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EXHIBIT 4.9

AVANADE INC.

EXERCISE AND EARLY EXERCISE NOTICE AND STOCK PURCHASE

AGREEMENT

2000 STOCK INCENTIVE PLAN

     By your signature and the signature of the Company’s representative below, you (“Employee”)
and the Company agree that you are purchasing shares of the Company’s Common Stock subject to the
terms and conditions of the Company’s 2000 Stock Incentive Plan (the “Plan”) and this Agreement.
Capitalized terms that are not defined in this Agreement have the meanings given to them in the
Plan.

	 	 	 	 	 
	Employee:
	 	 	 	 
	 

	 	 

	 	 
	Address:
	 	 	 	 
	 

	 	 

	 	 
	 	 
	 

	 	 

	 	 
	Taxpayer I.D. number:
	 	 	 	 
	 

	 	 

	 	 
	Grant Date:
	 	 	 	 
	 

	 	 

	 	 
	Type of Option:

	 	Nonqualified Stock Option	 	 
	 	 
	Exercise price per share:

	 	$
 

	 	 
	 	 
	Total number of shares subject to Option:
	 	 	 	 
	 

	 	 

	 	 
	 	 
	Total number of shares for which Option
is being exercised now (these shares are
referred to below as “Shares”):

	 	 
	 	 
	 	 
	Total exercise price for Shares:

	 	$                    (Please enclose a check for this amount)	 	 
	 	 
	Exercise Date:
	 	 	 	 
	 

	 	 

	 	 

	1.	 	Early Exercise for Unvested Shares                      (You must initial here if
Section 1 applies.)

     By initialing this Section 1, Employee hereby acknowledges that all or a portion of the Shares
being purchased under this Agreement are not vested as of the date of exercise according to the
vesting schedule contained in the agreement evidencing the Option (the “Option Agreement”). Any
Shares purchased hereunder pursuant to the exercise of any portion of the Option that is unvested
as of the date of exercise will be considered unvested shares (the “Unvested Shares”). The Unvested
Shares will vest (and to the extent so vested cease to be Unvested Shares) in accordance with the
vesting schedule contained in the underlying Option Agreement. Employee hereby grants to the
Company a right to repurchase the Unvested Shares (the “Repurchase Right for Unvested Shares”) for
so long as they remain Unvested Shares, subject to the terms and conditions set forth below.

     Employee understands that Employee has sole responsibility for determining whether to file an
election under Section 83(b) of the Internal Revenue Code of 1986, as

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amended (the “Code”), in connection with Employee’s exercise of the Option for Unvested Shares, as
discussed further in Section 8.

	2.	 	Payment of Exercise Price

     Prior to or concurrently with the delivery of this Agreement to the Company, Employee has
delivered the exercise price for the Shares in accordance with the terms of the Plan and the
Option Agreement.

	3.	 	Securities Law Compliance

     3.1 Employee represents and warrants that Employee (a) has been furnished with a copy of the
Plan and all information which Employee deems necessary to evaluate the merits and risks of the
purchase of the Shares, (b) has had the opportunity to ask questions and receive answers concerning
the information received about the Shares and the Company, and (c) has been given the opportunity
to obtain any additional information Employee deems necessary to verify the accuracy of any
information obtained concerning the Shares and the Company.

     3.2 Employee hereby confirms that Employee has been informed that the Shares have not been
registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state
securities laws pursuant to exemptions from registration. Employee further confirms that Employee
understands that the reliance by the Company on such exemptions is predicated in part on the truth
and accuracy of the statements by Employee in this Agreement.

     3.3 Employee hereby represents and warrants that Employee is purchasing the Shares for
Employee’s own account, for investment purposes only, and not with a view towards the distribution
or public offering of all or any part of the Shares.

     3.4 Employee hereby confirms that Employee understands that because the Shares have not been
registered under the Securities Act, Employee must continue to bear the economic risk of the
investment for an indefinite period of time and the Shares cannot be sold unless the Shares are
subsequently registered or an exemption from registration is available.

     3.5 Employee hereby agrees that Employee will in no event sell or distribute all or any part
of the Shares unless (a) there is an effective registration statement under the Securities Act and
applicable state securities laws covering any such transaction involving the Shares or (b) the
Company receives an opinion of Employee’s legal counsel (concurred in by legal counsel for the
Company) stating that such transaction is exempt from registration or the Company otherwise
satisfies itself that such transaction is exempt from registration.

     3.6 Employee hereby consents to the placing of a legend on Employee’s certificate(s) as set
forth in Section 10 and to the placing of a stop-transfer order on the books of the Company and
with any transfer agents against the Shares until the Shares may be legally resold or distributed.

     3.7 Employee hereby confirms that Employee understands that at the present time Rule 144 of
the Securities and Exchange Commission (the “SEC”) may not be relied on for the resale or
distribution of the Shares by Employee. Employee understands that the Company has no obligation to
Employee to register the Shares with the SEC and has not represented to Employee that it will so
register the Shares.

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     3.8 Employee confirms that Employee has been advised, prior to Employee’s purchase of the
Shares, that neither the offering of the Shares nor any offering materials have been reviewed by
any administrator under the Securities Act or any other applicable securities act (the “Acts”) and
that the Shares have not been registered under any of the Acts and therefore cannot be resold
unless they are registered under the Acts or unless an exemption from such registration is
available.

     3.9 Employee hereby agrees to indemnify the Company and hold it harmless from and against any
loss, claim or liability, including attorneys’ fees or legal expenses, incurred by the Company as a
result of any breach by Employee of, or any inaccuracy in, any representation, warranty or
statement made by Employee in this Agreement or the breach by Employee of any terms or conditions
of this Agreement.

	4.	 	Transfer Restrictions

     4.1 Restrictions on Transfer. Until the earliest of a Qualified IPO , a Corporate Transaction
(other than a Related Party Transaction) or July 1, 2005, the Shares may not be sold, assigned,
pledged, encumbered or otherwise transferred. If a Qualified IPO or a Corporate Transaction (other
than a Related Party Transaction) has not occurred on or prior to July 1, 2005, the Shares may be
sold, transferred, assigned, pledged, encumbered or otherwise transferred only in accordance with
the provisions of this Agreement. Except as otherwise provided in this Agreement or in the Option
Agreement, such restrictions on transfer, however, will not apply to (a) a gratuitous transfer of
the Shares, provided, and only if, Employee obtains the Company’s prior written consent to such
transfer, (b) a transfer of title to the Shares effected pursuant to Employee’s will or the laws of
intestate succession, or (c) a transfer to the Company in pledge as security for any purchase-money
indebtedness incurred by Employee in connection with the acquisition of the Shares.

     4.2 Voting Agreement. Unless extended by the Board of Directors of the Company from and after
the date that is sixty-one (61) days following the end of the first full Semi-Annual Exercise
Period which begins after the date hereof and in which the Employee could, pursuant to its terms,
exercise the Put Rights in respect of the Shares, the Employee agrees to vote the Shares with and
in proportion to how those investors named as parties on Attachment B to the Employee Stockholders
Agreement dated as of August 4, 2000, by and among the Company and certain other stockholders of
the Company, vote their shares of Series A Preferred Stock. This voting agreement is coupled with
an interest and may not be revoked during the term of the Employee Stockholders Agreement, which
agreement terminates upon the closing of a Qualified IPO. Employee agrees to bound by the terms of
the Employee Stockholders Agreement, and further agrees to take such action as is reasonably
required by the Company to enact such obligation, including without limitation agreeing to execute
an endorsement of the Employee Stockholders Agreement. For the purpose of this section only, Shares
includes all shares of commons stock of the Company held by the Participant, including, without
limitation, shares acquired by the Participant prior to the date hereof, and the parties agree that
the provisions of the section amend and supersede any and all prior voting agreement provisions
relating to such previously acquired shares of common stock.

