company’s transfer agent (the “Escrow Agent”) pursuant to an escrow agreement between the Company
and the Escrow Agent (the “Escrow Agreement”). At least two (2) Business Days before the anticipated date of the Business
Combination Closing specified in such notice, the Purchaser shall deliver the FPS Purchase Price in cash via wire transfer to the account
specified in such notice, to be held in escrow pending the Business Combination Closing. If the Business Combination Closing does not
occur within thirty (30) days after the Purchaser delivers the FPS Purchase Price to the Escrow Agent, the Escrow Agreement will provide
that the Escrow Agent shall automatically return to the Purchaser the FPS Purchase Price, provided that the return of the FPS Purchase
Price placed in escrow shall not terminate the Agreement or otherwise relieve either party of any of its obligations hereunder. For the
purposes of this Agreement, “Business Day” means any day, other than a Saturday or a Sunday, that is neither a legal
holiday nor a day on which banking institutions are generally authorized or required by law or regulation to close in the City of New
York, New York.

 

(iv) The closing of the sale of the Forward Purchase
Securities (the “FPS Closing”) shall be held on the same date and immediately prior to the Business Combination Closing
(such date being referred to as the “Closing Date”). At the FPS Closing, the Company will issue to the Purchaser the
Forward Purchase Securities, each registered in the name of the Purchaser, against (and concurrently with) release of the FPS Purchase
Price by the Escrow Agent to the Company.

 

(b) Delivery of Forward Purchase Securities.

 

(i) The Company shall register the Purchaser as
the owner of the Forward Purchase Securities purchased by the Purchaser hereunder (individually or collectively, the “Securities”)
in the register of members of the Company and with the Company’s transfer agent by book entry on or promptly after (but in no event
more than two (2) Business Days after) the date of the FPS Closing.

 

(ii) Each register and book entry for the Securities
shall contain a notation, and each certificate (if any) evidencing the Securities shall be stamped or otherwise imprinted with a legend,
in substantially the following form:

 

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND MAY NOT BE TRANSFERRED
IN VIOLATION OF SUCH ACT AND LAWS.”

 

(c) Legend Removal. If the Securities are
eligible to be sold without restriction under, and without the Company being in compliance with the current public information requirements
of, Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”), then at the Purchaser’s request,
the Company will cause the Company’s transfer agent to remove the legend set forth in Section 1(b)(ii). In connection therewith,
if required by the Company’s transfer agent, the Company will promptly cause an opinion of counsel to be delivered to and maintained
with its transfer agent, together with any other authorizations, certificates and directions required by the transfer agent that authorize
and direct the transfer agent to transfer such Securities without any such legend; provided, however, that the Company will
not be required to deliver any such opinion, authorization or certificate or direction if it reasonably believes that removal of the legend
could result in or facilitate transfers of the Securities in violation of applicable law.

 

(d) Registration Rights. The Purchaser shall
have registration rights with respect to the Forward Purchase Securities as set forth on Exhibit A (the “Registration
Rights”).

 

     

     

    

 

2. Representations and Warranties of the Purchaser.
The Purchaser represents and warrants to the Company as follows, as of the date hereof:

 

(a) Organization and Power. The Purchaser
is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its formation and has all requisite power
and authority to carry on its business as presently conducted and as proposed to be conducted.

 

(b) Authorization. The Purchaser has full
power and authority to enter into this Agreement. This Agreement, when executed and delivered by the Purchaser, will constitute the valid
and legally binding obligation of the Purchaser, enforceable in accordance with its terms, except (a) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance and any other laws of general application affecting enforcement of creditors’
rights generally, (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies,
or (c) to the extent the indemnification provisions contained in the Registration Rights may be limited by applicable federal or state
securities laws.

 

(c) Governmental Consents and Filings. No
consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state
or local governmental authority is required on the part of the Purchaser in connection with the consummation of the transactions contemplated
by this Agreement.

 

(d) Compliance with Other Instruments. The
execution, delivery and performance by the Purchaser of this Agreement and the consummation by the Purchaser of the transactions contemplated
by this Agreement will not result in any violation or default (i) of any provisions of its organizational documents, (ii) of any instrument,
judgment, order, writ or decree to which it is a party or by which it is bound, (iii) under any note, indenture or mortgage to which it
is a party or by which it is bound, (iv) under any lease, agreement, contract or purchase order to which it is a party or by which it
is bound or (v) of any provision of federal or state statute, rule or regulation applicable to the Purchaser, in each case (other than
clause (i)), which would have a material adverse effect on the Purchaser or its ability to consummate the transactions contemplated by
this Agreement.

 

(e) Purchase Entirely for Own Account. This
Agreement is made with the Purchaser in reliance upon the Purchaser’s representation to the Company, which by the Purchaser’s
execution of this Agreement, the Purchaser hereby confirms, that the Forward Purchase Securities to be acquired by the Purchaser will
be acquired for investment for the Purchaser’s own account, not as a nominee or agent, and not with a view to the resale or distribution
of any part thereof, and that the Purchaser has no present intention of selling, granting any participation in, or otherwise distributing
the same in violation of law. By executing this Agreement, the Purchaser further represents that the Purchaser does not presently have
any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any
third Person, with respect to any of the Forward Purchase Securities. For purposes of this Agreement, “Person” means
an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any
other entity or any government or any department or agency thereof.

 

(f) Disclosure of Information. The Purchaser
has had an opportunity to discuss the Company’s business, management, financial affairs and the terms and conditions of the offering
of the Forward Purchase Securities, as well as the terms of the Company’s proposed IPO, with the Company’s management.

 

(g) Restricted Securities. The Purchaser
understands that the offer and sale of the Forward Purchase Securities to the Purchaser has not been, and will not be, registered
under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends
upon, among other things, the bona fide nature of the investment intent and the accuracy of the Purchaser’s representations as
expressed herein. The Purchaser understands that the Forward Purchase Securities are “restricted securities” under
applicable U.S. federal and state securities laws and that, pursuant to these laws, the Purchaser must hold the Forward Purchase
Securities indefinitely unless they are registered with the SEC and qualified by state authorities, or an exemption from such
registration and qualification requirements is available. The Purchaser acknowledges that the Company has no obligation to register
or qualify the Forward Purchase Securities, or any Class A Shares into which the Forward Purchase Securities may be converted into
or exercised for, for resale, except for the Registration Rights. The Purchaser further acknowledges that if an exemption from
registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time
and manner of sale, the holding period for the Forward Purchase Securities, and on requirements relating to the Company which are
outside of the Purchaser’s control, and which the Company is under no obligation and may not be able to satisfy. The Purchaser
acknowledges that the Company filed the Registration Statement for its proposed IPO with the SEC for review. The Purchaser
understands that the offering of the Forward Purchase Securities is not, and is not intended to be, part of the IPO, and that the
Purchaser will not be able to rely on the protection of Section 11 of the Securities Act with respect to such Forward Purchase
Securities.

 

     

     

    

 

(h) No Public Market. The Purchaser understands
that no public market now exists for the Securities, and that the Company has made no assurances that a public market will ever exist
for the Securities.

 

(i) High Degree of Risk. The Purchaser understands
that its agreement to purchase the Securities involves a high degree of risk which could cause the Purchaser to lose all or part of its
investment.

 

(j) Accredited Investor. The Purchaser is
an “accredited investor” as defined in Rule 501(a) of Regulation D promulgated under the Securities Act.

 

(k) No General Solicitation. Neither the Purchaser,
nor any of its officers, directors, employees, agents, stockholders or partners has either directly or indirectly, including, through
a broker or finder (i) to its knowledge, engaged in any general solicitation, or (ii) published any advertisement in connection with the
offer and sale of the Forward Purchase Securities.

 

(l) Non-Public Information. The Purchaser
acknowledges its obligations under applicable securities laws with respect to the treatment of material non-public information relating
to the Company.

 

(m) Adequacy of Financing. The Purchaser has
available to it sufficient funds to satisfy its obligations under this Agreement.

 

(n) Affiliation of Certain FINRA Members.
The Purchaser is neither a person associated nor affiliated with Credit Suisse Securities (USA) LLC or, to its actual knowledge, any other
member of the Financial Industry Regulatory Authority (“FINRA”) that is participating in the IPO.

 

(o) No Other Representations and Warranties; Non-Reliance.
Except for the specific representations and warranties contained in this Section 2 and in any certificate or agreement delivered
pursuant hereto, none of the Purchaser nor any person acting on behalf of the Purchaser nor any of the Purchaser’s affiliates (the
 “Purchaser Parties”) has made, makes or shall be deemed to make any other express or implied representation or warranty
with respect to the Purchaser and this offering, and the Purchaser Parties disclaim any such representation or warranty. Except for the
specific representations and warranties expressly made by the Company in Section 3 of this Agreement and in any certificate or
agreement delivered pursuant hereto, the Purchaser Parties specifically disclaim that they are relying upon any other representations
or warranties that may have been made by the Company, any person on behalf of the Company or any of the Company’s affiliates (collectively,
the “Company Parties”).

 

3. Representations and Warranties of
the Company. The Company represents and warrants to the Purchaser as follows:

 

(a) Incorporation and Corporate Power. The
Company is an exempted company duly incorporated and validly existing and in good standing as an exempted company under the laws of the
Cayman Islands and has all requisite corporate power and authority to carry on its business as presently conducted and as proposed to
be conducted. The Company has no subsidiaries.

 

(b) Capitalization. The authorized share capital
of the Company consists, as of the date hereof, of:

 

(i) 500,000,000 Class A Shares, par value $0.0001
per share, none of which are issued and outstanding.

 

     

     

    

 

(ii) 50,000,000 Class B ordinary shares of the
Company, par value $0.0001 per share (“Class B Shares”), 5,750,000 of which are issued and outstanding and held by
the Purchaser and certain of the Company’s directors (together with the Purchaser, the “Initial Shareholders”).
All of the issued and outstanding Class B Shares have been duly authorized, are fully paid and nonassessable and were issued in compliance
with all applicable federal and state securities laws.

 

(iii) 5,000,000 preference shares, par value $0.0001
per share, none of which are issued and outstanding.

 

(c) Authorization. All corporate action required
to be taken by the Company’s Board of Directors and shareholders in order to authorize the Company to enter into this Agreement,
and to issue the Forward Purchase Securities at the FPS Closing, and the securities issuable upon conversion or exercise of the Forward
Purchase Securities, has been taken or will be taken prior to the FPS Closing, as applicable. All action on the part of the shareholders,
directors and officers of the Company necessary for the execution and delivery of this Agreement, the performance of all obligations of
the Company under this Agreement to be performed as of the FPS Closing, and the issuance and delivery of the Forward Purchase Securities
and the securities issuable upon conversion or exercise of the Forward Purchase Securities has been taken or will be taken prior to the
FPS Closing. This Agreement, when executed and delivered by the Company, shall constitute the valid and legally binding obligation of
the Company, enforceable against the Company in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors’
rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable
remedies, or (iii) to the extent the indemnification provisions contained in the Registration Rights may be limited by applicable federal
or state securities laws.

 

(d) Valid Issuance of Securities.

 

(i) The Forward Purchase Securities, when issued,
sold and delivered in accordance with the terms and for the consideration set forth in this Agreement and registered in the register of
members of the Company, and the securities issuable upon conversion or exercise of the Forward Purchase Securities, when issued in accordance
with the terms of the Forward Purchase Securities and this Agreement, and registered in the register of members of the Company, will be
validly issued, fully paid and nonassessable and free of all preemptive or similar rights, liens, encumbrances and charges with respect
to the issue thereof and restrictions on transfer other than restrictions on transfer specified under this Agreement, applicable state
and federal securities laws and liens or encumbrances created by or imposed by the Purchaser. Assuming the accuracy of the representations
of the Purchaser in this Agreement and subject to the filings described in Section 3(e) below, the Forward Purchase Securities
and the securities issuable upon conversion of the Forward Purchase Securities will be issued in compliance with all applicable federal
and state securities laws.

