Document:

Prepared by R.R. Donnelley Financial -- EMPLOYMENT AGREEMENT, DAVE GALLO

  
 Exhibit 10.47 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and
entered into as of this 31st day of July, 2000, by and between Edgewater Technology, Inc., a Delaware corporation (hereinafter referred to as the “Company” or “Edgewater”), and David Gallo (hereinafter referred to as
“Employee”). 
  
 WITNESSETH 
  
 WHEREAS, in the course of building the business of Edgewater, and in his capacity as an executive officer thereof, Employee will be engaged in a confidential relationship and will gain knowledge of the
business, affairs, customers and methods of Edgewater and each of Edgewater’s Subsidiaries during his employment with Edgewater and will have access to lists of Edgewater’s and its Subsidiaries’ customers and their needs, and will
become personally known to and acquainted with Edgewater’s and its Subsidiaries’ customers, thereby establishing a personal relationship with such customers for the benefit of Edgewater; and 
  
 WHEREAS, the corporate party being duly authorized hereto by its Board of Directors and the individual having the requisite capacity and
authority, desire to enter into this Agreement to reflect the foregoing, and for other purposes as hereinafter set forth. 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein, the parties hereto agree as follows: 
  
 1.    TERM OF AGREEMENT.    The term of this Agreement shall commence on the date hereof and shall continue until March 1, 2003, unless
terminated sooner in accordance with Section 5 hereof. During the term of this Agreement, the calendar year shall be referred to herein as a “Compensation Year.” 
  
 2.    DUTIES AND PERFORMANCE. 
  
 (a)  During the term of this Agreement, Employee shall be employed by the Company on a full-time basis as Chief Operating Officer of Edgewater and shall have such authority and shall perform such duties consistent with his
position as may be reasonably assigned to him by, and shall report to, the Chief Executive Officer and Chief Technology Officer of the Company; provided, however, that Employee shall not be prohibited from making investments of
a passive nature other than investments in more than five (5%) percent of the outstanding shares of companies engaged in competition with Edgewater. Employee shall use all reasonable efforts to further the interests of Edgewater and shall devote
substantially all of his business time and attentions to his duties hereunder. 
  
 (b)  Employee shall be entitled to be
reimbursed in accordance with the policies of Edgewater, as adopted and amended from time to time, for all reasonable and necessary expenses incurred by him in connection with the performance of his duties of employment hereunder; provided Employee
shall, as a condition of such reimbursement, submit verification of the nature and amount of such expenses in accordance with the reimbursement policies from time to time adopted by Edgewater. 
  

COMPENSATION. 

 3.1  Base Salary.    Edgewater shall pay to Employee a base salary at the rate of $200,000 per
annum through the expiration of the term of the Agreement, payable bi-weekly as per normal pay practices of the Company. Such base salary shall be subject to increase based upon review by the Board of Directors of the Company from time to time.

  
 3.2  Stock Options.    Employee is hereby granted options (the “Options”) to
purchase 225,000 shares of Common Stock of Edgewater at a per share price of $6.00. The Options to purchase one–third of the underlying shares of Common Stock shall vest each of the first, second and third anniversaries of the date of this
Agreement. All terms and conditions of such Options shall be subject to the Company’s 2000 Stock Option Plan. 
  
 3.3  Bonus.    The Employee shall be entitled to receive an annual bonus of up to 60% of Employee’s base salary for each calendar year and up to 50,000 additional Options for the period ended
December 31, 2000, based on targeted budget performance and performance measures which are detailed on Exhibit A and such agreements, terms and conditions on Exhibit A shall be incorporated herein. Any additional Options granted for
calendar year 2000 performance, pursuant to this Section 3.3, shall be issued at a strike price equivalent to the fair market value of the share price of the underlying common stock of the Company at the time of grant and shall vest on the same
schedule as the Options described in Section 3.2 hereof. In addition, Employee may earn up to 50,000 additional Options for each of the years ending December 31, 2001 and December 31, 2002, based on targeted budget performance and other performance
measures which shall be agreed to by the parties after the date hereof and detailed on Exhibit B, and such agreements, terms and conditions on Exhibit B shall be incorporated herein. 
  
 3.    BENEFITS. 
  
 (a)  When
eligible under non-discriminatory standards, Employee shall be entitled to participate in any employee benefit plan maintained by the Company for its full time employees and shall be entitled to vacation under the Company’s PDO or PTO plan, as
applicable, based on time of service, and holidays as the Company may establish as company policy. 
  
 (b)  Employee
shall be eligible to participate in the incentive compensation plans of Edgewater and its Subsidiaries as designated. 
  
 

  
 5.    TERMINATION OF AGREEMENT. 
  
 (a)  The Company shall be entitled to terminate Employee’s services, in any of the following circumstances: 
  
 (i)  For “cause,” which shall mean by reason of any of the following: (A) the Employee’s material breach of any provision of Section 6 of this Agreement; (B) the
final written determination by the Board of Directors of the Company after thirty (30) days notice to the Employee and the opportunity for the Employee to be heard by the Board of Directors regarding the Employee’s willful failure and refusal
to comply with the material and reasonable directives of the Company; (C) the Employee’s willful and repeated failure to perform the duties for which the Employee has been provided with written notice of non-performance and for which the
Employee has been provided with thirty (30) days to cure such non-performance; (D) the Employee’s gross negligence or willful or intentional misconduct; (E) final written determination after thirty (30) days notice to the Employee and the
opportunity for the Employee to be heard by the Board of Directors of the Company in respect of the Employee’s breach of his fiduciary duties to the Company; or (F) the conviction of, or the entering of a guilty plea or a plea of no contest
with respect to, a felony with respect to the Employee, or any other criminal activity which materially affects the Employee’s ability to perform his duties or materially harms the reputation of the Company; 
  
