Document:

1998 Employee Stock Purchase Plan, as amended

 EXHIBIT 10.01 
  
 CONCUR TECHNOLOGIES, INC. 
 1998 EMPLOYEE STOCK PURCHASE PLAN 1 
  
 1. Establishment of Plan. Concur Technologies, Inc. (the
“Company”) proposes to grant options for purchase of the Company’s Common Stock to eligible employees of the Company and its Participating Subsidiaries (as hereinafter defined) pursuant to this Employee Stock Purchase
Plan (this “Plan”). For purposes of this Plan, “Parent Corporation” and “Subsidiary” shall have the same meanings as “parent corporation” and “subsidiary
corporation” in Sections 424(e) and 424(f), respectively, of the Internal Revenue Code of 1986, as amended (the “Code”). “Participating Subsidiaries” are Parent Corporations or Subsidiaries that
the Board of Directors of the Company (the “Board”) designates from time to time as corporations that shall participate in this Plan. The Company intends this Plan to qualify as an “employee stock purchase plan”
under Section 423 of the Code (including any amendments to or replacements of such Section), and this Plan shall be so construed. Any term not expressly defined in this Plan but defined for purposes of Section 423 of the Code shall have the same
definition herein. A total of 320,000 shares of the Company’s Common Stock is reserved for issuance under this Plan. In addition, on each January 1, the aggregate number of shares of the Company’s Common Stock reserved for issuance under
the Plan shall be increased automatically by a number of shares equal to one percent (1%) of the total outstanding shares of the Company as of the immediately preceding December 31; provided that such increase shall in no event exceed 320,000
shares per year. Such number shall be subject to adjustments effected in accordance with Section 14 of this Plan. 
  
 2. Purpose. The purpose of this Plan is to provide eligible employees of the Company and Participating Subsidiaries with a convenient means of
acquiring an equity interest in the Company through payroll deductions, to enhance such employees’ sense of participation in the affairs of the Company and Participating Subsidiaries, and to provide an incentive for continued employment.

  
 3. Administration. This Plan shall be administered by
the Compensation Committee of the Board (the “Committee”). Subject to the provisions of this Plan and the limitations of Section 423 of the Code or any successor provision in the Code, all questions of interpretation or
application of this Plan shall be determined by the Committee and its decisions shall be final and binding upon all participants. Members of the Committee shall receive no compensation for their services in connection with the administration of this
Plan, other than standard fees as established from time to time by the Board for services rendered by Board members serving on Board committees. All expenses incurred in connection with the administration of this Plan shall be paid by the Company.

  
 4. Eligibility. Any employee of the Company or the
Participating Subsidiaries is eligible to participate in an Offering Period (as hereinafter defined) under this Plan except the following: 
  
 (a) employees who are not employed by the Company or a Participating Subsidiary (10) days before the beginning of such Offering Period;

	1	As adopted effective as of August 21, 1998, and as amended effective as of May 1, 2005. 

  

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 Concur Technologies, Inc. 
 1998 Employee Stock Purchase Plan 
  

 (b) employees who are customarily employed for twenty (20) hours or less per week;

  
 (c) employees who are customarily employed
for five (5) months or less in a calendar year; 
  
 (d) employees who, together with any other person whose stock would be attributed to such employee pursuant to Section 424(d) of the Code, own stock or hold options to purchase stock possessing five percent (5%) or more of the total
combined voting power or value of all classes of stock of the Company or any of its Participating Subsidiaries or who, as a result of being granted an option under this Plan with respect to such Offering Period, would own stock or hold options to
purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or any of its Participating Subsidiaries; and 
  
 (e) individuals who provide services to the Company or any of its Participating Subsidiaries as independent
contractors who are reclassified as common law employees for any reason except for federal income and employment tax purposes. 
  
