Document:

Form of Warrant

 Exhibit 4.1 
  
 THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW TOWARD RESALE OR DISTRIBUTION. THIS WARRANT MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE REASONABLY ACCEPTABLE TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER SAID
ACT. 
  
 COTELLIGENT, INC. 
  
 WARRANT TO PURCHASE COMMON STOCK 
  

					
	Warrant No.:             	 	 	 	Number of Shares             
	Issuable:                     	 	 	 	 
	Date of Issuance:                     	 	 	 	 

  
 COTELLIGENT, INC., a
Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, [WARRANT HOLDER], the registered holder hereof or its permitted assigns,
is entitled, subject to the terms set forth below, to purchase from the Company upon surrender of this Warrant, at any time or times on or after the date hereof, but not after 5:00 P.M. Eastern Standard Time on the Expiration Date (as defined
herein) [                    ]
(                    ) fully paid nonassessable shares of Common Stock (as defined herein) of the Company (the “Warrant
Shares”) at the Warrant Exercise Price per share provided in Section l (a) below; 
  
 Section 1.  
  
 (a)
Definitions. The following words and terms as used in this Warrant shall have the following meanings: 
  
 (i) “Common Stock” means (i) Common Stock, par value $0.01 per share, and (ii) any capital stock into which such Common Stock shall have
been changed or any capital stock resulting from a reclassification of such Common Stock. 
  
 (ii) “Expiration Date” means                  , 2008, or, if such date falls on a Saturday, Sunday or
other day on which banks are required or authorized to be closed in the City of New York, the State of New York, the City of San Francisco or the State of California (a “Holiday”), the next preceding date that is not a Holiday. 

 
 (iii) “Person” means an individual, a limited liability
company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof. 

 (iv) “Securities Act” means the Securities Act of 1933, as amended. 
  
 (v) “Warrant” shall mean this Warrant No.
            , dated                     , 2005 , and all warrants issued in
exchange, transfer or replacement of any thereof. 
  
 (vi)
“Warrant Exercise Price” shall be equal to $0.30 per share of Common Stock, subject to adjustment as hereinafter provided. 
  
 (b) Other Definitional Provisions. 
  
 (i) Except as otherwise specified herein, all references herein (A) to the Company shall be deemed to include the Company’s
successors and (B) to any applicable law defined or referred to herein, shall be deemed references to such applicable law as the same may have been or may be amended or supplemented from time to time. 
  
 (ii) When used in this Warrant, the words
“herein,” “hereof,” and “hereunder,” and words of similar import, shall refer to this Warrant as a whole and not to any provision of this Warrant, and the words “Section,” “Schedule,” and
“Exhibit” shall refer to Sections of, and Schedules and Exhibits to, this Warrant unless otherwise specified. 
  
 (iii) Whenever the context so requires, the neuter gender includes the masculine or feminine, and the singular number includes the plural,
and vice versa. 
  
 Section 2. Exercise of Warrant.

  
 (a) Subject to the terms and conditions hereof, this Warrant
may be exercised by the holder hereof then registered on the books of the Company, in whole or in part, at any time on any business day or after the opening of business on the date hereof and prior to 11:59 P.M. Eastern Standard Time on the
Expiration Date by (i) delivery of a written notice, in the form of the subscription notice attached as Exhibit A hereto, of such holder’s election to exercise this Warrant, which notice shall specify the number of Warrant Shares to be
purchased, (ii) payment to the Company of an amount equal to the Warrant Exercise Price multiplied by the number of Warrant Shares as to which the Warrant is being exercised (plus any applicable issue or transfer taxes) (the “Aggregate
Exercise Price”) in cash or by check or wire transfer, and (iii) the surrender of this Warrant, to a common carrier for delivery to the Company as soon as practicable following such date, this Warrant (or an indemnification undertaking with
respect to this Warrant in the case of its loss, theft, or destruction); provided that if such Warrant Shares are to be issued in any name other than that of the registered holder of this Warrant, such issuance shall be deemed a transfer and the
provisions of Section 7 shall be applicable. In the event of any exercise of the rights represented by this Warrant in compliance with this Section 2, a certificate or certificates for the Warrant Shares so purchased, in such denominations as may be
requested by the holder hereof and registered in the name of, or as directed by, the holder, shall be delivered at the Company’s expense to, or as directed by, such holder as soon as practicable after such rights shall have been so exercised,
and in any event no later than five (5) business days after the Company’s receipt of the Exercise Notice, the Aggregate Exercise Price and this 
  

 2 

 Warrant (or indemnification undertaking with respect to this Warrant in the case of its loss, theft or destruction) Upon
delivery of the Exercise Notice and Aggregate Exercise Price referred to in clause (ii) (A) above, the holder of this Warrant shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which
this Warrant has been exercised, irrespective of the date of delivery of this Warrant as required by clause (iii) above or the certificates evidencing such Warrant Shares. 
  
 (b) Unless the rights represented by this Warrant shall have expired or shall have been fully exercised, the Company shall,
as soon as practicable and in any event no later than five (5) business days after any exercise and at its own expense, issue a new Warrant identical in all respects to the Warrant exercised except (i) it shall represent rights to purchase the
number of Warrant Shares purchasable immediately prior to such exercise under the Warrant exercised, less the number of Warrant Shares with respect to which such Warrant is exercised, and (ii) the holder thereof shall be deemed for all corporate
purposes to have become the holder of record of such Warrant Shares immediately prior to the close of business on the date on which the Warrant is surrendered and payment of the amount due in respect of such exercise and any applicable taxes is
made, irrespective of the date of delivery of certificates evidencing such Warrant Shares, except that, if the date of such surrender and payment is a date when the stock transfer books of the Company are properly closed, such person shall be deemed
to have become the holder of such Warrant Shares at the opening of business on the next succeeding date on which the stock transfer books are open. Upon presentation of a duly executed Subscription Form in the Form of Exhibit A to this Warrant, the
holder shall be entitled to exercise this Warrant in whole or in part, if the holder shall have previously exercised and surrendered this Warrant and the Company shall not have issued a new Warrant representing the number of shares issuable
following such prior exercise. 
  
 (c) Upon the issuance of the
Warrant Shares hereunder, and consistent with, pursuant to and subject to the Company’s existing Rights Agreement, dated as of September 24, 1997, as amended by Amendment No. 1 to Rights Agreement, dated as of June 13, 2002 (as the same may be
amended from time to time, the “Rights Agreement”), between the Company and EquiServe Trust Company, N.A. (as successor to BankBoston N.A.), as rights agent, one right issuable pursuant to the Rights Agreement or any other right issued in
substitution thereof (a “Company Right”) shall be issued together with and shall attach to each Warrant Share issued pursuant to the terms and conditions of this Warrant, unless the Company Rights shall have expired or been redeemed prior
to the date on which this Warrant is exercised. 
  
 (d) No
fractional shares of Common Stock are to be issued upon the exercise of this Warrant, but rather the number of shares of Common Stock issued upon exercise of this Warrant shall be rounded up or down to the nearest whole number. 
  
 Section 3. Covenants as to Common Stock. The Company hereby covenants
and agrees as follows: 
  
 (a) This Warrant is, duly authorized
and validly issued. 
  

 3 

 (b) All Warrant Shares which may be issued upon the exercise of the rights represented by this Warrant
will, upon issuance, be validly issued, fully paid and nonassessable and free from all taxes, liens and charges with respect to the issue thereof. 
  
 (c) During the period within which the rights represented by this Warrant may be exercised, the Company will at all times have authorized and reserved at
least the number of shares of Common Stock needed to provide for the exercise of the rights then represented by this Warrant and the par value of said shares will at all times be less than or equal to the applicable Warrant Exercise Price.

