Document:

Exhibit 10.2

 
Exhibit 10.2

 
OWENS & MINOR, INC. 
MANAGEMENT EQUITY OWNERSHIP PROGRAM 
 
SECTION I. DEFINITIONS 
 
1.1 Annual Bonus means the cash portion of any Incentive Award. 
 
1.2 Annual Incentive Plan means the Company’s Annual Incentive Plan approved by the shareholders of the Company
on April 30, 1991 or any successor plan. 
 
1.3 Base Salary
means the annual salary paid by the Company to a Participant for performance of his job excluding any benefits, Incentive Awards, bonuses or any component of pay other than the base amount. 
 
1.4 Board means the Board of Directors of the Company. 
 
1.5 Business Day means any day on which the New York Stock Exchange is
open and the Common Stock is traded. 
 
1.6 Cause means
conduct of the Participant amounting to (i) fraud or dishonesty against the Company, (ii) willful misconduct, repeated refusal to follow the reasonable directions of the Company’s management or knowing violation of law in the performance of the
duties of Participant’s employment with the Company, (iii) violation of the Company’s standards of conduct or other Company policies, (iv) a conviction or plea of guilty or nolo contendere to a felony or a crime involving dishonesty or (v)
a breach or violation of the terms of any employment, confidentiality, non-compete or other agreement to which the Participant and the Company are party. The determination of whether the Company has or had Cause to terminate a Participant’s
employment shall be made by the Committee in its sole and absolute discretion. 
 
1.7 Change in Control means that situation when (i) any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (other than the
Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any Company owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of
stock of the Company), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company’s
then outstanding securities; (ii) during any period of two consecutive years (not including any period prior to the effective date of this Program), individuals who at the beginning of such period constitute the Board, and any new director (other
than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in clause (i), (ii) or (iv) of this Section) whose election by the Board or nomination for election by the Company’s

 

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stockholders was approved by a
vote of a majority of the directors then still in office who either (x) were directors at the beginning of such period or (y) were so elected or nominated with such approval, cease for any reason to constitute at least a majority of the Board; (iii)
the stockholders of the Company approve a merger or consolidation of the Company with any other Company, other than (x) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation or (y) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no “person” (as hereinabove defined) acquires more than 20% of the
combined voting power of the Company’s then outstanding securities; or (iv) the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially
all of the Company’s assets; provided, however, that Company securities acquired directly from the Company shall be disregarded for this purpose. 
 
1.8 Committee means the Compensation & Benefits Committee of the Board or any successor committee. 
 
1.9 Common Stock means the Common Stock, $2.00 par value, of Owens
& Minor, Inc. 
 
1.10 Company means Owens & Minor,
Inc., including its Subsidiaries. 
 
1.11 Disability means
any physical or mental injury or disease of a permanent nature which renders a Participant incapable of meeting the requirements of the employment performed by such Participant immediately prior to the commencement of such disability. The
determination of whether a Participant is disabled shall be made by the Committee in its sole and absolute discretion. 
 
1.12 Effective Date shall have the meaning set forth in subsection 2.3 hereof. 
 
1.13 Equity Ownership Dividend means the Tier One Equity Ownership Dividend and/or the Tier Two Equity
Ownership Dividend, as applicable. 
 
1.14 Fair Market
Value means, as of any given date, the closing price of a share of Common Stock as reported on the New York Stock Exchange composite tape as of such date, or if the Common Stock was not traded on the New York Stock Exchange on such day, then on
the next preceding day that the Common Stock was traded on such exchange, all as reported by such source as the Administrator may select. 
 
1.15 Fourth Quarter Fair Market Value means the greater of (i) the average Fair Market Value of a share of Common Stock for all trading days during
the fourth quarter of the calendar year for which the value is calculated or (ii) the Fair Market Value on the last day in such fourth quarter that a Participant is able to purchase shares of Common Stock under the “Section 16 window
period” policy set forth in the Company’s Section 16 Compliance Program. 
 

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1.16 Incentive
Award means an award under the Annual Incentive Plan (or any successor plan) approved by the Committee which entitles the recipient to shares of Common Stock, cash or a combination of Common Stock and cash. 
 
1.17 Interim Stock Ownership Requirement shall have the meaning
specified in subsection 3.2 hereof. 
 
1.18 Own or
Owns means, with respect to shares of Common Stock, shares of which the Participant is the beneficial owner within the meaning of Rule 16a-1(2) under the Securities Exchange Act of 1934, as amended, but excluding any options to purchase
shares of Common Stock. Shares of Common Stock of which a Participant is the beneficial owner will include, by way of example, (i) shares, whether registered in the owner’s name or in nominee name, which are owned by the Participant, his spouse
or any member of his immediate family living in his household, (ii) shares held by the Participant in or through any benefit plan of the Company, (iii) shares of restricted stock (including Restricted Stock awarded under this Program) and (iv) in
certain cases, shares owned by a trust of which the Participant, his spouse or an immediate family member living in his household is a trustee or beneficiary. 
 
1.19 Participant means a Teammate designated in subsection 2.5 hereof or selected to participate in the Program by the Committee pursuant to
subsection 2.5 hereof. 
 
1.20 Program means the
Owens & Minor, Inc. Management Equity Ownership Program, as it may be amended from time to time. 
 
1.21 Restricted Period shall mean the period of time specified in this Program with respect to particular grants of Restricted Stock during which the restrictions imposed by Section VI
hereof shall apply. 
 
1.22 Restricted Stock means
shares of Common Stock which are awarded by the Company under this Program subject to forfeiture, restrictions on transfer and such other restrictions as are set forth in Section VI hereof or as the Committee may determine in accordance with the
provisions of Section VI of this Program. 
 
1.23 Retirement
means retirement from the Company within the meaning of the Company’s Supplemental Executive Retirement Plan or any successor thereto. 
 
1.24 Stock Purchase Period means (i) with respect to any Participant whose participation in the Program begins on the Effective Date and who
has completed at least one year of service with the Company as of the Effective Date, the period of time beginning on the Effective Date and ending on December 31 of the fifth full calendar year thereafter or (ii) with respect to any Participant
whose participation in the Program begins after the Effective Date (in the first, second or third quarter of a calendar year) or who has completed less than one year of service with the Company as of the Effective Date, the period of time beginning
on the date the Participant first becomes a Participant under the Program and ending on December 31 of the sixth full calendar 
 

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year thereafter or (iii) with
respect to any Participant whose participation in the Program begins after the Effective Date (in the fourth quarter of a calendar year), the period of time beginning on the date the Participant first becomes a Participant under the Program and
ending on December 31st of the seventh full calendar year thereafter. 
 
1.25 Subsidiary means a corporation of which more than 50% of
the total combined voting power of all classes of stock entitled to vote is owned, directly or indirectly, by Owens & Minor, Inc. 
 
1.26 Teammate means any person employed by the Company. 
 
1.27 Tier One Equity Ownership Dividend shall have the meaning specified in Section IV(a) hereof. 
 
1.28 Tier One Participant shall have the meaning specified in
Section 3.1 hereof. 
 
1.29 Tier Two Equity
Ownership Dividend shall have the meaning specified in Section IV(b) hereof. 
 
1.30 Tier Two Participant shall have the meaning specified in Section 3.1. hereof. 
 
1.31 Total Stock Ownership Requirement shall have the meaning specified in subsection 3.1 hereof. 
 
Unless the context clearly requires otherwise, the masculine pronoun whenever
used shall include the feminine and neuter pronouns, the singular shall include the plural and the plural shall include the singular. 
 
SECTION II. GENERAL TERMS 
 
2.1 Purpose of the Program. The purpose of the Program is to promote the interests of the Company and its shareholders by increasing the ownership
of Common Stock by certain key management level Teammates to more closely align their financial rewards with the performance of the Company and to motivate these Teammates to manage the Company for long-term growth and profitability. 
 
2.2 Administration of the Program. The Program shall be administered by
the Committee which shall have exclusive and absolute authority and discretion to interpret the Program, to establish and modify rules for the administration of the Program, to impose such conditions and restrictions as it determines appropriate
with respect to the Program and to take such other actions and make such other determinations as it may deem necessary or advisable for the implementation and administration of the Program. Notwithstanding any provision in the Program to the
contrary, the Committee shall have the authority to waive or modify any stock ownership requirement set forth in Section 3 of the Program; provided that any such modification or waiver is applied uniformly to all Participants. All actions taken and
all interpretations and 
 

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determinations made by the
Committee in good faith shall be final and binding upon the Participants, the Company and all other interested persons. No member of the Committee shall be personally liable for any action, determination or interpretation made in good faith with
respect to the Program or any award of Restricted Stock hereunder. 
 
2.3 Effective Date of the Program. The Program is effective on July 1, 1997 (the “Effective Date”) and will continue in effect for a period of ten years or until sooner terminated by the Board. 
 
2.4 Scope of the Program. The Program is adopted under and is part of
the Annual Incentive Plan and is subject in all respects to the provisions of the Annual Incentive Plan. Upon expiration of the Annual Incentive Plan, unless determined otherwise by the Board, the Program will continue under any plan that succeeds
or replaces the Annual Incentive Plan and will be subject to all provisions of such successor or replacement plan. All shares of Restricted Stock issued under the Program shall be provided from shares of Common Stock authorized under the Annual
Incentive Plan or such other plan as succeeds or replaces the Annual Incentive Plan. In the event there are insufficient shares of Common Stock authorized under the Annual Incentive Plan or any successor or replacement plan to make the grants of
Restricted Stock contemplated by this Program, then no such grants of Restricted Stock shall be made under this Program. 
 
