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                                                                    EXHIBIT 10.1

                           SECOND AMENDED AND RESTATED

                             SHAREHOLDERS AGREEMENT

     This Second Amended and Restated Shareholders Agreement (this "AGREEMENT")
is entered into as of the 13th day of January, 2000 between Servicesoft
Technologies Inc., a Delaware corporation ("SERVICESOFT") and those shareholders
whose names are set forth on Schedule A. Except as otherwise indicated herein,
capitalized terms used herein are defined in Section 1 hereof.

     WHEREAS, the Company, certain of the Major Shareholders (the "Original
Major Shareholders") and certain other parties entered into an Amended and
Restated Shareholders Agreement dated June 18, 1999 (the "Amended and Restated
Shareholders Agreement") which amended and restated a previous Stockholders
Agreement dated February 12, 1998;

     WHEREAS, the Original Major Shareholders are holders of Common Stock, par
value $.01 per share ("Common Stock"), Series H Convertible Preferred Stock, par
value $.01 per share (the "Series H Preferred"), Series I Convertible Preferred
Stock, par value $.01 per share (the "Series I Preferred"), of the Company
and/or Exchangeable Shares, which are exchangeable into Common Stock as Series H
Preferred, as the case may be;

     WHEREAS, the holders of Exchangeable Shares possess certain rights,
including the right to vote as a stockholder of the Company as if such
Exchangeable Shares were Common Stock or Series H Preferred;

     WHEREAS, the Company and the holders (the "SERIES J HOLDERS") of shares of
its Series J Convertible Preferred Stock, par value $.01 per share (the "SERIES
J PREFERRED"; and collectively with the Series H Preferred and the Series I
Preferred, the "Preferred Stock"), identified on Schedule A have entered into a
Series J Convertible Preferred Stock Purchase Agreement dated as of the date
hereof (the "SERIES J PURCHASE AGREEMENT");

     WHEREAS, as a condition to closing under the Series J Purchase Agreement
and as an inducement to the Series J Holders to consummate the transactions
contemplated by the Series J Purchase Agreement, the Company and the undersigned
parties desire to amend and restate the Amended and Restated Agreement and to
execute and deliver this Agreement;

     NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, receipt of which is hereby acknowledged, the parties to
this Agreement agree to amend and restate the Amended and Restated Agreement as
follows:

     1. Certain Definitions. As used in this Agreement, the following terms
shall have the following respective meanings:

         "BOARD" means the Board of Directors of the Company.
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         "BUSINESS DAY" means a day, other than a Saturday or Sunday, on which
the principal commercial banks located in New York and Toronto are open for
business during normal banking hours.

         "CERTIFICATE" means the Company's Certificate of Incorporation, as
amended.

         "COMBINATION AGREEMENT" means that certain Combination Agreement dated
February 12, 1999, whereby the Company completed a transaction with Balisoft and
the shareholders of Balisoft received Exchangeable Shares.

         "COMMISSION" means the Securities and Exchange Commission, or any other
federal agency at the time administering the Securities Act.

         "EXCHANGEABLE SHARES" means the Exchangeable Common Shares and
Exchangeable Preferred Shares of Servicesoft Technologies (Canada), Inc.

         "INITIAL PUBLIC OFFERING" means the initial offering to the public of
the Company's Securities pursuant to a firm commitment underwriting pursuant to
the Securities Act.

         "MAJOR SHAREHOLDER" means (i) each shareholder listed on Schedule A and
(ii) a Permitted Transferee (as defined in Section 5) of any Major Shareholder.

         "PERSON" includes any individual, legal or personal representative,
partnership, company, corporation, incorporated syndicate, unincorporated or
incorporated association, trust or governmental agency, howsoever designated or
constituted.

         "QUALIFIED PUBLIC OFFERING" means a firm commitment, underwritten
public offering pursuant to an effective registration statement under the
Securities Act of the Company's Common Stock to the public with aggregate gross
proceeds to the Company of not less than $30,000,000 and which places a value on
the Company of not less than $250,000,000.

         "REGISTRATION RIGHTS AGREEMENT" means the Seventh Amended and Restated
Registration Rights Agreement between the Company and certain of the Major
Shareholders of even date herewith.

         "SECURITIES" means, with respect to any Person, such Person's
"securities" as defined in Section 2(1) of the Securities Act and includes such
Person's capital stock or other equity interests or any options, warrants or
other securities or rights that are directly or indirectly convertible into, or
exercisable or exchangeable for, such Person's capital stock or other equity
interests.

         "SECURITIES ACT" means the United States Securities Act of 1933, as
amended, or any similar federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at this time.

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         "SERIES I PURCHASE AGREEMENT" means that certain Series I Purchase
Agreement dated as of June 18, 1999 by and among the Company and the holders of
Series I Preferred.

                  "SUBSIDIARY," or collectively, "SUBSIDIARIES," of any Person
means any corporation or other entity of which securities or other ownership
interests having ordinary voting power to elect a majority of the Board of
Directors or other Persons performing similar functions are directly or
indirectly owned or controlled by such Person or one or more Subsidiaries of
such Person.

     2. Prohibited Transfer.

         (a) None of the Major Shareholders shall sell, assign, transfer,
pledge, hypothecate, mortgage or dispose of, by gift or otherwise, or in any way
encumber, all or any part of the Servicesoft Shares (as hereinafter defined)
owned by it except in compliance with the terms of this Agreement.

         (b) None of the Major Shareholders shall sell or dispose of all or any
part of the Servicesoft Shares for any consideration other than cash or publicly
traded securities without the approval of the Board of Directors of the Company
(the "BOARD"), such approval to be provided or withheld on a consistent basis
among Major Shareholders.

         (c) For purposes of this Agreement, the term "SERVICESOFT SHARES" shall
mean and include all shares of capital stock of the Company and all Exchangeable
Shares owned by a Major Shareholder, whether now owned or hereafter acquired and
whether owned by a Major Shareholder or a transferee thereof. For purposes of
calculating the number of Servicesoft Shares owned by a Major Shareholder under
this Agreement, all Exchangeable Shares held by them shall be deemed to have
been exchanged for the Servicesoft Shares for which they may be exchanged and
all other shares of Common Stock which a Major Shareholder has the right to
acquire from the Company upon the conversion, exercise or exchange of any of the
Securities of the Company or its Subsidiaries then owned by such Major
Shareholder shall be deemed to be Servicesoft Shares then owned by such Major
Shareholder.

     3. Pre-Emptive Rights on Issues.

         (a) If any additional New Securities (as defined below) are to be
issued by the Company other than pursuant to (i) the Company's 1994 Stock Option
Plan, the Company's 1999 Stock Option and Grant Plan or any other stock option
or grant plan approved by the Board, (ii) an exercise of the exchange rights of
any of the Exchangeable Shares, (iii) any stock splits or stock dividends, (iv)
bank and leasing warrants (not to exceed 5% of the total fully diluted equity of
the Company), (v) any business combination transactions, provided, that such
Securities are issued at fair market value, (vi) the exercise, conversion or
exchange of Securities of the Company outstanding from time to time, the Company
shall first offer such New Securities to the Major Shareholders by a written
invitation to subscribe for the New Securities (the "INVITATION"). "NEW
SECURITIES" means (i) shares of Common Stock, (ii) any other equity security of
the Company (other than any shares of Series J Preferred issued and sold
pursuant to the Series J Purchase Agreement), (iii) any debt security that is a
combination of debt and equity,

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(iv) any debt security of the Company that by its terms is convertible into or
exchangeable for any equity security of the Company, or (v) any option, warrant
or other right to subscribe for or purchase or otherwise acquire any equity
security or any debt security of the Company.

         (b) Upon receiving an Invitation, each of the Major Shareholders shall
have the right to purchase that number of New Securities as shall be equal to
the number of New Securities multiplied by a fraction, the numerator of which
shall be the number of Servicesoft Shares (on an as-if converted basis) then
owned by such Major Shareholder and the denominator of which shall be the total
number of shares of Common Stock determined on a fully diluted, as-if converted
or exercised basis. The Major Shareholders shall have ten days from their
receipt of the Invitation in which to give a notice to the Company of such Major
Shareholder's intention to purchase all or any of the New Securities to which it
is entitled and shall indicate in such notice the maximum number of New
Securities which such Major Shareholder is willing to purchase (which number may
be greater than its pro rata entitlement set out above). If any Major
Shareholder does not accept its full pro rata entitlement as set out in this
Section 3(b), such unaccepted New Securities shall be deemed to have been
offered to the Major Shareholders who indicated that they would accept greater
than their pro rata entitlement and each such Major Shareholder is entitled to
acquire such unaccepted New Securities pro rata based upon the number of
Servicesoft Shares owned by all such Major Shareholders.

         (c) In the event that after the Invitation has been issued and the ten
day period referred to above has elapsed, there remain some of the New
Securities which have not been taken up and paid for by the Major Shareholders,
then the New Securities not so taken up (for the purposes of this Section 3, the
"REMAINING NEW SECURITIES") may be issued to such Persons as the directors in
their discretion determine, provided, that such Persons agree to be bound by
this Agreement and to become parties hereto, and provided, further that any such
issue of the Remaining New Securities must be completed within 60 days of the
Invitation given with respect to the said New Securities.

     4. Rights of First Refusal and Co-Sale on Dispositions.

         (a) If at any time any Major Shareholder desires to sell or transfer
all or any part of the Servicesoft Shares owned by such Major Shareholder, such
Major Shareholder (the "OFFEROR"), shall submit, prior to consummating any such
sale or transfer, a written offer (the "OFFER") concurrently to the Company and
to each of the Major Shareholders to sell such Servicesoft Shares (for purposes
of this Section 4, the "OFFERED SHARES").

         (b) Such Offer shall be at least as favorable to the Company and the
Major Shareholders as those on which the Offeror proposes to sell the Offered
Shares to the prospective purchaser or transferee (the "PROPOSED TRANSFEREE").
The Offer shall disclose the name and address of the Proposed Transferee, the
number of Offered Shares proposed to be sold, the total number of Servicesoft
Shares owned by the Offeror, the terms and conditions, including price, of the
proposed sale and any other material facts relating to the proposed sale. The
Offer shall further state that either the Company or the Major Shareholders may
acquire, in accordance with the provisions of this Agreement, all (but not less
than all) of the Offered Shares for the price and upon the other terms and
conditions, including deferred payment (if applicable), set forth therein.

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         (c) The Company shall communicate in writing its election to either
purchase all (but no less than all) or none of the Offered Shares to the Offeror
and to the Major Shareholders, which communication shall be delivered in person
or mailed to the Offeror and the Major Shareholders at the address set forth in
accordance with Section 10 below within seven days of the date the Offer is
made. Such communication shall, when taken in conjunction with the Offer, be
deemed to constitute a valid, legally binding and enforceable agreement for the
sale and purchase of such Offered Shares. Sale of the Offered Shares to be sold
to the Company pursuant to this Section 4 shall be made at the offices of the
Company on the 20th day following the date the Offer is made (or if such 20th
day is not a business day, then on the next succeeding business day). Such sale
shall be effected by the Offeror's delivery to the Company of a certificate or
certificates evidencing the Offered Shares to be purchased by it, duly endorsed
for transfer to the Company against payment to the Offeror of the purchase price
therefor by the Company.

         (d) In the event that the Company elects not to purchase the Offered
Shares, each Major Shareholder shall have the absolute right to purchase that
number of Offered Shares as shall be equal to the number of Offered Shares
multiplied by a fraction, the numerator of which shall be the number of
Servicesoft Shares then owned by such Major Shareholder and the denominator of
which shall be the aggregate number of Servicesoft Shares then owned by all of
the non-selling Major Shareholders. The amount of Offered Shares that each Major
Shareholder is entitled to purchase under this Section 4(d) shall be referred to
as its "PERCENTAGE."

         (e) The non-selling Major Shareholders shall have a right of
oversubscription such that if any Major Shareholder fails to accept the Offer as
to its Percentage, the other non-selling Major Shareholders shall, among them,
have the right to purchase up to the balance of the Offered Shares not so
purchased. Such right of oversubscription may be exercised by a Major
Shareholder by accepting the Offer as to more than its Percentage. If, as a
result thereof, such oversubscriptions exceed the total number of Offered Shares
available in respect of such oversubscription privilege, the oversubscribing
Major Shareholders shall be cut back with respect to their oversubscriptions on
a pro rata basis in accordance with their respective Percentages or as they may
otherwise agree among themselves.

         (f) If a Major Shareholder desires to purchase all or any part of the
Offered Shares, said Major Shareholder shall communicate in writing its election
to purchase to the Offeror, which communication shall state the number of
Offered Shares said Major Shareholder desires to purchase and shall be delivered
in person or mailed to the Offeror at the address set forth in accordance with
Section 12 below within 14 days of the date of the Offer in Section 4(b) above
is made. Such communication shall, when taken in conjunction with the Offer, be
deemed to constitute a valid, legally binding and enforceable agreement for sale
and purchase of such Offered Shares (subject to the aforesaid limitations as to
a Major Shareholder's right to purchase more than its Percentage).

         (g) If the Company and/or the Major Shareholders fail to exercise their
respective rights to purchase all of the shares of Offered Shares described in
the Offer following the exercise or expiration of the rights of purchase
described above, then each Major Shareholder shall then have the right,
exercisable upon written notice to the Offeror within 21 days after

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delivery of the Offer, to participate as provided below in this Section 4(g) in
such sale of Offered Shares on the same terms and conditions; provided, however,
that the Series I Holders and Series J Holders shall not be eligible to
participate in such sale or transfer in accordance with the provisions of this
Section 4(g); and provided further, however, that the co-sale provisions of this
Section 4(g) shall not apply to sales or transfers of shares of Series I
Preferred (or any Common Stock issued upon conversion thereof) made by the
Series I Holders or to sales or transfers of shares of Series J Preferred (or
any Common Stock issued upon conversion thereof) made by the Series J Holders.
Such notice shall indicate the number of Servicesoft Shares such Major
Shareholder wishes to sell under such Major Shareholder's right to participate.
To the extent one or more of the Major Shareholders exercises such right of
participation in accordance with the terms and conditions set forth below, the
number of Servicesoft Shares that the Offeror may sell in the transaction shall
be correspondingly reduced.

         (h) Each Major Shareholder may sell all or any part of that number of
Servicesoft Shares equal to the product obtained by multiplying (x) the
aggregate number of shares of Offered Shares covered by the Offer (less shares
purchased by the Company or the Major Shareholders pursuant to Sections 4(c) and
4(d)) by (y) a fraction the numerator of which is the number of Servicesoft
Shares held by the Major Shareholder at the time of the sale or transfer and the
denominator of which the aggregate number of Servicesoft Shares then owned by
all non-selling Major Shareholders on the date of the Offer.

         (i) Each Major Shareholder who elects to participate in the sale
pursuant to this Section 4(g) (a "PARTICIPANT") shall effect its participation
in the sale by promptly delivering to the Company as escrow agent (the "ESCROW
AGENT") for transfer to the Proposed Transferee one or more certificates,
properly endorsed for transfer which represent:

               (i) the type and number of shares of Common Stock which such
Participant elects to sell; or

               (ii) that number of shares of Series H Preferred or Exchangeable
Shares which is at such time convertible into the number of shares of Common
Stock which such Participant elects to sell; provided, however, that if the
Proposed Transferee objects to the delivery of such Series H Preferred,
Exchangeable Shares, Series I Preferred or Series J Preferred in lieu of Common
Stock, such Participant shall convert such Series H Preferred, Exchangeable
Shares, Series I Preferred or Series J Preferred into Common Stock and deliver
Common Stock as provided above. The Company agrees to make any such conversion
concurrent with the actual transfer of such shares to the purchaser and
contingent on such transfer.

