Document:

<PAGE>   1
                                                                    Exhibit 10.8

Confidential portions of this Exhibit have been omitted and are identified by
square brackets ([ ]) and three asterisks (***). Such material has been
separately filed with the Securities and Exchange Commission pursuant to a
request for confidential treatment.

Solution Developer Marketing Partnerships
--------------------------------------------------------------------------------

                         Software Remarketing Agreement

This is a Software Remarketing Agreement ("SRA") among ServiceWare, Inc. ("you")
and Tivoli Systems Inc., a subsidiary of International Business Machines
Corporation ("IBM"), collectively Tivoli and IBM are referred to as
"TIVOLI/IBM". The complete Agreement between the parties consists of this SRA
and the following Attachments and Exhibits:

o     Exhibit - Your End User License
o     Exhibit - Your Outsourcer License
o     Exhibit - Your Trade Mark Guidelines
o     Exhibit - Your Commercial Price List
o     Attachment - Certificate of Originality
o     Attachment - Tivoli Development License Agreement
o     Attachment - Public Sector Terms

If there is a conflict among the terms of this SRA and any of its Attachments,
the terms of the SRA prevail unless the Attachment expressly indicates that
particular terms within the Attachment prevail.

The following are related agreements between the parties. Related agreements
require the signatures of the parties, and in some cases third parties.

o     Confidential Disclosure Agreement No. CDA9903540

This Agreement replaces all prior oral or written communications between the
parties relating to the subject matter hereof. Both parties accept the terms of
this Agreement and identified Attachments and Exhibits by signing below. Once
signed, any reproduction of this Agreement made by reliable means (for example,
photocopy or facsimile) is considered an original, unless prohibited by local
law. This Agreement may only be modified by a writing signed by both parties.

AGREED TO:                              AGREED TO:
Tivoli Systems, Inc.                    ServiceWare, Incorporated

By: /s/ Jodie Slifka                    By: /s/ Rajiv Enand

Print Name JODIE SLIFKA                 Print Name RAJIV ENAND

Print Title CONTRACT MANAGER            Print Title CEO

Date 8/3/99                             Date 8/3/99

Any notice required or permitted under this Agreement will be sent to the
representative named below, and shall be effective upon receipt as demonstrated
by reliable written confirmation (for example, certified mail receipt, courier
receipt, facsimile receipt confirmation sheet.) Each party will notify the other
if their representative changes.

Tivoli's Representative                 Your Representative
Tivoli/IBM Systems, Inc.                ServiceWare, Inc.
9442 Capital of Texas Hwy., North       333 Allegheny Avenue
Austin, Texas 78758                     Oakmont, Pennsylvania 16139
Attention: Jodie Slifka                 Attention: Jeanne Kohser
(512) 438-1276                          (412) 826-1158, Ext. 389

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<PAGE>   2
1. Definitions

Capitalized terms in this Agreement have the following meanings:

ASA means Content Subscription(s) for providing maintenance support and all
product updates for content products.

Code is computer programming code including both Object Code and Source Code:

a) Object Code is computer programming code in substantially binary form, and
includes header files of the type necessary for use or interoperation with other
computer programs. It is directly executable by a computer after processing or
linking, but without compilation or assembly.

b) Source Code is computer programming code that may be displayed in a form
readable and understandable by a programmer of ordinary skill. It includes
related source code level system documentation, comments and procedural code and
all "Error" corrections and "Enhancements". Source Code does not include Object
Code.

Content Subscription means the knowledge-based product delivered on CD,
including error corrections and other updates, additions or modifications to the
Product, new knowledge base content, modifications to existing knowledge base
content, deletions of obsolete content and modifications to the structure and/or
format of the knowledge base.

"Derivative Work" means a work that is based on an underlying work and that
would be a copyright infringement if prepared without the authorization of the
copyright owner of the underlying work.

"End-User" means any party who licenses the Product(s) for its internal use and
benefit. End-Users may not redistribute the Product or use it to provide
external support to other entities.

Enhancements are changes or additions to the Products:

a) Basic Enhancements are all Enhancements, other than Major Enhancements,
including those that support new releases of operating systems and devices, and
correct Errors.

b) Major Enhancements provide substantial additional value and are normally
offered to customers for an additional charge (e.g., upgrades).

Error is a) any mistake, problem or defect that causes a Product to malfunction
or fail to meet its specifications; or b) any incorrect or incomplete statement
or diagram in the related documentation that causes a Product to be materially
inaccurate or inadequate.

Equal Units Standard means that when TIVOLIi/IBM distributes a Product(s) or
Content Subscription(s) to new or existing TIVOLIi/IBM customers, the number of
Units of the ServiceWare Product(s) or Content Subscriptions distributed shall
be EQUAL to the number of Units of the TIVOLIi/IBM Product(s) when ServiceWare
Products or Content Subscription is ordered by the End User.

Internationalization shall mean that a Product has the ability to implement
national functions and the facility to be translated to other languages. This
Includes three (3) categories which correspond to characteristics of various
languages: (a) single byte character set (SBCS), left-to-right languages (U.S.
English, German, Greek, etc.); (b) single byte bi-directional languages (Hebrew,
Arabic); and (c) double byte character set (DBCS) or multi-byte character set
(MBCS) languages (Japanese, Korean, simplified and traditional Chinese). The
Products shall avoid hardcoding language dependent codepages and character sets.

Maintenance Support is the Service provided when a customer identifies an Error.
There are three levels:

a) Level 1 is the Service provided in response to the customer's initial contact
identifying an Error.

b) Level 2 is the Service provided to reproduce and attempt to isolate the
Error, or to find that the Service provider cannot reproduce the Error.

c) Level 3 is the Service provided to isolate the Error at the component level
of the Products. The Service provider distributes the Error correction or
circumvention, or gives notice if no correction or circumvention is found.

Marketing Materials are Product brochures, manuals, technical specification
sheets, demonstration presentations, and other marketing sales literature
provided by you to TIVOLI/IBM for TIVOLI/IBM's use in performance of marketing
activities. TIVOLI/IBM's use of Marketing Materials may include transmission of
them through electronic marketing services.

National Language Support (NLS) shall mean that the Products have the ability to
enter, store, process, retrieve, distribute, display and print character data in
the foreign language of choice. NLS includes Internationalization
characteristics.

New Products include a) all Major Enhancements to your Products; or b) any of
your other software products that render your existing Products down level or
obsolete.

Outsourcer means a company that uses the Product to provide help desk services
to a third party for products other than those sold to that third party by the
Outsourcer, in exchange for fees or other compensation.

                                      -2-
<PAGE>   3

Products are your computer programs in Object Code form, including content and
its updates, documentation, related materials, maintenance modifications, Basic
Enhancements and any security devices or "locks" that are listed in this
Agreement, in TIVOLI/IBM format.

Services are activities associated with the Products, such as Maintenance
Support. Services includes all three levels of Maintenance Support unless stated
otherwise.

Subsidiary is an entity that is owned or controlled directly or indirectly (by
more than 50% of its voting stock, or if not voting stock, decision-making
power) by you or TIVOLI/IBM.

TIVOLI/IBM Products shall mean those TIVOLIi/IBM Service Desk products for which
ServiceWare products have been formatted.

TIVOLI/IBM Revenue is the revenue (excluding local taxes) due TIVOLI/IBM for
Products and/or Services from the effective date of this Agreement.

"Tools" means not commercially available software, and their Externals, required
for the development, maintenance or implementation of a software Deliverable.

2. Territory

The Territory for this Agreement shall consist of all the countries in the world
in which TIVOLI/IBM is directly or indirectly conducting business, except in
Japan. TIVOLI/IBM may conduct business in Japan under a direct agreement
through:

               Hidekuni Ogasawara
               General Manager of Department
               Network Services Center
               Sumitomo Metal Systems Development CO., LTD.
               2-18 Ikenohata 1-Chome Taito-ku Tokyo 110-0008 JAPAN
               PHONE: +81-3-5815-7273
               FAX: +81-3-5815-7277

3. License Grants

3.1 To enable TIVOLI/IBM to effectively market your Products and Services, as
identified in Section 6.2, to customers, you grant TIVOLI/IBM the non-exclusive
right and license to use, copy, reproduce, display, perform, market and
distribute, in any medium or distribution technology whatsoever, whether known
or unknown, the Products, Services, trademarks and trade names, and associated
Marketing Materials, to customers subject to the terms of this Agreement
including the Equal Units Standard as defined herein. Each time TIVOLI/IBM sells
a Product to a customer, TIVOLI/IBM will pay you a royalty in accordance with
the terms stated in this Agreement.

3.2 The license grant in Subsection 3.1 above allows TIVOLI/IBM to resell and
distribute your Products, Services and Marketing Materials to customers under
the terms of your end user license agreement ("End User License") or
("Outsourcer License") as applicable, demonstrate the Products, allow customers
to evaluate them free of charge (limited to 90 days of trial use subject to
TIVOLI/IBM's Evaluation Agreement), promote the Products, train TIVOLI/IBM
employees on the Products, and in some cases provide Maintenance Support or
additional services for the Products.

3.3 Source Code Release:

a.)   in the event that one of the following events ("Trigger Events") occurs
      and remains uncured for 30 days following notice from Tivoli/IBM to you,
      Tivoli/IBM shall have the rights in the Source Code for the ServiceWare
      Products described in Section 3.3(c) below:

      i)    you or your successors or representatives refuses, fails or is
            unable to perform any obligation in the Agreement which requires
            Source Code access to complete,

      ii)   you or your successors or representatives rejects or terminates the
            Agreement for reasons other than Tivoli/IBM's breach. This includes
            rejection or termination under bankruptcy or similar laws;

      iii)  you or your successors or representatives fails to accept the
            Agreement within 15 days of filing a bankruptcy or similar petition;

      iv)   you or your successors or representatives liquidates or shuts down
            most of its business operations relating to the Agreement; or

      v)    any sale, assignment or foreclosure of or on you or your successors
            or representatives' assets required to perform its obligations under
            the Agreement.

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<PAGE>   4

b.) Tivoli/IBM will:

      i)    use the Source Code only to support the licenses and rights granted
            under the Agreement;

      ii)   own any Derivative Works of the Source Code that it creates;

      iii)  pay you the royalties specified in the Agreement to maintain its
            rights to the Source Code; and

      iv)   treat Source Code according to the Tivoli/IBM /ServiceWare
            confidentiality agreement.

c.) You grant Tivoli/IBM, its successors and assigns:

      i)    all right and title to the media containing Source Code;

      ii)   a nonexclusive, worldwide copyright license to use, execute,
            reproduce, display, perform, distribute and prepare Derivative Works
            of, all Source Code and their Derivative Works. This license also
            applies to associated audio and visual works. Tivoli/IBM may
            authorize others to do any of the above; and

      iii)  an Irrevocable, nonexclusive, worldwide, paid-up license under any
            patents and patent applications that are 1) owned or licensable by
            you now or in the future and 2) required to make, have made, use and
            have used Source Code and Tools. This license applies to the Source
            Code or their Derivative Works operating alone or in combination
            with equipment or software.

If Source Code is released to Tivoli/IBM, Tivoli/IBM retains its rights to the
Source Code as provided in the Agreement. This includes Tivoli/IBM's right to
use your trademarks and product names.

3.4 In certain situations or in certain geographies it may be advantageous to
allow TIVOLI/IBM to provide the Products and Services to customers under an
TIVOLI/IBM end user license agreement. In such situations, TIVOLI/IBM will, on a
case-by-case basis, obtain your authorization to sublicense the Products to
customers under the terms of an TIVOLI/IBM end user license agreement.
TIVOLI/IBM is responsible for all licensing terms offered to its customers when
TIVOLI/IBM sublicenses the Products under its end user license. Hereafter, every
reference in this Agreement regarding TIVOLI/IBM's right to license the Products
shall also include TIVOLI/IBM's right to sublicense the Products.

3.5 You acknowledge that licensees of the Products, whether obtained from
TIVOLI/IBM, you or a third party, may retain TIVOLI/IBM to perform outsourcing
services on their behalf. Notwithstanding any other provision of this Agreement
or of any other license agreement, TIVOLI/IBM, when providing outsourcing
services to licensees of the Products, will not owe you a fee for the
outsourcing a license to such Products. In addition, TIVOLI/IBM will not owe you
a fee to transfer the applicable Products to an TIVOLI/IBM or third party
computer system which is of like configuration as the computer system for which
the Products were licensed for outsourcing purposes. The Products will only be
used on behalf of the licensee. Upon expiration or termination of the agreement
to provide outsourcing services to the licensee, TIVOLI/IBM's right to use the
Products will terminate.

3.6 TIVOLI/IBM customers may include agencies or other units of a government, or
third parties under contract with a government ("Public Sector"). In the event a
Public Sector customer requires modifications to your End User License
Agreement, you agree to negotiate in good faith such requested modifications
with TIVOLI/IBM and the Public Sector customer, including the possibility of
authorizing TIVOLI/IBM to become the licensor of the Products.

3.7 TIVOLI/IBM customers may include agencies or other units of a federal
government, or third parties under contract with a federal government ("Public
Sector"). In the event TIVOLI/IBM desires to market your Products to Public
Sector customers, the terms and conditions in the "Public Sector Attachment"
(attached) shall be considered part of this Agreement.

3.8 You hereby grant TIVOLI/IBM the right and license to use the Products for
internal productive use, excluding internal help desk environments, which
includes the ability to: (a) use, store, transmit, execute, display or merge the
Products with a computer system; (b) use the Products and documentation provided
with the Products in support of the use or the Products; and (c) make a copy of
the Products and documentation for archival purposes. TIVOLI/IBM's internal use
of the Products shall be governed by the terms of this Agreement, the terms of
your end user license agreement are specifically excluded.

3.9 You warrant the accuracy of all statements in the attached completed
Certificate of Originality. You agree to complete a new Certificate of
Originality before adding any New Products to this Agreement.

3.10 Except for the internal use license granted to TIVOLI/IBM in this Section,
TIVOLI/IBM may perform any of its rights, licenses and obligations under this
Agreement through Subsidiaries, subcontractors, and other companies affiliated
with TIVOLI/IBM, such as TIVOLI/IBM Business Partners. The use of such entities
by TIVOLI/IBM does not relieve it of its obligations under this Agreement. This
Agreement does not grant TIVOLI/IBM or any such entitles any ownership to any of
the copyright rights in the Products.

4. Your Responsibilities

4.1 License Agreement: Except in sublicensing situations, TIVOLI/IBM will
license the Products to customers under the terms of your end user license
agreement (your "License"). TIVOLI/IBM will obtain the customer's signature on
your License, if their signature is required. TIVOLI/IBM is not a party to your
License and does not assume any obligation for violations of it. You agree to
modify your License, if necessary, to comply with the terms and conditions of
this Agreement. In the event TIVOLI/IBM.

                                      -4-
<PAGE>   5

reasonably requests that you modify your License to comply with the law of a
country in the Territory, you agree to 1) consider such a request on a timely
basis and 2) not unreasonably withhold your consent to such changes. In
addition, you agree to provide a reasonable number of copies of your License to
TIVOLI/IBM at no additional charge, written in the local language(s) of each
country in the Territory when required by local law or when reasonably requested
by TIVOLI/IBM. The terms of this Agreement, including its Attachments, and your
License provide specific legal rights; however, other rights may apply or may
vary from jurisdiction to jurisdiction.

4.2 Product Source Code: You will deliver to TIVOLI/IBM: (i) one complete copy
of the software source code, each Enhanced version of the Products, all Tools,
and updates to Tools used for the integration of the Products and TIVOLI/IBM
Products described herein, as well as a complete list of all commercially
available software required for the development, maintenance or implementation
of such software, including updates to the list as soon as practicable.

4.3 Product Masters: You agree to provide to TIVOLI/IBM within 15 days of
signing this Agreement, three Gold Master copies of each Product and updates in
TIVOLI/IBM format in a form suitable for reproduction, including all
demonstration, documentation, packaging and promotional materials. TIVOLI/IBM
will provide your branding on the CD packaging in accordance with the guidelines
identified in Attachment hereto.

4.4 New Products: You represent that the Products available to TIVOLI/IBM under
this Agreement are always the most current release or version that is available
to your customers. If you make New Products available to your customers you will
offer such New Products to TIVOLI/IBM under terms and pricing to be agreed to in
writing. You will give TIVOLI/IBM at least four months notice prior to
withdrawing any Product (including any version) from marketing or support.