2.5 Eligibility. Participants in the Program shall be selected by the Committee from among those management level Teammates who, in the opinion of
the Committee, are in a position to contribute materially to the Company’s growth and development and to its long-term financial success. The Chief Executive Officer, the President and any Executive Vice President, Senior Vice President, [Group
Vice President], Vice President and Regional Vice President of Owens & Minor, Inc. (or, in each case, the same positions bearing different titles) shall automatically be Participants in the Program effective on the later of the Effective Date or
the date on which he is appointed to or employed in such position. 
 
SECTION III. COMMON STOCK OWNERSHIP REQUIREMENTS 
 
3.1 Five-Year Ownership Requirement. Each Participant will be required to own shares of Common Stock the Fourth Quarter Fair Market Value of which as of the last day of the Participant’s Stock Purchase Period and each
December 31 thereafter during the term of this Program is not less than the applicable ownership multiple designated in the table below (as such ownership multiple may be changed by the Committee) multiplied by the Participant’s then-current
Base Salary (the “Total Stock Ownership Requirement”). 
 

	 	  	 Position

	  	 Ownership Multiple of Base Salary

	
	 I.
	  	 Tier One Participants (each, a “Tier One Participant”)
	  	 
	
	 	  	 Chief Executive Officer
	  	 4.0X

	
	 	  	 President
	  	 3.0X

 

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	 	 	 Executive Vice President
	 	 2.0X

	
	 	 	 Senior Vice President
	 	 1.5X

	
	 	 	 Vice President, Group Vice President, Regional Vice President
	 	 1.0X

	
	 	 	 Other Management Level Teammates who are Participants
	 	 As designated by the Committee

	
	 II.
	 	 Tier Two Participants (each, a “Tier Two Participant”)
	 	 
	
	 	 	 Management Level Teammates designated by the Committee
	 	 0.5X

 
In the event a
Participant is promoted to a higher position with a higher ownership multiple during the Participant’s Stock Purchase Period a new Stock Purchase Period shall commence for such Participant effective January 1 following the date of promotion
with an initial Interim Ownership Requirement of 10% and increasing ownership requirements thereafter in accordance with Section 3.2A; provided however that, with respect to the calendar year in which the promotion is made, the Participant shall
continue to be required to meet the otherwise applicable Interim Stock Ownership Requirement or Total Stock Ownership Requirement based on the Participant’s relevant ownership multiple and Base Salary immediately prior to the date of promotion.

 
3.2 Interim Ownership Requirement. As of each December 31
during a Participant’s Stock Purchase Period, such Participant will be required to own shares of Common Stock the Fourth Quarter Fair Market Value of which as of each such date is not less than the respective percentages designated in the table
below of the Participant’s Total Stock Ownership Requirement (the “Interim Stock Ownership Requirement”). 
 

	 	A.	 	Participants with at Least 12 Months of Service with the Company as of the Effective Date and Whose Participation Begins on the Effective Date

 

	 December 31

	  	 Percentage of Total Stock
 Ownership Requirement

	 1st
	  	   10%

	 2nd
	  	   25%

	 3rd
	  	   45%

	 4th
	  	   65%

	 5th
	  	   85%

	 6th
	  	 100%

 

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	 	B.	 	Participants with Less Than 12 Months of Service with the Company as of the Effective Date or Whose Participation Begins after the Effective Date (in the 1st, 2nd or 3rd Quarter of a Calendar Year)

 

	 December 31

	  	 Percentage of Total Stock Ownership Requirement

	 1st
	  	 No Requirement

	 2nd
	  	   10%

	 3rd
	  	   25%

	 4th
	  	   45%

	 5th
	  	   65%

	 6th
	  	   85%

	 7th
	  	 100%

 

	 	C.	 	Participants Whose Participation Begins after the Effective Date (in the 4th Quarter of a Calendar Year) 

 

	 December 31

	  	 Percentage of Total Stock Ownership Requirement

	 1st
	  	 No Requirement

	 2nd
	  	     5%

	 3rd
	  	   10%

	 4th
	  	   25%

	 5th
	  	   45%

	 6th
	  	   65%

	 7th
	  	   85%

	 8th
	  	 100%

 
3.3 Annual Incentive
Deferrals. Not later than 30 days after a Participant first becomes a Participant in the Program and not later than January 1 of each full calendar year thereafter during a Participant’s Stock Purchase Period, the Participant may make an
irrevocable election on a form provided by the Company to receive 25% or 50% of his Annual Bonus for performance during that calendar year, if any, in shares of Restricted Stock based upon the Fair Market Value of the Common Stock on the date the
Annual Bonus is awarded. The Restricted Period for any shares of Restricted Stock granted pursuant to this subsection 3.3 shall commence on the date the Annual Bonus is awarded and expire on the third January 2nd (or next succeeding Business Day)
thereafter. 
 
SECTION IV. RESTRICTED STOCK AWARDS

 
Equity Ownership
Dividends. 
 

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	 	(a)	 	Tier One Participants. Each Tier One Participant who, as of December 31 of any year during the term of this Program, achieves the applicable Interim Stock
Ownership Requirement or Total Stock Ownership Requirement as specified in subsections 3.1 and 3.2 hereof will receive an award of Restricted Stock equal to 10% of the Fourth Quarter Fair Market Value of all Common Stock owned by the Tier One
Participant up to the Total Stock Ownership Requirement (the “ Tier One Equity Ownership Dividend”), subject to such terms and conditions as may be prescribed by the Committee and the full and complete authority of the Committee to modify
the amount or eliminate the payment of Tier One Equity Ownership Dividends with respect to any calendar year and any Tier One Participant. Notwithstanding the foregoing, with respect to any Tier One Participant who has achieved his or her Total
Stock Ownership Requirement, effective January 1, 2001, the Tier One Equity Ownership Dividend shall be reduced to 5% of the Fourth Quarter Fair Market Value of all Common Stock owned by the Tier One Participant up to the Total Stock Ownership
Requirement for each year subsequent to the year in which such Total Stock Ownership Requirement was initially achieved. 

 

	 	(b)	 	Tier Two Participants. Each Tier Two Participant who, as of December 31 of any year during the term of this Program, achieves the applicable Interim Stock
Ownership Requirement or Total Stock Ownership Requirement as specified in subsections 3.1 and 3.2 hereof will receive an award of either 100, 150 or 200 shares of Restricted Stock (the “ Tier Two Equity Ownership Dividend”), as determined
and designated by the Committee for each Tier Two Participant and subject to such terms and conditions as may be prescribed by the Committee and the full and complete authority of the Committee to modify the amount or eliminate the payment of the
Tier Two Equity Ownership Dividend with respect to any calendar year and any Tier Two Participant. 

 

	 	(c)	 	Each award of an Equity Ownership Dividend hereunder will be determined based on the Fourth Quarter Fair Market Value of the Common Stock on December 31 of the year
in which the Interim Stock Ownership Requirement or the Total Stock Ownership Requirement, as the case may be, is achieved. Equity Ownership Dividends will be granted upon approval by the Committee not later than March 1 of the year following
achievement of the applicable stock ownership requirement. The Restricted Period for any shares of Restricted Stock awarded pursuant to this Section IV shall commence on the date of grant and expire on the fifth January 2nd (or next succeeding
Business Day) thereafter. 

 
SECTION V. FAILURE
TO ACHIEVE STOCK OWNERSHIP REQUIREMENTS 
 
Each Tier One Participant who, as of the second December 31 during the Tier One Participant’s Stock Purchase Period and each December 31 thereafter during the term of this Program, fails to achieve the applicable Interim Stock
Ownership Requirement or Total Stock Ownership Requirement, will incur the following consequences: 
 
Consequences of Failure to Achieve 
 

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	 December 31

	  	 Stock Ownership Requirement

	 2nd
	  	 25% of Annual Bonus*, if any, will be paid in Restricted Stock

	
	 3rd
	  	 50% of Annual Bonus*, if any, will be paid in Restricted Stock

	
	 4th
	  	 75% of Annual Bonus*, if any, will be paid in Restricted Stock

	
	 5th
	  	 100% of Annual Bonus*, if any, will be paid in Restricted Stock

	
	 6th
	  	 100% of Annual Bonus*, if any, will be paid in Restricted Stock and 50% of the following year’s Base Salary
increase, if any, will be paid in Restricted Stock

	
	 7th and thereafter
	  	 100% of Annual Bonus*, if any, will be paid in Restricted Stock and 100% of the following year’s Base Salary
increase, if any, will be paid in Restricted Stock

 

	 	*	 	In each instance, the percentage of Annual Bonus payable in Restricted Stock will be the greater of the applicable amount set forth above or the percentage elected
by the Tier One Participant pursuant to subsection 3.3 hereof 

 
The number of shares of Restricted Stock granted in lieu of cash payment of Annual Bonus or Base Salary increase will be determined based on the Fair Market Value of the Common Stock on the date the Annual Bonus or Base Salary
increase is awarded. The Restricted Period for any shares of Restricted Stock granted pursuant to this Section V in respect of Annual Bonus shall commence on the date the Annual Bonus is awarded and expire on the third January 2nd (or next
succeeding Business Day) thereafter. The Restricted Period for any shares of Restricted Stock granted pursuant to this Section V in respect of Base Salary increase shall be two years from the date of grant. 
 
This Section V shall not apply to Tier Two Participants who fail to achieve
their applicable ownership requirements hereunder. 
 