         (j) The stock certificate or certificates that the Participant delivers
to the Escrow Agent shall be transferred to the Proposed Transferee in
consummation of the sale of Servicesoft Shares pursuant to the terms and
conditions specified in the Offer, and the Escrow Agent shall concurrently
therewith remit to such Participant that portion of the sale proceeds to which
such Participant is entitled by reason of its participation in such sale. To the
extent that any Proposed Transferee prohibits such assignment or otherwise
refuses to purchase shares or other Securities from a Participant exercising its
rights of co-sale hereunder, such Offeror shall not sell to such Proposed
Transferee any Servicesoft Shares unless and until, simultaneously with

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such sale, such Offeror shall purchase such shares or other Securities from such
Participant on the same terms and conditions specified in the Offer.

         (k) The exercise or non-exercise of the rights of the Participants
hereunder to participate in one or more transfers of Servicesoft Shares made by
other Major Shareholders shall not adversely affect their rights to participate
in subsequent sales of Servicesoft Shares.

         (l) If none of the Major Shareholders elect to participate in the sale
of the Offered Shares, such Offeror may, not later than 120 days following
delivery to the Company of the original Offer, enter into an agreement providing
for the closing of the sale or transfer of the Offered Shares covered by the
Offer on terms and conditions materially no more favorable to the Proposed
Transferee than those described in the Offer; provided, however, that no Major
Shareholder shall be permitted to transfer the Offered Shares to a competitor of
the Company. Any proposed transfer on terms and conditions materially more
favorable to the Proposed Transferee than those described in the Offer, as well
as any subsequent proposed transfer of any of the Servicesoft Shares held by the
Offeror, shall again be subject to the co-sale rights and right of first refusal
of the Major Shareholders and shall require compliance by a Offeror with the
procedures described in this Section 4.

         (m) Sales of the Offered Shares to be sold to the purchasing Major
Shareholders pursuant to this Section 4 shall be made at the offices of the
Company on the 20th day following the date the Offer is made (or if such 20th
day is not a business day, then on the next succeeding business day). Such sales
shall be effected by the Offeror's delivery to each purchasing Major Shareholder
of a certificate or certificates evidencing the Offered Shares to be purchased
by it, duly endorsed for transfer to such purchasing Major Shareholder against
payment to the Offeror of the purchase price therefor by such purchasing Major
Shareholder.

         (n) At the Company's option, it can require that a conveyance of
Servicesoft Shares to a person other than a Major Shareholder be conditioned
upon the receipt by the Company of either (i) an opinion of legal counsel
reasonably satisfactory to it that no violation of any securities laws or loss
of exemption from registration under any such laws will result from such a
conveyance, or (ii) a "no action" letter from the Commission to the same effect
covering such conveyance and an equivalent ruling from each applicable state
authority.

         (o) The Certificate provides that all of the Company's stockholders
(including those who are not Major Shareholders) except the Series I Holders and
Series J Holders are prohibited from selling or transferring any shares of
Common Stock of the Company without first offering the Company a first right of
refusal, as more fully specified in the Certificate.

         (p) Nothing in the foregoing subsections of this Section 4 shall be
construed to alter the fact that the Exchangeable Shares are not transferrable
by their holders except according to their terms as set out in the articles of
incorporation of Servicesoft Canada.

     5. Permitted Transfers. Anything herein to the contrary notwithstanding,
the provisions of Section 4 shall not apply to transfers to (i) a Related Person
(as defined below) or (ii) a trust for the benefit of any individual Major
Shareholder, provided, that the trust instrument

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governing said trust shall provide that such Major Shareholder, as trustee,
shall retain sole and exclusive control over the voting and disposition of said
Servicesoft Shares until the termination of this Agreement, provided, that such
transferee is not competitor of the Company and that such transfer does not
violate any applicable federal or state securities laws (each, a "Permitted
Transferee"). A "Related Person" means with respect to any Major Shareholder (x)
any Person which is controlled by, controls or is under common control with such
Holder, (y) any partner, shareholder or similar equity holder of such Major
Shareholder or such Person described in clause (x) above which receives
securities in connection with a windup, liquidation or similar dissolution of
such Major Shareholder or such Person, or (z) any individual, charitable trust
or similar organization which receives Servicesoft Shares from a Major
Shareholder as part of a testamentary transfer by such Major Shareholder. For
purposes hereof, "control" and its derivatives shall mean, with respect to any
Person, the power to direct and control the management or policies of such
Person, whether through the beneficial ownership of voting securities or
interests, by contract or agreement or otherwise. In the event of any such
transfer, other than pursuant to clause (ii) of this Section 5, such Permitted
Transferee of the Servicesoft Shares shall hold the Servicesoft Shares so
acquired with all the rights conferred by, and subject to all the restrictions
imposed by, this Agreement and shall deemed a Major Shareholder for all purposes
hereof.

     6.   Board of Directors.

          (a) Election of Directors. Each Major Shareholder agrees to vote all
of its Servicesoft Shares at all elections of directors of the Company so that
the Board shall consist of up to eight members. Pursuant to the foregoing, each
Major Shareholder agrees to vote its Servicesoft Shares in order to elect the
following persons to the Board:

               (i) the Chief Executive Officer of the Company, who shall
initially be Chris Butler,

               (ii) one nominee designated by a majority-in-interest of the
Major Shareholders holding more than 500,000 Exchangeable Shares exchangeable
for Series H Preferred as of the date hereof, acting collectively,

               (iii) one nominee designated by a majority-in-interest of the
Major Shareholders holding Series H Preferred as of the date hereof, acting
collectively,

               (iv) one nominee of CIBC WMV Inc. ("CIBC"),

               (v) one nominee of Sofinov, Societe Financiere D'Innovation Inc.,
unless such nominee is the nominee of the Exchangeable Shares pursuant to clause
(ii) above, and

               (vi) one nominee to be agreed upon by the Board, who shall
initially be Mark Skapinker, and

               (vii) two independent nominees to be agreed upon by the Board.

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         Each Major Shareholder further agrees to vote its Servicesoft Shares to
remove any member of the Board (a "DIRECTOR") whose removal is requested by the
Person or Persons who nominated such Director. Additionally, the Board shall
have the discretion to appoint additional persons to attend all regularly
scheduled Board meetings as observers, subject to Board approval as to the
specific individuals who can attend meetings. CIBC, FT Ventures and Goldman
Sachs shall each have the right to appoint one such observer (together, the
"PERMITTED OBSERVERS"), and such Permitted Observers shall have the right to
attend any board meeting at which the Director nominated by such entity is not
present unless to do so would, in the opinion of the Company, unreasonably
disrupt the conduct of the meeting. If and when the Board conducts such meetings
by telephone, the Permitted Observers will be invited to participate. The
Permitted Observers will be sent notices of such Board meetings and a copy of
all Board meeting materials in the same manner as and when Directors are sent
such notices and materials, which materials are to be treated as strictly
confidential by such Permitted Observers and are not to be made available or
distributed to any other person. Directors and any observers are expected to
recuse themselves from any meetings or portions of meetings regarding subjects
that involve a potential or actual conflict of interest for the Major
Shareholder represented by that person and the Board can exclude a Director or
observer from a meeting under such circumstances.

         (b) Meeting; Expenses. The Company shall use its best efforts to ensure
that meetings of its Board are held at least four times each year and at least
once each calendar quarter. The Company shall also provide to each Director and
each Permitted Observer upon request copies of all notices, reports, minutes and
consents with respect to any committee. Directors shall be reimbursed for their
reasonable expenses in attending Board meetings. The reasonable expenses of the
Permitted Observers shall also be reimbursed.

         (c) Committees. In the event the Directors delegate any of their powers
which may be so delegated to any committee of the Board, for so long as CIBC is
entitled to nominate a Director to the Board, the members of the Board will
nominate and elect to each such committee the Director nominated by CIBC.

         (d) Information. The Company acknowledges that a Major Shareholder may
have, from time to time, information that may be of interest to the Company
regarding a wide variety of matters including, by way of example only, (1) the
Major Shareholder's technologies, plans and services, and plans and strategies
relating thereto, (2) current and future investments the Major Shareholder has
made, may make, may consider, or may become aware of with respect to other
companies and other technologies, products and services, including, without
limitation, technologies, products and services that may be competitive with the
Company's, and (3) developments with respect to the technologies, products and
services, and plans and strategies relating thereto, of other companies,
including, without limitation, companies that may be competitive with the
Company ("INFORMATION"). Such Information may or may not be known by the
Director or observer appointed by the Major Shareholder. The Company, as a
material part of the consideration for this Agreement, agrees that the Major
Shareholder and its Director or observer (as applicable) shall have no duty to
disclose any Information to the Company or permit the Company to participate in
any projects or investments based on any Information, or to otherwise take
advantage of any opportunity that may be of interest to the Company if it were
aware of such Information, and hereby waives, to the extent permitted by law,
any claim based

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on the corporate opportunity doctrine or otherwise that could limit the Major
Shareholder's ability to pursue the opportunities based on such Information or
that would require the Major Shareholder or observer to disclose any such
Information to the Company or offer any opportunity relating thereto to the
Company.

     7.   Rights in Corporate Events.

          (a) Corporate Event. A "CORPORATE EVENT" shall mean any of the
following, whether accomplished through one or a series of related transactions:
(i) the acquisition of all or substantially all the assets of the Company, (ii)
an acquisition of the Company by consolidation, merger, share purchase or
exchange, or other reorganization or transaction in which the holders of all of
the outstanding Servicesoft Shares immediately prior to such transaction own,
immediately after such transaction, Securities representing less than 50% of the
voting power of the corporation or any entity surviving such transaction, and
(iii) any other transaction or series of related transactions (excluding any
exercise or exercises of stock options and the warrant issued to Intel
Corporation ("INTEL") to purchase Series H Preferred) that would result in a
greater than 25% change in the total outstanding number of shares of Series H
Preferred or any other class of voting Securities of the Company. The Company
agrees that it will provide Intel with written notice (by telefax and regular
mail) of any written offer from another Major Shareholder for a proposed
Corporate Event no less than 30 days prior to the date the Company accepts such
offer or proposed Corporate Event unless, in the Board's reasonable judgement,
the Company has less than 30 days to act on an offer in which event it will
provide notice to Intel within one business day of when it first receives such
offer for a proposed Corporate Event. In addition, the Company agrees that it
will provide Intel, within one business day of the Company's becoming aware
thereof, with written notice of any written offer from another Major Shareholder
to acquire 20% or more of the Company's outstanding voting Securities.

          (b) Unsolicited Offer/Solicited Offer. An "UNSOLICITED OFFER" means
(i) any offer for a proposed Corporate Event received from another Major
Shareholder in the absence of any act taken by any officer or Director of the
Company with the intent of soliciting such offer, and (ii) any proposal or offer
by the Company to such third Major Shareholder or from such third Major
Shareholder for a proposed Corporate Event arising from negotiations that
followed the receipt of an offer described in Section 7(b)(i). Any offer for a
proposed Corporate Event that is not an Unsolicited Offer shall be deemed a
Solicited Offer.

          (c) Solicitation of Offers for Corporate Events.

               (i) Solicitation Notice. The Company agrees that prior to
soliciting any offers (other than an offer described in Section 7(a)(ii) above)
for a proposed Corporate Event (a "PROPOSED EVENT"), the Company will provide
Intel with written notice of such intent to solicit offers (a "SOLICITATION
NOTICE"), including such terms and conditions of the Proposed Event as are
provided to other prospective offerors for the Corporate Event.

               (ii) Different Terms and Conditions. In the event that the
Company proposes to accept a Solicited Offer for the consummation of a Proposed
Event on terms and conditions that are not at least as favorable as the terms
and conditions specified in the last

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Solicitation Notice, the Company agrees to provide Intel with Solicitation
Notice pursuant to Section 7(c)(i). Without limiting the generality of the
foregoing, a purchase price that is 95% or less of the purchase price in the
last Solicitation Notice received by Intel shall be deemed not to be at least as
favorable as the terms and conditions as specified in the last Solicitation
Notice and shall require the Company to deliver to Intel a new Solicitation
Notice.

         (d) Unsolicited Offers for Corporate Event. If the Company receives a
written Unsolicited Offer from another Major Shareholder for a proposed
Corporate Event (an "OFFERED EVENT"), the Company agrees that it will provide
Intel with written notice of the Offered Event including such terms and
conditions of the Offered Event as are provided to prospective offerors for the
Offered Event other than the Major Shareholder making the Unsolicited Offer. If
the Company proposes to accept the Offered Event or recommend that its
shareholders approve the Offered Event, the Company agrees that it will provide
Intel with written notice of its intention.

         (e) Confidentiality and Fiduciary Obligations. No action of the Company
(including of the Board) shall be prohibited by or be deemed a breach of this
Section 7 if the Board determines in good faith, upon the advice of outside
legal counsel, that such action would be required by reasons of a
confidentiality agreement with another Major Shareholder offeror or the
fiduciary duties of the Board to the Company's stockholders under applicable
law, provided, however, that in the event that the Company takes an action
pursuant to this Section 7 and such action involves the solicitation of, or the
proposal by the Company to accept, an offer for a proposed Corporate Event, the
parties agree, notwithstanding any other provision herein, that such proposed
Corporate Event will be treated as an Offered Event pursuant to the terms of
Section 7(d).

         (f) Termination of Rights. The rights of Intel under Sections 7(b)
through 7(e) shall terminate on February 10, 2003; provided, however, that
Intel's rights under such sections of this Section 7 shall remain in full force
and effect with respect to any Corporate Event, Unsolicited Offer, Solicited
Offer and Offered Event for which Intel has received, or been entitled to
receive, notice from the Company prior to such date.

     8. Liquidation Preference. In the event of a Liquidation Event (as defined
in the Certificate), the Certificate provides that the holders of Series H
Preferred (including the holders of Exchangeable Shares exchangeable for Series
H Preferred) shall be entitled to receive the Series H Preference Amount (as
defined therein). Such holders agree that the Series H Preference Amount shall
be distributed among them based on their prior status as shareholders of the
Company or Balisoft Technologies, Inc. as Ontario, Canada corporation
("BALISOFT") on the basis specified in Schedule B (the "INDIVIDUAL PREFERENCE
AMOUNTS"). If the assets or surplus funds to be distributed to the holders of
Series H Preferred (including the holders of Exchangeable Shares exchangeable
for Series H Preferred), the Series I Preferred and the Series J Preferred in
accordance with the Certificate are insufficient to permit the payment to such
holders of their full Individual Preference Amounts, the assets and surplus
funds legally available for distribution shall be distributed ratably among such
holders in proportion to the full Individual Preference Amounts each such holder
would otherwise be entitled to receive as between the holders of the Series H
Preferred (collectively), the Series I Preferred (collectively)

                                      -11-
<PAGE>   12
and the Series J Preferred (collectively) in accordance with the Certificate,
and as between each individual holder of Series H Preferred in accordance with
this Agreement.

     9. Drag Along. In the event that the Company's shareholders that
beneficially own on a collective basis at least 65% of the issued and
outstanding Securities of the Company (the "Approving Shareholders") determine
to approve any transaction between the Company and a third party that
contemplates the acquisition of 100% of the Company's outstanding Securities by
the third party or determines to tender or exchange their Securities in a
transaction proposed by any third party in which such third party would acquire
100% of the Company's outstanding Securities directly from the shareholders of
the Company, then in such event the Approving Shareholders shall have the right,
exercisable upon ten days' prior written notice (the "Transaction Notice"), to
require each of the Major Shareholders and the Executive to approve such
transaction and tender or exchange the Securities of the Company currently held
by them to such third party offeror on the same terms and conditions, including
the per share price and date of sale, as are received by the Approving
Shareholders and stated in the Transaction Notice.