 5. Offering Dates. The offering periods of this Plan (each, an “Offering Period”) shall be of three (3) months duration
commencing on February 1, May 1, August 1, and November 1 of each year and ending on the immediately succeeding April 30, July 31, October 31, and January 31 thereafter, respectively. Each Offering Period shall consist of one (1) three-month
purchase period (individually, a “Purchase Period”) during which payroll deductions of the participants are accumulated under this Plan. The first business day of each Offering Period is referred to as the
“Offering Date”. The last business day of each Purchase Period is referred to as the “Purchase Date”. The Committee shall have the power to change the duration of Offering Periods with respect to
offerings without stockholder approval if such change is announced at least fifteen (15) days prior to the scheduled beginning of the first Offering Period to be affected. 
  
 6. Participation in this Plan. Eligible employees may become participants in an Offering Period under this Plan on
the first Offering Date after satisfying the eligibility requirements by delivering a subscription agreement to the Company’s treasury department (the “Treasury Department”) not later than five (5) days before such
Offering Date. Notwithstanding the foregoing, the Committee may set a later time for filing the subscription agreement authorizing payroll deductions for all eligible employees with respect to a given Offering Period. An eligible employee who does
not deliver a subscription agreement to the Treasury Department by such date after becoming eligible to participate in such Offering Period shall not participate in that Offering Period or any subsequent Offering Period unless such employee enrolls
in this Plan by filing a subscription agreement with the Treasury Department not later than five (5) days preceding a subsequent Offering Date. Once an employee becomes a participant in an Offering Period, such employee will automatically
participate in the immediately succeeding Offering Period unless the employee withdraws or is deemed to withdraw from this Plan or terminates further participation in the Offering Period as set forth in Section 11 below. Such participant is not
required to file any additional subscription agreement in order to continue participation in this Plan. An eligible employee may not participate in more than one Offering Period at a time. 
  

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 Concur Technologies, Inc. 
 1998 Employee Stock Purchase Plan 
  

 7. Grant of Option on Enrollment. Enrollment by an eligible employee in this Plan with respect
to an Offering Period will constitute the grant (as of the Offering Date) by the Company to such employee of an option to purchase on the Purchase Date up to that number of shares of Common Stock of the Company determined by dividing (a) the amount
accumulated in such employee’s payroll deduction account during such Purchase Period by (b) ninety-five percent (95%) of the fair market value of a share of the Company’s Common Stock on the Purchase Date (but in no event less than the par
value of a share of the Company’s Common Stock), provided, however, that the number of shares of the Company’s Common Stock subject to any option granted pursuant to this Plan shall not exceed the lesser of (x) the maximum
number of shares set by the Committee pursuant to Section 10(c) below with respect to the applicable Purchase Date, or (y) the maximum number of shares which may be purchased pursuant to Section 10(b) below with respect to the applicable Purchase
Date. The fair market value of a share of the Company’s Common Stock shall be determined as provided in Section 8 below. 
  
 8. Purchase Price. The purchase price per share at which a share of Common Stock will be sold in any Offering Period shall be ninety-five percent
(95%) of the fair market value on the Purchase Date. For purposes of this Plan, the term “Fair Market Value” means, as of any date, the value of a share of the Company’s Common Stock determined as follows:

  

	 	(a)	if such Common Stock is then quoted on the Nasdaq National Market, its closing price on the Nasdaq National Market on the date of determination as reported in The Wall Street
Journal; 

  

	 	(b)	if such Common Stock is publicly traded and is then listed on a national securities exchange, its closing price on the date of determination on the principal national securities
exchange on which the Common Stock is listed or admitted to trading as reported in The Wall Street Journal; 

  

	 	(c)	if such Common Stock is publicly traded but is not quoted on the Nasdaq National Market nor listed or admitted to trading on a national securities exchange, the average of the
closing bid and asked prices on the date of determination as reported in The Wall Street Journal; or 

  

	 	(d)	if none of the foregoing is applicable, by the Board in good faith. 