SECTION
VI. RESTRICTED STOCK 
 
6.1 Terms of Restricted
Stock. Until the expiration of the Restricted Period or the lapse of restrictions as provided in subsection 6.4 or 6.5 hereof, shares of Restricted Stock issued to Participants under the Program shall be subject to the following restrictions and
any additional restrictions that the Committee in its sole discretion, may determine; provided, however, the Participant shall have beneficial ownership of shares of Restricted Stock, including the right to receive cash dividends on and the right to
vote shares of Restricted Stock: 
 
(i)
Participants shall not be entitled to receive the certificate or certificates representing shares of Restricted Stock; 
 
(ii) Shares of Restricted Stock may not be sold, transferred, assigned, pledged, conveyed, hypothecated or otherwise disposed of; and

 
(iii) Shares of Restricted Stock may be
forfeited immediately as provided in subsection 6.4. 
 

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Any stock dividends or other
shares of Company stock or other property issued in respect of Restricted Stock, including without limitation, shares issued in connection with stock splits and recapitalizations, will be subject to the same restrictions applicable to the Restricted
Stock. 
 
6.2 Custody of Shares of Restricted Stock. Any
certificates representing shares of Restricted Stock issued under the Program shall be issued in the Participant’s name but shall be held by the Company (or its transfer agent) during the Restricted Period. The Company shall serve as
attorney-in-fact for the Participant during the Restricted Period with full power and authority in the Participant’s name to assign and convey to the Company any shares of Restricted Stock held by the Company for such Participant if the
Participant forfeits the shares under the terms of the Restricted Stock. Each certificate representing shares of Restricted Stock may bear a legend referring to the Program and the risk of forfeiture of the shares and stating that such shares are
nontransferable until all restrictions have been satisfied and the legend has been removed. 
 
6.3 Distribution of Restricted Stock. If a Participant who receives shares of Restricted Stock under the Program remains in the continuous employment of the Company during the entire Restricted
Period and otherwise does not forfeit such shares pursuant to subsection 6.4 hereof, all restrictions applicable to the shares of Restricted Stock shall lapse upon expiration of the Restricted Period and a certificate or certificates representing
the shares of Common Stock that were granted to the Participant in the form of shares of Restricted Stock shall be delivered to the Participant. 
 
6.4 Forfeiture. 
 
(a) If a Participant’s employment is terminated before the expiration of the Restricted Period by reason of Retirement, Disability or
death of the Participant, subject to the authority of the Committee in its sole discretion to determine otherwise, all restrictions applicable to the shares of Restricted Stock held by the Company for the Participant shall immediately lapse on the
date the Participant’s employment is terminated and the certificate or certificates representing the shares of Common Stock upon which the restrictions have lapsed shall be delivered to the Participant (or in the event of the Participant’s
death, to his estate). If a Participant’s employment is terminated under this subsection (i) on or after December 31st but prior to the issuance of any Equity Ownership Dividend awarded for such year, subject to the authority of the Committee
in its sole discretion to determine otherwise, the Participant shall be entitled to receive the shares issuable in respect of any such Equity Ownership Dividend free of all applicable restrictions. 
 
(b) If a Participant’s employment is terminated before
the expiration of the Restricted Period by the Company without Cause, subject to the authority of the Committee in its sole discretion to determine otherwise, the number of shares of Restricted Stock held by the Company for the Participant shall be
reduced by the proportion of the Restricted Period 
 

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remaining after the
Participant’s termination of employment, the restrictions on the balance of such shares of Restricted Stock shall lapse on the date the Participant’s employment terminated and the certificate or certificates representing the shares of
Common Stock upon which the restrictions have lapsed shall be delivered to the Participant. If a Participant’s employment is terminated under this subsection (ii) on or after December 31st but prior to the issuance of any Equity Ownership
Dividend awarded for such year, subject to the authority of the Committee in its sole discretion to determine otherwise, the Participant shall not be entitled to receive any portion of the shares issuable in respect of any such Equity Ownership
Dividend. 
 
(c) If a Participant’s employment
is terminated before the expiration of the Restricted Period by the Company for Cause or by the Participant at any time, all shares of Restricted Stock held by the Company for the Participant shall be forfeited immediately and all rights of the
Participant to such shares shall terminate immediately without further obligation on the part of the Company. If a Participant’s employment is terminated under this subsection (iii) on or after December 31st but prior to the issuance of any
Equity Ownership Dividend awarded for such year, the Participant shall not be entitled to receive any of the shares issuable in respect of any such Equity Ownership Dividend. 
 
6.5 Change of Control. Upon any Change of Control, unless the Committee in its sole discretion determines otherwise
prior to the Change of Control, all restrictions applicable to shares of Restricted Stock shall immediately lapse and the certificate or certificates representing the shares of Common Stock that were granted to the Participants in the form of shares
of Restricted Stock shall be delivered to the Participants. 
 
6.6
Waiver of Restrictions. The Committee, in its sole discretion, may at any time waive any or all restrictions with respect to shares of Restricted Stock. 
 
SECTION VII. MISCELLANEOUS PROVISIONS 
 
7.1 Termination and Amendment. The Board at any time may amend or terminate the Program. Notwithstanding any expiration or termination of the
Program, unless otherwise determined by the Committee, the provisions relating to Restricted Stock contained in Section VI hereof shall continue to apply with respect to all shares of Restricted Stock outstanding as of the date of expiration or
termination. 
 
7.2 Withholding. Each Participant shall pay
to the Company any amount necessary to satisfy applicable federal, state or local tax withholding requirements attributable to an award of Restricted Stock under the Program, or upon the vesting of such Restricted Stock, promptly upon notification
of the amount due. Such amounts to be paid by the Participant, at the election of the Committee, may be withheld from the shares of Common Stock that otherwise would be distributed to such Participant pursuant to the Program. 
 
7.3 Legal and Other Requirements. The grant or distribution of shares
of Restricted Stock shall be subject to the condition that if at any time the Company determines in its discretion that the satisfaction of withholding tax or other tax liabilities, or the listing, registration or 
 

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qualification of any shares of
Common Stock upon any securities exchange or under and federal or state law, or the consent or approval of any regulatory body, is necessary or desirable as a condition of, or in connection with such grant or distribution, then in any such event,
such grant or distribution shall not be effective unless such liabilities have been satisfied or such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the
Company. 
 
7.4 Choice of Law. The Program, its validity,
interpretation and administration and the rights and obligations of all persons having an interest therein shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia, except to the extent that such laws may be
preempted by federal law. 
 
7.5 Adjustment Upon Changes in
Capitalization. In the event of a recapitalization, stock split, stock dividend, exchange, combination or reclassification of shares, merger, consolidation, reorganization or other change in or affecting the capital structure or capital stock of
the Company, the Board, upon recommendation of the Committee, may make appropriate adjustments in the number and kind of shares subject to outstanding Restricted Stock grants as it deems equitable to prevent dilution or enlargement of the rights of
Participants. 
 
7.6 Fractional Shares. The Company shall
not be required to issue or deliver any fractional share of Restricted Stock issuable under this Program but shall round each grant of shares of Restricted Stock hereunder up to the nearest whole share. 
 
7.7 No Employment Contract. The Program shall not confer upon any
Participant any right to continued employment by the Company nor shall the Program in any way interfere with the right of the Company to terminate the employment of any Participant at any time. 
 

12AMENDMENT #8 TO LEASE AGREEMENT

 
EXHIBIT 10.23

 
101 MAIN STREET 
CAMBRIDGE, MASSACHUSETTS 
 
AMENDMENT NO. 8 TO AGREEMENT OF LEASE 
 
Pegasystems Inc. 
 
This Amendment No. 8 to Agreement of Lease (this “Amendment”) is made as of July 31, 2002 by and between NOP
Riverfront LLC, a Delaware limited liability company, having an office at One Main Street, Cambridge, MA (hereinafter, “Landlord”) and Pegasystems Inc., a Massachusetts corporation, having an office at 101 Main Street, Cambridge,
Massachusetts 02142 (hereinafter, “Tenant”). 
 
Background 
 
Pursuant to
the provisions of that certain Lease dated as of February 26, 1993 between Riverfront Office Park Joint Venture, Landlord’s predecessor, and Tenant, as amended by Amendment No. 1 to Agreement of Lease dated as of August 17, 1994, Amendment No.
2 to Agreement of Lease dated as of February 28, 1997, Amendment No. 3 to Agreement of Lease dated as of March 31, 1998 (“Amendment No. 3”), Amendment No. 4 to Agreement of Lease dated as of September 9, 1998 (“Amendment No.
4”), Amendment No. 5 to Agreement of Lease dated as of November 30, 1998, Amendment No. 6 to Agreement of Lease dated as of June 30, 2000, and Amendment No. 7 to Agreement of Lease dated as of November 15, 2001 (as so amended, the
“Lease”), Tenant leases from Landlord and Landlord leases to Tenant certain premises containing 85,228 rentable square feet of office space (the “Demised Premises”) and 285 rentable square feet of storage space on
the second floor garage level and 100 rentable square feet of storage space on the penthouse floor (collectively, the “Storage Space”) in the building located at 101 Main Street, Cambridge, Massachusetts (the
“Building”). Capitalized terms used and not defined herein shall have the respective meanings ascribed to them in the Lease. 
 
Landlord and Tenant desire to enter into this Amendment No. 8 to extend the Term of the Lease for a period of approximately ten (10)
years, on the terms and conditions set forth herein. 
 
Agreement 
 
NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants contained herein, Landlord and Tenant hereby agree to modify and amend the Lease as follows: 
 
1.  Extension of Term. 
 
(a)  Extension.    The Term of the Lease is hereby extended to and including a new
Termination Date, which shall be May 31, 2013, subject to the terms set forth below. The period beginning on May 16, 2003 (the “Extension Term Commencement Date”) and ending on May 31, 2013 is hereinafter referred to as the
“First Extension Term.” 
 
