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                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

This Employment Agreement (the "Agreement") between Cotelligent, Inc.
("Cotelligent"), a Delaware corporation, and Jeffrey B.Van Horn ("Employee") is
hereby entered into and effective as of the 10th day of July, 2000 ("Effective
                                            --
Date").

                                 R E C I T A L S
                                 ---------------

The following statements are true and correct:

As of the date of this Agreement, Cotelligent, through its operating
subsidiaries, is engaged primarily in the business of providing information
technology consulting and outsourcing services to organizations with complex
information system and technology operations.  References herein to
"Cotelligent" are intended to include Cotelligent and its operating
subsidiaries, as may be applicable in the circumstances.

Employee is and will be employed hereunder by Cotelligent in a confidential
relationship wherein Employee, in the course of his employment with Cotelligent,
is and will become familiar with and aware of information as to Cotelligent's
customers, specific manner of doing business, including the processes,
techniques and trade secrets utilized by Cotelligent, and future plans with
respect thereto, all of which will be established and maintained at great
expense to Cotelligent; this information is a trade secret and constitutes the
valuable goodwill of Cotelligent.

Therefore, in consideration of the mutual promises, terms, covenants and
conditions set forth herein and the performance of each, it is hereby agreed as
follows:

                                 A G R E E M E N T S
                                 -------------------

     1.   Employment and Duties.
          ---------------------

     (a)  Cotelligent hereby employs Employee as Executive Vice President, Chief
Financial Officer and Treasurer.  As such, Employee shall have responsibilities,
duties and authority reasonably accorded to and expected of an executive vice
president, chief financial officer and treasurer and will report solely and
directly to the Chief Executive Officer. Employee hereby accepts this employment
upon the terms and conditions herein contained and, subject to Section 1(c)
agrees to devote his time, attention and efforts to promote and further the
business of Cotelligent.

     (b)  Employee shall faithfully adhere to, execute and fulfill all lawful
policies established by Cotelligent.

     (c)  Employee shall not, during the term of his employment hereunder, be
engaged in any other business activity pursued for gain, profit or other
pecuniary advantage if such activity interferes with Employee's duties and
responsibilities hereunder.  The foregoing limitations shall not be construed as
prohibiting Employee from making personal investments in such form or manner as
will neither require his services in the operation or affairs of the companies
or enterprises in which such investments are made nor violate the terms of
Section 3 hereof.

     2.   Compensation.  For all services rendered by Employee, Cotelligent
          ------------
shall compensate Employee as follows:
<PAGE>

     (a)  Base Salary. Beginning on the Effective Date, the base salary payable
to Employee shall be $300,000 per year, payable on a regular basis in accordance
with Cotelligent's standard payroll procedures but not less than monthly. After
90 days of employment and upon the successful accomplishment of certain goals
and objectives to be agreed upon between Employee and the Chief Executive
Officer, Employee's base salary shall be increased to $325,000 per year.
Thereafter, on at least an annual basis, the Chief Executive Officer will review
Employee's performance and may increase such base salary if, in his reasonable
discretion, any such increase is warranted. Such salary increase would, in all
likelihood, require approval by the Board or a duly constituted committee
thereof.

     (b)  Incentive Bonus. For fiscal year 2001 and subsequent fiscal years
during the Employee's employment with Cotelligent hereunder, Employee shall be
eligible to receive annual incentive bonuses of up to one hundred percent (100%)
of the amount of his base salary based upon such factors as the Board, or a duly
constituted committee thereof, shall determine in its discretion, including but
not limited to the Employee's individual performance and the Company's
performance.

     (c)  Executive Perquisites, Benefits and Other Compensation. Employee
shall be entitled to receive additional benefits and compensation from
Cotelligent in such form and to such extent as specified below:

          (1)  Participation for Employee in coverage for Employee and his
               dependent family members under health, hospitalization,
               disability, dental, life and other insurance plans that
               Cotelligent may have in effect from time to time, benefits
               provided to Employee under this clause (1) to be at least equal
               to such benefits provided to other Cotelligent executives.

          (2)  Reimbursement for all business travel and other out-of-pocket
               expenses reasonably incurred by Employee in the performance of
               his services pursuant to this Agreement.  All reimbursable
               expenses shall be appropriately documented in reasonable detail
               by Employee upon submission of any request for reimbursement, and
               in a format and manner consistent with Cotelligent's expense-
               reporting policy.

          (3)  Thirty-five days of paid time off pursuant to the Cotelligent
               Paid Time Off policy.

          (4)  Cotelligent shall reimburse Employee for reasonable moving
               expenses incurred by Employee to move his residence from San Jose
               to a residence closer to the San Francisco Bay Area, including
               the following:

               (i)  Cost of national carrier to move household goods from San
                    Jose to his new residence; and

               (ii) Cost of packing in San Jose and unpacking in his new
                    residence of household goods.

          (5)  Such other executive perquisites as may be available to or deemed
               appropriate for Employee by the Board and participation in all
               other Cotelligent-wide employee benefits as available from time
               to time.

     (d)  Stock Options. Cotelligent shall grant to Employee an option to
purchase 200,000 (two hundred thousand) shares of Cotelligent's common stock
("Cotelligent Common Stock"), at a price per share equal to the market price on
the close of trading on the trading day prior to the Effective Date. Employee's
stock options shall vest and become exercisable as follows: 50,000 (fifty
thousand) shares immediately upon the Effective Date; 37,500 (thirty-seven
thousand five hundred) shares on the first anniversary of the Effective Date;
37,500 (thirty-seven thousand five hundred) shares on the second anniversary of
the Effective Date; 37,500

<PAGE>

(thirty-seven thousand five hundred) shares on the third anniversary of the
Effective Date; and 37,500 (thirty-seven thousand five hundred) shares on the
fourth anniversary of the Effective Date. The options are granted pursuant to
the terms of the Cotelligent 1998 Long Term Incentive Plan.

3.   Non-Competition Agreement.
     -------------------------

     (a)  Employee will not, during the period of his employment by or with
Cotelligent, and for a period of one (1) year immediately following the
termination of his employment at any time after the completion of one year of
employment under this Agreement, for any reason whatsoever, directly or
indirectly, for himself or on behalf of or in conjunction with any other person,
persons, company, partnership, corporation or business of whatever nature:

          (i)   engage, as an officer, director, shareholder, owner, partner,
     joint venturer, or in a managerial capacity, whether as an employee,
     independent contractor, consultant or advisor, or as a sales
     representative, in any business selling any products or services in direct
     competition with Cotelligent (including its subsidiaries), within 100 miles
     of where Cotelligent or where any of its subsidiaries conducts business
     (the "Territory");

          (ii)  call upon, or cause others to call upon, any person who is, at
     that time, within the Territory, an employee of Cotelligent (including its
     subsidiaries) in a sales representative or managerial capacity for the
     purpose or with the intent of enticing such employee away from or out of
     the employ of Cotelligent (including its subsidiaries), provided that
     Employee shall be permitted to call upon and hire any member of his or her
     immediate family;

          (iii) call upon, or cause others to call upon, any person or entity
     which is, at that time, or which has been, within one (1) year prior to
     that time, a customer of Cotelligent (including its subsidiaries) within
     the Territory for the purpose of soliciting or selling products or services
     in direct competition with Cotelligent (including its subsidiaries) within
     the Territory;

          (iv)  call upon, or cause others to call upon, any prospective
     acquisition candidate, on Employee's own behalf or on behalf of any
     competitor in the computer consulting and contract programming business,
     which candidate was either called upon by Cotelligent (including its
     subsidiaries) or for which Cotelligent (including its subsidiaries) made an
     acquisition analysis, for the purpose of acquiring such entity; or

          (v)   disclose customers, whether in existence or proposed, of
     Cotelligent (including its subsidiaries) to any person, firm, partnership,
     corporation or business for any reason or purpose whatsoever except to the
     extent that Cotelligent (including its subsidiaries) has in the past
     disclosed such information to the public for valid business reasons.