     4.3 Transferee Obligations. Each person (other than the Company) to whom the Shares are
transferred by means of one of the permitted transfers specified in Section 4.1 must, as a
condition precedent to the validity of such transfer, acknowledge in writing to the Company

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that such person is bound by the provisions of this Agreement, to the same extent the Shares
would be so subject if retained by Employee.

	5.	 	Market Standoff

     In connection with any underwritten public offering by the Company of its equity securities
pursuant to an effective registration statement filed under the Securities Act, including the
Company’s initial public offering, Employee or any transferee (either being referred to herein as
“Employee”) agrees not to sell, make any short sale of, loan, hypothecate, pledge, assign, grant
any option for the purchase of, or otherwise dispose or transfer for value or agree to engage in
any of the foregoing transactions with respect to, any Shares without the prior written consent of
the Company or its underwriters. Such limitations will be in effect for such period of time as may
be requested by the Company or its underwriters, except that in no event will such period exceed
180 days. This market standoff provision will be in effect no longer than two years after the
closing date of a Qualified IPO.

	6.	 	Repurchase Right for Unvested Shares

     6.1 The Company may exercise a Repurchase Right for Unvested Shares on the earlier of (a) the
date Employee ceases to be employed by the Company or a Subsidiary for any reason whatsoever,
including, without limitation, termination by reason of Retirement, Disability or death or with or
without cause and (b) the date Employee or Employee’s legal representative attempts to sell,
exchange, transfer, pledge or otherwise dispose of any Unvested Shares.

     6.2 The Company may exercise a Repurchase Right for Unvested Shares by giving Employee written
notice within 60 days after (a) the date of such termination of employment with the Company or a
Subsidiary (or exercise of the Option, if later) or (b) the date the Company has received notice of
an attempted disposition. If the Company fails to give notice within such 60-day period, the
Repurchase Right for Unvested Shares will terminate, unless, to the extent permitted by applicable
law, Employee and the Company have extended the time for the exercise of the Repurchase Right for
Unvested Shares. The Repurchase Right for Unvested Shares must be exercised, if at all, for all the
Unvested Shares, except as Employee and the Company may otherwise agree.

     6.3 Payment to Employee by the Company will be made in cash (by check), by cancellation of all
or any portion of outstanding indebtedness of Employee to the Company, or by any combination
thereof, within 30 days after the date the Company mails the written notice of exercise of the
Repurchase Right for Unvested Shares. No interest will be paid on such amount. The purchase price
for each share being repurchased by the Company will be an amount equal to Employee’s original cost
per share, as may be adjusted as provided in Section 15 of the Plan. Employee will deliver the
Shares of stock being repurchased to the Company at the same time the Company delivers the purchase
price to Employee.

     6.4 Employee hereby authorizes and directs the Company’s Secretary (or other authorized
officer) or transfer agent to transfer to the Company or its assignee any Unvested Shares as
to which the Repurchase Right for Unvested Shares is exercised.

     6.5 The Repurchase Right for Unvested Shares will remain in full force and effect in the event
of a Corporate Transaction, except that the Repurchase Right for Unvested Shares will

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automatically be assigned to the Successor Corporation and the Repurchase Right will
automatically lapse if and to the same extent that the vesting of the underlying Option would
have accelerated in connection with the Corporate Transaction.

     6.6 The Company may at any time require Employee to deposit any certificate or certificates
evidencing the Unvested Shares with an agent designated by the Company under the terms and
conditions of escrow and security agreements approved by the Company.

     6.7 Notwithstanding any other provision of this Agreement, if a Qualified IPO or a Corporate
Transaction other than a Related Party Transaction has not occurred on or prior to July 1, 2005,
and if Employee ceases to be employed by the Company or a Subsidiary for any reason other than
Disability or death, then until July 1, 2005 all Unvested Shares that have vested will be subject
to repurchase as if they were Unvested Shares under the terms and conditions of this Section 6.

	7.	 	Assignment Separate From Certificate

     As security for the faithful performance of this Agreement, Employee agrees, immediately upon
receipt of the certificate(s) evidencing any Shares, to deliver such certificate(s), together with
a stock power in the form attached to this Agreement as Exhibit A, executed by Employee and by
Employee’s spouse, if any (with the transferee, certificate number, date and number of Shares left
blank), to the Secretary of the Company or its designee (“Escrow Holder”), who is hereby appointed
to hold such certificate(s) and stock power in escrow and to take all such actions and to
effectuate all such transfers and/or releases of such Shares as are in accordance with the terms of
this Agreement. Employee and the Company agree that Escrow Holder will not be liable to any party
to this Agreement (or to any other party) for any actions or omissions unless Escrow Holder is
grossly negligent relative thereto. Escrow Holder may rely on any letter, notice or other document
executed by any signature purported to be genuine and may rely on advice of counsel and obey any
order of any court with respect to the transactions contemplated in this Agreement. The Shares will
be released from escrow upon termination of the transfer restrictions imposed by this Agreement,
except that such release will not affect the rights of the Company with respect to any pledge of
Shares to the Company.

	8.	 	Section 83(b) Election

     If the Shares are acquired under this Agreement pursuant to the exercise of the Option for
Unvested Shares, Employee understands that under Section 83(a) of the Code, the excess of the Fair
Market Value of the Unvested Shares on the date any forfeiture restrictions on the Unvested Shares
lapse over the exercise price paid for such Shares will be taxable as ordinary income, subject to
payroll and withholding tax and tax reporting, on the date the forfeiture restrictions lapse. For
this purpose, the term “forfeiture restrictions” means the right of the Company to buy back the
Unvested Shares pursuant to the Repurchase Right for Unvested Shares set forth in Section 6.
Employee understands that he or she may elect under Section 83(b) of the Code to be taxed at the
time the Unvested Shares are acquired upon exercise of the Option, rather than when and as the
Unvested Shares cease to be subject to the forfeiture restrictions. Such election (the “83(b)
Election”) must be filed with the Internal Revenue Service within 30 days from the date the
Unvested Shares are acquired upon exercise of the Option. Even if the Fair Market Value of the
Unvested Shares on the date the Option is exercised equals the exercise price (and thus no tax is
payable), the election must be made to avoid the risk of adverse tax consequences in the future.

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Employee understands that there is a risk that the Internal Revenue Service might challenge the
Plan Administrator’s determination of the Fair Market Value of the Shares. Employee also
understands that (a) Employee will not be entitled to a deduction for any ordinary income
previously recognized as a result of the 83(b) Election if the Unvested Shares are subsequently
forfeited to the Company, and (b) the 83(b) Election may cause Employee to recognize more
compensation income than Employee would have otherwise recognized if the Internal Revenue Service
determines that the value of the Unvested Shares on the date the Option was exercised is greater
than the Fair Market Value of the Shares on that date as determined by the Plan Administrator
and/or the value of the Unvested Shares subsequently declines.

     THE FORM FOR MAKING THE 83(b) ELECTION IS ATTACHED TO THIS AGREEMENT AS EXHIBIT C. EMPLOYEE
UNDERSTANDS THAT FAILURE TO MAKE THIS FILING WITHIN THE APPLICABLE 30-DAY PERIOD MAY RESULT IN THE
RECOGNITION OF ORDINARY INCOME BY EMPLOYEE AS THE FORFEITURE RESTRICTIONS LAPSE. Employee further
understands that an additional copy of such election form should be filed with Employee’s federal
income tax return for the calendar year in which the date of this Agreement falls. Employee
acknowledges that the foregoing is only a summary of the federal income tax laws that apply to the
purchase of the Unvested Shares under this Agreement and does not purport to be complete. EMPLOYEE
FURTHER ACKNOWLEDGES THAT THE COMPANY HAS DIRECTED EMPLOYEE TO SEEK INDEPENDENT ADVICE REGARDING
THE APPLICABLE PROVISIONS OF THE CODE, THE INCOME TAX LAWS OF ANY MUNICIPALITY, STATE OR FOREIGN
COUNTRY IN WHICH EMPLOYEE MAY RESIDE, AND THE TAX CONSEQUENCES OF EMPLOYEE’S DEATH.