     10. Restrictions.

         (a) So long as any Series I Preferred is outstanding (as adjusted for
any stock dividends, combinations, splits, recapitalizations and the like), the
Company shall not, without first obtaining the affirmative vote or written
consent of the holders of more 50% of the Series I Preferred then outstanding:

               (i) amend or repeal any provision of, or add any provision to,
     the Certificate or the By-Laws of the Company that changes the voting
     powers, preferences, or other special rights or privileges, or restrictions
     of the Series I Preferred;

               (ii) authorize or designate, whether by reclassification or
     otherwise, any new class or series of stock or any other securities
     convertible into equity securities of the Company ranking senior to the
     Series I Preferred in rights of redemption, liquidation preference, voting
     or dividends;

         (b) So long as any Series J Preferred is outstanding (as adjusted for
any stock dividends, combinations, splits, recapitalizations and the like), the
Company shall not, without first obtaining the affirmative vote or written
consent of the holders of more 50% of the Series J Preferred then outstanding:

               (i) amend or repeal any provision of, or add any provision to,
     the Certificate or the By-Laws of the Company that adversely affects the
     voting powers, preferences, or other special rights or privileges, or
     restrictions of the Series J Preferred;

               (ii) authorize or designate, whether by reclassification or
     otherwise, any new class or series of stock or any other securities
     convertible into equity securities of the Company ranking senior or pari
     passu to the Series J Preferred in rights of redemption, liquidation
     preference, voting or dividends;

                                      -12-
<PAGE>   13
         (c) So long as any Series I Preferred or Series J Preferred is
outstanding (as adjusted for any stock dividends, combinations, splits,
recapitalizations and the like), the Company shall not, without first obtaining
the affirmative vote or written consent of the holders of more 50% of the Series
I Preferred and Series J Preferred (voting as a single class) then outstanding:

               (i) amend or repeal any provision of, or add any provision to
     either Sections 10(c) or (e) or increase or grant any additional rights to
     the holders of the Series H Preferred under Section 10(d); or

               (ii) redeem, purchase or otherwise acquire for value (or pay into
     or set aside for a sinking fund for such purpose) any share or shares of
     Common Stock or Preferred Stock otherwise than by redemption in accordance
     with Article IV, Section B(5) of the Certificate; provided, that this
     restriction shall not apply to the repurchase of shares of Common Stock
     from employees, officers, directors, consultants or other persons
     performing services for the Company or any of its Subsidiaries pursuant to
     agreements under which the Company has the option to repurchase such shares
     at cost or the repurchase of shares of Common Stock or Preferred Stock upon
     exercise of the Company's right of first refusal in accordance with Article
     V of the Certificate or Section 4 of this Agreement.

         (d) So long as any Series H Preferred is outstanding, the Company shall
not, without first obtaining the affirmative vote or written consent of the
holders of more than 50% of the Series H Preferred (including the Exchangeable
Shares exchangeable for the Series H Preferred (voting as a separate class) then
outstanding:

               (i) amend or repeal any provision of, or add any provision to,
the Certificate or the By-Laws of the Company that changes the voting powers,
preferences, or other special rights or privileges, or restrictions of the
Series H Preferred; or

               (ii) authorize or designate, whether by reclassification or
otherwise, any new class or series of stock or any other securities convertible
into equity securities of the Company ranking senior to the Series H Preferred
in rights of redemption, liquidation preference, voting or dividends;

         (e) So long as any Series H, Series I and/or Series J Preferred are
outstanding, the Company shall not, without first obtaining the affirmative vote
or written consent of more than 50% of the Series H (including the Exchangeable
Shares for the Series H Preferred), Series I Preferred and Series J Preferred
(voting together as a single class) then outstanding:

               (i) reclassify any Common Stock into shares having any preference
or priority as to dividends or assets superior to or on a par with such
preference or priority of any Preferred Stock;

               (ii) issue or pay or declare any dividend or distribution on any
 shares of its capital stock or other equity securities (other than shares of
Common Stock) or apply any of its assets to the redemption, retirement, purchase
or other acquisition directly or indirectly,

                                      -13-
<PAGE>   14
through subsidiaries or otherwise, of any shares of its capital stock or other
equity securities other than (A) the Series H, Series I and Series J Preferred
except pursuant to and in accordance with the terms of the Certificate, (B) the
repurchase of shares of Common Stock from employees, officers, directors,
consultants or other persons performing services for the Company or any of its
Subsidiaries pursuant to agreements under which the Company has the option to
repurchase such shares at cost or (C) the repurchase of shares of Common Stock
or Preferred Stock upon exercise of the Company's right of first refusal in
accordance with Article V of the Certificate or Section 4 of this Agreement;

               (iii) authorize or designate, whether by reclassification or
otherwise, any new class or series of stock or any other securities convertible
into equity securities of the Company ranking on parity with any Preferred Stock
in rights of redemption, liquidation preference, voting or dividends or any
increase in the authorized or designated number of any such new class or series;

               (iv) consolidate or merge into or with any other entity or
entities (except a consolidation or merger in which the beneficial owners of the
Company's capital stock immediately prior to such transaction continue to hold
directly or indirectly not less than 51% of the voting power in the resulting
entity), or sell, mortgage or transfer all or substantially all its assets, or
enter into any other transaction or series of transactions the effect of which
would be the transfer in a single or series of related transactions of all or
substantially all of the assets of Company;

               (v) permit any Subsidiary to consolidate or merge into or with
any other entity or entities (except a consolidation or merger in which either
the Company or the beneficial owners of the Company's capital stock immediately
prior to such transaction continue to hold directly or indirectly not less than
51% of the voting power in the resulting entity), or sell, mortgage or transfer
all or substantially all the assets of any Subsidiary, or enter into any other
transaction or series of transactions the effect of which would be the transfer
in a single or series of related transactions of all or substantially all of the
assets of any Subsidiary, except that any Subsidiary may (A) consolidate or
merge into or with any other Subsidiary or the Company, or (B) sell or transfer
all or substantially all of its assets to any other Subsidiary or the Company;

               (vi) authorize any increase or decrease (other than by redemption
or conversion) in the authorized number of shares of Common Stock or Preferred
Stock;

               (vii) increase the number of shares of Common Stock reserved for
issuance under the Corporation's stock option and grant plans without the
approval of a majority of the members of the Board of Directors who are not
employees of the Company;

               (viii) approve any voluntary dissolution, liquidation or winding
up of the affairs of the Company;

               (ix) make, or permit any Subsidiary to make, any material change
in the nature of its business as set forth in its current operating plan; or

                                      -14-
<PAGE>   15
               (x) increase the authorized size of the Board above eight
members.

     11. Additional Covenants.

          (a) Financial Statements, Reports, Etc. The Company shall furnish the
following information to each Major Shareholder based upon the understanding of
such Major Shareholder that such information may be used solely for evaluating
the Company, and that it shall not be disclosed to any third party, except as
provided in this Agreement:

               (i) within 90 days after the end of each fiscal year of the
Company a consolidated balance sheet of the Company and its Subsidiaries, if
any, as of the end of such fiscal year and the related consolidated statements
of income and cash flows for the fiscal year then ended, prepared in accordance
with generally accepted accounting principles consistently applied and setting
forth in each case in comparative form the figures for the previous fiscal year,
all in reasonable detail. Such financial statements shall be certified by a firm
of independent public accountants of recognized national standing selected by
the Board, with the approval of the Company's stockholders;

               (ii) within 30 days after the end of each calendar quarter in
each fiscal year (other than the last month in each fiscal year) a consolidated
balance sheet of the Company and its Subsidiaries, if any, and the related
consolidated statements of income and cash flows, unaudited but prepared in
accordance with generally accepted accounting principles and certified by the
Chief Financial Officer of the Company, such consolidated balance sheet to be as
of the end of such quarter and such consolidated statements of income and cash
flows to be for such quarter and for the period from the beginning of the fiscal
year to the end of such quarter, in each case with such statements as requested
by the Board;

               (iii) (x) within 30 days after the beginning of each fiscal year
an annual budget and operating plan for such fiscal year (and as soon as
available, any subsequent revisions thereto); and (y) as soon as practicable
after the end of each month, and in any event within 30 days thereafter, a
balance sheet of the Company as of the end of each such month, and a statement
of income and statement of cash flows of the Company for such month and for the
current fiscal year to date, including a comparison to budget and plan figures
for such period, prepared in accordance with generally accepted accounting
principles consistently applied, with the exception that no notes need be
attached to such statements and year-end audit adjustments need not have been
made;

               (iv) at the time of delivery of each annual financial statement
pursuant to Section 10(a)(ii), a certificate executed by the Chief Financial
Officer of the Company stating that such officer has caused this Agreement and
the terms of the Series H, Series I and Series J Preferred to be reviewed and
has no knowledge of any default by the Company in the performance or observance
of any of the provisions of this Agreement or the Series H, Series I and Series
J Preferred or, if such officer has such knowledge, specifying such default and
the nature thereof;

                                      -15-
<PAGE>   16
               (v) at the time of delivery of each quarterly statement pursuant
to Section 10(a)(ii), a management narrative report explaining all significant
variances from forecasts and all significant current developments in staffing,
marketing, sales and operations;

               (vi) promptly following receipt by the Company, each audit
response letter, accountant's management letter and other written report
submitted to the Company by its independent public accountants in connection
with an annual or interim audit of the books of the Company or any of its
Subsidiaries; and

               (vii) promptly, from time to time, such other information
regarding the business, financial condition, operations, property or affairs of
the Company and its Subsidiaries as such Major Shareholder reasonably may
request.

         (b) Reserve for Conversion Shares. The Company shall at all times
reserve and keep available out of its authorized but unissued shares of Common
Stock, for the purpose of effecting the conversion of the Series H, Series I and
Series J Preferred (including all of the Series H Preferred issuable upon
exchange of the Exchangeable Shares) and the Exchangeable Shares exchangeable
only for Common Stock from time to time outstanding, such number of its duly
authorized shares of Common Stock as shall be sufficient to effect the
conversion of such shares. If at any time the number of authorized but unissued
shares of Common Stock shall not be sufficient to effect the conversion of such
shares, the Company will forthwith take such corporate action as may be
necessary to increase its authorized but unissued shares of Common Stock to such
number of shares as shall be sufficient for such purposes; provided, however,
that nothing in this Section 11(b) shall supersede Sections 10(c)(vi) above, and
the Company shall not issue any shares of Common Stock if, after giving effect
thereto, there would not be a sufficient amount of authorized but unissued
Common Stock necessary to affect the conversion of the Series H, Series I and
Series J Preferred (including all of the Series H Preferred issuable upon
exchange of the Exchangeable Shares) and the Exchangeable Shares exchangeable
only for Common Stock as of such time of issuance. The Company will use all
reasonable best efforts to obtain any authorization, consent, approval or other
action by or make any filing with any court or administrative body that may be
required under applicable state securities laws in connection with the issuance
of shares of Common Stock upon conversion of the Series H, Series I and Series J
Preferred (including all of the Series H Preferred issuable upon exchange of the
Exchangeable Shares) and the Exchangeable Shares exchangeable only for Common
Stock.

         (c) Properties, Business and Insurance. The Company shall maintain and
cause each of its Subsidiaries to maintain as to their respective properties and
business, with financially sound and reputable insurers, insurance against such
casualties and contingencies and of such types and in such amounts as it, in the
Company's best judgment after due injury, customary for companies similarly
situated, which insurance shall be deemed by the Company to be sufficient. The
Company shall not cause or permit any assignment or change in beneficiary and
shall not borrow against any such policies. If requested by Major Shareholders
holding at least a majority of the outstanding Series H Preferred (including the
holders of Exchangeable Shares on an as-converted basis), Series I Preferred and
Series J Preferred, the Company will add one designee of such Major Shareholders
as a notice party for each such policy and shall request that the issuer of each
policy provide such designee with ten days' notice before such policy is

                                      -16-
<PAGE>   17
terminated (for failure to pay premiums or otherwise) or assigned or before any
change is made in the beneficiary thereof.

         (d) Directors and Officers Insurance. At such time as the Board
determines that it is in the best interests of the Company to obtain directors
and officers insurance, the Company will use its best efforts to obtain and
maintain in good standing comprehensive directors and officers insurance for the
directors and officers of the Company.

         (e) Inspection and Consultation. The Company shall permit and cause
each of its Subsidiaries to permit each Major Shareholder and such Persons as it
may designate, provided that such Persons sign the Company's standard
confidentiality agreement, at such Major Shareholder's expense, to visit and
inspect any of the properties of the Company and its Subsidiaries, examine their
books and take copies and extracts therefrom, discuss the affairs, finances and
accounts of the Company and its Subsidiaries with their officers, employees and
public accountants (and the Company hereby authorizes said accountants to
discuss with such Major Shareholder and such designees such affairs, finances
and accounts) and consult with the management of the Company and its
Subsidiaries as to their affairs, finances and accounts, all at reasonable times
and upon reasonable notice.

         (f) Restrictive Agreements Prohibited. Neither the Company nor any of
its Subsidiaries shall become a party to any agreement which by its terms
restricts the Company's performance of this Agreement, the Combination Agreement
(including all agreements and instruments entered into by the Company pursuant
thereto), the Series I Purchase Agreement, the Series J Purchase Agreement, the
Registration Rights Agreement or the Certificate.

         (g) Transactions with Affiliates. Except for transactions contemplated
by this Agreement or as otherwise approved by the Board, neither the Company nor
any of its Subsidiaries shall enter into any transaction with (1) any Person
who, directly or indirectly, owns or controls, is under common ownership or
control with, or is owned or controlled by, the Company, (2) any Person who is a
director, officer or partner or is, directly or indirectly, the beneficial owner
of 10% or more of any class of equity Securities of the Company or a Person
described in clause (1) above, (3) any Person of whom the Company is a partner
or is, directly or indirectly, the beneficial owner of 10% or more of any class
of equity Securities, (4) any Person in whom the Company has a substantial
beneficial interest, or (5) any relative or spouse of any of the foregoing
Persons described in clause (1), (2), (3) or (4) above, except for transactions
on customary terms related to a person's employment with the Company or any of
its Subsidiaries.

         (h) Compensation. The compensation to be paid to each future officer of
the Company employed after the date hereof and any change in compensation of any
current officer of the Company shall be recommended by the Compensation
Committee of the Board and approved by a majority of the Directors.

         (i) By-laws. The Company shall at all times cause its By-laws to
provide that, unless otherwise required by the laws of the State of Delaware,
(a) any two Directors or (b) any holder or holders of at least 25% of the
outstanding shares of Series H Preferred (including the holders of Exchangeable
Shares on an as-converted basis), Series I Preferred and Series J

                                      -17-
<PAGE>   18
Preferred (voting together as a single class), shall have the right to call a
meeting of the Board or stockholders. The Company shall at all times maintain
provisions in its By-laws and/or Certificate indemnifying all Directors against
liability and absolving all directors from liability to the Company and its
stockholders to the maximum extent permitted under the laws of the State of
Delaware.

         (j) Employee Nondisclosure and Developments Agreements. The Company
shall obtain, and shall cause its Subsidiaries to obtain, employee nondisclosure
and developments agreements from all future officers, key employees and other
employees who will have access to confidential information of the Company or any
of its Subsidiaries, upon their employment by the Company or any of its
Subsidiaries.

         (k) Maintenance of Ownership of Subsidiaries. Except with the approval
of the Board, the Company shall not sell or otherwise transfer any shares of
capital stock of any Subsidiary, except to the Company or another Subsidiary, or
permit any Subsidiary to issue, sell or otherwise transfer any shares of its
capital stock or the capital stock of any Subsidiary, except to the Company or
another Subsidiary.

         (l) Distribution by Subsidiaries. The Company shall not permit any
Subsidiary to purchase or set aside any sums for the purchase of, or pay any
dividend or make any distribution or, any shares of its stock, except for
dividends or other distributions payable to the Company or another Subsidiary.