 (ii)  If, during the Term, in the opinion of the Company, the Employee because of physical or mental illness or incapacity shall be unable for
any reason to substantially perform all of his duties and responsibilities under this Agreement for a period of one hundred eighty (180) days in the aggregate in any twelve (12) month period (“Disability”); provided, that the Company shall
give Employee at least ten (10) days prior written notice of its intention to terminate this Agreement, as of the date set forth in the notice, at any time after the expiration of such one hundred eighty (180) day period. In case of termination for
Disability, the Employee shall be entitled to receive salary, benefits and reimbursable expenses owing the Employee through the date of termination; 
  
 (iii)  The death of Employee; or 
  
 (iv)  At any time, for any reason other
than set forth above, including without cause, immediately upon notice to Employee. 
  
 (b)  In the event of the
termination of Employee’s employment: 
  
 (i)  For cause, or in the event of the resignation of Employee, or in the
event of the death or disability of Employee, then as of the date of such termination all of the Company’s obligations hereunder, including, without limitation, the Company’s obligations to pay Employee’s base salary accruing after
the date of such termination, and any benefits (except as otherwise required by applicable law), other than those obligations which have accrued but remain unpaid as of the date of such termination (such as accrued but unpaid salary, expense
reimbursements, health insurance premiums, retirement plan contributions, if any, vacation pay, sick pay, etc.), shall cease and Employee shall not be entitled to receive any incentive compensation for the Compensation Year of such termination; or

  
 (ii)  By the Company pursuant to clause 5(a)(iv) above, then in such event Employee shall receive from the Company
two payments, each equal to one-half of the following: the amount of Employee’s base salary (without offset for any compensation received by Employee from any 
 

 
subsequent employment by any person other than by any affiliate of the Company or in violation of Section 6 of this Agreement) for a period which is the greater of (A) sixty (60) days from the
date of such termination, or (B) the lesser of one (1) year or the remaining term of this Agreement. The first payment shall be due on the effective date of termination and the second payment shall be due ninety (90) days after the effective date of
termination. Upon the effective date of termination by the Company pursuant to clause 5(a)(iv) above, all Options granted to Employee in Section 3.2 shall become immediately vested and exercisable. Further, any such termination by the Company
pursuant to clause 5(a)(iv) above shall operate to shorten the period set forth in Section 6(b), and during which the terms of Section 6 apply, to twelve (12) months from the date of termination of employment. In addition, in the case of any such
termination by the Company pursuant to clause (5(a)(iv) above, the Company shall continue Employee’s health care, life insurance and disability coverages for Employee for the period described in clause (B) of this subparagraph 5(b)(ii), (a)
under the terms of the applicable Company sponsored health care plan by which he was covered at the time of such termination of employment, as such plan may be in effect or may be modified from time to time, or (b) if such Company sponsored health
care plan does not by its terms allow Employee’s participation or continued participation, the Company shall obtain at the Company’s expense such insurance coverage on behalf of Employee that provides all benefits otherwise provided under
such Company sponsored health care, life insurance and disability plans (collectively, “Continued Health Care Coverage”). 
  
 6.    COVENANT NOT TO COMPETE, CONFIDENTIALITY. 
  
 (a)  Employee acknowledges that
in the course of his employment by the Company he has and will become privy to various economic and trade secrets and relationships of the Company and its subsidiaries under its direct control (“Subsidiaries”). Therefore, in consideration
of this Agreement, Employee hereby agrees that he will not, directly or indirectly, except for the benefit of the Company or its Subsidiaries, or with the prior written consent of the Board of Directors of the Company, which consent may be granted
or withheld at the sole discretion of the Company’s Board of Directors: 
  
 (i)  During the Noncompetition Period
(as hereinafter defined), become an officer, director, stockholder, partner, member, manager, associate, employee, owner, creditor, independent contractor, co-venturer, consultant or otherwise, or be interested in or associated with any other
person, corporation, firm or business engaged in providing software solutions services, including, but not limited to, systems integration, custom software development, training, system support, outsourcing and/or information technology services (an
“Edgewater Services Business”) within a radius of fifty (50) miles from any office operated during the Noncompetition Period by the Company, or any of its Subsidiaries (collectively, the “Territory”), or himself engage in such
business; provided, however, that 
  
 (A)  Nothing herein shall be construed to prohibit Employee from
owning not more than five percent (5%) of any class of securities issued by an entity which is subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, or which is traded over the counter; 
  
 (B)  The foregoing shall not restrict Employee with respect to businesses, other than Edgewater Services Businesses, engaged in by the Company
or its Subsidiaries during the Noncompetition Period unless Employee either is or was substantially involved in such other businesses of the Company or such Subsidiaries or had access to Confidential Information (as hereinafter defined) with respect
to such other businesses; or 
 

  
 (ii)  During the Noncompetition Period, in the Territory, solicit, cause or
authorize, directly or indirectly, to be solicited for or on behalf of himself or third parties, from parties who are or were customers of the Company or its Subsidiaries, any Edgewater Services Business transacted by or with such customer by the
Company or its Subsidiaries; or 
  
 (iii)  During the Noncompetition Period, in the Territory, accept or perform, or
cause or authorize, directly or indirectly, to be accepted or performed for or on behalf of himself or for third parties, any such Edgewater Services Business from any such customers of the Company or its Subsidiaries; or 
  