     Employee agrees to execute and deliver to the Company with this Agreement a copy of the
Acknowledgment and Statement of Decision Regarding Section 83(b) Election (the “Acknowledgment”)
attached hereto as Exhibit B. Employee further agrees that Employee will execute and deliver to the
Company with this Agreement a copy of the 83(b) Election attached hereto as Exhibit C if Employee
chooses to make such an election.

	9.	 	First Refusal, Repurchase and Put Rights

     Subject to Section 9.5, the Shares will be subject to the following first refusal, repurchase
and put rights beginning on July 2, 2005 if a Qualified IPO or a Corporate Transaction (other than
a Related Party Transaction) has not occurred on or prior to July 1, 2005. Such rights will
terminate upon the closing of a Qualified IPO.

     9.1 Rights of First Refusal. Before any Shares held by Employee may be sold or otherwise
transferred (including any assignment, pledge, encumbrance or other disposition of the Shares, but
not including a permitted transfer under Section 4.1), the Company will have a right of first
refusal to purchase the Shares on the terms and conditions set forth in this Section 9.1 (the
“Right of First Refusal”).

          9.1.1 In the event Employee desires to accept a bona fide third-party offer for the sale or
transfer of any or all of the Shares, Employee will promptly deliver to the Company a written
notice (the “First Refusal Notice”) stating the terms and conditions of any proposed sale or
transfer, including (a) Employee’s bona fide intention to sell or otherwise transfer such Shares,
(b) the name of each proposed Employee or other transferee (the “Proposed Transferee”), (c) the

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number of Shares to be transferred to each Proposed Transferee, and (d) the bona fide cash price or
other consideration for which Employee proposes to transfer the Shares (the “Offered Price”).
Employee will provide satisfactory proof that the disposition of such shares to such Proposed
Transferee would not be in contravention of the provisions of Section 1.

          9.1.2 At any time within the Semi-Annual Exercise Period during which a First Refusal Notice
is received, the Company or its assignee may, by giving written notice to Employee, elect to
purchase all or any portion of the Shares proposed to be transferred to any one or more of the
Proposed Transferees, at the purchase price determined in accordance with Section 9.1.3.

          9.1.3 The purchase price for the Shares purchased under this Section 9.1 will be the Offered
Price. If the Offered Price includes consideration other than cash, the cash equivalent value of
the noncash consideration will be determined by the Company’s Board of Directors in good faith.

          9.1.4 Payment of the purchase price will be made, in the discretion of the Plan Administrator,
either (a) in the manner set forth in Section 9.3 or (b) in the manner and at the time(s) set forth
in the First Refusal Notice.

          9.1.5 If any of the Shares proposed in the First Refusal Notice to be transferred to a given
Proposed Transferee are not purchased by the Company and/or its assignee as provided in this
Section 9.1, then Employee may sell or otherwise transfer such Shares to that Proposed Transferee
at the Offered Price or at a higher price, provided that such sale or other transfer is consummated
within 60 days after the date of the First Refusal Notice, and provided that any such sale or other
transfer is effected in accordance with any applicable securities laws and the Proposed Transferee
agrees in writing that the provisions of this Section 9.1 will continue to apply to the Shares in
the hands of such Proposed Transferee. If the Shares described in the First Refusal Notice are not
transferred to the Proposed Transferee within such period, or if Employee proposes to change the
price or other terms to make them more favorable to the Proposed Transferee, a new First Refusal
Notice will be given to the Company, and the Company or its assignee will again be offered the
Right of First Refusal before any Shares held by Employee may be sold or otherwise transferred.

     9.2 Repurchase and Put Rights

          9.2.1 The Company may exercise a right to repurchase any or all of the Shares (the “Repurchase
Right”) in the event Employee terminates employment with the Company or a Subsidiary for any reason
whatsoever, including, without limitation, termination by reason of Retirement, Disability or
death, or with or without cause. The Company may exercise the Repurchase Right by delivering a
notice to Employee specifying the number of Shares to be purchased (the “Call Notice”).

          9.2.2 Any Employee may cause the Company or an affiliate to purchase any or all of the Shares
held by Employee (the “Put Right”) by delivering written notice to the Company specifying the
number of Shares to be purchased by the Company substantially in a form to be provided by the
Company (the “Put Notice”).

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          9.2.3 The purchase price for any Shares to be purchased pursuant to a Call Notice or a Put
Notice will be the Fair Market Value of the Shares as set forth in the Year-End Valuation Notice or
the Six-Month Valuation Notice for the applicable Semi-Annual Exercise Period (as such terms are
defined in Section 2 of the Plan).

     9.3 Payment of Purchase Price. The purchase of the Shares subject to purchase under this
Section 9 will close within 60 days after receipt by the Company of the applicable First Refusal
Notice, Call Notice or Put Notice. Unless otherwise mutually agreed by the involved parties, the
closing of any purchase by the Company under this Section 9 will take place at the principal office
of the Company. Subject to the maximum payment limitations set forth in Section 9.6, the purchase
price for any Shares acquired through such notices will be paid in the form of (a) cash (by check),
(b) promissory note as described in Section 9.4, (c) the Company’s assets, or (d) a combination
thereof as determined by the Company in its sole discretion, except that any payment involving, in
whole or in part, the Company’s assets must be approved by Employee.

     9.4 Promissory Note. Subject to the maximum payment limitations set forth in Section 9.6, any
promissory note issued for the purchase of Shares under this Section 9 (the “Repurchase Note”) will
bear interest at the then-current weighted average borrowing rate of the Company, compounded
annually, and will be paid in annual installments of interest only for four years, with all
principal and accrued interest due in full on the fifth anniversary of such Repurchase Note. Each
Repurchase Note will be subordinate to all other lenders of the Company and subject to any
contractual or lending restrictions on the Company for payments of compensation or redemption of
Shares, except that such Repurchase Notes will be paid prior to any distributions made by the
Company attributable to any outstanding Shares of the Company. Employee will execute all documents
and agreements considered necessary by the Company’s Board of Directors to effectuate the issuance
of the Repurchase Note.

     9.5 Exercise Restrictions. Employee may not submit a First Refusal Notice or a Put Notice to
the Company and the Company may not submit a Call Notice to Employee earlier than six months and
one day following the date the Shares were acquired by Employee (or any shorter period specified by
the Company’s outside accountants as sufficient to avoid a charge to the Company’s earnings for
financial reporting purposes). Such notices may be submitted only during a Semi-Annual Exercise
Period. Employee may not submit a First Refusal Notice to the Company if the Company has previously
submitted a Call Notice to Employee.