     Notwithstanding the above, the foregoing covenant shall not be deemed to
prohibit Employee from acquiring as an investment not more than one percent (1%)
of the capital stock of a competing business, whose stock is traded on a
national securities exchange or over-the-counter.

     (b)  Because of the difficulty of measuring economic losses to Cotelligent
including its subsidiaries as a result of a breach of the foregoing covenant,
and because of the immediate and irreparable damage that could be caused to
Cotelligent including its subsidiaries for which it would have no other adequate
remedy, Employee agrees that the foregoing covenant may be enforced by
Cotelligent including its subsidiaries in the event of breach by him, by
injunctions and restraining orders.

     (c)  It is agreed by the parties that the foregoing covenants in this
Section 3 impose a reasonable restraint on Employee in light of the activities
and business of Cotelligent (including its subsidiaries) on the date of
<PAGE>

the execution of this Agreement and the current plans of Cotelligent; but it is
also the intent of Cotelligent and Employee that such covenants be construed and
enforced in accordance with the changing activities and business of Cotelligent
throughout the term of this covenant. For example, if, during the term of this
Agreement, Cotelligent (including its subsidiaries) engages in new and different
activities, enters a new business or establishes new locations for its current
activities or business in addition to or other than the activities or business
enumerated under the Recitals above or the locations currently established
therefore, then Employee will be precluded from soliciting the customers or
employees of such new activities or business or from such new location and from
directly competing with such new business within 100 miles of its operating
location(s) through the term of this covenant.

     It is further agreed by the parties hereto that, in the event that Employee
shall cease to be employed hereunder, and shall enter into a business or pursue
other activities not in competition with Cotelligent (including its
subsidiaries), or similar activities or business in locations the operation of
which, under such circumstances, does not violate clause (a)(i) of this Section
3, and in any event such new business, activities or location are not in
violation of this Section 3 or of Employee's obligations under this Section 3,
if any, Employee shall not be chargeable with a violation of this Section 3 if
Cotelligent (including its subsidiaries) shall thereafter enter the same,
similar or a competitive (i) business, (ii) course of activities or (iii)
location, as applicable.

     (d)  The covenants in this Section 3 are severable and separate, and the
unenforceability of any specific covenant shall not affect the provisions of any
other covenant.  Moreover, in the event any court of competent jurisdiction
shall determine that the scope, time or territorial restrictions set forth are
unreasonable, then it is the intention of the parties that such restrictions be
enforced to the fullest extent which the court deems reasonable, and the
Agreement shall thereby be reformed.

     (e)  All of the covenants in this Section 3 shall be construed as an
agreement independent of any other provision in this Agreement, and the
existence of any claim or cause of action of Employee against Cotelligent
(including its subsidiaries), whether predicated on this Agreement or otherwise,
shall not constitute a defense to the enforcement by Cotelligent (including its
subsidiaries) of such covenants.  It is specifically agreed that the period of
one (1) year stated at the beginning of this Section 3, during which the
agreements and covenants of Employee made in this Section 3 shall be effective,
shall be computed by excluding from such computation any time during which
Employee is in violation of any provision of this Section 3.

     4.   Term; Termination; Rights on Termination.  The term of this Agreement
          ----------------------------------------
shall begin on the Effective Date and continue for one year (the "Initial
Term"). On the first anniversary of the Effective Date the term shall be
extended for two additional years unless at least sixty (60) days prior to any
such anniversary either party gives notice in writing to the other that the
Agreement will not be so extended an additional year. Thereafter, the term shall
be extended an additional year on each subsequent anniversary of the Effective
Date unless at least sixty (60) days prior to any such anniversary either party
gives notice in writing to the other that the Agreement will not be so extended
an additional year. This Agreement and Employee's employment may be terminated
in any one of the following ways:

     (a)  Good Cause.  Cotelligent may terminate the Agreement ten (10) days
after written notice to Employee for good cause, which shall be: (1) Employee's
willful, material and irreparable breach of this Agreement; (2) Employee's gross
negligence in the performance or intentional nonperformance (continuing for ten
(10) days after receipt of written notice of need to cure) of any of Employee's
material duties and responsibilities hereunder which materially and adversely
affects the operations or reputation of Cotelligent (including its
subsidiaries); (3) Employee's willful dishonesty, fraud or misconduct with
respect to the business or affairs of Cotelligent (including its subsidiaries)
which materially and adversely affects the operations or reputation of
Cotelligent (including its subsidiaries); (4) Employee's conviction of a felony
crime. In the event of a termination for good cause, as enumerated above,
Employee shall have no right to any severance compensation.

     (b)  Without Cause. Should Employee be terminated without cause by
Cotelligent or Cotelligent fails to extend this Agreement without cause,
Employee shall receive, in one lump-sum payment payable as soon as
<PAGE>

practicable after the effective date of termination (x) if the termination date
is within the Initial Term, an amount which shall equal (i) one times Employee's
most recent base annual salary plus (ii) one times Employee's most recent annual
bonus (the "Termination Payment") or (y) if the termination date is subsequent
to the Initial Term, an amount which shall equal two times the Termination
Payment. It is specifically understood and agreed that, in the event Employee's
employment is terminated without cause, Cotelligent shall in all circumstances
be required to pay the Termination Payment to Employee, regardless of whether
Employee has obtained other employment following such termination and Employee
shall be under no duty to mitigate such amount or take any action to lessen
Cotelligent's liability for such payment, which is intended to be absolute.
Further, any termination without cause by Cotelligent shall operate to shorten
the period set forth in Section 3(a) and during which the terms of Section 3, if
applicable, apply to six (6) months from the date of termination of employment.

Any group health continuation coverage that Cotelligent is required to offer
under the Consolidated Omnibus Budget Reconciliation Act of 1986 ("COBRA") shall
be offered upon termination and Cotelligent shall pay the cost of such COBRA
coverage.

Employee shall be deemed to have been terminated without cause by Cotelligent if
(i) Cotelligent breaches Section 2(a) of this Agreement (ii) Employee shall be
assigned any duties materially inconsistent with, or Employee's responsibilities
shall be significantly limited, or Employee shall be significantly demoted, in
any case so as not to be serving in a Chief Financial Officer capacity to
Cotelligent and its subsidiaries and affiliates, and the continuance thereof for
a period of five (5) business days after written notice from Employee that he is
unwilling to accept such changes in duties or responsibilities.