         (m) Compliance with Laws. The Company shall comply, and cause each
Subsidiary to comply, with all applicable laws, rules, regulations and orders,
noncompliance with which could materially adversely affect is business or
condition, financial or otherwise.

         (n) Keeping of Records and Books of Account. The Company shall keep,
and cause each Subsidiary to keep, adequate records and books of account, in
which complete entities will be made in accordance with generally accepted
accounting principles consistently applied, reflecting all financial
transactions of the Company and such Subsidiary, and in which, for each fiscal
year, all proper reserves for depreciation, depletion, obsolescence,
amortization, taxes, bad debts and other purposes in connection with its
business shall be made.

         (o) U.S. Real Property Interest Statement. Upon a written request by
any Major Shareholder who is, or in whom a partner is, a "foreign person" for
purposes of Section 897 of the Internal Revenue Code, the Company shall provide
such Major Shareholder with a written statement informing the Major Shareholder
whether such Major Shareholder's interest in the Company constitutes a U.S. real
property interest. The Company's determination shall comply with the
requirements of Treasury Regulation Section 1.897-2(h)(1) or any successor
regulation, and the Company shall provide timely notice to the Internal Revenue
Service, in accordance with and to the extent required by Treasury Regulation
Section 1.897-2(h)(2) or any successor regulation, that such statement has been
made. The Company's written statement to any Major Shareholder shall be
delivered to such Major Shareholder within 30 days of such Major Shareholder's
written request therefor.
<PAGE>   19
         (p) Debt, Etc. The Company shall not, without the approval of the
Board, incur any debt or pledge or grant a security interest in its assets,
other than for working capital purposes in the ordinary course of the Company's
business, or issue any guarantee.

         (q) Small Business Investment Act Regulations. Each of the Major
Shareholders agrees to vote its securities in favor of any amendment or action
set forth in Section 6.3 of the Series J Purchase Agreement in order to
effectuate compliance with the Small Business Investment Act of 1958 and the
regulations issued thereunder as set forth in 13 CFR 107 and 121, as amended.

     12. Termination. This Agreement, and the respective rights and obligations
of the Major Shareholders, shall terminate on the closing of a Qualified Public
Offering.

     13. Notices. All notices and other communications hereunder shall be in
writing and shall be deemed to have been given when delivered personally or
mailed by first class, registered or certified mail, postage prepaid, or if
transmitted by fax or other form of recorded communication tested prior to
transmission to such party, to (i) in the case of notice to a Major Shareholder,
each Major Shareholder at its respective address specified on Schedule A, or to
such other address as the addressee shall have furnished to the other Major
Shareholders hereto in the manner prescribed by this Section 13 or (ii) in the
case of the Company at Two Apple Hill Drive, Natick, MA 01760, Attention: Chris
Butler, Fax: (508)-655-0473.

     14. Failure to Deliver Shares. If a Major Shareholder becomes obligated to
sell any Servicesoft Shares to another Major Shareholder under this Agreement
and fails to deliver such Servicesoft Shares in accordance with the terms of
this Agreement (the "Non-delivering Major Shareholder"), such other Major
Shareholder may, at its option, in addition to all other remedies it may have,
send to the Non-delivering Major Shareholder the purchase price for such
Servicesoft Shares as is herein specified. Thereupon, the Company upon written
notice to the Non-delivering Major Shareholder, (a) shall cancel on its books
the certificate or certificates representing the Servicesoft Shares to be sold
and (b) shall issue, in lieu thereof, in the name of such other Major
Shareholder a new certificate or certificates representing such Servicesoft
Shares, and thereupon all of the Non-delivering Major Shareholders' rights in
and to such Servicesoft Shares shall terminate.

     15. Specific Performance. The rights of the Major Shareholders under this
Agreement are unique and, accordingly, the Major Shareholders shall, in addition
to such other remedies as may be available to any of them at law or in equity,
have the right to enforce their rights hereunder by actions for specific
performance to the extent permitted by law.

     16. Stock Certificate Legends. Each certificate evidencing the Servicesoft
Shares issued on or after the date hereof, and each certificate issued on or
after the date hereof for any such securities issued to subsequent transferees
of any such certificate shall be stamped or otherwise imprinted with a legend in
substantially the following form (in additional to any legend required under
applicable state securities laws):

                                      -19-
<PAGE>   20
               THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
               REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
               STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, OFFERED
               FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF WITHOUT
               REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
               UNDER APPLICABLE STATE SECURITIES LAW, UNLESS THE ISSUER SHALL
               HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
               THE ISSUER THAT THE SECURITIES REPRESENTED BY THIS CERTIFICATE
               MAY BE LEGALLY SOLD OR DISTRIBUTED PURSUANT TO EXEMPTION FROM
               REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
               WITHOUT REGISTRATION UNDER THEN APPLICABLE STATE AND FEDERAL
               LAWS.

               THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT
               TO CERTAIN RESTRICTION ON TRANSFER CONTAINED IN AN AGREEMENT
               BETWEEN THE ISSUER AND THE STOCKHOLDER, COPIES OF WHICH MAY BE
               OBTAINED FROM THE ISSUER OR FROM THE HOLDER OF THIS CERTIFICATE.
               NO TRANSFER OF SUCH SECURITIES SHALL BE MADE ON THE BOOKS OF THE
               ISSUER UNLESS ACCOMPANIED BY EVIDENCE OF COMPLIANCE WITH THE
               TERMS OF SUCH AGREEMENT.

         Upon request of a holder of such a certificate, the Company shall
remove the foregoing legends from the certificate or issue to such Holder a new
certificate therefor free of any transfer legend, provided, that the Company
receives either an opinion or a "no-action" letter to the effect that any
transfer by such Holder of the securities evidenced by such certificate shall
not violate the Securities Act and applicable state securities laws, unless any
such transfer legend may be removed pursuant to Rule 144(k), in which case no
such opinion or "no-action" letter shall be required. Notwithstanding the
foregoing, upon request of a holder of such a certificate, the Company shall
remove the second paragraph of the legend from the certificate or issue to such
holder a new certificate therefor free of such second paragraph at any time
after this Agreement and the Registration Rights Agreement have terminated or
the holder of the certificate is no longer subject to the provisions of this
Agreement.

         17. Entire Agreement. This Agreement constitutes the entire agreement
among the Major Shareholders with respect to the subject matter hereof with
regard to the Servicesoft Shares (or their predecessor securities) and supersede
all prior agreements and understandings between them or any of them as to such
subject matter including the Amended and Restated Shareholders Agreement.

         18. Waivers and Further Agreements. Any of the provisions of this
Agreement may be waived with the written consent of Major Shareholders owning
67% of the Servicesoft Shares then owned by all Major Shareholders (calculated
on an as-converted basis), provided, however, that no Major Shareholder (or
group of Major Shareholders) shall lose their entitlement to representation on
the Board under Section 6(a) as a result of this paragraph without their
consent. Any waiver by any Major Shareholder of a breach of any provision of
this Agreement shall not operate or be construed as a waiver of any subsequent
breach of that provision or of any other

                                      -20-
<PAGE>   21
provision hereof. Each of the Major Shareholders agrees to execute all such
further instruments and documents and to take all such further action as any
other Major Shareholder may reasonably require in order to give effect to the
terms and purposes of this Agreement and, in particular, each of the Major
Shareholders agrees to exercise the voting rights attached to the Securities of
the Company (or its Subsidiaries) held by it in order to give effect to the
terms and purposes of this Agreement.

         19. Amendments. Except as otherwise expressly provided herein, this
Agreement may not be amended except by an instrument in writing executed by
Major Shareholders owning 67% of the Servicesoft Shares then owned by all Major
Shareholders (calculated on an as-converted basis), provided, however, that no
Major Shareholder (or group of Major Shareholders) shall lose their entitlement
to representation on the Board under Section 6(a) as a result of this Section 19
without their consent; provided further, however, that Section 10(b) of this
Agreement may not be amended except by an instrument in writing executed by the
holders of a majority of the Series J Preferred then outstanding; provided
further, however, that any subsequent purchaser of the Series J Preferred may
become party to this Agreement by executing a signature page hereto and shall be
a Major Shareholder for purposes of this Agreement. The Company shall amend
Schedule A to reflect such subsequent purchasers and shall deliver a copy
thereof to the other parties to this Agreement.

         20. Assignment; Successors and Assigns. This Agreement shall be binding
upon and shall inure to the benefit of the Major Shareholders and their
respective heirs, executors, legal representatives, successors and permitted
transferees, except as may be expressly provided otherwise herein.

         21. Severability. In case any one or more of the provisions contained
in this Agreement shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision of this Agreement and such invalid, illegal
and unenforceable provision shall be reformed and construed so that it will be
valid, legal, and enforceable to the maximum extent permitted by law.

         22. Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. Facsimile counterpart signatures to this Agreement
shall be acceptable and binding.

         23. Governing Law. This Agreement shall be governed by and construed
and enforced in accordance with the internal laws of the State of Delaware.

                            [SIGNATURE PAGE FOLLOWS]

                                      -21-
<PAGE>   22
         IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first written above.

"COMPANY"                             SERVICESOFT TECHNOLOGIES, INC.

                                      By: /s/ Chris Butler
                                          ------------------
                                          Chris Butler
                                          President and Chief Executive Officer

"MAJOR SHAREHOLDERS"

                                      /s/ Les Abelson
                                      ------------------------
                                      LES ABELSON

                                      /s/ Frederick R. Adler
                                      ------------------------
                                      FREDERICK R. ADLER

                                      AMERICAN FARM INVESTMENT CORPORATION

                                      By:
                                      Name:
                                      Its:

                                      /s/ Richard M. Bogoroch
                                      ------------------------
                                      RICHARD M. BOGOROCH

                                      CIBC WMV INC.

                                      By: /s/ T. Rosenberg
                                          --------------------
                                      Name: T. Rosenberg
                                      Its:  Managing Director

            [SIGNATURE PAGE TO SECOND AMENDED SHAREHOLDERS AGREEMENT]
<PAGE>   23
                                      ELRON ELECTRONICS INDUSTRIES LTD.

                                      By: /s/ Illegible
                                          --------------------
                                      Name:
                                      Its:

                                      FINANCIAL TECHNOLOGIES VENTURES L.P

                                      By: /s/ Initials
                                          --------------------
                                      Name:  Scott Wu
                                      Its:  Managing Member

                                      FINANCIAL TECHNOLOGIES VENTURES (Q) L.P.

                                      By: /s/ Initials
                                          --------------------
                                      Name:  Scott Wu
                                      Its:  Managing Member

            [SIGNATURE PAGE TO SECOND AMENDED SHAREHOLDERS AGREEMENT]
<PAGE>   24
                                      GEMINI ISRAEL II L.P.

                                      By: /s/ Illegible
                                          --------------------
                                      Name:
                                      Its:

                                      GEMINI ISRAEL II PARALLEL FUND L.P.

                                      By: /s/ Illegible
                                          --------------------
                                      Name:
                                      Its:

                                      ADVENT PGGM GEMINI L.P.

                                      By: /s/ Illegible
                                          --------------------
                                      Name:
                                      Its:

                                      GEMINI PARTNER INVESTORS L.P.

                                      By: /s/ Illegible
                                          --------------------
                                      Name:
                                      Its:

            [SIGNATURE PAGE TO SECOND AMENDED SHAREHOLDERS AGREEMENT]
<PAGE>   25
                                      /s/ Tony Graci
                                      ------------------------
                                      TONY GRACI, IN TRUST

                                      GREY ADVERTISING LTD.

                                      By: /s/ Illegible
                                          --------------------
                                      Name:
                                      Its:

                                      INTERNET CAPITAL GROUP, INC.

                                      By: /s/  C. Greendale
                                          --------------------
                                      Name:  C. Greendale
                                      Its:  M. Director

                                      INTEL CORPORATION

                                      By:
                                      Name:
                                      Its:

                                      J.L. ALBRIGHT II VENTURE FUND

                                      By: /s/  Gary Rubinoff
                                          --------------------
                                      Name:  Gary Rubinoff
                                      Its:

            [SIGNATURE PAGE TO SECOND AMENDED SHAREHOLDERS AGREEMENT]
<PAGE>   26
                                      LRJ TECHNOLOGIES INC.

                                      By:
                                      Name:
                                      Its:

                                      NETMANAGE INC.

                                      By: /s/ Z. Alon
                                          --------------------
                                      Name:  Zvi Alon
                                      Its:  Chairman and CEO

                                      ORIEN II, L.P.

                                      By: Orien II Partners, L.P.
                                      Its: General Partner

                                      By: Orien Ventures Partners, L.P.
                                      Its: General Partner

                                      By: /s/ George R. Kalan
                                          --------------------
                                      Name: George R. Kalan
                                      Its:  Managing General Partner

                                      SAMJANK INC.

                                      By: /s/ Christopher Eaton
                                          --------------------
                                      Name: Christopher Eaton
                                      Its:

            [SIGNATURE PAGE TO SECOND AMENDED SHAREHOLDERS AGREEMENT]
<PAGE>   27
                                      /s/ Gerald Segal
                                      ------------------------------
                                      GERALD SEGAL

                                      SIGMA PARTNERS IV, L.P.

                                      By: Sigma Management, IV, L.L.C.
                                      Its: General Partner

                                      By: /s/ Wade Woodson
                                      ------------------------------
                                      Name: Wade Woodson
                                      Its:  Managing Director

                                      SIGMA ASSOCIATES IV, L.P.

                                      By: Sigma Management IV, L.L.C.
                                      Its: General Partner

                                      By: /s/ Wade Woodson
                                      ------------------------------
                                      Name: Wade Woodson
                                      Its:  Managing Director

                                      SIGMA INVESTORS IV, L.L.C.

                                      By: Sigma Management IV, L.L.C.
                                      Its:

                                      By: /s/ Wade Woodson
                                      ------------------------------
                                      Name: Wade Woodson
                                      Its:  Managing Director

            [SIGNATURE PAGE TO SECOND AMENDED SHAREHOLDERS AGREEMENT]
<PAGE>   28
                                      SIGMA PARTNERS IV, L.P.

                                      By: Sigma Management, IV, L.L.C.
                                      Its: General Partner

                                      By: /s/ Robert E. Davoli
                                      ------------------------------
                                      Name: Robert E. Davoli
                                      Its:

                                      SIGMA ASSOCIATES IV, L.P.

                                      By: Sigma Management IV, L.L.C.
                                      Its: General Partner

                                      By: /s/ Robert E. Davoli
                                      ------------------------------
                                      Name: Robert E. Davoli
                                      Its:

                                      SIGMA INVESTORS IV, L.L.C.

                                      By: Sigma Management IV, L.L.C.
                                      Its:

                                      By: /s/ Robert E. Davoli
                                      ------------------------------
                                      Name: Robert E. Davoli
                                      Its:

            [SIGNATURE PAGE TO SECOND AMENDED SHAREHOLDERS AGREEMENT]
<PAGE>   29
                                      SIGMA PARTNERS V, L.P.

                                      By: Sigma Management, IV, L.L.C.
                                      Its: General Partner

                                      By: /s/ C. Haas
                                         ---------------------------
                                      Name:  Clifford L. Haas
                                      Its:  Managing Director

                                      SIGMA ASSOCIATES V, L.P.

                                      By: Sigma Management V, L.L.C.
                                      Its: General Partner

                                      By: /s/ C. Haas
                                         ---------------------------
                                      Name:  Clifford L. Haas
                                      Its:  Managing Director

                                      SIGMA INVESTORS V, L.L.C.