     9.6 Maximum Cash Payment. Notwithstanding any other provisions of this Section 9, and except
as otherwise provided in this Section 9.6 or as otherwise approved by the Company’s Board of
Directors, in no event will the Company be obligated, during any calendar year, to make aggregate
payments of cash (net of any offsetting debts) to all persons who have sold shares of Common Stock
to the Company pursuant to first refusal, repurchase and put rights under the Plan and applicable
agreements and any other compensatory plan or arrangement of the Company during such year or any
prior year for payment of the purchase price, pursuant to the terms of a Note or otherwise relating
to the purchase of such Shares in excess of a sum equal to (a) 10% of Net Earnings for the
Company’s prior fiscal year (Net Earnings to be determined by the Company’s outside accountants on
the basis of the Company’s financial statements) (the “Maximum Annual Payment”) plus (b) any unused
carryforward of Maximum Annual Payment from any prior year commencing on the date the first notice
(as applicable) is delivered to or by the Company. For this purpose, Net Earnings means the net
earnings of the Company for a fiscal

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year, as reported in the Company’s consolidated financial statements for such year, adjusted to
eliminate the effect of changes in accounting principles, and “extraordinary items” determined
under generally accepted accounting principles.

     In addition, the Company will in no event be required to make any payment which would, in the
opinion of the Company’s Board of Directors, (a) be in violation of applicable law, (b) violate a
covenant imposed by a bank or other lender, lessor or other bona fide third-party contracting party
of the Company, or (c) unreasonably limit the ability of the Company to meet its cash obligations
in the ordinary course of business.

     Any cash payment made that is subject to such limitations will be applied first to accrued
interest on any outstanding Notes to the extent of and in proportion to such accrued interest
outstanding as of the last day of the month prior to any cash payment and then to the unpaid
principal balance of outstanding Notes, beginning with the oldest of such Notes and ending with the
most recently issued of such Notes, except that in no event will any payment under a Note be
deferred more than 10 years after the issuance thereof. The Company will use reasonable efforts to
provide its best information regarding the maximum cash payment available to Employees and other
interested parties no later than the beginning of each Semi-Annual Exercise Period. The Company
will seek to accelerate payment for redeemed shares to the extent that cash is reasonably available
and provided such payments do not result in violation of applicable contractual obligations or law.

     9.7 Further Acts. Whenever the Company will, pursuant to this Agreement, purchase Shares, each
Employee or the legal representative of Employee will do all things and execute and deliver all
papers as may be necessary to consummate such purchase.

     9.8 Indebtedness to Company of Employee. In the event the Company purchases an Employee’s
Shares pursuant to this Agreement, the Company may set off against the purchase price for the
Shares any indebtedness owed to the Company by such Employee or his or her estate, whether or not
such indebtedness is then due.

	10.	 	Legends

     Employee understands and agrees that the Shares are subject to first refusal and/or repurchase
rights, as set forth in this Agreement. Employee understands that the certificate(s) representing
the Shares will bear legends in substantially the following forms:

     “The securities represented by this certificate are subject to certain restrictions on public
resale and transfer and first refusal and/or repurchase rights held by the issuer and/or its
assignee(s) and may not be sold, assigned, transferred, encumbered or in any way disposed of except
as set forth in a stock purchase agreement between the issuer and the original purchaser of these
shares, a copy of which may be obtained at the principal office of the issuer. Such transfer
restrictions and first refusal and/or repurchase rights are binding on transferees of these
shares.”

     “The securities represented by this certificate have not been registered under the Securities
Act of 1933, as amended (the “Act”), or under applicable state securities laws. These securities
are subject to restrictions on transferability and resale and may not be transferred or resold
except as permitted under the Act and applicable state securities laws, pursuant to registration or
exemption therefrom. Investors should be aware that they may be required to

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bear the financial risks of this investment for an indefinite period of time. The issuer of these
securities may require an opinion of counsel in form and substance satisfactory to the issuer to the
effect that the proposed transfer or resale is in compliance with the Act and any applicable state
securities laws.”

11. Stop-Transfer Notices

     Employee understands and agrees that, in order to ensure compliance with the restrictions
referred to in this Agreement, the Company may issue appropriate “stop-transfer” instructions to
its transfer agent, if any, and that, if the Company transfers its own securities, it may make
appropriate notations to the same effect in its own records. The Company will not be required to
(a) transfer on its books any Shares that have been sold or transferred in violation of the
provisions of this Agreement or (b) treat as the owner of the Shares, or otherwise accord voting,
dividend or liquidation rights to, any transferee to whom the Shares have been transferred in
contravention of this Agreement.

12. Independent Tax Advice

     Employee acknowledges that determining the actual tax consequences to each particular Employee
of exercising the Option or disposing of the Shares may be complicated. These tax consequences will
depend, in part, on Employee’s specific situation and may also depend on the resolution of
currently uncertain tax law, and other variables not within the control of the Company. Employee is
aware that Employee should consult a competent and independent tax advisor for a full understanding
of the specific tax consequences to Employee prior to exercising the Option or disposing of the
Shares. Prior to exercising the Option, Employee either has consulted with a competent tax advisor
independent of the Company to obtain tax advice concerning the exercise of the Option in light of
Employee’s specific situation or has had the opportunity to consult with such a tax advisor but
chose not to do so.

13. Withholding and Disposition of Shares

     As described in the Option Agreement, Employee will make arrangements satisfactory to the
Company for the payment of any federal, state, local or foreign withholding tax obligations that
arise upon purchase of the Shares

14. General Provisions

     14.1 Assignment. The Company may assign its Rights of First Refusal and/or Repurchase Rights
or its obligations under any Put Rights at any time, whether or not such rights are then
exercisable, to any person or entity selected by the Company’s Board of Directors, including,
without limitation, one or more stockholders of the Company.

     14.2 Notices. Any notice required in connection with (a) the Company’s first refusal and/or
repurchase rights or (b) the disposition of any Shares covered thereby will be given in writing and
will be deemed effective upon personal delivery or upon deposit in the U.S. mail, registered or
certified, postage prepaid and addressed to the party entitled to such notice at the address
indicated in this Agreement or at such other address as such party may designate by 10 days’
advance written notice under this Section 14.2 to all other parties to this Agreement.

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     14.3 No Waiver. No waiver of any provision of this Agreement will be valid unless in writing
and signed by the person against whom such waiver is sought to be enforced, nor will failure to
enforce any right under this Agreement constitute a continuing waiver of the same or a waiver of
any other right under this Agreement.

     14.4 Cancellation of Shares. If the Company or its assignees will make available, at the time
and place and in the amount and form provided in this Agreement, the consideration for the Shares
to be purchased by the Company pursuant to the exercise of the Rights of First Refusal, Repurchase
Rights and/or Put Rights in accordance with the provisions of this Agreement, then, from and after
such time, the person from whom such Shares are to be repurchased will no longer have any rights as
a Employee of such Shares (other than the right to receive payment of such consideration in
accordance with this Agreement). Such Shares will be deemed purchased in accordance with the
applicable provisions of this Agreement, and the Company or its assignees will be deemed the owner
and Employee of such Shares, whether or not the certificates therefor have been delivered as
required by this Agreement.

     14.5 Employee Undertaking. Employee hereby agrees to take whatever additional action and
execute whatever additional documents the Company may deem necessary or advisable in order to carry
out or effect one or more of the obligations or restrictions imposed on either Employee or the
Shares pursuant to the express provisions of this Agreement.

     14.6 Agreement Is Entire Contract. This Agreement constitutes the entire contract between the
parties hereto with regard to the subject matter hereof. This Agreement is made pursuant to the
provisions of the Plan and will in all respects be construed in conformity with the express terms
and provisions of the Plan.

     14.7 Successors and Assigns. The provisions of this Agreement will inure to the benefit of,
and be binding on, the Company and its successors and assigns and Employee and Employee’s legal
representatives, heirs, legatees, distributees, assigns and transferees by operation of law,
whether or not any such person will have become a party to this Agreement and agreed in writing to
join herein and be bound by the terms and conditions hereof.

     14.8 No Employment Contract. Nothing in this Agreement will affect in any manner whatsoever
the right or power of the Company or a Subsidiary to terminate Employee’s employment with the
Company, for any reason, with or without cause.

