<PAGE>


                              EMPLOYMENT AGREEMENT


         This Employment Agreement (the "Agreement"), made and entered into as
of the 15th day of June, 2001 (the "Effective Date") by and between Predictive
Systems, Inc., a Delaware corporation with principal offices located at 417
Fifth Avenue, New York, New York (the "Company"), and Andrew Zimmerman (the
"Executive"). The Company and the Executive may be referred to herein
individually as a "Party" or collectively as the "Parties".

                                   WITNESSETH

         WHEREAS, the Company has a need for the Executive's personal services
in an executive capacity; and

         WHEREAS, the Executive possesses the necessary strategic, financial,
planning, operational and managerial skills necessary to fulfill those needs;
and

         WHEREAS, the Executive and the Company desire to enter into a formal
Employment Agreement to fully recognize the contributions of Executive to the
Company and to assure continuous harmonious performance of the affairs of the
Company.

         NOW, THEREFORE, in consideration of the mutual promises, terms,
provisions, and conditions contained herein, the parties agree as follows:

1.       Position and Duties.

         (a) The Company hereby agrees to employ the Executive to serve in the
role of Chief Executive Officer of the Company, subject to the limitations set
forth herein. The Executive shall be responsible for the general management of
the affairs of the Company. The Executive accepts such employment upon the terms
and conditions set forth herein, and further agrees to perform to the best of
his abilities the duties generally associated with his position, as well as such
other duties commensurate with his position as Chief Executive Officer as may be
reasonably assigned by the Board. The Executive shall, at all times during the
Term (as defined below), report directly to the Board. The Executive shall
perform his duties diligently and faithfully and shall devote his full business
time and attention to such duties, provided however, that nothing herein shall
preclude the Executive from (i) serving on the boards of directors of a
reasonable number of other corporations with the prior written approval of the
Board (which approval shall not be unreasonably withheld), (ii) serving on the
boards of a reasonable number of trade associations and/or charitable
organizations, (iii) engaging in charitable activities and community affairs and
(iv) managing his personal investments and affairs, provided that such
activities do not conflict or interfere with the effective discharge of his
duties and responsibilities under this Agreement, or otherwise violate any of
the terms of this Agreement.

         (b) The Executive shall be elected to the Board within one month of the
Effective Date and shall be a member of the Board, with all rights and
privileges of a member of the Board, during the Term.

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         (c) It is understood and agreed that the Executive shall be granted an
unpaid leave of absence from the Effective Date of this Agreement through July
9, 2001 (the "Start Date").

2.       Term of Employment and Renewal.

         The term of Executive's employment under this Agreement will commence
on the Effective Date. Subject to the provisions of Section 10 of this
Agreement, the term of Executive's employment hereunder shall be for an initial
term of three (3) years from the Start Date (the "Initial Term"). The Initial
Term of this Agreement shall be automatically extended for successive one (1)
year periods (each a "Renewal Period") unless the Company or the Executive gives
written notice to the other at least ninety (90) days prior to the expiration of
the Initial Term or a Renewal Period, of such Party's election not to extend
this Agreement. References herein to the "Term" shall mean the Initial Term as
it may be so extended by one or more Renewal Periods. The last day of the Term
is the "Expiration Date."

3.       Compensation and Benefits.

         (a) Salary. Commencing on the Start Date, the Company agrees to pay the
Executive a base salary at an annual rate of Three Hundred Thousand Dollars
($300,000), payable in such installments as is the policy of the Company (the
"Salary"), but no less frequently than monthly. The Salary shall be eligible for
annual review by the Board beginning with calendar year 2003, but in no event
shall the Salary increase prior to the second anniversary of the Start Date.

         (b) Bonuses. The Executive shall be entitled to receive bonuses as
follows:

                  (i) The Executive shall receive a signing bonus of One Hundred
Thousand Dollars ($100,000), payable on or about the Start Date of this
Agreement.

                  (ii) The Executive shall be eligible to receive an annual cash
bonus for each calendar year of employment with the Company (the "Annual Bonus")
up to a maximum of Two Hundred Thousand Dollars ($200,000). Payment of Fifty
Thousand Dollars ($50,000) of the Annual Bonus shall be at the discretion of the
Board. Payment of One Hundred Fifty Thousand Dollars ($150,000) of the Annual
Bonus shall be based on achievement of performance goals to be mutually agreed
upon by the Executive and the Board. Performance goals for the Annual Bonus may
have up to three tiers pursuant to which the Executive may receive specified
percentages of the maximum Annual Bonus based upon partial achievement of the
performance goals.

                  (iii) The Executive shall be eligible to receive an additional
annual cash bonus for each calendar year of employment with the Company (the
"Stretch Bonus") up to a maximum of Two Hundred Thousand Dollars ($200,000).
Payment of the Stretch Bonus shall based on achievement of stretch performance
goals agreed upon by the Executive and the Board to represent achievable, but
exceptional, performance. Performance goals for the Stretch Bonus may have up to
two tiers pursuant to which the Executive may receive specified percentages of
the maximum Stretch Bonus based upon partial achievement of the performance
goals.

                  (iv) Performance goals for the Annual Bonus and stretch
performance goals for the Stretch Bonus shall be set, in writing, no later than
thirty (30) days after the Start Date for


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calendar year 2001, and no later than thirty (30) days after the commencement of
each calendar year thereafter.