                                      By: Sigma Management IV, L.L.C.
                                      Its:

                                      By: /s/ C. Haas
                                         ---------------------------
                                      Name:  Clifford L. Haas
                                      Its:  Managing Director

           [SIGNATURE PAGE TO SECOND AMENDED SHAREHOLDERS AGREEMENT]
<PAGE>   30
                                      SOFINOV, SOCIETE FINANCIERE D'INNOVATION
                                      INC., FILIALE DE LA CAISSE DE DEPOT ET
                                      PLACEMENTS DU QUEBEC

                                      By: /s/ Illegible
                                         ---------------------------
                                      Name:
                                      Its:
<PAGE>   31
                                      /s/ F. Mark D'Annolfo
                                         ---------------------------
                                           MARK D'ANNOLFO

           [SIGNATURE PAGE TO SECOND AMENDED SHAREHOLDERS AGREEMENT]
<PAGE>   32
                                      THE GOLDMAN SACHS GROUP, INC.

                                      By: /s/ Illegible
                                      -------------------------------
                                      Name:
                                      Its:

                                      STONE STREET FUND 2000, LLC

                                      By: /s/ Katherine L. Nissenbaum
                                      -------------------------------
                                      Name: Katherine L. Nissenbaum
                                      Its:  Vice President

            [SIGNATURE PAGE TO SECOND AMENDED SHAREHOLDERS AGREEMENT]
<PAGE>   33
                                MORGAN STANLEY DEAN
                                WITTER EQUITY FUNDING, INC.
                                (Print name of shareholder)

                                By: /s/ David Powers
                                ------------------------------
                                Name: David Powers
                                Its:  Vice President

                                ITOCHU TECHNO-SCIENCE
                                CORPORATION
                                (Print name of shareholder)

                                By: H. Satake
                                ------------------------------
                                Name:  H. Satake
                                Its: President

                                ITOCHU TECHNOLOGY, INC.
                                ------------------------------
                                (Print name of shareholder)

                               By: /s/ Takahiro Susaki
                                   ---------------------------
                                Name: Takahiro Susaki
                                Its:  President

                                ITOCHU CORPORATION
                                ------------------------------
                                (Print name of shareholder)

                                By: /s/ Eizo Kobayashi
                                    ------------------------------
                                Name: Eizo Kobayashi
                                Its:  Chief Operating Officer, Information
                                      Technology and Telecommunications Division
<PAGE>   34
                                      Alf Saggese
                                      --------------------------
                                      (Print name of shareholder)

                                      By: /s/ Alf Saggese
                                      --------------------------
                                      Name:  MD Servicesoft EMEA
                                      Its:

                                      THE REEZ TRUST
                                      (Print name of shareholder)

                                      By: /S/ Illegible
                                      --------------------------
                                      Name:
                                      Its:

                                      ROBERT J. GALIUS
                                      (Print name of shareholder)

                                      By: /s/ Robert J. Galius
                                          ---------------------
                                      Name:  Robert J. Galius
                                      Its:

                                      ED BOYAJIAN
                                      --------------------------
                                      (Print name of shareholder)

                                      By: /s/ E. Boyajian
                                      --------------------------
                                      Name: Ed Boyajian
                                      Its:

                                      DANIEL KOSSMANN
                                      (Print name of shareholder)

                                      By: /s/ Daniel Kossmann
                                      --------------------------
                                      Name: Daniel Kossmann
                                      Its:

<PAGE>   35

                                          Massood Zarrabian
                                      ------------------------------------------
                                      (Print name of shareholder)

                                      By: /s/ Massood Zarrabian
                                        ----------------------------------------
                                      Name: Massood Zarrabian
                                      Its:

                                      CHET BARNARD
                                      ------------------------------------------
                                      (Print name of shareholder)

                                      By: /s/ Chet Barnard
                                        ----------------------------------------
                                      Name:
                                      Its:

                                      PAUL MAGUIRE
                                      ------------------------------------------
                                      (Print name of shareholder)

                                      By: /s/ Paul R. Maguire
                                        ----------------------------------------
                                      Name:
                                      Its:

                                      JEFF WHITNEY
                                      ------------------------------------------
                                      (Print name of shareholder)

                                      By: /s/ J. Whitney
                                        ----------------------------------------
                                      Name:
                                      Its:

<PAGE>   36
                                      JIM KELLER
                                      ------------------------------------------
                                      (Print name of shareholder)

                                      By: /s/ Jim Keller
                                        ----------------------------------------
                                      Name:
                                      Its:  SVP, Strategic Alliances

                                      DALE KENNEDY
                                      ------------------------------------------
                                      (Print name of shareholder)

                                      By: /s/ Dale Kennedy
                                        ----------------------------------------
                                      Name:
                                      Its:

                                      /s/ Initials
                                      MARK SKAPINKER

           [SIGNATURE PAGE TO SECOND AMENDED SHAREHOLDERS AGREEMENT]

<PAGE>   37
                                   SCHEDULE A

                               MAJOR SHAREHOLDERS
<TABLE>
<CAPTION>
                MAJOR SHAREHOLDERS                  EXCHANGEABLE   EXCHANGEABLE     SERIES H       SERIES I          SERIES J
                                                       COMMON        PREFERRED      PREFERRED      PREFERRED        PREFERRED
<S>                                                 <C>            <C>              <C>            <C>              <C>
Frederick R. Adler                                                                   528,426           30,488           103,211
c/o Jay Nickse
Venad Administrative Services, Inc.
342 Madison Avenue, #807
New York, NY 10173
Fax: 212-599-2526

American Farm Investment Corporation                                98,518
BCE Place, 161 Bay Street, 49th Floor
Toronto, Ontario M5J 2S1
Attn:  Gerry Schwartz
Fax: 416-362-5765

Richard M. Bogoroch                                   17,315                                            9,756             4,651
15 Caravan Drive
Don Mills, Ontario, M3B 1M9
Fax: 416-868-3134

CIBC WMV Inc.                                                                                       1,219,512           350,831
161 Bay Street, 8th Floor
BCE Place
Toronto, Ontario M5J 2F8
Attn: Teddy Rosenberg
Fax: 416-594-8037

Elron Electronics Industries Ltd.                                                    804,653
P.O. Box 1573
Haifa, Israel 31015
Attn: Doron Birger
Fax: 972-4-855-0248
</TABLE>
<PAGE>   38
<TABLE>
<CAPTION>
<S>                                                <C>          <C>             <C>                <C>            <C>
Financial Technologies Ventures, L.P.                                                                   33,659          280,731
Financial Technologies Ventures (Q), L.P.                                                              941,951       (aggregate)
601 California Street, Suite 2200
San Francisco, CA 94108
Attn: Scott Wu
Fax: 415-229-3005

Gemini Israel II L.P.                                             226,820                              193,804          121,703
Advent PGGM Gemini L.P.                                           306,207*                              29,071           18,256
Gemini Israel II Parallel Fund L.P.                                34,023*                             261,637          164,299
Gemini Partner Investors L.P.                                                                            3,293            2,165
c/o Gemini Capital Fund
Management Ltd.
11 Galgalei Haplada Street
P.O. Box 12548
Industrial Zone
Herzlyia 46733 Israel
Attn: Tali Aben
Fax: 011-972-9-958-8442

Tony Graci, in trust                                                                                    24,390
c/o Graci & Associates
350 Bay Street, 9th Floor
Toronto, Ontario M5H 2SE
Fax: 416-367-4098

Grey Advertising Ltd.                                             141,759                               20,889
1881 Yonge Street
Toronto, Ontario M4S 3C4
Attn: Tony Russell
Fax: 416-488-7071

Intel Corporation                                                               840,329
2200 Mission College Boulevard                                                   63,025(1)
#SC4-210
Santa Clara, CA 95052
Attn:  Tamiko Hutchinson
Fax: 408-765-6038

Internet Capital Group, Inc.                                                    630,247                92,868          208,084
45 Milk Street
Boston, MA 02109
Attn: Chris Greendale
Fax: 617-338-7117

J.L. Albright II Venture Fund, L.P.                               708,808                             104,445          147,287
Canada Trust Tower
BCE Place, Suite 440
161 Bay Street
Toronto, Ontario,
CANADA M5J 2S1
Attn: Gary Rubinoff
Fax: 416-943-6160
</TABLE>

--------

*Represents options exerciseable for Exchangeable Preferred Shares of Balisoft
Ltd. which are exchangeable for Exchangeable Preferred.

1    Represents warrants to purchase Series H Preferred Stock.
<PAGE>   39
<TABLE>
<CAPTION>
<S>                                                <C>                <C>          <C>                <C>            <C>
George R. Kalan                                                                          12,238                            9,976
One Post Road
Fairfield, CT 06430
Fax: 203-259-5288

LRJ Technologies Inc.                               1,206,753(2)                         56,710
c/o Brightspark
20 Eglinton Avenue West
Suite 600
Toronto, Ontario M4R 1K8
CANADA
Attn: Mark Skapinker
Fax: 416-488-1988

NetManage Inc.                                                                          269,038
10725 N. De Anza Boulevard
Cupertino, CA 95014
Attn: Zvi Alon
Fax: 408-257-1101

Orien II, L.P.                                                                          778,640
c/o Orien Ventures, Inc.
One Post Road
Fairfield, CT 06430
Attn: George Kalan
Fax: 203-259-5288

Gerald Segal                                                                                                 2,439
c/o Robertson Stephens Evergreen Ltd.
96 Rothschild Blvd.
65224 Tel-Aviv Israel
Fax: 011-9723-710-8220

Sigma Partners V, L.P.                                                                                                   385,271
Sigma Partners IV, L.P.                                                                  649,555            85,666
Sigma Associates IV, L.P.                                                                169,697            34,732
Sigma Investors IV, L.P.                                                                  21,078             3,427
20 Custom House Street, Suite 830
Boston, MA 02110
Attn:  Bob Davoli
Fax: 617-330-7975

Sofinov, Societe Financiere D'Innovation Inc.,                    708,808                                  853,659       449,502
Filiale de la Caisse de Depot et Placements du
Quebec
1981avenue, McGill College, 7th Floor
Montreal, Quebec H3A 3C7
Attn: Sophie Forest
Fax: 514-847-2628

Samjank Inc.                                           97,319                                                             16,833
c/o I.L.S. (Corporate Services) Ltd.
Second Floor, Atlantic House
Circular Road
Douglas, 1M1 1S2 Isle of Man
Fax: 44-171-287-4243
</TABLE>

--------

2    Exchanged into Common Stock of the Company.
<PAGE>   40
<TABLE>
<CAPTION>
<S>                                                                                                                      <C>
Les Abelson                                           97,318                                                              16,833
PO Box 352
Kochav Yair
4486 Israel

Mark Skapinker                                                                                                            27,685
c/o Brightspark
20 Eglinton Avenue West
Suite 600
Toronto, Ontario M4R 1K8
CANADA
Fax: 416-488-1988

Morgan Stanley                                                                                                           110,742
2 International Place
Boston, MA 02109
Attn: Charles Sansbury
Fax: 617-856-8017

Mark D'Annolfo                                                                                                            11,074
95 Suffolk Road
Chestnut Hill, MA 02467

The Goldman Sachs Group, Inc.                                                                                            664,452
Stone Street Fund 2000, LLC                                                                                              110,742
Goldman Sachs
85 Broad Street
New York, NY 10004
FAX: 212-357-5505

Bob Gailus                                                                                                                16,661
50 Riverside Drive #2B
New York, NY 10024

Washington Mall Partners                                                                                                   7,420
c/o John Egan
120 Fulton St., 3D
Boston, MA 02109

ITOCHU Techno-Science Corporation                                                                                         44,297
ITOCHU Corporation                                                                                                        44,297
ITOCHU Technology, Inc.                                                                                                   22,148
3100 Patrick Henry Drive
Santa Clara, CA  95054
Attn:  Takayuki Fukuhara
Fax:  408-727-4619

Chris Butler                                                                                                              55,371
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473

Ed Boyajian                                                                                                                5,537
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
</TABLE>

<PAGE>   41
<TABLE>
<CAPTION>
<S>                                                                                                                      <C>
Fax: (508) 655-0473

Daniel Kossmann                                                                                                           16,611
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473

Massood Zarrabian                                                                                                         22,148
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473

Chet Barnard                                                                                                               2,769
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473

Alf Saggese                                                                                                                9,967
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473

Paul Maguire                                                                                                               5,537
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473

Jeff Whitney                                                                                                               5,537
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473

Jim Keller                                                                                                                 9,967
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473

Dale Kennedy                                                                                                               5,537
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473

The Reez Trust                                                                                                             9,967
c/o Kaplan Talkins
2900 John Street
Suite 1A
Markham, Ontario L3R 5G3
CANADA
</TABLE>
<PAGE>   42
                                   SCHEDULE B
                               PREFERENCE AMOUNTS

<TABLE>
<CAPTION>
Securities Previously owned by Series H Preferred Holder                   Individual Preference Amounts
<S>                                                                        <C>
Series F Convertible Stock of the Company                                           $5,230,654
Series G Convertible Stock of the Company                                           $5,925,000
Preferred Shares of Balisoft Technologies Inc.                                      $8,047,532
Total Preference Amount                                                            $19,203,186
</TABLE><PAGE>   1

                                                                    EXHIBIT 10.2

                          SEVENTH AMENDED AND RESTATED
                          REGISTRATION RIGHTS AGREEMENT

         This Seventh Amended and Restated Registration Rights Agreement (this
"AGREEMENT") is entered into as of the 13th day of January, 2000 between
Servicesoft Technologies, Inc., a Delaware corporation (the "COMPANY"), and the
holders of Eligible Shares (as defined below) listed on SCHEDULE I hereto.

                                   WITNESSETH:

         WHEREAS, the Company and certain holders of Eligible Shares (as defined
herein) are parties to a Sixth Amended and Restated Registration Rights
Agreement dated June 18, 1999 (the "SIXTH AMENDED AND RESTATED AGREEMENT") with
respect to the registration of Registrable Securities (as defined herein) under
the Securities Act (as defined herein);

         WHEREAS, the Company and certain holders of Eligible Shares (the
"SERIES J HOLDERS") have entered into the Series J Convertible Preferred Stock
Purchase Agreement dated as of the date hereof (the "SERIES J PURCHASE
AGREEMENT");

         WHEREAS, as a condition to closing under the Series J Purchase
Agreement and as an inducement to the Series J Holders to consummate the
transactions contemplated by the Series J Purchase Agreement, the Company and
the undersigned parties desire to amend and restate the Sixth Amended and
Restated Agreement and to execute and deliver this Agreement;

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, receipt of which is hereby acknowledged, the parties
to this Agreement agree to amend and restate the Sixth Amended and Restated
Agreement as follows:

         1.       CERTAIN DEFINITIONS. As used in this Agreement, the following
terms shall have the following respective meanings:

                  "BUSINESS DAY" means a day, other than a Saturday or Sunday,
on which the principal commercial banks located in New York and Toronto are open
for business during normal banking hours.

                  "COMMISSION" means the Securities and Exchange Commission, or
any other federal agency at the time administering the Securities Act.

                  "CONVERSION SHARES" means shares of Common Stock of the
Company issued upon conversion or exchange of the Eligible Shares.

                  "ELIGIBLE SHARES" means (i) shares of Series H Convertible
Preferred Stock of the Company held by the holders listed on SCHEDULE I, (ii)
the Series C Exchangeable Shares of

<PAGE>   2

Servicesoft Technologies (Canada), Inc. ("Servicesoft Canada") (or any Common
Stock issued in exchange thereof), (iii) the Series D Exchangeable Shares of
Servicesoft Canada (and any Series H Convertible Preferred Stock issued in
exchange therefor), (iv) shares of Series I Convertible Preferred Stock, par
value $.01 per share of the Company; and (v) shares of Series J Convertible
Preferred Stock, par value $.01 per share, of the Company.

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended, or any similar federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

                  "HOLDER" means any holder of Eligible Shares or Conversion
Shares.