 (iv)  (A)  During the Noncompetition Period, use, publish, disseminate or otherwise disclose, directly or indirectly, any
information heretofore or hereafter acquired, developed or used by the Company or its Subsidiaries relating to their business or the operations, employees or customers of the Company or its Subsidiaries which constitutes proprietary or confidential
information of the Company or its Subsidiaries (“Confidential Information”), including without limitation any Confidential Information contained in any customer lists, mailing lists and sources thereof, statistical data and compilations,
patents, copyrights, trademarks, trade names, inventions, formulae, methods, processes, agreements, contracts, manuals or any other documents; and (B) from and after the date hereof, use, publish, disseminate or otherwise disclose, directly or
indirectly, any information heretofore or hereafter acquired, developed or used by the Company or its Subsidiaries which constitutes Confidential Information, but excluding any Confidential Information which has become part of common knowledge or
understanding in the Edgewater Services Business industry or otherwise in the public domain (other than from disclosure by Employee in violation of this Agreement); provided, however, this subparagraph (iv) shall not be applicable to the
extent Employee is required to testify in a judicial or regulatory proceeding pursuant to the order of a judge or administrative law judge after Employee requests that such Confidential Information be preserved; or 
  
 (v)  During the Noncompetition Period, 
  
 (A)  Solicit, entice, persuade or induce, directly or indirectly, any employee (or person who within the preceding ninety (90) days was an employee) of the Company or its Subsidiaries or any other person who
is under contract with or rendering services to the Company or its Subsidiaries, to terminate his or her employment by, or contractual relationship with, the Company or to refrain from extending or renewing the same (upon the same or new terms) or
to refrain from rendering services to or for the Company or to become employed by or to enter into contractual relations with any persons other than the Company or to enter into a relationship with a competitor of the Company or its Subsidiaries;

  
 (B)  Solicit, induce, attempt to hire, or hire on his own behalf or on behalf of any third party, any employee of the
Company (or anyone who was an employee of the Company during the preceding ninety (90) days), or assist in such hiring by any other person or business entity; 
  
 (C)  Approach any such employee for any of the foregoing purposes; or 
  
 (D)  Authorize or knowingly approve or assist in the taking of any such actions by any person other than the Company or its Subsidiaries. 
  
 (b)  For purposes of this Agreement, the term “Noncompetition Period” shall mean the period commencing on the date hereof and ending twenty-four (24) months after the date 
 

 
Employee ceases to be an officer or employee of, or consultant to, the Company or any of its Subsidiaries; provided, however, that the Noncompetition Period shall end
one (1) year from the date of termination of the employment of Employee by the Company under this Agreement which is without cause. 
  
 (c)  The invalidity or non-enforceability of this Section 6 in any respect shall not affect the validity or enforceability of this Section 6 in any other respect or of any other provisions of this Agreement. In the event that any
provision of this Section 6 shall be held invalid or unenforceable by a court of competent jurisdiction by reason of the Geographic or business scope or the duration thereof, such invalidity or unenforceability shall attach only to the scope or
duration of such provision and shall not affect or render invalid or unenforceable any other provision of this Agreement, and, to the fullest extent permitted by law, this Agreement shall be construed as if the geographic or business scope or the
duration of such provision had been more narrowly drafted so as not to be invalid or unenforceable and further, to the extent permitted by law, such geographic or business scope or the duration thereof may be re-written by a court of competent
jurisdiction to make such sufficiently limited to be enforceable. 
  
 (d)  Employee acknowledges that the Company’s
remedy at law for any breach of the provisions of this Section 6 is and will be insufficient and inadequate and that the Company shall be entitled to equitable relief, including by way of temporary and permanent injunction, in addition to any
remedies the Company may have at law. 
  
 (e)  The provisions of this Section 6 shall survive termination of this
Agreement. 
  
 8.  DIVISIBILITY OF AGREEMENT.    In the event that any term, condition or
provision of this Agreement is for any reason rendered void, all remaining terms, conditions and provisions shall remain and continue as valid and enforceable obligations of the parties hereto. 
  

9.  NOTICES.    Any notices or other communications required or permitted to be sent hereunder shall be in writing and shall be duly given if
personally delivered or sent postage prepaid by certified or registered mail, return receipt requested, or sent by prepaid overnight courier service, delivery confirmed, as follows: 
  
 
	 If to Employee:     
 	 	 David Gallo
 
	 
	  	 	 

	 
	  	 	 

	 
	  	 	 

	 
	 If to the Company:
 	 	 Clete T. Brewer
 
	  	 	 Chairman
 
	  	 	 234 East Millsap Road
 
	  	 	 Fayetteville, Arkansas 72703
 

 
  
 Either party may change his or its address for the sending of notice to such
party by written notice to the other party sent in accordance with the provisions hereof. 
  
 10.  COMPLETE
AGREEMENT.    This Agreement contains the entire understanding of the parties with respect to the employment of Employee (including nonsolicitation and noncompetition agreements) and supersedes all prior arrangements or
understandings with respect thereto. This Agreement may not be altered or amended except by a writing, duly executed by the party against whom such alteration or amendment is sought to be enforced. 
  
 11.  ASSIGNMENT.    This Agreement is personal and non-assignable by Employee. It shall inure to the benefit of any
corporation or other entity with which the Company shall merge or consolidate or to which the Company shall lease or sell all or substantially all of its assets and may be assigned by the Company to any
 
 

 
affiliate of the Company or to any corporation or entity with which such affiliate shall merge or consolidate or which shall lease or acquire all or substantially all of the assets of such
affiliate. 
  