  
 (d) The Company will not, by amendment of its Certificate of
Incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed
or performed by it hereunder, but will at all times in good faith assist in the carrying out of all the provisions of this Warrant and in the taking of all such action as may reasonably be requested by the holder of this Warrant in order to protect
the exercise privilege of the holder of this Warrant against dilution or other impairment, consistent with the tenor and purpose of this Warrant. Without limiting the generality of the foregoing, the Company (i) will not increase the par value of
any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, and (ii) will take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully
paid and nonassessable shares of Common Stock upon the exercise of this Warrant. 
  
 (e) This Warrant will be binding upon any entity succeeding to the Company by merger, consolidation or acquisition of all or substantially all of the Company’s assets. 
  
 Section 4. Taxes. The Company shall not be required to pay any tax or
taxes attributable to the initial issuance of the Warrant Shares or any permitted transfer involved in the issue or delivery of any certificates for Warrant Shares in a name other than that of the registered holder hereof or upon any permitted
transfer of this Warrant. 
  
 Section 5. Warrant Holder Not
Deemed a Stockholder. Except as otherwise specifically provided herein, no holder, as such, of this Warrant shall be entitled to vote or receive dividends or be deemed the holder of shares of the Company for any purpose, nor shall anything
contained in this Warrant be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock,
reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the holder of this Warrant of the Warrant Shares which he or she
is then entitled to receive upon the due exercise of this Warrant. 
  
 In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on such holder to purchase any securities or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors
of the Company. 
  

 4 

 Section 6. Representations of Holder. The holder of this Warrant, by the acceptance hereof,
represents (and any assignor shall represent) that it is acquiring this Warrant and the Warrant Shares for its own account for investment purposes and not with a view to, or for sale in connection with, any distribution hereof, and not with any
present intention of distributing any of the same. The holder of this Warrant further represents (and any assignor shall represent), by acceptance hereof, that, as of this date, such holder is an “accredited investor” as such term is
defined in Rule 501(a)(1) of Regulation D promulgated by the Securities and Exchange Commission under the Securities Act (an “Accredited Investor”). Upon exercise of this Warrant, the holder shall, if requested by the Company,
confirm in writing, in a form satisfactory to the Company, that the Warrant Shares so purchased are being acquired solely for the holder’s own account and not as a nominee for any other party, for investment, and not with a view toward
distribution or resale and that such holder is an Accredited Investor. If such holder cannot make such representations because they would be factually incorrect, it shall be a condition to such holder’s exercise of the Warrant that the Company
receive such other representations as the Company considers reasonably necessary to assure the Company that the issuance of its securities upon exercise of the Warrant shall not violate any United States Federal or state securities laws. 

 
 Section 7. Ownership and Transfer. 
  
 (a) The Company shall maintain at its principal executive offices (or such
other office or agency of the Company as it may designate by notice to the holder hereof), a register for this Warrant, in which the Company shall record the name and address of the person in whose name this Warrant has been issued, as well as the
name and address of each permissible transferee. The Company may treat the person in whose name any Warrant is registered on the register as the owner and holder thereof for all purposes, notwithstanding any notice to the contrary, but in all events
recognizing any transfers made in accordance with the terms of this Warrant. 
  
 (b) This Warrant and the rights granted to the holder hereof are transferable, in whole or in part, upon surrender of this Warrant, together with a properly executed warrant power in the form of Exhibit B attached
hereto; provided, however, that any transfer or assignment issuance of the Warrant Shares upon shall subject to the conditions set forth in Section 6 above and Section 7(c) below. 
  
 (c) The holder of this Warrant understands that this Warrant has not been and is not expected to be, registered under the
Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (a) subsequently registered thereunder, or (b) such holder shall have delivered to the Company an opinion of counsel, reasonably
satisfactory in form, scope and substance to the Company, to the effect that the securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration. Any sale of such securities made in
reliance on Rule 144 promulgated under the Securities Act may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any resale of such securities under circumstances in which the seller (or the person
through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the Securities and Exchange
Commission 
  

 5 

 thereunder; and neither the Company nor any other person is under any obligation to register the Warrant Shares under the
Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder except as set forth in Section 7(d) below. 
  
 (d) The Company shall use its commercially reasonable efforts to register the issuance of the Warrant Shares upon exercise of the Warrants and the resale
of the Warrant Shares under the Securities Act pursuant to, and in accordance with, the provisions of the Stock and Warrant Purchase Agreement, of even date herewith, by and among the Company and the purchasers identified therein. Until the Warrant
Shares have been registered under the Securities Act, any Warrant Shares issued upon exercise of this Warrant shall bear the following legend: 
  
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAW, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. 
  
 (e) The certificates representing the Warrant Shares shall also bear a legend substantially as set forth below: 
  
 THIS CERTIFICATE ALSO EVIDENCES A BENEFICIAL INTEREST IN AND ENTITLES THE HOLDER HEREOF TO CERTAIN RIGHTS AS SET FORTH IN THE RIGHTS AGREEMENT BETWEEN
COTELLIGENT, INC. (THE “COMPANY”) AND EQUISERVE TRUST COMPANY, N.A. (AS SUCCESSOR TO BANKBOSTON, N.A.) (THE “RIGHTS AGENT”), DATED AS OF SEPTEMBER 24, 1997, AS AMENDED BY AMENDMENT NO. 1 TO RIGHTS AGREEMENT, DATED AS OF JUNE 13,
2002 (THE “RIGHTS AGREEMENT”), AND AS THE SAME MAY BE AMENDED FROM TIME TO TIME, THE TERMS OF WHICH ARE HEREBY INCORPORATED HEREIN BY REFERENCE AND A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICES OF THE COMPANY. UNDER CERTAIN
CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, SUCH RIGHTS WILL BE EVIDENCED BY SEPARATE CERTIFICATES AND BENEFICIAL INTERESTS THEREIN WILL NO LONGER BE EVIDENCED BY THIS CERTIFICATE. THE COMPANY WILL MAIL TO THE HOLDER OF THIS CERTIFICATE A
COPY OF THE RIGHTS AGREEMENT, AS IN EFFECT ON THE DATE OF MAILING, WITHOUT CHARGE, PROMPTLY AFTER RECEIPT OF A WRITTEN REQUEST THEREFOR. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS ISSUED TO, OR HELD BY, ANY PERSON WHO IS,
WAS OR BECOMES AN ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS 
  

 6 

 AGREEMENT), WHETHER CURRENTLY HELD BY OR ON BEHALF OF SUCH PERSON OR BY ANY SUBSEQUENT HOLDER, MAY BECOME
NULL AND VOID. 
  
 Section 8. Adjustment of Warrant Exercise
Price. In order to prevent dilution of the rights granted under this Warrant, the Warrant Exercise Price shall be adjusted from time to time as follows: 
  
 (a) Adjustment of Warrant Exercise Price upon Subdivision or Combination of Common Stock. If the Company at any time after the date of issuance of
this Warrant, subdivides (by any stock split, stock dividend, re-capitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Warrant Exercise Price in effect immediately prior to
such subdivision will be proportionately reduced and the number of shares of Common Stock obtainable upon exercise of this Warrant will be proportionately increased. If the Company at any time after the date of issuance of this Warrant combines (by
combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Warrant Exercise Price in effect immediately prior to such combination will be proportionately
increased and the number of shares of Common Stock obtainable upon exercise of this Warrant will be proportionately decreased. 
  
 (b) Reorganization, Reclassification, Consolidation, Merger or Sale. Any re-capitalization, reorganization reclassification, consolidation, merger,
sale of all or substantially all of the Company’s assets to another Person or other similar transaction which is effected in such a way that holders of Common Stock are entitled to receive (either directly or upon subsequent liquidation) stock,
securities or assets with respect to or in exchange for Common Stock is referred to herein as an “Organic Change.” Prior to the consummation of any Organic Change, the Company will make appropriate provision to insure that, upon the
consummation of such Organic Change, the holder hereof will thereafter have the right to acquire and receive in lieu of the Common Stock, such shares of stock, securities or assets as may be issued or payable with respect to or in exchange for the
number of shares of Common Stock immediately theretofore acquirable and receivable upon exercise of this Warrant had such Organic Change not taken place. In any such case, the Company will make appropriate provision with respect to such
holders’ rights and interests to insure that the provisions of this Section 8(b) will thereafter be applicable to this Warrant. 
  