     14.9 Stockholder of Record. Employee will be recorded as a stockholder of the Company and will
have, subject to the provisions of this Agreement and the Plan, all the rights of a stockholder
with respect to the Shares.

     14.10 Counterparts. This Agreement may be executed in two or more counterparts, each of which
will be deemed an original, but which, upon execution, will constitute one and the same instrument.

     14.11 Governing Law. This Agreement will be governed by and construed in accordance
with the laws of the State of Washington.

[Remainder of page intentionally left blank.]

-11-

 

     IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year indicated
above as the Exercise Date.

	 	 	 	 	 
	 	AVANADE INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 	 
	 	 	Address:	 	 
	 
	 	EMPLOYEE

 	 
	 	Printed Name:	 	 
	 

     By his or her signature below, the spouse of Employee, if such Employee is legally married as
of the date of Employee’s execution of this Agreement, acknowledges that he or she has read this
Agreement and the Plan and is familiar with the terms and provisions of this Agreement and the
Plan, and agrees to be bound by all the terms and conditions of this Agreement and the Plan.

	 	 	 	 	 
	 	 	 
	 	Dated: 	 

	 
	 
	 	 	 
	 	Spouse’s Signature 	 
	 
	 	 	 
	 	Printed Name 	 
	 

     By his or her signature below, Employee represents that he or she is not legally married as of
the date of executing this Agreement.

	 	 	 	 	 
	 	 	 
	 	Dated: 	 

	 
	 
	 	 	 
	 	Employee’s Signature	 
	 

-12-

 

RECEIPT

               
                    
                 hereby acknowledges receipt from                               
in payment for                  shares of Common Stock of Avanade Inc., a Washington corporation,
of $                in the form of

	 	o  	 	Cash
	 
	 	o  	 	Check (personal, cashier’s or bank certified)
	 
	 	o  	 	                    
 shares of the Company’s Common Stock, fair
market value $                     per share, held by the optionee for a
period of at least six months
	 
	 	o  	 	Copy of irrevocable instructions to broker
	 
	 	o  	 	Other:                                         

	 	 	 	 	 	 	 
	Date:

	 
	 	 	By:
	 	 

	 	 	 	 	 	 	 
	FMV on such date: $
	 	 	 	For:
	 	Avanade Inc.

-13-

 

EXHIBIT A

To be completed by Avanade Inc.

STOCK POWER AND ASSIGNMENT

SEPARATE FROM CERTIFICATE

     To be completed by Avanade Inc.

STOCK POWER AND ASSIGNMENT

SEPARATE FROM CERTIFICATE

     FOR VALUE RECEIVED and pursuant to that certain Early Exercise Notice and
Stock Purchase Agreement dated as of                          ,
           , the undersigned hereby sells,
assigns and transfers unto                                                          
shares of the Common
Stock of Avanade Inc., a Washington corporation, standing in the undersigned’s name on the
books of said corporation represented by Certificate No.           delivered herewith, and does
hereby irrevocably constitute the Secretary of said corporation as attorney-in-fact, with full
power of substitution, to transfer said stock on the books of said corporation.

	 	 	 
	Dated:  

	 	 
	 
	 	 
	 
	 	 
	Signature: 

	 	 
	 
	 	 
	Please print name: 

	 	 
	 
	 	 
	 
	 	 
	Spouse’s signature, if any: 

	 	 
	 
	 	 
	Please print name: 

	 	 

-14-

 

EXHIBIT B

ACKNOWLEDGMENT AND STATEMENT OF DECISION

REGARDING SECTION 83(b) ELECTION

(Only to be used if exercising Unvested Shares in the United States)

     The undersigned, a purchaser of                     
shares of Common Stock of Avanade Inc., a Washington
corporation (the “Company”), by exercise of an option (the “Option”) granted pursuant to the
Company’s 2000 Stock Incentive Plan (the “Plan”), hereby states as follows:

     1.       The undersigned acknowledges receipt of a copy of the Plan relating to the offering of such
shares. The undersigned has carefully reviewed the Plan and the Option Agreement pursuant to which
the Option was granted.

     2.       The undersigned either (check and complete as applicable):

	 	(a)	       	 has consulted, and has been fully advised by, the undersigned’s own tax advisor,
                                                            , whose business address is
                                                  , regarding the federal, state and local tax consequences of
purchasing shares under the Plan, and particularly regarding the
advisability of making an election pursuant to Section 83(b) of the
Internal Revenue Code of 1986, as amended (the “Code”) and pursuant to the
corresponding provisions, if any, of applicable state law; or
	 
	 	(b)	       	has knowingly chosen not to consult such a tax advisor.

     3.       The undersigned hereby states that the undersigned has decided (check as applicable):

	 	(a)	       	to make an election pursuant to Section 83(b) of the Code, and is submitting to the
Company, together with the undersigned’s executed Early Exercise Notice and Stock Purchase
Agreement, an executed form entitled “Election Under Section 83(b) of the Internal
Revenue Code of 1986”;
	 
	 	(b)	       	not to make an election pursuant to Section 83(b) of the Code.

     4. Neither the Company nor any subsidiary or representative of the Company has made any
warranty or representation to the undersigned with respect to the tax consequences of the
undersigned’s purchase of shares under the Plan or of the making or failure to make an election pursuant to Section 83(b) of
the Code or the corresponding provisions, if any, of applicable state law.

	 	 	 	 	 
	Dated:

	 	 	 	 
	 

	 	 	 	 
Employee
	 
	 	 	 	 
	 

	 	 	 	 
Print Name
	 
	 	 	 	 
	Dated:

	 	 	 	 
	 

	 	 	 	 
Spouse of Employee
	 
	 	 	 	 
	 

	 	 	 	 
Print Name

-15-

 

EXHIBIT C

ELECTION UNDER SECTION 83(b)

OF THE INTERNAL REVENUE CODE OF 1986

(For Nonqualified Stock Options)

(Only to be used if exercising Unvested Shares in the United States)

     The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue
Code, to include in taxpayer’s gross income for the current taxable year the amount of any
compensation taxable to taxpayer in connection with taxpayer’s receipt of the property
described below:

	1.	 	The name, address, taxpayer identification number and taxable year of the undersigned are as
follows:

NAME OF TAXPAYER:
 

NAME OF SPOUSE:
 

ADDRESS:
 

 

IDENTIFICATION NO. OF TAXPAYER:
 

IDENTIFICATION NO. OF SPOUSE:
 

TAXABLE YEAR:
 

	2.	 	The property with respect to which the election is made is described as follows:

                    
shares of the Common Stock, par value $0.0001 per share, of Avanade Inc., a Washington
corporation (the “Company”).
	 
	3.	 	The date on which the property was transferred is                     .
	 
	4.	 	The property is subject to the following restrictions:
	 
	 	 	The property is subject to a repurchase right pursuant to which the Company has the
right to acquire the property at the
original purchase price if for any reason taxpayer’s service with the Company is
terminated. The Company’s repurchase
right lapses in a series of installments over a      -year period ending on
        
                   .
	 
	5.	 	The aggregate fair market value at the time of transfer, determined without regard to
any restriction other than a restriction which by its terms will never lapse, of such
property is $                    .
	 
	6.	 	The amount (if any) paid for such property is $                    .

     The undersigned has submitted a copy of this statement to the person for whom the
services were performed in connection with the undersigned’s receipt of the
above-described property. The undersigned is the person performing the services in
connection with the transfer of said property.

     The undersigned understands that the foregoing election may not be revoked
except with the consent of the Commissioner of Internal Revenue.