                  (v) Achievement of the performance goals and the stretch
performance goals with respect to each calendar year of the Company shall be
determined in good faith by the Board as soon as possible after the end of each
calendar year. Any Annual Bonus and any Stretch Bonus payable with respect to
such year shall be paid to the Executive within ninety (90) days after the
achievement of the performance goals and the stretch performance goals has been
determined.

                  (vi) The Annual Bonus and the Stretch Bonus for the year 2001
shall be prorated to reflect the Executive's commencement of service on July 9,
2001.

                  (vii) The amount of the Annual Bonus and the Stretch Bonus
shall be eligible for annual review by the Board beginning with calendar year
2003, but in no event shall the maximum amount of the Annual Bonus or the
Stretch Bonus increase prior to the second anniversary of the Start Date.

         (c) Benefits. The Executive shall be entitled to participate in all
employee benefit plans which the Company provides or may establish from time to
time for the benefit of its employees or senior-level executives, including,
without limitation, group life, medical, surgical, dental and other health
insurance, short and long-term disability, deferred compensation, profit-sharing
and similar plans subject to the terms and conditions of the applicable plans
and/or policies. The Executive shall also be entitled to paid vacation of twenty
(20) days per year, in accordance with the Company's vacation policy.

         (d) Stock Options. As of the Effective Date, the Company shall grant
the Executive stock options as follows:

                  (i) an option to purchase Five Hundred Thousand (500,000)
shares of the Company's common stock at an exercise price equal to the closing
selling price of the Company's stock on the Nasdaq National Market on the date
of the grant ("Fair Market Value"), subject to the terms and conditions of the
Company's 1999 Stock Incentive Plan, the form of Notice of Grant of Stock Option
attached as Exhibit B-1 and the form of Stock Option Agreement attached as
Exhibit B-2;

                  (ii) an option to purchase One Million One Hundred Thousand
(1,100,000) shares of the Company's common stock at an exercise price equal to
Fair Market Value on the date of grant subject to the terms and conditions as
provided in the form of Stand-Alone Notice of Stock Option Grant attached as
Exhibit C and the form of Stand-Alone Stock Option Agreement attached as Exhibit
D; and

                  (iii) an option to purchase Four Hundred Thousand (400,000)
shares of the Company's common stock at an exercise price equal to two (2) times
the Fair Market Value on the date of grant subject to the terms and conditions
as provided in the form of Stand-Alone Notice of Stock Option Grant attached as
Exhibit E and the form of Stand-Alone Stock Option Agreement attached as Exhibit
D.


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Each of the foregoing options shall vest as to 25% of the option shares covered
by such option on the first anniversary of the grant, and in thirty-six (36)
equal monthly installments thereafter, as long as the Executive remains employed
by the Company on such vesting dates, subject to the terms of this Agreement and
the relevant Stock Option Agreements referred to above.

         (e) Other Long-Term Incentives. The Executive shall be eligible to
participate in any ongoing long-term incentive programs of the Company subject
to the terms and conditions of such programs.

         (f) Perquisites. The Executive shall be entitled to perquisites on the
same basis as provided to other senior-level executives of the Company from time
to time.

         (g) Expenses. The Company shall pay or reimburse the Executive for all
reasonable out-of-pocket expenses actually incurred by him during the Term in
performing services hereunder, provided that the Executive properly accounts for
such expenses in accordance with the Company's policies. Upon submission of
appropriate documentation, the Company shall also pay for 50% of the attorneys'
fees incurred by the Executive in connection with preparation of this Agreement,
but in no event shall the Company pay more than $7500.

4.       Confidentiality, Disclosure of Information.

         (a) The Executive recognizes and acknowledges that the Executive will
have access to Confidential Information (as defined below) relating to the
business or interests of the Company or of persons with whom the Company may
have business relationships. Except as permitted herein, the Executive will not
during the Term, or at any time thereafter, use, disclose or permit to be known
by any other person or entity, any Confidential Information of the Company
(except (i) as required by applicable law, by a court of law or an arbitrator,
by any governmental agency having supervisory authority over the business of the
Company or by any administrative or legislative body (including a committee
thereof) with jurisdiction to do so, (ii) as necessary in the good faith
furtherance of the Company's business objectives, as long as the Executive
seeks, to the maximum extent possible, to protect such Confidential Information
through contractual or other legal mechanism; (iii) with the Board's prior
written authorization). The term "Confidential Information" means information
relating to the Company's business affairs, proprietary technology, trade
secrets, patented processes, research and development data, know-how, market
studies and forecasts, competitive analyses, pricing policies, employee lists,
employment agreements (other than this Agreement), personnel policies, the
substance of agreements with customers, suppliers and others, marketing
arrangements, customer lists, commercial arrangements or any other information
relating to the Company's business that is not generally known to the public or
to actual or potential competitors of the Company (other than through a breach
of this Agreement). This obligation shall continue until such Confidential
Information becomes available to the public or the relevant trade or industry,
other than pursuant to a breach of this Section 4 by the Executive, regardless
of whether the Executive continues to be employed by the Company.