 (c) Notices. 
  
 (i) Immediately upon any adjustment of the Warrant Exercise Price pursuant to this Section 8, the Company will give written notice thereof to the holder
of this Warrant, setting forth in reasonable detail and certifying the calculation of such adjustment. 
  
 (ii) The Company will give written notice to the holder of this Warrant at least twenty (20) days prior to the date on which the Company closes its books
or takes a record (A) with respect to any dividend or distribution upon the Common Stock, (B) with respect to any pro rata subscription offer to holders of Common Stock or (C) for determining rights to vote with respect to any Organic Change,
dissolution or liquidation, except that in no event shall such notice be provided to such holder prior to such information being made known to the public. 
  

 7 

 (iii) The Company will also give written notice to the holder of this Warrant at least twenty (20) days
prior to the date on which any Organic Change, dissolution or liquidation will take place. 
  
 Section 9. Company’s Right of Optional Redemption. 
  
 (a) At any time from and after the date hereof, the Company may redeem all or any portion of this Warrant by delivering written notice thereof (an
“Optional Redemption Notice” and the date the holder of the Warrant receives such notice is referred to as the “Optional Redemption Notice Date”) to the holder of the Warrant, which Optional Redemption Notice shall
indicate the redemption of this Warrant in accordance with this Section 9 (the “Optional Redemption”). 
  
 (b) The Optional Redemption Notice shall be delivered by the Company to the holder of the Warrant on the date which is at least 30 calendar days prior to
the date that the Optional Redemption will be effected (the “Optional Redemption Date”). The Optional Redemption Notice shall be delivered by facsimile and overnight courier to the holder of this Warrant. The Optional Redemption
Notice shall be irrevocable. The Optional Redemption Notice shall state the portion of this Warrant being redeemed, the Optional Redemption Date and the aggregate Redemption Price for the portion of this Warrant being redeemed. 
  
 (c) This Warrant shall be redeemed by the Company in cash at a price equal to
$0.05 per Warrant Share (the “Redemption Price”). 
  
 (d) Notwithstanding anything to the contrary in this Section 9, but subject to Section 7(c), until the Redemption Price is paid in full, all or any portion of this Warrant may be exercised, in whole or in part, by the holder for shares of
Common Stock pursuant to Section 2, and any such exercise shall reduce the number of Warrant Shares issuable upon exercise of this Warrant. 
  
 Section 10. Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost, stolen, mutilated or destroyed, the Company shall, on receipt of
an indemnification undertaking, issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed. 
  
 Section 11. Notice. Any notices, consents, waivers, or other communications required or permitted to be given under the terms of this Warrant must
be in writing and will be deemed to have been delivered (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile, provided a copy is mailed by U.S. certified mail, return receipt requested; (iii) three (3) days after
being sent by U.S. certified mail, return receipt requested; or (iv) one (1) day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile
numbers for such communications shall be: 
  

					
	If to the Company:	  	Cotelligent, Inc.
	 	  	655 Montgomery Street, Suite 1000
	 	  	San Francisco, CA 94111
	 	  	Attention:	  	James R. Lavelle
	 	  	Telephone:	  	(415) 477-9900
	 	  	Facsimile:	  	(415) 399-0756

  

 8 

					
	 	  	With a copy to:
		
	 	  	Morgan, Lewis & Bockius LLP
	 	  	101 Park Avenue
	 	  	New York, NY 10178
	 	  	Attention:	  	David W. Pollak, Esq.
	 	  	Telephone:	  	(212) 309-6000
	 	  	Facsimile:	  	(212) 309-6001

  
 If to a holder of this
Warrant, to him, her or it at the address set forth below such holder’s signature on the signature page hereof. Each party shall provide five (5) days’ prior written notice to the other party of any change in address or facsimile number.

  
 Section 12. Date. The date of this Warrant is
                    , 2005 . This Warrant, in all events, shall be wholly void and of no effect after the close of business on the Expiration
Date, except that notwithstanding any other provisions hereof, the provisions of Section 7 shall continue in full force and effect after such date as to any Warrant Shares or other securities issued upon the exercise of this Warrant. 
  
 Section 13. Amendment and Waiver. Except as otherwise provided herein,
the provisions of this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the holder of this
Warrant. 
  
 Section 14. Descriptive Headings; Governing
Law. The descriptive headings of the several sections of this Warrant are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. This Warrant shall be governed by and interpreted under the laws of the State
of New York, without giving effect to any choice of law or conflict of law provision. 
  

 9 

 This Warrant has been duly executed by the Company as of the date first set forth above. 
  

			
	COTELLIGENT, INC.
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  
 ACCEPTED: 
 HOLDER: [NAME AND ADDRESS OF WARRANT HOLDER] 
  

	
	
	  

	Name:

  

 10 

 EXHIBIT A 
  
 FORM OF SUBSCRIPTION 
  
 (Complete and sign only exercise of the Warrant in whole or in part.) 
  
 TO:
                                        
                             
  
 The undersigned, the holder of the attached Warrant to which this Form of Subscription applies, hereby irrevocably elects to
exercise the purchase rights represented by such warrant for and to purchase thereunder              shares of Common Stock, par value $0.01 per share (the “Shares”), from
Cotelligent, Inc., (or such other securities issuable pursuant to the terms of the Warrant) and herewith makes payment of $             therefor in cash or by certified or official
bank check. The undersigned hereby requests that the certificate(s) representing such securities be issued in the name(s) and delivered the address(es) as follows: 
  

			
	 Name:
	 	                                      
                                        
                                        
                               
	 Address:
	 	                                       
                                        
                                        
                               

	 Social Security Number:
	 	                                       
                                        
                                        
                               

	 Deliver to:
	 	                                       
                                        
                                        
                               

	 Address:
	 	                                       
                                        
                                        
                               

  
 This the foregoing
subscription evidences an exercise of the Warrant to purchase fewer than all of the Shares (or other securities issuable pursuant to the terms of the Warrant) to which the undersigned is entitled under such warrant, please issue a new warrant, of
like tenor, relating to the remaining portion of the securities issuable upon exercise of such warrant (or other securities issuable pursuant to the terms of such warrant) in the name(s), and deliver the same to the address(es), as follow:

  

			
	 Name:
	 	                                      
                                        
                                        
                               
	 Address:
	 	                                       
                                        
                                        
                               

	 	 	                                       
                                        
                                        
                               

	 Dated:
	 	                                       
                                        
                                        
                               

  

			
		
	  

	 	  

	(Name of Holder)	 	(Social Security or Taxpayer Identification
	 	 	Number of Holder, if applicable)
		
	  

	 	 
	(Signature of Holder or Authorized Signatory)	 	 
		
	 Signature Guaranteed:

	 	 

  
  

 11 

 EXHIBIT B 
  

FORM OF WARRANT POWER 
  
 FOR VALUE RECEIVED, the undersigned does hereby assign and transfer to
                                        
                                 [Federal Identification
No.            ][Social Security No.        ], a warrant to purchase shares of the capital stock of Cotelligent, Inc., a Delaware
corporation, represented by warrant certificate No.                    , standing in the name of the undersigned on the books of said
corporation. The undersigned does hereby irrevocably constitute and appoint
                                        ,
attorney to transfer the warrants of said corporation, with full power of substitution in the premises. 
  