	 	 	 	 	 
	Date:

	 	 
	 	Signature:  

	 
	 	 	 	 
	 

	 	 	 	Printed name of employee: 

	 
	 	 	 	 
	Date:

	 	 	 	Signature: 

	 
	 	 	 	 
	 

	 	 	 	Printed name of spouse of employee: 

-16-

 

Distribution of Copies

	1.	 	File original with the Internal Revenue Service Center where the taxpayer’s income tax return
will be filed. Filing must be made by no later than 30 days after the date the property was
transferred.
	 
	2.	 	Attach one copy to the taxpayer’s income tax return for the taxable year in which
the property was transferred.
	 
	3.	 	Mail one copy to the Company at the following address:

Avanade Inc.

Attention: General Counsel

2211 Elliott Ave.

Seattle, WA 98121

-17-exv10w2

 

EXHIBIT 10.2

EMPLOYMENT AGREEMENT

     This Agreement, dated as of November 9, 2001, is made and entered into by and between Avanade
Inc., a corporation organized under the laws of the State of Delaware (the “Company”), and Dennis
Knapp (“Employee”). For the definitions of certain terms used in this Agreement, see Section 7
below.

     The Company and Employee agree as follows:

Section 1. Employment

     1.1 The Company hereby employs Employee, and Employee hereby accepts employment, as an
employee of the Company for the Term (as defined in Section 3.1), subject to and in
accordance with the provisions of this Agreement.

     1.2 Employee will report to the CEO, or his designee. From the date of this Agreement through
its termination, Employee will serve in such positions as directed by the the Board of Directors of
the Company (the “Board”) and/or the Chief Executive Officer.

     1.3 During the Term, Employee will devote his best efforts, special expertise and full
business time and attention to the Company’s business to the exclusion of all other employment,
engagements, consulting or other business activities, unless otherwise approved in writing by the
Board or the President. Subject to direction of the Board, Employee will have such duties,
responsibilities, powers and authority that are prescribed by the Board, the President or the
bylaws of the Company.

Section 2. Compensation

     2.1 From the date of this Agreement until otherwise directed by the Board, the Company will
pay Employee a base salary at the annual rate of $215,000 prorated on a daily basis for any period
less than a full year. Unless otherwise agreed upon by the parties, the Company will pay Employee’s
base salary accrued in arrears twice monthly, subject to federal income tax and other applicable
withholding.

     2.2 In addition to Employee’s base salary under Section 2.1, the Company will pay Employee
such bonuses and other incentive compensation as may be determined from time to time by the Board.
The Employee is initially eligible for an annual cash bonus with a target of 40% of base salary,
subject to the sole and complete discretion of the Compensation Committee of the Board.

     2.3 The Company will grant Employee shares of the Company’s common stock and options to
purchase shares of the Company’s common stock as set forth in this Section 2.3. Employee’s stock
and option grants will be subject in all cases to Board or Compensation

1

 

Committee approval, and subject to the definitions and other terms and conditions of the Company’s
2000 Stock Incentive Plan (as the same may be amended from time to time, the “SIP”) and Employee’s
stock option agreement.

	 	(a)	 	A grant of 50,000 shares of common stock of the Company (the
“Grant Shares”) at a fair market valuation to be determined by the Board on
the date the Board makes the grant and subject to the terms and conditions set
forth by the Board in a grant letter to accompany the Grant Shares.
	 
	 	(b)	 	An option to purchase 50,000 shares of the Company’s common
stock at a price equal to the fair market value of the common stock on the
date the Board makes the grant. This option is subject to a vesting schedule
of 25% at the end of year 1 and 1/48th every month thereafter (a four-year
vesting schedule).
	 
	 	(c)	 	The stock grant, the options and any shares acquired upon
exercise of the options will not be transferable or assignable until the
earliest of a qualified IPO of the Company, July 1, 2005, or in the event of
certain transactions (as further defined in the SIP, the stock option
agreements and/or the grant letter accompanying the Grant Shares).
	 
	 	(e)	 	The options will be for a term of ten (10) years, subject to
earlier termination in the event of any termination of Employee’s employment
and certain other events as provided for in the SIP or the stock option
agreement.
	 
	 	(f)	 	If Employee’s employment terminates prior to a qualified IPO
of the Company, July 1, 2005, or certain corporate transactions (as defined in
the SIP or the stock option agreements), other than for death or disability,
then all of Employee’s options will terminate regardless of whether they are
vested or unvested, and any shares acquired upon exercise of an option will be
subject to repurchase, at Company’s discretion, by the Company at the exercise
price paid.
	 
	 	(g)	 	Employee’s stock option agreement will provide that vesting
will be accelerated

	 	(i)	 	one year in the event of certain corporate transactions
(excluding, for this purpose, acquisitions of control by existing
Company shareholders), and
	 
	 	(ii)	 	one-hundred percent (100%) if (i)
Employee’s options are not assumed or replaced by comparable options
or cash equivalents of the acquiring company in certain corporate
transactions or

2

 

(ii) Employee’s options are assumed in certain corporate
transactions, but Employee’s employment is terminated by the
acquiring company without Cause or if Employee leaves for good
reason within three years after the corporate transaction,

except that such acceleration will not occur if it would prevent the
corporate transaction from otherwise qualifying as a pooling of
interests for financial accounting purposes.

     2.4 Upon Employee’s receipt of the Grant Shares, the Company will loan
Employee the amount of Employee’s income and payroll tax liability arising from the receipt
of the Grant Shares, which loan will be made pursuant to a full-recourse promissory note in
the form of Exhibit A hereto (the “Note”). The Note shall provide for interest at the
applicable federal rate on the date of the execution of the Note, and the principal amount
payable under the Note shall be amortized as follows: 25% after the first year, and 2.0833%
(1/48th) per month thereafter; corresponding interest payments will be made at the time of the
principal payments. The Note will be secured by the shares of stock received under
Section 2.3(a) pursuant to the pledge agreement attached hereto as Exhibit B.

     (a) During the term of Employee’s employment with the Company, immediately prior to
the due date of any payment of principal or interest under the Note, the Company will pay
to Employee a cash bonus such that, after setting aside an amount equal to Employee’s
income tax liability on the cash bonus, Employee is left with an amount equal to the loan
payment then owed to the Company. The Company’s obligations under this Section 2.4(a) shall
terminate as of the date of termination of Employee’s employment, and any bonus amounts
owed by the Company with respect to the first loan payment due following the date of
termination shall be prorated through the date of termination.

     (b) For purposes of calculating Employee’s income tax liability under this Section
2.4, Employee will be deemed to be subject to taxation at the highest marginal income tax
rates imposed on individuals under federal and any applicable state tax laws.

     2.5 Termination of Employment

     (a) Upon the termination of Employee’s employment by the Company for Cause prior
to the earlier of (i) a qualified IPO or (ii) July 1, 2005 (such earlier date, a “Share
Trigger Event”), all of the Grant Shares shall be returned to the Company in exchange for
the cancellation of all amounts owing under the Note and the corresponding loan, and
neither the Company nor the Employee shall owe any further amounts to the other with
respect to the Grant Shares, such loan or the Note.