(b)  Yearly Fixed Rent.    Effective as of the Extension Term Commencement Date, Section 1(19) of the Lease shall be amended to read in its entirety as follows: 
 
“(19) Yearly Fixed Rent: 
 
During the period commencing May 16, 2003
and ending on May 31, 2013: 
 
For Floors 5, 6, 7 and 12 (79,463 rentable square feet): 
 
Lease Year 1: $2,304,427 per annum ($29 per rentable square foot) 
Lease Year 2: $2,383,890 per annum ($30 per rentable square foot) 
Lease Year 3: $2,463,353 per annum ($31 per rentable square foot) 
Lease Year 4: $2,542,816 per annum ($32 per rentable square foot) 
Lease Year 5: $2,622,279 per annum ($33 per rentable square foot) 
Lease Year 6: $2,781,205 per annum ($35 per rentable square foot) 

Lease Year 7: $2,860,668 per annum ($36 per rentable square foot)

Lease Year 8: $3,019,594 per annum ($38 per rentable square foot) 
Lease Year 9: $3,178,520 per annum ($40 per rentable square foot) 
Lease Year 10: $3,337,446 per annum ($42 per rentable square foot) 
 
For Floor 1 (5,765 rentable square
feet): 
 
Lease Year 1:
$86,475 per annum ($15 per rentable square foot) 
Lease Year 2: $92,240 per annum ($16 per rentable square
foot) 
Lease Year 3: $98,005 per annum ($17 per rentable square foot) 
Lease Year 4: $103,770 per annum ($18 per rentable square foot) 
Lease Year 5: $109,535 per annum ($19 per rentable square foot) 
Lease Year 6: $121,065 per annum ($21 per rentable square foot) 
Lease Year 7: $126,830 per annum ($22 per rentable square foot) 
Lease Year 8: $138,360 per annum ($24 per rentable square foot) 
Lease Year 9: $149,890 per annum ($26 per rentable square foot) 
Lease Year 10: $161,420 per annum ($28 per rentable square foot) 
 
For the Storage Space (385 rentable
square feet): 
 
Lease Years
1 through 10: $4,620 per annum ($12 per rentable square foot) 
 
As used above, “Lease Year” shall mean each successive twelve (12) month period beginning on May 16, 2003 and each anniversary thereof, provided that the last Lease Year shall end on May 31, 2013.” 
 
(c)  Additional Rent.

 
(i)  Taxes.    Effective as of the Extension Term Commencement Date, Section 6.2 of the Lease (as previously amended) shall be amended by deleting the reference to the prior fiscal year and
substituting therefor a reference to the fiscal year ending “June 30, 2004.” 
 
(ii)  Operating Expenses.    Effective as of the Extension Term Commencement Date,
Section 6.3 of the Lease (as previously amended) shall be amended by deleting the reference to the prior calendar year and by substituting therefor a reference to the calendar year ending “December 31, 2003.” 
 
(iii)  Operating Expense
Provisions.    Effective as of the Extension Term Commencement Date, Section 6.4 on the attached Exhibit D shall replace Section 6.4 of the Lease (as previously amended). 
 
(d)  Condition of Demised
Premises and Storage Space.    With respect to the First Extension Term, the Demised Premises and the Storage Space shall be leased in their “as-is” condition without representation or warranty by Landlord. Landlord
shall not be required to perform any tenant improvement work in connection with Tenant’s occupancy of the Demised Premises or the Storage Space for the First Extension Term. Any tenant improvements that Tenant may desire to make in the Demised
Premises or the Storage Space shall be done at Tenant’s sole cost and expense, subject to Landlord’s Finish Work Allowance for the Demised Premises set forth below, and shall be made in accordance with and subject to the terms of the Lease
including, without limitation, Sections 10 and 11 of the Lease. 
 
Without limiting the generality of Sections 10 and 11 of the Lease, Tenant will provide detailed plans and specifications (“Tenant’s Plans”) necessary to price, permit, and construct any improvements or perform any
alterations to the Demised Premises. Tenant’s Plans will be subject to Landlord’s review and approval, which shall not be unreasonably withheld for improvements that are consistent with the first-class standard of the Building, do not
affect structural elements of the Building or adversely affect Building systems, and otherwise comply with the Lease. Landlord shall promptly review Tenant’s Plans within ten (10) business days and either approve them or specify the revisions
required to enable approval. Tenant shall select (subject to Landlord’s approval within five (5) business days after Tenant’s request, which approval shall not be unreasonably withheld) a qualified general contractor to perform the work.
Except for Tenant’s business equipment, furniture, and 

 

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personal property (which Tenant may or, if requested by Landlord, shall remove at the end of the Term), Landlord shall advise Tenant, at the
time of its consent to any alterations to the Demised Premises, whether Landlord may require Tenant at the expiration of this Lease to restore the Demised Premises to substantially the same condition as existed prior to such alterations; provided
that, except as set forth in Section 14.2 of the Lease (as amended hereby), Landlord shall not require Tenant to remove any alterations that are for general office uses. The preceding sentence shall supersede the last sentence of Article 9 of the
Lease. 
 
(e)  Landlord’s Finish Work Allowance.    Landlord shall provide Tenant with an allowance for the costs (“Finish Work Allowance Costs”) of hereafter constructing any tenant
improvements in the Demised Premises (including, without limitation, architectural and engineering fees with respect thereto, provided, however, that said architectural and engineering fees shall not exceed 15% of the Finish Work Allowance) in an
amount not to exceed $1,278,420 (i.e., the product of (x) $15 per rentable square foot and (y) 85,228 rentable square feet of the Demised Premises) (the “Finish Work Allowance”). All construction and design costs for the Demised
Premises in excess of the Finish Work Allowance shall be paid for entirely by Tenant, and Landlord shall not provide any reimbursement therefor. The Finish Work Allowance shall be disbursed as requisitioned by Tenant, but not more frequently than
monthly, within thirty (30) days after Tenant’s submission of the requisition package. For each disbursement, Tenant shall submit a requisition package to Landlord with an itemization of the costs being requisitioned, a certificate by an
officer of Tenant that all such costs are Finish Work Allowance Costs and have been incurred by Tenant, and appropriate back-up documentation including, without limitation, partial or full lien waivers (in a form reasonably approved by Landlord),
invoices and bills (together with evidence of Tenant’s payment of such amounts, if Tenant does not request such invoices to be paid by joint check pursuant to the next sentence), and, upon completion of the work, such certificates of
completion, final lien waivers, certificates of occupancy, and as-built plans as Landlord may reasonably require in light of the nature and scope of the work. Notwithstanding the foregoing, at Tenant’s request, Landlord shall make disbursements
of the Finish Work Allowance by check jointly payable to Tenant and Tenant’s general contractor with respect to the portion of the work then completed; provided, however, that Landlord shall have no responsibility or liability to Tenant or such
contractor with respect to such work, including without limitation, the quality or completeness of such work or any warranties associated therewith. If the reasonably estimated cost of the work exceeds the Finish Work Allowance, Landlord reserves
the right to make pro-rata disbursements of the Finish Work Allowance in the proportion that the Finish Work Allowance bears to the estimated cost of the work, subject to a final reconciliation upon completion of the work. Landlord shall have no
obligation to pay the Finish Work Allowance at any time when Tenant is in default under the Lease (as amended hereby) beyond the expiration of any applicable notice or cure period or in respect of any requisition submitted after May 16, 2004. Tenant
shall have no right to any unused portion of the Finish Work Allowance. 
 
(f)  Landlord’s Additional Allowance.    Landlord shall provide Tenant with an allowance for the costs (“Allowance Costs”) of hereafter
installing a security system, voice and data cabling, telephone switch equipment, and other business equipment listed on Exhibit C attached hereto (collectively, the “Security/Telecommunications Work”) in the Demised Premises
in an amount not to exceed $1,022,736 (i.e., the product of (x) $12 per rentable square foot and (y) 85,228 rentable square feet of the Demised Premises) (the “Additional Allowance”). The Additional Allowance is intended to be used
for the costs of upgrading the infrastructure of the Demised Premises itemized on Exhibit C. All installation costs for the Security/Telecommunications Work in the Demised Premises in excess of the Additional Allowance shall be paid for entirely by
Tenant, and Landlord shall not provide any reimbursement therefor. The Additional Allowance shall be disbursed as requisitioned by Tenant, but not more frequently than monthly, within thirty (30) days after Tenant’s submission of the
requisition package. For each disbursement, Tenant shall submit a requisition package to Landlord with an itemization of the costs being requisitioned, a certificate by an officer of Tenant that all such costs are Allowance Costs and have been
incurred by Tenant, and appropriate back-up documentation including, without limitation, partial or full lien waivers (in a form reasonably approved by Landlord), invoices and bills (together with evidence of Tenant’s payment of such amounts,
if Tenant does not request such invoices to be paid by joint check pursuant to the next sentence), and, upon completion of the work, such certificates of completion, and final lien waivers. Notwithstanding the 

 

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foregoing, at Tenant’s request, Landlord shall make disbursements of the Additional Allowance by check jointly payable to Tenant and
Tenant’s contractor with respect to the portion of the work then completed; provided, however, that Landlord shall have no responsibility or liability to Tenant or such contractor with respect to such work, including without limitation, the
quality or completeness of such work or any warranties associated therewith. Landlord shall have no obligation to pay the Additional Allowance at any time when Tenant is in default under the Lease (as amended hereby) beyond the expiration of any
applicable notice or cure period or in respect of any requisition submitted after May 16, 2004. Tenant shall have no right to any unused portion of the Additional Allowance. 
 