 12.  COUNTERPARTS.    This Agreement may be executed in counterparts, each of
which shall be an original and all of which together shall constitute one and the same instrument. 
  
 13.  GOVERNING
LAW.    This Agreement shall in all respects be construed according to the laws of the State of Delaware. 
  
 [The
next page is the signature page.] 
 

  
  IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement in multiple
counterparts as of the day and year first above written. 
  
 
	 EMPLOYEE
 
	 
	 /S/    DAVID J. GALLO
 

	 David J. Gallo
 

 
  
  
 
	 EDGEWATER, INC.
 
	 
	 By:
 	 	 /S/    TERRY C. BELLORA
 

	  	 	 Terry C. Bellora
 
	  	 	 Executive Vice President
 

 
  

 EXHIBIT A 
  
 
	 Percentage of Bonus to be received
 	  	  
 	 30%
 	  
 	  	  
 	 50%
 	  
 	  	  
 	 80%
 	  
 	  	  
 	 100%
 	  
 
	  	  	 
	 
	 
	  	 
	 
	 
	  	 
	 
	 
	  	 
	 
	 

	 
	 2000 Performance Targets:
 	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	 Sales (executed contracts) 40% value
 	  	 $
 	 42M
 	  
 	  	 $
 	 45M
 	  
 	  	 $
 	 46M
 	  
 	  	 $
 	 50M
 	  
 
	 Revenue (GAAP recorded) 40% value
 	  	 $
 	 30M
 	  
 	  	 $
 	 32M
 	  
 	  	 $
 	 36M
 	  
 	  	 $
 	 39M
 	  
 
	 Gross Profit Percentage 20% value
 	  	  
 	 45-46
 	 %
 	  	  
 	 47-48
 	 %
 	  	  
 	 49-51
 	 %
 	  	  
 	 52
 	 %
 

 
  
 EXAMPLE: 
  
 For calendar year 2000, assume that sales are $50 million, Revenue is $36 million and Gross Profit Percentage is 48%; Based on a potential bonus of $120,000 and 50,000 options, the following calculations would be
made: 
  
 
	 $120,000 Bonus:
 	  	 Sales:
 	 	 $120,000 x 40% value = $48,000 x 100% (from table) = $48,000
 
	  	  	 Rev.:
 	 	 $120,000 x 40% value = $48,000 x 80% (from table) = $38,400
 
	  	  	 G.P.:
 	 	 $120,000 x 20% value = $24,000 x 50% (from table) = $12,000
 
	 
	  	  	  	 	 Total Bonus = $98,400
 
	 
	 50,000 Options:
 	  	 Sales:
 	 	 50,000 x 40% value = 20,000 x 100% (from table) = 20,000
 
	  	  	 Rev.:
 	 	 50,000 x 40% value = 20,000 x 80% (from table) = 16,000
 
	  	  	 G.P.:
 	 	 50,000 x 20% value = 10,000 x 50% (from table) = 5,000
 
	 
	  	  	  	 	 Total Options = 41,000
 

 
  
 The foregoing calculation shall be made independently for each performance target (i.e., even if two
performance targets are not met, but one target is achieved, the calculation for that performance target shall be made). Example: Sales are $41 million, Revenue is $29 million and Gross Profit Percentage is 49%. No bonus would be calculated based on
Sales and Revenue, but the bonus would be calculated on Gross Profit Percentage ($120,000 x 20% value = $24,000 x 80% (from table) = $19,200 and 8,000 options (10,000 x 80%)).Prepared by R.R. Donnelley Financial -- AMENDED & RESTATED 1996 STOCK OPTION PLAN

 Exhibit 10.48 
  
 EDGEWATER
TECHNOLOGY, INC. 
  
 AMENDED AND RESTATED 1996 STOCK OPTION PLAN 
  
 SECTION 1. PURPOSE.    The Plan (i) authorizes the Committee to provide to Employees and Consultants of the Corporation and its Subsidiaries, who are in a position to
contribute materially to the long-term success of the Corporation, with options to acquire Common Stock, par value $.01 per share, of the Corporation, and (ii) provides for the automatic grant of options to Non-Employee Directors of the
Corporation in accordance with the terms specified herein. The Corporation believes that this incentive program will cause those persons to increase their interest in the Corporation’s welfare, and aid in attracting and retaining Employees,
Consultants and Directors of outstanding ability. 
  
 SECTION 2. DEFINITIONS.    Unless the context clearly
indicates otherwise, the following terms, when used in this Plan, shall have the meanings set forth in this Section: 
  
 (a) “Board” shall mean the Board of Directors of the Corporation. 
  
 (b) A “Change in
Control” shall be deemed to have occurred if: 
  
 (i) any person, other than the Corporation or an employee
benefit plan of the Corporation, acquires directly or indirectly the Beneficial Ownership of any voting security of the Corporation and immediately after such acquisition such Person is, directly or indirectly, the Beneficial Owner of voting
securities representing 50% or more of the total voting power of the then-outstanding voting securities of the Corporation; 
  
 (ii) the individuals (A) who, as of the closing date of the Initial Public Offering, constitute the Board (the “Original Directors”) or (B) who thereafter are elected to the Board and whose election, or
nomination for election, to the Board was approved by a vote of at least two-thirds (2/3) of the Original Directors then still in office (such directors becoming “Additional Original Directors” immediately following their election) or (C)
who are elected to the Board and whose election, or nomination for election, to the Board was approved by a vote of at least two-thirds (2/3) of the Original Directors and Additional Original Directors then still in office (such directors also
becoming “Additional Original Directors” immediately following their election)(such individuals being the “Continuing Directors”), cease for any reason to constitute a majority of the members of the Board; 