 

(ii) No “bad actor” disqualifying event
described in Rule 506(d)(1)(i)-(viii) of the Securities Act (a “Disqualification Event”) is applicable to the Company
or, to the Company’s knowledge, any Company Covered Person (as defined below), except for a Disqualification Event as to which Rule
506(d)(2)(ii—iv) or (d)(3), is applicable. “Company Covered Person” means, with respect to the Company as an
 “issuer” for purposes of Rule 506 promulgated under the Securities Act, any Person listed in the first paragraph of Rule 506(d)(1).

 

(e) Governmental Consents and Filings. Assuming
the accuracy of the representations and warranties made by the Purchaser in this Agreement, no consent, approval, order or authorization
of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority is required
on the part of the Company in connection with the consummation of the transactions contemplated by this Agreement, except for filings
pursuant to Regulation D of the Securities Act, and applicable state securities laws.

 

(f) Compliance with Other Instruments.
The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement
will not result in any violation or default (i) of any provisions of the Company’s memorandum and articles of association, as
they may be amended from time to time (the “Charter”) or its other governing documents, (ii) of any instrument,
judgment, order, writ or decree to which it is a party or by which it is bound, (iii) under any note, indenture or mortgage to which
it is a party or by which it is bound, (iv) under any lease, agreement, contract or purchase order to which it is a party or by
which it is bound or (v) of any provision of federal or state statute, rule or regulation applicable to the Company, in each case
(other than clause (i)) which would have a material adverse effect on the Company or its ability to consummate the transactions
contemplated by this Agreement.

 

     

     

    

 

(g) Operations. As of the date hereof, the
Company has not conducted, and prior to the IPO Closing the Company will not conduct, any operations other than organizational activities
and activities in connection with offerings of the Securities and securities in the IPO.

 

(h) Foreign Corrupt Practices. Neither the
Company, nor any director, officer, agent, employee or other Person acting on behalf of the Company has, in the course of its actions
for, or on behalf of, the Company (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses
relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee
from corporate funds; (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended;
or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government
official or employee.

 

(i) Compliance with Anti-Money Laundering Laws.
The operations of the Company are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting
requirements and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations, including, but not limited to, those
of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the USA Patriot Act of 2001 and the applicable money laundering
statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines,
issued, administered or enforced by any governmental agency (collectively, the “Anti-Money Laundering Laws”), and no
action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company with
respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

 

(j) Absence of Litigation. There is no action,
suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body
pending or, to the knowledge of the Company, threatened against or affecting the Company or any of the Company’s officers or directors,
whether of a civil or criminal nature or otherwise, in their capacities as such.

 

(k) No General Solicitation. Neither the Company,
nor any of its officers, directors, employees, agents or shareholders has either directly or indirectly, including, through a broker or
finder (i) engaged in any general solicitation, or (ii) published any advertisement in connection with the offer and sale of the Securities.

 

(l) No Other Representations and Warranties; Non-Reliance.
Except for the specific representations and warranties contained in this Section 3 and in any certificate or agreement delivered
pursuant hereto, none of the Company Parties has made, makes or shall be deemed to make any other express or implied representation or
warranty with respect to the Company, this offering, the proposed IPO or a potential Business Combination, and the Company Parties disclaim
any such representation or warranty. Except for the specific representations and warranties expressly made by the Purchaser in Section
2 of this Agreement and in any certificate or agreement delivered pursuant hereto, the Company Parties specifically disclaim that
they are relying upon any other representations or warranties that may have been made by the Purchaser Parties.

 

4. Additional Agreements, Acknowledgements and
Waivers of the Purchaser.

 

(a) Trust Account.

 

(i) The Purchaser hereby acknowledges that it is
aware that the Company will establish a trust account (the “Trust Account”) for the benefit of its public shareholders
upon the IPO Closing. The Purchaser, for itself and its affiliates, hereby agrees that it has no right, title, interest or claim of any
kind in or to any monies held in the Trust Account, or any other asset of the Company as a result of any liquidation of the Company, except
for redemption and liquidation rights, if any, the Purchaser may have in respect of any Class A Shares held by it.

 

     

     

    

 

(ii) The Purchaser hereby agrees that it shall
have no right of set-off or any right, title, interest or claim of any kind (“Claim”) to, or to any monies in, the
Trust Account, and hereby irrevocably waives any Claim to, or to any monies in, the Trust Account that it may have now or in the future,
except for redemption and liquidation rights, if any, the Purchaser may have in respect of any Class A Shares held by it. In the event
the Purchaser has any Claim against the Company under this Agreement, the Purchaser shall pursue such Claim solely against the Company
and its assets outside the Trust Account and not against the property or any monies in the Trust Account, except for redemption and liquidation
rights, if any, the Purchaser may have in respect of any Class A Shares held by it.

 

(b) No Short Sales. The Purchaser hereby agrees
that neither it, nor any person or entity acting on its behalf or pursuant to any understanding with it, will engage in any Short Sales
with respect to securities of the Company prior to the Business Combination Closing. For purposes of this Section 5, “Short
Sales” shall include, without limitation, all “short sales” as defined in Rule 200 promulgated under Regulation
SHO under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and all types of direct and indirect
stock pledges (other than pledges in the ordinary course of business as part of prime brokerage arrangements), forward sale contracts,
options, puts, calls, swaps and similar arrangements (including on a total return basis), and sales and other transactions through non-U.S.
broker dealers or foreign regulated brokers.

 

(c) Voting. The Purchaser hereby agrees that
if the Company seeks shareholder approval of a proposed Business Combination, then in connection with such proposed Business Combination,
the Purchaser shall vote any Class A Shares owned by it in favor of any proposed Business Combination. If the Purchaser fails to vote
any Class A Shares it is required to vote hereunder in favor of a Proposed Business Combination, the Purchaser hereby grants hereunder
to the Company and any representative designated by the Company without further action by the Purchaser a limited irrevocable power of
attorney to effect such vote on behalf of the Purchaser, which power of attorney shall be deemed to be coupled with an interest.

 

5. QEF Election Information. The Company
shall use commercially reasonable efforts to determine whether, in any year, the Company or any subsidiary of the Company is deemed to
be a “passive foreign investment company” (a “PFIC”) within the meaning of U.S. Internal Revenue Code of
1986, as amended, and the regulations promulgated thereunder (collectively, the “Code”). If the Company determines
that the Company or any subsidiary of the Company is a PFIC in any year, for the year of determination and for each year thereafter during
which the Purchaser holds an equity interest in the Company, including Warrants, the Company or its subsidiary shall use commercially
reasonable efforts to (i) make available to the Purchaser the information that may be required to make or maintain a “qualified
electing fund” election under the Code with respect to the Company and (ii) furnish the information required to be reported under
Section 1298(f) of the Code.

 

6. Additional Agreements of the Company. 

 

(a) No Material Non-Public Information. The
Company agrees that no information provided to the Purchaser in connection with this Agreement will, upon the IPO Closing, constitute
material non-public information of the Company.

 

(b) Nasdaq Listing. The Company will use commercially
reasonable efforts to effect and maintain the listing of the Class A Shares on the Nasdaq Capital Market (or another national securities
exchange).

 

(c) No Amendments to the Articles. The amended
and restated memorandum and articles of association of the Company will be in substantially the same form of Exhibit B hereto and will
not be amended in any material respect prior to the IPO Closing without the Purchaser’s prior written consent.

 

     

     

    

 

 

7. FPS Closing Conditions.

 

(a) The obligation of the Purchaser to purchase the
Forward Purchase Securities at the FPS Closing under this Agreement shall be subject to the fulfillment, at or prior to the FPS Closing
of each of the following conditions, any of which, to the extent permitted by applicable laws, may be waived by the Purchaser:

 

(i) The Business Combination shall be completed
substantially concurrent with, and immediately following, the purchase of Forward Purchase Securities;

 

(ii) The Company shall have delivered to such Purchaser
a certificate evidencing the Company’s good standing as a Cayman Islands exempted company as of a date within ten (10) Business
Days of the FPS Closing;

 

(iii) The representations and warranties of the
Company set forth in Section 3 of this Agreement shall have been true and correct as of the date hereof and shall be true and correct
as of the FPS Closing, as applicable, with the same effect as though such representations and warranties had been made on and as of such
date (other than any such representation or warranty that is made by its terms as of a specified date, which shall be true and correct
as of such specified date), except where the failure to be so true and correct would not have a material adverse effect on the Company
or its ability to consummate the transactions contemplated by this Agreement;

 

(iv) The Company shall have performed, satisfied
and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Company at or prior to the FPS Closing; and

 

(v) No order, writ, judgment, injunction, decree,
determination, or award shall have been entered by or with any governmental, regulatory, or administrative authority or any court, tribunal,
or judicial, or arbitral body, and no other legal restraint or prohibition shall be in effect, preventing the purchase by the Purchaser
of the Securities.

 

(b) The obligation of the Company to sell the Forward
Purchase Securities at the FPS Closing under this Agreement shall be subject to the fulfillment, at or prior to the FPS Closing of each
of the following conditions, any of which, to the extent permitted by applicable laws, may be waived by the Company:

 

(i) The Business Combination shall be completed
substantially concurrent with, and immediately following, the purchase of Forward Purchase Securities;

 

(ii) The representations and warranties of the
Purchaser set forth in Section 2 of this Agreement shall have been true and correct as of the date hereof and shall be true and
correct as of the FPS Closing, as applicable, with the same effect as though such representations and warranties had been made on and
as of such date (other than any such representation or warranty that is made by its terms as of a specified date, which shall be true
and correct as of such specified date), except where the failure to be so true and correct would not have a material adverse effect on
the Purchaser or its ability to consummate the transactions contemplated by this Agreement;

 

(iii) The Purchaser shall have performed, satisfied
and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Purchaser at or prior to the FPS Closing; and

 

(iv) No order, writ, judgment, injunction, decree,
determination, or award shall have been entered by or with any governmental, regulatory, or administrative authority or any court, tribunal,
or judicial, or arbitral body, and no other legal restraint or prohibition shall be in effect, preventing the purchase by the Purchaser
of the Securities.

 

8. Termination. This Agreement may be terminated
at any time prior to the FPS Closing:

 

(a) by mutual written consent of the Company and
the Purchaser; or

 

(b) automatically

 

(i) if the IPO is not consummated on or prior to
twenty-four (24) months from the date of this Agreement; or

 

(ii) if the Business Combination is not completed
within eighteen (18) months from the IPO Closing, or such later date as may be approved by the Company’s shareholders.

 

     

     

    

 

In the event of any termination of this Agreement
pursuant to this Section 8, the FPS Purchase Price (and interest thereon, if any), if previously paid, and all Purchaser’s
funds paid in connection herewith shall be promptly returned to the Purchaser, and thereafter this Agreement shall forthwith become null
and void and have no effect, without any liability on the part of the Purchaser or the Company and their respective directors, officers,
employees, partners, managers, members, or shareholders and all rights and obligations of each party shall cease; provided, however,
that nothing contained in this Section 8 shall relieve either party from liabilities or damages arising out of any fraud or willful
breach by such party of any of its representations, warranties, covenants or agreements contained in this Agreement.

 

9. General Provisions.

 

(a) Notices. All notices and other communications
given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt,
or (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic mail or facsimile (if any) during normal business
hours of the recipient, and if not sent during normal business hours, then on the recipient’s next Business Day, (c) five (5) Business
Days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) Business Day after
deposit with a nationally recognized overnight courier, freight prepaid, specifying next Business Day delivery, with written verification
of receipt. All communications sent to the Company shall be sent to:

 

Avista Public Acquisition Corp. II

65 East 55th Street, 18th Floor

New York, New York 10022

Attn: Benjamin Silbert, General Counsel

email: Silbert@avistacap.com

 

with a copy to the Company’s counsel at:

 

	Weil, Gotshal & Manges LLP

                                                              767 Fifth Avenue

                                                              New York, New York 10153

	Attn:	Alexander D. Lynch, Esq.