(g) Parking. Effective as of the Extension Term Commencement Date, (i) Section 1(10)
(Parking Spaces) of the Lease (as previously amended) shall read as follows: 
 
“(10) (Parking Spaces): One hundred twenty-eight (128)” 
 
and (ii) Section 27.6 of the Lease shall be deleted in its entirety and replaced with the following Section 27.6: 
 
“27.6  Parking.    Landlord shall allocate to the parking spaces set forth in Article 1 (“Tenant’s Parking Spaces”) in the Parking Garage located in the Project.
Landlord may, pursuant to Section 15.1, establish Rules and Regulations relative to the Parking Garage serving the Project tenants and may further engage the services of an independent contractor to administer and control access to said Parking
Garage. Landlord or said independent contractor shall impose separate charges for use of said Parking Garage, and such charges shall be payable by Tenant as Additional Rent with respect to Tenant’s Parking Spaces. The monthly charge shall be as
from time to time established by Landlord or said independent contractor as the then prevailing market rate for monthly parking charges for the Project at the then lowest rates given to new or renewing tenants in the Building so long as Pegasystems
Inc. occupies as much or more space than any other tenant in the Building. As of the date hereof, the current monthly charge for parking spaces is $200 per space per month. Tenant acknowledges that Landlord has informed Tenant that Landlord intends
to allocate in its tenant leases more than the actual parking spaces servicing the Project. It is further acknowledged and agreed that as a consequence of such over-allocation of parking spaces, there may occasionally occur instances in which the
number of parking spaces actually available to Tenant shall be less than the Parking Spaces to which Tenant is entitled under this Lease. Landlord shall incur no liability to Tenant as a consequence of such over-allocation of parking spaces.

 
In addition to the Parking
Spaces allocated to Tenant as set forth above, Landlord shall allocate to Tenant 43 additional parking spaces (the “Tenant’s Additional Parking Spaces”) on a month-to-month basis at the same monthly charge. Either party may
terminate the rights and obligations as to some or all of Tenant’s Additional Parking Spaces from time to time, effective as of the first day of any calendar month with notice given at least ninety (90) days prior to such effective date(s) of
termination.” 
 
(h)  Signage.    So long as (i) Tenant is not in default under the Lease (as amended hereby) beyond the expiration of any applicable notice or cure period, and (ii) Tenant occupies at least 50,000
rentable square feet of the Demised Premises, effective as of the Extension Term Commencement Date signage shall be made available for Tenant on the existing monument in front of the Building in a manner consistent with the signage currently in
place. Any such signage shall be at Tenant’s sole cost and subject to applicable governmental approvals and permits. Notwithstanding the foregoing, Landlord shall have the right, at Landlord’s sole cost and expense, from time to time
during the First Extension Term, as the same may be extended, to relocate and/or replace said signage with similar signage of equal or greater size and of equivalent or better location and visibility. 
 
(i)  Assignment and
Subletting.    Effective as of the Extension Term Commencement Date, Article 14 of the Lease is hereby amended as follows: 
 
(1)  Section 14.2 is hereby amended by deleting the phrase “three (3) occupants, including Tenant, within
the Demised Premises” and inserting in its place the phrase “three (3) occupants (including 

 

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Tenant) on any full floor of the Demised Premises or two (2) occupants (including Tenant) on any partial floor of the Demised Premises;
provided, however, that Landlord reserves the right to require Tenant, at the end of the Term, to remove any interior demising partitions installed for any subtenants and any other alterations made by Tenant to demise the Demised Premises into
multi-tenant floors, and to restore the affected areas to the condition existing prior to such work.” 
 
(2)  Section 14.2 is further amended by adding at the end of such section: “Such reasonable objections may
include, without limitation, the fact that the proposed assignee or subtenant is already a tenant (or an affiliate of a tenant) in the Project (unless Landlord reasonably determines that Landlord has no other space in the Project that Landlord
intends to offer to such tenant), is a party with whom Landlord is then in active negotiations for other space in the Project, or has a financial condition that is reasonably unsatisfactory to Landlord relative to the scope of the obligations
proposed to be undertaken by such assignee or subtenant. Landlord shall promptly respond with its approval or denial of the proposed assignment or sublease, but in all events within fifteen (15) days after Tenant’s submission of all required
information and documents hereunder.” 
 
(3)  The reference in the eleventh line of Section 14.2 to a Tenant “default” shall mean a default beyond the expiration of any applicable notice or cure period. 
 
(4)  Section 14.4 is amended by
adding the following sentence at the end of such Section: “Such excess rent shall be determined after deducting brokerage fees, attorneys’ fees (not to exceed $1 per square foot of the subleased area), and commercially reasonable costs of
demising the subleased area, that are incurred by Tenant in connection with such Sublease, and the unamortized costs of tenant improvements in the subleased area made by Tenant at its expense after completion of the work described in Paragraphs
1(d) through (f) above.” 
 
(5)  Section 14.7(d) is amended by adding after the word “time” in the fourth line thereof the words “(but, with respect to any subtenant or occupant other than an assignee, only after Tenant is in default,
beyond the expiration of any applicable notice or cure period, with respect to any of its obligations under the Lease)”. 
 
(j)  General.    Except as otherwise set forth in this Amendment, Tenant’s lease
of the Demised Premises and Storage Space during the First Extension Term shall be on all of the terms and conditions of the Lease in effect immediately before the commencement of the Extension Term. Sections 3.3 and 3.4 of the Lease are hereby
deleted in their entirety. 
 
2.  Temporary Space.    Landlord agrees to lease to Tenant, and Tenant agrees to lease from Landlord, on the terms set forth herein, 23,350 rentable square feet (the “Temporary
Space”) located on the 11th floor of the Building as shown on Exhibit A attached hereto and incorporated
herein. Tenant shall lease and occupy the Temporary Space for a term commencing on or about August 15, 2002 and expiring on May 31, 2003 (the “Temporary Space Term”) while Tenant constructs certain improvements to the Demised
Premises for the Extension Term. Such lease shall be on all of the terms and conditions applicable to the Demised Premises in effect on the date hereof, provided that Tenant shall not be obligated to make any payments of Yearly Fixed Rent or
Additional Rent for Landlord’s taxes or operating expenses for the Temporary Space during the portion of the Temporary Space Term ending on April 14, 2003 (but shall be obligated to make such payments for the period April 15, 2003 through May
31, 2003 at the rate of $29 per rentable square foot). However, Tenant shall be responsible for paying the cost of all electricity consumed (and any separately reimbursable services, such as after-hours HVAC) in the Temporary Space during the
Temporary Space Term. Tenant agrees to accept the Temporary Space in its broom clean, “as-is” condition on the commencement of the Temporary Space Term (free of the prior occupant and exclusive of any furniture or personal property of the
prior occupant thereof), and Landlord shall not be required to perform any work in the Temporary Space or to provide any allowance for such space. Landlord shall not be liable to Tenant for any delay in delivery of the Temporary Space to Tenant on
the date set forth above, but the expiration date for the Temporary Space Term shall be extended by one day for each day of such delay. Tenant shall vacate and surrender the Temporary Space to Landlord on or before the end of 

 

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the Temporary Space Term in the same condition as existed at the commencement of the Temporary Space Term, reasonable wear and tear and
damage by fire or casualty excepted, and otherwise in the condition required under the Lease for vacating the Demised Premises at the end of the Term. 
 
3.  Security Deposit.    On or before the Extension Term Commencement Date (or, if earlier, the date
of Tenant’s initial requisition of any allowance under Paragraph 1 above), Tenant shall deposit with Landlord a Letter of Credit naming Landlord as beneficiary (such Letter of Credit, including renewals, substitutions and replacements thereof,
the “Letter of Credit”) in the amount of One Million One Hundred Ninety Five Thousand Four Hundred Fifty One Dollars ($1,195,451) as security for the full and punctual performance by Tenant of all of the terms of the Lease. Notwithstanding
the foregoing, provided (i) Tenant is not in default under the Lease after any applicable notice and cure periods have expired and (ii) the Tenant originally named herein (or its Successor as defined in Section 14.3 of the Lease) shall occupy more
than 80% of the rentable square feet of the Demised Premises, at the commencement of the second Lease Year of the First Extension Term Landlord shall permit the reduction of the Letter of Credit to an amount equal to one quarter of the Yearly Fixed
Rent set forth in Paragraph 1(b) above for the Second Lease Year or return the original Letter of Credit upon Tenant’s substitution therefor by a replacement Letter of Credit in such amount. At the commencement of each subsequent Lease Year,
Tenant shall increase or replace the Letter of Credit to provide an amount equal to one quarter of the Yearly Fixed Rent set forth in Paragraph 1(b) above for that Lease Year. The Letter of Credit required hereunder (including any replacement
thereof or supplement thereto) shall conform to the requirements set forth on the attached Exhibit B. 
 
4.  Right of First Offer.    Reference is made to any space that hereafter may become available on
the eighth (8th) and twelfth (12th) floors of the Building (the “First Offer Space”). In the event the First Offer Space becomes available during the Term of this Lease, then
before hereafter entering into a lease for the First Offer Space with a third party (other than the then current tenant or occupant of such space, or a tenant having superior rights granted prior to the date hereof) for a period within such Term,
Landlord shall notify Tenant of the terms on which Landlord intends to lease the space (“Landlord’s Notice”). 
 
Within ten (10) business days after receipt of Landlord’s Notice, Tenant may, by written notice delivered to Landlord, (a)
unconditionally and irrevocably agree to lease the First Offer Space for its own use on the terms set forth in Landlord’s Notice, (b) reject Landlord’s offer, or (c) decline Landlord’s offer but unconditionally and irrevocably offer
to lease such space from Landlord for its own use on specific economic terms proposed in Tenant’s response. The failure by Tenant to timely respond as aforesaid shall be deemed Tenant’s rejection of Landlord’s Notice under clause (b).
If Tenant rejects (or is deemed to have rejected) Landlord’s offer under clause (b), Tenant shall have no further rights with respect to such space. 
 