         (b) It is further agreed and understood by and between the parties to
this Agreement that all "Company Materials," which include, but are not limited
to, computers, computer software, computer disks, tapes, printouts, source, HTML
and other code, flowcharts, schematics, designs,


                                       4
<PAGE>

graphics, drawings, photographs, charts, graphs, notebooks, customer lists,
sound recordings, other tangible or intangible manifestation of content, and all
other documents whether printed, typewritten, handwritten, electronic, or stored
on computer disks, tapes, hard drives, or any other tangible medium, as well as
samples, prototypes, models, products and the like, shall be the exclusive
property of the Company and, upon termination of Executive's employment with the
Company, and/or upon the request of the Company, all Company Materials,
including copies thereof, as well as all other Company property then in the
Executive's possession or control, shall be returned to and left with the
Company except for any documents for which the Company has given written consent
to removal and except for his personal Rolodex, calendars, diaries, personal
files and similar items, provided that such items must be examined by an
authorized agent of the Company and all Confidential Information deleted prior
to being retained by the Executive.

5.       Inventions Discovered by Executive.

         The Executive shall promptly disclose to the Company any invention,
improvement, discovery, process, formula, or method or other intellectual
property, whether or not patentable or copyrightable (collectively,
"Inventions"), conceived or first reduced to practice by the Executive, either
alone or jointly with others, while performing services hereunder (or, if based
on any Confidential Information, at any time during or after the Term), (a)
which pertain to any line of business activity of the Company, whether then
conducted or then being actively planned by the Company, with which the
Executive was or is involved, (b) which is developed using time, material or
facilities of the Company, whether or not during working hours or on the Company
premises, or (c) which directly relates to any of the Executive's work during
the Term, whether or not during normal working hours. The Executive hereby
assigns to the Company all of the Executive's right, title and interest in and
to any such Inventions. During and after the Term, the Executive shall execute
any documents necessary to perfect the assignment of such Inventions to the
Company and to enable the Company to apply for, obtain and enforce patents,
trademarks and copyrights in any and all countries on such Inventions,
including, without limitation, the execution of any instruments and the giving
of evidence and testimony, without further compensation beyond the Executive's
agreed compensation during the course of the Executive's employment. Without
limiting the foregoing, the Executive further acknowledges that all original
works of authorship by the Executive, whether created alone or jointly with
others, related to the Executive's employment with the Company and which are
protectable by copyright, are "works made for hire" within the meaning of the
United States Copyright Act, 17 U.S.C. ss. 101, as amended, and the copyright of
which shall be owned solely, completely and exclusively by the Company. If any
Invention is considered to be work not included in the categories of work
covered by the United States Copyright Act, 17 U.S.C. ss. 101, as amended, such
work is hereby assigned or transferred completely and exclusively to the
Company. The Executive hereby irrevocably designates counsel to the Company as
the Executive's agent and attorney-in-fact to do all lawful acts necessary to
apply for and obtain patents and copyrights and to enforce the Company's rights
under this Section. This Section 5 shall survive the termination of this
Agreement. Any assignment of copyright hereunder includes all rights of
paternity, integrity, disclosure and withdrawal and any other rights that may be
known as or referred to as "moral rights" (collectively "Moral Rights"). To the
extent such Moral Rights cannot be assigned under applicable law and to the
extent the following is allowed by the laws in the various countries where Moral
Rights exist, the Executive hereby waives such Moral Rights and


                                       5
<PAGE>


consents to any action of the Company that would violate such Moral Rights in
the absence of such consent. The Executive agrees to confirm any such waivers
and consents from time to time as requested by the Company.

6.       Non-Competition and Non-Solicitation.

         The Executive acknowledges that the Company has invested substantial
time, money and resources in the development and retention of its Inventions,
Confidential Information (including trade secrets), customers, accounts and
business partners, and further acknowledges that during the course of the
Executive's employment with the Company the Executive will have access to the
Company's Inventions and Confidential Information (including trade secrets), and
will be introduced to existing and prospective customers, accounts and business
partners of the Company. The Executive acknowledges and agrees that the
Company's business is international in scope. The Executive acknowledges and
agrees that any and all "goodwill" associated with any existing or prospective
customer, account or business partner belongs exclusively to the Company,
including, but not limited to, any goodwill created as a result of direct or
indirect contacts or relationships between the Executive and any existing or
prospective customers, accounts or business partners. Additionally, the parties
acknowledge and agree that the Executive possesses skills that are special,
unique or extraordinary and that the value of the Company depends, in great
part, upon his use of such skills on its behalf.

         In recognition of this, the Executive covenants and agrees that:

         (a) During the Term, and for a period of one (1) year thereafter, the
Executive may not, without the prior written consent of the Board (whether as an
employee, agent, servant, owner, partner, consultant, independent contractor,
representative, stockholder or in any other capacity whatsoever), participate in
any business that offers products or services directly competitive with any of
those offered by the Company, or that were under active development by the
Company during the Term (any such business, a "Competitor," any such products or
services, "Competitive Services"), provided that nothing herein shall prohibit
the Executive from (i) owning securities of corporations which are listed on a
national securities exchange or traded in the national over-the-counter market
in an amount which does not exceed 3% of the outstanding shares of such
corporation or (ii) after termination of his employment (x) participating in the
business of a separately managed and operated division, subsidiary or affiliate
of a Competitor, provided that such division, subsidiary or affiliate does not
offer Competitive Services and the Executive has no business communications with
employees of any division, subsidiary or affiliate of the Competitor that offers
Competitive Services regarding the business of the competitive division,
subsidiary or affiliate or (y) becoming affiliated with an entity that is not a
Competitor but that is subsequently acquired by or merged with a Competitor,
provided that, following such acquisition or merger, he is participating in the
business of a separately managed and operated division, subsidiary or affiliate
of the Competitor that does not offer Competitive Services and he has no
business communications with employees of any division, subsidiary or affiliate
of the Competitor that offers Competitive Services regarding the business of the
competitive division, subsidiary or affiliate.