In the event Employee is terminated without cause pursuant to this Section 4(b),
Employee's options shall become fully vested and Employee shall have,
notwithstanding anything to the contrary contained in any relevant option
agreements, ninety (90) days within which to exercise any vested options, after
which any options not exercised by Employee would be forfeited; provided,
                                                                --------
however, if Employee is terminated without cause pursuant to this Section 4(b)
-------
within one (1) year following a Change in Control (as defined in Section 11(e)
hereunder), Employee shall have, notwithstanding anything to the contrary
contained in any relevant option agreements, one (1) year within which to
exercise any vested and outstanding options, to the extent permitted by the
underlying agreements governing the Change in Control, after which any options
not exercised by Employee would be forfeited.

At any time after the commencement of employment, Employee may, without cause,
terminate this Agreement and Employee's employment, effective thirty (30) days
after written notice is provided to Cotelligent.  If Employee voluntarily
resigns or otherwise terminates his employment without cause pursuant to this
Section 4(b), (i) Employee shall receive no severance compensation and (ii)
notwithstanding anything to the contrary contained in any relevant option
agreements, Employee shall have ninety (90) days within which to exercise any
previously vested and outstanding options, after which any such options not
exercised by Employee would be forfeited.

     (c)  Change in Control of Cotelligent.  Refer to Section 11 below.

Upon termination of this Agreement for any reason provided above, Employee shall
be entitled to receive all compensation earned and all benefits and
reimbursements due through the effective date of termination.  Additional
compensation subsequent to termination, if any, will be due and payable to
Employee only to the extent and in the manner expressly provided above or in
Section 11.  All other rights and obligations of Cotelligent and Employee under
this Agreement shall cease as of the effective date of termination, except that
Cotelligent's obligations under Section 8 herein and Employee's obligations
under Sections 3, 5, 6, 7 and 9 herein shall survive such termination in
accordance with their terms.

If termination of Employee's employment arises out of Cotelligent's failure to
pay Employee on a timely basis the amounts to which he is entitled under this
Agreement or as a result of any other breach of this Agreement by Cotelligent,
as determined by a court of competent jurisdiction or pursuant to the provisions
of Section 16 below, Cotelligent shall pay all amounts and damages to which
Employee may be entitled as a result of such breach,
<PAGE>

including interest thereon and all reasonable legal fees and expenses and other
costs incurred by Employee to enforce his rights hereunder. Further, none of the
provisions of Section 3 shall apply in the event this Agreement or the
Employee's employment hereunder is terminated as a result of a breach by
Cotelligent.

     5.   Return of Company Property.  All records, designs, patents, business
          --------------------------
plans, financial statements, financial records, manuals, memoranda, lists and
other property delivered to or compiled by Employee by or on behalf of
Cotelligent (including its subsidiaries) or their representatives, vendors or
customers which pertain to the business of Cotelligent (including its
subsidiaries) shall be and remain the property of Cotelligent (including its
subsidiaries) and be subject at all times to their discretion and control.
Likewise, all correspondence, reports, records, charts, advertising materials
and other similar data pertaining to the business, activities or future plans of
Cotelligent (including its subsidiaries) which is collected by Employee shall be
delivered promptly to Cotelligent without request by it upon termination of
Employee's employment.

     6.   Inventions.  Employee shall disclose promptly to Cotelligent any and
          ----------
all significant conceptions and ideas for inventions, improvements and valuable
discoveries, whether patentable or not, which are conceived or made by Employee,
solely or jointly with another, during the period of employment or within one
(1) year thereafter, and which are directly related to the business or
activities of Cotelligent and which Employee conceives as a result of his
employment by Cotelligent.  Employee hereby assigns and agrees to assign all his
interests therein to Cotelligent or its nominee.  Whenever requested to do so by
Cotelligent, Employee shall execute any and all applications, assignments or
other instruments that Cotelligent shall deem necessary to apply for and obtain
Letters Patent of the United States or any foreign country or to otherwise
protect Cotelligent's interest therein.

     7.   Trade Secrets.  Employee agrees that he will not, during or after the
          -------------
term of this Agreement with Cotelligent, disclose the specific terms of
Cotelligent's relationships or agreements with its significant vendors or
customers or any other significant and material trade secret of Cotelligent,
whether in existence or proposed, to any person, firm, partnership, corporation
or business for any reason or purpose whatsoever other than as required by law
or to attorneys or accountants or other agents of the Company.

     8.   Indemnification.  In the event Employee is made a party to any
          ---------------
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (other than an action by Cotelligent
against Employee), by reason of the fact that he is or was performing services
under this Agreement, then Cotelligent shall indemnify and hold harmless the
Employee against all expenses (including attorneys' fees), judgments, fines and
amounts paid in settlement, as actually and reasonably incurred by Employee in
connection therewith.  In the event that both Employee and Cotelligent are made
a party to the same third-party action, complaint, suit or proceeding,
Cotelligent agrees to engage competent legal representation, and Employee agrees
to use the same representation, provided that if counsel selected by Cotelligent
shall have a conflict of interest that prevents such counsel from representing
Employee, Employee may engage separate counsel and Cotelligent shall pay all
attorneys' fees and costs of such separate counsel.  Further, while Employee is
expected at all times to use his best efforts to faithfully discharge his duties
under this Agreement, Employee cannot be held liable to Cotelligent for errors
or omissions made in good faith where Employee has not exhibited gross, willful
and wanton negligence and misconduct or performed criminal and fraudulent acts
which materially damage the business of Cotelligent.

     9.   No Prior Agreements.  Employee hereby represents and warrants to
          -------------------
Cotelligent that the execution of this Agreement by Employee and his employment
by Cotelligent and the performance of his duties hereunder will not violate or
be a breach of any agreement with a former employer, client or any other person
or entity.  Further, Employee agrees to indemnify Cotelligent for any claim,
including, but not limited to, attorneys' fees and expenses of investigation, by
any such third party that such third party may now have or may hereafter come to
have against Cotelligent based upon or arising out of any non-competition
agreement, invention or secrecy agreement between Employee and such third party
which was in existence as of the date of this Agreement.
<PAGE>

     10.  Assignment; Binding Effect.  Employee understands that he has been
          --------------------------
selected for employment by Cotelligent on the basis of his personal
qualifications, experience and skills.  Employee agrees, therefore, he cannot
assign all or any portion of his performance under this Agreement.  Subject to
the preceding two (2) sentences and the express provisions of Section 11 below,
this Agreement shall be binding upon, inure to the benefit of and be enforceable
by the parties hereto and their respective heirs, legal representatives,
successors and assigns.

     11.  Change in Control.
          -----------------

     (a)  Employee understands and acknowledges that Cotelligent may be merged
or consolidated with or into another entity and that such entity shall
automatically succeed to the rights and obligations of Cotelligent hereunder.

     (b)  In the event of a pending Change in Control (as defined below) wherein
Cotelligent and Employee have not received written notice at least five (5)
business days prior to the anticipated closing date of the transaction giving
rise to the Change in Control from the successor to all or a substantial portion
of Cotelligent's business and/or assets that such successor is willing and able
as of the closing to assume and agree to perform Cotelligent's obligations under
this Agreement in the same manner and to the same extent that Cotelligent is
hereby required to perform, then such Change in Control shall be deemed to be a
termination of this Agreement by Cotelligent without cause and the applicable
portions of Section 4(b) will apply; however, under such circumstances, the
amount of the severance payment due to Employee (a) shall be payable in a lump-
sum payment on the effective date of the termination and (b) the non-competition
provisions of Section 3 shall not apply whatsoever.