                                                                                Faiza N. Rahman, Esq.

	email:	Alex.Lynch@weil.com

                                                                                Faiza.Rahman@weil.com

	fax:	(212) 310-8007

 

All communications to the Purchaser shall be sent to the Purchaser’s
address as set forth on the signature page hereof, or to such e-mail address, facsimile number (if any) or address as subsequently modified
by written notice given in accordance with this Section 9(a).

 

(b) No Finder’s Fees. Other than
fees payable to Credit Suisse Securities (USA) LLC, which shall be the responsibility of the Company, each party represents that it
neither is nor will be obligated for any finder’s fee or commission in connection with this transaction. The Purchaser agrees
to indemnify and to hold harmless the Company from any liability for any commission or compensation in the nature of a
finder’s or broker’s fee arising out of this transaction (and the costs and expenses of defending against such liability
or asserted liability) for which the Purchaser or any of its officers, employees or representatives is responsible. The Company
agrees to indemnify and hold harmless the Purchaser from any liability for any commission or compensation in the nature of a
finder’s or broker’s fee arising out of this transaction (and the costs and expenses of defending against such liability
or asserted liability) for which the Company or any of its officers, employees or representatives is responsible.

 

     

     

    

 

(c) Survival of Representations and Warranties.
All of the representations and warranties contained herein shall survive the FPS Closing.

 

(d) Entire Agreement. This Agreement, together
with any documents, instruments and writings that are delivered pursuant hereto or referenced herein, constitutes the entire agreement
and understanding of the parties hereto in respect of its subject matter and supersedes all prior understandings, agreements or representations
by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter hereof or the transactions
contemplated hereby.

 

(e) Successors. All of the terms, agreements,
covenants, representations, warranties and conditions of this Agreement are binding upon, and inure to the benefit of and are enforceable
by, the parties hereto and their respective successors. Nothing in this Agreement, express or implied, is intended to confer upon any
party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations or liabilities under
or by reason of this Agreement, except as expressly provided in this Agreement.

 

(f) Assignments. Except as otherwise specifically
provided herein, no party hereto may assign either this Agreement or any of its rights, interests, or obligations hereunder without the
prior written approval of the other parties except that the Purchaser may assign its rights, interests or obligations hereunder to any
of its affiliates.

 

(g) Counterparts. This Agreement may be executed
in two or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument.

 

(h) Headings. The section headings contained
in this Agreement are inserted for convenience only and will not affect in any way the meaning or interpretation of this Agreement.

 

(i) Governing Law. This Agreement, the entire
relationship of the parties hereto, and any dispute between the parties (whether grounded in contract, tort, statute, law or equity) shall
be governed by, construed in accordance with, and interpreted pursuant to the laws of the State of New York, without giving effect to
its choice of laws principles.

 

(j) Jurisdiction. The parties (i) hereby irrevocably
and unconditionally submit to the jurisdiction of the state courts of New York and to the jurisdiction of the United States District Court
for the Southern District of New York for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement,
(b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in state courts of New
York or the United States District Court for the Southern District of New York, and (c) hereby waive, and agree not to assert, by way
of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction
of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is
brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter
hereof may not be enforced in or by such court.

 

(k) Waiver of Jury Trial. The parties hereto
hereby waive any right to a jury trial in connection with any litigation pursuant to this Agreement and the transactions contemplated
hereby.

 

(l) Amendments. This Agreement may not be
amended, modified or waived as to any particular provision, except with the prior written consent of the Company and the Purchaser, except
for an amendment, modification or waiver that (i) modifies the amount or price of the Forward Purchase Securities to be sold hereunder,
or (ii) inserts or modifies any material economic or non-economic provision of this Agreement applicable to the Purchaser, which shall
in each case also require the written consent of the Purchaser.

 

     

     

    

 

(m) Severability. The provisions of this Agreement
will be deemed severable and the invalidity or unenforceability of any provision will not affect the validity or enforceability of the
other provisions hereof; provided that if any provision of this Agreement, as applied to any party hereto or to any circumstance,
is adjudged by a governmental authority, arbitrator, or mediator not to be enforceable in accordance with its terms, the parties hereto
agree that the governmental authority, arbitrator, or mediator making such determination will have the power to modify the provision in
a manner consistent with its objectives such that it is enforceable, and/or to delete specific words or phrases, and in its reduced form,
such provision will then be enforceable and will be enforced.

 

(n) Expenses. Each of the Company and the
Purchaser will bear its own costs and expenses incurred in connection with the preparation, execution and performance of this Agreement
and the consummation of the transactions contemplated hereby, including all fees and expenses of agents, representatives, financial advisors,
legal counsel and accountants. The Company shall be responsible for the fees of its transfer agent, stamp taxes and all of The Depository
Trust Company’s fees associated with the issuance of the Forward Purchase Securities and the securities issuable upon conversion
or exercise of the Forward Purchase Securities.

 

(o) Construction. The parties hereto have
participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation arises,
this Agreement will be construed as if drafted jointly by the parties hereto and no presumption or burden of proof will arise favoring
or disfavoring any party hereto because of the authorship of any provision of this Agreement. Any reference to any federal, state, local
or foreign law will be deemed also to refer to law as amended and all rules and regulations promulgated thereunder, unless the context
requires otherwise. The words “include,” “includes” and “including” will be deemed
to be followed by “without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to include
any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the context otherwise
requires. The words “this Agreement,” “herein,” “hereof,” “hereby,”
 “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular subdivision unless
expressly so limited. The parties hereto intend that each representation, warranty and covenant contained herein will have independent
significance. If any party hereto has breached any representation, warranty or covenant contained herein in any respect, the fact that
there exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity)
which such party hereto has not breached will not detract from or mitigate the fact that such party hereto is in breach of the first representation,
warranty or covenant.

 

(p) Waiver. No waiver by any party hereto
of any default, misrepresentation or breach of warranty or covenant hereunder, whether intentional or not, may be deemed to extend to
any prior or subsequent default, misrepresentation or breach of warranty or covenant hereunder or affect in any way any rights arising
because of any prior or subsequent occurrence.

 

(q) Confidentiality. Except as may be required
by law, regulation or applicable stock exchange listing requirements, unless and until the transactions contemplated hereby and the terms
hereof are publicly announced or otherwise publicly disclosed by the Company, the parties hereto shall keep confidential and shall not
publicly disclose the existence or terms of this Agreement.

 

(r) Specific Performance. The Purchaser agrees
that irreparable damage may occur in the event any provision of this Agreement was not performed by the Purchaser in accordance with the
terms hereof and that the Company shall be entitled to specific performance of the terms hereof, in addition to any other remedy at law
or equity.

 

[Signature Page Follows]

 

     

     

    

  

IN WITNESS WHEREOF, the undersigned have
executed this Agreement to be effective as of the date first set forth above.

 

	
     

    
	PURCHASER:

	 	 
	
    
	Avista Acquisition
LP II

	 	 
	 	By:	
	 	Name: 
	 	Title:

 

	 	Address for Notices:
	 	E-mail:
	 	Fax:

 

	 	COMPANY:
	 	 
	 	Avista Public Acquisition Corp. II
	 	 	 
	 	By:	 
	 	 	Name: Benjamin Silbert
	 	 	Title: General Counsel and Secretary

 

     

     

    

 

Exhibit A

 

Registration Rights

 

1. Within thirty (30) days after the Business
Combination Closing, the Company shall use reasonable best efforts (i) to file a registration statement on Form S-3 or any similar short-form
registration statement which may be available at such time, or if the Company is ineligible to use such Form S-3, on Form S-1 (including
any successor registration statement covering the resale of the Registrable Securities a “Resale Shelf”) of (x) the
Class A Shares and Warrants (and underlying Class A Shares) comprising the Forward Purchase Securities, (y) any other Class A Shares that
may be acquired by the Purchaser after the date of this Agreement, including any time after the Business Combination Closing, and (z)
any other equity security of the Company issued or issuable with respect to the securities referred to in clauses (x) and (y) by way of
a share capitalization or share split or in connection with a combination of shares, recapitalization, merger, consolidation or reorganization
(collectively, the “Registrable Securities”) pursuant to Rule 415 under the Securities Act; provided in the
event the Company files a Resale Shelf on Form S-1, the Company shall convert the Form S-1 to a Form S-3 as soon as practicable after
the Company is eligible to use Form S-3, (ii) to cause the Resale Shelf to be declared effective under the Securities Act promptly thereafter
and (iii) to maintain the effectiveness of such Resale Shelf with respect to the Purchaser’s Registrable Securities until the earliest
of (A) the date on which the Purchaser or its assignee ceases to hold Registrable Securities covered by such Resale Shelf, (B) the date
all of the Purchaser’s Registrable Securities covered by the Resale Shelf can be sold publicly without restriction or limitation
(including without volume or manner of sale restrictions) under Rule 144 under the Securities Act and without the requirement to be in
compliance with Rule 144(c)(1) under the Securities Act.

 

2. In the event the Company is prohibited
by applicable rule, regulation or interpretation by the staff (“Staff”) of the Securities and Exchange Commission (“SEC”)
from registering all of the Registrable Securities on the Resale Shelf or the Staff requires that the Purchaser be specifically identified
as an “underwriter” in order to permit such registration statement to become effective, and such Purchaser does not consent
in writing to being so named as an underwriter in such registration statement, the number of Registrable Securities to be registered on
the Resale Shelf will be reduced on a pro rata basis among all the holders of Registrable Securities to be so included, unless otherwise
required by the Staff, so that the number of Registrable Securities to be registered is permitted by Staff and such Purchaser is not required
to be named as an “underwriter”; provided, that any Registrable Securities not registered due to this paragraph 2 shall
thereafter as soon as allowed by the SEC guidance be registered to the extent the prohibition no longer is applicable.

 

3. If at any time the Company proposes to
file a registration statement (a “Registration Statement”) on its own behalf, or on behalf of any other Persons who
have registration rights (“Other Holders”), relating to an underwritten offering of ordinary shares (a “Company
Offering”), then the Company will provide the Purchaser (the “Piggyback Holder”) with notice in writing (an
 “Offer Notice”) at least five (5) Business Days prior to such filing, which Offer Notice will offer to include in the
Registration Statement a minimum of 1,000,000 “Registrable Securities” (as defined under the Piggyback Holder’s agreement
governing registration rights) of the Piggyback Holder (collectively “Piggyback Securities”). Within five (5) Business
Days (or, in the case of an Offer Notice delivered to the Purchaser in connection with an Underwritten Shelf Takedown (as described below),
within three (3) Business Days) after receiving the Offer Notice, the Piggyback Holder may make a written request (a “Piggyback
Request”) to the Company to include some or all of the Piggyback Holder’s Registrable Securities in the Registration Statement.
If the underwriter(s) for any Company Offering advise the Company that marketing factors require a limitation on the number of securities
that may be included in the Company Offering, the number of securities to be so included shall be allocated as follows: (i) first, to
the Company and the Other Holders, if any; and (ii) second, to the Piggyback Holder based on the pro rata percentage of Piggyback Securities
held by the Piggyback Holder and requested to be included in the Company Offering.

 

4. At any time during which the
Company has an effective Resale Shelf with respect to the Purchaser’s Registrable Securities, the Purchaser may make a written
request (which request shall specify the intended method of disposition thereof) (a “Shelf Takedown Request”) to
the Company to effect a sale, of all or a portion of the Purchaser’s Registrable Securities that are covered by the Resale
Shelf, and the Company shall use commercially reasonable efforts to file a prospectus supplement (a “Shelf Takedown
Prospectus Supplement”) for such purpose as soon as reasonably practicable following receipt of a Shelf Takedown Request.
The Purchaser may request that any such sale be conducted as an underwritten public offering (an “Underwritten Shelf
Takedown”).

 

     

     

    

 

5. The determination of whether any offering
of Registrable Securities pursuant to the Resale Shelf or a Shelf Takedown Prospectus Supplement will be an underwritten offering shall
be made in the sole discretion of the Purchaser, after consultation with the Company, and the Purchaser shall have the right, after consultation
with the Company, to determine the plan of distribution, including the price at which the Registrable Securities are to be sold and the
underwriting commissions, discounts and fees (and the Requesting Holders shall not have the right to make any determinations other than
whether they wish to include their Requesting Holder Securities in the prospectus supplement). The Purchaser shall select the investment
banker or bankers and managers to administer the offering, including the lead managing underwriter (provided that such investment banker
or bankers and managers shall be reasonably satisfactory to the Company).