 Dated: ____________________________ 
  

			
	By:	 	  

	Its:	 	  

  

 12Form of Purchase agreement

 Exhibit 10.1 
  
 STOCK AND WARRANT PURCHASE AGREEMENT 
  

by and among 
  
 COTELLIGENT, INC. 
  
 and 
  
 THE PURCHASERS 
 IDENTIFIED HEREIN 
  
 Dated as of                     , 2005 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	ARTICLE I.	 	 DEFINITIONS
	  	1
			
	 1.1
	 	Defined Terms	  	1
			
	ARTICLE II.	 	 SALE AND PURCHASE OF COMMON STOCK AND WARRANTS
	  	3
			
	 2.1
	 	Sale and Purchase of Common Stock and Warrants	  	3
			
	ARTICLE III.	 	 CLOSING
	  	3
			
	 3.1
	 	Closing	  	3
			
	 3.2
	 	Deliveries by the Company at the Closing	  	4
			
	 3.3
	 	Deliveries by the Purchasers at the Closing	  	4
			
	 3.4
	 	Form of Documents and Instruments	  	4
			
	 3.5
	 	Additional Closings	  	4
			
	ARTICLE IV.	 	 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	4
			
	 4.1
	 	Organization of the Company	  	4
			
	 4.2
	 	Capitalization	  	5
			
	 4.3
	 	Authority Relative to this Agreement	  	5
			
	 4.4
	 	No Conflicts	  	6
			
	 4.5
	 	Exemption from Registration	  	6
			
	 4.6
	 	Litigation	  	6
			
	 4.7
	 	SEC Reports and Financial Statements	  	6
			
	 4.8
	 	Governmental and Other Approvals	  	7
			
	 4.9
	 	No Brokers	  	7
			
	ARTICLE V.	 	 REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF purchasers
	  	7
			
	 5.1
	 	Purchase for Investment	  	7
			
	 5.2
	 	No Brokers	  	8
			
	ARTICLE VI.	 	 COVENANTS
	  	9
			
	 6.1
	 	Legend	  	9
			
	 6.2
	 	Shares Issuable Upon Exercise	  	10
			
	ARTICLE VII.	 	 REGISTRATION RIGHTS
	  	10
			
	 7.1
	 	Registration	  	10
			
	 7.2
	 	Temporary Suspension of Use of Registration Statement	  	10

  

 i 

					
	 7.3
	 	Registration Procedures	  	11
			
	 7.4
	 	Expenses of Registration	  	12
			
	 7.5
	 	Indemnification by Company	  	12
			
	 7.6
	 	Indemnification by Offering Holders	  	13
			
	 7.7
	 	Notification of Certain Events	  	13
			
	 7.8
	 	Indemnification Procedures	  	13
			
	 7.9
	 	Rule 144	  	14
			
	 ARTICLE VIII.
	 	 MISCELLANEOUS
	  	14
			
	 8.1
	 	Assignment	  	14
			
	 8.2
	 	Notices	  	14
			
	 8.3
	 	Choice of Law	  	15
			
	 8.4
	 	Counterparts	  	15
			
	 8.5
	 	Invalidity	  	15
			
	 8.6
	 	Headings	  	15
			
	 8.7
	 	Severability	  	16
	
	SCHEDULES AND EXHIBITS
	
	Schedule 1  –   List of Purchasers
	Exhibit A    –   Form of Warrant

  

 ii 

 STOCK AND WARRANT PURCHASE AGREEMENT 
  
 This Stock and Warrant Purchase Agreement, dated as of
                    , 2005 , is made by and among Cotelligent, Inc., a Delaware corporation (the “Company”), and each of the
persons or entities set forth on Schedule 1 hereto (each, a “Purchaser” and collectively, the “Purchasers”). 
  
 RECITALS 
  
 WHEREAS, the Company desires to sell to the Purchasers, and the Purchasers desire to purchase from the Company, an aggregate of
                     shares (the “Shares”) of the Company’s common stock, par value $0.01 per share (the “Common
Stock”) and warrants to purchase an additional                      shares of Common Stock (the “Warrant Shares”).

  
 NOW, THEREFORE, in consideration of the mutual covenants and
premises contained herein and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
  
 ARTICLE I. 
 DEFINITIONS 
  
 1.1 Defined Terms. As
used herein, the terms below shall have the following meanings: 
  
 “Affiliate” shall mean with respect to any Person, any other Person which, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person. For purposes of this definition, a Person
shall be deemed to be “controlled by” another Person if such latter Person possesses, directly or indirectly, power either to direct or cause the direction of management or policies of a Person, whether through the ability to exercise
voting power, by contract or otherwise. 
  
 “Agreement” means this Purchase Agreement, together with all schedules attached hereto. 
  
 “Board of Directors” means the Board of Directors of the Company as of the date of this Agreement. 
  
 “Business Day” shall mean any day other than a Saturday,
Sunday or other day on which banks are required or permitted to close in the State of New York or the State of California. 
  
 “Closing” has the meaning set forth in Section 3.1 of this Agreement. 
  
 “Closing Date” has the meaning set forth in Section
3.1 of this Agreement. 
  
 “Commission” means
the Securities and Exchange Commission. 

 “Common Stock” has the meaning set forth in the Recitals. 
  
 “Company” has the meaning set forth in the Introductory
Paragraph. 
  
 “DGCL” means the Delaware General
Corporation Law, as amended from time to time. 
  
 “Encumbrance” means any claim, lien, pledge, option, charge, easement, security interest, right-of-way, encumbrance or other rights of third parties, and, with respect to any securities, any agreements, understandings or
restrictions affecting the voting rights or other incidents of record or beneficial ownership pertaining to such securities. 
  
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, including the rules and regulations promulgated thereunder.

  
 “Governmental Authority” shall mean any
federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality, or any court, in each case whether of the United States or any foreign jurisdiction. 
  
 “Material Adverse Effect” shall mean any event or condition
that has had, or could reasonably be expected to have, a material adverse change or effect on the business, assets, properties, performance, operations or financial condition of the Company and its subsidiaries, taken as a whole; provided,
however, that in no event shall any of the following, alone or in combination, be deemed to constitute, nor shall any of the following be taken into account in determining whether there has been or will be, a Material Adverse Effect: (i) any
change or effect that results or arises from changes affecting any of the industries in which the Company operates generally or the United States economy generally; or (ii) any change or effect that results or arises from changes affecting general
worldwide economic or capital market conditions. 
  
 “Person” shall mean any natural person, corporation, division of a corporation, partnership, limited liability partnership, limited liability company, trust, joint venture, association, company, estate, unincorporated
organization or government or any agency or political subdivision thereof. 
  
 “Private Placement Legend” has the meaning set forth in Section 6.1 of this Agreement. 
  
 “Purchase Price” has the meaning set forth in Section 2.1 of this Agreement. 
  
 “Purchaser” or “Purchasers” has the meaning
set forth in the Introductory Paragraph. 
  
 “Securities
Act” shall mean the Securities Act of 1933, as amended, including the rules and regulations promulgated thereunder. 
  
 “SEC Reports” has the meaning set forth in Section 4.7 of this Agreement. 
  

 2 

 “Shares” has the meaning set forth in the Recitals. 
  
 “Transaction” means, taken together, the transactions
contemplated under this Agreement. 
  
 “Transfer
Agent” means the EquiServe Trust Company, N.A.. 
  
 “Warrant” has the meaning set forth in Section 2.1 of this Agreement. 
  
 “Warrant Shares” has the meaning set forth in the Recitals. 
  
 ARTICLE II. 
 SALE AND PURCHASE OF COMMON STOCK AND WARRANTS 
  
 2.1 Sale and Purchase of Common Stock and Warrants. 
  
 (a) Subject to the terms and conditions hereof and in reliance upon the representations and warranties of the Purchasers and the Company contained herein or made pursuant hereto, the Company agrees to sell to each of the Purchasers, and
each Purchaser severally agrees to purchase from the Company on the Closing Date, the number of shares of Common Stock set forth opposite such Purchaser’s name on Schedule 1 hereto at a purchase price of $0.10 per share (the “Purchase
Price”). In connection with the sale by the Company to Purchaser of the shares of Common Stock set forth opposite such Purchaser’s name on Schedule 1 hereto, the Company shall issue to each Purchaser a warrant (the
“Warrant”) in the form of Exhibit A hereto to purchase the number of Warrant Shares set forth opposite such Purchaser’s name on Schedule 1 hereto, it being agreed and understood that each Purchaser shall receive a
Warrant representing the right to purchase one Warrant Share for every Share purchased hereunder. 
  