     (c)  In the case of any Change in Control, Employee may, at his sole
discretion, elect to terminate this Agreement by providing written notice to
Cotelligent at least two (2) business days prior to the anticipated closing of
the transaction giving rise to the Change in Control.  In such case, the
applicable provisions of Section 4(b) will apply as though Cotelligent had
terminated the Agreement without cause; however, under such circumstances, the
amount of the severance payment due to Employee (a) shall be payable in a lump-
sum payment on the effective date of the termination of this Agreement and (b)
the non-competition provisions of Section 3, if applicable, shall all apply for
a period of  six months from the effective date of termination of this
Agreement.

     (d)  For purposes of applying Section 4 under the circumstances described
in (b) and (c) above, the effective date of termination will be the closing date
of the transaction giving rise to the Change in Control and all compensation,
reimbursements and lump-sum payments due Employee must be paid in full by
Cotelligent at or prior to such closing. Further, Employee will be given
sufficient time and opportunity to elect whether to exercise all or any of his
vested options to purchase Cotelligent Common Stock, including any options with
accelerated vesting under the provisions of Cotelligent's 1998 Long-Term
Incentive Compensation Plan, such that he may convert the options to shares of
Cotelligent Common Stock at or prior to the closing of the transaction giving
rise to the Change in Control, if he so desires.

     (e)  A "Change in Control" shall be deemed to have occurred if:

               (i)  The consummation of a merger or consolidation of Cotelligent
                    with or into another entity or any other corporate
                    reorganization, if more than 50% of the combined voting
                    power of the continuing or surviving entity's securities
                    outstanding immediately after such merger, consolidation or
                    other reorganization is owned by persons who were not
                    stockholders of Cotelligent immediately prior to such
                    merger, consolidation or other reorganization;

               (ii) The sale, transfer or other disposition of all or
                    substantially all of the Company's assets;
<PAGE>

               (iii)  A change in the composition of the Board, as a result of
                      which fewer that one-half of the incumbent directors are
                      directors who either (x) had been directors of Cotelligent
                      on the date 24 months prior to the date of the event that
                      may constitute a Change in Control (the "original
                      directors") or (y) were elected, or nominated with the
                      affirmative votes of at least a majority of the aggregate
                      of the original directors who were still in office at the
                      time of the election or nomination and the directors whose
                      election or nomination was previously so approved; or

               (iv)   Any transaction as a result of which any person is the
                      "beneficial owner" (as defined in Rule 13d-3 under the
                      Securities Exchange Act of 1934, as amended), directly or
                      indirectly, of securities of Cotelligent representing at
                      least 30% of the total voting power represented by
                      Cotelligent then outstanding voting securities. For
                      purposes of this Paragraph (iv), the term "person" shall
                      have the same meaning as when used in sections 13(d) and
                      14(d) of such Exchange Act but shall exclude:

               (x)       A trustee or other fiduciary holding securities under
                         an employee benefit plan of Cotelligent or a subsidiary
                         of Cotelligent; and

               (y)       A corporation owned directly or indirectly by the
                         stockholders of Cotelligent in substantially the same
                         proportions as their ownership of the common stock of
                         Cotelligent.

                      A transaction shall not constitute a Change in Control if
               its sole purpose is to change the state of Cotelligent's
               incorporation or to create a holding company that will be owned
               in substantially the same proportions by the persons who held
               Cotelligent's securities immediately before such transactions.

     (f)  Employee must be notified in writing by Cotelligent at any time if a
Change in Control becomes likely or probable.

     (g)  Cotelligent shall pay to Employee an amount that, on an after-tax
basis (including federal income, excise and social security taxes, and state and
local income taxes), equals any excise tax that is determined to be payable by
Employee pursuant to Section 4999 of the Internal Revenue Code of 1986, as
amended (and any interest or penalties related to the imposition of such excise
tax), by reason of entitlements under this Agreement, as well as entitlements
outside of this Agreement that are described in Section 280G(b)(2)(A)(i) of the
Code. For purposes of this Section 11(g), Employee shall be deemed to pay
federal, state and local income taxes at the highest marginal rate of taxation.
Such amount will be due and payable by Cotelligent or its successor within ten
(10) days after Employee delivers a written request for reimbursement
accompanied by a statement from a nationally recognized consulting or accounting
firm as may be agreed to by the parties setting forth the amount owed pursuant
to this Section 11(g).

     12.  Place of Performance.
          --------------------

     (a)  Employee understands that he may be requested by the Board to relocate
from his residence in the San Francisco Bay Area to another geographic location
in order to more efficiently carry out his duties and responsibilities under
this Agreement. In such event, Cotelligent will pay all relocation costs to move
Employee, his immediate family and their personal property and effects. Such
costs may include, by way of example, but are not limited to, pre-move visits to
search for a new residence, investigate schools or for other purposes; temporary
lodging and living costs prior to moving into a new permanent residence;
duplicate home carrying costs; all closing costs on the sale of Employee's
residence in the San Francisco Bay Area and on the purchase of a comparable
residence in the new location; and added income taxes that Employee may incur if
any relocation costs are not
<PAGE>

deductible for tax purposes. The general intent of the foregoing is that
Employee shall not personally bear any out-of-pocket cost as a result of any
relocation, with an understanding that Employee will use his best efforts to
incur only those costs which are reasonable and necessary to effect a smooth,
efficient and orderly relocation with minimal disruption to the business affairs
of Cotelligent and the personal life of Employee and his family.

     (b)  Notwithstanding the above, if Employee is requested by the Board of
Cotelligent to relocate and Employee refuses, such refusal shall not constitute
"cause" for termination of this Agreement under the terms of Section 4(a) and
Employee may be deemed to be terminated without cause under the terms of Section
4(b).

     13.  Complete Agreement.  This Agreement is not a promise of future
          ------------------
employment.  Employee has no oral representations, understandings or agreements
with Cotelligent or any of its officers, directors or representatives covering
the same subject matter as this Agreement.  This written Agreement is the final,
complete and exclusive statement and expression of the agreement between
Cotelligent and Employee and of all the terms of this Agreement, and it cannot
be varied, contradicted or supplemented by evidence of any prior or
contemporaneous oral or written agreements.  This written Agreement may not be
later modified except by a further writing signed by a duly authorized officer
of Cotelligent and Employee, and no term of this Agreement may be waived except
by writing signed by the party waiving the benefit of such term.

     14.  Notice.  Whenever any notice is required hereunder, it shall be given
          ------
in writing addressed as follows:

     To Cotelligent:          Cotelligent, Inc.
                              101 California Street-Suite 2050
                              San Francisco, California  94111

     To Employee:             Jeffrey B. Van Horn
                              2198 Sheffield Ridge Court
                              San Jose, CA  95138

Notice shall be deemed given and effective three (3) days after the deposit in
the U.S. mail of a writing addressed as above and sent first class mail,
certified, return receipt requested, or when actually received.  Either party
may change the address for notice by notifying the other party of such change in
accordance with this Section 14.

     15.  Severability; Headings.  If any portion of this Agreement is held
          ----------------------
invalid or inoperative, the other portions of this Agreement shall be deemed
valid and operative and, so far as is reasonable and possible, effect shall be
given to the intent manifested by the portion held invalid or inoperative.  The
Section headings herein are for reference purposes only and are not intended in
any way to describe, interpret, define or limit the extent or intent of the
Agreement or of any part hereof.