If Tenant makes a counteroffer to Landlord under clause (c), then Landlord may, by written notice delivered within thirty days of receipt
thereof, accept or decline such offer (the failure to so respond being deemed Landlord’s election to decline Tenant’s offer). If such offer under clause (c) is declined (or deemed declined), then, for a period of one year after
Landlord’s receipt of Tenant’s offer, Landlord may enter into any lease for such space at an effective rent (after taking into account any tenant improvement allowance) greater than that set forth in Tenant’s offer. If, during such
one-year period, Landlord desires to enter into a third-party lease at an effective rent less than or equal to the effective rent set forth in Tenant’s offer, Landlord shall deliver to Tenant a new Landlord’s Notice. If Landlord does not
enter into any lease within such one-year period, Landlord shall re-commence the process under this Paragraph before entering into a lease for the space. 
 
If Tenant timely accepts Landlord’s Notice under this Paragraph (or if Landlord timely accepts Tenant’s offer under clause (c)),
the space shall, subject to the following paragraph below and without further action by the parties, be leased by Tenant on the accepted terms and otherwise on all of the terms of the Lease in effect immediately prior to such expansion; provided
that, at the request of either party, Landlord and Tenant shall promptly execute and deliver an agreement confirming such expansion of the Demised Premises and the estimated date the Demised Premises are to be expanded pursuant to this paragraph
with a provision for 

 

A-6 

establishing the effective date of such expansion based on actual delivery. Landlord shall use good faith efforts (including legal process,
if appropriate) to deliver the First Offer Space on or about the estimated delivery date. Landlord’s failure to deliver, or delay in delivering, all or any part of the First Offer Space, for any reason, shall not give rise to any liability of
Landlord, shall not alter Tenant’s obligation to accept such space when delivered, shall not constitute a default of Landlord, and shall not affect the validity of the Lease. Notwithstanding the foregoing, if Landlord has not delivered the
First Offer Space to Tenant within four (4) months after the estimated delivery date, Tenant may, by notice to Landlord within sixty (60) days thereafter, terminate its obligation to lease the First Offer Space, which notice shall not be effective
if the First Offer Space is delivered to Tenant within sixty days after delivery of such termination notice. If Tenant so terminates as to the First Offer Space, Tenant shall thereafter have no right to lease the First Offer Space in question, but
such termination right shall not affect Tenant’s rights under this Paragraph 4 with respect to any other First Offer Space. 
 
Notwithstanding any provision of this Section to the contrary, Tenant’s rights under this Section shall be void, at Landlord’s
election, if (i) Tenant is in default hereunder, after any applicable notice and cure periods have expired, at any time prior to the time Tenant makes any election with respect to the First Offer Space hereunder or at the time the First Offer Space
would be added to the Demised Premises or (ii) the original Tenant named herein (or a Successor of Tenant under Section 14.3 of the Lease) occupies less than eighty percent (80%) of the Demised Premises or (iii) fewer than fourteen months remain in
the Term. Nothing in this Section shall be construed to grant to Tenant any rights or interest in any space in the Building, and any claims by Tenant alleging a failure of Landlord to comply herewith shall be limited to claims for monetary damages.
Tenant may not assert any rights in any space nor file any lis pendens or similar notice with respect thereto. 
 
5.  Rooftop Satellite Dish Space.    Subject to the terms set forth below, Landlord hereby grants
Tenant a license to use a portion of the roof of the Building for the installation of up to two (2) communications antennae or satellite dishes for Tenant’s uses ancillary to the Permitted Uses in the Demised Premises (the “Satellite
Dish”), subject to the prevailing availability of roof space on the Building reasonably designated by Landlord for such uses. The size, location, manner of placement, screening, installation specifications, and other particulars of the
Satellite Dish shall be subject to the prior review and reasonable approval of Landlord. Tenant shall be responsible for obtaining all necessary permits, approvals, and operating licenses for such installation and shall pay all costs arising from
the installation, maintenance, repair, and subsequent removal of the Satellite Dish. 
 
6.  Extension Option(s).    Tenant shall have the option to extend the Term of the Lease for two (2) additional periods of five (5) years each (the
“Second Extension Term” and the “Third Extension Term,” respectively; each, an “Extension Term”) on the terms set forth below (the “Extension Option(s)”). Yearly Fixed Rent during
any Extension Term shall be ninety-five (95%) percent of the Fair Market Rent (as defined below) for the Demised Premises and Storage Space (as determined below) for such Extension Term. Tenant’s lease of the Demised Premises and Storage Space
during any Extension Term shall otherwise be on all of the terms and conditions of this Lease in effect on the last day of the expiring Term, except that Tenant shall have no further option to extend the Term beyond the end of the Third Extension
Term set forth herein, and Landlord shall have no obligation to provide any improvements to the Demised Premises or Storage Space or any allowances therefor with respect to the Second or Third Extension Terms. 
 
(a)  If Tenant wishes to consider
exercising the Extension Option, Tenant shall so notify Landlord of such preliminary (i.e., non-binding) interest no more than sixteen (16) months, and no less than fifteen (15) months, prior to the date the Term is then scheduled to expire. Failure
by Tenant timely to send a notice under this paragraph (a) shall constitute an irrevocable waiver of Tenant’s right to extend the Term. 
 
(b)  If Tenant timely delivers a notice under paragraph (a) above, within ten (10) days Landlord shall furnish
Tenant with Landlord’s estimate of the Fair Market Rent for the applicable Extension Term. If Tenant disputes Landlord’s estimate, Tenant shall provide to Landlord Tenant’s estimate of Fair Market Rent within ten (10) days after
receipt of Landlord’s estimate. 
 
(c)  If Tenant timely notifies Landlord under paragraph (a) above, on or before the date fourteen (14) months prior to the date the Term is then scheduled to expire, Tenant shall either (i) waive the Extension 

 

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Option, or (ii) exercise the Extension Option by giving Landlord notice to such effect accepting Landlord’s estimate of Fair Market
Rent or such other amount as the parties may have mutually agreed upon prior to such date. Failure timely to give a notice exercising the Extension Option as set forth in this paragraph (c) shall constitute an irrevocable waiver of Tenant’s
right to extend the Term. 
 
(d)  “Fair Market Rent” shall be the fair market rent that a willing tenant would pay to lease the Demised Premises and Storage Space for each year of the Extension Term in question under the terms and conditions
of this Lease, assuming the Demised Premises and Storage Space are in their then existing condition (or in such better condition as the same are required to be maintained under the terms of the Lease), taking into account all relevant factors
(including, without limitation, the condition of the space and the presence or absence of free rent, tenant improvement allowances, or other comparable concessions), but disregarding the rent historically paid under this Lease. 
 
(e)  If Tenant shall exercise the
Extension Option in accordance with this Section 3, the provisions of this Section shall be self-operative, but upon request by either party after determination of the Yearly Fixed Rent for the Extension Term, the parties shall execute an agreement
specifying the Yearly Fixed Rent for the Extension Term and acknowledging the extension of the Term. 
 
(f)  Notwithstanding any provision of this Section to the contrary, Tenant’s option to extend the Term
shall be void, at Landlord’s election, if (i) Tenant is in default hereunder, after any applicable notice and cure periods have expired, at the time Tenant elects to extend the Term or at the time the Term would expire but for such extension,
or (ii) the Tenant originally named herein (or its Successor as defined in Section 14.3 of the Lease) shall occupy less than 80% of the rentable square feet of the Demised Premises. 
 
7.  Miscellaneous Provisions.    The Lease is hereby amended as follows:

 
(a)  Section 7.1 of
the Lease is hereby amended by deleting the fourth sentence thereof and inserting in its place: “Tenant’s use of electrical energy in the Demised Premises shall not at any time exceed the capacity of any of the electrical conductors and
equipment in or otherwise serving the Demised Premises, provided that Landlord shall not materially alter the capacity of the electrical conductors and equipment currently serving the Demised Premises.” The parties acknowledge that Exhibit
E attached hereto sets forth the current methodology for determining Tenant’s electrical charges under the Lease. 
 
(b)  Section 7.5 of the Lease is hereby amended by deleting the words “on an around-the-clock basis”
from clause (f) and inserting in their place “during the hours of 8:00 a.m. to 8:00 p.m. on Mondays through Fridays and 8:00 a.m. to 12:00 p.m. on Saturdays (excluding holidays in all cases) and thereafter as reasonably appropriate from time to
time”. 
 
(c)  Section 16(b) of the Lease is hereby amended by deleting the words “three (3)” in both places where it appears and inserting in their place the words “nine (9)”. Section 16(c) is hereby amended by
inserting after the word “Lease” in the third line thereof the words “(which damage is estimated to require more than half of the remaining Term to repair).” 
 
(d)  Section 27.10 on Exhibit F attached hereto is hereby added to the Lease
after Section 27.9. 
 
(e)  With respect to overtime HVAC under Section 3.4 of the Lease, the current procedures for requesting such services from Landlord are set forth on Exhibit G attached hereto. 
 
8.  Notice
Addresses.    Tenant’s notice address is hereby amended to be: 
 
Pegasystems Inc. 
101 Main Street 
Cambridge, MA 02142 
Attention: General Counsel 
 

A-8 

 
With a copy of any default notice to: 
 
Kurzman Eisenberg Corbin Lever & Goodman, LLP 
One North Broadway,
10th floor 
White Plains, New York 10601 
Attention: Robin Levitt Topol,
Esq. 
 