3

 

     (b) Upon the termination of Employee’s employment, other than by the Company for
Cause prior to a Share Trigger Event, the Company shall have the right, at its election, to
purchase from Employee, and Employee shall have the right, at his or her election, to cause
the Company to purchase, the Grant Shares at a purchase price equal to their fair market
value. Either party may elect to exercise his, her or its right under this Section 2.5(b)
by a written notice to the other party. Upon receipt of such written notice by either
party, the loan underlying the Note shall accelerate and the principal amount of the Note
plus any accrued unpaid interest shall be immediately due and payable in full by Employee.
If the Company and the Employee are unable to determine the fair market value of the Grant
Shares within 15 business days of the termination of Employee’s employment, then each party
shall retain an investment banking firm of national reputation to provide a determination
of such valuation within 20 business days after the expiration of such 15 business day
period. Each of these investment banks shall be directed to consider the value a willing
buyer would pay a willing seller for the Company’s shares as on an ongoing business entity,
without any discount for minority interests but considering all other known facts, events
and circumstances as then existing relevant to the value of such interest. In the event
that the difference between the valuations provided by the two investment banking firms to
the parties (which amount shall be referred to as the “Valuation Difference”) does not
exceed twenty percent (20%) of the larger of the two valuations, the “fair market value”
for purposes hereof shall be the average of the two valuations. If the Valuation Difference
exceeds twenty percent (20%) of the larger of the two valuations, the two investment
banking firms shall select a third investment banking firm of national reputation to
calculate the valuation. If the difference between the valuation determined by the third
investment bank (the “Benchmark”) and the lower of the two initial valuations is less than
one-third of the Valuation Difference, “Fair Market Value” for purposes hereof shall be the
average of the Benchmark and the lower of the two initial valuations. If the difference
between the Benchmark and the higher of the two initial valuations is less than one-third
of the Valuation Difference, “Fair Market Value” for purposes of this Section 2.5(b) shall
be the average of the Benchmark and the higher of the two initial valuations. In the event
fair market value is not determined by either of the previous two sentences, the fair
market value for purposes of this Section 2.5(b) shall be the average of the three
valuations. Notwithstanding the foregoing, in no event shall “fair market value” as
determined hereunder be greater than the larger of the two initial valuations, or less than
the lower of the two initial valuations. The fees and expenses of the initial investment
banks selected by each of Employee and the Company in accordance with this provision shall
be borne by the party selecting such bank. The fees and expenses of the third investment
bank, if any, selected in accordance with this provision shall be shared equally by
Employee and the Company.

     (c) Upon the termination of Employee’s employment after a Share Trigger Event,
the loan shall accelerate and all amounts owed under the Note shall be immediately due and
payable in full by Employee.

4

 

     2.6 During the Term, the Company will make available to Employee such additional benefits
(such as medical, dental, disability and life insurance; vacation, leave and holidays) as the
Company may make available to its other employees, all subject to any terms, conditions and other
requirements that may be generally applicable to other executive employees of the Company or
prescribed by the Board.

     2.7 Except as otherwise provided in Section 3.2 or required by applicable law, all
compensation and benefits set forth in Section 2 will cease accruing upon termination of the
Term.

     2.8 As a condition to Employee’s employment with the Company, Employee shall sign concurrently
with this Agreement the attached Employee Stockholders Agreement, which provides that prior to a
Qualified IPO (as that term is defined in the SIP), Employee agrees to vote all his or her Grant
Shares according to the terms thereof, and grants certain drag-along and tag-along rights.

Section 3. Term and Termination

     3.1 Employee’s employment with the Company is “at will” and may be terminated
by the Company or Employee at any time. Accordingly, the Term will commence as of the
date of this Agreement and will terminate upon the first of the following to occur:

     (a) either party gives the other notice of termination;

     (b) the Company gives Employee notice of termination for Dissatisfactory Performance;

     (c) the Company gives Employee notice of termination for Cause;

     (d) the Company gives Employee notice of termination in the event of any disability of
Employee, whether physical or mental, that prevents Employee from satisfactorily performing
his or her duties under this Agreement; or

     (e) the death of Employee.

     3.2 If the Company terminates the Term pursuant to Section 3.1(a) or (b), then the
Company will either

     (a) pay to Employee a severance payment in the amount of Employee’s then-current
annual base salary. Employee acknowledges and agrees, however, that Employee must abide by
the terms and conditions of the Business Protection Agreement, including Employee’s
obligations under Section 3.1 of the Business Protection Agreement and that the Employee
will not engage in, be employed by, perform service for, participate in the ownership,
management, control or operation of, or otherwise be connected with, either directly or
indirectly, any competing

5

 

business for a period of one year. Furthermore, Employee agrees that this severance payment
is forfeitable in full if the Employee does not abide by said agreements. Employer reserves
the right to pursue any other damages as a result of the Employee’s breach; or

     (b) release Employee from Employee’s obligations under Section 3.1 of the
Business Protection Agreement for any period after the end of the Term.

     3.3 Employee will not be entitled to any other severance payments, other compensation, or
release of any obligation under the Business Protection Agreement upon termination of employment or
in any other circumstance. Unless otherwise agreed upon by the parties, any severance payments
under Section 3.2 will be payable in a lump sum subject to federal income tax and any other
applicable withholding.

Section 4. No Conflicting Obligations

     4.1 Employee represents and warrants that Employee’s execution, delivery and performance of
this Agreement and the performance of Employee’s other obligations and duties to the Company will
not cause any breach, default or violation under any other employment, nondisclosure,
confidentiality, consulting or other agreement to which Employee is a party or by which Employee
may be bound.

     4.2 Employee will not use in performance of Employee’s work for the Company or disclose to the
Company any trade secret or other confidential or proprietary information of any prior employer or
other Person if and to the extent that such use or disclosure may cause a breach, default or
violation under any obligation or duty that Employee owes to such other Person (e.g., under any
agreement or applicable law). Employee represents and warrants that Employee’s compliance with this
Section 4 will not prohibit, restrict or impair the performance of Employee’s work, obligations and
duties to the Company.

Section 5. Miscellaneous

     5.1 This Agreement will be enforced to the fullest extent permitted by applicable law. If
for any reason any provision of this Agreement is held to be invalid or unenforceable to any
extent, then

     (a) such provision will be interpreted, construed or reformed to the extent reasonably
required to render the same valid, enforceable and consistent with the original intent
underlying such provision;

     (b) such provision will be void to the extent it is held to be invalid or
unenforceable;

     (c) such provision will remain in effect to the extent that it is not invalid or
unenforceable; and

6

 

     (d) such invalidity or unenforceability will not affect any other provision of
this Agreement or any other agreement.

If the invalidity or unenforceability is due to the unreasonableness of the scope or duration of
the provision, the provision will remain effective for such scope and duration as may be determined
to be reasonable.

     5.2 Employee will not assign this Agreement or any of his or her
rights or obligations hereunder, either during or after the Term, without the prior written consent
of the Company. Subject to the foregoing, this Agreement will be enforceable by and binding upon
each of the parties and their respective successors and assigns.

     5.3 The failure of either party to insist upon or enforce strict performance of any of the
provisions of this Agreement or to exercise any of its rights or remedies under this Agreement will
not be construed as a waiver or a relinquishment to any extent of such party’s rights to assert or
rely upon any such provision, right or remedy in that or any other instance; rather, the same will
be and remain in full force and effect.

     5.4 This Agreement will be interpreted, construed and enforced in all respects in accordance
with the laws of the State of Washington. Employee hereby irrevocably consents to personal
jurisdiction and venue in the state and federal courts located in the State of Washington, King
County, in connection with any action to interpret or enforce, or otherwise arising out of or
relating to, this Agreement. Employee will not bring any action to interpret or enforce, or
otherwise arising out of or relating to, this Agreement, other than in the courts specified in this
Section 5.4.

     5.5 Any notice required or permitted under this Agreement will be given in writing and will be
deemed effectively given upon personal delivery or upon delivery by confirmed fax to the party to
be notified, two (2) business days after deposit with recognized overnight courier service, or
three (3) business days after deposit with the United States Post Office, by registered or
certified mail, postage prepaid and addressed to the party to be notified at the following address,
or at such other address as such party may designate by notice under this paragraph 5.5:

	 	 	 
	Company:

	 	Employee:
	 
	 	 
	Mitch Hill

Chief Executive Officer

Avanade Inc.