 

6. In connection with any underwritten offering,
the Company shall enter into such customary agreements and take all such other actions in connection therewith (including those requested
by the Purchaser) in order to facilitate the disposition of such Registrable Securities as are reasonably necessary or required, and in
such connection enter into a customary underwriting agreement that provides for customary opinions, comfort letters and officer’s
certificates and other customary deliverables and make management and its own accountants available for any due diligence sessions and
make management reasonably available for a road show.

 

7. The Company shall pay all fees and expenses
incident to the performance of or compliance with its obligation to prepare, file and maintain the Resale Shelf (including the fees of
its counsel and accountants). The Company shall also pay all Registration Expenses. For purposes of this paragraph 7, “Registration
Expenses” shall mean the out-of-pocket expenses of a Company Offering or Underwritten Shelf Takedown, including, without limitation,
the following: (i) all registration and filing fees (including fees with respect to filings required to be made with FINRA) and any securities
exchange on which the Registrable Securities are then listed; (ii) fees and expenses of compliance with securities or blue sky laws (including
reasonable fees and disbursements of counsel for the underwriters in connection with blue sky qualifications of the Registrable Securities);
(iii) printing, messenger, telephone and delivery expenses; (iv) reasonable fees and disbursements of counsel for the Company; (v) reasonable
fees and disbursements of all independent registered public accountants of the Company incurred specifically in connection with such Underwritten
Shelf Takedown; and (vi) reasonable fees and expenses of one legal counsel selected by the holders of a majority of the Registrable Securities,
who will represent all the selling shareholders.

 

8. The Company may suspend the use of a
prospectus included in the Resale Shelf by furnishing to the Purchaser a written notice (a “Suspension Notice”) stating
that in the good faith judgment of the Company, it would be either (i) prohibited by the Company’s insider trading policy (as if
the Purchaser were covered by such policy) or (ii) materially detrimental to the Company and its shareholders for such prospectus to be
used at such time. The Company’s right to suspend the use of such prospectus under clause (ii) of the preceding sentence may be
exercised for a period of not more than sixty (60) days after the date of such notice to the Purchaser; provided such period may
be extended for an additional thirty (30) days with the consent of a majority-in-interest of the holders of Registrable Securities covered
by the Resale Shelf, which consent shall not be unreasonably withheld; provided further, that such right to suspend the use of
a prospectus shall be exercised by the Company not more than once in any twelve (12) month period. A holder of Registrable Securities
shall not effect any sales of Registrable Securities pursuant to the Resale Shelf at any time after it has received a Suspension Notice
from the Company and prior to receipt of an End of Suspension Notice (as defined below). The holders may recommence effecting sales of
the Registrable Securities pursuant to the Resale Shelf following further written notice to such effect (an “End of Suspension
Notice”) from the Company to the holders. The Company shall act in good faith to permit any suspension period contemplated by
this paragraph to be concluded as promptly as reasonably practicable.

 

9. The Purchaser agrees that, except as
required by applicable law, the Purchaser shall treat as confidential the receipt of any Suspension Notice (provided that in no
event shall such notice contain any material nonpublic information of the Company) hereunder and shall not disclose or use the information
contained in such Suspension Notice without the prior written consent of the Company until such time as the information contained therein
is or becomes public, other than as a result of disclosure by a holder of Registrable Securities in breach of the terms of this Agreement.

 

     

     

    

 

10. The Company shall indemnify and hold
harmless the Purchaser, its directors and officers, partners, members, managers, employees, agents and representatives of such Purchaser
and each person, if any, who controls the Purchaser within the meaning of the Securities Act and the Exchange Act and any agent thereof
(collectively, “Indemnified Persons”), to the fullest extent permitted by applicable law, from and against any losses,
claims, damages, liabilities, joint or several, costs (including reasonable costs of preparation and reasonable attorneys’ fees)
and expenses, judgments, fines, penalties, interest, settlements or other amounts arising from any and all claims, demands, actions, suits
or proceedings, whether civil, criminal, administrative or investigative, in which any Indemnified Person may be involved, or is threatened
to be involved, as a party or otherwise, under the Securities Act or otherwise (collectively, “Losses”), promptly as
incurred, arising out of, based upon or resulting from any untrue statement or alleged untrue statement of any material fact contained
in the Resale Shelf (or any amendment or supplement thereto), the related prospectus, or any amendment or supplement thereto, or arise
out of, are based upon or resulting from the omission or alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading; provided, however,
that the Company shall not be liable in any such case or to any Indemnified Person to the extent that any such Loss arises out of, is
based upon or results from an untrue statement or alleged untrue statement or omission or alleged omission or so made in reliance upon
or in conformity with information furnished by or on behalf of such Indemnified Person in writing specifically for use in the preparation
of the Resale Shelf, the related prospectus, or any amendment or supplement thereto. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of such Indemnified Person, and shall survive the transfer of such securities by
the Purchaser.

 

11. The Company’s obligation under
paragraph (1) of this Exhibit A is subject to the Purchaser’s furnishing to the Company in writing such information as the Company
reasonably requests for use in connection with the Resale Shelf, the related prospectus or any amendment or supplement thereto. The Purchaser
shall indemnify the Company, its officers, directors, managers, employees, agents and representatives, and each person who controls the
Company (within the meaning of the Securities Act) against any losses, claims, damages, liabilities and expenses resulting from any untrue
statement or alleged untrue statement of material fact contained in the Resale Shelf, the related prospectus, or any amendment or supplement
thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein
not misleading, but only to the extent that such untrue statement or omission is contained in any information so furnished in writing
by such Purchaser expressly for inclusion in such document; provided that the obligation to indemnify shall be individual, not
joint and several, for each Purchaser and shall be limited to the net amount of proceeds received by such Purchaser from the sale of Registrable
Securities pursuant to the Resale Shelf.

 

12. The Company shall cooperate with the
Purchaser, to the extent the Registrable Securities become freely tradable, to facilitate the timely preparation and delivery of certificates
(not bearing any restrictive legend) representing the Registrable Securities to be offered pursuant to a Resale Shelf and enable such
certificates to be in such denominations or amounts, as the case may be, as the Purchaser may reasonably request and registered in such
names as the Purchaser may request.

 

13. If requested by the Purchaser, the Company
shall as soon as practicable, subject to any Suspension Notice, (i) incorporate in a prospectus supplement or post-effective amendment
such information as the Purchaser reasonably requests to be included therein relating to the sale and distribution of Registrable Securities,
including, without limitation, information with respect to the number of Registrable Securities being offered or sold, the purchase price
being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii) make all required
filings of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus
supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement if reasonably requested
by the Purchaser holding any Registrable Securities.

 

14. As long as the Purchaser shall own
Registrable Securities, the Company, at all times while it shall be reporting under the Exchange Act, covenants to file timely (or
obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company
after the date hereof pursuant to Sections 13(a) or 15(d) of the Exchange Act, and to promptly furnish the Purchaser with true and
complete copies of all such filings, unless filed through the SEC’s EDGAR system. The Company further covenants that it shall
take such further action as the Purchaser may reasonably request, all to the extent required from time to time, to enable the
Purchaser to sell the Class A Shares and Warrants held by the Purchaser without registration under the Securities Act within the
limitation of the exemptions provided by Rule 144 promulgated under the Securities Act, including providing any legal opinions. Upon
the request of the Purchaser, the Company shall deliver to the Purchaser a written certification of a duly authorized officer as to
whether it has complied with such requirements.

 

15. The rights, duties and obligations of
the Purchaser under this Exhibit A may be assigned or delegated by the Purchaser in conjunction with and to the extent of any permitted
transfer or assignment of Registrable Securities by the Purchaser to any permitted transferee or assignee.Document

EXHIBIT 10.1

SUBLEASE BETWEEN
ORACLE AMERICA, INC. 
AND
PEGASYSTEMS INC.
______________________________
ONE MAIN STREET,
CAMBRIDGE, MASSACHUSETTS
______________________________
Sixth (6th) Floor

EXHIBIT 10.1

SUBLEASE
THIS SUBLEASE (“Sublease”) is entered into as of March 31, 2021 (the “Effective Date”), by and between ORACLE AMERICA, INC., a Delaware corporation (“Sublandlord”), and PEGASYSTEMS INC., a Massachusetts corporation (“Subtenant”), with reference to the following facts:
A.Pursuant to that certain Lease dated as of April 12, 2006 (the “Original Lease”), as the same has been amended by that certain First Amendment to Lease dated as of May 7, 2007 (the “First Amendment”), by that certain Second Amendment to Lease dated as of December 14, 2009 (the “Second Amendment”), by that certain Third Amendment to Lease dated as of July 27, 2010 (the “Third Amendment”), by that certain Fourth Amendment to Lease dated as of October 29, 2012 (the “Fourth Amendment”), by that certain Fifth Amendment to Lease dated as of January 28, 2013 (the “Fifth Amendment”) and by that certain Sixth Amendment to Lease dated as of July 26, 2018 (the “Sixth Amendment”, and together with the Original Lease, First Amendment, Second Amendment, Third Amendment, Fourth Amendment and Fifth Amendment, the “Master Lease”) (a copy of the  Master  Lease  is  attached  hereto  as Schedule 1), RREEF AMERICA REIT II CORP, PPP, a Maryland corporation (“Landlord”), as Landlord, leases to Sublandlord (successor in interest to Art Technology Group, Inc.), as tenant, certain space (the “Master Lease Premises”) consisting of approximately 31,571 rentable square feet (“RSF”) on the sixth (6th) floor of the building located at One Main Street, Cambridge, Massachusetts (the “Building”).
B.Subtenant wishes to sublease from Sublandlord, and Sublandlord wishes to sublease to Subtenant, the entire Master Lease Premises, said space being more particularly identified and described on the floor plan attached hereto as Exhibit A and incorporated herein by reference (the “Subleased Premises”).
NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged by the parties, Sublandlord and Subtenant hereby agree as follows:
1.Sublease. Sublandlord hereby subleases to Subtenant and Subtenant hereby subleases from Sublandlord for the term, at the rental, and upon all of the conditions set forth herein, the Subleased Premises. Subtenant shall also have the right to use the lobbies, entrances, stairways, public elevators and other public portions of the Building on the terms and conditions set forth in the Master Lease.
2.Term.
(a)    Generally.  The term of this Sublease (the “Term”) shall commence on  the date (the “Commencement Date”) that is the later to occur of the date that is thirty (30) days after (i) the date upon which Sublandlord delivers possession of the Subleased Premises to Subtenant in the condition required in Section 14(a) of this Sublease, which date shall be July 1, 2021, and (ii) the date upon which Sublandlord procures Landlord’s consent to this Sublease in a form reasonably satisfactory to Sublandlord and Subtenant (the “Consent”, and the date upon which Sublandlord procures the Consent being the “Consent Date”), and end on December 15, 2025 (the “Expiration Date”) (such thirty (30) day period prior to the Commencement Date being referred to herein as the “Early Access Period”), unless sooner terminated pursuant to any provision hereof. If the fully executed Consent is not obtained by May 15, 2021, Sublandlord or Subtenant may terminate this Sublease, but shall not be obligated to do so, and once such Consent is obtained, there shall be no further right to terminate this Sublease on account of the Consent. Upon the determination of the Commencement Date, Sublandlord and Subtenant will enter into a letter agreement in the form of Exhibit B attached hereto.
(b)    Adjustments. Notwithstanding the provisions of Section 2(a) above:
(i)    If, as of the date that Sublandlord would otherwise deliver possession of the Subleased Premises to Subtenant as described in Section 2(a) above, Subtenant has not delivered to Sublandlord (A) the prepaid Base Rent pursuant to the provisions of Section 3(a)(i) below, (B) the Security Deposit pursuant to the provisions of Section 4 below, and (C) evidence of Subtenant’s procurement of all insurance coverage required hereunder (the conditions in (A) through (C) are collectively referred to herein as the “Delivery Conditions”), then Sublandlord will have no obligation to deliver possession of the Subleased Premises to Subtenant, but the failure on the part of Sublandlord to so deliver possession of the Subleased Premises to Subtenant in such event will not serve to delay the occurrence of  the Commencement Date and the commencement of Subtenant’s obligations to pay Rent (defined below) hereunder.
1