         (b) During the Term, other than in the course of the proper performance
of his duties hereunder, and for a period of one (1) year thereafter, the
Executive may not knowingly, directly


                                       6
<PAGE>


or indirectly through another individual or individuals, entice, solicit or
encourage any Company employee to leave the employ of the Company or any
independent contractor to sever its engagement with the Company, absent prior
written consent to do so from the Board.

         (c) During the Term, and for a period of one (1) year thereafter, the
Executive may not knowingly, directly or indirectly through another individual
or individuals, entice, solicit or encourage any customer, prospective customer,
vendor, strategic partner or business associate of the Company (i) to cease
doing business with the Company, reduce its relationship with the Company or
refrain from establishing or expanding a relationship with the Company or (ii)
for the purpose of offering Competitive Services.

7.       Non-Disparagement.

         (a) The Executive hereby agrees that during the Term, and for a period
of one (1) year thereafter, the Executive will not intentionally make any public
statement that is disparaging about the Company or any of its officers or
directors, including, but not limited to, any public statement that disparages
the products, services, finances, financial condition, capabilities or other
aspect of the business of the Company.

         (b) The Company hereby agrees that during the Term and for a period of
one (1) year thereafter its officers and directors will not intentionally make
any public statement that is disparaging about the Executive, including, but not
limited to, any statement that disparages the services, capabilities,
performance or any other aspect of the Executive's relationship with the
Company.

         (c) This Section 7 shall not prevent any person or entity subject to it
from responding publicly to incorrect or disparaging public statements made in
violation of this Section 7 to the extent reasonably necessary to correct or
refute such public statements or from making truthful statements when necessary
to enforce this Agreement or required by applicable law, by a court of law or an
arbitrator, by any governmental agency having supervisory authority over the
business of the Company or by any administrative or legislative body (including
a committee thereof) with jurisdiction to do so.

8.       Provisions Necessary and Reasonable.

         (a) The Executive agrees that

                  (i) the provisions of Sections 4, 5, 6 and 7 of this Agreement
are necessary and reasonable to protect the Company's Confidential Information,
Inventions, and goodwill;

                  (ii) the specific temporal, geographic and substantive
provisions set forth in Section 6 of this Agreement are reasonable and necessary
to protect the Company's business interests in part because the Company's
business is international in scope; and

                  (iii) in the event of any breach of any of the covenants set
forth herein, the Company would suffer substantial irreparable harm and would
not have an adequate remedy at law for such breach. In recognition of the
foregoing, the Executive agrees that in the event of a breach or threatened
breach of any of these covenants, in addition to such other remedies as the


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Company may have at law, without posting any bond or security, the Company shall
be entitled to seek equitable relief, in the form of specific performance,
and/or temporary, preliminary or permanent injunctive relief, or any other
equitable remedy which then may be available. The seeking of such injunction or
order shall not affect the Company's right to seek and obtain damages or other
equitable relief on account of any such actual or threatened breach.

         (b) If any of the covenants contained in Sections 4, 5, 6 and 7 hereof,
or any part thereof, is hereafter construed to be invalid or unenforceable, the
same shall not affect the remainder of the covenant or covenants, which shall be
given full effect without regard to the invalid portions.

         (c) If any of the covenants contained in Sections 4, 5, 6 and 7 hereof,
or any part thereof, is held to be unenforceable by a court of competent
jurisdiction because of the temporal or geographic scope of such provision or
the area covered thereby, the Parties agree that the court making such
determination shall have the power to reduce the duration and/or geographic area
of such provision and, in its reduced form, such provision shall be enforceable.

9.       Representations.

         (a) Representations by the Executive.

                  (i) The Executive represents that the Executive has no
agreement or other legal obligation with any prior employer, or any other person
or entity, that restricts the Executive's ability to accept employment, or to
perform any function for, the Company.

                  (ii) The Executive has been advised by the Company that at no
time should the Executive divulge to or use for the benefit of the Company any
trade secret or confidential or proprietary information of any previous
employer; the Executive expressly acknowledges that the Executive has not to the
best of his knowledge divulged or used any such information for the benefit of
the Company.

                  (iii) The Executive acknowledges that the Executive has not
and will not knowingly misappropriate any Invention that the Executive played
any part in creating while working for any former employer.

                  (iv) The Executive acknowledges that the Company is basing
important business decisions on these representations, and affirms that all of
the statements included herein are true to the best of his knowledge.

         (b) Representations by the Company.

                  (i) The Company represents that it is fully authorized by all
necessary action of its Board and any other body, entity or person whose action
is required to enter into this Agreement and to perform its obligations under it
and will, in a reasonably prompt manner, take all commercially reasonable
actions necessary to allow performance of all obligations hereunder.

                  (ii) The Company acknowledges that the Executive has relied
upon such representations in entering into this Agreement.


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<PAGE>

10.      Termination and Severance; Change of Control.

         Notwithstanding the provisions of Section 2 of this Agreement, the
Executive's employment hereunder may terminate under the following
circumstances:

         (a) Termination by the Company for Cause.