4.5 Product Returns: In the event a customer returns a Product to TIVOLI/IBM
within a reasonable period of time for any reason whatsoever, and TIVOLI/IBM
refunds the customer for the amount paid for the Product, you agree that (a)
TIVOLI/IBM may deduct the royalty amount paid to you for the returned Product
from the next scheduled royalty payment, or (b) you agree to repay the
applicable royalty amount per TIVOLI/IBM's instructions.

4.6 Marketing Materials: You agree to provide to TIVOLI/IBM at no additional
charge, a reasonable number of copies of the Marketing Materials related to the
Products in the local language of each country in the Territory if such
translations should become available. You authorize TIVOLI/IBM to alter the
Marketing Materials to indicate that TIVOLI/IBM has the authority to market,
price, license and provide services for the Products. You also agree to allow
TIVOLI/IBM to create and distribute a reasonable number of copies of your
Products for demonstration purposes to its sales force and distribution
channels, as provided for in this Agreement.

4.7 Product Support: You agree to offer warranty and Maintenance Support
Services to TIVOLI/IBM customers that are at least as favorable as those you
generally offer to your own customers for the Products. This offer shall be
available to TIVOLI/IBM customers during the term of this Agreement and for at
least one year after delivery of each Product licensed to an TIVOLI/IBM customer
under your License. If a Product does not comply with its warranties, you agree
to correct the problem and/or Error without charge and in a timely manner. If
you are unable after such efforts to correct the problem and/or Error, you agree
to replace or refund the money for the Products not meeting your warranty.
TIVOLI/IBM will either return the defective Products to you, or destroy them, at
your direction.

4.8 Product Support: As TIVOLI/IBM shall provide Level 1 and Level 2 Maintenance
Support to its customers of the Products who have purchased Maintenance Support
from TIVOLI/IBM, you agree to provide assistance to TIVOLI/IBM's end user
support personnel during normal business hours, and accept calls from TIVOLI/IBM
pertaining to Level 3 Maintenance Support matters. TIVOLI/IBM will provide
ServiceWare with the information that has been collected, such as a detailed
description of the problem, customer contact information, TIVOLI/IBM's attempts
at resolution, and TIVOLI/IBM's problem ticket number. It is understood and
agreed that ServiceWare will provide Level 3 Maintenance Support.

4.9 Ongoing Support: When TIVOLI/IBM offers Maintenance Support for the Products
to customers, you agree to provide Maintenance Support for the Products to
TIVOLI/IBM so long as TIVOLI/IBM continues to pay you a royalty for your
Services, even if this Agreement has been terminated.

4.10 Market Support: You agree to provide the following market support services
to TIVOLI/IBM as reasonably requested during the term of this Agreement, at no
additional charge. All of your personnel providing market support will have
sufficient Product knowledge and skills to adequately perform the support
services requested.

-     Marketing Events: You agree to participate in trade shows, executive
      conferences, and other marketing events, on dates and at locations
      mutually agreed to by the parties.

-     Telephone Support: You agree to provide telephone consulting services
      during your normal business hours to address technical questions related
      to demonstration, marketing, operation, use and installation of the
      Products.

-     Pre-sales Support: You agree to provide pre-sales technical support
      services and demonstration assistance for the Products to TIVOLI/IBM on
      dates and at locations mutually agreed to by the parties.

                                      -5-
<PAGE>   6

4.11 Training: During each 12-month period during the term of this Agreement,
you shall conduct marketing/technical training classes related to the
demonstration, marketing, installation and use of the Products if requested by
Tivoli as agreed to in the Marketing Plan. You agree to provide the training at
no charge to TIVOLI/IBM. All training shall be conducted on dates and at
locations mutually agreed to by the parties.

5. TIVOLI/IBM's Responsibilities:

5.1 Marketing Activities: Both parties agree they will use reasonable efforts to
develop and implement a market support plan for the Products within 90 days. The
market support plan may include, at TIVOLI/IBM's sole discretion, the following
marketing activities for the Products:

o     identify and qualify customers for the Products

o     demonstrate the Products to customers;

o     develop sales proposals;

o     advertise your Products in various trade magazines and other publications;

o     include your Products in trade shows, executive conferences, and other
      marketing events;

o     implement telemarketing or direct mail campaigns;

o     electronically publish information about your Products.

5.2 Pre-Requisition means TIVOLI/IBM will provide information to the TIVOLI/IBM
Sales teams about the value added by using the ServiceWare product in
conjunction with TIVOLI/IBM products. TIVOLI/IBM will also recommend that
TIVOLI/IBM sales representatives sell the designated ServiceWare product each
time a new customer or, when appropriate, an existing customer purchases the
identified TIVOLI/IBM Product. ServiceWare Products will be announced via
TIVOLI/IBM's usual announcement processes including an RFA (IBM) and a Sales
Flash (Tivoli) to the Sales force. For the purpose of clarification, there is no
intent on TIVOLI/IBM's part to mandate this requirement to either the customers
or the sales force through forced distribution with the identified TIVOLI/IBM
Product(s).

5.3 Other Activities: TIVOLI/IBM is responsible for licensing, pricing,
ordering, manufacturing and delivering, Level 1 and Level 2 Maintenance Support,
first year mandatory Content Subscription services and billing and accounts
receivable activities rotated to the Products it sells to customers.

5.4 Formatting for TIVOLI/IBM Products: TIVOLI/IBM shall provide ServiceWare
Development team two copies of the Tivoli Service Desk products and updates for
the purpose of creating and maintaining the TIVOLI/IBM format of the Products.
This toolkit license is provided at no cost to ServiceWare under the terms and
conditions of the Development License Agreement attached herein.

6. Royalties

6.1 TIVOLI/IBM will pay you the royalty amount set forth in the following table
("TIVOLI/IBM Rate") for each Product TIVOLI/IBM provides to a customer.
TIVOLI/IBM is not obligated to license any minimum quantities. TIVOLI/IBM
payments to you will be at the TIVOLI/IBM Rate subject to any withholding tax
requirement and/or any applicable transaction based taxes (including, without
limitation, sales and value-add taxes), and shall be net of refunds and
adjustments reasonably granted to customers. TIVOLI/IBM will not pay you any
other payments related to the Products (for example, under any TIVOLI/IBM
business partner Agreement). The royalty payments set forth in this Section
fully compensate you for your performance under, and for the rights and licenses
granted in, this Agreement TIVOLI/IBM shall have full freedom and flexibility in
pricing your Products.

6.2 For the term of April 1, 1999 through and including the announcement of
release of ServiceWare Edition 15, TIVOLI/IBM shall pay you royalties based on
the rates identified in the table below. These rates will terminate upon the
TIVOLI/IBM announcement date of Edition 15, but shall be extended to any
outstanding orders or quotes identified by the product numbers of 5697-KNS,
5697-KR3 and 5697-KDS as of the announcement date.

[***]

6.3 Upon TIVOLI/IBM's announcement of Edition 15, annually, three months
following the end of the prior calendar year, TIVOLI/IBM will calculate the
aggregate amount of all royalties that would have been payable to you in such
prior calendar year if the applicable Minimum TIVOLI/IBM Rate (i.e., floor),
identified in the table below, per license had been used to calculate quarterly
payments, instead of the applicable percent of TIVOLI/IBM revenue specified
herein. If the aggregate amount of

                                      -6-
<PAGE>   7

royalties paid to you for such calendar year was less than the floor amount,
TIVOLI/IBM will pay you the difference, as an annual minimum royalty adjustment,
with the next scheduled payment.

[***]

6.4 In no event will ServiceWare receive less than [***] in cumulative annual
payments for the term of this Agreement.

6.5 In the event the annual commitment level exceeds a cumulative amount of
[***] over the term of this agreement, TIVOLI/IBM will pay you at the rate
equal to an [***] discount from your list price for products as indicated in the
table below:

[***]

6.6 In the event TIVOLI/IBM finds it necessary to offer a customer a special
discount, TIVOLI/IBM may request a lower TIVOLI/IBM Rate for such transaction.
If you agree to such lower TIVOLI/IBM Rate, you will provide to TIVOLI/IBM in
writing (to include either electronic mail or a facsimile transmission) your
approval to adjust the TIVOLI/IBM Rate.

6.7 You agree to give TIVOLI/IBM the benefit of any published list price
decreases you offer for Products not yet purchased by customers from the date a
price decrease becomes effective. In the event TIVOLI/IBM finds it necessary to
reduce its published list price for the Products, TIVOLI/IBM may request a lower
TIVOLI/IBM Rate. If you agree to any such lower TIVOLI/IBM Rate, a letter
amendment specifying such lower TIVOLI/IBM Rate and the effective date will be
signed by the parties.

6.8 You agree to give TIVOLI/IBM 120 days prior written notice of any changes to
your list price for the Products. The parties will sign an amendment to this
Agreement indicating the new TIVOLI/IBM Rate based on the same percentage of
your list price as currently established under this Agreement. The parties agree
that any increases to your list prices will not increase the TIVOLI/IBM Rate
more than once per calendar year; however, any decreases to your list price
during the calendar year will have a subsequent change to the TIVOLI/IBM Rate.
The parties also agree that any proposals submitted by TIVOLI/IBM to customers
before the effective date of any TIVOLI/IBM Rate increase shall be based on the
lower TIVOLI/IBM Rate.

6.9 TIVOLI/IBM has no royalty obligation for Products used for the following
purposes:

o     marketing, demonstrations, customer evaluations and trial use;

o     Product training and education;

o     Product maintenance and support;

                                      -7-
<PAGE>   8

o     backup and archival purposes;

o     a licensed customer's installation and use of a second copy of the
      products at home or on a mobile computer, provided the products are not
      active on more than one machine at the same time;

o     Basic Enhancements and Error corrections; or

o     warranty replacement copies of the Products

6.10 Royalties are paid against revenue recorded by TIVOLI/IBM in a royalty
payment quarter. A royalty payment quarter begins on the first business day of
the calendar quarter and ends on the last business day of the calendar quarter
(e.g., January 1 through March 31). TIVOLI/IBM shall make payments to you 45
days following the close of the royalty payment quarter in which TIVOLI/IBM
records that a customer has acquired a royalty bearing license and recognizes
revenue for the Product and/or Service. All payments to you shall be net of
refunds, adjustments, and if applicable, taxes. Payment will be accompanied by a
summary of the basis for determining its amount and shall identify the relevant
customer by number. TIVOLI/IBM will maintain relevant records to support the
payment amount for a period of two (2) years from the date of the related
payment. Payment will be made by wither electronic funds transfer, or by mail.
Payment is deemed to be made on the date of electronic funds transfer, or on the
date of mailing, as applicable. All payments will be made in U.S. dollars.
Payments based on foreign revenue will be converted to U.S. dollars at the rate
of exchange published by Reuters Financial Service on approximately the same day
each quarter.

7.Warranty

You represent and warrant on an ongoing basis that

o     (a) you have sufficient rights to the Products (including associated marks
      and names) to grant TIVOLI/IBM the rights specified in this Agreement, and
      to grant customers the rights specified in your End User License agreement

o     (b) the Products conform to their published specifications and any written
      representations made by you to TIVOLI/IBM or customers;

o     (c) the Products (including but not limited to Marketing Materials) do not
      infringe any patent, copyright, trademark or trade secret or any other
      intellectual property rights of any third party, and do not contain any
      virus or other harmful code;

o     (d) at the time of signing this Agreement, you are not aware of any claims
      against you regarding the Products;

o     (e) you comply with any and all laws and/or regulations, Including but not
      limited to, export laws and/or regulations regarding (i) the
      classification of the Products; and (ii) distribution of encrypted code
      contained in the Products;

o     (f) the Products, when used in accordance with their associated
      documentation, are capable of correctly processing, providing and/or
      receiving date data within and between the twentieth and twenty-first
      centuries, provided that all products (for example, hardware, software and
      firmware) used with the Products properly exchange accurate date data with
      the Products; and

o     (g) when available and where applicable, the Products are euro-ready such
      that they will correctly process, send, receive, present, store, and
      convert monetary data in the euro denomination, respecting the euro
      currency formatting conventions (including the euro symbol).

If any Product does not comply with the warranties set forth in subparagraph
(b), (f) or (g) above during the first year after acceptance by the applicable
customer, you agree to correct the deficiency without charge or replace the
Product in a timely manner. This provision does not limit any other rights and
remedies we may have under this Agreement.

EXCEPT AS PROVIDED IN THIS AGREEMENT, WE UNDERSTAND AND AGREE THAT YOU DO NOT
MAKE ANY WARRANTY OF ANY KIND TO US WITH RESPECT TO THE PRODUCTS, SERVICES AND
MARKETING MATERIALS, EITHER EXPRESS OR IMPLIED. WE UNDERSTAND AND AGREE THAT YOU
EXPRESSLY EXCLUDE ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.

8. Indemnification

You will defend and Indemnify TIVOLI/IBM, its customers and its and their end
users, if a third party makes a claim against them, whether actual or alleged,
based on your breach of any of the warranties contained in Section 8, entitled
"Warranty". If an infringement claim of any type appears likely or is made
against TIVOLI/IBM or customers, about a Product, you will obtain the necessary
rights for TIVOLI/IBM, and customers to continue exercising all rights granted
under this Agreement, or you will modify the Product or its name so that it is
non-infringing, or replace it with a Product that is functionally equivalent. In
addition to any remedies specified in this Agreement, TIVOLI/IBM may pursue any
other remedy it may have in law or in equity. You will pay any settlement
amounts you authorize and all costs, damages and attorneys' fees that a court
finally awards if TIVOLI/IBM promptly provides you notice of the claim, and
allows you to control and cooperates with you in the defense of the claim and
settlement negotiations. TIVOLI/IBM may participate in the proceedings at its
option and expense.

9. Limitation of Liability

Except for claims arising under Section 8, entitled "indemnification", for
personal injury, property damage or infringement of intellectual property
rights, neither party shall be liable to the other for any economic
consequential damages (including lost profits or savings) or incidental damages,
even if advised that they may occur. Except for claims arising under Section 8,
entitled "Indemnification", for personal injury, property damage or infringement
of intellectual property rights, each party's

                                      -8-
<PAGE>   9

liability for any claim will be limited to the greater of the amounts paid or
owing to you hereunder for the twelve month period ending on the date the claim
was made or the charges for the Product or Service that is the subject of the
claim. Notwithstanding anything to the contrary in this Agreement, if TIVOLI/IBM
negotiates terms with any customer that extend the limits of liability beyond
those In this Agreement, you agree to extend the limits of your liability to
match those terms. In no event would the extension or the limitation of
liability exceed that which TIVOLI/IBM negotiates for its related software.

10. Term and Termination

10.1 This Agreement shall be effective July 1, 1999 when signed by both parties
and shall remain in effect for one year unless extended by mutual written
agreement or terminated as set forth below.

10.2 TIVOLI/IBM may terminate this Agreement for convenience on 90 days prior
written notice to you. In recognition of the initial costs associated with
TIVOLI/IBM's marketing efforts for your Products, you may not terminate this
Agreement for convenience during the first 12 months after its execution. After
the first 12 months you may terminate this Agreement for convenience with 90
days prior written notice to TIVOLI/IBM. The effective date of termination will
be specified in such prior written notice. If TIVOLI/IBM cancels this agreement
under this section 10.2 TIVOLI/IBM will be liable for the minimum amount set
forth in section 6.4 payable on the effective date of termination.

10.3 Either party may terminate this Agreement if the other materially breaches
its obligations. The termination must be by written notice specifically
identifying the breach upon which it is based and will become effective 90 days
after the notice, unless the breach is corrected during the 90 days.

10.4 At the end of the Agreement TIVOLI/IBM will either return to you, or
destroy, any copies of the Products which TIVOLI/IBM has in its inventory,
provided all orders have been fulfilled. TIVOLI/IBM may continue marketing any
Products in its distribution channels at the time of termination.

10.5 Any terms of this Agreement which by their nature extend beyond the day
this Agreement ends remain in effect until fulfilled, and apply to respective
successors and assignees. Upon termination of this Agreement, all rights and
licenses granted by you to TIVOLI/IBM shall cease, except TIVOLI/IBM shall
continue to have all necessary rights and licenses to perform the following
activities: (a) TIVOLI/IBM may sell, lease, license and distribute any inventory
of Products, (b) TIVOLI/IBM may continue to exercise the rights and licenses
granted under this Agreement for up to four months after termination to fill
customer orders TIVOLI/IBM receives before the termination date, and (c) for as
long as necessary to provide maintenance and support to TIVOLI/IBM customers. If
either party terminates for convenience, each party's payment obligations shall
survive and be due and payable within forty-five days after the end of the
quarter of termination. All rights and licenses granted to TIVOLI/IBM's
customers shall survive and continue and shall in no way to affected by the
termination of this Agreement.