EXHIBIT 10.1

(ii)    Early Access Period. Notwithstanding anything herein to the contrary, Sublandlord shall permit Subtenant and Subtenant’s employees, agents and contractors to enter the Subleased Premises during the Early Access Period for the sole purpose of installing Subtenant’s personal property, furniture, fixtures and equipment and otherwise preparing the Subleased Premises for Subtenant’s use and occupancy, all subject to the terms, conditions and requirements of the Master Lease, provided that (A) this Sublease is fully executed by both Sublandlord and Subtenant prior to the Early Access Period; (B) Subtenant has satisfied the Delivery Conditions; and (C) Sublandlord and Subtenant have received the Consent prior to the Early Access Period. All of the rights and obligations of the parties under this Sublease (other than Subtenant’s obligation to pay Base Rent, but expressly including without limitation Subtenant’s obligation to pay excess utility charges and carry insurance, as well as Subtenant’s indemnification obligations) shall commence upon the Early Access Date. Subtenant shall coordinate any such entry with Sublandlord. Notwithstanding the foregoing, if Subtenant commences to conduct business in the Subleased Premises during the Early Access Period, Subtenant shall be obligated to pay Base Rent as of such date.
3.Rent.
(a)    Rent Payments.
(i)    Generally. Subtenant shall pay to Sublandlord as base rent for the Subleased Premises during the Term (“Base Rent”) the following:
									
	Period	Rate Per RSF Per Annum
	Monthly Base Rent

	Months 1 - 12*
	$71.00
	$186,795.08
	Months 13 - 24
	$72.78
	$191,464.96

	Months 25 - 36
	$74.59
	$196,251.58

	Months 37 - 48
	$76.46
	$201,157.87

	Months 49 - Expiration Date
	$78.37
	$206,186.82

* Subject to abatement pursuant to Section 3(a)(ii) below.
Base Rent shall be paid in advance on the first day of each month of the Term, except that Subtenant shall pay one (1) month’s Base Rent (i.e., $186,795.08) to Sublandlord after execution of this Sublease and within two (2) business days of delivery of the fully executed Consent; said pre-paid Base Rent will be applied to the first (1st) month’s Base Rent due and payable hereunder following the Abatement Period (defined below). If the Term does not begin on the first day of a calendar month or end on the last day of a month, the Base Rent and Additional Rent (hereinafter defined) for any partial month shall be prorated by multiplying the monthly Base Rent and Additional Rent by a fraction, the numerator of which is the number of days of  the partial month included in the Term and the denominator of which is the total number of days in the full calendar month. All Rent (hereinafter defined) shall be payable in lawful money of  the United States, by ACH/wire transfer to Sublandlord’s bank account and Sublandlord will provide such information to Subtenant on Rent invoices, or by regular bank check of Subtenant, to Sublandlord at the following address:
1001 Sunset Boulevard
Rocklin, California 95765 
Attn: Lease Administration
or to such other persons or at such other places as Sublandlord may designate in writing.
(ii)    Abatement. Notwithstanding anything in Section 3(a)(i) above to the contrary, so long as Subtenant is not in Default (defined below) under this Sublease, Subtenant shall be entitled to an abatement of Base Rent for the first (1st) three (3) full calendar months of the Term (the “Abatement Period”); the Abatement Period will not include any partial calendar month immediately following the Commencement Date. The total amount of Base Rent abated during the Abatement Period in the amount of $560,385.25 is referred to herein as the “Abated Rent”. If Subtenant is in Default hereunder at any time during the Term, then (A) if such Default occurs prior to the expiration of the Abatement Period, there will be no further abatement of Base Rent pursuant to this Section 3(a)(ii), and (B) at Sublandlord’s option, if Sublandlord terminates Subtenant’s rights to possess the Subleased Premises due to the applicable Default, then all then-unamortized Abated Rent (assuming amortization of all Abated Rent on a straight-line basis over the Term) shall become due and payable within thirty (30) days following Sublandlord’s written request therefor. The payment by Subtenant of the Abated Rent in the event of a Default shall not limit or affect any of Sublandlord’s other rights, pursuant to this Sublease or at law or in equity. During the Abatement Period, only Base Rent shall be abated, and all other costs and charges specified in this Sublease shall remain as due and payable pursuant to the provisions of this Sublease
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EXHIBIT 10.1

(b)    Operating Costs.
(i)    Definitions. For purposes of this Sublease and in addition to the terms defined elsewhere in this Sublease, the following terms shall have the meanings set forth below:
(A)“Additional Rent” shall mean the sums payable pursuant to Section 3(b)(ii) below.
(B)“Base   Operating   Costs”   shall   mean   Operating   Costs payable by Sublandlord to Landlord for the Master Lease Premises during the Base Year.
(C)“Base Year” shall mean the calendar year 2021.
(D)“Operating Costs” shall mean Expenses and Taxes (as each is defined in the Master Lease) charged by Landlord to Sublandlord pursuant to the Master Lease.
(E)“Electricity Costs” shall mean Tenant’s Allocable Electricity Costs (as defined in the Master Lease) charged by Landlord to Sublandlord pursuant to the Master Lease.
(F)“Rent” shall mean, collectively, Base Rent, Additional Rent, and all other sums payable by Subtenant to Sublandlord under this Sublease, whether or not expressly designated as “rent”, all of which are deemed and designated as rent pursuant to  the terms of this Sublease.
(G)“Subtenant’s Percentage Share” shall mean 100%.
(ii)    Electricity Costs. As provided in Section 13.1.1 of the Original Lease, Subtenant shall pay Sublandlord monthly Electricity Costs attributable to the Subleased Premises which amount shall be determined in accordance with the Master Lease.
(iii)    Payment of Additional Rent. In addition to the Base Rent payable pursuant to Section 3(a) above, from and after the expiration of the Base Year, for each calendar year of the Term, Subtenant shall pay, as Additional Rent, Subtenant’s Percentage Share of the amount by which Operating Costs payable by Sublandlord for the then current calendar year exceed Base Operating Costs. Sublandlord shall provide Subtenant with written notice of Sublandlord’s estimate of the amount of Additional Rent per month payable pursuant to this Section 3(b)(iii) for each calendar year after the Base Year promptly following the Sublandlord’s receipt of Landlord’s estimate of the Operating Costs payable under the Master Lease. Thereafter, the Additional Rent payable pursuant to this Section 3(b)(iii) shall be determined and adjusted in accordance with the provisions of Section 3(b)(iv) below.
(iv)    Procedure. The determination and adjustment of Additional Rent payable hereunder shall be made in accordance with the following procedures:
(A)    Delivery   of  Estimate;  Payment.    Upon receipt of a statement from Landlord specifying the estimated Operating Costs to be charged to Sublandlord under the Master Lease with respect to each calendar year, Sublandlord shall give Subtenant written notice of its estimate of Additional Rent payable under Section 3(b)(iii) for the ensuing calendar year, which estimate shall be prepared based on the estimate received from Landlord (as Landlord’s estimate may change from time to time), together with a copy of the statement received from Landlord. On or before the first day of each month during each calendar year, Subtenant shall pay to Sublandlord as Additional Rent one-twelfth (1/12th) of such estimated amount together with the Base Rent.
(B)    Sublandlord’s Failure to Deliver Estimate. In the event Sublandlord’s notice set forth in Subsection 3(b)(iv)(A) is not given on or before December of the calendar year preceding the calendar year for which Sublandlord’s notice is applicable, as the case may be, then until the calendar month after such notice is delivered by Sublandlord, Subtenant shall continue to pay to Sublandlord monthly, during the ensuing calendar year, estimated payments equal to the amounts payable hereunder during the calendar year just ended. Upon receipt of any such post-December notice Subtenant shall (i) commence as of the immediately following calendar month, and continue for the remainder of the calendar year, to pay to Sublandlord monthly such new estimated payments and (ii) if the monthly installment of the new estimate of such Additional Rent is greater than the monthly installment of the estimate for the previous calendar year, pay to Sublandlord within thirty (30) days of the receipt of such notice an amount equal to the difference of such monthly installment multiplied by the number  of full and partial calendar months of such year preceding the delivery of such notice.
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EXHIBIT 10.1

(v)    Year End Reconciliation. Following the receipt by Sublandlord of a final statement of Operating Costs from Landlord with respect to each calendar year, Sublandlord shall deliver to Subtenant a statement of the adjustment to be made pursuant to Section 3(b) above for the calendar year just ended, together with a copy of any corresponding statement received by Sublandlord from Landlord (“Sublandlord’s Annual Statement”). If on the basis of such Sublandlord’s Annual Statement Subtenant owes an amount that is less than the estimated payments actually made by Subtenant for the calendar year just ended, Sublandlord shall credit such excess to the next payments of Rent coming due or, if the term of this Sublease is about to expire, promptly refund such excess to Subtenant. If on the basis of such Sublandlord’s Annual Statement Subtenant owes an amount that is more than the estimated payments for the calendar year just ended previously made by Subtenant, Subtenant shall pay the deficiency to Sublandlord within thirty (30) days after delivery of the Sublandlord’s Annual Statement from Sublandlord to Subtenant.
(vi)    Reliance on Landlord’s Calculations. In calculating Operating Costs payable hereunder by Subtenant, Sublandlord shall have the right to rely upon the calculations of Landlord made in determining Expenses and Taxes and pursuant to the provisions of the Master Lease and as set forth in the relevant Landlord’s statement delivered to Sublandlord. Provided that Subtenant is not in Default and reasonably requests an audit of Landlord’s calculation of Expenses and/or Taxes, Sublandlord shall exercise Sublandlord’s audit right pursuant to Section 4.3 of the Original Lease, at Subtenant’s sole cost and expense, and Subtenant shall indemnify and hold Sublandlord harmless from and against any claims by Landlord related to such audit. In such case, Sublandlord shall deliver to Subtenant its pro rata share of any refunds received from Landlord after deducting audit costs to the extent Subtenant did not previously pay the initial amount to which the refund relates.
(vii)    Survival. The expiration or earlier termination of this Sublease shall not affect the obligations of Sublandlord and Subtenant pursuant to Subsection 3(b)(iv), and such obligations shall survive, remain to be performed after, any expiration or earlier termination of this Sublease.
(c)    Other Taxes Payable by Subtenant. In addition to payment of Operating Costs, Subtenant shall pay before delinquency any and all taxes levied or assessed and which become payable by subtenant (or directly or indirectly by Sublandlord) during the Term, whether or not now customary or within the contemplation of the parties hereto, which are based upon, measured by or otherwise calculated with respect to: (i) the gross or net rental income of Sublandlord under this Sublease if and to the extent Sublandlord is responsible for the same under the Master Lease, including, without limitation, any gross receipts tax levied by any taxing authority, or any other gross income tax or excise tax levied by any taxing authority with respect to the receipt of the rental payable hereunder; (ii) the value of Subtenant’s equipment, furniture, fixtures or other personal property located in the Subleased Premises; or (iii) the possession, lease, operation, management, maintenance, alteration, repair, use or occupancy by Subtenant of the Subleased Premises or any portion thereof. Notwithstanding the foregoing, in no event shall Subtenant be required to pay (1) any taxes levied or assessed against Sublandlord (except as provided in subsection (i) above and to the extent such taxes are applicable to the Subleased Premises) or (2) taxes levied or assessed against the personal property of Sublandlord (other than the FF&E (as defined below)).
4.Security Deposit. After execution of this Sublease and within two (2) business days of the delivery of the fully executed Consent, Subtenant shall deposit with Sublandlord the sum of $206,186.82 (the “Security Deposit”). The Security Deposit shall be held by  Sublandlord as security for the faithful performance by Subtenant of all the provisions of this Sublease to be performed or observed by Subtenant. If Subtenant fails to pay Rent or other sums due hereunder, or otherwise is in breach with respect to any provisions of this Sublease, Sublandlord may use, apply or retain all or any portion of the Security Deposit for the payment of any past due sum or for the payment of any other sum to which Sublandlord may become obligated by reason of Subtenant’s breach, or to compensate Sublandlord for any loss or damage which Sublandlord may suffer thereby. If Sublandlord so uses or applies all or any portion of the Security Deposit, Subtenant shall within ten (10) days after demand therefor deposit cash with Sublandlord in an amount sufficient to restore the Security Deposit to the full amount thereof and Subtenant’s failure to do so shall be a material breach of this Sublease. If Subtenant performs all of Subtenant’s obligations hereunder, the Security Deposit, or so much thereof as has not theretofore been applied by Sublandlord, shall be returned, without interest, to Subtenant (or, at Sublandlord’s option, to the last assignee, if any, of Subtenant’s interest hereunder) within sixty (60) days following the later to occur of (a) the expiration of the Term, and (b) Subtenant’s vacation from the Subleased Premises and completion of all removal, repair and restoration obligations. No trust relationship is created herein between Sublandlord and Subtenant with respect to the Security Deposit.
5.Use and Occupancy.
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EXHIBIT 10.1

