Offer Letter between the Registrant and John Higgins executed December 13, 2020

Place of work: You will be based at home or elsewhere within the United Kingdom as the Company requires.

Start Date: Your employment with the Company will start on 8 February 2021, (the "Start Date"). This is the date on which your Agreement becomes effective.

Corporate Incentive Compensation Plan (“CICP”): You are eligible for a bonus for 2021 of up to 40% of your salary, on the successful achievement of company and personal objectives and subject to the CICP plan rules. Any bonus payment will be subject to tax and statutory deductions, will not be pensionable and will be prorated in the first year according to your start date of February 2021.

Pension: You can participate in the Pegasystems Limited Group Personal Pension Scheme made available to the Company's employees and subject to the rules of such scheme in place at the relevant time (the "Scheme").

Equity: As part of the Agreement with the Company, you will receive an equity grant of $2,500,000USD, subject to the approval of the Compensation Committee. The value of this grant will be comprised of 50% stock options and 50% Restricted Stock Units (RSUs) pursuant to our Long- Term Incentive Plan and is contingent on Compensation Committee approval at the meeting following your date of hire. The number of RSUs and Options granted will be determined based on the closing price of our common stock on the first business day of the month following Compensation Committee approval. The full terms of this grant will be conveyed to you in a separate document after you become a Pegasystems employee. As a special consideration, this equity grant will begin vesting on a quarterly basis following the approval of the grant date by the Compensation Committee. Additionally, in the event of a change of control resulting in termination of your employment – known as a double trigger - the remaining unvested value of this grant (and this grant only) will immediately vest.

Furthermore, in lieu of eligibility for an annual grant award in 2022, Pega will provide you with three separate equity grants for which Pega’s future financial statements will incur $1,500,000 of total expense to be awarded by the Compensation Committee at the meeting following your date of hire. The value of this grant will be comprised of 50% stock options and 50% Restricted Stock Units (RSUs). Each of these $500,000 grants will be awarded as separate acceleration opportunities based on the company achieving 100%+ ACV target as established by the Board and will be awarded in March of 2022 for the 2021 ACV target, March of 2023 for the 2022 ACV target, and March of 2024 for the 2023 target. The performance base vesting of these three grants will be governed as follows:

(A) immediately on grant date if ACV target which was set by the Board for previous year is achieved or (B) if ACV target not achieved, pursuant to our Long-Term Incentive Plan, 20% vest after first year and then evenly quarterly for the next four years (5% a quarter). Any and all subsequent grant awards will be governed by standard company vesting policies pursuant to our Long-Term Incentive Plan.

Benefits: Please refer to the UK benefit summary.

Confidential Information: Please refer to the Statement.

Restrictions after Employment: To protect the interests of the Company and/or each Group Company, you must comply with the post termination obligations set out in the Statement.

Please sign and return a copy of this Letter to confirm your acceptance of the Agreement. The Agreement will become binding between you and the Company on signature.

We look forward to welcoming you to the Company shortly. In the meantime, if you have any queries, please do not hesitate to contact me.

Yours sincerely,

Lesley Law

Statement of Terms and Conditions

Benefit Summary

I accept the terms of the Agreement with Pegasystems Limited and confirm receipt of the enclosed documents.

Signed: /s/ John Higgins Dated 13 December 2020