                  (i) The Company may terminate the Executive's employment under
this Agreement for Cause at any time, subject to the requirements of Section
10(a)(ii) below. For purposes of this Agreement, "Cause" is defined as (A) the
Executive's willful and material breach of the terms of this Agreement; (B) the
Executive's commission of any felony or any crime involving moral turpitude; (C)
willful gross neglect or willful misconduct by the Executive in connection with
his position hereunder; or (D) the Executive's willful refusal to perform his
duties hereunder.

                  (ii) A termination for Cause shall not take effect unless the
provisions of this Section 10(a)(ii) are compiled with. The Executive shall be
given written notification by the Board of the termination for Cause, such
notification to state in reasonable detail the grounds on which the proposed
termination for Cause is based. Such written notification shall be given within
ninety (90) days of the Board learning of the grounds for such termination. The
Executive shall be given ten (10) calendar days' written notice, a hearing
before the Board and one opportunity to cure prior to a termination for Cause
pursuant to Section 10(a)(i)(D).

                  (iii) Upon the termination for Cause of Executive's employment
(A) the Executive shall be entitled to Salary earned under this Agreement prior
to the date of termination, any earned but unpaid bonus, and any accrued but
unused vacation; and (B) any unvested stock options shall be forfeited and the
Executive shall have three (3) months in which to exercise any vested stock
options, provided however that if the basis for termination of Executive's
employment constitutes Misconduct under the relevant Stock Option Agreements
referred to above, then any unvested stock option shall terminate immediately
and cease to be outstanding.

         (b) Termination by the Company Without Cause. The Executive's
employment under this Agreement may be terminated without Cause (other than
owing to death or Disability) by the Company, provided, however, that if the
Company terminates the Executive's employment without Cause, or the Executive
terminates his employment for Good Reason, as defined below, the Executive shall
be entitled to:

                  (i) Salary through the date of termination;

                  (ii) a lump sum payment equal to Salary for a period of 12
months, at the annualized rate in effect on the date of termination, payable as
provided for in Exhibit A hereto;

                  (iii) all outstanding options scheduled to vest within the
one-year period following termination shall immediately become fully vested and
exercisable and all vested options shall remain exercisable through the end of
their originally scheduled terms;


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<PAGE>


                  (iv) continuation health coverage for the Executive and any
eligible dependents covered as of the effective date of the termination,
pursuant to COBRA, at the Company's expense for a period of 12 months; and

                  (v) in the event of termination occurring in the months of
July through December of any given calendar year, a pro rata portion of the
Annual Bonus for that year.

         As a condition of receiving severance benefits pursuant to this Section
10(b), the Executive shall execute and deliver to the Company prior to his
receipt of such benefits a general release substantially in the form attached
hereto as Exhibit A.

         (c) Termination by the Executive. The Executive may terminate his
employment hereunder upon thirty days (30) days' written notice to the Company.

                  (i) In the event of termination by the Executive of his
employment hereunder pursuant to this subsection 10(c) other than for Good
Reason, (y) the Company may elect to pay the Executive during the notice period
(or for any remaining portion of that period) the Salary and benefits at the
rate of compensation the Executive was receiving immediately before such notice
of termination was tendered in lieu of actual notice and (z) the Executive shall
have the same entitlements as under Section 10(a)(iii) above.

                  (ii) The Executive may also terminate his employment hereunder
for "Good Reason." For purposes of this Agreement, "Good Reason" shall mean
termination by the Executive of his employment following the occurrence of any
of the following events without his consent:

                           (A) a material breach of this Agreement by the
         Company;

                           (B) a material reduction in the Executive's duties or
         responsibilities;

                           (C) a change in the Executive's reporting
         relationship so that he no longer reports directly to the Board;

                           (D) the failure of the Company to obtain the
         assumption in writing of its obligation to perform this Agreement by
         any successor to all or substantially all of the assets of the Company
         within a reasonable period after a merger, consolidation, sale or
         similar transaction; or

                           (E) a relocation of the Executive's principal
         worksite to a location 50 miles or more from the location of the
         Company's principal offices as of the Effective Date.

Provided, however, that the Executive must deliver to the Company written notice
of his intention to terminate his employment with Good Reason within thirty (30)
days following the Executive's discovery of the event or events constituting the
grounds for the termination, and the Company shall have thirty (30) days
following its receipt of such notice to cure such grounds prior to the
effectiveness of such termination.


                                       10
<PAGE>

                  (iii) In the event the Executive terminates his employment
under this Agreement for Good Reason, he shall have the same entitlements as
under Section 10(b) above.

         (d) Death. In the event of the Executive's death during the Term, the
Executive's employment hereunder shall immediately and automatically terminate,
and the Company shall have no further obligation or duty to the Executive or his
estate or beneficiaries other than for the Salary earned under this Agreement to
the date of termination, any payments or benefits due under Company policies or
benefit plans and, in the case of the Executive's death occurring during the
months of July through December of any given calendar year, a pro rata portion
of the Annual Bonus for that calendar year.