(a)    Use. The Subleased Premises shall be used and occupied only for general office use, training room, corporate briefing room and for no other use or purpose. To Sublandlord’s actual knowledge without duty of investigation, Sublandlord represents and warrants that there are no restrictions set forth in the Master Lease and/or by applicable law restricting the number of occupants who may use the Subleased Premises.
(b)    Compliance with Master Lease. Subtenant will occupy the Subleased Premises in accordance with the terms of the Master Lease and will not suffer to be done, or omit to do, any act which may result in a violation of or a default under the Master Lease, or render Sublandlord liable for any damage, charge or expense thereunder. Subtenant will indemnify, defend, protect and hold Sublandlord harmless from and against any loss, cost, damage or liability (including attorneys’ fees) of any kind or nature arising out of, by reason of, or resulting from, Subtenant’s failure to perform or observe any of the terms and conditions of the Master Lease (specifically excluding all Sublandlord’s performance obligations prior to the Commencement Date thereunder and rental and insurance obligations of Sublandlord thereunder) or this Sublease. Any other provision in this Sublease to the contrary notwithstanding, Subtenant shall pay to Sublandlord as Rent hereunder any and all sums which Sublandlord may be required to pay the Landlord arising out of a request by Subtenant for, or the use by Subtenant of, additional or over-standard Building services from Landlord (for example, but not by way of limitation, charges associated with after-hour HVAC usage and overstandard electrical charges).
(c)    Landlord’s Obligations. Subtenant agrees that Sublandlord shall not be required to perform any of the covenants, agreements and/or obligations of Landlord under the Master Lease, including, without limitation, the services provided in Article 13 of the Original Lease, and, insofar as any of the covenants, agreements and obligations of Sublandlord hereunder are required to be performed under the Master Lease by Landlord thereunder, Subtenant acknowledges and agrees that Sublandlord shall be entitled to look to Landlord for such performance. In addition, Sublandlord shall have no obligation to perform any repairs or any other obligation of Landlord under the Master Lease, nor shall any representations or warranties made by Landlord under the Master Lease be deemed to have been made by Sublandlord. Sublandlord shall not be responsible for any failure or interruption, for any reason whatsoever, of the services or facilities that may be appurtenant to or supplied at the Building by Landlord or otherwise, including, without limitation, heat, air conditioning, ventilation, life- safety, water, electricity, elevator service and cleaning service, if any; and no failure to furnish, or interruption of, any such services or facilities shall give rise to any (i) abatement, diminution or reduction of Subtenant’s obligations under this Sublease, or (ii) liability on the part of Sublandlord. Notwithstanding the foregoing, Sublandlord shall use good faith efforts, under the circumstances, to secure such performance upon Subtenant’s request to Sublandlord to do so and shall thereafter diligently prosecute such performance on the part of Landlord; provided that in no event will this sentence be construed to require Sublandlord to commence any litigation, arbitration, judicial reference or other similar proceeding against Landlord. To the extent Sublandlord receives any abatement of Rent under the Master Lease that relates to the Subleased Premises, Subtenant’s Rent hereunder shall be abated by the same amount. With respect to services and repairs required to be effected by Landlord pursuant to the Master Lease, promptly following Sublandlord’s receipt of written notice from Subtenant identifying such repairs and/or services (“Repair Notice”), Sublandlord shall reasonably investigate Subtenant’s Repair Notice, and, if Sublandlord reasonably determines that Landlord is responsible for such repairs and/or services under the Master Lease, Sublandlord shall commence and diligently pursue to completion commercially reasonably efforts to cause Landlord to undertake appropriate corrective action. Sublandlord agrees to not unreasonably withhold its consent to any work or services requested by Subtenant of Landlord in or to the Subleased Premises, provided that Subtenant shall pay all costs and expenses with respect to such work or services to the extent payment is required under the Master Lease.
6.Master Lease and Sublease Terms.
(a)    Subject to Master Lease. This Sublease is and shall be at all times subject and subordinate to the Master Lease. Subtenant acknowledges that Subtenant has reviewed and  is familiar with all of the terms, agreements, covenants and conditions of the Master Lease. Additionally, Subtenant’s rights under this Sublease shall be subject to the terms of the Consent. During the Term and for all periods subsequent thereto with respect to obligations which have arisen prior to the termination of this Sublease, Subtenant agrees to perform and comply with, for the benefit of Sublandlord and Landlord, the obligations of Sublandlord under the Master Lease which pertain to the Subleased Premises and/or this Sublease, except for those provisions of the Master Lease which are directly contradicted by this Sublease, in which event the terms of this Sublease document shall control over the Master Lease (specifically excluding Sublandlord’s performance obligations prior to the Commencement Date thereunder and all rental and insurance obligations of Sublandlord thereunder).
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EXHIBIT 10.1

(b)    Incorporation of Terms of Master Lease. The terms, conditions and respective obligations of Sublandlord and Subtenant to each other under this Sublease shall be the terms and conditions of the Master Lease, except for those provisions of the Master Lease which are directly contradicted by this Sublease, in which event the terms of this Sublease shall control over the Master Lease. Therefore, for the purposes of this Sublease, wherever in the Master Lease the word “Landlord” is used it shall be deemed to mean Sublandlord and wherever in the Master Lease the word “Tenant” is used it shall be deemed to mean Subtenant. Additionally, wherever in the Master Lease the word “Premises” is used it shall be deemed to mean the Subleased Premises. Any non-liability, release, indemnity or hold harmless provision  in the Master Lease for the benefit of Landlord that is incorporated herein by reference, shall be deemed to inure to the benefit of Sublandlord, Landlord, and any other person intended to be benefited by said provision, for the purpose of incorporation by reference in this Sublease; provided, however, Subtenant’s indemnification obligations to Sublandlord shall only be as expressly provided in this Sublease. Any right of Landlord under the Master Lease (i) of access or inspection, (ii) to do work in the Master Lease Premises or in the Building, and (iii) in respect of rules and regulations, which is incorporated herein by reference, shall be deemed to inure to the benefit of Sublandlord, Landlord, and any other person intended to be benefited by said provision, for the purpose of incorporation by reference in this Sublease.
(c)    Modifications. For the purposes of incorporation herein, the terms of the Master Lease are subject to the following additional modifications:
(i)    Approvals. In all provisions of the Master Lease (under the terms thereof and without regard to modifications thereof for purposes of incorporation into this Sublease) requiring the approval or consent of Landlord, Subtenant shall be required to obtain the approval or consent of both Sublandlord and Landlord. Sublandlord’s consent shall not be unreasonably withheld, delayed or conditioned to any request for which Landlord’s approval or consent has been obtained.
(ii)    Obligations Outside of Master Lease Premises. Sublandlord shall not be obligated to perform those obligations of Landlord which require access to areas outside of the Master Lease Premises or that are not permitted to be taken by Sublandlord pursuant to the terms of the Master Lease. For example, but not by way of limitation, Sublandlord shall not be obligated to perform Landlord’s obligations under the Master Lease to maintain the roof, foundations, slabs, structural elements, subfloors, exterior walls, drainage systems, or any electrical, plumbing, mechanical or life-safety equipment or systems, any common area or any other repair or maintenance obligations which are Landlord’s obligations under the Master Lease.
(iii)    Deliveries. In all provisions of the Master Lease requiring Sublandlord to submit, exhibit to, supply or provide Landlord with evidence, certificates, or any other matter or thing, Subtenant shall be required to submit, exhibit to, supply or provide, as the case may be, the same to both Landlord and Sublandlord.
(iv)    Damage; Condemnation. Sublandlord shall have no obligation to restore or rebuild any portion of the Subleased Premises after any destruction or taking by eminent domain. Any rights of Subtenant to abatement of Rent shall be conditioned upon Sublandlord’s ability to abate rent for the Subleased Premises under the terms of the Master Lease.
(v)    Insurance. In all provisions of the Master Lease requiring Sublandlord to designate Landlord as an additional or named insured on its insurance policy, Subtenant shall be required to so designate Landlord and Sublandlord on its insurance policy. Sublandlord shall have no obligation to maintain the insurance to be maintained by Landlord under the Master Lease.
(vi)    Representations and Warranties. Sublandlord shall not be deemed to have made or adopted as its own any representations or warranties made by Landlord in the Master Lease, except to the extent the relevant provision of the Master Lease is incorporated herein.
(vii)    Construction. Sublandlord shall have no obligation to construct or pay for any improvements unless and to the extent expressly set forth herein.
(viii)    Expansion/Extension Options. Whether or not set forth in the Master Lease, Subtenant shall have no rights to expand or reduce the RSF of the Subleased Premises, or any options to renew or extend the Term, or rights of first offer, rights of first refusal, or other preemptive rights under the Master Lease unless and to the extent expressly set forth herein.
(d)    Exclusions. Notwithstanding the terms of Section 6(b) above, Subtenant shall have no rights nor obligations under the following parts, Sections and Exhibits of the Master Lease:
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EXHIBIT 10.1