2211 Elliott Ave.

Seattle, WA 98121

	 	Dennis Knapp

5542 156th Avenue SE

Bellevue, WA 98003

7

 

     5.6 This Agreement sets forth the entire agreement, and supersedes any and all prior
agreements, of the parties with regard to Employee’s employment with the Company, with the
exception of the Business Protection/Confidentiality Agreement, which shall constitute a material
term of, and is hereby incorporated into, this Agreement. This Agreement may not be amended,
except by a writing signed by both parties.

Section 6. Arbitration of Disputes

     6.1 Any dispute among the parties arising out of or relating to Employee’s employment
relationship with the Company, or to the termination of that relationship, will be settled by final
and binding arbitration as set forth in this Agreement. The following are examples of allegations,
claims or disputes that may be arbitrated under this Agreement: constructive discharge or wrongful
discharge under statutory or common law; torts or breaches of contract; employment discrimination
or retaliation in violation of any applicable federal, state or local statute, ordinance or regulation;
violation of any other applicable statute, ordinance or regulation affecting Employee’s employment
relationship with the Company; or any other claims or disputes that arise out of or relate to the
termination of Employee’s employment relationship with the Company. However, nothing in this
Agreement will require arbitration of any statutory claim that Employee may have if the applicable
law precludes entering into a pre-dispute agreement for binding arbitration of that claim. Further,
either party may commence litigation within thirty (30) days prior to the date after which the
commencement of litigation could be barred by any applicable statute of limitations or other law,
rule, regulation or order of similar import or in order to request injunctive or other equitable
relief necessary to prevent irreparable harm or any breach or default under, or any threat of any
breach or default under, the Confidentiality Agreement dated June 1, 2000 by Employee. In such
event, the parties will (except as may be prohibited by judicial order) nevertheless continue to
follow the procedures set forth in this Section 6.

     6.2 The arbitration will be conducted under the National Rules for the Resolution of
Employment Disputes published by the AAA that are in effect at the time the arbitration notice is
given, to the extent that those rules do not conflict with any provision of this Agreement. A copy
of the current rules may be obtained from the AAA.

     6.3 Either party may initiate the procedures under this Section 6 by giving the other party
written notice of the dispute and invoking the provisions of this Section 6. If, within thirty (30)
days after such notification, the parties cannot resolve the dispute, then either party may submit
a written demand for arbitration to the other party and to the AAA regional office serving Seattle,
which will administer the arbitration. The notice must be received within the applicable statute of
limitations if the dispute involves a statutory claim. The written notice will contain a statement
setting forth the nature of the dispute, the dollar amount involved, if any, and the specific
remedy sought.

     6.4 Upon written demand for arbitration, the parties will attempt to agree upon a mutually
acceptable arbitrator. If they cannot arrive at such an agreement, either party may

8

 

request a list of seven (7) labor and employment arbitrators from the AAA’s panel of potential
arbitrators. The parties will then alternatively strike potential arbitrators from such list until
one remains.

     6.5 The arbitrator will have the authority only to interpret and apply the applicable
provisions of this Agreement, and will not add to, subtract from, reform or modify any of the
provisions of this Agreement.

     6.6 The arbitrator will determine what discovery will be allowed, consistent with the relevant
AAA rules and the expedited nature of arbitration. All discovery allowed will be completed within
sixty (60) days of the arbitration notice unless the parties agree otherwise or the arbitrator
grants an extension for good cause shown.

     6.7 The arbitration will be held in King County, Washington. If the Company and Employee
cannot agree on a specific location or a date and time for the arbitration hearing, the AAA will
set the specific location in King County, or the hearing date and time, as necessary.

     6.8 The Company and Employee each have the right to be represented during the arbitration
process by legal counsel, or by another representative of its own choosing. Unless applicable law
provides otherwise, each party will bear any and all costs associated with its representation. The
arbitrator may compel the attendance of witnesses in accordance with RCW 7.04.110 and the relevant
AAA rules.

     6.9 Each party will bear the costs of preparing and presenting its case in the arbitration
(e.g., costs of its witnesses and attorneys). All other costs of the arbitration (e.g., any fees
payable to the AAA, the arbitrator, and court reporter, and the costs of any hearing’ room or
facilities) will be divided equally between the parties.

     6.10 The arbitrator’s decision will be final and binding on the parties and their respective
successors and assigns; provided, however, that the arbitrator’s decision will be subject to
judicial review, and the reviewing court may vacate, modify or correct the arbitrator’s decision as
appropriate, (i) where the arbitrator’s findings of fact are not supported by substantial evidence,
(ii) where the arbitrator’s conclusions of law are clearly erroneous or (iii) as otherwise provided
by applicable law. The arbitrator will have the authority to grant temporary or injunctive relief,
specific performance, damages and such other relief as may be appropriate in the circumstances.
Judgment upon the arbitration award may be entered in any court having jurisdiction.

Section 7. Definitions

     Whenever used in this Agreement with initial letters capitalized, the following terms will
have the following specified meanings:

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     “AAA” means the American Arbitration Association, its successor or another arbitration
service agreed upon by the parties.

     “Board” means the Company’s board of directors.

     “Cause” means (a) willful misconduct on the part of Employee that has a materially adverse
effect on the Company and its Subsidiaries, taken as a whole, (b) Employee’s engaging in conduct
that could reasonably result in his or her conviction of a felony or a crime against the Company or
which would materially compromise the Company’s reputation, as determined in good faith by the
Board, or (c) unreasonable refusal by Employee to perform the duties and responsibilities of his or
her position in any material respect and the failure of Employee to remedy such nonperformance
within 30 days after receipt of written notice from the Company. No action, or failure to act, will
be considered “willful” if it is done by Employee in good faith and with reasonable belief that the
action or omission was in the best interests of the Company.

     “Competing Business” means any business whose commercial efforts involve the development,
marketing, sale, provision, or distribution of products or services in competition with products or
services developed, under development, marketed, sold, provided or distributed by the Company.

     “Confidentiality Agreement” means the attached Business Protection Agreement.

     “Dissatisfactory Performance” means dissatisfactory performance other than Cause.
Dissatisfactory Performance may include, without limitation, the failure of the Company to achieve
revenue, profit, growth, customer satisfaction or other goals established by the Board.

     “Person” means any corporation, partnership, trust, association, governmental authority,
educational institution, individual or other entity.

     “Qualified Public Offering” shall have the meaning set forth in the Avanade Inc. 2000 Stock
Incentive Plan.

     “Term” means the term of Employee’s employment as an employee of the Company pursuant to this
Agreement.

* * *

     Employee hereby acknowledges that he or she has carefully read this Agreement, understands its
terms and that (i) the same are necessary for the reasonable and proper protection of the Company’s
business; (ii) the Company has been induced to enter into and continue its relationship with
Employee in reliance upon Employee’s compliance with the provisions of this Agreement; (iii) every
provision of this Agreement is reasonable with respect to its scope and duration; (iv) Employee has
had ample opportunity to discuss this Agreement with legal counsel of his or her own choosing, and
has entered into this

10

 

Agreement knowingly and voluntarily, without relying on any promises or representations
by the Company other than those contained in the text of this Agreement; and (v) Employee
has received a copy of this Agreement.

     In witness whereof, the parties have duly executed and entered into this Agreement as of
the date first set forth above.

	 	 	 	 	 
	Employee	 	AVANADE INC.:	 
	 
	/s/ Dennis Knapp	 	By:  	/s/
Mitchell Hill	 
	Dennis Knapp 	 	 	Its: CEO 	 
	 

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