 
 (iii) the stockholders of the Corporation shall approve a merger, consolidation, recapitalization, or reorganization of the
Corporation, a reverse stock split of outstanding voting securities, or consummation of any such transaction if stockholder approval is not sought or obtained, other than any such transaction which would result in at least 75% of the total voting
power represented by the voting securities of the surviving entity outstanding immediately after such transaction being Beneficially Owned by at least 75% of the holders of outstanding voting securities of the Corporation immediately prior to the
transaction, with the voting power of each such continuing holder relative to other such continuing holders not substantially altered in the transaction; or 
  
 (iv) the stockholders of the Corporation shall approve a plan of complete liquidation of the Corporation or an agreement for the sale or disposition by the Corporation
of all or a substantial portion of the Corporation’s assets (i.e. 50% or more of the total assets of the Corporation). 
  
 (c) “Code” shall mean the Internal Revenue Code of 1986 as it may be amended from time to time. 
  
 (d) “Committee” shall mean the Board, or any committee of two or more Directors that may be designated by the Board to administer the Plan. The Committee may be comprised of “non-employee
directors” within the meaning of Rule 16b-3 under the Exchange Act and “outside directors” under Section 162(m) of the Code. 

 (e) “Consultant” shall mean (i) any person who is engaged to perform services for the Corporation or its
Subsidiaries, other than as an Employee or Director, or (ii) any person who has agreed to become a consultant within the meaning of clause (i). 
  
 (f) “Control Person” shall mean any person who, as of the date of grant of an Option, owns (within the meaning of Section 422(b)(6) of the Code) stock
possessing more than ten percent (10%) of the total combined voting power or value of all classes of stock of the Corporation or of any Parent or “subsidiary corporation” (within the meaning of Section 424(f) of the Code). 

 
 (g) “Corporation” shall mean Edgewater Technology, Inc., a Delaware corporation. 
  
 (h) “Director” shall mean any member of the Board. 
  
 (i) “Employee” shall mean (i) any employee of the Corporation or its Subsidiaries (including Directors who are otherwise employed by the Corporation or its
Subsidiaries), or (ii) any person who has agreed to become an employee within the meaning of clause (i). 
  
 (j)
“Exchange Act” shall mean the Securities Exchange Act of 1934 as it may be amended from time to time. 
  
 (k) “Fair Market Value” of the Stock on a given date shall be based upon: (i) if the Stock is listed on a national securities exchange or quoted in an interdealer quotation system, the last sales price or, if unavailable, the
average of the closing bid and asked prices per share of the Stock on such date (or, if there was no trading or quotation in the Stock on such date, on the next preceding date on which there was trading or quotation) as provided by one of such
organizations; or (ii) if the Stock is not listed on a national securities exchange or quoted in an interdealer quotation system, as determined by the Board in good faith in its sole discretion, provided, however, that the “fair market
value” of Stock on the date on which shares of Stock are first issued and sold pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission shall be the Initial Public Offering price of the
shares so issued and sold, as set forth in the first prospectus used in such offering. 
  
 (l)
“Grantee” shall mean a person granted an Option under the Plan. 
  
 (m) “Initial Public
Offering” shall mean an initial public offering of shares of Stock in a firm commitment underwriting registered with the Securities and Exchange Commission in compliance with the provisions of the 1933 Act. 
  
 (n) “ISO” shall mean an Option granted pursuant to the Plan to purchase shares of Stock and intended to qualify as an
incentive stock option under Section 422 of the Code, as now or hereafter constituted. 
  
 (o) “1933
Act” shall mean the Securities Act of 1933, as amended. 
  
 (p) “Non-Employee Director” shall mean
a Director of the Corporation who is not an Employee, and who was not an Employee at any time during the prior one year period. 
  
 (q) “NQSO” shall mean an Option granted pursuant to the Plan to purchase shares of the Stock that are not ISOs. 
  
 (r) “Options” shall refer collectively to NQSOs and ISOs issued under and subject to the Plan. 
  
 (s) “Parent” shall mean any parent corporation as defined in Section 424(e) of the Code. 
  
 (t) “Plan” shall mean this Amended and Restated 1996 Stock Option Plan as set forth herein and as amended from time to time. 
  
 (u) “Stock” shall mean shares of the common stock of the Corporation. 
  

 (v) “Stock Option Agreement” shall mean a written agreement between the Corporation and the Grantee, or a
certificate accepted by the Grantee, evidencing the grant of an Option hereunder and containing such terms and conditions, not inconsistent with the Plan, as the Committee shall approve. 
  
 (w) “Subsidiary” shall mean (i) any company (whether a corporation, partnership, joint venture or other entity) in which the Corporation owns, directly or
indirectly, a majority of the shares of capital stock or other equity interest, or (ii) any entity which the Committee reasonably expects to become a subsidiary within the meaning of clause (i). 
  

SECTION 3. SHARES OF STOCK SUBJECT TO THE PLAN.    Subject to adjustment as described in Section 10, the total amount of Stock that may be subject to outstanding
Options, determined immediately after the grant of any Option, shall not exceed 15% percent of the total number of shares of Stock outstanding. Notwithstanding the foregoing, subject to adjustment as described in Section 10, the number of shares
that may be delivered upon exercise of ISOs shall not exceed 650,000. For purposes of the foregoing limits, shares subject to Options shall not be deemed delivered if such Options are forfeited, expire or otherwise terminate without delivery of
shares to the Grantee. Any shares of Stock delivered pursuant to an Option may consist, in whole or in part, of authorized and unissued shares or treasury shares. 
  