(i)    Original Lease: Sections 2.2, 2.3, Article 5, Section 6.1, last sentence of Section 6.2, reference to Exhibit B in Section 7.1, Article 14, Article 18 (except to the extent referenced by Sections 8 and 12.2), Article 27, Article 32, Article 33, Section 39.1.7, Article 40, Article 41, Exhibit A (except for A-1, A-2), Exhibit B and Exhibit C.
(ii)    First Amendment: All.
(iii)    Second Amendment: Sections 2 and 4 through 12, Exhibit A and Exhibit B
(iv)    Third Amendment: All.
(v)    Fourth Amendment:   Sections 3 through 10, Section 14, Exhibit B and Exhibit C.
(vi)    Fifth Amendment:  Sections 3 through 8, Section 11 and Exhibit B.
(vii)    Sixth Amendment:  Only those references to the seventh (7th) floor of the Building which are not applicable to Subtenant.
7.Assignment and Subletting. Subtenant shall not assign this Sublease or further sublet all or any part of the Subleased Premises without the prior written consent of Landlord and Sublandlord, which consent of Sublandlord will not be unreasonably withheld, conditioned or delayed. Any request by Subtenant to assign and/or sublease shall be submitted by Sublandlord to Landlord promptly upon receipt of the same from Subtenant. Sublandlord shall respond to Subtenant’s request for consent to assign this Sublease or further sublet the Subleased Premises within thirty (30) days following receipt of such written request; provided, however, Sublandlord shall not be responsible for Landlord’s failure to timely respond to any request for consent. Additionally, any such assignment or sublease, if consented to by Sublandlord and Landlord, shall be subject to and in compliance with all of the terms and conditions of the Master Lease, and Sublandlord (in addition to Landlord) shall have the same rights with respect to assignment and subleasing as Landlord has under the Master Lease. Subtenant shall pay all fees and costs payable to Landlord pursuant to the Master Lease as well as all of Sublandlord’s reasonable out- of-pocket costs relating to any proposed assignment, sublease or transfer of the Subleased Premises regardless of whether any required consent is granted, and the effectiveness of any such consent shall be conditioned upon Landlord’s and Sublandlord’s receipt of all such fees and costs.
8.Default. Except as expressly set forth herein, Subtenant shall perform all obligations in respect of the Subleased Premises that Sublandlord would be required to perform pursuant to the Master Lease. It shall constitute a “Default” hereunder if Subtenant fails to perform any obligation hereunder (including, without limitation, the obligation to pay Rent), or any obligation under the Master Lease which has been incorporated herein by reference, and, in each instance, Subtenant has not remedied such failure (a) in the case of any monetary Default, three (3) business days after delivery of written notice and (b) in the case of any other Default, ten (10) business days after delivery of written notice.
9.Remedies. In the event of any Default hereunder by Subtenant, Sublandlord shall have all remedies provided to the “Landlord” in the Master Lease as if a default had occurred thereunder and all other rights and remedies otherwise available at law and in equity. Sublandlord may resort to its remedies cumulatively or in the alternative.
10.Right to Cure Defaults. If Subtenant fails to perform any of its obligations under this Sublease after expiration of applicable grace or cure periods, then Sublandlord may, but shall not be obligated to, perform any such obligations for Subtenant’s account. All costs  and expenses incurred by Sublandlord in performing any such act for the account of Subtenant shall be deemed Rent payable by Subtenant to Sublandlord upon demand, together with interest thereon at the lesser of (a) ten percent (10%) per annum or (b) the maximum rate allowable  under law from the date of the expenditure until repaid. If Sublandlord undertakes to perform any of Subtenant’s obligations for the account of Subtenant pursuant hereto, the taking of such action shall not constitute a waiver of any of Sublandlord’s remedies. Subtenant hereby expressly waives its rights under any statute to make repairs at the expense of Sublandlord.
11.Consents and Approvals. In any instance when Sublandlord’s consent or approval is required under this Sublease, Sublandlord’s refusal to consent to or approve any matter or thing shall be deemed reasonable if, among other matters, such consent or approval is required under the provisions of the Master Lease incorporated herein by reference but has not been obtained from Landlord. Except as otherwise provided herein, Sublandlord shall not unreasonably withhold, or delay its consent to or approval of a matter if such consent or approval is required under the provisions of the Master Lease and Landlord has consented to or approved of such matter.
12.Sublandlord’s Liability.
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EXHIBIT 10.1

(a)    Limitation of Liability. Notwithstanding any other term or provision of this Sublease, the liability of Sublandlord to Subtenant for any default in Sublandlord’s obligations under this Sublease shall be limited to actual, direct damages, and under no circumstances shall Subtenant, its partners, members, shareholders, directors, agents, officers, employees, contractors, sublessees, successors and/or assigns be entitled to recover from Sublandlord (or otherwise be indemnified by Sublandlord) for (i) any losses, costs, claims, causes of action, damages or other liability incurred in connection with a failure of Landlord, its partners, members, shareholders, directors, agents, officers, employees, contractors, successors and/or assigns to perform or cause to be performed Landlord’s obligations under the Master Lease, (ii) lost revenues, lost profit or other consequential, special or punitive damages arising in connection with this Sublease for any reason, or (iii) any damages or other liability arising from or incurred in connection with the condition of the Subleased Premises or suitability of the Subleased Premises for Subtenant’s intended uses. Subtenant shall, however, have the right to seek any injunctive or other equitable remedies as may be available to Subtenant under applicable law. Notwithstanding any other term or provision of this Sublease, no personal liability shall at any time be asserted or enforceable against Sublandlord’s shareholders, directors, officers, or partners on account of any of Sublandlord’s obligations or actions under this Sublease. Similarly, except in connection with any holding over in the Subleased Premises by Subtenant beyond the expiration or sooner termination of this Sublease or Subtenant’s handling, use of or release of hazardous materials in or about the Subleased Premises, the liability of Subtenant to Sublandlord shall also be limited to actual, direct damages, and under no circumstances shall Sublandlord, its partners, members, shareholders, directors, agents, officers, employees, contractors, sublessees, successors and/or assigns be entitled to recover from Subtenant (or otherwise be indemnified by Subtenant) for lost revenues, lost profit or other consequential, special or punitive damages arising in connection with this Sublease for any reason. In the event of any assignment or transfer of the Sublandlord’s interest under this Sublease, which assignment or transfer may occur at any time during the Term in Sublandlord’s sole discretion, upon assuming in writing signed by the successor to Sublandlord relieving Sublandlord of all obligations under the Master Lease, Sublandlord shall be and hereby is entirely relieved of all covenants and obligations of Sublandlord hereunder accruing subsequent to the date of the transfer and it shall be deemed and construed, without further agreement between the parties hereto, provided that any transferee has assumed and shall carry out all covenants and obligations thereafter to be performed by Sublandlord hereunder. Sublandlord may transfer and deliver any then existing Security Deposit to the transferee of Sublandlord’s interest under this Sublease, and upon acknowledgment by the transferee, Sublandlord shall be discharged from any further liability with respect thereto.
(b)    Sublandlord Default. Sublandlord shall be in default hereunder only if Sublandlord has not commenced and pursued with reasonable diligence the cure of any failure of Sublandlord to meet its obligations hereunder within twenty (20) business days after the receipt by Sublandlord of written notice from Subtenant. In no event shall Subtenant have the right to terminate or rescind this Sublease as a result of Sublandlord’s default as to any covenant or agreement contained in this Sublease. Subtenant hereby waives such remedies of termination and rescission and hereby agrees that Subtenant’s remedies for default hereunder and for breach of any promise or inducement shall be limited to a suit for damages and/or injunction.
13.Attorneys’ Fees. If Sublandlord or Subtenant brings an action to enforce the  terms hereof or to declare rights hereunder, the prevailing party who recovers substantially all of the damages, equitable relief or other remedy sought in a final, unappealable action shall be entitled to receive from the other party its costs associated therewith, including, without limitation, reasonable attorneys’ fees and costs from the other party. Without limiting the generality of the foregoing, if Sublandlord utilizes the services of an attorney for the purpose of collecting any Rent due and unpaid by Subtenant or in connection with any other breach of this Sublease by Subtenant, Subtenant agrees to pay Sublandlord reasonable actual attorneys’ fees as determined by Sublandlord for such services, irrespective of whether any legal action may be commenced or filed by Sublandlord.
14.Delivery of Possession.
8

EXHIBIT 10.1

(a)    Generally. Sublandlord shall deliver, and Subtenant shall accept, possession of the Subleased Premises in broom clean condition, but otherwise in its “AS IS” condition as the Subleased Premises exists on the Effective Date. Sublandlord represents and warrants to Subtenant that to Sublandlord’s actual knowledge the Building systems (including HVAC, electrical, mechanical and plumbing) serving the Subleased Premises are in good working order and repair and have a useful life for at least the length of the Term. The current rate for overtime HVAC is $2.00 per hour per heat pump serving the Subleased Premises with a minimum of $30.00. Sublandlord shall have no obligation to furnish, render or supply any work, labor, services, materials, furniture, fixtures, equipment other than the FF&E, decorations or other items to make the Subleased Premises ready or suitable for Subtenant’s occupancy. In entering into this Sublease, Subtenant has relied solely on such investigations, examinations and inspections as Subtenant has chosen to make or has made and has not relied on any representation or warranty concerning the Subleased Premises or the Building, except as expressly set forth in this Sublease. Subtenant acknowledges that Sublandlord has afforded Subtenant the opportunity for full and complete investigations, examinations and inspections of the Subleased Premises and the common areas of the Building. Subtenant acknowledges that it  is not authorized to make or do any alterations or improvements in or to the Subleased Premises except as permitted by the provisions of this Sublease and the Master Lease and that upon termination of this Sublease, Subtenant shall, subject to the terms of this Sublease, deliver the Subleased Premises to Sublandlord in the same condition as the Subleased Premises were at the commencement of the Term, reasonable wear and tear excepted and damage by casualty, Landlord and/or Sublandlord excepted. Subtenant acknowledges that Subtenant shall, at Landlord’s election, provided such election is made at the time of approval of the same if and to the extent that Landlord agrees to the same in the Consent to this Sublease, remove from the Subleased Premises some or all of the Subtenant Improvements (defined below) constructed therein by Subtenant. Additionally, at Subtenant’s cost, Subtenant will, subject to and in accordance with the terms of this Sublease, remove all new telecommunications and data cabling installed by or for the benefit of Subtenant following the Effective Date of this Sublease; provided, however, in the event that Subtenant fails to surrender possession of the Subleased Premises upon the expiration or earlier termination of this Sublease, then Subtenant shall be responsible for the removal of all telecommunications and data cabling located in the Subleased Premises if and to the extent required under the Master Lease or by Master Landlord.
(b)    Subtenant’s Improvements; Removal and Restoration.
(i)    Generally. If Subtenant desires to construct improvements within the Subleased Premises (“Subtenant Improvements”), all Subtenant Improvements shall be carried out in accordance with the applicable provisions of the Master Lease. Sublandlord will have the right to approve the plans and specifications for any proposed Subtenant Improvements, as well as any contractors whom Subtenant proposes to retain to perform such work, which approval shall not be unreasonably withheld, conditioned or delayed by Sublandlord. Subtenant will submit all such information for Sublandlord’s review and written approval prior to commencement of any such work; Sublandlord will promptly upon receipt submit such plans to Landlord for review and approval. Subtenant will be responsible for any fee or cost imposed  only by Landlord and as specifically set forth in the Master Lease in connection with any review or approval of Subtenant Improvements which Subtenant proposes to construct, regardless of whether such work is approved by Landlord or Sublandlord. Sublandlord shall not charge Subtenant for any processing, supervision, oversight or management fee associated with any Subtenant Improvements, provided Subtenant will remain responsible for any similar costs and/or construction supervision/management fees imposed by Landlord. Subtenant expressly acknowledges that so long as Subtenant is not in Default only Landlord may require Subtenant to remove some or all of the Subtenant Improvements at the expiration or sooner termination of the Term in accordance with the provisions of the Master Lease as incorporated herein by reference and provided such election is made at the time of approval of the same if and to the extent that Landlord agrees to the same in the Consent to this Sublease. Promptly following the completion of any Subtenant Improvements or subsequent alterations or additions by or on behalf of Subtenant, Subtenant will deliver to Sublandlord a reproducible copy of “as built” drawings of such work together with a CAD file of the “as-built” drawings in the then-current version of AutoCad. Sublandlord is entering into this Sublease with the understanding that Subtenant intends to construct a corporate briefing center/training room within the Subleased Premises, which construction shall be in accordance with the terms and conditions of this Sublease and the Master Lease, and will consent so long as Landlord approves of the same and will use commercially reasonable efforts to work with Subtenant to obtain, prior to mutual execution of this Sublease, approval of the same by Landlord.
(ii)    Code-Required Work. If the performance of any Subtenant Improvements or other work by Subtenant within the Subleased Premises “triggers” a requirement for code-related upgrades to or improvements of any portion of the Building, Subtenant shall be responsible for the cost of such code-required upgrade or improvements.
9