11. Information

All Information exchanged under this Agreement is non-confidential. Neither
party shall disclose the terms of this Agreement to any third party without the
other party's prior written consent, except to the extent necessary to establish
each party's rights hereunder, or, as required by applicable law or regulations.
You agree not to issue press releases or other publicity regarding this
Agreement or the relationship under it without TIVOLI/IBM's prior written
approval.

12. Taxes

Each party is responsible for complying with the collection, payment, and
reporting of all taxes imposed by any governmental authority applicable to its
activities in connection with the sale, lease, delivery or license of the
Products under this Agreement. Neither party is responsible for taxes that may
be imposed on the other party. Situations may arise where governmental
authorities require TIVOLI/IBM to withhold from amounts payable to you. In such
cases, TIVOLI/IBM may withhold the amount of taxes due from payments to be made
to you under this Agreement and remit the taxes withheld to the governmental
authority. Upon request, TIVOLI/IBM will provide you with documentation
justifying the withholding amount. As a reseller of your products, TIVOLI/IBM is
not required to pay you, and you agree not to charge TIVOLI/IBM for, taxes for
the Products which are sold by TIVOLI/IBM in the Territory.

13. Audit

You may, not more than once each calendar year this Agreement is in effect and
only on 90 days prior written notice, request access to relevant TIVOLI/IBM
records to a third party auditor, chosen and compensated by you for purposes of
audit. Such third party auditor will report to both parties only the amounts
overpaid or underpaid during the period examined. The audit will be conducted
during normal business hours at TIVOLI/IBM's office and in such a manner as not
to interfere with TIVOLI/IBM's normal business activities. The auditor will sign
a confidentiality agreement.

                                      -9-
<PAGE>   10

14. General

14.1 Neither party guarantees the success of any marketing effort it engages in
for the Products. Either party may independently develop, acquire, and market
materials, equipment, or programs that may be competitive with (despite any
similarity to) the other party's products or services. Each party is responsible
for its own costs, including all business, travel and living expenses incurred
by the performance of this Agreement.

14.2 Neither party has relied on any promises, inducements or representations by
the other, except those expressly stated in this Agreement. This Agreement is
not to be construed as a commitment or obligation, express or implied, on the
part of TIVOLI/IBM that TIVOLI/IBM will market, sell, purchase, or license any
Products under this Agreement.

14.3 Neither party will assign their rights or delegate or subcontract their
duties under this Agreement to third parties or affiliates without the prior
written consent of the other party, such consent not to be withheld
unreasonably.

14.4 Neither party will bring a legal action against the other more than two
years after the cause of action arose. Each party waives a jury trial in any
dispute. Failure by either party to demand strict performance or to exercise a
right does not prevent either party from doing so later.

14.5 The parties are independent contractors. Personnel you supply are deemed
your employees and are not for any purpose considered employees or agents of
TIVOLI/IBM. Each party assumes full responsibility for the actions of its
personnel while performing its obligations under this Agreement and is solely
responsible for their direction and compensation. This Agreement does not create
any obligations for TIVOLI/IBM in any way limiting or restricting the assignment
of its employees. TIVOLI/IBM and its employees are free to use any information,
processing ideas, concepts or techniques disclosed in the Products for any
purpose whatsoever, subject to your statutory patent and copyright rights.

14.6 The laws of New York govern this Agreement. The United Nations' Convention
on the International Sale of Goods does not apply.

14.7 Force Majeure: Neither party will be in default or liable for any delay or
failure to comply with this Agreement due to any act beyond the control of the
affected party, excluding labor disputes, provided such party immediately
notifies the other.

                                      -10-
<PAGE>   11

Exhibit - End User License
--------------------------------------------------------------------------------

          A sample copy of your End User License Agreement is attached.

                                      -11-

<PAGE>   12

                                                                     ServiceWare
                                                                             Inc
--------------------------------------------------------------------------------

                  ServiceWare, Inc. End-User License Agreement
                         Content and Software Product(s)

YOU SHOULD READ THE FOLLOWING TERMS AND CONDITIONS CAREFULLY BEFORE INSTALLING
OR USING THE SERVICEWARE PRODUCT WHICH HAS BEEN DELIVERED TO YOU WITH THIS
LICENSE AGREEMENT. USE OR INSTALLATION OF THE PRODUCT INDICATES YOUR ACCEPTANCE
OF THESE TERMS AND CONDITIONS. IF YOU NEED A TRANSLATION OF THE FOLLOWING TERMS
AND CONDITIONS, PLEASE CONTACT SERVICEWARE IMMEDIATELY WITHOUT INSTALLING OR
USING THE SERVICEWARE PRODUCT. IF YOU DO NOT WISH TO ACCEPT THESE TERMS AND
CONDITIONS, YOU SHOULD RETURN THE SERVICEWARE PRODUCT IMMEDIATELY AND ANY
LICENSE FEES WHICH YOU HAVE PAID FOR THE SERVICEWARE PRODUCT WILL BE REFUNDED TO
YOU. *

1. DEFINITIONS.

      "Content Product" means the knowledge-base product delivered on CD,
      including the knowledge structures, all accompanying text, graphics and
      multimedia, embedded software utilities, and online and hard copy
      documentation.

      "Outsourcer" means a company that uses the Product to provide help desk
      services to third parties for products other than those sold to the third
      parties by the Outsourcer, in exchange for fees or other compensation.

      "Product(s)" means the "Content Product(s)" and the "Software Product(s)"
      licensed hereunder, and any corrections, bug fixes, enhancements, updates
      or other modifications thereto which are made generally available and
      provided to you as part of Maintenance or Content Subscription Services,
      as applicable.

      "Seller" means an authorized representative of Serviceware who is selling
      the Product license to you.

      "Services" means Customer Support Services provided hereunder.

      "Software Product" means computer software program(s) in object code only
      including online and hardcopy documentation.

      "We", "us", "our" and "ServiceWare" means ServiceWare, Inc.

      "You", "your", and "Customer" means the party purchasing an end-user
      license to use the Product

2. PRODUCT LICENSE GRANT. Subject to the terms and restrictions set forth in
this Agreement, ServiceWare grants to you a non-exclusive, non-transferable,
perpetual license for the Product provided hereunder solely to:

      i)    permit use of the Content or Software Product by as many authorized
            users or on as many servers as you have purchased rights for; and

      ii)   use the Content or Software Product for your organization's internal
            purposes (including use by your third-party consultants who agree to
            be bound by the terms conditions of this Agreement); and

      iii)  copy the Content or Software Product for testing, archival or
            disaster recovery purposes; and

      iv)   use the Software Product to develop custom knowledge bases; and

      v)    copy, modify, transmit and distribute custom knowledge bases you
            create using the Software Product provided, however, that the custom
            knowledge bases created by you do not contain (a) the Content
            Product, in whole or in part, or (b) the Software Product, in whole
            or in part, and

      vi)   modify the Content Product (exclusive of software utilities
            contained therein), by

            1) adding content developed by you in order to enhance the usability
            of the Content Product ("Modifications"); provided that (a) the
            Modifications must be done in a manner that does not alter the
            technical accuracy of the information contained in the Content
            Product, (b) the use of any such Modifications by you in conjunction
            with the Content Product shall be subject to the terms and
            conditions for use of the Content Product under this Agreement; and
            (iii) nothing in this Agreement shall in any manner limit
            ServiceWare from independently developing any content or products
            which are similar or identical to the Modifications. You shall be
            free to copy, modify, distribute and use such Modifications in any
            manner provided that such modifications do not contain the Content
            Product, in whole or in part; or

            2) modifying ServiceWare content solutions contained in the Content
            Product, provided that we retain all right, title and interest in
            and to such modified content solutions; such modified content
            solutions shall be subject to the same terms and conditions for use
            of the Content Product under this Agreement.

ServiceWare, Inc. End-User License Agreement (rev. 3-1-99)           Page 1 of 4
<PAGE>   13

                                                                     ServiceWare
                                                                             Inc
--------------------------------------------------------------------------------

3. PRODUCT LICENSE RESTRICTIONS. You may not:

      i)    use the Content Product for the purpose of treating or augmenting a
            third party's knowledge base, database, document or software except
            as authorized by us; or

      ii)   copy any portions of the Content or Software Product, except as
            described in Section 2.iii of this Agreement; or

      iii)  distribute or otherwise make the Content or Software Product or any
            portion of the Content or Software Product, available to any third
            party (except as permitted in 2.ii, above) by way of the World Wide
            Web or other means, without the prior written permission of
            ServiceWare; or

      iv)   reverse-engineer, disassemble, decompile, create a derivative work,
            or make any attempt to discover the source code of the Software
            Product; or

      v)    assign, re-sell, sub-license, rent, or lease any portion of the
            Content or Software Product; or

      vi)   translate the content into another language, or allow the content to
            be translated by other parties; or

      vii)  use the Product if you are an Outsourcer without entering into a
            ServiceWare Outsourcer License Agreement.

4. COPYRIGHT/CONFIDENTIALITY PROTECTION. Subject to your right to make
Modifications as set forth in Section 2.vi, you recognize that ServiceWare
retains all intellectual property rights in the Product and ServiceWare
confidential information, including without limitation, all derivative works
thereto. You hereby assign to ServiceWare all intellectual property rights you
may now or hereafter possess in the Product and ServiceWare confidential
information, and all derivative works thereof, and agree to (a) execute all
documents, and take all actions, that may be necessary to confirm such rights;
and (b) retain all proprietary marks, legends and patent and copyright notices
that appear on the Product and the ServiceWare confidential information
delivered to you by ServiceWare and all partial copies thereof. You may not copy
or otherwise use the Product and any related documentation, in whole or in part,
except as expressly permitted in this Agreement. You recognize that the Product
contains certain confidential information, and you must reasonably protect the
confidential information contained in the Product and provide at least the same
safeguards afforded your own confidential information, but in no event, shall
you apply less than a reasonable standard of care to protect the confidentiality
of our confidential information. Service Ware does not authorize importing or
publishing a third party's intellectual property or any portion thereof, using
the Software Product. Use of any third party's intellectual property or software
product(s) or other information shall be governed by a separate license
agreement between you and such third party(s).

We agree to defend or, at our option, settle any action or claim asserted
against you based upon a third party's claim that the use of the Product as
delivered by ServiceWare, infringes a United States patent, copyright, trade
name or trade secret, provided that we are given prompt notice of the action or
claim, the right to control and direct the investigation, defense and settlement
thereof; and that you shall reasonably cooperate with us regarding the
foregoing. If such a claim arises, we will, at our option, either procure the
right for you to continue using the Product or repair or replace the Product so
that it is non-infringing, or if we determine that neither of the foregoing are
commercially reasonable, terminate the Product license and refund a prorated
portion of the license fees paid for the Product, such proration to be
calculated on the basis of a sixty (60) month useful life, plus any pre-paid
and unused Annual Subscription Services or Maintenance fees.

We will not be liable for a claim of infringement based on (i) use of other than
the latest unmodified release of the Product available or any modifications made
by you or other third party; (ii) use or combination of the Product with
non-ServiceWare programs if infringement would not have occurred without the
combination; or (iii) use of the Product by you after receiving notice they
infringe a third party's proprietary rights.

5. TERM AND TERMINATION. This Agreement becomes effective upon execution of a
ServiceWare Sales Order Form referencing this Agreement or upon your
installation or use of the Product, whichever occurs first, and this Agreement
and any licenses granted hereunder shall remain in effect unless terminated as
provided herein. This Agreement and/or the Licenses granted hereunder, as
applicable, will terminate automatically based on an uncured material breach by
either party, provided that the breaching party is given thirty (30) days prior
written notice of termination as an opportunity to cure such breach. Upon
termination for any reason, you agree that you will destroy or return to us all
copies of the Product and related documentation.

Sections 4, 6, 7, and 11 shall survive termination of this Agreement.

ServiceWare, Inc. End-User License Agreement (rev. 3-1-99)           Page 2 of 4
<PAGE>   14

                                                                     ServiceWare
                                                                             Inc
--------------------------------------------------------------------------------

6. LIMITED WARRANTY.

i)    We warrant that for a period of ninety (90) days from the date the Content
      Product is shipped to you; and for twelve (12) months from the date the
      Software Product is shipped to you: (1) the media on which the Product is
      distributed to you will be free from material defects in materials and
      workmanship; and (2) the Product will perform substantially in accordance
      with the written, published specifications produced solely by us for the
      functionality and operability of the Product. Any written or oral
      information or advice given by our resellers, distributors, agents or
      employees will in no way increase the scope of this warranty.

ii)   ServiceWare warrants that each Product as delivered to you shall, under
      normal use and service process calendar dates falling on or after January
      1, 2000, in the same manner, and with the same functionality, data
      integrity and performance, as each Product processes calendar dates on or
      before November 31, 1999. We will not be liable for failure to process
      calendar dates caused by any computer hardware or software not supplied by
      us, including without limitation the failure to provide or process
      compliant date data by such non-ServiceWare hardware or software, use of
      prior versions of the Product or any alteration, modification or misuse of
      the Product.

iii)  We will not be liable for problems in the Product caused by alteration or
      modification by you of the Product or the software application it is
      intended to run on, or for problems arising out of the malfunction of any
      computer hardware or software not supplied by us. If the Product fails to
      comply with the warranties set forth above, our entire liability and your
      exclusive remedy will be replacement of the media on which the Product was
      distributed or, at our option, our reasonable effort to make the Product
      meet the warranty set forth above.

iv)   This limited warranty applies only if you return all copies of the Product
      with a copy of your paid invoice to us at 333 Allegheny Avenue, Oakmont,
      PA 15139 or to the Seller within the applicable warranty period for the
      applicable Product. If we and the Seller cannot make the Product conform
      to the above warranty, we will refund a portion of the license fees paid,
      pro-rated over the term of the initial warranty period. Any replacement
      Product will be warranted for the remainder of the original warranty
      period or for thirty (30) days from the date you received the replacement,
      whichever is longer.

v)    All Services provided by us hereunder will be performed in professional
      manner by qualified personnel.

SERVICE WARE MAKES NO WARRANTIES REGARDING THE USEFULNESS OR ACCURACY OF THE
CONTENT PROVIDED HEREUNDER AS PART OF THE CONTENT PRODUCT. WE DISCLAIM ALL OTHER
WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT
TO THE PRODUCT OR SERVICES. Some jurisdictions do not allow exclusion of implied
warranties, so the above exclusion may not apply to you. This limited warranty
gives you specific legal rights, and you may have others which vary from
jurisdiction to jurisdiction.

7. LIMITATION OF LIABILITY. IN NO EVENT SHALL WE OR THE SELLER BE LIABLE FOR ANY
CONSEQUENTIAL, INCIDENTAL, PUNITIVE OR SPECIAL DAMAGES WHATSOEVER (INCLUDING
WITHOUT LIMITATION DAMAGES FOR LOSS OF PROFITS, BUSINESS INTERRUPTION, LOSS OF
INFORMATION, OR OTHER PECUNIARY LOSS) ARISING OUT OF THE USE OF OR INABILITY TO
USE, FURNISHING OR PERFORMANCE OF THE PRODUCT, EVEN IF WE OR THE SELLER HAVE
BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT SHALL OUR LIABILITY
EXCEED THE FEES PAID BY CUSTOMER HEREUNDER THE LIMITATIONS SET FORTH IN THIS
SECTION SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY
LIMITED REMEDY. Because some states do not allow the exclusion or limitation of
liability for consequential, incidental or special damages, the above limitation
may not apply to you.