     16.  Arbitration.  Any unresolved dispute or controversy arising under or
          -----------
in connection with this Agreement shall be settled exclusively by arbitration,
conducted before a panel of three (3) arbitrators in San Francisco, California,
in accordance with the rules of the American Arbitration Association then in
effect.  The arbitrators shall not have the authority to add to, detract from,
or modify any provision hereof nor to award punitive damages to any injured
party.  The arbitrators shall have the authority to order back-pay, severance
compensation, vesting of options (or cash compensation in lieu of vesting of
options), reimbursement of costs, including those incurred to enforce this
Agreement, and interest thereon in the event the arbitrators determine that
Employee was terminated without good cause, as defined in Section 4(a), or that
Cotelligent has otherwise materially breached this Agreement.  A decision by a
majority of the arbitration panel shall be final and binding.  Judgment may be
entered on the arbitrators' award in any court having jurisdiction. The direct
expense of any arbitration proceeding shall be borne by Cotelligent.
<PAGE>

     17.  Governing Law.  This Agreement shall in all respects be construed
          -------------
according to the laws of the State of California.

     18.  Counterparts.  This Agreement may be executed simultaneously in two
          ------------
(2) or more counterparts each of which shall be deemed an original and all of
which together shall constitute but one and the same instrument.

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

                              COTELLIGENT, INC.

                              By:  /S/ James R. Lavelle
                                   --------------------
                              Name:  James R. Lavelle
                              Title: Chairman, Chief Executive Officer &
                                     President

                              EMPLOYEE:

                              /S/ Jeffrey B. Van Horn
                              -----------------------
                              Jeffrey B. Van HornTHIS WARRANT AND ANY SHARES  ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT
BEEN  REGISTERED  UNDER THE SECURITIES  ACT OF 1933, AS AMENDED,  AND MAY NOT BE
SOLD OR  OTHERWISE  TRANSFERRED  EXCEPT  PURSUANT TO AN  EFFECTIVE  REGISTRATION
STATEMENT  FILED UNDER SUCH ACT OR PURSUANT TO AN  EXEMPTION  FROM  REGISTRATION
UNDER SUCH ACT.

                         SAVOIR TECHNOLOGY GROUP, INC.

                         COMMON STOCK PURCHASE WARRANT

CSW-110

     This certifies that, for good and valuable consideration,  receipt of which
is hereby  acknowledged,  SAVOIR TECHNOLOGY GROUP, INC., a Delaware  corporation
(the  "Company"),  grants  to MOSHE  LEVY  (the  "Warrantholder"),  the right to
subscribe  for and purchase  from the Company FORTY  THOUSAND  (40,000)  validly
issued,  fully paid and  nonassessable  shares  (the  "Warrant  Shares")  of the
Company's Common Stock,  par value $0.01 per share (the "Common Stock"),  at the
purchase  price per share of $5.00 (the  "Exercise  Price"),  exercisable at any
time and from time to time to and including  September  18, 2002 (the  "Exercise
Period"), all subject to the terms, conditions and adjustments herein set forth.

     1. Duration and Exercise of Warrant; Payment of Taxes; Information.

     1.1 Duration and Exercise of Warrant.

     (a) Cash Exercise.  This Warrant may be exercised by the  Warrantholder  by
(i) the surrender of this Warrant to the Company,  with a duly executed Exercise
Form  specifying  the number of Warrant  Shares to be  purchased,  during normal
business  hours on any  Business  Day  during the  Exercise  Period and (ii) the
delivery of payment to the  Company,  for the account of the  Company,  by cash,
wire transfer of immediately  available funds to a bank account specified by the
Company,  or by certified or bank cashier's check, of the Exercise Price for the
number of Warrant  Shares  specified in the Exercise Form in lawful money of the
United States of America.  The Company  agrees that such Warrant Shares shall be
deemed to be issued to the  Warrantholder  as the record  holder of such Warrant
Shares as of the close of business on the date on which this Warrant  shall have
been  surrendered and payment made for the Warrant Shares as aforesaid.  A stock
certificate or  certificates  for the Warrant  Shares  specified in the Exercise
Form shall be delivered to the Warrantholder as promptly as practicable,  and in
any  event  within  ten  (10)  days,   thereafter.   The  stock  certificate  or
certificates so delivered shall be in  denominations of one hundred (100) shares
each or such lesser or greater  denominations as may be reasonably  specified by
the  Warrantholder  in the  Exercise  Form.  If this  Warrant  shall  have  been
exercised only in part, the Company shall,  at the time of delivery of the stock
certificate  or  certificates,  deliver  to  the  Warrantholder  a  new  Warrant
evidencing  the rights to  purchase  the  remaining  Warrant  Shares,  which new
Warrant  shall  in all  other  respects  be  identical  with  this  Warrant.  No
adjustments  shall be made on Warrant  Shares  issuable on the  exercise of this
Warrant  for any cash  dividends  paid or payable to holders of record of Common
Stock prior to the date as of which the Warrantholder  shall be deemed to be the
record holder of such Warrant Shares.

<PAGE>

     (b) Net Issue  Exercise.  In lieu of  exercising  this Warrant  pursuant to
Section  1.1(a),  this  Warrant may be  exercised  by the  Warrantholder  by the
surrender of this Warrant to the Company,  with a duly  executed  Exercise  Form
marked to reflect Net Issue Exercise and specifying the number of Warrant Shares
to be  purchased,  during normal  business  hours on any Business Day during the
Exercise Period.  The Company agrees that such Warrant Shares shall be deemed to
be issued to the Warrantholder as the record holder of such Warrant Shares as of
the  close of  business  on the date on  which  this  Warrant  shall  have  been
surrendered  as  aforesaid.  Upon  such  exercise,  the  Warrantholder  shall be
entitled to receive  shares  equal to the value of this  Warrant (or the portion
thereof being  cancelled)  by surrender of this Warrant to the Company  together
with  notice  of such  election  in  which  event  the  Company  shall  issue to
Warrantholder  a number of shares of the Company's  Common Stock  computed as of
the date of  surrender  of this  Warrant  to the  Company  using  the  following
formula:

                                  X = Y(A-B)
                                      ------
                                         A

Where:

     X =  the number of shares of Common  Stock to be issued to  Warrantholder
          under this Section 1.1(b);

     Y =  the number of shares of Common  Stock  otherwise  purchasable  under
          this Warrant (at the date of such  calculation)  or, if only a portion
          of this Warrant is being exercised, the number of Warrant Shares being
          exercised;

     A =  the Current Market Price of one share of the Company's  Common Stock
          (at the date of such calculation); and

     B =  the Exercise Price (as adjusted to the date of such calculation).