9.  Brokerage.    Landlord and Tenant each represents and warrants that it has had no dealings with any broker or agent in connection with this Amendment other than Spaulding & Slye
(“Broker”). Each party covenants to pay, hold harmless and indemnify the other party from and against any and all costs, expenses or liability for any compensation, commissions, and charges claimed by any other broker or agent arising from
its breach of the foregoing warranty. Landlord shall be responsible for the payment of brokerage fees to Broker pursuant to a separate agreement between Landlord and Broker. Any additional brokerage commission or other compensation payable in
connection with this Amendment shall be the sole responsibility of Tenant. 
 
10.  Ratification.    Except as set forth herein, the Lease, as previously amended, is hereby ratified and confirmed in all respects. 
 
[Balance of Page Intentionally Left Blank] 
 

A-9 

 
IN WITNESS
WHEREOF, Landlord and Tenant have executed this Amendment as a sealed instrument as of the date first set forth above. 
 
LANDLORD: 
 

	  NOP RIVERFRONT LLC,
  a Delaware limited liability company

	
	  By:
	  	  National Office Partners Limited Partnership,
  a Delaware limited partnership,
 
its Managing Member

	
	  By:
	  	  Hines National Office Partners Limited Partnership,
  a Delaware limited partnership,
 
its General Partner

	
	  By:
	  	  Hines Fund Management, L.L.C.,
  a Delaware limited liability company,
  its General Partner

	
	  By:
	  	  Hines Interests Limited Partnership,
  a Delaware limited partnership,
 
its sole member

	
	  By:
	  	  Hines Holdings, Inc.,
  a Texas corporation
  its General Partner

	
	  By:
	  	  /s/    JEFFREY C. HINES
        

	  	  	  Jeffrey C. Hines
  President

 

	  TENANT:
 
 
  PEGASYSTEMS INC.,
  a Massachusetts corporation
	  	  	  	  
	
	  By:
	  	  /s/    JOHN H. PARKER,
JR.        

	  	  	  	  	  	  
	  	  	  John H. Parker Jr
  Vice President
	  	  	  	  	  	  
	  	  	  	  	  
	
	  By:
	  	  /s/    CHRISTOPHER
SULLIVAN        

	  	  	  	  By:
	  	  /s/    ALAN
TREFLER        

	  	  	  Christopher J. Sullivan
  Chief Financial Officer
	  	  	  	  	  	  Alan Trefler
  Chief Executive Officer

 

A-10 

 
EXHIBIT A

 
Temporary Space—Floor Plan

 

A-11 

 
EXHIBIT B

 
Letter of Credit Requirements

 
The Letter of Credit required under the
Amendment to which this Exhibit is attached (i) shall be irrevocable and shall be issued by a commercial bank reasonably acceptable to Landlord that has an office in Boston, Massachusetts, New York City, New York, or any other major U.S. city, (ii)
shall require only the presentation to the issuer of a certificate of the holder of the Letter of Credit stating that a default has occurred under this Lease after the expiration of any applicable notice and cure period (or that Tenant has failed to
timely perform any obligation under the Lease and transmittal of a default notice is barred by applicable law), (iii) shall be payable to Landlord or its successors in interest as the Landlord and shall be freely transferable without cost to any
such successor or any lender holding a collateral assignment of Landlord’s interest in the Lease, (iv) shall be for an initial term of not less than one year and contain a provision that such term shall be automatically renewed for successive
one-year periods unless the issuer shall, at least 45 days prior to the scheduled expiration date, give Landlord notice of such nonrenewal, and (v) shall otherwise be in form and substance reasonably acceptable to Landlord. Notwithstanding the
foregoing, the term of the Letter of Credit for the final period shall be for a term ending not earlier than the date thirty (30) days after the last day of the Extension Term, as the same may be extended. 
 
Landlord shall be entitled to draw upon the Letter of Credit
for its full amount or any portion thereof (i) if Tenant shall be in default under the Lease, after the expiration of any applicable notice or cure period (or that Tenant has failed to timely perform any obligation under the Lease and transmittal of
a default notice is barred by applicable law), or (ii) if, not less than 30 days before the scheduled expiration of the Letter of Credit, Tenant has not delivered to Landlord a new Letter of Credit in accordance with this Section (which failure
shall be deemed a default without notice or cure period). Landlord may, but shall not be obligated to, apply the amount so drawn to the extent necessary to cure Tenant’s default under the Lease. Any amount drawn in excess of the amount applied
by Landlord to cure any such default shall be held by Landlord as a security deposit for the performance by Tenant of its obligations hereunder. Said security deposit may be mingled with other funds of Landlord, and no fiduciary relationship shall
be created with respect to such deposit, nor shall Landlord be liable to pay Tenant interest thereon. If Tenant shall fail to perform any of its obligations under this Lease, Landlord may, but shall not be obliged to, apply the security deposit to
the extent necessary to cure the default. After any such application by Landlord of the Letter of Credit or security deposit, Tenant shall reinstate the Letter of Credit to the amount originally required to be maintained hereunder, upon demand.
Within thirty (30) days after the expiration or sooner termination of the Extension Term, as the same may be extended, the Letter of Credit and any security deposit, to the extent not applied, shall be returned to the Tenant, without interest.

 
In the event of a sale of the Building or lease,
conveyance or transfer of the Building, Landlord shall transfer the Letter of Credit or security deposit to the transferee and Landlord shall thereupon be released by Tenant from all liability for the return of such security; and Tenant agrees to
look to the transferee solely for the return of said security. The provisions hereof shall apply to every transfer or assignment made of the security to such a transferee. Tenant further covenants that it will not assign or encumber or attempt to
assign or encumber the Letter of Credit or the monies deposited herein as security, and that neither Landlord nor its successors or assigns shall be bound by any assignment, encumbrance, attempted assignment or attempted encumbrance. 
 

A-12 

 
EXHIBIT C

 
Security/Telecommunications Work

 
1.  Moving costs

2.  IT backbone design 
3.  IT switching 
4.  New fiber optic system between floors 
5.  Upgrade to IT servers 
6.  New phone system 
7.  New voice mail system 
8.  New security system 
9.  Additional cooling in the 7th floor wire closet 
10.  Additional cooling in the 5th floor performance lab 
11.  New fire suppression system in the 6th floor data center and the 5th floor performance lab 
12.  Removal of unused high and low voltage wiring,
cabling, and dead circuits 
 

A-13 

 
EXHIBIT D

 
6.4  Tenant’s
Proportionate Share; Audit Rights. 
 
Tenant’s proportionate share of taxes pursuant to Section 6.2 shall mean the fraction, expressed as a percentage, equal to the Rentable Area of the Demised Premises (which is deemed to be 85,228 square feet as of the date
hereof) divided by the total rentable area of the Building (which is deemed to be 340,908 square feet as of the date hereof), and Tenant’s proportionate share of operating expenses pursuant to Section 6.3 shall mean the fraction, expressed as a
percentage, equal to the Rentable Area of the Demised Premises divided by the total rentable area of the Building, exclusive of the rentable area of the portion of the Building from time to time designated by Landlord for retail use (which is deemed
to be 7,841 square feet as of the date hereof). Computations of rentable area arising from any future changes in the Demised Premises, the Building, or its retail area shall be made by Landlord’s architect whose good faith determination shall
be conclusive and binding on Tenant. 
 
Notwithstanding anything to the contrary in the Lease as set forth above, the following items shall be excluded from operating expenses under Section 6.3: (1) salaries and compensation for officers and executives of Landlord (above
the level of senior building manager), unless for work actually performed in or about the Building ordinarily done by an unrelated third person, and then only at compensation no higher than that which would have been paid to such third person; (2)
legal or other fees, leasing or brokerage commissions, advertising expenses, promotional expenses and other costs incurred in lease negotiations or enforcement of leases against tenants or in renewing, amending or terminating leases; (3) any
insurance premium to the extent that Landlord is, or is entitled to be, separately reimbursed therefor by Tenant pursuant to this Lease (other than pursuant to this Article) or by any other tenant or other occupant of the Building pursuant to its
lease (other than pursuant to an operating expenses escalation clause contained therein); (4) the cost of any items for which Landlord is, or is entitled to be, reimbursed by insurance or otherwise compensated, including reimbursement by any tenant
(other than pursuant to an operating expenses escalation clause contained therein); (5) costs of alterations, additions, changes, replacements, and improvements made in order to prepare space for occupancy by a new tenant; (6) the cost of
electricity furnished to the Demised Premises or any other space in the Building leased to tenants; (7) Landlord’s taxes under Section 6.2; (8) debt service, payments of principal, or any other costs (including, without limitation, legal fees)
of the financing or refinancing of any mortgage or costs incurred in connection with any other financing, sale, or syndication of the Building or any interest therein; (9) the costs of any items furnished to other tenants in the Building but not
furnished to Tenant hereunder (provided that the costs incurred by Landlord in providing any services to Tenant that are not provided on the same basis to all tenants in the Building shall be allocated among Tenant and any other tenants receiving
such services); (10) the cost of capital items or amortization of the Building, except to the extent amortized costs of capital items may be charged as Amortized Capital Costs (as defined below); (11) damages, penalties, or fines that Landlord is
obligated to pay by reason of Landlord’s violation of applicable law or failure by Landlord to comply with its lease obligations, to the extent not arising from any failure by Tenant to timely comply with its obligations under the Lease; (12)
the costs of environmental testing and of complying with applicable federal, state and local laws dealing with the handling, storage and disposal of hazardous materials or substances not arising in the ordinary course of operating a first-class
office building, to the extent not caused by the act or omission of Tenant or its agents, employees, or contractors; (13) depreciation; (14) any rent paid on any ground or underlying lease of the Land; (15) payments to affiliates of Landlord, to the
extent the same exceed the market rate for such services in comparable owner-managed buildings in the vicinity; (16) travel, entertainment or dining expenses, other than those reasonable and customary in the operation of the Building, (17) costs
that would otherwise constitute operating expenses to the extent related exclusively to retail or storage space in the Building, (18) costs of operating, maintaining, repairing and restoring the parking garage, and (19) management fees in excess of
2.5% of gross revenues provided the same do not exceed market rates. “Amortized Capital Costs” shall mean amortized capital expenditures for the purpose of reducing operating expenses as set forth in Section 6.3 or for alterations and
improvements to the Building by reason of any laws, building codes, regulations first applicable to the property after the date hereof or other requirements of any governmental or quasi-governmental authorities or the requirements of insurance

 

A-14 

bodies imposed on Landlord or Landlord’s insurer or to maintain the Property as a first-class building, in each case amortized as set
forth in Section 6.3. Landlord represents that to its best knowledge the ADA requirements and all life and health safety systems, including sprinklers, fire and smoke alarms, are in compliance with local and federal laws, codes, regulations and
ordinances. 
 
