Document:

<PAGE>   1
                                                                     EXHIBIT 4.3

          THE WARRANTS REPRESENTED BY THIS CERTIFICATE, AND THE
          SECURITIES ISSUABLE UPON EXERCISE OF SUCH WARRANTS, HAVE
          NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
          ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OF THE
          UNITED STATES. SUCH WARRANTS AND SECURITIES MAY NOT BE
          SOLD, ASSIGNED, EXCHANGED, HYPOTHECATED OR OTHERWISE
          TRANSFERRED IN ANY MANNER EXCEPT IN COMPLIANCE WITH
          SECTION 11 OF THE INVESTOR RELATIONS WARRANT AGREEMENT
          BY AND BETWEEN THE ISSUER AND EACH OF THE ORIGINAL
          HOLDERS OF THE WARRANTS DATED _______, 2000.

                                             WARRANT CERTIFICATE NO. IRW-_______

                                 MATRITECH, INC.

                            (ORGANIZED UNDER THE LAWS
                            OF THE STATE OF DELAWARE)

                        WARRANTS TO PURCHASE COMMON STOCK

     This certifies that, for value received, _______ (the "WARRANTHOLDER") is
the registered owner of _______ warrants (the "WARRANTS") to purchase from
Matritech, Inc. (the "COMPANY"), at any time during the period commencing at
9:00 a.m., Eastern Time, on _______, 2000 and ending at 5:00 p.m., Eastern Time,
on ________, 2005, at an initial purchase price per share of $2.50 (the "WARRANT
PRICE"), one share of Common Stock of the Company. The Warrants are subject to,
and each Warrantholder, by acceptance of this certificate, consents to all the
terms and provisions of the Warrant Agreement dated as of ________, 2000,
between the Company and the Warrantholder, pursuant to which the Warrants
evidenced hereby were issued (the "WARRANT AGREEMENT").

     The Warrants evidenced hereby may be exercised in whole or in part by
presentation of this Warrant Certificate with the Purchase Form herein duly
executed (with a signature guarantee as provided therein), and simultaneous
payment of the Warrant Price for each Warrant exercised, at the principal office
of the Company. Payment of such price shall be made at the option of each
Warrantholder in cash or by certified or cashier's check, in next day funds.

     Upon any partial exercise of the Warrants evidenced hereby, there shall be
signed and issued to the Warrantholder effecting such partial exercise a new
Warrant Certificate in respect of the Common Stock as to which the Warrants
evidenced hereby shall not have been exercised.

<PAGE>   2

These Warrants may be exchanged at the office of the Company by surrender of
this Warrant Certificate properly endorsed for one or more new Warrants of the
same aggregate number of shares of Common Stock as here evidenced by the Warrant
or Warrants exchanged. No fractional shares of Common Stock will be issued upon
the exercise of rights to purchase hereunder, but the Company shall pay the cash
value of any fraction upon the exercise of one or more Warrants. These Warrants
are transferable at the office of the Company in the manner and subject to the
limitations set forth in the Warrant Agreement.

     This Warrant Certificate does not entitle any Warrantholder to any of the
rights of a shareholder of the Company.

                                               MATRITECH, INC.

                                               By: _____________________________
                                                   Stephen Chubb
                                                   Chairman and Chief Executive
                                                    Officer

ATTEST:

------------------------------

Dated:                          , 2000
       ------------------------

<PAGE>   3

PURCHASE FORM

Matritech, Inc.
330 Nevada Street
Newton, Massachusetts 02160

     Pursuant to paragraph 3(a) of the Warrant Agreement, the undersigned hereby
irrevocably elects to exercise the right of purchase represented by this Warrant
Certificate for, and to purchase thereunder, __________ shares of Common Stock
("Common Stock") provided for therein, and requests that certificates for such
Common Stock be issued in the name of:

                       -----------------------------------
  (Please Print or Type Name(s), Address and Taxpayer Identification Number(s))

                       -----------------------------------

                       -----------------------------------

                       -----------------------------------

If this Warrant Certificate is hereby being exercised with respect to fewer than
all the Common Stock specified herein, please issue a new Warrant Certificate
for the unexercised balance of the Warrants, registered in the name of the
undersigned Warrantholder or his assignee as below indicated and delivered to
the address stated below.

Dated: _______________________

Name of Warrantholder(s)
  or Assignee(s) (Please Print):  _____________________________

                                  _____________________________

Address (Please Print): _______________________________________

               ________________________________________________

Signature(s):  ________________________________________________

               ________________________________________________

               Note: The above signature(s) must correspond exactly with the
          name(s) as written upon the face of this Warrant Certificate, without
          alteration or enlargement or any change whatever, unless these
          Warrants have been assigned.