ServiceWare, Inc. End-User License Agreement (rev. 3-1-99)           Page 3 of 4
<PAGE>   15

                                                                     ServiceWare
                                                                             Inc
--------------------------------------------------------------------------------

8. MAINTENANCE, SUBSCRIPTION SERVICES AND SUPPORT. This Section 8. applies only
if the Product license was purchased directly from ServiceWare. Otherwise,
Maintenance, Subscription Services and Support shall be provided to you as
indicated to you by the Seller.

i)    Maintenance for Software Products. Maintenance for Software Products is
      available for the initial annual term and any renewal thereof at
      ServiceWare's then-current fees. For such initial maintenance term and any
      renewal thereof, maintenance shall include Customer Support Services and
      all updates an enhancements which are made generally available at no
      additional charge to our customers who are current on Maintenance.

ii)   Subscription Services for Content Products. Annual Subscription Services
      are available for the initial annual term and any renewal thereof at
      ServiceWare's then-current fees. Subscription Services for Content
      Products shall include Customer Support Services and updated content which
      is made generally available at no additional charge to our customers who
      are participating in the Subscription Services.

iii)  Customer Support Services. Customer support shall entail telephone and
      e-mail assistance and consultation to resolve problems with the Product
      and shall be provided to those Customers who have purchased either
      Maintenance or Subscription Services, as applicable, according to our
      then-current customer support practices. We shall have no obligation to
      provide support if a problem is caused by a malfunction of hardware,
      software not supplied by us, modification of the Product not made by us,
      operator error, or use of the Product in a manner not in accordance with
      the operating instructions for the Product.

9. EXPORT. You agree that you will not knowingly export or transmit the Product
directly or indirectly, to any restricted countries or in any manner that would
violate United States laws and regulations as shall from time to time govern the
license and delivery of technology abroad by persons subject to the jurisdiction
of the United States, including the Export Administration Act of 1979, as
amended, and any export administration regulations issued thereafter.

10. U.S. GOVERNMENT RESTRICTED RIGHTS. If you are licensing the Product on
behalf of the U.S. Government (the "Government"), the following provisions apply
to you. If the Product is supplied to the Department of Defense ("DoD"), it is
classified as "Commercial Computer Software" under paragraph 252.227-7014 of the
DoD Supplement to the Federal Acquisition Regulations ("DFARS") (or any
successor regulations) and the Government is acquiring only the license rights
granted herein (the license rights customarily provided to non-Government
users). If the Product is supplied to any unit or agency of the Government other
than the DoD, it is classified as "Restricted Computer Software" and the
Government's rights in the Product are defined in paragraph 52.227-19 of the
Federal Acquisition Regulations ("FAR") (or any successor regulations) or, in
the case of NASA, in paragraph 18.52.227-86 of the NASA Supplement to the FAR
(or successor regulations).

11. GENERAL. The limitations of warranty and liability described in Sections 6.
and 7. of this Agreement shall inure to the benefit of our licensors having an
interest in the Product. This Agreement may not be assigned by you without our
prior written consent. If any provision of this Agreement is held to be invalid
and unenforceable under any circumstances, its application in any other
circumstances and the remaining provisions of this Agreement shall not be
affected. No waiver of any right under this Agreement by either party shall be
effective unless given in writing by that party. No waiver of any right by
either party shall be deemed to be a waiver of any other right arising under
this Agreement.

This Agreement is governed by the laws of the Commonwealth of Pennsylvania. The
sole forums for resolving disputes arising under or relating to this Agreement
shall be the State and Federal Courts of the Commonwealth of Pennsylvania, and
the parties hereby consent to the jurisdiction of such courts and agree that
venue shall be in Allegheny County, Pennsylvania.

12. ENTIRE AGREEMENT, YOU AGREE THAT THIS AGREEMENT AND ANY APPLICABLE
SERVICEWARE SALES ORDER FORM IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE
AGREEMENT BETWEEN YOU AND US, AND THAT IT SUPERSEDES ANY PROPOSAL OR PRIOR
AGREEMENT, ORAL OR WRITTEN, AND ANY OTHER COMMUNICATION RELATING TO THE SUBJECT
MATTER HEREOF. WE ARE NOT BOUND BY ANY PROVISION OF ANY PURCHASE ORDER, RECEIPT,
ACCEPTANCE, CONFIRMATION, CORRESPONDENCE OR OTHERWISE, UNLESS WE SPECIFICALLY
AGREE TO THE PROVISION IN WRITING. NO VENDOR, DISTRIBUTOR, PROVIDER, RESELLER,
OEM, SALES REPRESENTATIVE OR OTHER PERSON IS AUTHORIZED TO MODIFY THIS LICENSE
AGREEMENT OR TO MAKE ANY WARRANTY, REPRESENTATION OR PROMISE REGARDING THE
PRODUCT WHICH IS DIFFERENT FROM THOSE SET FORTH IN THIS LICENSE AGREEMENT.

*     The Knowledge-Pak Viewer(TM) Product contains technology licensed by
      Verity, Inc. and use of such technology by End-Users is governed by all
      terms and restrictions of this Agreement. Verity, Inc. reserves all rights
      in the licensed technology.

ServiceWare, Inc. End-User License Agreement (rev. 3-1-99)           Page 4 of 4

<PAGE>   16

Exhibt-Outsourcer License
-------------------------------------------------------------------------------

A sample copy of your Outsourcer License Agreement is attached.

Tivoli SW SDMP

                                      -13-

<PAGE>   17

                                                                     ServiceWare
                                                                             Inc
--------------------------------------------------------------------------------

                 ServiceWare, Inc. Outsourcer License Agreement
                         Content and Software Product(s)

YOU SHOULD READ THE FOLLOWING TERMS AND CONDITIONS CAREFULLY BEFORE INSTALLING
OR USING THE SERVICEWARE PRODUCT WHICH HAS BEEN DELIVERED TO YOU WITH THIS
LICENSE AGREEMENT. USE OR INSTALLATION OF THE PRODUCT INDICATES YOUR ACCEPTANCE
OF THESE TERMS AND CONDITIONS. IF YOU NEED A TRANSLATION OF THE FOLLOWING TERMS
AND CONDITIONS, PLEASE CONTACT SERVICEWARE IMMEDIATELY WITHOUT INSTALLING OR
USING THE SERVICEWARE PRODUCT. IF YOU DO NOT WISH TO ACCEPT THESE TERMS AND
CONDITIONS, YOU SHOULD RETURN THE SERVICEWARE PRODUCT IMMEDIATELY AND ANY
LICENSE FEES WHICH YOU HAVE PAID FOR THE SERVICEWARE PRODUCT WILL BE REFUNDED TO
YOU. *

1. DEFINITIONS.

      "Authorized Users" means your employees and your third-party consultants
      who agree to be bound by the terms and conditions of this Agreement.

      "Client(s)" means third parties to whom you provide help desk services in
      exchange for fees or other compensation.

      "Content Product" means the knowledge-base product delivered on CD,
      including the knowledge structures, all accompanying text, graphics and
      multimedia, embedded software utilities, and online and hard copy
      documentation.

      "Outsourcer" means a company that uses the Product to provide help desk
      services to third-party Clients for products other than those sold to the
      Clients by the Outsourcer, in exchange for fees or other compensation.

      "Product(s)" means the "Content Product(s)" and the "Software Product(s)"
      licensed hereunder, and any corrections, bug fixes, enhancements, updates
      or other modifications thereto which are made generally available and
      provided to you as part of Maintenance or Content Subscription Services,
      as applicable.

      "Seller" means an authorized representative of ServiceWare who is selling
      the Product license to you.

      "Services" means Customer Support Services provided hereunder.

      "Software Product" means computer software program(s) in object code only
      including online and hardcopy documentation.

      "We", "us", "our" and "ServiceWare" means ServiceWare, Inc.

      "You", "your", and "Customer" means the party purchasing an end-user
      license to use the Product.

2. PRODUCT LICENSE GRANT. Subject to the terms and restrictions set forth in
this Agreement, ServiceWare grants to you a non-exclusive, non-transferable,
license for the Product provided hereunder solely to:

      i)    permit use of the Content Product by up to two hundred (200)
            Authorized Users per each server licensed hereunder; and

      ii)   permit use of the Software Product by as many Authorized Users as
            you have purchased rights for; and

      iii)  use the Content or Software Product for your organization's internal
            purposes and for the benefit of your Clients; and

      iv)   copy and transmit solutions contained within the Content Product(s)
            for the sole purpose of providing service and assistance to your
            Clients; and

      v)    copy the Content or Software Product for testing, archival or
            disaster recovery purposes; and

      vi)   use the Software Product to develop custom knowledge bases; and

      vii)  copy, modify, transmit and distribute custom knowledge bases you
            create using the Software Product provided, however, that the custom
            knowledge bases created by you do not contain (a) the Content
            Product, in whole or in part, or (b) the Software Product, in whole
            or in part; and

ServiceWare, Inc. End-User License Agreement (rev. 3-1-99)                1 of 5
<PAGE>   18

                                                                     ServiceWare
                                                                             Inc
--------------------------------------------------------------------------------

      viii) modify the Content Product (exclusive of software utilities
            contained therein), by

            1) adding content developed by you in order to enhance the usability
            of the Content Product ("Modifications"); provided that (a) the
            Modifications must be done in a manner that does not alter the
            technical accuracy of the information contained in the Content
            Product, (b) the use of any such Modifications by you in conjunction
            with the Content Product shall be subject to the terms and
            conditions for use of the Content Product under this Agreement; and
            (iii) nothing in this Agreement shall in any manner limit
            ServiceWare from independently developing any content or products
            which are similar or identical to the Modifications. You shall be
            free to copy, modify, distribute and use such Modifications in any
            manner provided that such Modifications do not contain the Content
            Product, in whole or in part, or

            2) modifying ServiceWare content solutions contained in the Content
            Product, provided that we retain all right, title and interest in
            and to such modified content solutions; such modified content
            solutions shall be subject to the same terms and conditions for use
            of the Content Product under this Agreement.

3. PRODUCT LICENSE RESTRICTIONS. You may not:

      i)    use the Content Product for the purpose of creating or augmenting a
            third party's knowledge base, database, document or software except
            as authorized by us; or

      ii)   copy any portions of the Content or Software Product, except as
            described in Sections 2.iv and v of this Agreement; or

      iii)  distribute or otherwise make the Content or Software Product or any
            portion of the Content or Software Product, available to any third
            party by way of the World Wide Web or other means, without the prior
            written permission of ServiceWare; or

      iv)   reverse-engineer, disassemble, decompile, create a derivative work,
            or make any attempt to discover the source code of the Software
            Product; or

      v)    assign, re-sell, sub-license, rent, or lease any portion of the
            Content or Software Product; or

      vi)   translate the content into another language, or allow the content to
            be translated by other parties.

4. COPYRIGHT/CONFIDENTIALITY PROTECTION. Subject to your right to make
Modifications as set forth in Section 2.viii, you recognize that ServiceWare
retains all intellectual property rights in the Product and ServiceWare
confidential information, including without limitation, all derivative works
thereto. You hereby assign to ServiceWare all intellectual property rights you
may now or hereafter possess in the Product and ServiceWare confidential
information, and all derivative works thereof, and agree to (a) execute all
documents, and take all actions, that may be necessary to confirm such rights;
and (b) retain all proprietary marks, legends and patent and copyright notices
that appear on the Product and the ServiceWare confidential information
delivered to you by ServiceWare and all partial copies thereof. You may not copy
or otherwise use the Product and any related documentation, in whole or in part,
except as expressly permitted in this Agreement. You recognize that the Product
contains certain confidential information, and you must reasonably protect the
confidential information contained in the Product and provide at least the same
safeguards afforded your own confidential information, but in no event, shall
you apply less than a reasonable standard of care to protect the confidentiality
of our confidential information. ServiceWare does not authorize importing or
publishing a third party's intellectual property or any portion thereof, using
the Software Product. Use of any third party's intellectual property or software
products or other information shall be governed by a separate license agreement
between you and such third party(s).

We agree to defend or, at our option, settle any action or claim asserted
against you based upon a third party's claim that the use of the Product as
provided by us, infringes a United States patent, copyright, trade name or trade
secret, provided that we are given prompt notice of the action or claim, the
right to control and direct the investigation, defense and settlement thereof;
and that you shall reasonably cooperate with us regarding the foregoing. If such
a claim arises, we will, at our option, either procure the right for you to
continue using the Product or repair or replace the Product so that it is
non-infringing, or if we determine that neither of the foregoing are
commercially reasonable, terminate the Product license and refund either 1) a
prorated portion of the initial license fees paid for the Software Product, such
proration to be calculated on the basis of a sixty (60) month useful life, or 2)
a pro-rated portion annual license fees paid for the Content Product for the
then-current term, as applicable.

We will not be liable for a claim of infringement based on: (i) use of other
than the latest unmodified release of the Product available or any modifications
made by you or other third party; (ii) use or combination of the Product with
non-ServiceWare programs if infringement would not have occurred without the
combination; or (iii) use of the Product after receiving notice it infringes a
third party's proprietary rights.

5. TERM AND TERMINATION. This Agreement becomes effective upon execution of a
ServiceWare Sales Order Form referencing this Agreement or upon your use or
installation of the Product, whichever occurs first, and shall

ServiceWare, Inc. End-User License Agreement (rev. 3-1-99)                2 of 5
<PAGE>   19

                                                                     ServiceWare
                                                                             Inc
--------------------------------------------------------------------------------

remain in effect for the term of any license granted hereunder. This Agreement
and/or the Licenses granted hereunder, as applicable, will terminate
automatically based on an uncured material breach by either party, provided that
the breaching party is given thirty (30) days prior written notice of
termination as an opportunity to cure such breach.

Licenses granted for Software Product(s) shall be perpetual. The initial term of
license granted for Content Product(s) shall be for one year, and this Agreement
and the licenses for Content Product(s) granted hereunder shall be automatically
renewed for subsequent annual terms at the then-current fees unless either party
provides the other party with thirty (30) days' prior written notice of its
intent not to renew.

Upon non-renewal or termination for any reason, you agree that you will destroy
or return to us all copies of the Product and related documentation.

Sections 4, 6, 7, and 11 shall survive termination of this Agreement.

6. LIMITED WARRANTY.

i)    We warrant that for a period of ninety (90) days from the date the Content
      Product is shipped to you; and for twelve (12) months from the date the
      Software Product is shipped to you: (1) the media on which the Product is
      distributed to you will be free from material defects in materials and
      workmanship; and (2) the Product will perform substantially in accordance
      with the written published specifications produced solely by us for the
      functionality and operability of the Product. Any written or oral
      information or advice given by our resellers, distributors, agents or
      employees will in no way increase the scope of this warranty.

ii)   ServiceWare warrants that each Product as delivered to you shall, under
      normal use and service process calendar dates falling on or after January
      1, 2000, in the same manner and with the same functionality, data
      integrity and performance, as each Product processes calendar dates on or
      before December 31, 1999. We will not be liable for failure to process
      calendar dates caused by any computer hardware or software not supplied by
      us, including without limitation the failure to provide or process
      compliant date data by such non-ServiceWare hardware or software, use of
      prior versions of the Product or any alteration, modification or misuse of
      the Product.

iii)  We will not be liable for problems in the Product caused by alteration or
      modification by you of the Product or the software application it is
      intended to run on, or for problems arising out of the malfunction of any
      computer hardware or software not supplied by us. If the Product fails to
      comply with the warranties set forth above, our entire liability and your
      exclusive remedy will be replacement of the media on which the Product was
      distributed or, at our option, our reasonable effort to make the Product
      meet the warranty set forth above.

iv)   This limited warranty applies only if you return all copies of the Product
      with a copy of your paid invoice to us at 333 Allegheny Avenue, Oakmont,
      PA 15139 or to the Seller within the applicable warranty period for the
      applicable Product. If we and the Seller cannot make the Product conform
      to the above warranty, we will refund a portion of the license fees paid,
      pro-rated over the term of the initial warranty period. Any replacement
      Product will be warranted for the remainder of the original warranty
      period or for thirty (30) days from the date you received the replacement,
      whichever is longer.

v)    All Services provided by us hereunder will be performed in a professional
      manner by qualified personnel.

SERVICEWARE MAKES NO WARRANTIES REGARDING THE USEFULNESS OR ACCURACY OF THE
CONTENT PROVIDED HEREUNDER AS PART OF THE CONTENT PRODUCT. WE DISCLAIM ALL OTHER
WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT
TO THE PRODUCT OR SERVICES. Some jurisdictions do not allow exclusion of implied
warranties, so the above exclusion may not apply to you. This limited warranty
gives you specific legal rights, and you may have others which vary from
jurisdiction to jurisdiction.