If less than ninety-five percent
(95%) of the Building is occupied at any time, then those items included in operating expenses that are subject to change based upon actual occupancy in the Building shall be appropriately adjusted by Landlord to the amounts that said items would
have been, as reasonably determined by Landlord, had the Building been fully occupied at all times during such year. Similar adjustments may be made by Landlord in cases in which the tenants do not require or desire such work or service, or the
tenants are themselves obtaining and providing such item of work or service. 
 
Upon request by Tenant made within one hundred twenty days after delivery to Tenant of Landlord’s year-end statement concerning operating expenses, and no more than once annually, Landlord shall
make available for Tenant’s review pertinent records and documents used in preparing such statement. Any such review shall be conducted by a certified public accountant from a nationally recognized accounting firm. Prior to such review Tenant
(and its accountant) shall enter into a confidentiality agreement in a form reasonably supplied by Landlord restricting the use of such information solely to the determination of Tenant’s share of operating expenses hereunder and certifying
that Tenant has not engaged such reviewer or accountant or any other person or firm on a contingency fee basis in connection with such review. Such review shall take place during business hours on no more than five (5) business days in the offices
of Landlord or its building manager (or in another location in Boston specified by Landlord) and shall be completed within fifteen (15) business days after the date that such materials are first made available. Review shall be limited to the records
evidencing the operating expenses allocable to the Demised Premises that were used by Landlord in preparing such year-end statement. Copies of any documents requested by Tenant shall be made by Landlord at Tenant’s reasonable expense. If Tenant
has not furnished Landlord with a completed audit report within three (3) months after the date such access is first made available to Tenant specifically identifying the particular items from Landlord’s year-end statement that are in dispute,
then Tenant shall be deemed to have accepted the year-end statement with respect to all items that have not been so disputed. If operating expenses for the calendar year (as finally determined hereunder) are less than reported, Landlord shall, at
Tenant’s election, pay such amount to Tenant within thirty (30) days or provide Tenant with a credit against the next installment of Rent in the amount of the overpayment by Tenant. If operating expenses for the calendar year (as finally
determined hereunder) are greater than reported, Tenant shall pay Landlord the amount of any underpayment within thirty (30) days. During the pendency of any such review or any dispute, Tenant shall make payments of additional rent for operating
expenses based on Landlord’s calculations, and Tenant shall have no right to abate rent or offset any amounts against any payments otherwise due under this Lease. The rights granted under this paragraph are personal to the Tenant originally
named herein (and any Successor under Section 14.3 of the Lease to which the Lease may be assigned) and may not be exercised by or on behalf of any subtenant or other party. In no event shall Tenant be permitted to examine Landlord’s records or
to dispute any statement of operating expenses if Tenant is then in default under this Lease continuing beyond any applicable notice and cure period. If Landlord does not invoice Tenant for any item of operating expenses, real estate taxes, or other
charges for additional rent under Articles 6 and 7 of the Lease within twenty-four (24) months after Landlord’s payment of the costs of such item (or, if later, within twenty-four (24) months after the end of the pertinent accrual period for
the costs of such item), Landlord shall be deemed to have waived its right to seek reimbursement for such item; provided, however, that this sentence shall not apply to any such items for which an invoice is barred by applicable law or is not given
for any other reason beyond Landlord’s control or to any such items if Tenant claims a refund, rebate, or other disputed amounts for any charges under the Lease with respect to the calendar year in which such item was incurred or accrued or any
other prior period. 
 

A-15 

 
EXHIBIT E

 
PROCEDURE FOR ALLOCATION OF COSTS OF

ELECTRIC POWER USAGE BY TENANTS 
(101 Main Street, Cambridge, Massachusetts) 
 
1. Main electric service to the Building will be provided by the local utility company to the base building meters. These meters track
electricity usage from stairwell and emergency lights; elevators; heat pumps and HVAC in the Building; exterior lighting; and all main Building mechanical systems (common areas on each floor, including the elevator lobby, corridors, and bathrooms)
(the “Base Building Electricity”) and shall be allocated to tenants. All charges by the utility will be read from this meter and billed to and paid by Landlord at rates established by the utility company. 
 
2. All costs of Base Building Electricity to Landlord shall be
treated as part of the operating expenses of the Building for purposes of determining the allocation of those costs. 
 
3. Separate electric service from the utility company directly to tenants will be required by Landlord for each tenant to measure all
electricity provided for lights, power specific tenant equipment including computer room and telephone room HVAC, cafeterias, or other special purpose facilities. 
 

A-16 

 
EXHIBIT F

 
Other Lease Sections 
 
27.10  Holding
Over.    If Tenant (or any person holding under or through Tenant) fails to vacate and surrender the Demised Premises to Landlord as required hereunder upon the termination or expiration of the Term, such holding over shall
be, except as Landlord may elect pursuant to the next sentence, as a tenant at sufferance (requiring 30 days’ notice of termination by either party to the other) at a monthly fixed rent (“Holdover Rent”) equal to (i) 125% (for the
first thirty (30) days of any such holdover), (ii) 150% (for the next thirty (30) days of any such holdover), and (iii) thereafter, 200% of the greater of the Yearly Fixed Rent due hereunder for the last month of the Term or the rent being quoted by
Landlord for comparable space in the Building at the time of the termination or expiration of the Term, and otherwise subject to all the covenants and conditions (including obligations to pay Additional Rent under Sections 6.2 and 6.3) of this Lease
as though it had originally been a monthly tenancy. Notwithstanding the foregoing, if Landlord desires to regain possession of the Demised Premises promptly after the termination or expiration hereof and prior to acceptance of rent for any period
thereafter, Landlord may, at its option, forthwith re-enter and take possession of the Demised Premises or any part thereof without process or by any legal process in force in The Commonwealth of Massachusetts. 
 
Notwithstanding the establishment of any holdover tenancy
following the expiration or earlier termination of the Term, if Tenant fails promptly to vacate the Demised Premises at the expiration or earlier termination of the Term, Tenant shall save Landlord harmless and indemnified against any claim, loss,
cost or expense (including reasonable attorneys’ fees) arising out of Tenant’s failure promptly to vacate the Demised Premises (or any portion thereof) and upon demand pay to Landlord any damages or loss incurred by Landlord as a result of
any delayed or terminated lease of all or part of the Premises by another party. 
 

A-17 

 
EXHIBIT G

 
REQUESTING OVERTIME HVAC 
 
General Information: 
 
Overtime HVAC is defined as heating or cooling after
Business Hours. Business Hours for Riverfront Office Park are Monday through Friday 8AM to 6PM and Saturday 8AM to 12PM, Commonwealth of Massachusetts holidays excluded. A list of Tenant-authorized requestors shall be on file at the Management
Office, and Security Lobby Desk. It is the responsibility of the Tenant to maintain a current list and submit that list to Hines Management. Hines has provided a Heat Pump Location guide that should be distributed to each Tenant-approved requestor.
Requestors should be prepared to reference this location guide when making a request for overtime HVAC. Additional copies of this map may be obtained through the Management Office. 
 
Procedures for making a request:    DURING BUSINESS HOURS 
 
1.  Tenant-authorized requestor may
e-mail (Christine_granade@hines.com) or FAX attached “Overtime HVAC Request” form (see attached) to the Management Office at (617) 494-1760. Requestors should be familiar with the provided heat pump location map, and be prepared to
reference a heat pump location and number(s). 
 

	  2.      
	  	  Overtime Service for:

	   	  Please make request by:

	
	  	  	  Weekdays, holidays excluded
	   	  3PM of the day needed

	
	  	  	  Weekends (Saturday after 12PM; Sunday)
	   	  3PM the preceding Friday

	
	  	  	  Holidays
	   	  5PM the preceding workday

 
AFTER BUSINESS HOURS 
 
1.  After business hours, requestor shall contact Security at (617) 497-7711, Option 1, and request will be relayed to the on-call Hines engineering staff who will execute the service as requested. 
 
2.  Requestor will be asked by
Security to provide information needed on Overtime HVAC Request form, mainly concerning the specific heat pump(s) that are to be programmed and their floor/area location(s). Requestors should be familiar with the provided heat pump location map, and
be prepared to reference a heat pump location and number(s). 
 

	 NOTES:	  	 

 

	  	 •	 	 The targeted service level for overtime HVAC requests made after business hours is 30 minutes from the time the call is initiated. 

 

	  	 •	 	 These procedures are subject to change with 30 days prior written notice to tenant. Changes, if any, will be consistent with services rendered in comparable Class A
buildings in Cambridge. 

 

A-18

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