2005 Individual Bonus Targets for Pegasystems Inc.’s Section 16 Officers

                 
Name of Executive Officer   Title   Incentive Bonus Target
Alan Trefler
  Chief Executive Officer and
    105.6 %
 
  Chairman
       
Douglas Kra
  Vice President, Global Services
    40.0 %
Michael Pyle
  Senior Vice President,
    45.0 %
 
  Engineering
       
Christopher Sullivan
  Senior Vice President, Chief
    45.0 %
 
  Financial Officer and
       
 
  Treasurer
       
Michael Wallrich
  Senior Vice President, Global
    76.0 %
 
  Sales
       

In addition, the 2005 individual bonus target for Richard Jones, who is a Director of the Company and an employee, but not an Executive Officer, is 50.0%