 SECTION 4. ADMINISTRATION OF THE PLAN.    The Plan shall be administered by the Committee. Subject to the express provisions of the Plan, the Committee shall have the
authority to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to the Plan, to determine the terms and provisions of Stock Option Agreements thereunder and to make all other determinations necessary or advisable for
the administration of the Plan. Any controversy or claim arising out of or related to this Plan or the Options granted thereunder shall be determined unilaterally by, and at the sole discretion of, the Committee. Any action of the Committee with
respect to the Plan shall be final, conclusive, and binding on all persons, including the Corporation, Subsidiaries of the Corporation, Grantees, and any person claiming any rights under the Plan from or through any Grantee and stockholders. The
express grant of any specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee. The Committee may delegate to officers or managers of the Corporation or
any Subsidiary the authority, subject to such terms as the Committee shall determine, to perform administrative functions to the extent permitted under Rule 16b-3, if applicable, Code Section 162(m), and other applicable law. 

 
 SECTION 5. TYPES OF OPTIONS.    Options granted under the Plan may be of two types: ISOs or NQSOs. The Committee shall
have the authority and discretion to grant to an eligible Employee either ISOs, NQSOs or both, but shall clearly designate the nature of each Option at the time of grant in the Stock Option Agreement. 
  
 SECTION 6. GRANT OF OPTIONS TO EMPLOYEES AND CONSULTANTS. 
  
 (a) Employees and Consultants of the Corporation and its Subsidiaries shall be eligible to receive Options under the Plan. Grantees who are not employees of the
Corporation or a “subsidiary corporation” (within the meaning of Section 424(f) of the Code) on the date an Option is granted shall only receive NQSOs. 
  
 (b) The exercise price per share of Stock subject to an Option granted to an Employee or Consultant shall be determined by the Committee and specified in the Stock

  
 Option Agreement, provided, however, that the exercise price of each share subject to an Option shall be not
less than 100%, or, in the case of an ISO granted to a Control Person, 110% of the Fair Market Value of a share of the Stock on the date such Option is granted. 
  
 (c) The term of each Option granted to an Employee or Consultant shall be determined by the Committee and specified in a Stock Option Agreement, provided that no Option
shall be exercisable more than ten years from the date such Option is granted, and provided further that no ISO granted to a Control Person shall be exercisable more than five years from the date of the Option grant. 

 (d) The Committee shall determine and designate from time to time Employees or Consultants who are to be granted
Options, and shall specify in the Stock Option Agreement the nature of each Option granted and the number of shares of Stock subject to each such Option, provided, however, that in any calendar year, no Employee or Consultant may be granted an
Option to purchase more than 500,000 shares of Stock (determined without regard to when such Option is exercisable), subject to adjustment pursuant to Section 10. 
  
 (e) Notwithstanding any other provisions hereof, the aggregate Fair Market Value (determined at the time the ISO is granted) of the Stock with respect to which ISOs are
exercisable for the first time by any Employee during any calendar year under all plans of the Corporation and any Parent or “subsidiary corporation” (within the meaning of Section 424(f) of the Code) shall not exceed $100,000. To the
extent the limitation set forth in the preceding sentence is exceeded, the Options with respect to such excess shall be treated as NQSOs. 
  
 (f) The Committee shall determine whether any Option granted to an Employee or Consultant shall become exercisable in one or more installments and specify the installment dates in the Stock Option Agreement. The
Committee may also specify in the Stock Option Agreement such other provisions, not inconsistent with the terms of this Plan, as it may deem desirable, including such provisions as it may deem necessary to qualify any ISO under the provisions of
Section 422 of the Code. Unless otherwise determined by the Committee and specified in the Stock Option Agreement, all Options shall immediately become exercisable upon a Change in Control. 
  
 (g) All Options granted hereunder prior to the Initial Public Offering shall be conditional upon, and for all purposes hereunder, deemed granted upon, the Initial
Public Offering. 
  
 (h) The Committee may, at any time, grant new or additional options to any eligible Employee
or Consultant who has previously received Options under this Plan, or options under other plans, whether such prior Options or other options are still outstanding, have been exercised previously in whole or in part, or have been canceled. The
exercise price of such new or additional Options may be established by the Committee, subject to Section 6(b) hereof, without regard to such previously granted Options or other options. 
  
 SECTION 7. GRANTS OF OPTIONS TO NON-EMPLOYEE DIRECTORS. 
  
 (a) This Section 7 shall cease to be effective on the earlier of: (i) May 1, 2002, or (ii) the date the Corporation receives notification from The Nasdaq Stock Market, Inc. that amendments to the Edgewater Technology, Inc. 2000 Employee
Stock Option Plan to provide option grants to Non-Employee Directors do not require the approval of the stockholders of the Corporation. 
  