EXHIBIT 10.1

(iii)    Restoration. Subtenant shall be responsible for any required removal/restoration of all Subtenant Improvements (only if and to the extent required by Landlord at the time of approval of the Subtenant Improvements if and to the extent that Landlord agrees to the same in the Consent) in accordance with the terms of the Master Lease, including without limitation those requirements set forth in Articles 7 and 26 of the Original Lease.
15.Surrender; Holding Over.
(a)    Subtenant shall be responsible for all restoration and removal obligations relating to the Subleased Premises if and to the extent required by Landlord; provided, however, that Subtenant shall not be liable or responsible for removing any alterations or improvements installed by or on behalf of Sublandlord prior to the Commencement Date. Subtenant will surrender the Subleased Premises to Sublandlord upon the expiration or sooner termination of this Sublease in accordance with the terms of the Master Lease, in broom-clean condition, free of Subtenant’s personal property, furniture, fixtures and equipment and the FF&E (subject to the terms of Section 19 below) located in the Subleased Premises, with any damage caused by Subtenant’s removal of such items repaired to Sublandlord’s reasonable satisfaction and at Subtenant’s sole cost and expense.
(b)    If Subtenant fails to surrender the Subleased Premises at the expiration or earlier termination of this Sublease, occupancy of the Subleased Premises after the termination or expiration shall be that of a tenancy at sufferance. Subtenant’s occupancy of the Subleased Premises during the holdover shall be subject to all the terms and provisions of this Sublease and Subtenant shall pay an amount (on a per month basis without reduction for partial months during the holdover) equal to 150% of the sum of the Base Rent and Additional Rent due for the period immediately preceding the holdover. No holdover by Subtenant or payment by Subtenant after the expiration or early termination of this Sublease shall be construed to extend the Term or prevent Sublandlord from immediate recovery of possession of the Subleased Premises by summary proceedings or otherwise. In addition to the payment of the amounts provided above,  if Sublandlord is unable to deliver possession of the Subleased Premises to a new subtenant or to Landlord, as the case may be, or to perform improvements for a new subtenant, as a result of Subtenant’s holdover, Subtenant shall be liable to Sublandlord for all damages, including, without limitation, consequential damages, that Sublandlord suffers from the holdover; Subtenant expressly acknowledges that such damages may include all of the holdover rent charged by Landlord under the Master Lease as a result of Subtenant’s holdover, which Master Lease holdover rent may apply to the entire Master Lease Premises.
16.Parking. During the Term and subject to the terms of the Master Lease, Subtenant shall be allocated eighteen (18) parking spaces on a must-take basis. Subtenant shall be responsible for the costs associated with such parking spaces at the Building’s prevailing monthly rate and shall pay the same directly to Landlord. Subtenant shall have the right to directly request  additional  parking  spaces from Landlord. The current rate for each parking space is $375.00.
17.Signage. Subject to the terms of the Master Lease and Landlord’s approval, Subtenant, at Subtenant’s sole cost, shall have the right to Building directory signage and Building standard signage at the entrance to the Subleased Premises.
18.Notices. Any notice by either party to the other required, permitted or provided for herein shall be valid only if in writing and shall be deemed to be duly given only if (a) delivered personally, or (b) sent by means of Federal Express, UPS Next Day Air or another reputable express mail delivery service guaranteeing next day delivery, or (c) sent by United States certified or registered mail, return receipt requested, addressed: (i) if to Sublandlord, at the following addresses:
Oracle America, Inc. 
c/o Oracle Corporation 1001 Sunset Boulevard 
Rocklin, California 95765 
Attn:    Lease Administration
with a copy to:
Oracle America, Inc.
c/o Oracle Corporation 500 Oracle Parkway Box 5OP7
Redwood Shores, California 94065
Attn:    Legal Department
and (ii) if to Subtenant, at the following address:
Pegasystems Inc.
One Rogers Street
Cambridge, Massachusetts 02142
Attn:    General Counsel
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EXHIBIT 10.1

with a copy to:
Pegasystems Inc. One Rogers Street
Cambridge, Massachusetts 02142
Attn:    Vice President of Real Estate and Facilities
or at such other address for either party as that party may designate by notice to the other. A notice shall be deemed given and effective, if delivered personally, upon hand delivery thereof (unless such delivery takes place after hours or on a holiday or weekend, in which event the notice shall be deemed given on the next succeeding business day), if sent via overnight courier, on the business day next succeeding delivery to the courier, and if mailed by United States certified or registered mail, three (3) business days following such mailing in accordance with this Section.
19.FF&E. Subject to the terms of this Section 19, effective as of the Commencement Date (the “FF&E Transfer Date”) all of Sublandlord’s right, title and interest in and to the existing fixtures, equipment and modular and office furniture located in the Subleased Premises and described in more particular detail on Exhibit C attached hereto, as well as all equipment and data cabling associated therewith (collectively, the “FF&E”), shall automatically be transferred to Subtenant. Sublandlord shall deliver the FF&E in good working order and Subtenant shall accept the FF&E in such current condition without any warranty of fitness from Sublandlord (Subtenant expressly acknowledges that no warranty is made by Sublandlord with respect to the condition of any cabling currently located in or serving the Subleased Premises). For purposes of documenting the current condition of the FF&E, Subtenant may, prior to the Commencement Date, conduct a walk-through of the Subleased Premises in order to inventory items of damage or disrepair and shall provide good faith corrective comments to the inventory attached to Exhibit C in writing to Sublandlord within fifteen (15) days following the Effective Date of this Sublease, and after the expiration of such fifteen (15) day period, Subtenant shall be deemed to have approved and accepted the FF&E. The FF&E shall be transferred to Subtenant on an “as is” basis with no representation or warranty of any kind from, and no recourse against, Sublandlord; provided, however, that Sublandlord represents and warrants as of the FF&E Transfer Date that it owns all of the FF&E free and clear of all liens and encumbrances and has the authority to so transfer the FF&E. Subtenant shall be solely responsible for the proper removal of the FF&E from the Subleased Premises and the Building in accordance with the  terms and provisions of the Master Lease. The transfer of ownership of the FF&E shall occur automatically on the FF&E Transfer Date and this Sublease shall constitute a bill of sale evidencing the transfer of the FF&E on the FF&E Transfer Date. Notwithstanding the foregoing provisions of this Section 19 to the contrary, if during the Term Subtenant is in Default hereunder and if Sublandlord terminates Subtenant’s rights to possess the Subleased Premises due to the applicable Default, then at Sublandlord’s election, the prior transfer of all of Sublandlord’s right, title and interest in and to the FF&E shall be voidable by Sublandlord upon written notice to such effect delivered to Subtenant. If Sublandlord so elects to void such transfer, then Sublandlord shall provide notice of such election to Subtenant. In such event, (a) prior to or promptly following the expiration or earlier termination of this Sublease, Sublandlord shall conduct a walk-through of the Subleased Premises to catalog any items of damage, disrepair, misuse or loss among the FF&E (reasonable wear and tear excepted), and (b) Subtenant shall be responsible, at Subtenant’s sole cost and expense, for curing any such items (including, with respect to loss, replacing any lost item with a substantially similar new item reasonably acceptable to Sublandlord).
20.Brokers. Subtenant represents that it has dealt directly with and only with T3 Advisors (“Subtenant’s Broker”), as a broker in connection with this Sublease. Sublandlord represents that it has dealt directly with and only with Avison Young (“Sublandlord’s Broker”), as a broker in connection with this Sublease. Sublandlord and Subtenant shall indemnify and hold each other harmless from all claims of any brokers other than Subtenant’s Broker and Sublandlord’s Broker claiming to have represented Sublandlord or Subtenant in connection with this Sublease. Subtenant and Sublandlord agree that Subtenant’s Broker and Sublandlord’s Broker shall be paid commissions by Sublandlord in connection with this Sublease pursuant to a separate agreement.
21.Complete Agreement. There are no representations, warranties, agreements, arrangements or understandings, oral or written, between the parties or their representatives relating to the subject matter of this Sublease which are not fully expressed in  this Sublease. This Sublease cannot be changed or terminated nor may any of its provisions be waived orally or in any manner other than by a written agreement executed by both parties.
22.Interpretation. Irrespective of the place of execution or performance, this  Sublease shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts. If any provision of this Sublease or the application thereof to any person or circumstance shall, for any reason and to any extent, be invalid or unenforceable, the remainder of this Sublease and the application of that provision to other persons or circumstances shall not be affected but rather shall be enforced to the extent permitted by law. The table of contents, captions, headings and titles, if any, in this Sublease are solely for convenience of reference and shall not affect its interpretation. This Sublease shall be construed without regard to any 
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EXHIBIT 10.1

presumption or other rule requiring construction against the party causing this Sublease or any part thereof to be drafted. If any words or phrases in this Sublease shall have been stricken out  or otherwise eliminated, whether or not any other words or phrases have been added, this Sublease shall be construed as if the words or phrases so stricken out or otherwise eliminated were never included in this Sublease and no implication or inference shall be drawn from the fact that said words or phrases were so stricken out or otherwise eliminated. Each covenant, agreement, obligation or other provision of this Sublease shall be deemed and construed as a separate and independent covenant of the party bound by, undertaking or making same, not dependent on any other provision of this Sublease unless otherwise expressly provided.  All terms and words used in this Sublease, regardless of the number or gender in which they are used, shall be deemed to include any other number and any other gender as the context may require. The word “person” as used in this Sublease shall mean a natural person or persons, a partnership, a corporation or any other form of business or legal association or entity.
23.USA Patriot Act Disclosures. To the best of Subtenant’s knowledge, Subtenant is currently in compliance with and shall at all times during the Term remain in compliance with the regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated and Blocked Persons List) and any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action relating thereto. Notwithstanding anything contained herein to the contrary, for the purposes of this Section 23, such statement shall not include (x) any shareholder of Subtenant, (y) any holder of a direct or indirect interest in a publicly traded company whose shares are listed and traded on a United States national stock exchange or (z) any limited partner, unit holder or shareholder owning an interest of five percent (5%) or less in Subtenant or the holder of any direct or indirect interest in Subtenant.
24.Authority of Parties. Each party represents and warrants (a) that it is a valid existing corporation or limited liability company qualified to do business in the Commonwealth of Massachusetts and (b) that it has the power and authority to execute and deliver this Sublease and perform its obligations thereunder.
25.Time of the Essence. Time is of the essence of each provision of this Sublease.
26.Master Lease. Sublandlord is not now, and as of the Commencement Date will  not be, in default or breach of any of the provisions of the Master and Sublandlord has no knowledge of any claim by Landlord that Sublandlord is in default or breach of any of the provisions of the Master Lease. Sublandlord shall comply with the terms of the Master Lease, except to the extent such non-compliance is due to the act or omissions of Subtenant or Subtenant’s default under this Sublease, and shall promptly upon receipt provide to Subtenant all notices with respect to the Subleased Premises it receives from Landlord. From and after the Effective Date, Sublandlord shall not take or permit to be taken, any action which violates any provisions of the Master Lease or would cause the Master Lease to be voluntarily canceled, terminated or forfeited. Sublandlord will not (a) terminate the Master Lease, except in  connection with the casualty or condemnation provisions or in connection with any express termination right set forth in the Master Lease or (b) modify or amend the Master Lease during the Term of this Sublease in a manner that would materially and adversely affect this Sublease or Subtenant’s rights and privileges under this Sublease.
27.Covenant of Quiet Enjoyment. Sublandlord covenants that for so long as Subtenant makes timely payment of the Rent due under this Sublease and timely performs all of Subtenant’s other obligations under this Sublease, Subtenant may peaceably and quietly have, hold and enjoy the Subleased Premises without molestation or interference from Sublandlord or anyone claiming by, through or under Sublandlord throughout the Term (until and unless terminated) of this Sublease, subject to the other provisions of this Sublease and the Master Lease.
28.Counterparts. This Sublease may be executed in multiple counterparts, each of which is deemed an original but which together constitute one and the same instrument. This Sublease shall be fully executed when each party whose signature is required has signed and delivered to each of the parties at least one counterpart, even though no single counterpart contains the signatures of all of the parties hereto. This Sublease may be executed in so-called “pdf” format and each party has the right to rely upon a pdf counterpart of this Sublease signed by the other party to the same extent as if such party had received an original counterpart.
[Signatures appear on the following page(s)]

12

EXHIBIT 10.1

IN WITNESS WHEREOF, the parties hereto hereby execute this Sublease as of the Effective Date.

									
	SUBLANDLORD:	ORACLE AMERICA, INC.,
			a Delaware corporation
			
	By:	/s/ Michelle Myer
	Print Name:	Michelle Myer
	Title:	Vice President, Americas Real Estate & Facilities
			
			
	SUBTENANT:	PEGASYSTEMS INC.,
			a Massachusetts corporation
			
	By:	/s/ Ken Stillwell
	Print Name:	Ken Stillwell
	Title:	COO and CFO

13

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