 (b) Upon the issuance of the Shares hereunder, and consistent with, pursuant to and subject to the Company’s existing Rights Agreement, dated as of
September 24, 1997, as amended by Amendment No. 1 to Rights Agreement, dated as of June 13, 2002 (as the same may be amended from time to time, the “Rights Agreement”), between the Company and EquiServe Trust Company, N.A. (as
successor to BankBoston N.A.), as rights agent, one right issuable pursuant to the Rights Agreement or any other right issued in substitution thereof (a “Company Right”) shall be issued together with and shall attach to each Share
issued pursuant to the terms and conditions of this Agreement, unless the Company Rights shall have expired or been redeemed prior to the Closing Date. 
  
 ARTICLE III. 
 CLOSING

  
 3.1 Closing. The closing of the transactions
contemplated herein (the “Closing”) shall occur concurrently with the execution of this Agreement (the date on which the Closing occurs is referred to herein as the “Closing Date”) at the offices of Morgan, Lewis
& Bockius LLP, 101 Park Avenue, New York, New York 10178, unless the parties hereto otherwise agree. 
  

 3 

 3.2 Deliveries by the Company at the Closing. At the Closing, the Company shall issue and deliver
to the Purchasers: 
  
 (a) certificates evidencing the Shares and
Warrants in the name of the Purchasers in the respective amounts set forth on Schedule 1 hereto, provided, that, if a certificate for the Shares is not delivered to any Purchaser at the Closing, the Company will deliver to such
Purchaser evidence of a written direction to the Transfer Agent instructing the Transfer Agent to deliver such certificate to such Purchaser within five (5) Business Days of the Closing Date and such written direction shall satisfy the
Company’s obligation under this Section 3.2(a) with respect to such Purchaser; and 
  
 (b) all such other documents and instruments as contemplated by this Agreement as the Purchasers or their counsel shall reasonably request to consummate or evidence the Transaction. 
  
 3.3 Deliveries by the Purchasers at the Closing. At the Closing, each
Purchaser shall deliver to the Company: 
  
 (a) the Purchase
Price for the Shares and Warrants being purchased by such Purchaser, with such payment to be made by check made payable to the Company or by wire transfer of immediately available funds to the account designated in writing by the Company to such
Purchaser at least one Business Day prior to Closing; and 
  
 (b)
all such other documents and instruments as contemplated by this Agreement as the Company or its counsel shall reasonably request to consummate or evidence the Transaction. 
  
 3.4 Form of Documents and Instruments. All of the documents and instruments delivered at the Closing shall be in form
and substance, and shall be executed and delivered, in a manner reasonably satisfactory to the parties’ respective counsel. 
  
 3.5 Additional Closings. Each Purchaser acknowledges that the Company may, but is not obligated, to sell from time to time additional shares of
Common Stock and warrants to purchase additional shares of Common Stock pursuant to stock and warrant purchase agreements substantially the form of this Agreement. The closings under any such stock and warrant purchase agreements shall occur from
time to time at the discretion of the Company. 
  
 ARTICLE IV.

 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
  
 The Company represents and warrants to the Purchasers as follows: 
  
 4.1 Organization of the Company. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware and is qualified to do business and is in good standing in all jurisdictions where either (i) the nature of its properties or business so requires or (ii) the
failure to be in good standing could reasonably be expected to have a Material Adverse Effect. The Company has the corporate power and authority to (a) own, 
  

 4 

 lease, and operate its properties and to carry on its business as presently being, or as now intended to be, or as now
intended to be, conducted and (b) to execute, deliver and perform its obligations under this Agreement and any other documents contemplated hereby to which it is or will be a party. 
  
 4.2 Capitalization. The authorized capital stock of the Company consists of (i) 100,000,000 shares of Common Stock
and (ii) 500,000 shares of preferred stock, par value $0.01 per share (“Preferred Stock”). As of June 30, 2004, 24,861,621 shares of the Common Stock were issued and outstanding. As of June 30, 2004, no shares of Preferred Stock
were issued or outstanding. As of June 30, 2004, options to purchase 2,680,170 shares of Common Stock were outstanding pursuant to the Company’s 1995 Long-Term Incentive Plan, the Company’s 1998 Long-Term Incentive Plan and the
Company’s 2000 Long-Term Incentive Plan (collectively, the “Incentive Plans”). As of June 30, 2004, warrants to purchase 5,339,803 shares of Common Stock were outstanding. Except as set forth in the immediately preceding two
sentences, no shares of capital stock, options, warrants, convertible securities or any other equity securities of the Company are issued or outstanding except as set forth in the SEC Reports and except for the Company Rights. Under the Rights
Agreement, until the distribution date, (a) the Company Rights will be evidenced (subject to the provisions of Sections 3(b) and 3(c) thereof) by the certificates for Common Stock registered in the names of the holders of thereof (which certificates
shall also be deemed to be Rights Certificates, as such term is defined in the Rights Agreement) and not by separate Rights Certificates and (b) the right to receive Rights Certificates will be transferable only in connection with the transfer of
Common Stock. All of the outstanding shares of the Company’s respective capital stock have been duly authorized and validly issued and are fully paid and nonassessable. All shares of Common Stock subject to issuance as aforesaid, upon issuance
on the terms and conditions specified in the instruments pursuant to which they are issuable, shall, and the shares of Common Stock to be issued pursuant to this Agreement will be, duly authorized, and upon payment of the Purchase Price with respect
to the Shares and upon payment of the exercise price with respect to the Warrant Shares, will be validly issued, fully paid and nonassessable. All of the outstanding shares of capital stock of each of the Company’s subsidiaries is duly
authorized, validly issued, fully paid and nonassessable and all such shares are owned by the Company or another subsidiary free and clear of all security interests, liens, claims, pledges, agreements, limitations in the Company’s voting
rights, charges or other encumbrances of any nature whatsoever. As of the date hereof, other than as set forth above, the Company has no other securities authorized, reserved for issuance, issued or outstanding. 
  
 4.3 Authority Relative to this Agreement. The Company has all
necessary corporate power and authority to execute and deliver this Agreement, and to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement by the Company and the
consummation by the Company of the transactions contemplated hereby has been duly and validly authorized by all necessary corporate action on the part of the Company, and no other corporate proceedings on the part of the Company are necessary to
authorize this Agreement or to consummate the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by the Company and, assuming the due authorization, execution and delivery by the Purchasers, constitutes
a legal and binding obligation of the Company, enforceable against the Company in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting
creditors’ rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies. 
  

 5 

 4.4 No Conflicts. The execution and delivery by the Company of this Agreement the performance by
the Company of its obligations under this Agreement and the consummation of the transactions contemplated hereby do not and will not (i) conflict with, or constitute a default under, any material Contract to which the Company is a party, (ii) result
in a violation of the Company’s organizational documents, or any order, judgment or decree of any court or Governmental Authority having jurisdiction over the Company or any of its assets or properties or (iii) result in, or require, the
creation or imposition of any Encumbrance upon any of the assets or properties of the Company. 
  
 4.5 Exemption from Registration. Assuming the accuracy on the date hereof and on the Closing Date of the representations and warranties of each Purchaser set forth in Article V below, the issuance and the sale
of the Shares and the Warrants to the Purchasers hereunder are exempt from the registration requirements of the Securities Act. 
  