     (c) Current Market Price.  For purposes of Section  1.1(b),  Current Market
Price of one share of the Company's Common Stock shall mean:

          (i) the average of the daily closing prices per share of the Company's
     Common Stock on the principal national securities exchange or on the Nasdaq
     Stock Market's  ("Nasdaq")  National  Market,  on which the Common Stock is
     listed or admitted to trading,  for the five (5)  business  days before the
     day in question, or

          (ii) if not  listed or  traded on any such  exchange  or  market,  the
     average of the last  reported  sale price per share on the Nasdaq  SmallCap
     Market for the five (5) business days before the day in question, or

          (iii) if not  listed or traded on any such  exchange  or  Nasdaq,  the
     average  of the bid and asked  prices  per share as  reported  in the "pink
     sheets" published by the National  Quotation Bureau,  Inc. for the five (5)
     business days before the day in question, or

                                       2

<PAGE>

          (iv) if such  quotations are not available,  the fair market value per
     share of the Company's Common Stock on the date such notice was received by
     the  Company as  reasonably  determined  by the Board of  Directors  of the
     Company.

     1.2 Payment of Taxes. The issuance of certificates for Warrant Shares shall
be made  without  charge to the  Warrantholder  for any stock  transfer or other
issuance tax in respect thereto; provided, however, that the Warrantholder shall
be  required  to pay any and all taxes  which may be  payable  in respect of any
transfer  involved in the  issuance and  delivery of any  certificate  in a name
other than that of the then  Warrantholder  as  reflected  upon the books of the
Company.

     1.3 Information.  Upon receipt of a written request from the Warrantholder,
the  Company  agrees to deliver  promptly  to such  Warrantholder  a copy of its
current  publicly  available  financial  statements  and to  provide  such other
publicly  available  information  concerning  the business and operations of the
Company  as such  Warrantholder  may  reasonably  request in order to assist the
Warrantholder  in evaluating  the merits and risks of exercising the Warrant and
to make an informed investment decision in connection with such exercise.

     2. Restrictions on Transfer; Restrictive Legends.

     2.1 Restrictions on Transfer; Compliance with Securities Laws. This Warrant
and the  Warrant  Shares  issued upon the  exercise  of this  Warrant may not be
transferred  or  assigned  in  whole  or in part  without  compliance  with  all
applicable  federal and state  securities  laws by the transferor and transferee
(including the delivery of investment  representation letters and legal opinions
reasonably  satisfactory to the Company,  if such are requested by the Company).
The Warrantholder,  by acceptance hereof, acknowledges that this Warrant and the
Warrant Shares to be issued upon exercise  hereof are being acquired  solely for
the  Warrantholder's  own account and not as a nominee for any other party,  and
for investment,  and that the  Warrantholder  will not offer,  sell or otherwise
dispose of this Warrant or any Warrant Shares to be issued upon exercise  hereof
except under circumstances that will not result in a violation of the Securities
Act  or  any  state  securities  laws.  Upon  exercise  of  this  Warrant,   the
Warrantholder 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 Warrantholder's own account and not as a nominee for any
other party, for investment, and not with a view toward distribution or resale.

     2.2  Restrictive  Legends.  This Warrant shall (and each Warrant  issued in
substitution  for this  Warrant  pursuant  to  Section  4 shall) be  stamped  or
otherwise imprinted with a legend in substantially the following form:

     "THIS  WARRANT AND ANY SHARES  ACQUIRED  UPON THE  EXERCISE OF THIS WARRANT
     HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  AND
     MAY NOT BE SOLD OR OTHERWISE  TRANSFERRED  EXCEPT  PURSUANT TO AN EFFECTIVE
     REGISTRATION  STATEMENT  FILED UNDER SUCH ACT OR  PURSUANT TO AN  EXEMPTION
     FROM REGISTRATION UNDER SUCH ACT."

                                       3

<PAGE>

Except as  otherwise  permitted by this  Section 2, each stock  certificate  for
Warrant  Shares  issued  upon  the  exercise  of this  Warrant  and  each  stock
certificate  issued  upon the direct or indirect  transfer  of any such  Warrant
Shares shall be stamped or otherwise  imprinted  with a legend in  substantially
the following form:

     "THE SHARES  REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
     THE  SECURITIES  ACT OF 1933, AS AMENDED,  AND MAY NOT BE SOLD OR OTHERWISE
     TRANSFERRED  EXCEPT PURSUANT TO AN EFFECTIVE  REGISTRATION  STATEMENT FILED
     UNDER SUCH ACT OR PURSUANT TO AN  EXEMPTION  FROM  REGISTRATION  UNDER SUCH
     ACT."

     Notwithstanding the foregoing, the Warrantholder may require the Company to
issue a stock  certificate  for  Warrant  Shares  without  a legend  if (i) such
Warrant  Shares,  as the case may be, have been  registered for resale under the
Securities Act and sold pursuant to such  registration  or sold pursuant to Rule
144  under  the  Securities  Act (or a  successor  rule  thereto)  or  (ii)  the
Warrantholder has received an opinion of counsel reasonably  satisfactory to the
Company  that such  registration  is not  required  with respect to such Warrant
Shares.

     3. Reservation of Shares, Etc.

     The Company  covenants and agrees that all Warrant  Shares which are issued
upon the exercise of this Warrant will, upon issuance,  be validly issued, fully
paid and  nonassessable  and free from all taxes (in accordance with Section 1.2
above), liens,  security interests,  charges and other encumbrances with respect
to the issue thereof.  The Company further covenants and agrees that, during the
Exercise Period, the Company will at all times have authorized and reserved, and
keep available free from  preemptive  rights,  a sufficient  number of shares of
Common  Stock to provide  for the  exercise  of the rights  represented  by this
Warrant and will, at its expense, upon each such reservation of shares,  procure
such  listing of such shares of Common  Stock  (subject to issuance or notice of
issuance)  as then may be  required on all stock  exchanges  on which the Common
Stock is then listed or on Nasdaq if listed thereon.

     4. Exchange, Loss or Destruction of Warrant.

     Upon  receipt by the  Company of evidence  satisfactory  to it of the loss,
theft, destruction or mutilation of this Warrant and, in the case of loss, theft
or destruction,  of such bond or  indemnification  as the Company may reasonably
require, and, in the case of such mutilation, upon surrender and cancellation of
this Warrant,  the Company will execute and deliver a new Warrant of like tenor.
The term  "Warrant"  as used in this  Agreement  shall be deemed to include  any
Warrants issued in substitution or exchange for this Warrant.

     5. Ownership of Warrant.

     The  Company  may deem and treat the person in whose  name this  Warrant is
registered  as the holder and owner  hereof  (notwithstanding  any  notations of
ownership  or writing  hereon  made by anyone  other than the  Company)  for all
purposes and shall not be affected by any notice to the contrary.

                                       4

<PAGE>

     6. Certain Adjustments.

     6.1  Adjustments  in Number of Warrant  Shares and in Exercise  Price.  The
number of Warrant Shares  purchasable  upon the exercise of this Warrant and the
Exercise Price shall be subject to adjustment as follows:

     (a) Stock  Dividends.  If at any time prior to the exercise of this Warrant
in full (i) the Company  shall fix a record  date for the  issuance of any stock
dividend payable in shares of Common Stock or other distribution with respect to
the Common Stock  payable in  securities  or (ii) the number of shares of Common
Stock shall have been increased by a subdivision or split-up of shares of Common
Stock, then, on the record date fixed for the determination of holders of Common
Stock entitled to receive such dividend or  distribution,  or immediately  after
the  effective  date of  subdivision  or  split-up,  as the  case  may  be,  the
securities  to be delivered  upon  exercise of this Warrant will be increased so
that the  Warrantholder  will be  entitled  to  receive  the number of shares of
Common Stock and other  securities (if any) that such  Warrantholder  would have
owned  immediately  following  such  action  had  this  Warrant  been  exercised
immediately  prior thereto,  and the Exercise Price will be adjusted as provided
below in paragraph (f).