7. LIMITATION OF LIABILITY. IN NO EVENT SHALL WE OR THE SELLER BE LIABLE FOR
ANY CONSEQUENTIAL, INCIDENTAL, PUNITIVE OR SPECIAL DAMAGES WHATSOEVER (INCLUDING
WITHOUT LIMITATION DAMAGES FOR LOSS OF PROFITS, BUSINESS INTERRUPTION, LOSS OF
INFORMATION, OR OTHER PECUNIARY LOSS) ARISING OUT OF THE USE OF OR INABILITY TO
USE, FURNISHING OR PERFORMANCE OF THE PRODUCT, EVEN IF WE OR THE SELLER HAVE
BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT SHALL OUR LIABILITY
EXCEED THE FEES PAID BY CUSTOMER HEREUNDER. THE LIMITATIONS SET FORTH IN THIS

ServiceWare, Inc. End-User License Agreement (rev. 3-1-99)                3 of 5
<PAGE>   20

                                                                     ServiceWare
                                                                             Inc
--------------------------------------------------------------------------------

SECTION SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY
LIMITED REMEDY. Because some states do not allow the exclusion or limitation of
liability for consequential, incidental or special damages, the above limitation
may not apply to you.

8. MAINTENANCE, SUBSCRIPTION SERVICES AND SUPPORT. This Section 8. applies only
if the Product license was purchased directly from ServiceWare. Otherwise,
Maintenance, Subscription Services and Support shall be provided to you as
Indicated to you by the Seller.

i)    Maintenance for Software Products. Maintenance for Software Products is
      available for the initial annual term and any renewal thereof at
      ServiceWare's then-current fees. For such initial maintenance term and any
      renewal thereof, maintenance shall include Customer Support Services and
      all updates an enhancements which are made generally available at no
      additional charge to our customers who are current on Maintenance.

ii)   Subscription Services for Content Products. Annual Subscription Services
      are included for the initial annual license term and any renewal thereof
      at ServiceWare's then-current fees. Subscription Services for Content
      Products shall include Customer Support Services and updated content which
      is made generally available at no additional charge to our customers who
      are participating in the Subscription Services.

iii)  Customer Support Services. Customer support shall entail telephone and
      e-mail assistance and consultation to resolve problems with the Product
      and shall be provided to those Customers who have purchased either
      Maintenance or Subscription Services, as applicable, according to our
      then-current customer support practices. We shall have no obligation to
      provide support if a problem is caused by a malfunction of hardware,
      software not supplied by us, modification of the Product not made by us,
      operator error, or use of the Product in a manner not in accordance with
      the operating instructions for the Product.

9. EXPORT. You agree that you will not knowingly export or transmit the Product
directly or indirectly, to any restricted countries or in any manner that would
violate United States laws and regulations as shall from time to time govern the
license and delivery of technology abroad by persons subject to the jurisdiction
of the United States, including the Export Administration Act of 1979, as
amended, and any export administration regulations issued thereafter.

10. U.S. GOVERNMENT RESTRICTED RIGHTS. If you are licensing the Product on
behalf of the U.S. Government (the "Government"), the following provisions apply
to you. If the Product is supplied to the Department of Defense ("DoD"), it is
classified as "Commercial Computer Software" under paragraph 252.227-7014 of the
DoD Supplement to the Federal Acquisition Regulations ("DFARS") (or any
successor regulations) and the Government is acquiring only the license rights
granted herein (the license rights customarily provided to non-Government
users). If the Product is supplied to any unit or agency of the Government other
than the DoD, it is classified as "Restricted Computer Software" and the
Government's rights in the Product are defined in paragraph 52.227-19 of the
Federal Acquisition Regulations ("FAR") (or any successor regulations) or, in
the case of NASA, in paragraph 18.52.227-86 of the NASA Supplement to the FAR
(or any successor regulations).

11. GENERAL. The limitations of warranty and liability described in Sections 6.
and 7. of this Agreement shall inure to the benefit of our licensors having an
interest in the Product. This Agreement may not be assigned by you without our
prior written consent. If any provision of this Agreement is held to be invalid
and unenforceable under any circumstances, its application in any other
circumstances and the remaining provisions of this Agreement shall not be
affected. No waiver of any right under this Agreement by either party shall be
effective unless given in writing by that party. No waiver of any right by
either party shall be deemed to be a waiver of any other right arising under
this Agreement.

This Agreement is governed by the laws of the Commonwealth of Pennsylvania. The
sole forums for resolving disputes arising under or relating to this Agreement
shall be the State and Federal courts of the Commonwealth of Pennsylvania, and
the parties hereby consent to the jurisdiction of such courts and agree that
venue shall be in Allegheny County, Pennsylvania.

12. ENTIRE AGREEMENT, YOU AGREE THAT THIS AGREEMENT AND ANY APPLICABLE
SERVICEWARE SALES ORDER FORM IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE
AGREEMENT BETWEEN YOU AND US, AND THAT IT SUPERSEDES ANY PROPOSAL OR PRIOR
AGREEMENT, ORAL OR WRITTEN, AND ANY OTHER COMMUNICATION RELATING TO THE SUBJECT
MATTER HEREOF. WE ARE NOT BOUND BY ANY PROVISION OF ANY PURCHASE ORDER, RECEIPT,
ACCEPTANCE, CONFIRMATION, CORRESPONDENCE OR OTHERWISE, UNLESS

ServiceWare, Inc. End-User License Agreement (rev. 3-1-99)                4 of 5

<PAGE>   21

                                                                ServiceWare Inc.
--------------------------------------------------------------------------------

WE SPECIFICALLY AGREE TO THE PROVISION IN WRITING. NO VENDOR, DISTRIBUTOR,
PROVIDER, RESELLER, OEM, SALES REPRESENTATIVE OF OTHER PERSON IS AUTHORIZED TO
MODIFY THIS LICENSE AGREEMENT OR TO MAKE ANY WARRANTY, REPRESENTATION OR PROMISE
REGARDING THE PRODUCT WHICH IS DIFFERENCE FROM THOSE SET FORTH IN THIS LICENSE
AGREEMENT.

*     The Knowledge-Pak Viewer(TM) Product contains technology licensed by
      Verity, Inc. and use of such technology by End-Users is governed by all
      terms and restrictions of this Agreement. Verity, Inc. reserves all rights
      is the licensed technology.

ServiceWare, Inc. End-User License Agreement (rev 3-1-99)

<PAGE>   22

Exhibit-Trade Mark Guidelines
-------------------------------------------------------------------------------

ServiceWare Guidelines for Use of Trademarks, Service Marks and Copyright
Symbols

NOTE: rightanswers.com, Knowledge Viewer, Knowledge Architech, Knowledge
Channels. KnowledgeNow Knowledge-Paks, Knowledge-Pak Architect, Knowledge-Pak
Viewer, Knowledge-Pak Desktop Suite, Knowledge-Pak Network Suite, Knowledge-Pak
Self-Support Suite, Knowledge-Pak Suite for SAP's R/3, Knowledge-Pak for
Microsoft Office 2000, Knowledge-Pak for Microsoft Internet Explorer 5,
Knowledge-Pak for Y2K, Integration Pak, Success-Pak, Knowledge-Pak University,
and Support at the Speed of Life are registered trademarks, trademarks or
service marks of ServiceWare Inc.

Tivoli has the right to use the following Trademarks, Service Marks and
Copyright Symbols:

Knowledge-Pak(R)
Knowledge-Pak Desktop Suite(TM)
Knowledge-Pak Suite for SAP's R/3(TM)
Knowledge-Pak Complete Suite for SAP's R/3(TM)
Knowledge-Pak for Microsoft Office 2000(TM)
Knowledge-Pak for Microsoft Internet Explorer 5(TM)
Knowledge-Pak for Y2K(TM)

Use of these marks only needs to occur once at first reference.

Tivoli SW SDMP

                                      -13-

<PAGE>   23

Exhibit-Commercial Price List
--------------------------------------------------------------------------------

A sample copy of your Commercial Price List is attached.

Tivoli SW SDMP
                                      -14-
<PAGE>   24

ServiceWare Inc.

                                KNOWLEDGE - PAK

                                    Content

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

User Licensing
--------------------------------------------------------------------------------
5 Users Initial Purchase - $5,000
6-20 Users - $1,000 per User
21+ Users - $800 per User

ASA - $180 per User

Service Licensing
--------------------------------------------------------------------------------

Perpetual License
$20,000 per server
Unlimited Users

ASA - $8,000

Discounts

Multi-year Annual Subscription Agreements
(ASAs)

10% off for 2-year contract
20% off for 3-year contract

Delivery Format Exchange

First 90 days: No charge

After 90 days, if customer has current ASA: 25% of then-current list price

After 90 days, if customer does not have current ASA: Full list price

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

Price List

Knowledge-Pak Desktop Suite(TM)
Knowledge-Pak Network Suite(TM)

Pricing Notes

1.    Definition of User: A "user" is someone who provides technical support for
      others. This includes first and second-level help desk analysts, field
      engineers, and network administrators. A "user" can also be someone who
      uses the Knowledge-Pak(R) as part of doing a non-support job (e.g.,
      accounting and other office staff, programmers, managers, etc.). User
      licenses are reviewed annually to ensure ongoing compliance.

2.    Service Pricing: Service pricing is unlimited for users; server pricing
      applies to a single format.

3.    Definition of Site: A "site" is defined as a single building or campus.
      Enterprise licenses are available on a negotiated basis.

4.    Multi-user Price is measured per site per order.

5.    Initial Warranty Period: The standard initial warranty period for the
      Knowledge-Pak Desktop Suite and the Knowledge-Pak Network Suite is 90 days
      from the end of the month in which the product is shipped. While under
      initial warranty, you will receive phone support for installation and
      product questions.

6.    The Annual Subscription Agreement (ASA) entitles you to:

      (a)   regular updates which may include:

            i)    updated knowledge content to existing product titles

            ii)   new product titles

      (b)   unlimited telephone support for product installation and usage.

The agreement is annual and takes effect at the time of purchase.

7.    Exchanging Platforms: If you are under the initial warranty period, you
      may exchange your Knowledge-Pak Desktop Suite or Knowledge-Pak Network
      Suite for a new format, that runs on different support software, at no
      charge. If your warranty is expired but you are under a current ASA, you
      may exchange formats for 25% of the then-current list price. If you
      warranty is expired and you are not under a current ASA, you may exchange
      formats at full list price.

8.    Product Media: The Knowledge-Pak Desktop Suite and the Knowledge-Pak
      Network Suite are normally supplied on CD-ROM. A version can be provided
      on diskettes for an additional $150 per set.

9.    Terms: All pricing is in U.S. Dollars and subject to change without
      notice.

333 Allegheny Avenue o Oakmont, PA 15139 USA o Tel: 412.826.1158 o Fax:
412.826.0577 o info@serciveware.com o www.serviceware.com

(C) 1999 ServiceWare Inc. Knowledge-Paks, the Knowledge-Pak Desktop Suite, the
Knowledge-Pak Network Suite, the Knowledge-Pak Suite for SAP's R/3, and Right
Answers Right Now are registered trademarks, trademarks, or service marks of
ServiceWare Inc. All other references are trademarks or registered trademarks of
their respective companies.  All rights reserved.

                                                              [ILLEGIBLE] 5/4/99

                                                         Right Answers Right Now
                                                         -----------------------
                                                                    |

<PAGE>   25

Exhibit - Mutual Points of Contact
--------------------------------------------------------------------------------

                           Communication Coordinators

ServiceWare Incorporated

Business:

Jeanne Kohser, Partner Manager
333 Allegheny Avenue
Oakmont, PA 15139
412-826-1158, Ext. 389
412-828-0577 (fax)
kosher@serviceware.com

Legal:

Melinda Schnap, Contracts Manager
333 Allegheny Avenue
Oakmont, PA 15139
412-1158, Ext. 364
412-828-0577 (fax)
schnap@serviceware.com

Technical:

John Price, Development Manager
333 Allegheny Avenue
Oakmont, PA 15139
412-826-1159, Ext. 392
412-828-0577 (fax)
price@serviceware.com

Customer Support:

Kathy Campbell, Director of Customer Support
333 Allegheny Avenue
Oakmont, PA 15139
412-826-1159, Ext. 228
412-828-0577 (fax)
campbell@serviceware.com

International Sales:

Markus Wachsmuth, Director of European Sales
A L'Antienne Poste
Rue Du Bugnon 1
CH-1299 Crans
Geneva, Switzerland
+41-22-960-1240
+41-22-960-1241 (fax)
wachsmuth@serviceware.com

Royalty Reporting:

Mary Barron, Staff Accountant
333 Allegheny Avenue
Oakmont, PA 15139
412-826-1159, Ext. 472
412-828-0577 (fax)
barron@serviceware.com

Tivoli/IBM

Christine DeWeese, Product Manager
9025 North River Rd., 2nd Floor
Indianapolis, IN [ILLEGIBLE] 46240
317-554-7500, Ext. 57583
317-554-     (fax)
christine.deweese@tivoli.com

Jodie Slifka, Contracts Manager
9442 Capital of Texas Hwy, North
Austin, TX 78759
512-436-1275
512-436-1666 (fax)
jodie.slifka@tivoli.com

Tim Reynolds, 2nd Line Development Manager
9025 North River Rd., 2nd Floor
Indianapolis, IN 46240
317-554-7500, Ext. 57578
317-554-7977 (fax)
tim.reynolds@tivoli.com

Mark Boxberger, Director of Customer Support
9025 North River Rd., 2nd Floor
Indianapolis, IN 46240
317-554-7500, Ext. 57736
317-554-     (fax)
mark.boxberger@tivoli.com

Christine DeWeEse, Product Manager
9025 North River Rd., 2nd Floor
Indianapolis, IN 46240
317-554-7500, Ext. 57583

Scott Griffin
9442 Capital of Texas Hwy. North
Austin, TX 78759
512-436-
512-436-1681 (fax)
scott.griffin@tivoli.com

Tivoli SW SDMP                        -15-                               7/27/99

<PAGE>   26
Attachment - Certificate of Originality
--------------------------------------------------------------------------------

You may use this questionnaire to cover on complete Product, even if that
Product includes multiple modules.

Please do not leave any questions blank.  Write "not applicable" or "N/A" if a
question is not relevant to the furnished software material.  Depending on your
responses, TIVOLI/IBM may require additional information.

1) Please identify the software material including version, release, and
modification numbers for programs and any documentation.

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

2) Was any portion of the software material written by anyone other than you or
your employees within the scope of their employment?

                                 Yes |_| No |X|

If YES, provide, as an attachment, the following information:

A) Indicate if the whole software material or only a portion thereof was written
by such party, and identify such portion:

(i) Specify for each involved party the name, address and citizenship:

(ii) If the party is a company, how did it acquire title to the software
material (e.g., software material was written by company's employees within the
scope of their employment);

(iii) If the party is an individual, did he/she create the software material
while employed by or under contractual relationship with another party?

                                 Yes |_| No |_|

If YES, provide name and address of the other party and explain the nature of
the contractual relationship:

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

B) How did you acquire title to the software material written by the other
party?

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

3) Are any copyright, confidentiality, or proprietary notice(s) present on the
software content material(s)?

Yes |_| No |X|

If YES, please describe such notice(s):

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

4) Was any portion of the software material (e.g., Code, associated
documentation, etc.) derived from preexisting works (either yours or a third
party's), including any code from freeware, shareware, electronic bulletin
boards, or the internet?

                                 Yes |X| No |_|

If YES, please identify the material, author, owner and copyright notice, if
any, for each of the preexisting materials:

Full Intellectual Property and distribution rights.

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

5) Does any of the software material (e.g., Code, associated documentation)
included recognizable voice, pictures, icons or other licenses?

Yes |_| No |X|

If YES, how did you acquire the rights to use such recognizable voices,
pictures, icons and other licenses?

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

6)  Provide as an attachment, an explanation of any other circumstance which
might affect TIVOLI/IBM's ability to reproduce, distribute and market this
software material, including whether your software material was prepared from
any preexisting materials which have any: (a) confidentiality oR trade secret
restrictions to others; (b) known or possible royalty obligations to others; (c)
used other preexisting materials developed for another party or customer
(including government) where you may not have retained full rights to such other
preexisting materials.

7) You recognize that, for copyright registration or enforcement of legal rights
relating to the furnished software material, TIVOLI/IBM may need you to produce
additional information related to the software material.  You hereby agree to
cooperate with TIVOLI/IBM and provide such information to TIVOLI/IBM at
TIVOLI/IBM's request.  As an authorized representative of your company, you
hereby certify the above to be true and accurate.