 4.6 Litigation. There are no actions, suits, proceedings or investigations pending, or to the knowledge of the Company, threatened, against or
affecting the Company, except for those that could not reasonably be expected to have either individually or in the aggregate a Material Adverse Effect on the Company. The Company is not in default with respect to any order, writ, injunction,
judgment, decree or rule of any Governmental Authority, except for such defaults that could not reasonably be expected to have either individually or in the aggregate a Material Adverse Effect on the Company. 
  
 4.7 SEC Reports and Financial Statements. 
  
 (a) The Company has filed all forms, reports and documents required to be
filed by it pursuant to Section 13 or Section 15(d) of the Exchange Act within the last 12 months on a timely basis or has received a valid extension of time for filing. The Company has made available to the Purchasers the Company’s (i) Annual
Report on Form 10-K for the fiscal year ended December 31, 2003, (ii) Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2004 and (iii) Quarterly Report on Form 10-Q for the quarter ended June 30, 2004 (collectively the
“SEC Reports”). The SEC Reports complied as to form in all material respects with the rules and regulations of the Commission under the Exchange Act on the date of filing and as of such date (or if amended or superseded by a filing
prior to the date of this Agreement, on the date of such filing) did not contain any untrue statement of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading. 
  
 (b) Each of the consolidated
financial statements (including, in each case, any related notes thereto) (the “Financial Statements”) contained in the SEC Reports (i) was prepared in accordance with generally accepted accounting principles
(“GAAP”) applied on a consistent basis throughout the periods involved (except as may be expressly described in the notes thereto) and (ii) fairly presents in all material respects the consolidated financial position of the Company
as at the respective dates thereof and the consolidated results of its operations and cash flows for the periods indicated. 
  

 6 

 4.8 Governmental and Other Approvals. All authorizations, approvals, orders, consents, licenses,
registrations or filings from or with any Governmental Authority required for the execution, delivery and performance by the Company of this Agreement has been duly obtained or made, and are in full force and effect, and if any further
authorizations, approvals, orders, consents, licenses, registrations or filings should hereafter become necessary, the Company shall obtain or make all such authorizations, approvals, orders, consents, licenses, registrations or filings. 

 
 4.9 No Brokers. The Company has not employed, and is not subject to
the valid claim of, any broker, finder, consultant or other intermediary in connection with the transactions contemplated by this Agreement who might be entitled to a fee or commission from the Company in connection with the transactions
contemplated by this Agreement. However, the Company may pay commissions and finders fees to those who have assisted it in finding investors for the transactions contemplated by this Agreement. 
  
 ARTICLE V. 
 REPRESENTATIONS, WARRANTIES AND AGREEMENTS 
 OF PURCHASERS

  
 Each Purchaser, severally and not jointly, hereby
represents and warrants, solely as to such Purchaser and not as to any other Purchaser, to the Company as follows: 
  
 5.1 Purchase for Investment. 
  
 (a) Such Purchaser is acquiring the Shares and Warrants and will acquire the Warrant Shares solely by and for his, her or its own account, for investment
purposes only and not for the purpose of resale or distribution; and such Purchaser has no contract, undertaking, agreement or arrangement with any Person to sell, transfer, distribute, fractionalize, pledge, or otherwise dispose of to such Person
or anyone else any Shares, Warrants or Warrant Shares; and such Purchaser has no present plans or intentions to enter into any such contract, undertaking or arrangement. 
  
 (b) Such Purchaser has all necessary power and authority to acquire the Shares and Warrants and will have all necessary
power and authority to acquire the Warrant Shares and such acquisitions will not contravene any law, rule or regulation binding on him, her or it or any investment guideline or restriction applicable to him, her or it. 
  
 (c) No consent, approval, order or authorization of, or declaration, filing
or registration with, any Government Authority or third party is required to be obtained or made by such Purchaser in connection with the execution and delivery by such Purchaser of this Agreement or the consummation of the transactions contemplated
hereby (including, without limitation such Purchaser’s acquisition of Shares, Warrants or Warrant Shares). 
  
 (d) Such Purchaser acknowledges that (i) he, she or it is an “accredited investor” as defined in Rule 501(a) of Regulation D promulgated under
the Securities Act; (ii) he, she or it has such knowledge and experience in financial and business matters in general that it has the capacity to evaluate the merits and risks of an investment in the Shares, Warrants and 
  

 7 

 Warrant Shares and to protect his, her or its own interest in connection with an investment in the Shares, Warrants and
Warrant Shares; (iii) he, she or it is able to bear the economic risk of his, her or its investment in the Shares, Warrants and Warrant Shares for an indefinite period of time; (iv) the Company has made available to him, her or it the opportunity to
evaluate the merits and risks of his, her or its investment in the Company; (v) he, she or it has been afforded access to information about the Company and the opportunity to ask questions of, and to receive answers from, officers and directors of
the Company concerning the Company, its business and financial condition and any other matters relating to the operation of the Company and the offering of the Shares, Warrants and Warrant Shares; (vi) he, she or it has not purchased the Shares or
Warrants as a result of any general solicitation or advertising (as those terms are used in Regulation D of the Securities Act), including advertisements, articles, notices or other communications published in any newspaper, magazine or similar
media or broadcast over radio or television, or seminar or meeting who’s attendees have been invited by general solicitation or general advertising and (vii) he, she or it is not relying on any communication (written or oral) of the Company,
other than those written representations in this Agreement, as investment advice or as a recommendation to purchase the Shares and Warrants. 
  
 (e) Such Purchaser understands that the Shares, the Warrants and the Warrant Shares have not been registered under the Securities Act or the securities
laws of any State. Such Purchaser agrees and represents that he, she or it will not voluntarily sell, assign, pledge or otherwise dispose of any Shares, Warrants, Warrant Shares or any portion thereof unless, there is delivered to the Company
evidence, satisfactory to the Company, which may include an opinion of counsel reasonably acceptable to the Company, to confirm that such Shares, Warrants or Warrant Shares may be legally sold or disposed of without registration or qualification
under the applicable state or federal statutes, or the Shares, Warrants or Warrant Shares, as the case may be, shall have been so registered or qualified and an appropriate registration statement shall then be in effect; the Purchaser understands
that the certificates representing the Shares, Warrants and Warrant Shares will bear a Private Placement Legend (as defined below) containing the foregoing restriction. 
  
 (f) Such Purchaser is fully aware that the Shares, Warrants and Warrant Shares are being issued and sold to the Purchaser in
reliance upon the exemption provided for in Section 4(2) of the Act and Rule 506 promulgated thereunder and similar exemptions provided under state securities laws on the grounds that no public offering is involved and that the representations,
warranties and agreements set forth in this Agreement are essential to the claiming of such exemptions. 
  
 (g) Nothing in this Article V shall limit or modify the representations and warranties of the Company in Article IV of this Agreement or the
right of the Purchasers to rely thereon. 
  
 5.2 No
Brokers. Such Purchaser has not employed, and is not subject to the valid claim of, any broker, finder, consultant or other intermediary in connection with the transactions contemplated by this Agreement who is entitled to a fee or commission in
connection with the transactions contemplated by this Agreement. 
  

 8 

 ARTICLE VI. 
 COVENANTS 
  
 6.1
Legend. Each Purchaser agrees to the placement on certificates representing Shares, Warrants and Warrant Shares of a legend (the “Private Placement Legend”) substantially as set forth below: 
  
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAW, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR PURSUANT TO
AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. 
  
 (a) The Private Placement Legend shall be removed from any such certificate if (i) the securities represented thereby are sold pursuant to an effective
registration statement under the Securities Act, (ii) there is delivered to the Company such satisfactory evidence, which may include an opinion of counsel, as reasonably may be requested by the Company, to confirm that neither such legend nor the
restrictions on transfer set forth therein are required to ensure that transfers of such securities will not violate the registration and prospectus delivery requirements of the Securities Act, or (iii) the securities represented thereby may be
resold pursuant to Rule 144(k) promulgated under the Securities Act. 
  
