4 1 f4_040703.txt FORM 4 ------------------------------ OMB APPROVAL ------------------------------ OMB Number: 3235-0287 Expires: January 31, 2005 Estimated average burden hours per response.........0.5 ------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 4 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940 |_| Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b). (Print or Type Responses) ________________________________________________________________________________ 1. Name and Address of Reporting Person* EDGEWATER III MANAGEMENT, L.P. -------------------------------------------------------------------------------- (Last) (First) (Middle) 900 N. MICHIGAN AVENUE, 14TH FLOOR -------------------------------------------------------------------------------- (Street) CHICAGO IL 60611 -------------------------------------------------------------------------------- (City) (State) (Zip) ________________________________________________________________________________ 2. Issuer Name and Ticker or Trading Symbol EPICEDGE, INC. (EDG) ________________________________________________________________________________ 3. I.R.S. Identification Number of Reporting Person, if an entity (voluntary) ________________________________________________________________________________ 4. Statement for Month/Day/Year APRIL 4, 2003 ________________________________________________________________________________ 5. If Amendment, Date of Original (Month/Day/Year) ________________________________________________________________________________ 6. Relationship of Reporting Person(s) to Issuer (Check all applicable) |_| Director |X| 10% Owner |_| Officer (give title below) |_| Other (specify below) ____________________________________________________________________ ________________________________________________________________________________ 7. Individual or Joint/Group Filing (Check Applicable line) |X| Form Filed by One Reporting Person |_| Form Filed by More than One Reporting Person ________________________________________________________________________________ ================================================================================ Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned ================================================================================

5. Amount of 6. 4. Securities Owner- Securities Acquired (A) or Beneficially ship 2A. 3. Disposed of (D) Owned Form: 7. 2. Deemed Transaction (Instr. 3, 4 and 5) Following Direct Nature of Trans- Execution Code ------------------------------- Reported (D) or Indirect 1. action Date, if (Instr. 8) (A) Transaction(s) Indirect Beneficial Title of Security Date any ------------ or (Instr. 3 & (I) Ownership (Instr. 3) (mm/dd/yy) (mm/dd/yy) Code V Amount (D) Price Instr.4) (Instr.4) (Instr.4) ------------------------------------------------------------------------------------------------------------------------------------ ~~Common Stock, $0.01 par value 2,450,000 (1) (1)~~ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ==================================================================================================================================== Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. * If the form is filed by more than one reporting person, see Instruction 4(b)(v).

FORM 4 (continued) Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities) ================================================================================

9. Number 10. of Owner- deriv- ship ative Form 2. Secur- of Conver- 5. 7. ities Deriv- 11. sion Number of Title and Amount Bene- ative Nature or Derivative 6. of Underlying 8. ficially Secur- of Exer- 3A. 4. Securities Date Securities Price Owned ity: In- cise Deemed Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of Follow- Direct direct Price 3. Execut- action or Disposed Expiration Date ---------------- Deriv- ing (D) or Bene- 1. of Trans- ion Code of(D) (Month/Day/Year) Amount ative Reported In- ficial Title of Deriv- action Date if (Instr. (Instr. 3, ---------------- or Secur- Trans- direct Owner- Derivative ative Date any 8) 4 and 5) Date Expira- Number ity action(s) (I) ship Security Secur- (mm/dd/ (mm/dd/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr. (Instr. 3) ity yy) yy) Code V (A) (D) cisable Date Title Shares 5) 4) 4) 4) ------------------------------------------------------------------------------------------------------------------------------------ ~~9.5%~~------------------------------------------------------------------------------------------------------------------------------------ ~~Series~~SERIES AB-1 ~~Convertible~~CONVERTIBLE ~~Convertible~~SERIES ~~Promissory~~B-1 ~~Preferred~~PREFERRED ~~Note~~CONVERTIBLE STOCK PREFERRED WARRANT $0.7501 1104/1104/0203 CJ(2) $41,~~585~~333,~~208~~333 Immed. ~~Stock~~04/04/12 6STOCK 3,~~113~~999,~~611 0~~ 999(15) 1,333,333 I (1) ------------------------------------------------------------------------------------------------------------------------------------ ~~8.0%~~SERIES ~~Series~~B-1 CONVERTIBLE SERIES B-1 ~~Convertible~~PREFERRED ~~Convertible~~CONVERTIBLE ~~Promissory~~STOCK ~~Preferred~~PREFERRED ~~Note~~WARRANT $0.7501 1104/1104/0203 CJ(3) $1200,~~217,011~~000 Immed. ~~Stock~~04/04/12 ~~1,622,681~~STOCK $2600,000(5) 200,000 ~~(1)~~I (1) ------------------------------------------------------------------------------------------------------------------------------------ ~~Series~~4% ACONVERTIBLE ~~Convertible~~SERIES ~~Preferred~~B-1 ~~Common~~PROMISSORY ~~Stock~~CONVERTIBLE 11NOTE PREFERRED DUE 2006 $0.75 04/1104/0203 CJ(4) 6$2,~~113~~000,~~611~~000 Immed. ~~Stock~~01/31/06 STOCK (5)(6~~,113,611~~) $~~0.75 6~~2,~~113~~000,~~611~~000 ~~(1)~~I (1) ------------------------------------------------------------------------------------------------------------------------------------ ~~Series~~------------------------------------------------------------------------------------------------------------------------------------ ~~B Convertible Preferred Common Stock 11/11/02 C 1,622,681 Immed. Stock 4,868,044 $0.75 1,622,681 (1) (1)~~ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ====================================================================================================================================

Explanation of Responses: (1) The shares are owned directly by Edgewater Private Equity Fund III, L.P. ("Edgewater Fund III"), a ten percent beneficial owner of the Issuer, indirectly by Edgewater III Management, L.P. ("Edgewater Management"), as the general partner of Edgewater Fund III, and indirectly by Edgewater III, Inc. ("Edgewater"), the general partner of Edgewater Management. James A. Gordon is the president and sole director of Edgewater. (2) Pursuant to a Letter Agreement entered into in November 2002, the Issuer issued a warrant in consideration for certain prior indebtedness. (3) Pursuant to a Letter Agreement entered into in January 2003, the Issuer issued a warrant in consideration for guaranteeing certain indebtedness. (4) This promissory note amended and restated the prior 8.0% Convertible Promissory Note, as reported on Form 4 filed with the SEC on November 13, 2002, by decreasing the interest rate, extending the maturity date and providing that the note is convertible into Series B-1 Convertible Preferred Stock. (5) The Series B-1 Convertible Preferred Stock is convertible into common stock on a three-for-one basis, subject to certain antidultion adjustments or upon the election of the holder upon a liquidation event. (6) Based upon the total amount due (including principal and interest) at the time of conversion divided by the conversion price. /s/ James A. Gordon 4/8/03 ---------------------------------------------------------- -------------- **Signature of Reporting Person Date By: James A. Gordon, individually and in his capacity as President of Edgewater III, Inc., general partner to Edgewater III Management, L.P., which is the general partner of Edgewater Private Equity Fund III, L.P. ** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). Page 2

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