By: /s/ Rajiv Enand
    ------------------------------------
           (Authorized Signature)

Name: Rajiv Enand
      ----------------------------------
      (Type or Print)            (Date)

Title: CEO
       ---------------------------------

Tivoli SW SDMP                        -15-                               7/27/99

<PAGE>   27

               Attachment - Tivoli Development License Agreement

                                     Tivoli

                         Development License Agreement

Tivoli Systems Inc. ("Tivoli(R)") is committed to working with third-party
vendors to provide customers with the highest quality products that increase
customer satisfaction. ServiceWare, Inc., ("Developer") is a commercial company
whose primary business is the development and marketing of software. Tivoli
recognized the benefit of licensing Tivoli integration toolkits, as described in
Attachment A (referred to as "Licensed Materials"), to Developer to facilitate
its development and marketing of code which enables Developer's software to
operate in conjunction and be compatible with Tivoli Software.

DEFINITIONS

Tivoli Documentation- Tivoli software manuals included in the Tivoli integration
toolkits.

Tivoli Runtime Components - software libraries and event adapters, in binary
executable form or source interpretable form, more specifically described in the
Tivoli Documentation current at the time of delivery of such Runtime Components,
which are delivered under this Agreement and (ii) those copyright scripts which
Tivoli provides to Developer under this agreement and/or which Developer adapts
through Developer's use of the Tivoli integration toolkits.

Tivoli Runtime Documentation- samples which Tivoli provides to Developer under
this agreement, more specifically described in the Tivoli Documentation and
which standardize delivery of Documentation for Developer's Applications.

Module- code developed through the use of the Licensed Materials which enables
the Developer's Application(s) to operate in conjunction and be compatible with
the Tivoli Platform.

First Level Support- collecting problem information from Customers, duplication
of problem symptoms, and supplying corrections, patches, and workarounds where
these exist.

Second Level Support- problem research to determine the nature of problems and
development of workarounds to allow Customers to avoid problems.

Third Level Support- correction of software documentation to resolve the
problem, and the creation of patches to resolve serious problems.
--------------------------------------------------------------------------------

1. LICENSE GRANT

Tivoli grants Developer a license to use the Licensed Materials as defined by
this agreement and any instruction included with the Licensed Materials.

1.1   The Licensed Materials are copyrighted and licensed to the Developer--not
      sold. Tivoli does not transfer title to the Licensed Materials to
      Developer. Developer obtains no rights to the Licensed Materials other
      than those granted under this license.

1.2   Under this license, Developer:

      a.    may use the Licensed Materials solely to develop, test, and
            demonstrate Module(s) that operate in conjunction, and are
            compatible, with Tivoli software; The Developer may not use, copy,
            merge, or transfer the Licensed Materials or modify the Software,
            except as provided in this Agreement;

      b.    may use the Licensed Materials on up to four (4) servers and four
            (4) clients per server at each licensed location identified in
            Attachment B--with a limit of three locations per license;

      c.    may make copies of the Licensed Materials for backup purposes at
            each designated location in Attachment B, provided Developer
            reproduces the copyright notice and any other legend of ownership on
            each such copy or partial copy;

      d.    may prepare derivative works (i) of the Runtime Components as
            specified in Attachment A only as necessary to produce Module(s) in
            accordance with the instructions indicating how to create restricted
            run-times in Module(s); and (ii) of the "Runtime Documentation" as
            specified in Attachment A;

      e.    may reproduce and distribute the Runtime Components in binary
            executable form, and the Runtime Documentation, but solely as
            integrated into one or more Module(s). Distribution is pursuant only
            to a license that:

            1.    prohibits the end user from attempting to decipher, decompile,
                  or disassemble the Runtime Components, except to the extent
                  applicable laws specifically prohibit such restriction;

            2.    includes statements that the Module(s) is copyrighted and
                  licensed; it is not sold, and Developer does not pass title to
                  the program;

            3.    disclaims all implied warranties. This disclaimer will include
                  the implied warranties of non-infringement, merchantability,
                  and fitness for a particular purpose; and,

            4.    states, in comparable words, "The collective liabilities of
                  the seller/licensor and its third party suppliers are subject
                  to the limitation of liabilities described in this agreement.
                  Third

Tivoli SW SDMP                        -17-                               7/27/99

<PAGE>   28

                  party suppliers disclaim all liability for consequential or
                  other indirect damages. The third party supplier is an
                  intended beneficiary of these limitations and disclaimers, and
                  the limitation of liabilities for seller/licensor and its
                  suppliers are not cumulative

      f.    will indemnify, hold harmless, and defend Tivoli and its suppliers
            from and against any claims or lawsuits, including damages and
            attorneys fees, that arise from the distribution and development of
            Module(s);

      g.    may not reverse assemble, reverse compile, or otherwise translate
            the Software except as specifically permitted by law without the
            possibility of contractual waiver; or

      h.    may not make any statements to the effect or which imply that any
            Module(s) is "certified" or otherwise endorsed by Tivoli, or that
            such Module(s)'s performance is guaranteed by Tivoli unless
            certification by Tivoli is achieved. Certification will be governed
            under a separate mutually agreeable Certification Agreement;

      i.    may not sublicense, rent, or lease the Licensed Materials.

2.    LICENSE FEES

In consideration for the license rights granted herein, Developer will pay
Tivoli the fees specified in Attachment A. If Developer increases the number of
machines on which the Licensed Materials will be used, or changes or adds
Locations, Developer agrees to notify Tivoli and pay applicable charges.

3.    SUPPORT SERVICES FEES

3.1   Tivoli will provide to Developer, for the annual fees specified in
      Attachment A, its extended maintenance & support plan. This includes:

      a.    any updates, upgrades, extensions, modifications, patches, and bug
            fixes (collectively referred to as "Updates") to the Licensed
            Materials made generally available by Tivoli;

      b.    First, Second, and Third Level Support via Tivoli Customer Support
            for the installation and use of Licensed Materials via telephone,
            fax, and e-mail. Service is available 24 hours a day, seven days a
            week, except Tivoli Holidays; and,

      c.    Tivoli's on-line Developers Forum for development assistance with
            Module(s) and Licensed Materials.

3.2   In addition, Developer may be eligible to receive beta and/or limited
      available products (collectively referred to as "Early Release Products")
      as they become available for applicable products that comprise the set of
      Licensed Materials. Tivoli licenses such Updates & Early Release Products
      to Developer under the terms of Section 1 of this Agreement.

4.    DEVELOPER RESPONSIBILITIES

4.1   Developer agrees to remit payment of fees for the Licensed Materials as
      specified in Attachment A herein.

4.2   Developer is responsible for the payment of any taxes resulting from this
      Agreement.

4.3   Developer will use commercially reasonable efforts to ensure that
      Module(s) does not contain "viruses" or other harmful code. Developer will
      test Module(s) in a manner consistent with industry standards and will use
      commercially reasonable efforts to fix any problems prior to making them
      commercially available. Developer agrees that any Module(s) will be equal
      to or greater in quality than Developer's applications on other platforms.

4.4   Developer will provide First, Second, and Third Level technical support to
      the end users of the Module. Tivoli is not responsible for providing
      support for Module(s) to Developer's end users.

4.5   Upon Tivoli's request, Developer will provide Tivoli with a
      non-confidential business plan covering Developer's use of Tivoli
      technologies.

4.6   Developer grants Tivoli a non-exclusive, worldwide right to use,
      reproduce, display, exhibit, publish, and distribute names, logos, and
      trademarks, solely for the purpose of publicly stating that the Developer
      or a third party develops applications that operate in conjunction with
      and are compatible with Tivoli software. Developer hereby releases Tivoli
      from any and all claims or liabilities whatsoever relating to the names,
      logos, and trademarks, including, without limitation, all claims relating
      to: (i) any unintentional blurring, distortion, or alteration that may
      occur in the production, processing, publication, or distribution of the
      names, logos, and trademarks in any and all media; (ii) the rights of
      publicity, rights of privacy, or similar rights, however described; and
      (iii) the use, reproduction, display, exhibition, publication,
      performance, transformation, and distribution of the names, logos, and
      trademarks in any and all media.

4.7   If Developer provides Tivoli with comments on Licensed Materials, updates,
      services, or materials (collectively referred to as "Feedback") during the
      course of this Agreement, Developer grants Tivoli its permission to use
      the Feedback in any manner whatsoever and without accounting to Developer.

4.8   Developer will retain ownership rights in the Module(s).

5.    TERM AND TERMINATION

5.1   The term of this Agreement is two (2) years from the execution date by
      Tivoli, unless earlier terminated as specified herein:

      a.    Either party may terminate this Agreement without further obligation
            or liability if the other party commits any breach of this Agreement
            and fails to remedy such breach within thirty (30) days after
            written notice by the other party of such breach.

      b.    Tivoli may terminate this Agreement immediately if Developer or a
            substantial portion of its assets are sold, assigned, or otherwise
            transferred to a third party; if Developer is adjudicated a bankrupt
            or makes an assignment for the benefit of creditors; or if Developer
            undergoes a change of control.

Tivoli SW SDMP                                                           7/27/99

                                      -18-
<PAGE>   29

5.2   If the Agreement is terminated, Developer will destroy all copies of the
      Licensed Materials.

5.3   Termination or expiration of this Agreement does not affect previously
      granted paid-up rights and licenses to Developer's end users for so long
      as they remain in compliance with Developers and user license agreements.

5.4   Any terms of this Agreement that by their nature extend beyond termination
      or expiration will survive.

6.    NO WARRANTY

SUBJECT TO ANY STATUTORY WARRANTIES WHICH CANNOT BE EXCLUDED, TIVOLI MAKES NO
WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, WARRANTIES
OF NON-INFRINGEMENT AND THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS
FOR A PARTICULAR PURPOSE. CONCERNING THE FUNCTION, PERFORMANCE, OR DOCUMENTATION
FOR THE LICENSED MATERIALS.

Other than as specified in Section 3, Tivoli has no obligation to provide
service, software updates, defect correction, or any maintenance for Licensed
Materials, even if such are or later become available.

7.    NO LIABILITY

TIVOLI WILL NOT BE LIABLE FOR DIRECT OR INDIRECT DAMAGES, INCLUDING, WITHOUT
LIMITATION, LOST PROFITS, LOST SAVINGS, OF ANY INCIDENTAL, SPECIAL, OR INDIRECT
DAMAGES OR OTHER ECONOMIC CONSEQUENTIAL DAMAGES, EVEN IF TIVOLI IS INFORMED OF
THEIR POSSIBILITY. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OR LIMITATION
OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE EXCLUSION OR LIMITATION MAY
NOT APPLY TO DEVELOPER.

8.    CONFIDENTIAL INFORMATION

Tivoli & Developer hereby establish these terms and conditions governing the use
and protection of confidential information ("Confidential Information") one
party ("the Disclosing Party") provides or discloses to the other party ("the
Receiving Party"):

8.1   The Licensed Materials and any technical support provided by Tivoli shall
      be considered Confidential Information of Tivoli. Developer agrees not to
      disclose such Confidential Information without Tivoli's prior consent.
      Developer understands that Confidential Information is subject to change
      by Tivoli at any time without notice and agrees that Developer will not
      hold Tivoli responsible for any reliance Developer places on Confidential
      information

8.2   Subsequent to disclosures by either party, the Receiving Party shall have
      a duty to protect only that Confidential Information which is:

      a.    first disclosed by the Disclosing Party in tangible form and is
            conspicuously marked as "Confidential", or the like, at the time of
            disclosure; or,

      b.    disclosed by the Disclosing Party in non-tangible form and orally
            identified as confidential at the time of disclosure, and is
            summarized in tangible form conspicuously marked as "Confidential",
            or the like, and delivered to the Receiving Party's representative
            within thirty (30) days of the original disclosure.

8.3   Receiving Party will treat the Confidential Information with the same care
      and discretion to avoid disclosure, publication, or dissemination as
      Receiving Party uses with its own similar Information. No obligation of
      confidentiality will apply to any Information that (I) Receiving Party
      already possesses or rightfully receives from a third party, (II)
      Receiving Party develops independently, or (iii) becomes publicly
      available without breach of this Agreement.

8.4   The Receiving Party shall adhere to the U.S. Export Administration laws
      and regulations and shall not export or re-export any Confidential
      Information or technical data or products received from the Disclosing
      Party or the direct product of such Confidential Information or technical
      data to any prescribed country listed in the U.S. Export Administration
      Regulations unless properly authorized by the U.S. Government.

8.5   The duty to protect Confidential Information disclosed in performance of
      this Agreement expires five (5) years after execution of this Agreement,
      which duly shall survive the earlier expiration or termination of this
      Agreement. Should Developer participate in the subsequent Certification
      Program, Confidential Information disclosed hereunder will convey to the
      certification agreement (hereinafter certification Agreement") and
      treatment thereof will be in accordance with the Certification Agreement.

8.6   Other than as indicated above, any information disclosed under this
      Agreement will be considered non-confidential.

9.    GENERAL

9.1   All payments by Developer to Tivoli pursuant to this Agreement shall be
      made in U.S. dollars by wire transfer to the bank and account number
      specified below, or such other places as Tivoli may from time to time
      specify by notice to Developer:

      Texas Commerce Bank, Austin, Texas
      ABA #114921172
      Account of Tivoli Systems #09911802545

9.2   Each party is an independent contractor and will be responsible for the
      direction and compensation of its own employees. Each party is free to
      have similar agreements with others and offer products competitive to
      those covered by this Agreement. Each party will independently set the
      prices for its own products.

                                      -19-
<PAGE>   30

9.3   Each party will identify coordinators who will represent such party for
      various aspects of this Agreement and will notify the other party if these
      coordinators change.

9.4   Tivoli may, on written notice, modify, withdraw, or otherwise change the
      prices and terms of services provided under this Agreement, including the
      Licensed Materials specified in Attachment A.

9.5   Tivoli encourages Developer to participate in Tivoli's certification
      program (available under a separate agreement). This Agreement does not,
      however, grant Developer any rights in any of Tivoli's patents,
      copyrights, trademarks, trade names, or service marks.

9.6   Developer may not sell, transfer, assign, or subcontract any of its rights
      or obligations under this license. Any attempt to do so is void.

9.7   Developer agrees not to download or otherwise export or re-export the
      Licensed Materials or any underlying information or technology except in
      full compliance with the United States and other applicable laws and
      regulations.

9.8   Use, duplication, or disclosure by the Government is subject to the terms
      and conditions in the GSA ADP schedule with IBM.

9.9   This Agreement is governed by the laws of the State of New York, without
      regard to its conflicts of laws and provisions. Each party waives its
      rights to a jury trial in any litigation. Litigation will only be
      commenced in the State of New York.

            Neither party will bring a claim under this Agreement more than two
            (2) years after the claim arose.

9.10  This Agreement represents the entire agreement between the parties and
      supersedes all prior agreements on the subject. Except as set forth in
      Section 8.2, this Agreement can only be modified by a writing signed by
      both parties. Failure by either party to insist on performance does not
      prevent such party from doing so at a later time.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized representatives.

Tivoli Systems, Inc. ("Tivoli")           ServiceWare, Inc. ("Developer")

/s/ Jodie Slifka                          /s/ Rajiv Enand
------------------------------------      --------------------------------------
Authorized Signature                      Authorized Signature

Jodie Slifka                              Rajiv Enand
------------------------------------      --------------------------------------
Name                                      Name

Contract Manager                          CEO
------------------------------------      --------------------------------------
Title                                     Title

9442 Capital of Texas Highway North       333 Allegheny Avenue
Austin, Texas 78759                       Oakmont, PA 15199

8/3/99                                    8/3/99
------------------------------------      --------------------------------------
Date                                      Date

                                      -20-
<PAGE>   31

                                  ATTACHMENT A

Check Here |_| Tivoli Service Desk Integration Toolkit Bill og Material and Fees

Part Number      Description
-----------      -----------
Fee
---
5697-TSD         Tivoli Service Desk SDK
                 Consisting of current release of the following Licensed
                 Materials (software and documentation):

                 Tivoli Asset Management
                 Tivoli Problem Management
                 Tivoli Change Management
                 Tivoli Service Desk Enterprise Interface
                 Tivoli Service Desk  Developer's Toolkit
                 Two (2) Annual Maintenance (Section 2) Included in fee above,
                 $500 each year.