 (b) The certificates representing the Shares shall also bear a legend substantially as set forth below: 
  
 THIS CERTIFICATE ALSO EVIDENCES A BENEFICIAL INTEREST IN AND ENTITLES THE HOLDER HEREOF TO CERTAIN RIGHTS AS SET FORTH IN THE RIGHTS AGREEMENT BETWEEN
COTELLIGENT, INC. (THE “COMPANY”) AND EQUISERVE TRUST COMPANY, N.A. (AS SUCCESSOR TO BANKBOSTON, N.A.) (THE “RIGHTS AGENT”), DATED AS OF SEPTEMBER 24, 1997, AS AMENDED BY AMENDMENT NO. 1 TO RIGHTS AGREEMENT, DATED AS OF JUNE 13,
2002 (THE “RIGHTS AGREEMENT”), AND AS THE SAME MAY BE AMENDED FROM TIME TO TIME, THE TERMS OF WHICH ARE HEREBY INCORPORATED HEREIN BY REFERENCE AND A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICES OF THE COMPANY. UNDER CERTAIN
CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, SUCH RIGHTS WILL BE EVIDENCED BY SEPARATE CERTIFICATES AND BENEFICIAL INTERESTS THEREIN WILL NO LONGER BE EVIDENCED BY THIS CERTIFICATE. THE COMPANY WILL MAIL TO THE HOLDER OF THIS CERTIFICATE A
COPY OF THE RIGHTS AGREEMENT, AS IN EFFECT ON THE DATE OF 
  

 9 

 MAILING, WITHOUT CHARGE, PROMPTLY AFTER RECEIPT OF A WRITTEN REQUEST THEREFOR. UNDER CERTAIN
CIRCUMSTANCES SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS ISSUED TO, OR HELD BY, ANY PERSON WHO IS, WAS OR BECOMES AN ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT), WHETHER CURRENTLY HELD BY
OR ON BEHALF OF SUCH PERSON OR BY ANY SUBSEQUENT HOLDER, MAY BECOME NULL AND VOID. 
  
 (c) No other legends shall be placed on such certificates without the consent of the Purchasers. 
  
 6.2 Shares Issuable Upon Exercise. The Company shall reserve and keep available, out of its authorized and unissued capital stock, solely for the
purpose of effecting the exercise of the Warrants, the full number of shares of Common Stock as shall from time to time be sufficient to effect the exercise of Warrants from time to time outstanding. 
  
 ARTICLE VII. 
 REGISTRATION RIGHTS 
  
 7.1 Registration. As promptly as reasonably practicable after the first anniversary of the Closing Date, the Company shall use its commercially reasonable efforts to prepare and file with the Commission on one
occasion, a registration statement and such other documents as may be necessary in the advice of counsel for the Company, and use its commercially reasonable efforts to have such registration statement declared effective in order to comply with the
provisions of the Securities Act so as to permit (i) the registered resale of the Warrants and the exercise of the Warrants for Warrant Shares by any person to whom the Warrants are resold pursuant to such resale registration and (ii) the registered
resale of the Shares and the Warrant Shares for a period of one (1) year following the date on which the registration statement is declared effective by each and every holder of Shares and Warrants sold in the Offering (the “Offering
Securities”) who desires to register the resale of their shares. Within five (5) business days after the first anniversary of the Closing Date, the Company shall give each holder of Offering Securities notice at the address of such holder
appearing on the register and transfer records of Company of the Company’s intention to register the resale of such Offering Securities. The obligations of the Company to give such notice shall be limited to the Purchasers. Purchasers who
desire to register the resale of their shares are referred to herein as “Offering Holders.” 
  
 7.2 Temporary Suspension of Use of Registration Statement. Notwithstanding the foregoing provisions of this Article VII, the Company may
voluntarily suspend the effectiveness of any such registration statement for a limited time, which in no event shall be longer than 60 consecutive or non-consecutive days in any 12-month period, if the Company has been advised by counsel or
underwriters to the Company that the offering of any Offering Securities pursuant to the registration statement would materially adversely affect, or would be improper in view of (or improper without disclosure in a prospectus), a proposed
financing, a reorganization, 
  

 10 

 recapitalization, merger, consolidation, or similar transaction involving the Company. If any event occurs that would
cause the registration statement to contain a material misstatement or omission or not to be effective and usable during the period that such registration statement is required to be effective and usable, the Company shall promptly file an amendment
to the registration statement and use its commercially reasonable efforts to cause such amendment to be declared effective as soon as practicable thereafter. Within five (5) business days after the first anniversary of the Closing Date, the Offering
Holders shall furnish promptly to the Company such information regarding their holdings and the proposed manner of distribution thereof as shall be required in connection with any such registration statement and shall continue to furnish promptly to
the Company any subsequent information required to be disclosed in order to make any previously furnished information not materially misleading. Notwithstanding any provision contained herein to the contrary, the Company’s obligation to
include, or continue to include, Offering Securities in any such registration statement under this Article VII shall terminate to the extent such shares may be freely sold under Rule 144(k) promulgated under the Securities Act. 
  
 7.3 Registration Procedures. If and whenever the Company is required
by the provisions of this Agreement to use its commercially reasonable efforts to effect the registration of the Offering Securities under the Securities Act for the account of an Offering Holder, the Company will, as promptly as possible:

  
 (a) prepare and file with the SEC a registration statement
with respect to such securities and use its commercially reasonable efforts to cause such registration statement to become and remain effective; 
  
 (b) prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be
necessary to keep such registration statement effective and to comply with the requirements of the Securities Act and the rules and regulations promulgated by the SEC thereunder relating to the sale or other disposition of the securities covered by
such registration statement; 
  
 (c) furnish to each Offering
Holder such numbers of copies of a prospectus complying with the requirements of the Securities Act, and such other documents as such Offering Holder may reasonably request in order to facilitate the public sale or other disposition of the Offering
Securities owned by such Offering Holder, but such Offering Holder shall not be entitled to use any selling materials other than a prospectus; 
  
 (d) use its commercially reasonable efforts to register or qualify the securities covered by such registration statement under the state securities laws
as any Offering Holder shall reasonably request, and do any and all such other acts and things as may be necessary or advisable to enable such Offering Holder to consummate the public sale or other disposition of the Offering Securities owned by
such Offering Holder in such states; provided, however, that the Company shall not be obligated to register or qualify such securities in any jurisdiction in which such registration or qualification would require the Company to qualify as a foreign
corporation or file any general consent to service of process where it is not then so qualified or has not theretofore so consented; and 
  

 11 

 (e) provide a transfer agent for the Common Stock not later than the effective date of the applicable
registration statement. 
  
 7.4 Expenses of Registration.
Except as provided below in this Article VII, the expenses incurred by the Company in connection with action taken by the Company to comply with this Article VII, including, without limitation, all registration and filing fees, printing and delivery
expenses, accounting fees, fees and disbursements of counsel to the Company, consultant and expert fees, premiums for liability insurance, if applicable, obtained in connection with a registration statement filed to effect such compliance, if
applicable, and all expenses, including counsel fees, for complying with state securities laws, shall be paid by the Company. All fees and disbursements of any counsel, experts, or consultants employed by any Offering Holder shall be borne by such
Offering Holder. The Company shall not be obligated in any way in connection with any registration pursuant to this Article VII, for any selling commissions or discounts payable to any underwriter or broker for securities to be sold by such Offering
Holder. It shall be a condition precedent to the obligation of the Company to take any action pursuant to this Article VII that the Company shall have received an undertaking satisfactory to it from each Offering Holder to pay all expenses required
to be borne by such Offering Holder and to furnish or cause to be furnished to the Company, specifically for use in the preparation of the registration statement and prospectus, written information concerning (i) the securities held by such Offering
Holder and any underwriter of such securities, (ii) the intended method of disposition thereof and (iii) any additional information or documentation as the Company shall reasonably request and as may be required by administrators of the Securities
Act or state securities laws in connection with the action to be taken by the Company hereunder pursuant to such registration. 
  