<PAGE>   4

ASSIGNMENT
                 (To be signed only upon assignment of Warrants)

               FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto

                       -----------------------------------

                       -----------------------------------

                       -----------------------------------

     (Name(s) and Address(es) of Assignee(s) Must be Printed or Typewritten)

the within Warrants, hereby irrevocably constituting and appointing
________________________ the undersigned's attorney-in-fact to transfer said
Warrants on the books of the Company, with full power of substitution.

Dated:  __________     ___________________________________

                       ___________________________________
                      Signature(s) of Registered Holder(s)

               Note: The above signature(s) must correspond exactly with the
name(s) as written upon the face of this Warrant Certificate, without alteration
or enlargement or any change whatever.<PAGE>   1

                                                                    Exhibit 10.7

                                                August 8, 2000

PERSONAL & CONFIDENTIAL

Mr. Christopher Butler
83 Rice Road
Wayland, MA  02178

Dear Chris:

         This letter agreement (the "Agreement") confirms the agreement that we
have reached regarding your transition and severance arrangements in connection
with the termination of your employment with Servicesoft Technologies Inc. (the
"Company"). The purpose of this Agreement is to establish an amicable
arrangement for ending your employment relationship, including releasing the
Company from claims that you may have against it or any related companies,
releasing you from claims that the Company may have against you, and permitting
you to receive separation pay and other benefits and retain certain restricted
stock.

         You are entering into this Agreement voluntarily. You understand that
you are giving up your right to bring all possible legal claims against the
Company, including claims relating to your employment and termination. If you
were not to enter into this Agreement and were to bring any claims against the
Company, the Company would dispute the merits of those claims and would contend
that it acted lawfully and for good business reasons with respect to you.

         You understand that by entering into this Agreement, the Company is not
admitting in any way that it violated any legal obligation that it owed to you
or to any other person.

         With those understandings and in exchange for the promises of you and
the Company set forth below, you and the Company agree as follows:

<PAGE>   2

Mr. Chris Butler
August 8, 2000
Page 2

1.   EMPLOYMENT ARRANGEMENTS

     You and the Company acknowledge and agree that effective as of July 7, 2000
(the "Termination Date"), your employment as President and Chief Executive
Officer of the Company pursuant to the employment offer letter dated August 9,
1999 (collectively, "Employment Letter") by and between you and the Company,
shall be terminated.

2.   PAY

     (a)  Salary

     The Company shall pay your current salary to you in twice monthly
installments of $8,333.33 through the Termination Date. The Company shall also
pay you for any accrued but unused vacation pay as of the Termination Date.

     (b)  Severance Pay

     The Company shall continue your current annual salary of $200,000 for a
period of six (6) months commencing on the Termination Date (the "Severance
Period"), payable on the Company's regular bi-monthly payroll dates. Such
severance pay shall be inclusive of any pay in lieu of notice to which you may
be entitled.

     (c)  Bonus

     The parties hereby acknowledge and agree that the Company shall pay you a
performance bonus for second quarter of 2000 as provided in the Fiscal Year 2000
Executive Compensation Plan.

3.   BENEFITS

     By signing this Agreement, you are exercising your right to continue
receiving group medical and dental insurance benefits to the extent authorized
by and consistent with 29 U.S.C. ss. 1161 ET SEQ. (commonly known as "COBRA")
from and after the Termination Date. Your rights and obligations under COBRA are
generally described in the Company's notice to you concerning COBRA rights and
obligations. Notwithstanding the terms of the COBRA notice, during the Severance
Period the Company will continue to pay on your behalf all medical and dental
insurance premiums, provided that you otherwise remain eligible for COBRA
coverage.

4.   RESTRICTED STOCK

     The Company hereby notifies you of the exercise of its Repurchase Right
under Section 3.1 of a certain Stock Restriction Agreement by and between you
and the Company (the "Stock Restriction Agreement") to repurchase 520,938.625
Shares issued under that Stock

<PAGE>   3

Mr. Chris Butler
August 8, 2000
Page 3

Purchase Agreement for a per share purchase price of $1.00; provided, however,
that the Company shall retain the right to repurchase an additional 52,094
Shares on the same terms provided herein prior to the end of the Severance
Period if and only if you are in material breach of your obligations hereunder.
Such purchase price shall be applied by the Company in partial prepayment of a
certain Promissory Note in the initial principal amount of $833,502, which was
issued by you in consideration for your original purchase of the Shares. Such
prepayment shall discharge a like amount of the principal balance of the
Promissory Note together with any accrued interest on such discharged principal
balance. The restrictions on transfer set forth in Section 4 of the Stock
Restriction Agreement shall continue to apply to the Shares retained by you.