     (b)  Combination  of Stock.  If at any time prior to the  exercise  of this
Warrant in full the number of shares of Common Stock outstanding shall have been
decreased by a combination  of the  outstanding  shares of Common  Stock,  then,
immediately after the effective date of such  combination,  the number of shares
of Common Stock to be delivered  upon exercise of this Warrant will be decreased
so that the  Warrantholder  thereafter will be entitled to receive the number of
shares of Common  Stock that such  Warrantholder  would  have owned  immediately
following such action had this Warrant been exercised immediately prior thereto,
and the Exercise Price will be adjusted as provided below in paragraph (f).

     (c)  Reorganization,  etc.  If at any time  prior to the  exercise  of this
Warrant  in  full  any   capital   reorganization   of  the   Company,   or  any
reclassification  of the Common Stock, or any  consolidation of the Company with
or merger of the  Company  with or into any other  person or any sale,  lease or
other transfer of all or  substantially  all of the assets of the Company to any
other  person,  shall be effected in such a way that the holders of Common Stock
shall be entitled to receive  stock,  other  securities or assets  (whether such
stock,  other  securities or assets are issued or  distributed by the Company or
another  person)  with respect to or in exchange for Common  Stock,  then,  upon
exercise of this Warrant the  Warrantholder  shall have the right to receive the
kind and  amount of stock,  other  securities  or  assets  receivable  upon such
reorganization, reclassification,  consolidation, merger or sale, lease or other
transfer  by a holder  of the  number  of  shares  of  Common  Stock  that  such
Warrantholder  would have been entitled to receive upon exercise of this Warrant
had  this  Warrant  been  exercised   immediately  before  such  reorganization,
reclassification,  consolidation,  merger  or sale,  lease  or  other  transfer,
subject to adjustments that shall be as nearly  equivalent as may be practicable
to the adjustments provided for in this Section 6.

     (d) Fractional  Shares. No fractional shares of Common Stock or scrip shall
be issued to any  Warrantholder in connection with the exercise of this Warrant.
Instead  of any  fractional  shares of Common  Stock  that  would  otherwise  be
issuable to such  Warrantholder,  the Company will pay to such  Warrantholder  a
cash adjustment in respect of such fractional interest in an

                                       5

<PAGE>

amount equal to that  fractional  interest of the then Current  Market Price per
share of Common Stock.

     (e) Carryover.  Notwithstanding  any other  provision of this Section 6, no
adjustment shall be made to the number of shares of Common Stock to be delivered
to the  Warrantholder  (or to the Exercise Price) if such adjustment  represents
less  than 1% of the  number  of  shares  to be so  delivered,  but  any  lesser
adjustment  shall be carried  forward and shall be made at the time and together
with the next  subsequent  adjustment  which  together with any  adjustments  so
carried  forward  shall  amount  to 1% or more of the  number of shares to be so
delivered.

     (f)  Exercise  Price  Adjustment.  Whenever  the number of  Warrant  Shares
purchasable  upon the exercise of this Warrant is adjusted,  as herein provided,
the Exercise  Price  payable upon the exercise of this Warrant shall be adjusted
by multiplying  such Exercise Price  immediately  prior to such  adjustment by a
fraction,  of  which  the  numerator  shall  be the  number  of  Warrant  Shares
purchasable  upon  the  exercise  of  this  Warrant  immediately  prior  to such
adjustment,  and of which the denominator  shall be the number of Warrant Shares
purchasable immediately thereafter.

     (g) No Duplicate Adjustments. Notwithstanding anything else to the contrary
contained herein, in no event will an adjustment be made under the provisions of
this Section 6 to the number of Warrant  Shares  issuable  upon exercise of this
Warrant  or  the  Exercise   Price  for  any  event  if  an  adjustment   having
substantially  the same  effect  to the  Warrantholder  as any  adjustment  that
otherwise  would be made under the  provisions  of this Section 6 is made by the
Company  for any such  event to the  number of shares of Common  Stock (or other
securities) issuable upon exercise of this Warrant.

     6.2 No  Adjustment  for  Dividends.  Except as provided in Section  6.1, no
adjustment  in respect of any  dividends  shall be made  during the term of this
Warrant or upon the exercise of this Warrant.

     6.3 Notice of  Adjustment.  Whenever  the  number of Warrant  Shares or the
Exercise  Price of such Warrant  Shares is  adjusted,  as herein  provided,  the
Company  shall  promptly  mail  by  first  class,   postage   prepaid,   to  the
Warrantholder, notice of such adjustment or adjustments and a certificate of the
chief  financial  officer  of the  Company  setting  forth the number of Warrant
Shares and the  Exercise  Price of such Warrant  Shares  after such  adjustment,
setting  forth a brief  statement of the facts  requiring  such  adjustment  and
setting forth the computation by which such adjustment was made.

     7. Notices of Corporate Action.

     In the event of

     (a) any taking by the  Company  of a record of the  holders of any class of
securities for the purpose of determining  the holders  thereof who are entitled
to receive any dividend or other  distribution,  or any right to subscribe  for,
purchase  or  otherwise  acquire  any  shares of stock of any class or any other
securities or property, or to receive any other right, or

                                       6

<PAGE>

     (b) any capital  reorganization  of the Company,  any  reclassification  or
recapitalization  of the capital  stock of the Company or any Change of Control,
or

     (c) any voluntary or involuntary dissolution,  liquidation or winding-up of
the Company,

the Company will mail to the  Warrantholder a notice  specifying (i) the date or
expected  date on which any such  record is to be taken for the  purpose of such
dividend,  distribution  or  right  and the  amount  and  character  of any such
dividend,  distribution  or right,  (ii) the date or expected  date on which any
such  reorganization,  reclassification,  recapitalization,  Change of  Control,
dissolution,  liquidation  or  winding-up  is to take place and the time, if any
such time is to be fixed,  as of which the holders of record of Common Stock (or
other securities) shall be entitled to exchange their shares of Common Stock (or
other  securities)  for the securities or other property  deliverable  upon such
reorganization,   reclassification,   recapitalization,   Change   of   Control,
dissolution,  liquidation  or winding-up and (iii) that in the event of a Change
of Control, this Warrant is exercisable immediately prior to the consummation of
such  Change of Control.  Such notice  shall be mailed at least 20 days prior to
the date therein specified, in the case of any date referred to in the foregoing
subdivisions (i) or (ii).

     8. Definitions.

     As used herein, unless the context otherwise requires,  the following terms
have the following respective meanings:

     Business  Day:  any day  other  than a  Saturday,  Sunday or a day on which
national banks are authorized by law to close in the City of New York,  State of
New York.

     Change of Control: shall mean (i) a sale, conveyance,  exchange or transfer
of all or substantially all of the property and assets of the Company,  (ii) the
sale of all or  substantially  all of the  capital  stock of the  Company or the
merger or consolidation of the Company into or with any other  corporation or an
affiliate thereof (except if such merger or consolidation does not result in the
transfer  of more than  fifty  percent  (50%) of the  voting  securities  of the
Company or if such  merger or  consolidation  is  effected  solely to change the
Company's  jurisdiction of incorporation);  or (iii) any sale or transfer of any
capital stock of the Company,  following  which  fifty-one  percent (51%) of the
combined voting power of the Company becomes beneficially owned by one person or
group acting together.  For purposes of this definition,  "group" shall have the
meaning as such term is used in section 13(d)(1) of the Exchange Act.