                  "INITIAL PUBLIC OFFERING" means the initial offering to the
public of the Company's securities pursuant to a firm commitment underwriting
pursuant to the Securities Act.

                  "INITIATING HOLDERS" means any Holders who in the aggregate
are Holders of 15% or more of the Registrable Securities (determined on an
as-exchanged and as-converted basis), PROVIDED, that with respect to any request
pursuant to Section 3(a) to initiate a registration that would constitute the
Initial Public Offering of the Company's Common Stock, such percentage shall be
increased to 30%.

                  "PERSON" includes any individual, legal or personal
representative, partnership, company, corporation, incorporated syndicate,
unincorporated or incorporated association, trust or governmental agency,
howsoever designated or constituted.

                  The terms "REGISTER," "REGISTERED" and "REGISTRATION" shall
refer to a registration effected by preparing and filing a registration
statement in compliance with the Securities Act and applicable rules and
regulations thereunder, and the declaration or ordering of the effectiveness of
such registration statement.

                  "REGISTRABLE SECURITIES" means the Conversion Shares,
excluding Conversion Shares which (a) have been registered under the Securities
Act pursuant to an effective registration statement filed thereunder and
disposed of in accordance with the registration statement covering them, or (b)
with respect to any particular Holder, can all be publicly sold within a
three-month period, without regard to volume limitation, pursuant to Rule 144
under the Securities Act.

                  "REGISTRATION EXPENSES" means all expenses relating to a
registration for which the Company is responsible hereunder, including, without
limitation, all registration and filing fees, printing expenses, fees and
disbursements of counsel and independent public accountants for the Company,
blue sky fees and expenses, fees of any exchange or market on which the
Company's Common Stock is to be listed or quoted, transfer taxes, fees of
transfer agents and registrars, reasonable fees and disbursements of one legal
counsel for all the selling Holders and the expense of any special audits
incident to or required by any such registration (but excluding the compensation
of regular employees of the Company, which shall be paid in any event by the
Company).

                                       2
<PAGE>   3

                  "RESTRICTED SECURITIES" means the securities of the Company
required to bear or bearing the legend set forth in Section 2 hereof.

                  "SECURITIES ACT" means the Securities Act of 1933, as amended,
or any similar federal statute, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at this time.

                  "SELLING EXPENSES" means all underwriting discounts and
selling commissions applicable to the sale of Registrable Securities.

         2.       RESTRICTIONS ON TRANSFER. Restricted Securities may not be
transferred except upon the conditions specified in this Agreement, which
conditions are intended to ensure compliance with the provisions of the
Securities Act and, in the case of Section 16 hereof, to assist in an orderly
distribution. Each Holder of the Restricted Securities agrees that any
transferee of Restricted Securities held by that Holder shall take and hold
those securities subject to the provisions and upon the conditions specified in
this Agreement and each Holder shall cause any transferee to be bound by this
Agreement as a condition to completing any such transfer.

                  (a) STOCK CERTIFICATE LEGENDS. Each certificate delivered on
or after the date hereof evidencing the Eligible Shares and the Conversion
Shares, and each certificate for any such securities issued to subsequent
transferees of any such certificate shall be stamped or otherwise imprinted with
a legend in substantially the following form (in additional to any legend
required under applicable state securities laws):

                  THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
                  ANY STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED,
                  OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED
                  OF WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
                  AMENDED, AND UNDER APPLICABLE STATE SECURITIES LAW, UNLESS THE
                  ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY
                  SATISFACTORY TO THE ISSUER THAT THE SECURITIES REPRESENTED BY
                  THIS CERTIFICATE MAY BE LEGALLY SOLD OR DISTRIBUTED PURSUANT
                  TO EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF
                  1933, AS AMENDED, AND WITHOUT REGISTRATION UNDER THEN
                  APPLICABLE STATE AND FEDERAL LAWS.

                  THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO
                  SUBJECT TO CERTAIN RESTRICTION ON TRANSFER CONTAINED IN AN
                  AGREEMENT BETWEEN THE ISSUER AND THE STOCKHOLDER, COPIES OF
                  WHICH MAY BE OBTAINED FROM THE ISSUER OR FROM THE HOLDER OF
                  THIS CERTIFICATE. NO TRANSFER OF SUCH SECURITIES SHALL BE MADE
                  ON THE BOOKS OF THE ISSUER UNLESS ACCOMPANIED BY EVIDENCE OF
                  COMPLIANCE WITH THE TERMS OF SUCH AGREEMENT.

                                       3
<PAGE>   4

         Upon request of a Holder of such a certificate, the Company shall
remove the foregoing legend from the certificate or issue to such Holder a new
certificate therefor free of any transfer legend, PROVIDED, that the Company
receives either the opinion referred to in Section 2(b)(i) or the "no-action"
letter referred to in Section 2(b)(ii) to the effect that any transfer by such
Holder of the securities evidenced by such certificate shall not violate the
Securities Act and applicable state securities laws, unless any such transfer
legend may be removed pursuant to Rule 144(k), in which case no such opinion or
"no-action" letter shall be required. Notwithstanding the foregoing, upon
request of a Holder of such a certificate, the Company shall remove the second
paragraph of the legend from the certificate or issue to such Holder a new
certificate therefor free of such second paragraph at any time after this
Agreement has terminated or the Holder of the certificate is no longer subject
to the provisions of this Agreement and the Second Amended and Restated
Shareholders Rights Agreement of even date herewith.

                  (b) NOTICE OF PROPOSED TRANSFERS. Prior to any proposed
transfer of any Restricted Securities (other than under circumstances described
in Sections 3, 4, 5 and 8 hereof), the Holder thereof shall give written notice
to the Company of such Holder's intention to effect such transfer. Each such
notice shall describe the manner and circumstances of the proposed transfer in
sufficient detail, and shall be accompanied (except in transactions in
compliance with Rule 144), by either (i) a written opinion of legal counsel who
shall be reasonably satisfactory to the Company, addressed to the Company and
reasonably satisfactory in form and substance to the Company's counsel, to the
effect that the proposed transfer of the Registrable Securities may be effected
without registration under the Securities Act, or (ii) a "no action" letter from
the Commission to the effect that the distribution of such securities without
registration will not result in a recommendation by the staff of the Commission
that action be taken with respect thereto; PROVIDED, HOWEVER, that no such
opinion of counsel or "no action" letter shall be required for transfers to (i)
transfers to a Related Person (as defined below), or (ii) a trust for the
benefit of any individual Holder, PROVIDED, that the trust instrument governing
said trust shall provide that such Holder, as trustee, shall retain sole and
exclusive control over the voting and disposition of said Restricted Securities
until the termination of this Agreement; PROVIDED, that such transferee is not a
competitor of the Company and that such transfer does not violate any applicable
federal or state securities laws (each, a "PERMITTED TRANSFEREE"). A "RELATED
PERSON" means with respect to any Holder (x) any Person which is controlled by,
controls or is under common control with such Holder, (y) any partner,
shareholder or similar equity holder of such Holder or such Person described in
clause (x) above which receives securities in connection with a windup,
liquidation or similar dissolution of such Holder or such Person, or (z) any
individual, charitable trust or similar organization which receives Restricted
Securities from a Holder as part of a testamentary transfer by such Holder. For
purposes hereof, "control" and its derivatives shall mean, with respect to any
Person, the power to direct and control the management or policies of such
Person, whether through the beneficial ownership of voting securities or
interests, by contract or agreement or otherwise. In the event of any such
transfer, other than pursuant to clause (ii) of this Section 2(b), such
Permitted Transferee of the Restricted Securities shall hold the Restricted
Securities so acquired with all the rights conferred by, and subject to all the
restrictions imposed by, this Agreement and shall be deemed a Holder for all
purposes hereof. Thereafter the Holder of such Registrable Securities shall be
entitled to transfer such Registrable Securities in accordance with the terms of
the notice delivered by the Holder to the Company.

                                       4
<PAGE>   5

                  (c)      TRANSFER PURSUANT TO RULE 144 OR RULE 144A. The
Company agrees to provide to the Holders or to any prospective purchasers
designated by the Holder, upon such a Holder's request the financial and other
information specified in Rule 144 or 144A under the Securities Act and to take
any other action or to execute any certificates necessary to permit a transfer
by any Holder to qualify for the exemption set forth in Rule 144 or 144A.

         3.       REQUESTED REGISTRATION.

                  (a)      REQUEST FOR REGISTRATION. If the Company receives
from Initiating Holders at any time after the earlier of 180 days following the
effective date of the Company's Initial Public Offering and February 17, 2002, a
written request that the Company effect any registration with respect to all or
a part of the Registrable Securities, the Company will:

                           (i)      promptly give written notice of the proposed
registration to all other Holders; and

                           (ii)     as soon as practicable, use its diligent
best efforts to effect such registration (including, without limitation, the
execution of an undertaking to file post-effective amendments, appropriate
qualification under applicable blue sky or other state securities laws and
appropriate compliance with applicable regulations issues under the Securities
Act) as may be so requested and would permit or facilitate the sale and
distribution of all or such portion of such Registrable Securities as are
specified in such request, together with all or such portion of the Registrable
Securities of any Holder or Holders joining in such request as are specified in
written request given within 30 days after receipt of such written notice from
the Company; PROVIDED, that, except to the extent the Company receives an
instruction to the contrary from a particular Holder within such 30 day period,
the Company shall include in such registration all Registrable Securities
beneficially owned by holders who are not signatories to this Agreement it being
understood that any such non-signatories who do not join in any underwriting
agreement related to such registration may be removed from such registration at
the election of the Company or the managing underwriter, and PROVIDED FURTHER,
that the Company shall not be obligated to effect, or take any action to effect,
any such registration pursuant to this Section 3:

                                    (1) in any particular jurisdiction in which
the Company would be required to execute a general consent to service of process
in effecting such registration, qualification or compliance, unless the Company
is already subject to service in such jurisdiction and except as may be required
by the Securities Act or applicable rules or regulations thereunder; or

                                    (2) after the Company has effected three
such registrations pursuant to this Section 3(a) and such registrations have
been declared or ordered effective and the sales of such Registrable Securities
shall have closed.

                  Subject to the foregoing clauses (1) and (2), the Company
shall file a registration statement covering the Registrable Securities so
requested to be registered as soon as practicable after receipt of the request
of the Initiating Holders. Regardless of which Initiating Holders makes a
request for registration pursuant to this Section 3(a), each Holder will have
the right to participate ratably with the others.

                                       5
<PAGE>   6

                  The registration statement filed pursuant to the request of
the Initiating Holders may, subject to the provisions of Section 3(b) below,
include other securities of the Company which are held by persons who, by virtue
of agreements with the Company, are entitled to include their securities in any
such registration, but the Company shall have no right to include any of its
securities in any such registration; PROVIDED, HOWEVER, that, in any
underwritten public offering contemplated by Sections 3, 5 and 8, the Holders of
Eligible Shares shall be entitled to sell such Eligible Shares to the
underwriters for conversion and sale of the shares of Common Stock issued upon
conversion thereof, subject to agreement of the underwriters.

                  The Company shall be entitled to postpone for a reasonable
period of time not to exceed three months the filing of a registration statement
otherwise required to be filed by it pursuant to this Section 3(a) if the
Company determines, in its reasonable judgment, that such registration would
materially interfere with any financing, acquisition, corporate reorganization
or other material transaction involving the Company and the Company promptly
gives written notice to the Holders who have initiated or elected to participate
in such registration including an explanation thereof. The Company shall not
exercise its right to defer a registration more than once in any 12-month period
or in any event if the effect would be to permit a registration of securities
(other than a registration that was pending at the time of the initial demand or
a registration on Form S-4, Form S-8 or any successor or similar form) to the
exclusion of such number of Registrable Securities as would otherwise have been
included in the registration statement the filing of which was deferred.

                  The Initiating Holders shall be entitled to withdraw any
registration request made pursuant to this Section 3(a), PROVIDED, that such
registration request shall nevertheless be counted toward the number of
registrations the Company is required to file pursuant to this Section 3(a)
unless the Holders reimburse the Company for all reasonable out-of-pocket costs
incurred by the Company prior to such withdrawal.

                  For purposes of provisions of Sections 3(a) and 7,
registrations relative to which less than 50% of the offered securities are in
fact sold shall not be included.

                  (b)      UNDERWRITING.

                  If the Initiating Holders intend to distribute the Registrable
Securities covered by their request by means of an underwriting, they shall so
advise the Company as a part of their request made pursuant to this Section 3
and the Company shall include such information in the written notice referred to
in Section 3(a) above. The right of any Holder to registration pursuant to
Section 3(a) shall be conditioned upon such Holder's participation in such
underwriting and the inclusion of such Holder's Registrable Securities in the
underwriting. A Holder may elect to include in such underwriting all or a part
of the Registrable Securities he holds.

         The Company (together with all Holders proposing to distribute their
securities through such underwriting) shall enter into an underwriting agreement
in customary form with the representative of the underwriter or underwriters
selected for such underwriting by a majority in interest of the Initiating
Holders. If any Holder of Registrable Securities who has requested inclusion in
such registration as provided above disapproves of the terms of the
underwriting, such person may elect to withdraw therefrom by written notice to
the Company, the underwriter

                                       6
<PAGE>   7

and the Initiating Holders. The securities so withdrawn shall also be withdrawn
from registration. If the underwriter has not limited the number of Registrable
Securities or other securities to be underwritten, the Company may include its
securities for its own account in such registration if the underwriter so agrees
and if the number of Registrable Securities and other securities which would
otherwise have been included in such registration and underwriting will not
thereby be limited or adversely affected.

         Notwithstanding the provisions of this Section 3(b), if the underwriter
determines that marketing factors require a limitation of the total number of
shares of Common Stock to be underwritten or a limitation of the total number of
shares of Common Stock to be sold by the Company, then the number of shares to
be included in the registration and the underwriting shall be allocated among
all Holders of such Registrable Securities on a pro rata basis based on the
number of Registrable Securities held by all such Holders (including Initiating
Holders), but excluding for such purpose the Reserved Portion (as hereinafter
defined); PROVIDED, that Registrable Securities held by holders who (i) are not
signatories to this Agreement, (ii) received, or have the right to receive,
Registrable Securities (A) in exchange for Exchangeable Common Shares or (B)
upon conversion of Series H Convertible Preferred Stock of the Company received,
or receivable, in exchange for Exchangeable Preferred Shares and (iii) who are
not entitled to sell all of their Registrable Securities within a three-month
period, without regard to volume limitation, pursuant to Rule 144 under the
Securities Act ("SPECIAL HOLDERS") shall not be subject to such "cut-back"
allocation, except to the extent that the Registrable Securities beneficially
owned by Special Holders that are to be included in the registration exceeds in
the aggregate 10% of the total number of Registrable Securities to be included
in such registration (the "RESERVED PORTION") (it being understood that
availability within the Reserved Portion shall be allocated among the Special
Holders on a pro-rata basis); and PROVIDED FURTHER, that the number of shares of
Registrable Securities to be included in such underwriting and registration
shall not be reduced unless all other securities of the Company are first
entirely excluded from the underwriting and registration. No stock excluded from
the underwriting by reason of the underwriter's marketing limitation shall be
included in such registration. If the Company determines not to participate in
any such underwriting, it may elect to withdraw therefrom by written notice to
the Holders of Registrable Securities and the underwriter. The securities so
withdrawn from such underwriting shall also be withdrawn from such registration.