  
 9. Payment Of Purchase Price; Changes In Payroll Deductions; Issuance Of Shares. 
  
 (a) The purchase price of the shares is accumulated by regular payroll deductions made during each
Offering Period. The deductions are made as a percentage of the participant’s compensation in one percent (1%) increments not less than two percent (2%), nor greater than fifteen percent (15%) or such lower limit set by the Committee.
Compensation shall mean all W-2 cash compensation, including, but not limited to, base salary, wages, commissions, overtime, shift premiums and bonuses, plus draws against commissions, provided, however, that for purposes of
determining a participant’s compensation, any election by such participant to 

  

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 Concur Technologies, Inc. 
 1998 Employee Stock Purchase Plan 
  

 
reduce his or her regular cash remuneration under Sections 125 or 401(k) of the Code shall be treated as if the participant did not make such election.
Payroll deductions shall commence on the first payday of the Offering Period and shall continue to the end of the Offering Period unless sooner altered or terminated as provided in this Plan. 
  
 (b) A participant may increase or decrease the rate of
payroll deductions during an Offering Period by filing with the Treasury Department a new authorization for payroll deductions, in which case the new rate shall become effective for the next payroll period commencing more than fifteen (15) days
after the Treasury Department’s receipt of the authorization and shall continue for the remainder of the Offering Period unless changed as described below. Such change in the rate of payroll deductions may be made at any time during an Offering
Period, but not more than one (1) change may be made effective during any Purchase Period. A participant may increase or decrease the rate of payroll deductions for any subsequent Offering Period by filing with the Treasury Department a new
authorization for payroll deductions not later than fifteen (15) days before the beginning of such Offering Period. 
  
 (c) A participant may reduce his or her payroll deduction percentage to zero during an Offering Period by filing with the Treasury
Department a request for cessation of payroll deductions. Such reduction shall be effective beginning with the next payroll period commencing more than fifteen (15) days after the Treasury Department’s receipt of the request and no further
payroll deductions will be made for the duration of the Offering Period. Payroll deductions credited to the participant’s account prior to the effective date of the request shall be used to purchase shares of Common Stock of the Company in
accordance with Section (e) below. A participant may not resume making payroll deductions during the Offering Period in which he or she reduced his or her payroll deductions to zero. 
  
 (d) All payroll deductions made for a participant are credited to his or her account under this Plan and are
deposited with the general funds of the Company. No interest accrues on the payroll deductions. All payroll deductions received or held by the Company may be used by the Company for any corporate purpose, and the Company shall not be obligated to
segregate such payroll deductions. 
  
 (e) On
each Purchase Date, so long as this Plan remains in effect and provided that the participant has not submitted a signed and completed withdrawal form before that date which notifies the Company that the participant wishes to withdraw from that
Offering Period under this Plan and have all payroll deductions accumulated in the account maintained on behalf of the participant as of that date returned to the participant, the Company shall apply the funds then in the participant’s account
to the purchase of whole shares of Common Stock reserved under the option granted to such participant with respect to the Offering Period to the extent that such option is exercisable on the Purchase Date. The purchase price per share shall be as
specified in Section 8 of this Plan. Any cash remaining in a participant’s account after such purchase of shares shall be refunded to such participant in cash, without interest; provided, however that any amount remaining in such
participant’s account on a Purchase Date which is less than the amount necessary to purchase a full share of Common Stock of the Company shall be carried forward, without interest, into the next Purchase Period or Offering Period, as the case
may be. In the event that this Plan has been over-subscribed, all funds not used to purchase shares on the 

  

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 Concur Technologies, Inc. 
 1998 Employee Stock Purchase Plan 
  

 
Purchase Date shall be returned to the participant, without interest. No Common Stock shall be purchased on a Purchase Date on behalf of any employee whose
participation in this Plan has terminated prior to such Purchase Date. 
  
 (f) As promptly as practicable after the Purchase Date, the Company shall issue shares for the participant’s benefit representing the shares purchased upon exercise of his or her option. 
  