     Commission:  the  Securities  and Exchange  Commission or any other federal
agency  at the  time  administering  the  Securities  Act or the  Exchange  Act,
whichever is the relevant statute for the particular purpose.

     Company: Savoir Technology Group, Inc., a Delaware corporation.

     Convertible  Securities:  securities  by their  terms  convertible  into or
exchangeable for Common Stock.

                                       7

<PAGE>

     Exchange  Act:  the  Securities  Exchange Act of 1934,  as amended,  or any
successor  federal  statute,  and the rules and  regulations  of the  Commission
thereunder,  all as the same  shall be in  effect at the  time.  Reference  to a
particular  section of the  Securities  Exchange Act of 1934, as amended,  shall
include a reference to a comparable  section,  if any, of any successor  federal
statute.

     Exercise Form: an Exercise Form in the form annexed hereto as Exhibit A.

     Exercise Price: the meaning specified on the cover of this Warrant, as such
price may be adjusted pursuant to Section 6 hereof.

     Nasdaq: the meaning specified in Section 1.1(c)(i).

     Related Rights:  options or warrants to purchase or rights to subscribe for
securities by their terms convertible into or exchangeable for Common Stock.

     Rights:  options or warrants to purchase or rights to subscribe  for Common
Stock.

     Securities: Convertible Securities, Rights and Related Rights.

     Securities  Act: the Securities  Act of 1933, as amended,  or any successor
federal statute, and the rules and regulations of the Commission thereunder, all
as the same shall be in effect at the time. Reference to a particular section of
the  Securities  Act of 1933,  as  amended,  shall  include a  reference  to the
comparable section, if any, of any successor federal statute.

     Warrantholder: the meaning specified on the cover of this Warrant.

     Warrant Shares: the meaning specified on the cover of this Warrant, subject
to the provisions of Section 6.

     9. Miscellaneous.

     9.1 Entire Agreement. This Warrant constitutes the entire agreement between
the Company and the Warrantholder with respect to this Warrant.

     9.2 Binding Effects;  Benefits.  This Warrant shall inure to the benefit of
and shall be binding upon the Company and the Warrantholder and their respective
successors.  Nothing in this  Warrant,  expressed or implied,  is intended to or
shall  confer on any person  other than the  Company and the  Warrantholder,  or
their respective successors,  any rights,  remedies,  obligations or liabilities
under or by reason of this Warrant.

     9.3  Amendments  and  Waivers.  This Warrant may not be modified or amended
except by an instrument or  instruments in writing signed by the Company and the
Warrantholder.  Either the Company or the Warrantholder may, by an instrument in
writing,  waive compliance by the other party with any term or provision of this
Warrant on the part of such other party hereto to be performed or complied with.
The  waiver  by any  such  party of a breach  of any term or  provision  of this
Warrant shall not be construed as a waiver of any subsequent breach.

                                       8

<PAGE>

     9.4 Section and Other Headings. The section and other headings contained in
this  Warrant are for  reference  purposes  only and shall not be deemed to be a
part of this Warrant or to affect the meaning or interpretation of this Warrant.

     9.5 Further Assurances.  Each of the Company and the Warrantholder shall do
and  perform all such  further  acts and things and execute and deliver all such
other   certificates,   instruments   and   documents  as  the  Company  or  the
Warrantholder  may,  at any time and from time to time,  reasonably  request  in
connection with the performance of any of the provisions of this Warrant.

     9.6 Notices. All notices and other communications  required or permitted to
be given under this Warrant shall be in writing and shall be deemed to have been
duly  given if  delivered  personally  or sent by United  States  mail,  postage
prepaid,  to the  parties  hereto at the  following  addresses  or to such other
address as any party hereto shall hereafter specify by notice to the other party
hereto:

     (a) if to the Company, addressed to:

                         Savoir Technology Group, Inc.
                         254 East Hacienda Avenue
                         Campbell, California 95008
                         Attention: Chief Financial Officer
                         Telefax: (408) 378-0750

     (b) if to the  Warrantholder,  to the  address  set forth on the  Company's
register.

Except as otherwise provided herein,  all such notices and communications  shall
be deemed to have been  received on the date of delivery  thereof,  if delivered
personally, or on the third Business Day after the mailing thereof.

     9.7 Separability. Any term or provision of this Warrant which is invalid or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such invalidity or  unenforceability  without rendering invalid
or  unenforceable  the terms and  provisions  of this Warrant or  affecting  the
validity or  enforceability of any of the terms or provisions of this Warrant in
any other jurisdiction.

     9.8 Governing Law. This Warrant shall be deemed to be a contract made under
the laws of the State of New York.

                                       9

<PAGE>

     9.9 No Rights or  Liabilities  as  Stockholder.  Nothing  contained in this
Warrant  shall be  deemed  to  confer  upon the  Warrantholder  any  rights as a
stockholder of the Company or to impose any liabilities on the  Warrantholder to
purchase any securities  whether such liabilities are asserted by the Company or
by creditors or stockholders of the Company or otherwise.

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
duly authorized officer.

     Dated: December 21, 1999.

                                        SAVOIR TECHNOLOGY GROUP, INC.

                                        By ___________________

                                        Dennis J. Polk
                                        Senior Vice President, Corporate Finance

                                       10

<PAGE>

                                                                       Exhibit A
                                                                       ---------

                                 EXERCISE FORM
                                 -------------

                 (To be executed upon exercise of this Warrant)

     The  undersigned   hereby   irrevocably   elects  to  exercise  the  right,
represented by this Warrant, to purchase Warrant Shares and (check one):

     [ ]  herewith  tenders  payment for _______ of the Warrant  Shares to the
          order of SAVOIR  TECHNOLOGY GROUP, INC. in the amount of $_________ in
          accordance with the terms of this Warrant; or

     [ ]  herewith tenders this Warrant for _______ Warrant Shares pursuant to
          the Net Issue Exercise provisions of Section 1.1(b) of this Warrant.

The undersigned  requests that a certificate (or  certificates) for such Warrant
Shares be registered in the name of the  undersigned  and that such  certificate
(or certificates) be delivered to the undersigned's address below.

     In  exercising   this  Warrant,   the   undersigned   hereby  confirms  and
acknowledges  that the Warrant Shares are being acquired  solely for the account
of the undersigned and not as a nominee for any other party, for investment, and
that the  undersigned  will not  offer,  sell or  otherwise  dispose of any such
Warrant Shares except under circumstances that will not result in a violation of
the Securities Act of 1933, as amended, or any state securities laws.

     Dated: ___________________.

                                                      __________________________
                                                               (Signature)

                                                      __________________________
                                                              (Print Name)

                                                      __________________________
                                                            (Street Address)

                                                      __________________________
                                                       (City) (State) (Zip Code)

     If said number of shares shall not be all the shares  purchasable under the
within  Warrant,  a new Warrant is to be issued in the name of said  undersigned
for the balance remaining of the shares purchasable thereunder.

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