         4.       RESALE SHELF REGISTRATION. As soon as practicable after the
first anniversary of the closing date of a Qualified Public Offering (as that
term is defined below), the Company will file a shelf registration statement
(the "Shelf Registration Statement") with the Commission and shall effect such
registrations, qualifications or compliances (including, without limitation, the
execution of any required undertaking to file post-effective amendments,
appropriate compliance with securities laws, requirements or regulations, and
subject to clauses (A) and (B) of the provisos to the first sentence of Section
3(a), appropriate qualifications under applicable blue sky or other state
securities laws) as are necessary in connection with the sale and distribution
of all Registrable Securities held by Holders who are not signatories to this
Agreement (and any other Holders who request inclusion in such registration
within 30 days of notice thereof by the Company, which notice shall be given to
all such other Holders not less than 30 days prior to the effectiveness of the
Shelf Registration Statement). The Company shall use its best efforts to
maintain the effectiveness of the Shelf Registration Statement (and such other
qualifications and compliances) for a period ending on the earlier of (i) three
years from the date of effectiveness of

                                       7
<PAGE>   8

the Shelf Registration Statement, (ii) the date all Registrable Securities
beneficially owned by Holders who are not signatories to this Agreement have
been disposed of pursuant to the Shelf Registration Statement, another
registration effected pursuant to the provisions of this Agreement or Rule 144
under the Securities Act and (iii) the date all Holders may dispose of their
Registrable Securities pursuant to Rule 144 within a three-month period without
regard to volume limitation. Notwithstanding the foregoing, the Company shall be
permitted to suspend the effectiveness of the Shelf Registration Statement for
such periods as may be reasonably necessary to amend the Shelf Registration
Statement so that it will not contain a misstatement of a material fact required
to be stated therein or omit to state a material fact necessary to be stated
therein to make the statements contained therein, in light of the circumstances
under which they are made, not misleading. The Company will use its best efforts
to file the Shelf Registration Statement on Form S-3 (or any successor form then
in effect) or, if it is not initially eligible to use Form S-3, to amend the
Shelf Registration Statement on Form S-3 at the earliest practical time. The
Company will not be obligated to enter into any underwriting agreement with
respect to the Shelf Registration Statement. Any Holders including Registrable
Securities in the Shelf Registration Statement shall comply with any blackout
periods (not to exceed 60 days) reasonably required by the managing underwriter
of another registration of Common Stock that becomes effective while the Shelf
Registration Statement is effective (or would be effective but for the third
preceding sentence). For purposes of this Section 4, a "Qualified Public
Offering" means a firm commitment, underwritten public offering pursuant to an
effective registration statement under the Securities Act of the Company's
Common Stock to the public with aggregate gross proceeds to the Company of not
less than $30,000,000 and which places a value on the Company of not less than
$250,000,000.

         5.       COMPANY REGISTRATION.

                  (a)      If the Company elects to register any of its
securities for purposes of a public offering of securities of the Company
(including, but not limited to, registration statements relating to secondary
offerings of securities of the Company), other than a registration relating
solely to employee benefit plans, a registration relating solely to a
transaction under Rule 145 of the Securities Act, or a registration on any
registration form which does not permit secondary sales or does not include
substantially the same information as would be required to be included in a
registration statement covering the sale of Registrable Securities, the Company
will:

                           (i)      promptly give to each Holder written notice
thereof (which shall include a list of the jurisdictions in which the Company
intends to attempt to qualify such securities under the applicable blue sky or
other state securities laws) at least 30 days prior to the filing of any
registration statement; and

                           (ii)     include in such registration (and any
related qualification under blue sky laws or other compliance), and in any
underwriting involved therein, all the Registrable Securities specified in a
written request or requests, made by any Holder within 30 days after receipt of
the written notice from the Company described in clause (i) above, except as set
forth in Section 5(b) below. Such written request may specify all or a part of a
Holder's Registrable Securities. Each Holder desiring to include in any such
registration statement all or any part of the Registrable Securities held by it
shall, within 30 days after the above-described notice from

                                       8
<PAGE>   9

the Company, so notify the Company in writing.

                  (b)      UNDERWRITING. If the registration of which the
Company gives notice is for a registered public offering involving an
underwriting, the Company shall so advise the Holders as a part of the written
notice given pursuant to Section 5(a)(i). In such event the right of any Holder
to registration pursuant to Section 5(a) shall be conditioned upon such Holder's
participation in such underwriting and the inclusion of the Registrable
Securities such Holder elects to register in such underwriting to the extent
provided herein. All Holders proposing to distribute their securities through
such underwriting shall (together with the Company) enter into an underwriting
agreement in customary form with the underwriter or underwriters selected by the
Company. Notwithstanding the provisions of Section 5, if the underwriter
determines that marketing factors require a limitation of the total number of
shares to be underwritten or a limitation of the total number of shares of
Registrable Securities to be underwritten, the number of shares that may be
included in the underwriting shall be allocated, first, to the Company; second,
on a pro rata basis to all Holders based on the total number of Registrable
Securities held by each Holder; and third, to any shareholder of the Company
(other than a Holder) on a pro rata basis. No such reduction shall reduce the
amount of securities of the selling Holders included in the registration below
25% of the total amount of securities included in such registration, unless such
offering is the Initial Public Offering of the Company's Common Stock under the
Securities Act and such registration does not include shares of any other
selling shareholders, in which event any or all of the Registrable Securities of
the Holders may be excluded in accordance with the immediately preceding
sentence. In the event of such a "cut back" allocation to the Holders,
Registrable Securities held by Special Holders shall be allocated in the
aggregate (i) 10% of the allocation to all Holders as a group and (ii) a portion
of the remaining 90% of such allocation equal to the ratio of the number of
Registrable Securities sought to be included in such registration by Special
Holders to the number of Registrable Securities sought to be included in such
registration by all Holders. In no event will shares of any other selling
shareholder be included in such registration which would reduce the number of
shares which may be included by Holders without the written consent of Holders
of not less than 80% of the Registrable Securities proposed to be sold in the
offering. No stock excluded from the underwriting by reason of the underwriter's
marketing limitation shall be included in such registration. If any Holder of
Registrable Securities determines not to participate in any such underwriting,
such person may elect to withdraw therefrom by written notice to the Company and
the underwriter. The securities so withdrawn from such underwriting shall also
be withdrawn from such registration. Notwithstanding the foregoing provisions,
the Company may withdraw any registration statement referred to in this Section
5 without thereby incurring any liability to the holders of Registrable
Securities.

         6.       EXPENSES OF REGISTRATION. All Registration Expenses incurred
in connection with any registration, qualification or compliance pursuant to
this Agreement shall be borne by the Company, and all Selling Expenses shall be
borne by the Holders of the securities so registered pro rata on the basis of
the number of their shares so registered. Fees of counsel retained by any
selling Holders shall, except to the extent they are Registration Expenses, be
borne by such Holder.

         7.       REGISTRATION ON FORM S-3. The Company shall use its best
efforts to qualify for registration on Form S-3 or any comparable or successor
form or forms. After the Company has

                                       9
<PAGE>   10

qualified for the use of Form S-3 in addition to the rights contained in the
foregoing provisions of this Agreement, the Holders of Registrable Securities
shall have the right to request registrations on Form S-3 at the expense of the
Company (such requests shall be in writing and shall state the number of shares
of Registrable Securities to be disposed of and the intended methods of
disposition of such shares by such Holder or Holders). The Company shall not be
required to effect more than two registrations on Form S-3 in any 12 month
period and the Company shall not be obligated to effect registrations on Form
S-3 for Holders proposing to sell Registrable Securities and such other
securities (if any) at an aggregate price to the public of less than $500,000.
The Company shall cause each registration on Form S-3 to remain effective for a
period of not less than four months at the expense of the Company.

         8.       REGISTRATION PROCEDURES. In the case of each registration
effected by the Company pursuant to this Agreement, the Company will keep each
Holder advised in writing as to the initiation of each registration and as to
the completion thereof. At its expense, the Company will:

                  (a)      prepare and file with the Commission a registration
statement (which, in the case of an underwritten public offering pursuant to
Section 3, shall be on Form S-1 or other form of general applicability
satisfactory to the managing underwriter selected as therein provided) with
respect to such securities and use its best efforts to cause such registration
statement to become and remain effective for a period of up to 120 days;

                  (b)      prepare and file with the Commission such amendments
and supplements to such registration statement and the prospectus used in
connection therewith as may be necessary to keep such registration statement
effective for the period specified in paragraph (a) above and comply with the
provisions of the Securities Act with respect to the disposition of all
Restricted Stock covered by such registration statement in accordance with the
sellers' intended method of disposition set forth in such registration statement
for such period;

                  (c)      furnish to each seller of Registrable Securities and
to each underwriter such number of copies of the registration statement and the
prospectus included therein (including each preliminary prospectus) as such
persons reasonably may request in order to facilitate the public sale or other
disposition of the Registrable Securities covered by such registration
statement;

                  (d)      use its best efforts to register or qualify the
Registrable Securities covered by such registration statement under the
securities or "blue sky" laws of such jurisdictions as the sellers of
Registrable Securities or, in the case of an underwritten public offering, the
managing underwriter reasonably shall request; PROVIDED, HOWEVER, that the
Company shall not for any such purpose be required to qualify generally to
transact business as a foreign corporation in any jurisdiction where it is not
so qualified or to consent to general service of process in any such
jurisdiction;

                  (e)      use its best efforts to list the Registrable
Securities covered by such registration statement with any securities exchange
on which the Common Stock of the Company is then listed;

                                       10
<PAGE>   11

                  (f)      immediately notify each seller of Registrable
Securities and each underwriter under such registration statement, at any time
when a prospectus relating thereto is required to be delivered under the
Securities Act, of the happening of any event of which the Company has knowledge
as a result of which the prospectus contained in such registration statement, as
then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing
and the Company will prepare a supplement or amendment to such prospectus in
order that such prospectus will not contain an untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading;

                  (g)      if the offering is underwritten and at the request of
any seller of Registrable Securities, use its best efforts to furnish in the
date that Registrable Securities are delivered to the underwriters for sale
pursuant to such registration: (i) an opinion dated such date of counsel
representing the Company for the purposes of such registration, addressed to the
underwriters and to such seller, stating that such registration statement has
become effective under the Securities Act and that (A) to the best knowledge of
such counsel, no stop order suspending the effectiveness thereof has been issued
and no proceedings for that purpose have been instituted or are pending or
contemplated under the Securities Act, (B) the registration statement, the
related prospectus and each amendment or supplement thereof comply as to form in
all material respects with the requirements of the Securities Act (except that
such counsel need not express any opinion as to financial statements contained
therein) and (C) to such other effects as reasonably may be requested by counsel
for the underwriters or by such seller or its counsel and (ii) a letter dated
such date from the independent public accountants retained by the Company,
addressed to the underwriters and to such seller, stating that they are
independent public accountants within the meaning of the Securities Act and
that, in the opinion of such accountants, the financial statements of the
Company included in the registration statement or the prospectus, or any
amendment or supplement thereof, comply as to form in all material respects with
the applicable accounting requirements of the Securities Act, and such letter
shall additionally cover such other financial matters (including information as
to the period ending no more than five Business Days prior to the date of such
letter) with respect to such registration as such underwriters reasonably may
request;

                  (h)      make available for inspection by each seller of
Registrable Securities, any underwriter participating in any distribution
pursuant to such registration statement, and any attorney, accountant or other
agent retained by such seller or underwriter, all financial and other records,
pertinent corporate documents and properties of the Company, and cause the
Company's officers, directors and employees to supply all information reasonably
requested by any such seller, underwriter, attorney, accountant or agent in
connection with such registration statement;

                  (i)      cause all Registrable Securities covered by the
registration statement to be listed on each securities exchange on which the
Company's Common Stock is then listed, and unless the same already exists,
provide a transfer agent, registrar and CUSIP number for all such Registrable
Securities not later than the effective date of the registration statement; and

                  (j)      otherwise comply with all applicable rules and
regulations of the Commission, and make available to its security holders, as
soon as reasonably practicable, an

                                       11
<PAGE>   12

earnings statement covering a period of 12 months, beginning within three months
after the effective date of the registration statement, which earnings statement
shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder.

         Each Holder agrees that, upon receipt of any notice from the Company of
the happening of any event of the kind described in Section 8(f), such Holder
will, as soon as is practical, discontinue disposition of its Registrable
Securities until such Holder's receipt of the copies of the supplemented or
amended prospectus covering such Registrable Securities.

         In connection with each registration hereunder, the sellers of
Registrable Securities will furnish to the Company in writing such information
with respect to themselves and the proposed distribution by them as reasonably
shall be necessary in order to assure compliance with federal and applicable
state securities laws.

         In connection with each registration pursuant to Sections 3, 5 or 7
covering an underwritten public offering, the Company and each seller agree to
enter into a written agreement with the managing underwriter selected in the
manner herein provided in such form and containing such provisions as are
customary in the securities business for such an arrangement between such
underwriter and companies of the Company's size and investment stature.

         9.       INDEMNIFICATION.

                  (a)      The Company will indemnify each Holder, each of its
officers, directors and partners, and each person controlling such Holder, with
respect to which registration, qualification or compliance has been effected
pursuant to this Agreement, and each underwriter, if any, and each person who
controls any underwriter, against all claims, losses, damages and liabilities
(or action in respect thereof) arising out of or based on any untrue statement
(or alleged untrue statement) of a material fact contained in any prospectus,
offering circular or other document (including any related registration
statement, notification or the like) incident to any such registration,
qualification or compliance, or based on any omission (or alleged omission) to
state thereto a material fact required to be stated therein or necessary to make
the statements therein not misleading, or any violation by the Company of the
Securities Act, the Exchange Act, any rule or regulation thereunder, or any
other federal or state securities laws applicable to the Company and relating to
action or inaction required of the Company in connection with any such
registration, qualification or compliance, and will reimburse each such Holder,
each of its officers, directors and partners, and each person controlling such
Holder, each such underwriter and each person who controls any such underwriter,
for any legal and any other expenses reasonably incurred in connection with
investigating and defending any such claim, loss, damage, liability or action,
including any of the foregoing incurred in settlement of any litigation
commenced or threatened as such expenses are incurred; PROVIDED, HOWEVER, that
the Company will not be liable in any such case to the extent that any such
claim, loss, damage, liability or expense arises out of or is based on any
untrue statement or omission based upon written information furnished to the
Company by such Holder or underwriter and stated to be specifically for use
therein; and PROVIDED FURTHER, HOWEVER, that the indemnity agreement contained
in this Section 9(a) will not apply to amounts paid in settlement if such
settlement is effected without the consent of the Company (which consent will
not be unreasonably withheld).

                                       12
<PAGE>   13

                  (b)      Each Holder will, if Registrable Securities held by
him are included in the securities as to which such registration, qualifications
or compliance is being effected, severally and not jointly, indemnify the
Company, each of its directors and officers and each underwriter, if any, of the
Company's securities covered by such a registration statement, each person who
controls the Company or such underwriter within the meaning of the Securities
Act, the Exchange Act, any rule or regulation thereunder, or any other federal
or state securities laws, each such other Holder and each of their officers,
directors and partners, and each person controlling such Holder, against all
claims, losses, damages and liabilities (or actions in respect thereof) arising
out of or based on any untrue statement (or alleged untrue statement) of a
material fact contained in any such registration statement, prospectus, offering
circular or other document, or any omission (or alleged omission) to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and will reimburse the Company and such
Holder, directors, officers, partners, persons, underwriters or control persons
for any legal or any other expenses reasonably incurred in connection with
investigating or defending any such claim, loss, damage, liability or action,
including any of the foregoing incurred in settlement of any litigation
commenced or threatened, in each case to the extent, but only to the extent,
that such untrue statement (or alleged untrue statement) or omission (or alleged
omission) is made in such registration statement, prospectus, offering circular
or other document in reliance upon and in conformity with written information
furnished to the Company by such Holder and stated to be specifically for use
therein; PROVIDED, HOWEVER, that the obligations of such Holders hereunder
(together with any other amounts payable under Section 9(d)) shall be limited to
an amount equal to the net proceeds to each such Holder of securities sold as
contemplated herein; and PROVIDED FURTHER, HOWEVER, that the indemnity agreement
contained in this Section 9(b) will not apply to amounts paid in settlement if
such settlement is effected without the consent of the majority of the Holders
against whom indemnity is sought (which consent will not be unreasonably
withheld), provided that it shall in no event be unreasonable for a Holder to
withhold such consent if any judgment or settlement (i) does not include as an
unconditional term thereof, the giving by the plaintiff or claimant to such
Holder of a release from all liability in respect of such violation or (ii)
which includes an admission of guilt on behalf of such Holder.