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

Version 2.0                         Page 21                Agreement # TBBXXX-OO
                                                                  August 2, 1999

<PAGE>   32

                                  Attachment B
                               Licensed Locations

As allowed in Section 1.2.b herein, the Licensed Materials will be used at
Developer's following location(s):
(To be completed by Developer)

Loocation 1

333 Allegheny Avenue
Oakmont, PA 15139

Version 2.0                         Page 22                Agreement # TBBXXX-00
                                                                 August 2, 1999

<PAGE>   33

Public Sector Attachment
--------------------------------------------------------------------------------

This Public Sector Attachment is considered part of the Agreement. It
establishes additional terms and conditions under which TIVOLI/IBM may, at its
sole discretion, market and license your Products and Services to Public Sector
customers under your End User License at prices established by TIVOLI/IBM.
Public Sector customers include federal government, federal government owned or
affiliated (or sponsored) corporations or other organizations involved in
federal government procurement activities, including but not limited to
organizations that are authorized to procure using IBM's General Services
Agreement (GSA) Schedule Contract, or equivalent documentation, and prime
contractors and subcontractors who are engaged in federal government procurement
opportunities. Though actual usage of the Products may occur outside the
geographical boundaries of the Public Sector's home country, such as embassies,
the end user will be bound by the end user license agreement agreed to by the
Public Sector's home country. If the terms of this Attachment conflict with any
terms of the SRA, the terms of this Attachment will prevail.

When TIVOLI/IBM markets your Products to Public Sector customers, the following
additional terms apply:

1. Any limited license, limited preview, trial or demonstration use of the
Products may be offered to Public Sector customers under the terms of the
TIVOLI/IBM Agreement for Trial or Loan - Federal, or a similar TIVOLI/IBM
agreement, rather than your End User License or your Trial License Agreement.

2. Once the Public Sector customer has decided to procure your Products,
TIVOLI/IBM will attempt to have the Public Sector customer directly execute your
End User License. In the event the Public Sector customer insists on one
contracting party, you authorize TIVOLI/IBM to offer your End User License to
the Public Sector customer such that TIVOLI/IBM and the customer will be the
parties to the license. In such cases, you agree that the license terms are
inapplicable to TIVOLI/IBM, but rather govern the Public Sector customer's use
of your Products.

3. You agree that your End User License terms may be modified as directed by the
procurement rules and regulations of the Public Sector customer or as otherwise
appropriate.

4. Specifically for Public Sector customers in the United States whose
procurement is governed by the Federal Acquisition Regulation ("FAR"), you
agree:

-     that the Public Sector customer's use of the Products shall be subject to
      FAR 12.212. If for any reason 12.212 is inapplicable, you further agree:

o (a) the minimum rights granted to such customers is that specified in the
Restricted Rights Notice 52.227-14(JUN 1987);

o (b) the Products TIVOLI/IBM is authorized to market and license to Public
Sector customers are published copyrighted commercial computer software meeting
the definition of "Restricted computer software" as defined in FAR 52.227-14(JUN
1987). Such Products also meet the definition of Commercial item as defined in
FAR 2.101(AUG 1996).

o (c) you agree to the following clauses which must be contained in all
TIVOLI/IBM subcontracts:

-     (i) FAR 52.226-26, Equal Opportunity

-     (ii) FAR 52.222-38, Affirmative Action for Handicapped Workers;

-     (iii) FAR 52.222-35, Affirmative Action for Special Disabled and Vietnam
      Era Veterans; and

-     (iv) FAR 52.247-64, Preference for Privately Owned U.S. Flagged Commercial
      Vessels.

o (d) You agree to accurately notify TIVOLI/IBM whether your Products are
domestic end products for purposes of the Buy American Act (BAA), the Trade
Agreements Act (TAA) and related Public Sector statutes and regulations. For
purposes of this subparagraph, a domestic end product which is software consists
of Products as to which the country of media replication, the country of
printing of publications for such Products and the final assembly of such media
and related publications into the Products, completely occurs in the United
States.

5. Insofar as disputes are concerned, you agree that TIVOLI/IBM may resolve
disputes with Public Sector customers in accordance with those customers' own
disputes resolution procedures.

6. In addition to the warranties set forth in the Agreement, you hereby
represent and warrant that you have all the rights to allow TIVOLI/IBM to market
and license your Products to Public Sector customers. You warrant that you are
not suspended or debarred from doing business with any Public Sector customer.

7. To the extent required by regulation or statute, you are to provide
supporting data including that with respect to your Products' pricing, location
of manufacture, and commerciality.

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

Version 2.0                         Page 23                Agreement # T98XXX-00
                                                                  August 2, 1999
<PAGE>   34

Attachment - Confidential Disclosure Agreement CDA #9903640

This Agreement will provide protection for information to be exchanged between
us which we do not wish to become public ("Information") while maintaining our
ability to conduct our respective business activities. Each of us agrees that
the following terms will apply when one of us or its Affiliate ("Discloser")
discloses Information to the other or its Affiliate ("Recipient") under this
Agreement. "Affiliates" means entities that control, are controlled by, or are
under common control with a party to this Agreement.

1.0 Disclosure

Each time Discloser wishes to disclose specific Information to Recipient, or
wishes to engage in multiple disclosures relating to a specific subject matter,
Discloser will issue a supplement to this Agreement ("Supplement") before
disclosure. The Supplement will contain initial and final disclosure dates, a
non-confidential description of the Information to be disclosed and any
additional or different terms and conditions. The Supplement must be signed by
the Discloser and the Recipient. Information may be disclosed by: (i)
presentation; (ii) delivery; (iii) authorized access, such as to a data base; or
(iv) any other express means. Information must be identified as confidential at
the time of disclosure, and all materials containing Information must have a
restrictive marking. The Discloser will not disclose any Information not
described in a signed Supplement or which Discloser does not have the right to
disclose to the Recipient. For two (2) years after the date of disclosure, the
Recipient will use the same care and discretion to avoid disclosure of the
Discloser's Information as the Recipient uses with its own similar information
which it does not wish to disclose. Subject to this obligation, the Recipient
may use Discloser's Information for any purpose.

2.0 Exceptions

The Recipient may disclose Discloser's Information to: (i) its employees and
contractors, and employees and contractors of an Affiliate, who have a need to
know; and (ii) any other party with the Discloser's prior written consent. Upon
request of the Recipient, the Discloser may make disclosures directly to such
parties on behalf of the Recipient. Prior to any such disclosure or such request
by Recipient, the Recipient must have an appropriate agreement with any such
party sufficient to require the party to treat Information in accordance with
this Agreement. The Recipient may disclose Information to the extent required by
law, but must give the Discloser reasonable prior notice to allow the Discloser
an opportunity to obtain a protective order. Notwithstanding the foregoing, no
obligation will apply to Information that is: (i) already rightfully in the
Recipient's possession or rightfully received by the Recipient without a
nondisclosure obligation; (ii) developed independently by the Recipient; (iii)
publicly available when received, or thereafter becomes publicly available
through no fault of the Recipient; (iv) disclosed by the Discloser without a
signed Supplement as required by Section 1; (v) disclosed by the Discloser to a
third party without a nondisclosure obligation; or (vi) inherently disclosed by
the Recipient in the use, distribution or marketing of any product or service.

3.0 Disclaimers

THE DISCLOSER PROVIDES INFORMATION SOLELY ON AN "AS IS" BASIS. Neither this
Agreement, nor any disclosure of Information hereunder, in any way: (i) grants
to either of us or our Affiliates any right or license under any copyright,
patent, mask work or trademark now or hereafter owned or controlled by the
other; (ii) obligates either of us or our Affiliates to disclose or receive any
Information, perform any work, enter into any license, business engagement or
other agreement; (iii) limits either of us or our Affiliates from developing,
manufacturing or marketing products or services which may be competitive with
those of the other; (iv) limits either of us or our Affiliates from assigning or
reassigning its employees in any way; (v) creates any joint relationship or
authorizes either of us or our Affiliates to act or speak on behalf of the
other; or (vi) limits either of us or our Related Companies from entering into
any business relationship with any other parties.

4.0 General

Neither of us may assign or otherwise transfer our rights or delegate our duties
or obligations under this Agreement without the prior written consent of the
other. Any attempt to do so will be void. The Recipient must comply with all
applicable United States and foreign export laws and regulations. Only a written
agreement signed by both of us can modify this Agreement. Either of us may
terminate this Agreement by providing one month's written notice to the other.
Any provisions of this Agreement which by their nature extend beyond its
termination remain in effect until fulfilled and apply to our respective
successors and authorized assigns. If there is a conflict between the terms of
this Agreement and a Supplement, those of the Supplement will prevail for that
disclosure. This Agreement is governed by the laws of the country in which the
disclosure occurs, except: (i) in Australia, this Agreement will be

Version 2.0                         Page 24                Agreement # T98XXX-00
                                                                  August 2, 1999

<PAGE>   35

governed by the laws of the State or Territory in which the disclosure occurs:
(ii) in Central Europe and Russia, this Aggreement will be governed by the laws
of Austria; (iii) in Estonia, Latvia, and Lithuania, Finnish law will apply;
(iv) in Canada, the laws of the Province of Ontario govern this Agreement: and
(v) in the United States (including if any part of the disclosure is performed
within the United States or if the Information is of United States origin) and
Puerto Rico, and Peoples Republic of China, the laws of the State of New York
govern this Agreement. Any reproduction of this Agreement by reliable means will
be considered an original of this Agreement This Agreement, including any
Supplements, is the complete and exclusive agreement regarding our disclosures
hereunder.

ACCEPTED AND AGREED TO:                   ACCEPTED AND AGREED TO
Tivoli Systems, Inc.                      Service West, Inc.
(a wholly owned subsidiary of IBM)

By: Jodie Slifka                          By: Rajiv Enand
--------------------------------------    --------------------------------------
Signature /s/ Jodie Slifka Date 8/3/99    Signature /s/ Rajiv Enand  Date 8/3/99
--------------------------------------    --------------------------------------

--------------------------------------    --------------------------------------
Jodie Slifka
--------------------------------------    --------------------------------------
Printed Name                              Printed Name  Rajiv Enand
--------------------------------------    --------------------------------------

Contract Manager                          CEO ServiceWare
--------------------------------------    --------------------------------------
Title and Organization                    Title and Organization

TIVOLI SYSTEMS INC
--------------------------------------    --------------------------------------
Address:                                  Address:
9442 Capital of Texas Highway N.          333 Allegheny Avenue
Austin, TX 78759                          Oakmont, PA 15139

Version 2.0                         Page 25                Agreement # TBBXXX-OO
                                                                  August 2, 1999

<PAGE>   36

With respect to the Information identified below, the terms and conditions in
the referenced agreemetn, as modified by any terms and conditions identified
below, will apply to disclosures hereunder:

Disclosure: |X| Tivoli/IBM |X| You

Initial disclosure date: Mutual date of execution

Final disclosure date: 07-22-2001
                      -----------

Non-confidential description of Information to be disclosed:

Tivoli Systems Inc. and ServiceWare Corporation to hold discussions on
technologies and products for next generation products.

Specific items to be shared: product information, pricing, roadmap,
compatabilities and other financial data as required.

Additional of different terms and conditions (if any):

This supplement and the referenced agreement are the complete and exclusive
agreement regarding disclosures hereunder.

AGREED AND ACCEPTED TO:                      AGREED AND ACCEPTED TO:
Tivoli Systems, Inc.
(a wholly owned subsidiary of IBM)

By:                                          By:
----------------------------------           -----------------------------------
Signature           Date                     Signature           Date
----------------------------------           -----------------------------------

----------------------------------           -----------------------------------
Printed Name                                 Printed Name
----------------------------------           -----------------------------------

----------------------------------           -----------------------------------
Title and Organization                       Title and Organization
----------------------------------           -----------------------------------

----------------------------------           -----------------------------------
Address:                                     Address:
9442 Capital of Texas Highway N.             333 Allegheny Avenue
Austin, TX 78759                             Oakmont, PA 15139

Version 2.0                         Page 26                Agreement # TBBXXX-OO
                                                                  August 2, 1999<PAGE>   1

Confidential portions of this Exhibit have been omitted and are identified by
square brackets ([]) and three asterisks (***). Such material has been
separately filed with the Securities and Exchange Commission pursuant to a
request for confidential treatment.

                                                                    Exhibit 10.9

                             MICROSOFT CORPORATION
                  SERVICEWARE KNOWLEDGE BASE LICENSE AGREEMENT

     This ServiceWare Knowledge Base License Agreement ("Agreement") is entered
into as of the 29th day of June, 1998 (the "Effective Date") by and between
Microsoft Corporation, a Washington corporation, located at One Microsoft Way,
Redmond, Washington 98052 ("Microsoft") and ServiceWare Incorporated, located
at 333 Allegheny Avenue, Oakmont, Pennsylvania 15139, a Pennsylvania
corporation ("Company").

     WHEREAS, Company has a product which consists of structured technical
support articles, which relate to Microsoft and other third party products and
which are targeted at end users in the corporate help desk, home use and small
business markets (collectively referred to herein as "Knowledge Pak");

     WHEREAS, Company will provide portions of the Knowledge Pak to Microsoft
which consist of (a) articles pertaining primarily to Microsoft products and
(b) articles originally obtained from Microsoft and subsequently modified by
Company (collectively referred to herein as the "ServiceWare Knowledge Base");

     WHEREAS, Company will provide the ServiceWare Knowledge Base to Microsoft
via download over an FTP site on the Internet or via CD format; and

     WHEREAS, Microsoft wishes to license such ServiceWare Knowledge Base for
use with on-line support in accordance with the terms of this Agreement.

     THEREFORE, the parties agree as follows:

1. License Grant.

     a. Company grants to Microsoft and its service providers and other
outsourcing vendors (collectively referred to as "Contractors") a
non-exclusive, worldwide, fully-paid, [***] license to make, use, copy, adapt,
display, broadcast, transmit, distribute the ServiceWare Knowledge Base, in
whole or in part, for Microsoft internal use only.

     b. Company grants to Microsoft and its Contractors a non-exclusive,
worldwide, [***] license (i) to make, use, copy, adapt, publicly perform or
display, import, broadcast, transmit and/or distribute the ServiceWare Knowledge
Base, in whole or in part, for use solely in combination with other information
in providing support online via Microsoft's designated support website(s),
including but not limited to the website located at http://microsoft.com, and
(ii) to sublicense end users of the designated support website(s) the right to
internally use, copy, display, import, transmit and/or distribute on a perpetual
basis those portions of the ServiceWare Knowledge Base obtained by such end
users from the designated support website(s). Microsoft will not remove or
otherwise change any usual disclaimers, copyright notices, trademarks or other
protective notices or hyperlinks on the ServiceWare Knowledge Base licensed to
Microsoft pursuant to this Section. Microsoft acknowledges that the ServiceWare
Knowledge Base will be presented to end users in conjunction with other third
party support content and that Microsoft will not provide a predefined search to
the end users for accessing the ServiceWare Knowledge Base apart from such third
party content, including without limitation the terms "ServiceWare" and
"Knowledge Pak".

     c. Company also grants to Microsoft and its Contractors a license during
the term of this Agreement, in connection with use, distribution or promotion
of the ServiceWare Knowledge Base as indicated in Section 1(a) and 1(b), the
worldwide rights to use the Company's name, trademark(s), trade name(s) and/or
logos and to advertise or promote the same in all such media. Notwithstanding
the foregoing, Microsoft shall have no obligation to promote the ServiceWare
Knowledge Base or Company. If Microsoft uses Company's name, trademark(s),
trade name(s) and/or logos in any medium, other than Microsoft internal use or
providing support online, as indicated in Section 1(b), then all such use will
be subject to Company's approval, which approval shall not be unreasonably
withheld.

     d. All rights in the ServiceWare Knowledge Base not expressly granted
herein are reserved by COMPANY.

                                       1
<PAGE>   2
2. Delivery and Acceptance. Company shall deliver the ServiceWare Knowledge
Base to Microsoft no later than _________________, 1998 and all Updates thereto
pursuant to section 3 below. Upon the delivery of the ServiceWare Knowledge Base
and the Updates thereto to Microsoft, Company shall deliver a report accurately
identifying the source of the information contained in the deliverable and if
such information was obtained from publicly available sources under license
grant, through fair use or otherwise (each a "Source Report"). Microsoft shall
have the right to review and approve the ServiceWare Knowledge Base and any
Updates thereto as specified in Section 3 below. If for any reason within
forty-five (45) days of Microsoft's receipt of the ServiceWare Knowledge Base or
any Updates thereto as specified in Section 3 below, Microsoft determines the
ServiceWare Knowledge Base does not meet its acceptance criteria, Microsoft will
return the ServiceWare Knowledge Base or any Updates to Company and Company
shall correct the ServiceWare Knowledge Base or Updates in a form that is
acceptable to Microsoft. Microsoft's acceptance criteria shall be comprised of
the ServiceWare Knowledge Base performing in accordance with (i) the supporting
end user documentation, (ii) the representations and warranties set forth
herein, and (iii) the Updates (as defined in Section 3 below) of the ServiceWare
Knowledge Base containing sufficient breath and depth regarding the use and
usability of Microsoft products and related software and hardware to be no less
than that contained in the ServiceWare Knowledge Base as of the Effective Date.