 (b) Non-Employee Directors of the Corporation shall be eligible to receive Options under the Plan only pursuant to the provisions of this Section 7. Each individual who agrees to become a Non-Employee Director after
September 1, 1999 shall receive upon his or her first election to the Board, without the exercise of the discretion of any person, an NQSO under the Plan relating to the purchase of 20,000 shares of Stock at an exercise price per share equal to the
Fair Market Value of one share of Stock as of the date of grant (an “Initial Grant”). Non-Employee Directors in office subsequent to the Initial Public Offering and prior to September 1, 1999, shall receive, as of the date of the first
grant described in the preceding sentence, without the exercise of the discretion of any person, an NQSO under the Plan relating to the purchase of 10,000 shares of Stock at an exercise price equal to the Fair Market Value of one share of Stock at
the date of grant. On the day of each annual meeting of stockholders, each person who is a continuing Non-Employee Director (excluding any newly-elected Non-Employee Director entitled to receive an Initial Grant) shall receive, without the exercise
of the discretion of any person, an NQSO under the Plan relating to the purchase of 5,000 shares of Stock. In the event that there are not sufficient shares available under this Plan to allow for the grant to each Non-Employee Director of an NQSO
for the number of shares provided herein, each Non-Employee Director shall receive an NQSO for his pro rata share of the total number of shares of Stock available under the Plan. 

 (c) The exercise price of each share of Stock subject to an Option granted to a Non–Employee Director shall
equal the Fair Market Value of a share of Stock on the date such Option is granted. 
  
 (d) Each Option granted
to a Non-Employee Director shall become exercisable in three equal installments on the date of grant and on each of the first two anniversaries of the date of grant, and shall have a term of five years from the date of grant. Notwithstanding the
exercise period of any Option granted to a Non-Employee Director, all such Options shall immediately become exercisable upon a Change in Control. 
  
 SECTION 8. EXERCISE OF OPTIONS. 
  
 (a) A Grantee or other permitted holder shall
exercise an Option by delivery of written notice to the Corporation setting forth the number of shares with respect to which the Option is to be exercised, together with cash, certified check, bank draft, wire transfer, or postal or express money
order payable to the order of the Corporation for an amount equal to the Option price of such shares and any income tax which may be required to be withheld as determined by the Committee pursuant to Section 12. The Committee may, in its sole
discretion, permit a Grantee to pay all or a portion of the exercise price by delivery of Stock or other property (including notes or other contractual obligations of Grantees to make payment on a deferred basis, such as through “cashless
exercise” arrangements, to the extent permitted by applicable law), and the methods by which Stock will be delivered or deemed to be delivered to Grantees. 
  
 (b) Except as provided pursuant to Section 9(a), no Option granted to an Employee or Consultant shall be exercised unless at the time of such exercise the Grantee is
then: (i) an employee of the Corporation or a Subsidiary (determined with reference to Section 2(w)(i) only); or (ii) a Consultant (determined with reference to Section 2(e)(i) only) of the Corporation or a Subsidiary (determined with reference to
Section 2(w)(i) only). 
  
 (c) Except as provided in Section 9(a), no Option granted to a Non-Employee Director
shall be exercised unless at the time of such exercise the Grantee is then a Non-Employee Director. 
  
 SECTION 9. EXERCISE OF
OPTIONS UPON TERMINATION. 
  
 (a) Unless otherwise determined by the Committee, upon termination of a
Grantee’s employment with the Corporation and its Subsidiaries, such Grantee may exercise any Options during the three-month period following such termination of employment, but only to the extent such Option was exercisable immediately prior
to such termination of employment. Notwithstanding the foregoing, if the Committee determines that such termination is for cause, all Options held by the Grantee shall immediately terminate. In addition, all Options granted on the basis of clause
(ii) of Section 2(e), Section 2(i) or Section 2(w) shall immediately terminate if the Committee determines, in its sole discretion, that the Consultant, Employee, or Subsidiary, as the case may be, will not become a Consultant, Employee or
Subsidiary within the meaning of clause (i) of such Sections. 
  
 (b) Unless otherwise determined by the
Committee and specified in the Stock Option Agreement, in no event shall any Option be exercisable for more than the maximum number of shares that the Grantee was entitled to purchase at the date of termination of the relationship with the
Corporation and its Subsidiaries. 
  
 (c) The sale of any Subsidiary shall be treated as a termination of
employment with respect to any Grantee employed by such Subsidiary. 
  
 (d) Subject to the foregoing, in the
event of death, Options may be exercised by a Grantee’s legal representative. Options transferred pursuant to Section 14 may also be exercised by a permitted holder. 
  
 SECTION 10. ADJUSTMENT UPON CHANGES IN CAPITALIZATION.    In the event any dividend or other distribution (whether in the form of cash, Stock, or other property),
recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, or share exchange, or other similar corporate transaction or event affects the Stock such that an adjustment is appropriate in
order to prevent
 

 
dilution or enlargement of the rights of Grantees under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and kind of shares of
Stock deemed to be available thereafter for grants of Options under Section 3, (ii) the number and kind of shares of Stock that may be delivered or deliverable in respect of outstanding Options, (iii) the number of shares with respect to which
Options may be granted to a given Grantee in the specified period as set forth in Section 6(d), and (iv) the exercise price or, if deemed appropriate, the Committee may make provision for a cash payment with respect to any conditions of, and the
criteria included in, Options (including, without limitation, cash payments in exchange for an Option or substitution of Options using stock of a successor or other entity) in recognition of unusual or nonrecurring events (including, without
limitation, events described in the preceding sentence) affecting the Corporation or any Subsidiary or the financial statements of the Corporation or any Subsidiary, or in response to changes in applicable laws, regulations, or accounting
principles. 
  
 SECTION 11. RESTRICTIONS ON ISSUING SHARES.    The Corporation shall not be obligated to
deliver Stock upon the exercise or settlement of any Options or take other actions under the Plan until the Corporation shall have determined that applicable federal and state laws, rules, and regulations have been complied with and such approvals
of any regulatory or governmental agency have been obtained and contractual obligations to which the Option may be subject have been satisfied. The Corporation, in its discretion, may postpone the issuance or delivery of Stock under any Option until
completion of such stock exchange listing or registration or qualification of such Stock or other required action under any federal or state law, rule, or regulation as the Corporation may consider appropriate, and may require any Grantee to make
such representations and furnish such information as it may consider appropriate in connection with the issuance or delivery of Stock under the Plan. 
  