 (g) During a participant’s lifetime, his or her option
to purchase shares hereunder is exercisable only by him or her. The participant will have no interest or voting right in shares covered by his or her option until such option has been exercised. 
  
 10. Limitations on Shares to be Purchased.  
  
 (a) No participant shall be entitled to purchase stock under
this Plan at a rate which, when aggregated with his or her rights to purchase stock under all other employee stock purchase plans of the Company or any Subsidiary, exceeds $25,000 in fair market value, determined as of the Offering Date (or such
other limit as may be imposed by the Code) for each calendar year in which the employee participates in this Plan. The Company shall automatically suspend the payroll deductions of any participant as necessary to enforce such limit provided that
when the Company automatically resumes such payroll deductions, the Company must apply the rate in effect immediately prior to such suspension. 
  
 (b) On any single Purchase Date, a participant may not purchase more than two hundred percent (200%) of the number of shares such
participant could have purchased if the purchase price were ninety-five percent (95%) of the fair market value of a share of the Company’s Common Stock on the Offering Date. 
  
 (c) No participant shall be entitled to purchase more than the Maximum Share Amount (as defined below) on
any single Purchase Date. Not less than thirty (30) days prior to the commencement of any Offering Period, the Committee may, in its sole discretion, set a maximum number of shares which may be purchased by any employee at any single Purchase Date
(hereinafter the “Maximum Share Amount”). Until otherwise determined by the Committee, there shall be no Maximum Share Amount. In no event shall the Maximum Share Amount exceed the amounts permitted under Section 10(b) above.
If a new Maximum Share Amount is set, then all participants must be notified of such Maximum Share Amount prior to the commencement of the next Offering Period. The Maximum Share Amount shall continue to apply with respect to all succeeding Purchase
Dates and Offering Periods unless revised by the Committee as set forth above. 
  
 (d) If the number of shares to be purchased on a Purchase Date by all employees participating in this Plan exceeds the number of shares
then available for issuance under this Plan, then the Company will make a pro rata allocation of the remaining shares in as uniform a manner as shall be reasonably practicable and as the Committee shall determine to be equitable. In such event, the
Company shall give written notice of such reduction of the number of shares to be purchased under a participant’s option to each participant affected. 
  

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 Concur Technologies, Inc. 
 1998 Employee Stock Purchase Plan 
  

 (e) Any payroll deductions accumulated in a participant’s account which are not
used to purchase stock due to the limitations in this Section 10 shall be returned to the participant as soon as practicable after the end of the applicable Purchase Period, without interest. 
  
 11. Withdrawal. 
  
 (a) Each participant may withdraw from an Offering Period
under this Plan by signing and delivering to the Treasury Department a written notice to that effect on a form provided for such purpose. Such withdrawal may be elected at any time at least fifteen (15) days prior to the end of an Offering Period.

  
 (b) Upon withdrawal from this Plan, the
accumulated payroll deductions shall be returned to the withdrawn participant, without interest, and his or her interest in this Plan shall terminate. In the event a participant voluntarily elects to withdraw from this Plan, he or she may not resume
his or her participation in this Plan during the same Offering Period, but he or she may participate in any Offering Period under this Plan which commences on a date subsequent to such withdrawal by filing a new authorization for payroll deductions
in the same manner as set forth in Section 6 above for initial participation in this Plan. 
  
 12. Termination of Employment. Termination of a participant’s employment for any reason, including retirement, death or the failure of a participant to remain an eligible employee of the Company or of a
Participating Subsidiary, immediately terminates his or her participation in this Plan. In such event, the payroll deductions credited to the participant’s account will be returned to him or her or, in the case of his or her death, to his or
her legal representative, without interest. For purposes of this Section 12, an employee will not be deemed to have terminated employment or failed to remain in the continuous employ of the Company or of a Participating Subsidiary in the case of
sick leave, military leave, or any other leave of absence approved by the Board; provided that such leave is for a period of not more than ninety (90) days or reemployment upon the expiration of such leave is guaranteed by contract or
statute. 
  