3. ServiceWare Knowledge Base Updates. Company agrees to provide Microsoft with
commercially available updates, including but not limited to updated articles
and new articles to the ServiceWare Knowledge Base (collectively "Updates"), no
less than once every three (3) months after the Effective Date and will be
provided to Microsoft for download via an FTP site on the Internet and/or via CD
or other media.

4. Payment. In consideration of the license rights and delivery of the Updates
provided under the terms of this Agreement, Microsoft shall pay Company the
amount of [***] which shall be paid as follows:

     a. [***] will be paid for the initial year of the Agreement upon (a) the
Effective Date of this Agreement or (b) upon delivery and Microsoft's acceptance
of the ServiceWare Knowledge Base, whichever occurs later.

     b. [***] will be due upon the one year anniversary following the Effective
Date.

     c. For each subsequent extension, as may be agreed upon by the parties as
set forth in Section 8(e) below, Microsoft shall pay Company no more than the
amount of [***]

Company shall supply Microsoft with a written invoice for all amounts due under
this Agreement, the payment terms of which shall be net thirty (30) days from
Microsoft's receipt of such invoice, unless otherwise noted in this Section.

5. Company's Obligations, Representations and Warranties.

     a. Company warrants and represents that the ServiceWare Knowledge Base
provided to Microsoft by Company under this Agreement is not regulated for
export purposes under the International Traffic in Arms Regulations (ITAR) and
that such ServiceWare Knowledge Base is subject to a general license under
Export Administration  Regulations and as such no license is required. If at any
time during the term of this Agreement the above statements are no longer
accurate, Company will notify Microsoft in writing of such change in
classification within twenty-four (24) hours of its knowledge of that
inaccuracy.

     b. Company warrants that (i) it has sufficient authority to enter into
this Agreement, (ii) it possesses full authority to grant all licenses and
rights conveyed herein and to perform all covenants and duties specified herein;
and (iii) the ServiceWare Knowledge Base (A) does not infringe upon any
copyright held by any third party; (B) does not contain any encryption/encrypted
technology; and (C) to the best of Company's knowledge, after conducting
generally acceptable quality control checks and reasonable due diligence of the
ServiceWare Knowledge Base, the ServiceWare Knowledge Base provided to Microsoft
by

                                       2
<PAGE>   3
Company will contain no libelous, defamatory or false or misleading statements,
will not infringe any trade secret or right of privacy or publicity held by any
third party and does not violate any state or federal laws or regulations in the
United States; and (iv) at the time of delivery to Microsoft, the ServiceWare
Knowledge Base and Updates thereto provided to Microsoft, will perform
substantially in accordance with the applicable end user documentation.

The representations and warranties contained in this Section 5 are continuous in
nature and shall be deemed to have been given by Company at execution of this
Agreement and at each delivery of the ServiceWare Knowledge Base and any updates
provided under Section 3 thereto. These representations and warranties shall
survive termination or expiration of this Agreement.

     c.   EXCEPT AS SET FORTH IN THIS SECTION 5, COMPANY HEREBY DISCLAIMS ALL
OTHER WARRANTIES REGARDING THE SERVICEWARE KNOWLEDGE BASE, EXPRESS OR IMPLIED,
INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE.

6.   Indemnification.

     a.   Company agrees to indemnify, defend, and hold Microsoft and its
affiliates, and each of their successors, officers, directors and employees
harmless from any damages, costs, liabilities or claims arising out of or in
connection with any action, claim or suit brought against Microsoft that if
taken to be true would be a result of a breach of Company's representations and
warranties set forth in Section 5(b) above (except for Company's breach of its
obligation under Section 2(iii) above to deliver Updates containing sufficient
breath and depth regarding the use and usability of Microsoft products and
related software and hardware, for which this indemnification obligation shall
not apply), provided that Microsoft gives Company (i) written notice of such
claim or suit, (ii) the sole authority to defend and settle the same, provided
that if such settlement shall have a material adverse effect on Microsoft's
rights under this Agreement, Microsoft shall have the right to consent to the
applicability of such settlement agreement to Microsoft, which consent shall not
be unreasonably withheld, and (iii) at Company's expense, any information or
assistance requested by Company in connection with such defense or settlement].
Microsoft may, at its option and at no expense to Company, participate in and/or
observe the defense of such claim or suit.

     b.   If the use of the version of the ServiceWare Knowledge Base provided
to Microsoft by Company under this Agreement is enjoined by an order of a court
of competent jurisdiction or, if Company believes that such an order is likely,
then Company, at no expense to Microsoft, may use reasonable commercial efforts
to (i) procure for Microsoft the right to continue using such version in
accordance with this Agreement or (ii) modify such version so that it becomes
non-infringing. If (i) or (ii) above are not available to Company, Company shall
refund to Microsoft all amounts paid to Company by Microsoft hereunder during
the prior twelve (12) month period without limiting any other rights or remedies
available to Microsoft. Company shall have no liability for any damages
resulting from any infringement claim after providing written notice to
Microsoft that it should cease such activity due to such a claim if Microsoft
does not cease such activity.

     c.   Company shall have no liability under any provision of this Agreement,
including without limitation the indemnification provisions set forth in this
Section 6, with respect to (i) any performance problem or claim of infringement
to the extent directly attributable to the Licensed Materials (as defined in the
Non-Exclusive License Agreement (as defined below)) provided by Microsoft to
Company under the terms of that certain Non-Exclusive License Agreement between
Microsoft and Company of even date herewith (the "Non-Exclusive License
Agreement") or (ii) Microsoft's improper modification to the informational
content contained in the ServiceWare Knowledge Base.

7.   Disclaimer of Damages and Limitation of Liability.

     a.   IN NO EVENT WILL MICROSOFT, ITS AFFILIATES, CONTRACTORS OR SUPPLIERS
BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, PUNITIVE OR CONSEQUENTIAL
DAMAGES WHATSOEVER (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF BUSINESS
PROFITS, BUSINESS INTERRUPTION, LOSS OF BUSINESS INFORMATION, OR ANY

                                       3

<PAGE>   4
OTHER PECUNIARY LOSS) ARISING OUT OF THIS AGREEMENT, EVEN IF THEY HAVE BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

     b.   EXCEPT AS SPECIFICALLY PROVIDED IN THE FOLLOWING SENTENCE, IN NO
EVENT WILL COMPANY BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, PUNATIVE OR
CONSEQUENTIAL DAMAGES WHATSOEVER (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR
LOSS OF BUSINESS PROFITS, BUSINESS INTERRUPTION, LOSS OF BUSINESS INFORMATION,
OR ANY OTHER PECUNIARY LOSS) ARISING OUT OF THIS AGREEMENT, EVEN IF THEY HAVE
BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE EXCLUSION OF LIABILITY FOR
CERTAIN TYPES OF DAMAGES PROVIDED IN THE PRECEDING SENTENCE SHALL NOT APPLY TO
INCIDENTAL, CONSEQUENTIAL, INDIRECT, SPECIAL OR PUNITIVE DAMAGES ARISING FROM
COMPANY'S BREACH OF ANY OF THE REPRESENTATIONS OR WARRANTIES SET FORTH IN
SECTION 5(b) ABOVE (EXCEPT FOR COMPANY'S BREACH OF ITS OBLIGATION UNDER SECTION
2(iii) ABOVE TO DELIVER UPDATES CONTAINING SUFFICIENT BREATH AND DEPTH
REGARDING THE USE AND USABILITY OF MICROSOFT PRODUCTS AND RELATED SOFTWARE AND
HARDWARE, FOR WHICH THE DISCLAIMER OF DAMAGES AS STATED IN THE PRECEDING
SENTENCE SHALL APPLY).

     c.   IN NO EVENT SHALL THE TOTAL LIABILITY OF MICROSOFT OR ANY OF ITS
AFFILIATES, CONTRACTORS OR SUPPLIERS UNDER THIS AGREEMENT, WHETHER FOR TORT
(INCLUDING NEGLIGENCE AND GROSS NEGLIGENCE), STRICT LIABILITY, BREACH OF
CONTRACT, BREACH OF WARRANTY OR OTHERWISE, IN THE AGGREGATE, EXCEED THE SUM OF
SEVEN HUNDRED FIFTY THOUSAND DOLLARS (US$750,000.00) UNDER THIS AGREEMENT.

     d.   IN NO EVENT SHALL THE TOTAL LIABILITY OF COMPANY UNDER THIS
AGREEMENT, WHETHER FOR TORT (INCLUDING NEGLIGENCE AND GROSS NEGLIGENCE), STRICT
LIABILITY, BREACH OF CONTRACT, BREACH OF WARRANTY OR OTHERWISE, IN THE
AGGREGATE, EXCEED THREE MILLION DOLLARS (US$3,000,000), PLUS ANY AMOUNTS
EXPENDED DEFENDING AGAINST SUCH INDEMNIFIED CLAIMS PURSUANT TO SECTION 6 ABOVE.
THE LIMITATION OF LIABILITY OF COMPANY PROVIDED IN THE PRECEDING SENTENCE SHALL
NOT APPLY TO COMPANY'S BREACH OF SECTION 5(b) ABOVE (EXCEPT FOR COMPANY'S
BREACH OF ITS OBLIGATION UNDER SECTION 2(iii) ABOVE TO DELIVER UPDATES
CONTAINING SUFFICIENT BREATH AND DEPTH REGARDING THE USE AND USABILITY OF
MICROSOFT PRODUCTS AND RELATED SOFTWARE AND HARDWARE, FOR WHICH THE THREE
MILLION DOLLAR (US$3,000,000) LIABILITY CAP AS STATED IN THE PRECEDING SENTENCE
SHALL APPLY) OR OBLIGATIONS UNDER SECTION 6(a) ABOVE, IN WHICH CASE IN NO EVENT
SHALL THE TOTAL LIABILITY OF COMPANY UNDER THIS AGREEMENT IN THE AGGREGATE,
EXCEED TWELVE MILLION DOLLARS (US$12,000,000), PLUS ANY AMOUNTS EXPENDED
DEFENDING AGAINST CLAIMS OF INFRINGMENT PURSUANT TO SECTION 6 ABOVE.

8.   Term and Termination.

     a.   This Agreement will commence as of the Effective Date and continue
for a period of two (2) years, unless earlier terminated as provided for
hereunder.

     b.   Either party may terminate this Agreement with cause upon thirty (30)
days written notice to the other party advising the other party of the nature
of the default, provided that such default is not thereafter cured within such
thirty (30) day period.

     c.   Beginning one year from the Effective Date, either party may
terminate this Agreement without cause or obligation to the other party at any
time upon giving ninety (90) days' notice to the other party.

     d.   In the event Microsoft terminates this Agreement at any time with
cause or Company terminates this Agreement without cause after the first year
of the Agreement, then Company shall refund a pro rata portion

                                       4
<PAGE>   5
of the monies paid by Microsoft under this Agreement. In the event this
Agreement is terminated with cause, any such refund will be in addition to any
other remedies Microsoft may have in law or equity as a result of Company's
breach. Any refund due to Microsoft under this Section shall be based upon the
number of days remaining in the term of the Agreement at a rate of Two Thousand
Seven Hundred Dollars ($2,740) per day.

     e.   Following the initial two (2) year term, the term of this Agreement
shall be deemed extended for additional one (1) year periods only upon written
agreement by the parties. In the event of renewal, Microsoft shall pay Company
the yearly fee as set forth in Section 4(c).

     f.   Upon termination of this Agreement, Microsoft shall promptly remove
any ServiceWare Knowledge Bases it may have posted on web servers under the
terms of this Agreement.

9.   Notices.  All notices, authorizations and requests in connection with this
Agreement will be deemed given on the day they are: (a) deposited in the U.S.
Mail, postage paid, certified or registered, return receipt requested; or (b)
sent air express courier, charges paid and addressed as follows:

       Company:         ServiceWare, Inc
                        333 Allegheny Ave
                        Oakmont PA 15135
                        Attention: Paul McDermott, CFO

       Microsoft:       Microsoft Corporation
                        One Microsoft Way
                        Redmond, WA 98052-6399
                        Attention: ___________________
       With a copy to:  Law and Corporate Affairs

10.  Miscellaneous.

     a.   In the event that any provision of this Agreement is found invalid or
unenforceable pursuant to judicial decree or decision, the remainder of this
Agreement shall remain valid and enforceable according to its terms. The
parties intend that the provisions of this Agreement be enforced to the fullest
extent permitted by applicable law. Accordingly, the parties agree that if any
provisions are deemed not enforceable, they shall be deemed modified to the
extent necessary to make them enforceable.

     b.   Any waiver, amendment, or modification of any right, remedy or other
term under this Agreement will not be effective unless in writing and signed by
the party against whom enforcement is sought.

     c.   This Agreement shall be construed and controlled by the laws of the
State of Washington, and Company and Microsoft further consent to jurisdiction
by the state or federal courts sitting in the state where defendant is
incorporated. Process may be served on either party by U.S. Mail, postage
prepaid, certified or registered, return receipt requested, or by such other
method as is authorized by law.

     d.   If either Microsoft or Company employs attorneys to enforce any
rights arising out of or related to this Agreement, the prevailing party shall
be entitled to recover reasonable attorneys' fees and costs, including expert
witness fees.

     e.   Company and Microsoft may not assign this Agreement (by operation of
law or otherwise), or any portion thereof, to any third party unless the other
party expressly consents to such assignment in writing, such consent not to be
unreasonably withheld. Any attempted assignment without such consent shall give
the other party the right to terminate this Agreement effective upon written
notice. For purposes of this Agreement, a merger, consolidation, or other
corporate reorganization, or a transfer or sale of any or all of a party's
stock, or of all or substantially all of its assets, shall not be deemed to be
an assignment requiring consent from the other party, provided such transaction
is not with a competitor of the other party.

                                       5
<PAGE>   6
     f.   This Agreement does not establish the relationship of a partnership,
joint venture, franchise, or principal and agent among the parties, and neither
party shall have any authority to incur obligations or take other actions on
behalf of the other party to this Agreement.

     g.   The parties' exchange of confidential information, if any, during the
term of this Agreement shall be governed by the terms and conditions of the
Microsoft Corporation Standard Non-Disclosure Agreement ("NDA") between the
parties, effective January 7, 1977, attached hereto as Exhibit A. The parties
agree that the terms and conditions of that NDA shall be mutual, and govern
Company's disclosure of confidential information, if any, to Microsoft as well.

     h.   The parties hereto agree that this Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof and
supersedes all prior and contemporaneous communications. It shall not be
modified except by a written agreement dated subsequent hereto and signed on
behalf of Company and Microsoft by their respective duly authorized
representatives. Neither this Agreement nor any written or oral statements
related hereto constitute an offer, and this Agreement shall not be legally
binding until executed by both parties.

     i.   No waiver of any breach of any provision of this Agreement will
constitute a waiver of any prior, concurrent, or subsequent breach of the same
or any other provisions hereof, and no waiver will be effective unless made in
writing and signed by an authorized representative of the waiving party.

     j.   Company and Microsoft each acknowledge that the limitations and
exclusions contained in this Agreement have been the subject of active and
complete negotiation between the parties and represent the parties' agreement
based upon the level of risk to Company and Microsoft associated with their
respective obligations under this Agreement and the payments to be made to
Microsoft and credits to be issued to, and services to be provided to, Company
pursuant to this Agreement. The parties agree that the terms and conditions of
this Agreement shall not be construed in favor of or against any party by reason
of the extent to which any party or its professional advisors participated in
the preparation of this Agreement.

     k.   Sections 1, 5, 6, 7, 8, 9 and 10 shall survive termination or
expiration of this Agreement.

          IN WITNESS WHEREOF the parties have executed this Agreement by an
authorized representative of each party as of the later of the dates indicated
below.

MICROSOFT CORPORATION                        SERVICEWARE, INCORPORATED

     /s/ Jeff S. Raikes                              /s/ Jeff Pepper
-----------------------------                ------------------------------
Name                                         Name

    Group Vice President                             Chairman and CEO
-----------------------------                ------------------------------
Title                                        Title

          6-29-98                                      17 June 1998
-----------------------------                ------------------------------
Date                                         Date

                                       6

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