         (e) Disability. The Company may terminate the Executive's employment
hereunder, upon written notice to the Executive, in the event that the Executive
becomes disabled during the Term through any condition of either a physical or
psychological nature and, as a result, is, with or without reasonable
accommodation, unable to perform the essential functions of the services
contemplated hereunder for (a) a period of ninety (90) consecutive days, or (b)
for shorter periods aggregating one hundred twenty (120) days during any twelve
(12) month period during the Term. Any such termination shall become effective
upon mailing or hand delivery of notice that the Company has elected its right
to terminate under this subsection 10(e), and the Company shall have no further
obligation or duty to the Executive other than for salary earned under this
Agreement prior to the date of termination, any payments or benefits due under
Company policies or benefit plans and, in the case of termination hereunder
occurring during the months of July through December of any given calendar year,
a pro rata portion of the Annual Bonus for that calendar year.

         (f) Effect of Non-Renewal. In the event that the Company gives notice
of its election not to extend the Term of the Agreement for a Renewal Period
pursuant to Section 2 above, the Company shall continue to pay the Executive
full compensation as defined in Section 3 of this Agreement from the date the
Executive receives such notice through the Expiration Date. The Executive shall
not be entitled to any additional compensation other than any payments or
benefits due under Company policies or benefit plans.

         (g) Change of Control. In the event a Change in Control or Hostile
Takeover, as defined in the Company's 1999 Stock Incentive Plan (collectively a
"Change of Control"), occurs on or before June 6, 2002, Fifty Percent (50%) of
any unvested stock options granted to the Executive shall accelerate and vest in
full immediately prior to the Change of Control, provided the Executive remains
employed by the Company on the date of such Change of Control. Any remaining
unvested stock options granted to the Executive shall vest in equal monthly
installments over a period of twelve months from the date of the Change of
Control, provided the Executive remains employed by the Company on such vesting
dates. If (i) the Executive is terminated other than for Cause, Disability or
death, or (ii) he terminates his employment for Good Reason, within 60 days
prior to the announcement of a Change of Control or within twelve months from
the effective date of the Change of Control, then all unvested stock options
granted to the Executive shall accelerate and vest in full. If a Change of
Control occurs after June 6, 2002, then all unvested stock options granted to
the Executive shall accelerate and vest in full immediately prior to the Change
of Control, provided the Executive remains employed by the Company on the date
of such Change of Control.


                                       11
<PAGE>

         (h) Resignation from the Board. Upon the termination of his employment
hereunder for any reason, the Executive agrees to immediately resign from his
position on the Company's Board of Directors.

11.      Choice of Law.

         The Executive acknowledges that a substantial portion of the Company's
business is based out of and directed from the State of New York. The Executive
also acknowledges that during the course of the Executive's employment with the
Company the Executive will have substantial contacts with New York.

         The validity, interpretation and performance of this Agreement shall be
governed by, and construed in accordance with, the internal law of New York,
without giving effect to conflicts of law principles. Both Parties agree that
the exclusive venue for any action, demand, claim or counterclaim relating to
the terms and provisions of Sections 4, 5, 6 and 7 of this Agreement, or to
their breach, shall be in the state or federal courts located in the State and
County of New York and that such courts shall have personal jurisdiction over
the Parties to this Agreement.

12.      Miscellaneous.

         (a) Assignment.

                  (i) This Agreement shall be binding upon and shall inure to
the benefit of the Company, its successors and assigns. Rights or obligations of
the Company under this Agreement may be assigned or transferred by the Company
pursuant to a merger or consolidation in which the Company is not the continuing
entity, or the sale or liquidation of all or substantially all of the assets of
the Company, provided that the assignee or transferee is the successor to all or
substantially all of the assets of the Company and such assignee or transferee
assumes the liabilities, obligations and duties of the Company, as contained in
this Agreement, either contractually or as a matter of law. The Company further
agrees that, in the event of a sale of assets or liquidation as described in the
preceding sentence, it shall take whatever action it reasonably can in order to
cause such assignee or transferee expressly to assume the liabilities,
obligations and duties of the Company hereunder. The term the "Company" as used
herein shall include such successors and assigns. Neither this Agreement nor any
right or interest hereunder shall be assignable or transferable by the
Executive, his beneficiaries or legal representatives, except by will or by the
laws of descent and distribution.

                  (ii) The Executive shall be entitled, to the extent permitted
under any applicable law, to select and change a beneficiary or beneficiaries to
receive any compensation or benefit payable hereunder following the Executive's
death by giving the Company written notice thereof. In the event of the
Executive's death or a judicial determination of his incompetence, references in
this Agreement to the Executive shall be deemed, where appropriate, to refer to
his beneficiaries, estate or other legal representative.

         (b) Withholding. All salary and bonus payments required to be made by
the Company to the Executive under this Agreement shall be subject to
withholding taxes, social security and other payroll deductions in accordance
with the Company's policies applicable to employees of the Company at the
Executive's level.


                                       12
<PAGE>


         (c) Entire Agreement. Except as otherwise specifically provided for
herein, this Agreement sets forth the entire agreement between the Parties and
supersedes any prior communications, agreements and understandings, written or
oral, with respect to the terms and conditions of the Executive's employment. In
the event of any inconsistency between any provision of this Agreement and any
provision of any written plan, employee handbook or personnel manual of the
Company or any of its affiliates, the provisions of this Agreement shall control
unless the Executive otherwise agrees in a writing which expressly refers to the
provision of this Agreement whose control he is waiving.

         (d) Amendments. Any attempted modification of this Agreement will not
be effective unless signed by an authorized officer of the Company and the
Executive.