 13. Return of Payroll Deductions. In the event
a participant’s interest in this Plan is terminated by withdrawal, termination of employment or otherwise, or in the event this Plan is terminated by the Board, the Company shall deliver to the participant all payroll deductions credited to
such participant’s account. No interest shall accrue on the payroll deductions of a participant in this Plan. 
  
 14. Capital Changes. Subject to any required action by the stockholders of the Company, the number of shares of Common Stock covered by each option
under this Plan which has not yet been exercised and the number of shares of Common Stock which have been authorized for issuance under this Plan but have not yet been placed under option (collectively, the “Reserves”), as
well as the price per share of Common Stock covered by each option under this Plan which has not yet been exercised, shall be proportionately adjusted for any increase or decrease in the number of issued and outstanding shares of Common Stock of the
Company resulting from a stock split or the payment of a stock dividend (but only on the Common Stock) or any other increase or decrease in the number of issued and outstanding shares of Common Stock effected without receipt of any consideration by
the Company; provided, however, that 

  

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 Concur Technologies, Inc. 
 1998 Employee Stock Purchase Plan 
  

 
conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration”. Such
adjustment shall be made by the Committee, whose determination shall be final, binding and conclusive. Except as expressly provided herein, no issue by the Company of shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an option. 
  

In the event of the proposed dissolution or liquidation of the Company, the Offering Period will terminate immediately prior to the consummation of
such proposed action, unless otherwise provided by the Committee. The Committee may, in the exercise of its sole discretion in such instances, declare that this Plan shall terminate as of a date fixed by the Committee and give each participant the
right to purchase shares under this Plan prior to such termination. In the event of (i) a merger or consolidation in which the Company is not the surviving corporation (other than a merger or consolidation with a wholly-owned subsidiary, a
reincorporation of the Company in a different jurisdiction, or other transaction in which there is no substantial change in the stockholders of the Company or their relative stock holdings and the options under this Plan are assumed, converted or
replaced by the successor corporation, which assumption will be binding on all participants), (ii) a merger in which the Company is the surviving corporation but after which the stockholders of the Company immediately prior to such merger (other
than any stockholder that merges, or which owns or controls another corporation that merges, with the Company in such merger) cease to own their shares or other equity interest in the Company, (iii) the sale of all or substantially all of the assets
of the Company or (iv) the acquisition, sale, or transfer of more than 50% of the outstanding shares of the Company by tender offer or similar transaction, the Plan will continue with regard to Offering Periods that commenced prior to the closing of
the proposed transaction and shares will be purchased based on the Fair Market Value of the surviving corporation’s stock on each Purchase Date, unless otherwise provided by the Committee consistent with pooling of interests accounting
treatment. 
  
 The Committee may, if it so determines in the
exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price per share of Common Stock covered by each outstanding option, in the event that the Company effects one or more reorganizations, recapitalizations,
rights offerings or other increases or reductions of shares of its outstanding Common Stock, or in the event of the Company being consolidated with or merged into any other corporation. 
  
 15. Nonassignability. Neither payroll deductions credited to a participant’s account nor any rights with regard
to the exercise of an option or to receive shares under this Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 22 below) by the
participant. Any such attempt at assignment, transfer, pledge or other disposition shall be void and without effect. 
  
 16. Reports. Individual accounts will be maintained for each participant in this Plan. Each participant shall receive promptly after the end of
each Purchase Period a report of his or her account setting forth the total payroll deductions accumulated, the number of shares purchased, the per share price thereof and the remaining cash balance, if any, carried forward to the next Purchase
Period or Offering Period, as the case may be. 
  