 7.5 Indemnification by Company. To the extent permitted by law, the Company will indemnify and hold harmless each Offering Holder, its officers,
directors and each underwriter of such securities, and any person who controls such Offering Holder or underwriter within the meaning of Section 15 of the Securities Act, against all claims, actions, losses, damages, liabilities and expenses, joint
or several, to which any of such persons may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon any untrue statement of any material fact contained in
any registration statement under which such securities were registered under the Securities Act, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the omission
to state therein a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will promptly reimburse such Offering Holder, its officers, directors and each underwriter
of such securities, and each such controlling person or entity for any legal and any other expenses reasonably incurred by such Offering Holder, such underwriter, or such controlling person or entity in connection with investigating or defending any
such loss, action, claim, damage, liability or action; provided, however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage, liability or action arises out of or is based upon an untrue statement or
omission made in such registration statement, preliminary prospectus or prospectus, or such amendment or supplement in reliance upon and in conformity with written information furnished to the Company by such Offering Holder or such underwriter
specifically for use in the preparation thereof, and provided further, however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability or action arises out of or is based upon an untrue
statement or omission made in any preliminary 
  

 12 

 prospectus or final prospectus if (i) such Offering Holder failed to send or deliver a copy of the final prospectus or
prospectus supplement with or prior to the delivery of written confirmation of the sale of the Offering Securities and (ii) the final prospectus or prospectus supplement would have corrected such untrue statement or omission. 
  
 7.6 Indemnification by Offering Holders. In the event of any
registration of any securities under the Securities Act pursuant to this Article VII, each Offering Holder will, or will furnish the written undertaking of such other person or entity as shall be acceptable to the Company to, indemnify and hold
harmless the Company, its officers, directors and any person who controls the Company within the meaning of Section 15 of the Securities Act, its agents, counsel and accountants, against any losses, claims, damages, liabilities, or actions, joint or
several, to which the Company, its officers, directors, such controlling person or entity or its agents, counsel and accountants, may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages, liabilities, or
actions arise out of or are based upon any untrue statement of any material fact contained in any registration statement under which such securities were registered under the Securities Act, any preliminary prospectus or final prospectus contained
therein, or any amendment or supplement thereto, or arise out of or are based upon the omission to state therein a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading,
in each case to the extent and only to the extent that any such loss, claim, damage, liability, or action arises out of or is based upon an untrue statement or omission made in such registration statement, preliminary prospectus or prospectus or
such amendment or supplement in reliance upon and in conformity with written information furnished to the Company by such Offering Holder or any underwriter of such Offering Holder’s securities specifically for use in the preparation thereof,
and will promptly reimburse the Company, its officers, directors and any person who controls the Company within the meaning of Section 15 of the Securities Act and its agents, counsel and accountants in connection with investigating or defending any
such loss, action, claim, damage, liability or action; provided, however, that the aggregate amount which any such Offering Holder shall be required to pay pursuant to this Section 7.6 shall be limited to the dollar amount of the gross proceeds
received by such Offering Holder upon the sale of the Shares or Warrant Shares pursuant to the registration statement giving rise to such claim. Such indemnity shall remain in full force and effect regardless of any investigation made by or on
behalf of the Company, its officers, directors and any person who controls the Company within the meaning of Section 15 of the Securities Act, and shall survive the transfer of the Shares by such Offering Holder. 
  
 7.7 Notification of Certain Events. At any time when a prospectus
relating to the Offering is required to be delivered under the Securities Act, the Company will promptly notify the Offering Holder of the happening of any event, upon the notification or awareness of such event by an executive officer of the
Company, as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of material fact or omits to state a material fact necessary to make the statements therein, in the light of the
circumstances then existing, not misleading. 
  
 7.8
Indemnification Procedures. Any party entitled to indemnification hereunder will (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified
party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such 
  

 13 

 claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the
indemnified party. If such defense is assumed, the indemnifying party will not be subject to any liability for any settlement made by the indemnified party without its consent (which consent may not be unreasonably withheld). An indemnifying party
who is not entitled to, or elects not to, assume the defense of a claim will not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim. 
  
 7.9 Rule 144. With a view to making available to the Offering Holder
the benefits of Rule 144 promulgated under the Securities Act, the Company agrees that it will use its commercially reasonable efforts to maintain registration of its shares represented by Common Stock under Section 12 or 15 of the Exchange Act and
to file with the SEC in a timely manner all reports and other documents required to be filed by an issuer of securities registered under the Exchange Act so as to maintain the availability of Rule 144 promulgated under the Securities Act. Upon the
request of any record owner, the Company will deliver to such owner a written statement as to whether it has complied with the reporting requirements of Rule 144 promulgated under the Securities Act. 
  
 ARTICLE VIII. 
 MISCELLANEOUS 
  
 8.1 Assignment. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by (i) the Company without the prior written consent of each of the Purchasers and (ii) any Purchaser
without the prior written consent of the Company. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the parties hereto and their permitted respective successors and assigns, and no other Person shall have any
right, benefit or obligation hereunder. 
  
 8.2 Notices.
Unless otherwise provided herein, any notice, request, instruction or other document to be given hereunder by any party to the other shall be in writing and delivered by hand-delivery, registered first-class mail, telex, telecopier, or air courier
guaranteeing overnight delivery, as follows: 
  
 If to the
Company: 
  
 Cotelligent, Inc. 
 655 Montgomery Street, Suite 1000 
 San Francisco, California 94111 
 Attention: James R. Lavelle 
 Telephone: (415) 477-9900 
 Facsimile: (415) 399-0756 
  

 14 

 With a copy to: 
  

Morgan, Lewis & Bockius LLP 
 101 Park Avenue 
 New York, New York 10178 
 Attention: David W. Pollak, Esq. 
 Telephone: (212) 309-6000 
 Facsimile: (212) 309-6001 
  
 If to any Purchaser: 
  
 At the address set forth below such Purchaser’s name on Schedule
1 hereto. 
  
 or to such other place and with such other copies as either
party may designate as to itself by written notice to the other. 
  
 All such notices, requests, instructions or other documents shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; when receipt is acknowledged by addressee, if by telecopier transmission; and on
the next Business Day if timely delivered to a nationally recognized courier guaranteeing overnight delivery. 
  
 8.3 Choice of Law. This Agreement shall be construed, interpreted and the rights of the parties determined in accordance with the internal laws of
the State of New York. Each of the parties to this Agreement hereby irrevocably and unconditionally consents to submit to the exclusive jurisdiction of the courts of the State of New York and the United States of America located in the County of New
York for any action or proceeding arising out of or relating to this Agreement (and agrees not to commence any action or proceeding relating thereto except in such courts), and further agrees that service of any process, summons, notice or document
by U.S. registered mail to its respective address set forth in Section 8.2 hereof shall be effective service of process for any action or proceeding brought against it in any such court. Each of the parties hereto hereby irrevocably and
unconditionally waives any objection to the laying of venue of any action or proceeding arising out of this Agreement in the courts of the State of New York or the United States of America located in the County of New York, and hereby further
irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action or proceeding brought in any such court has been brought in an inconvenient forum. 
  
 8.4 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 8.5 Invalidity. In the event that any one or more of the provisions contained in this Agreement or in any other instrument referred to herein,
shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other such instrument. 
  
 8.6 Headings. The headings of the Articles and Sections herein are
inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 
  

 15 

 8.7 Severability. Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall not invalidate the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable the remainder of such provision in any other jurisdiction. 

 
 [Signature Pages to Follow] 
  

 16 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, as of the day and
year first above written. 
  

			
	COTELLIGENT, INC.
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	PURCHASERS:
	
	  

	Name:
	
	  

		
	By:	 	  

	Name:	 	 
	Title:	 	 

 Schedule 1 
  
 LIST OF PURCHASERS 

 Exhibit A 
  
 Form of Warrant

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