         (e) Waiver of Breach. No waiver by either Party of any breach by the
other Party of any condition or provision contained in this Agreement to be
performed by such other Party shall be deemed a waiver of a similar or
dissimilar condition or provision at the same or any prior or subsequent time.
Any waiver must be in writing and signed by the Executive or an authorized
officer of the Company, as the case may be. The Executive understands that a
breach by him of any provision of this Agreement may only be waived by an
authorized officer of the Company.

         (f) Severability. If any provision of this Agreement should, for any
reason, be held invalid or unenforceable in any respect by a court of competent
jurisdiction, then the remainder of this Agreement, and the application of such
provision in circumstances other than those as to which it is so declared
invalid or unenforceable, shall not be affected, and each such provision of this
Agreement shall be valid and enforceable to the fullest extent permitted by law.

         (g) Notices. Any notices, requests, demands and other communications
provided for by this Agreement shall be in writing and shall be effective when
delivered by private messenger, private overnight mail service, or, if to the
Company, by facsimile (with confirmation in writing) as follows (or to such
other address as either Party shall designate by notice in writing to the other
in accordance herewith):

                  If to the Company:

                  Predictive Systems, Inc.
                  417 Fifth Avenue
                  New York, New York 10016
                  Fax number:  212.898.1331
                  Attn:  General Counsel

                  With a copy to:

                  Brobeck, Phleger & Harrison, LLP
                  1633 Broadway
                  47th Floor
                  New York, New York 10019
                  Attn: Daniel A. Weisberg, Esq.


                                       13
<PAGE>

                  If to Executive:

                  Andrew Zimmerman
                  c/o Predictive Systems, Inc.
                  417 Fifth Avenue
                  New York, New York 10016

         (h) Survival. The Executive and the Company agree that certain
provisions of this Agreement shall survive the expiration or termination of this
Agreement and the termination of the Executive's employment with the Company.
Such provisions shall be limited to those within this Agreement which, by their
express or implied terms, obligate either Party to perform any obligation, or
create an entitlement that runs beyond the termination of the Executive's
employment or termination of this Agreement.

         (i) Indemnification. The Executive shall be entitled to all rights of
indemnification as provided for in the Company's certificate of incorporation
and by-laws as presently in effect and/or applicable insurance policies.

         (j) Arbitration of Disputes. Any controversy or claim arising out of
this Agreement or any aspect of the Executive's relationship with the Company
including the cessation thereof (other than disputes with respect to alleged
violations of the covenants contained in Sections 4, 5, 6 or 7 hereof, and the
Company's pursuit of the remedies described in Section 8 hereof in connection
therewith) shall be resolved by arbitration in accordance with the then existing
Commercial Arbitration Rules of the American Arbitration Association, in New
York, New York, and judgment upon the award rendered may be entered in any court
having jurisdiction thereof. The parties shall split equally the costs of
arbitration, except that each party shall pay its own attorneys' fees. The
Parties agree that the award of the arbitrator shall be final and binding.

         (k) Rights of Other Individuals. Except as otherwise provided in this
Agreement, this Agreement confers rights solely on the Executive and the
Company. This Agreement is not a benefit plan and confers no rights on any
individual or entity other than the undersigned.

         (l) Non-exclusivity of Rights. Nothing in this Agreement shall prevent
or limit the Executive's continuing or future participation in any benefit,
bonus, incentive or other plan or program provided by the Company and for which
the Executive may qualify by the express terms of such benefit, bonus, incentive
or other plan or program, nor shall anything herein limit or otherwise affect
such rights as the Executive may have under any other written agreements with
the Company or any of its affiliated companies which are signed by an authorized
officer of the Company.

         (m) No Mitigation; No Offset. In the event of any termination of his
employment hereunder, the Executive shall be under no obligation to seek other
employment nor shall any amounts due him pursuant to Section 10(b) be offset by
any other compensation received by the Executive.


                                       14
<PAGE>


(n) Headings. The Parties acknowledge that the headings in this Agreement are
for convenience of reference only and shall not control or affect the meaning or
construction of this Agreement.

         (o) Advice of Counsel. The Executive and the Company hereby acknowledge
that each Party has had adequate opportunity to review this Agreement, to obtain
the advice of counsel with respect to this Agreement, and to reflect upon and
consider the terms and conditions of this Agreement. The Parties further
acknowledge that each Party fully understands the terms of this Agreement and
has voluntarily executed this Agreement.

         (p) Counterparts. This Agreement may be executed in two or more
counterparts.

         IN WITNESS WHEREOF, the undersigned have duly executed this Agreement
as of the day and year set forth below.

EXECUTIVE                               Predictive Systems, Inc.


                                        By:
------------------------------------        ------------------------------------
Andrew Zimmerman
                                        Title:
                                              ----------------------------------




                                       15
<PAGE>


                                    EXHIBIT A

                              SEPARATION AGREEMENT
                               AND GENERAL RELEASE

         This Separation Agreement and General Release ("Agreement") is made and
entered into this ____ day of _____, _____, by and between Predictive Systems,
Inc. (hereinafter the "Company" or "Employer") and Andrew Zimmerman ("Employee")
(hereinafter collectively referred to as the "Parties"), and is made and entered
into with reference to the following facts.

                                    RECITALS

         WHEREAS, Employee was hired by the Company on or about ________, as a
____________; and

         WHEREAS, the Company and Employee have agreed to terminate their
employment relationship effective ______, ____; and

         WHEREAS, the Parties each desire to resolve any potential disputes
which exist or may exist arising out of Employee's employment with the Company
and/or the termination thereof.

