EXHIBIT 10.2
AMENDMENT TO OPTION PURCHASE AGREEMENT

This Amendment (“Amendment”), dated as of February 21, 2006 (“Amendment
Effective Date”) is an amendment to that certain Option Purchase Agreement
(“Option Agreement”) dated as of April 29, 2004 by and among Datawatch
Corporation, a Delaware corporation with offices located at 271 Mill Road,
Quorum Office Park, Chelmsford, MA 01824 (“Datawatch”) jointly and severally
with Personics Corporation, a Delaware corporation with offices located at 271
Mill Road, Quorum Office Park, Chelmsford, MA 01824 (“Personics”) (Datawatch and
Personics are collectively referred to herein as “Buyer”), on the one hand, and
Raymond J. Huger, a sole proprietor doing business as Math Strategies, having
its principal place of business at 101 South Elm Street, Suite 212, Greensboro,
North Carolina 27401 (Huger and Math Strategies being referred to herein as
“Math Strategies”), on the other hand.

Recitals:

A.    Unless otherwise defined herein, all capitalized terms used herein shall
have the same meaning ascribed to them in the Option Agreement.

B.    Contemporaneously herewith, the parties have executed an amendment to the
License Agreement extending the term thereof until April 30, 2015.

C.    The Option to purchase the Software Products granted to Buyer under the
Option Agreement expires April 28, 2006.

D.    Buyer and Math Strategies have agreed to extend and modify the Option as
provided herein.

Now, Therefore, in consideration of the premises contained herein and other good
and valuable consideration, the receipt and sufficiency of which are hereby
expressly acknowledged by the parties, the parties hereby agree as follows:

1.    Section 2 of the Option Agreement is deleted in its entirety and replaced
with the following:

2.    Option Grant and Term. For one hundred dollars ($100) paid to Math
Strategies, the receipt and sufficiency of which is acknowledged by Math
Strategies, and otherwise subject to the provisions of this Agreement, Math
Strategies hereby grants to Buyer an option (“Option”) to purchase the Software
Products. The right of Buyer to exercise the Option shall commence as of April
29, 2004 and expire on the earlier of April 30, 2015, and the termination of the
License Agreement for any reason.

2.    Section 5 of the Option Agreement is hereby deleted in its entirety and
replaced with the following:

5.    Purchase Price. The purchase price (“Purchase Price”) for the Software
Products payable to Math Strategies at Closing shall be calculated in accordance
with the following formula: Purchase Price = A x 8.0/1.407693; where A equals
the sum of the
 
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royalties paid and payable for the four (4) calendar quarters immediately prior
to the date the Option is exercised by Buyer. For the sake of clarity, an
example of the calculation is set forth on Attachment A. 

3.    Section 6 is hereby amended by replacing, “125 High Street, Boston, MA
02210” with “Two International Place, Boston, MA 02110”; and replacing “Testa
Hurwitz & Thibeault, LLP” with “Choate, Hall & Stewart LLP.”

4.    All other provisions of the Option Agreement shall remain in full force
and effect.

In Witness Whereof, the parties have executed this Agreement as of the Amendment
Effective Date first above written.

THIS AGREEMENT CONTAINS BINDING ARBITRATION PROVISIONS THAT ARE ENFORCEABLE BY
THE PARTIES.

 

 
MATH STRATEGIES 
 
By:   /s/ Raymond J. Huger

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Raymond J. Huger, individually and as a
Sole Proprietorship
DATAWATCH CORPORATION
 
By:   /s/ Robert Hagger

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Name: Robert Hagger

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Title:   President & CEO , Duly Authorized

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Personics, Inc.
 
By:   /s/ Robert Hagger

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Name: Robert Hagger

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Title:   President & CEO , Duly Authorized

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ATTACHMENT A

Example of Purchase Price Calculation

Quarter
Royalty for Quarter
Royalty for 4 Preceding Quarters,
   
Inclusive
     
Q4-02
505660
1648077
Q1-03
305174
1536126
Q2-03
348836
1523521
Q3-03
318629
1478299
Q4-03
367594
1340233
Q1-04
339539
1374598
Q2-04
381931
1407693
Q3-04
342304
1431368
Q4-04
358310
1422084
Q1-05
410526
1493071
Q2-05
351041
1462181
Q3-05
395341
1515218
Q4-05
439963
1596871

Set forth above are the royalties paid by Datawatch to Math Strategies for each
quarter from Q4 of 2002 through Q4 of 2005. The calculations of the Purchase
Price if the Option was exercised immediately after the end of Q3 of 2004 would
be as follows:
 

 

Royalties paid for the four quarters ended at the end of Q3 of 2004:    $
1,431,368   Multiplied by 8 ÷ 1.407693, or 5.683057      x 5.683057   Purchase
Price (rounded to the nearest dollar)    $ 8,134,546.00  

 
 
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