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 Concur Technologies, Inc. 
 1998 Employee Stock Purchase Plan 
  

 17. Notice of Disposition. Each participant shall notify the Company in writing if the
participant disposes of any of the shares purchased in any Offering Period pursuant to this Plan if such disposition occurs within two (2) years from the Offering Date (the “Notice Period”). The Company may, at any time
during the Notice Period, place a legend or legends on any certificate representing shares acquired pursuant to this Plan requesting the Company’s transfer agent to notify the Company of any transfer of the shares. The obligation of the
participant to provide such notice shall continue notwithstanding the placement of any such legend on the certificates. 
  
 18. No Rights to Continued Employment. Neither this Plan nor the grant of any option hereunder shall confer any right on any employee to remain in
the employ of the Company or any Participating Subsidiary, or restrict the right of the Company or any Participating Subsidiary to terminate such employee’s employment. 
  
 19. Equal Rights And Privileges. All eligible employees shall have equal rights and privileges with respect to this
Plan so that this Plan qualifies as an “employee stock purchase plan” within the meaning of Section 423 or any successor provision of the Code and the related regulations. Any provision of this Plan which is inconsistent with Section 423
or any successor provision of the Code shall, without further act or amendment by the Company, the Committee or the Board, be reformed to comply with the requirements of Section 423. This Section 19 shall take precedence over all other provisions in
this Plan. 
  
 20. Notices. All notices or other
communications by a participant to the Company under or in connection with this Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the
receipt thereof. 
  
 21. Term; Stockholder Approval. After
this Plan is adopted by the Board, this Plan shall be approved by the stockholders of the Company, in any manner permitted by applicable corporate law, within twelve (12) months before or after the date this Plan is adopted by the Board. No purchase
of shares pursuant to this Plan shall occur prior to such stockholder approval. This Plan shall continue until the earlier to occur of (a) termination of this Plan by the Board (which termination may be effected by the Board at any time), (b)
issuance of all of the shares of Common Stock reserved for issuance under this Plan, or (c) ten (10) years from the adoption of this Plan by the Board. 
  
 22. Designation of Beneficiary.  
  
 (a) A participant may file a written designation of a beneficiary who is to receive any shares and cash, if any, from the
participant’s account under this Plan in the event of such participant’s death subsequent to the end of a Purchase Period but prior to delivery to him of such shares and cash. In addition, a participant may file a written designation of a
beneficiary who is to receive any cash from the participant’s account under this Plan in the event of such participant’s death prior to a Purchase Date. 
  

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 Concur Technologies, Inc. 
 1998 Employee Stock Purchase Plan 
  

 (b) Such designation of beneficiary may be changed by the participant at any time by
written notice. In the event of the death of a participant and in the absence of a beneficiary validly designated under this Plan who is living at the time of such participant’s death, the Company shall deliver such shares or cash to the
executor or administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares or cash to the spouse or to any one or
more dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 
  
 23. Conditions Upon Issuance of Shares; Limitation on Sale of Shares. Shares shall not be issued with respect to an
option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended,
the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange or automated quotation system upon which the shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance. 
  
 24. Applicable Law. The Plan shall be governed by the substantive laws (excluding the conflict of laws rules) of the State of California. 
  
 25. Amendment or Termination of this Plan. The Board may at any time amend, terminate or extend the term of this Plan, except that any such
termination cannot affect options previously granted under this Plan, nor may any amendment make any change in an option previously granted which would adversely affect the right of any participant, nor may any amendment be made without approval of
the stockholders of the Company obtained in accordance with Section 21 above within twelve (12) months of the adoption of such amendment (or earlier if required by Section 21) if such amendment would: 
  
 (a) increase the number of shares that may be issued under this Plan; or

  
 (b) change the designation of the employees (or class of
employees) eligible for participation in this Plan. 
  
 Notwithstanding the foregoing, the Board may make such amendments to the Plan as the Board determines to be advisable, if the continuation of the Plan or any Offering Period would result in financial accounting treatment for the Plan that
is different from the financial accounting treatment in effect on the date this Plan is adopted by the Board. 
  

 - 9 -Form 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:

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