5.   BOARD OF DIRECTORS; OTHER POSITIONS

     You hereby resign as a Director on the Company's Board of Directors and as
a director and officer of any of the Company's subsidiaries effective as of the
Termination Date. The parties agree that such resignation shall be effective
without any further notice or action on your part.

6.   GENERAL RELEASES OF CLAIMS

     (a)  General Release of Claims by You

     1.   For good and valuable consideration, the sufficiency of which is
hereby acknowledged, you hereby irrevocably and unconditionally release, acquit
and forever discharge the Company, its predecessors, subsidiaries, successors,
affiliates, and assigns, and the directors, officers, employees, shareholders,
members and representatives of any of the foregoing, and all persons acting on
behalf or through any of the foregoing (any and all of whom or which are
hereinafter referred to as "Servicesoft"), from any and all charges, complaints,
claims, liabilities, obligations, promises, agreements, controversies, damages,
actions, causes of action, suits, rights, demands, costs, losses, debts and
expenses (including attorney's fees and costs actually incurred), of any nature
whatsoever, known or unknown (collectively, "Claims"), that you now have, own,
or hold, or claim to have, own, or hold, or that you at any time had, owned, or
held, or claimed to have had, owned, or held against Servicesoft, including
Claims relating to your employment and termination of employment. This general
release of Claims includes, without implication of limitation, the complete
release of all Claims of breach of express or implied contract; all Claims
arising under the Employment Letter; all Claims of wrongful termination of
employment whether in contract or tort; all Claims of intentional, reckless, or
negligent infliction of emotional distress; all Claims of breach of any express
or implied covenant of employment, including the covenant of good faith and fair
dealing; all Claims of interference with contractual or advantageous relations,
whether prospective or existing; all Claims of deceit or misrepresentation; all
Claims of discrimination under state or federal law, including, without
implication of limitation, Tide VII of the Civil Rights Act of 1964, 42 U.S.C.
2000e et seq., as amended, the Age Discrimination in Employment Act of 1967, 29
U.S.C. ss. 621 et seq., as amended, and Chapter 151B of the

<PAGE>   4

Mr. Chris Butler
August 8, 2000
Page 4

Massachusetts General Laws; all Claims of defamation or damage to reputation;
all Claims for reinstatement; all Claims for punitive or emotional distress
damages; all Claims for wages, bonuses, severance, back or front pay or other
forms of compensation and all Claims for attorney's fees and costs. This general
release of Claims shall not be construed to include a release of Claims that
arise from the Company's obligations under this Agreement or any rights of
indemnification to which you may be entitled under the Company's Certificate of
Incorporation or By-laws. With respect to the Claims you are waiving herein, you
are waiving your right to receive money or any other relief in any action
instituted on your behalf by any other person, entity or government agency. You
further agree that if any agency or court assumes jurisdiction over any
complaint or charge on your behalf against Servicesoft, you will request the
immediate dismissal of the matter.

     (b)  General Release of Claims by the Company

     For good and valuable consideration, the sufficiency of which is hereby
acknowledged, the Company hereby irrevocably and unconditionally releases,
acquits and forever discharges you from any and all Claims that the Company now
has, owns, or holds or claims to have, own, or hold or that the Company at any
time had, owned, or held, or claimed to have had, owned, or held against you as
a result of good faith acts or omissions undertaken in the best interests of the
Company. This general release of Claims includes, without implication of
limitation, a release of all Claims related to your performance of your
responsibilities as an employee of the Company.