         NOW THEREFORE, in consideration of the covenants and promises contained
herein, the Parties hereto agree as follows:

                                    AGREEMENT

         1. Agreement By the Company. In exchange for Employee's agreement to be
bound by the terms of this entire Agreement, including but not limited to the
Release of Claims in paragraph 2, the Company agrees to provide Employee with
the benefits required pursuant to Section 10(b) of his Employment Agreement with
the Company dated as of June 15, 2001 (the "Employment Agreement"), the terms of
which are hereby incorporated by reference, to be paid within ten (10) days of
the Company's receipt of this Agreement, fully executed by Employee, or as
otherwise agreed in such Employment Agreement.

         Employee acknowledges that, absent this Agreement, he has no legal,
contractual or other entitlement to the consideration set forth in this
paragraph and that the amount set forth in this paragraph constitute valid and
sufficient consideration for Employee's release of claims and other obligations
set forth herein.

         2. Executive's Release of Claims. Employee hereby expressly waives,
releases, acquits and forever discharges the Company and its divisions,
subsidiaries, affiliates, parents, related entities, partners, officers,
directors, shareholders, investors, executives, managers, employees, agents,
attorneys, representatives, successors and assigns (hereinafter collectively
referred to as "Releasees"), from any and all claims, demands, and causes of
action which Employee has or claims to have, whether known or unknown, of
whatever nature, which exist or may exist on Employee's behalf from the
beginning of time up to and including the date of this


<PAGE>


Agreement arising out of or related to the employment of Employee by the
Company. As used in this paragraph, "claims," "demands," and "causes of action"
include, but are not limited to, claims based on contract, whether express or
implied, fraud, stock fraud, defamation, wrongful termination, estoppel, equity,
tort, retaliation, intellectual property, spoliation of evidence, emotional
distress, public policy, wage and hour law, statute or common law, claims for
severance pay, vacation pay, debts, accounts, compensatory damages, punitive or
exemplary damages, liquidated damages, and any and all claims arising under any
federal, state, or local statute, law, or ordinance prohibiting discrimination
on account of race, color, sex, age, religion, sexual orientation, disability or
national origin, including but not limited to, the Age Discrimination in
Employment Act, Title VII of the Civil Rights Act of 1964 as amended, the
Americans with Disabilities Act, the Family and Medical Leave Act or the
Employee Retirement Income Security Act. Anything to the contrary
notwithstanding in this Agreement or the Employment Agreement, nothing herein
shall release the Company from any claims or damages based on (i) any right the
Executive may have to enforce this Agreement, (ii) any right or claim that
arises after the date of this Agreement, (iii) any right the Employee may have
to benefits or entitlement under any applicable plan, agreement, program, award,
policy or arrangement of the Company that becomes payable or due after the date
of this Agreement; (iv) the Executive's eligibility for indemnification in
accordance with applicable laws or the certificate of incorporation and by-laws
of the Company, or any applicable insurance policy, with respect to any
liability he incurs or incurred as an employee, officer or director of the
Company.

         3. Acceptance of Agreement/Revocation. This Agreement was received by
Employee on ______, ____. Employee may accept this Agreement by returning a
signed original to the Company. This Agreement shall be withdrawn if not
accepted in the above manner on or before _______, which in no event shall be
less than 21 days from date upon which he received this Agreement.

         4. Confidentiality. Employee understands and agrees that this
Agreement, and the matters discussed in negotiating its terms, are entirely
confidential. It is therefore expressly understood and agreed that Employee will
not reveal, discuss, publish or in any way communicate any of the terms of this
Agreement to any person, organization or other entity, with the exception of his
immediate family members and professional representatives, including lawyers,
financial and tax advisors, unless required by subpoena or court order or as
necessary in connection with the enforcement of this Agreement. Employee and the
Company further agree to abide by the provisions of Section 7 of the Employment
Agreement with respect to disparagement.

         5. New York Law Applies; Disputes. This Agreement, in all respects,
shall be interpreted, enforced and governed by and under the laws of the State
of New York without giving effect to conflict of law principles. Any and all
actions relating to this Agreement shall be filed and maintained in the federal
and/or state courts located in the State and County of New York, and the parties
consent to the jurisdiction of such courts. In any action arising out of this
Agreement, or involving claims barred by this Agreement, each shall pay its own
costs of suit, including reasonable attorneys' fees.

         6. Voluntary Agreement. EMPLOYEE UNDERSTANDS AND AGREES THAT HE MAY BE
WAIVING SIGNIFICANT LEGAL RIGHTS BY SIGNING THIS


                                       17
<PAGE>


AGREEMENT, AND REPRESENTS THAT HE HAS ENTERED INTO THIS AGREEMENT KNOWINGLY AND
VOLUNTARILY, WITH A FULL UNDERSTANDING OF AND IN AGREEMENT WITH ALL OF ITS
TERMS.

         IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on
the dates provided below.



DATED:  June 15, 2001                     Predictive Systems, Inc.



                                          By: /s/ William W. Wyman
                                              --------------------

                                          Its: Chairman
                                               --------



DATED:  June 15 ,2001                     Andrew Zimmerman


                                          /s/ Andrew Zimmerman
                                          --------------------