 SECTION 12. TAX WITHHOLDING.    To the extent required by applicable federal, state, local or foreign law, a Grantee shall make arrangements satisfactory to the Corporation for the satisfaction of
any withholding tax obligations that arise by reason of an Option exercise or any sale of shares. The Corporation shall not be required to issue shares until such obligations are satisfied. The Committee may permit these obligations to be satisfied
by having the Corporation withhold a portion of the shares of the stock that otherwise would be issued to him or her upon the exercise of the Option, or to the extent permitted, by tendering shares previously acquired. 
  
 SECTION 13. DEFERRAL OF RECEIPT OF STOCK.    Effective upon the amendment of the Corporation’s deferred compensation plan to
expressly permit deferrals under this Section 13, a Grantee may, pursuant to the terms of such plan, as amended, defer receipt of Stock that would otherwise be delivered to such Grantee upon the exercise or settlement of any Option. 

 
 SECTION 14. TRANSFERABILITY. 
  
 (a) Except as provided below, no Option shall be subject to anticipation, sale, assignment, pledge, encumbrance, charge or transfer except by will or the laws of descent and distribution, and an Option shall be
exercisable during the Grantee’s lifetime only by the Grantee. 
  
 (b) Notwithstanding the foregoing, the
Committee may provide, in a Stock Option Agreement, that the Grantee may transfer NQSOs to family members or other persons or entities according to such terms as the Committee may determine; provided that the Grantee receives no consideration for
the transfer of the NQSO and the transferred NQSO shall continue to be subject to the same terms and conditions as were applicable to the NQSO immediately before the transfer. 
  
 SECTION 15. NON-COMPETITION.    If the Grantee breaches any non-competition agreement in effect with the Corporation or its Subsidiaries, all of the Grantee’s
outstanding Options shall immediately terminate, and the Corporation may require that the Grantee pay to the Corporation or its Subsidiaries (in Stock or cash) an amount equal to any gain arising from the exercise of Options during the forfeiture
period. The forfeiture period is the period beginning on the date that is six months before the Grantee’s termination of employment or service with the Corporation and its Subsidiaries and ending upon the termination of such non-competition
agreement.
 

 
The gain to be reimbursed is the amount by which the Fair Market Value of the Stock on the date of the Committee’s determination (or the date of any earlier sale or other disposition of the
Stock covered by the Option, if greater) exceeds the exercise price of the Option. 
  
 SECTION 16. GENERAL PROVISIONS.

  
 (a) Each Option shall be evidenced by a Stock Option Agreement. The terms and provisions of such Stock Option
Agreements may vary among Grantees and among different Options granted to the same Grantee. 
  
 (b) The grant of
an Option in any year shall not give the Grantee any right to similar grants in future years, any right to continue such Grantee’s employment relationship with the Corporation or its Subsidiaries, or, until such Option is exercised and share
certificates are issued, any rights as a stockholder of the Corporation. All Grantees shall remain subject to discharge to the same extent as if the Plan were not in effect. 
  
 (c) No Grantee, and no beneficiary or other persons claiming under or through the Grantee shall have any right, title or interest by reason of any Option to any
particular assets of the Corporation or its Subsidiaries, or any shares of Stock allocated or reserved for the purposes of the Plan or subject to any Option except as set forth herein. The Corporation shall not be required to establish any fund or
make any other segregation of assets to assure the payment of any Option. 
  
 (d) The issuance of shares of Stock
to Grantees, their legal representatives or other permitted holders shall be subject to any applicable taxes and other laws or regulations of the United States or of any state having jurisdiction thereof. 
  
 SECTION 17. AMENDMENT OR TERMINATION.    The Board may, at any time, alter, amend, suspend, discontinue or terminate this Plan;
provided, however, that no such action shall adversely affect the rights of Grantees to Options previously granted hereunder and, provided further, however, that any shareholder approval necessary or desirable in order to comply with Section 162(m)
or Section 422 of the Code (or other applicable law or regulation) shall be obtained in the manner required therein. The Committee may waive any conditions or rights under, or amend, alter, suspend, discontinue, or terminate, any Option theretofore
granted and any Stock Option Agreement relating thereto; provided, however, that, without the consent of an affected Grantee, no such action may materially impair the rights of such Grantee under such Option. Upon termination of an Option, the
Committee may (i) require that Grantees surrender their outstanding Options in exchange for a payment by the Corporation, in cash or Stock as determined by the Committee, in an amount equal to the amount by which the then Fair Market Value of the
shares of Stock subject to the Grantee’s unexercised Options exceeds the exercise price of the Options, or (ii) after giving Grantees an opportunity to exercise their outstanding Options, terminate any or all unexercised at such time as the
Committee deems appropriate. 
  
 SECTION 18. EFFECTIVE DATE OF PLAN.    This Plan is effective upon its initial
adoption by the Board and shall continue in effect until terminated by the Board. No ISO may be granted more than ten years after the adoption of the Plan by the Board or approval of the Plan by the stockholders, whichever is earlier. 

 
 
 
 This Plan was approved by stockholders on May 8, 1998.

  
 This Plan was amended and restated on August 31, 2000, which amendment did not require stockholder approval. 

 
 This Plan was amended and restated effective March 20, 2002, which amendment and restatement did not require stockholder approval.

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