7.   NONCOMPETE AGREEMENT

     Notwithstanding anything in this Agreement to the contrary, you shall
continue to be subject to the Employee Agreement between you and the Company
(the "Noncompete Agreement"). Without otherwise limiting the scope of the
Noncompete Agreement, you acknowledge and agree that you shall be subject to the
following obligations during the period from the date hereof through the first
anniversary of the Termination Date:

     (a)  You will not engage, directly or indirectly (including as an owner,
manager, stockholder, consultant, director, officer or employee) in a
self-employment business or work for any enterprise which manufactures,
assembles or markets products or services which compete with those of the
Company without the express written authorization of the Company. The Company
agrees that this post-termination restriction does not pertain to work you may
engage in that does not relate to products or services being developed or
marketed to maintenance and service organizations. Notwithstanding the
foregoing, the Company agrees that you may own stock of a corporation that
provides goods or services which are competitive with goods or services provided
(or proposed to be provided) by the Company, if: (i) such stock is traded on a
regular basis on regular securities exchanges or in over-the-counter markets;
(ii) you promptly provide written notice to the Company of your ownership of
such stock; and (iii) the amount of such stock owned by you does not constitute
more than two

<PAGE>   5

Mr. Chris Butler
August 8, 2000
Page 5

percent (2%) of the outstanding stock of any such corporation.

     (b)  You shall not solicit, induce, attempt to hire, or hire any employee
of the Company (or any person who may have been employed by the Company during
any portion of the six (6) month period immediately preceding the Termination
Date), or assist in such hiring by any other person or business entity or
encourage any such employee to terminate his or her employment with the Company.

     (c)  Induce or attempt to induce any of the Company's customers to reduce
or curtail their business with the Company or terminate their relationship with
the Company.

8.   NONDISPARAGEMENT

     The Company agrees not to make any statements that disparage you and you
agree not to make any statements that disparage the Company or any of its
products, services, employees, officers or directors. Notwithstanding the
foregoing, statements made in the course of sworn testimony in legal proceedings
or other statements required by law shall not be subject to this Section 8.

9.   TAX DEDUCTIONS AND REPORTING

     The Company shall reduce payments made to you pursuant to this Agreement by
deductions and withholdings that it reasonably determines to be required for tax
purposes and the Company shall make such tax-related reporting that it
reasonably determines to be required with respect to consideration provided
pursuant to this Agreement.

10.  NOTICES, ACKNOWLEDGMENTS AND OTHER TERMS

     You are advised to consult with an attorney before signing this Agreement.

     This Agreement is the entire agreement between you and the Company, and all
previous agreements, or promises between you and the Company are superseded,
null, and void, except your Noncompete Agreement.

     You acknowledge that you have been given the opportunity, if you so
desired, to consider this Agreement for twenty-one (21) days before executing
it. If not signed by you and returned to the Company so that it is received by
the Company within twenty-one (21) days of your receipt of this Agreement, this
Agreement will not be valid. In the event that you execute and return this
Agreement within less than twenty-one (21) days of the date of its delivery to
you, you acknowledge that such decision was entirely voluntary and that you had
the opportunity to consider this letter agreement for the entire twenty-one (21)
day period. The Company acknowledges that for a period of seven (7) days from
the date of the execution of this Agreement, you shall retain the right to
revoke this Agreement by written notice that the Company receives before the end
of such period, and that this Agreement shall not become

<PAGE>   6

Mr. Chris Butler
August 8, 2000
Page 6

effective or enforceable until the expiration of such revocation period. The
"Effective Date" of this Agreement shall be the date which is seven (7) days
from the date of execution of this Agreement.

     By signing this Agreement, you acknowledge that you are doing so
voluntarily. You also acknowledge that you are not relying on any
representations by any representative of the Company concerning the meaning of
any aspect of this Agreement.

     In the event of any dispute, this Agreement will be construed as a whole,
will be interpreted in accordance with its fair meaning, and will not be
construed strictly for or against either you or the Company. The law of
Massachusetts will govern any dispute about this Agreement, including any
interpretation or enforcement of this Agreement, without giving effect to the
conflict of laws provisions of Massachusetts law. In the event that any
provision or portion of a provision of this Agreement shall be determined to be
unenforceable, the remainder of this Agreement shall be enforced to the fullest
extent possible as if such provision or portion of a provision were not
included. This Agreement may be modified only by a written agreement signed by
you and an authorized representative of the Company.

     If you agree to these terms, please sign and date below and return this
Agreement to the Company within the time limitation set forth above.

     This Agreement may be executed simultaneously in any number of
counterparts, each of which when so executed and delivered shall be taken to be
an original; but such counterparts shall together constitute but one and the
same document.

                                       Sincerely,

                                       SERVICESOFT TECHNOLOGIES INC.

                                       By: /s/ Daniel J. Kossmann
                                           -------------------------------------
                                           Name:  Daniel J. Kossmann
                                           Title: CFO

ACCEPTED AND AGREED:

/s/ Chris Butler                        August 10, 2000
----------------------------------      ----------------------------------------
Chris Butler                            Date

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