                  (c)      Promptly after receipt by an indemnified party
hereunder of notice of the commencement of any action, such indemnified party
shall, if a claim in respect thereof is to be made against the indemnifying
party hereunder, notify the indemnifying party in writing thereof, but the
omission so to notify the indemnifying party shall not relieve it from any
liability which it may have to such indemnified party other than under this
Section 9 and shall only relieve it from any liability which it may have to such
indemnified party under this Section 9 if and to the extent the indemnifying
part is prejudiced by such omission. In case any such action shall be brought
against any indemnified party and it shall notify the indemnifying party of the
commencement thereof, the indemnifying party shall be entitled to participate in
and, to the extent it shall wish, to assume and undertake the defense thereof
with counsel satisfactory to such indemnified party, and, after notice from the
indemnifying party to such indemnified party of its election so to assume and
undertake the defense thereof, the indemnifying party shall not be liable to
such indemnified party under this Section 9 for any legal expenses subsequently
incurred by such indemnified party in connection with the defense thereof other
than reasonable costs of investigation and of liaison with counsel so selected
as incurred; PROVIDED, HOWEVER, that, if the defendants in any such action
include both the indemnified party and the

                                       13
<PAGE>   14

indemnifying party and the indemnified party shall have reasonably concluded
that there may be reasonable defenses available to it which are different from
or additional to those available to the indemnifying party or if the interests
of the indemnified party reasonably may be deemed to conflict with the interests
of the indemnifying party, the indemnified party shall have the right to select
a separate counsel and to assume such legal defenses and otherwise to
participate in the defense of such action, with the expenses and fees of such
separate counsel and other expenses related to such participation to be
reimbursed by the indemnifying party as incurred.

                  (d)      In order to provide for just and equitable
contribution to joint liability under the Securities Act in any case in which
either (i) any Holder exercising rights under this Agreement, or any controlling
person of any such Holder, makes a claim for indemnification pursuant to this
Section 9 but it is judicially determined (by the entry of a final judgment or
decree by a court of competent jurisdiction and the expiration of time to appeal
or the denial of the last right of appeal) that such indemnification may not be
enforced in such case notwithstanding the fact that this Section 9 provides for
indemnification in such case, or (ii) contribution under the Securities Act may
be required on the part of any such selling Holder or any such controlling
person in circumstances for which indemnification is provided under this Section
9; then, and in each such case, the Company and such Holder will contribute to
the aggregate losses, claims, damages or liabilities to which they may be
subject (after contribution from others) in such proportion so that such Holder
is responsible for the portion represented by the percentage that the public
offering price of its Registrable Securities offered by the registration
statement bears to the public offering price of all securities offered by such
registration statement, and the Company is responsible for the remaining
portion; PROVIDED, HOWEVER, that, in any such case, (A) no such Holder will be
required to contribute any amount in excess (together with any amounts payable
under Section 9(b)) of the price to the underwriters of all such Registrable
Securities offered by it pursuant to such registration statement; and (B) no
person or entity guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) will be entitled to contribution from any
person or entity who was not guilty of such fraudulent misrepresentation.

         10.      CHANGES IN ELIGIBLE SHARES. If, and as often as, there is any
change in the Eligible Shares by way of a stock split, stock dividend,
combination or reclassification, or through a merger, consolidation,
reorganization or recapitalization, or by any other means, appropriate
adjustment shall be made in the provisions hereof so that the rights and
privileges granted hereby shall continue with respect to the Eligible Shares as
so changed.

         11.      INFORMATION BY HOLDER. Each Holder of Registrable Securities
shall furnish to the Company such information regarding such Holder and the
distribution proposed by such Holder as the Company may reasonably request in
writing and as shall be reasonably required in connection with any registration,
qualification or compliance referred to in this Agreement.

         12.      LIMITATIONS ON REGISTRATION OF ISSUES OF SECURITIES. From and
after the date of this Agreement, the Company shall not, without the prior
written consent of Holders of two-thirds of the Registrable Securities then
outstanding held by Holders who are signatories to this Agreement, enter into
any agreement with any holder or prospective holder of any securities of the
Company giving such holder or prospective holder equity registration rights
which are superior to, or which in any manner limit, the rights of the Holder's
hereunder.

                                       14
<PAGE>   15

         13.      RULE 144 REPORTING. With a view to making available the
benefits of certain rules and regulations of the Commission which may permit the
sale of the Restricted Securities to the public without registration, the
Company agrees to:

                  (a)      Make and keep public information available as those
terms are understood and defined in Rule 144 under the Securities Act, at all
times from and after the effective date of the first registration under the
Securities Act filed by the Company for an offering of its securities to the
general public;

                  (b)      Use its best efforts to file with the Commission in a
timely manner all reports and other documents required of the Company under the
Securities Act and the Exchange Act at any time after it has become subject to
such reporting requirements;

                  (c)      So long as a purchaser of Eligible Shares owns any
Restricted Securities, furnish to the purchaser of Eligible Shares forthwith
upon request a written statement by the Company as to its compliance with
reporting requirements of Rule 144 (at any time from and after 90 days following
the effective date of the first registration statement filed by the Company for
an offering of its securities to the general public), and of the Securities Act
and the Exchange Act (at any time after it has become subject to such reporting
requirements), a copy of the most recent annual or quarterly report of the
Company, and such other reports and documents so filed as a purchaser of
Eligible Shares may reasonably request in availing itself of any rule or
regulation of the Commission allowing a purchaser of Eligible Shares to sell any
such securities without registration.

         14.      REPRESENTATION AND WARRANTIES OF THE COMPANY. The Company
represents and warrants to the undersigned holders of Eligible Shares as
follows:

                  (a)      The execution, delivery and performance of this
Agreement by the Company have been duly authorized by all requisite corporate
action and will not violate any provision of law, any order of any court or
other agency of government, the Charter or By-laws of the Company or any
provision of any material indenture, agreement or other instrument to which it
or any of its properties or assets is bound, conflict with, result in a breach
of or constitute (with due notice or lapse of time or both) a default under any
such indenture, agreement or other instrument or result in the creation or
imposition of any lien, charge or encumbrance of any nature whatsoever upon any
of the properties or assets of the Company.

                  (b)      This Agreement has been duly executed and delivered
by the Company and constitutes the legal, valid and binding obligation of the
Company, enforceable in accordance with its terms (subject to equitable
principles and to applicable bankruptcy, reorganization, insolvency, moratorium
and other similar laws affecting the enforceability of creditors' rights
generally and to applicable laws affecting the enforceability of indemnification
and contribution).

         15.      TRANSFER OR ASSIGNMENT OF REGISTRATION RIGHTS. The rights to
cause the Company to register a Holder's securities granted to each Holder by
the Company under Sections 3, 4, 5 and 7 may be transferred or assigned by a
Holder (in compliance with Section 2) to a transferee or assignee of any of such
Holder's Restricted Securities if (i) there is transferred to such

                                       15
<PAGE>   16

transferee at least 40% of the total shares of Restricted Securities originally
issued to the direct or indirect transferor of such transferee (as adjusted for
stock splits and combinations) or (ii) such transferee or assignee is a
Permitted Transferee; PROVIDED, that the Company is given written notice by such
Holder at the time of or within a reasonable time after said transfer or
assignment, stating the name and address of said transferee or assignee and
identifying the securities with respect to which such registration rights are
being transferred or assigned; and PROVIDED FURTHER, that the transferee or
assignee of such rights assumes the obligations of such Holder under this
Agreement.

         16.      "MARKET STAND-OFF" AGREEMENT. Each Holder agrees, if requested
by the Company and an underwriter of Common Stock (or other securities) of the
Company, not to directly or indirectly sell, offer to sell, contract to sell
(including without limitation, short sell), grant any option to purchase or
otherwise transfer or dispose of any Common Stock (or other securities) of the
Company held by such Holder during the 180 day period following the effective
date of a registration statement (other than a Shelf Registration Statement) of
the Company filed under the Securities Act, PROVIDED, that:

                  (a)      such agreement only applies to the first such
registration statement of the Company including securities to be sold on its
behalf to the public in an underwritten offering; and

                  (b)      all officers and directors of the Company enter into
similar agreements.

         Such agreement shall be in writing in a form satisfactory to the
Company and such underwriter. The Company may impose stop-transfer instructions
with respect to the shares (or securities) subject to the foregoing restriction
until the end of said 180 day period.

         17.      MISCELLANEOUS.

                  (a)      SUCCESSORS AND ASSIGNS. All covenants and agreements
contained in this Agreement by or on behalf of any of the parties hereto shall
bind and inure to the benefit of the respective successors and assigns of the
Company and each of the Holders (including without limitation transferees of any
Eligible Shares or Restricted Stock), whether so expressed or not.

                  (b)      NOTICES. Any notice or other writing required or
permitted to be given under this Agreement or for the purposes of this Agreement
(referred to in this Section as a "NOTICE") to any party shall be sufficiently
given if delivered personally, or if sent by prepaid registered mail or if
transmitted by fax or other form of recorded communication tested prior to
transmission to such party:

                           (i)      in the case of a notice to the Holders at
the address listed below each Holder's name on SCHEDULE I,

                           (ii)     in the case of a notice to the Company at:

                                    Servicesoft Technologies, Inc.
                                    Two Apple Hill Drive

                                       16
<PAGE>   17

                                    Natick, MA 01760
                                    Attention: Chris Butler
                                    Fax: (508)-655-0473

                           with a copy to:

                                    McDermott, Will & Emery
                                    28 State Street
                                    Boston, MA 02109-1775
                                    Attention: John J. Egan III, P.C.
                                    Fax: (617) 535-3800

or at such other address as the party to whom such writing is to be given shall
have last notified to the party giving the same in the manner provided in this
Section. Any notice personally delivered to the party to whom it is addressed as
provided in this Section shall be deemed to have been given and received on the
day it is so delivered at such address, PROVIDED, that if such day is not a
Business Day then the notice shall be deemed to have been given and received on
the Business Day next following such day. Any notice mailed to the address and
in the manner provided for in this Section shall be deemed to have been given
and received on the fifth Business Day next following the date of its mailing.
Any notice transmitted by fax or other form of recorded communication shall be
deemed given and received on the first Business Day after its transmission.

                  (c)      GOVERNING LAW. This Agreement shall be governed and
construed in accordance with the internal laws of the State of Delaware without
regard to conflicts of law principles thereof.

                  (d)      AMENDMENT. This Agreement may not be amended or
modified, and no provision hereof may be waived, without the written consent of
the Company and the holders of at least two-thirds of the outstanding shares of
Restricted Securities held by Holders who are signatories to this Agreement;
PROVIDED, HOWEVER, that any subsequent purchaser of the Series J Preferred may
become party to this Agreement by executing a signature page hereto and shall be
a Holder for purposes of this Agreement. The Company shall amend SCHEDULE I to
reflect such subsequent purchasers and shall deliver a copy thereof to the other
parties to this Agreement.

                  (e)      SEVERABILITY. If any provision of this Agreement
shall be held to be illegal, invalid or unenforceable, such illegality,
invalidity or unenforceability shall attach only to such provision and shall not
in any manner affect or render illegal, invalid or unenforceable any other
provision of this Agreement, and this Agreement shall be carried out as if any
such illegal, invalid or unenforceable provision where not contained herein.

                  (f)      ENTIRE AGREEMENT. This Agreement, as restated herein,
and the other instruments referred to herein contain the entire agreement among
the parties with respect to the registration rights of holders of Eligible
Shares and supersede all prior and contemporaneous arrangements or
understandings with respect thereto, including the Sixth Amended and Restated
Agreement. Each Holder who is not a signatory to this Agreement shall be deemed
to be an

                                       17
<PAGE>   18

intended third party beneficiary hereof and shall be entitled to enforce all
rights, preferences and privileges afforded to such Holders hereunder.

                  (g)      COUNTERPARTS. This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Facsimile counterpart
signatures to this Agreement shall be acceptable and binding.

                            [SIGNATURE PAGE FOLLOWS]

<PAGE>   19

           IN WITNESS WHEREOF, the undersigned have executed this Agreement as
of the date first above written.

"COMPANY"                           SERVICESOFT TECHNOLOGIES, INC.

                                    By: /s/ Chris Butler
                                        ----------------------------------------
                                        Chris Butler
                                        President and Chief Executive Officer

"HOLDERS"

                                    /s/ Les Abelson
                                    --------------------------------------------
                                    LES ABELSON

                                    /s/ Illegible Designated Signatory Pursuant
                                        to Power of Attorney
                                    --------------------------------------------

                                    FREDERICK R. ADLER

                                    --------------------------------------------
                                    JAMES R. ADLER

                                    AMERICAN FARM INVESTMENT CORPORATION

                                    By: ________________________________________
                                    Name:
                                    Its:

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   20

                                      BANQUE EDOUARD CONSTANT
                                      For Delrina Holdings SA

                                      By: ______________________________________
                                          Name:
                                          Its:

                                      /s/ Richard M. Bogoroch
                                      ------------------------------------------
                                      RICHARD M. BOGOROCH

                                      CIBC WMV INC.

                                      By: /s/ T. Rosenberg
                                      ------------------------------------------
                                      Name: T. Rosenberg
                                      Its: Managing Director

                                      COMPAGNIE FINANCIERE CODELIS SA

                                      By: ______________________________________
                                      Name:
                                      Its:

                                      ------------------------------------------
                                      STEPHEN I. D'AGOSTINO

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   21

                                      DR CAPITAL I L.P.

                                      By: ______________________________________
                                      Name:
                                      Its:

                                      DR CAPITAL II ATHENA

                                      By: ______________________________________
                                      Name:
                                      Its:

                                      EDN EQUITIES

                                      By: Wolfson Equities, General Partner

                                      By: ______________________________________
                                      Name: Aaron Wolfson, General Partner

                                      ------------------------------------------
                                      PHILIP L. ELKYS

                                      ELRON ELECTRONICS INDUSTRIES LTD.

                                      By: /s/ Illegibile and /s/ Illegible
                                          --------------------------------------
                                      Name:
                                      Its: CEO and CFO

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   22

                                      ------------------------------------------
                                      HEINZ EPPLER

                                      ------------------------------------------
                                      K. JANE FANKHANEL

                                      ------------------------------------------
                                      RAYMOND FORTUNE

                                      /s/ Robert J. Gailus
                                      ------------------------------------------
                                      ROBERT J. GAILUS

                                      FINANCIAL TECHNOLOGIES VENTURES LIMITED
                                      PARTNERS

                                      By: /s/ Scott Wu
                                      ------------------------------------------
                                      Name: Scott Wu
                                      Its: Managing Member

                                      FINANCIAL TECHNOLOGIES VENTURES
                                      (Q) LIMITED PARTNERS

                                      By: /s/ Scott Wu
                                      ------------------------------------------
                                      Name: Scott Wu
                                      Its: Managing Member

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   23

                                      GEISCO INTERNATIONAL S.A.

                                      By: ______________________________________
                                      Name:
                                      Its:

                                      By: ______________________________________
                                      Name:
                                      Its:

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   24

                                       GEMINI ISRAEL II L.P.

                                       By: /s/ Illegible
                                           -------------------------------------
                                       Name:
                                       Its:

                                       GEMINI ISRAEL II PARALLEL FUND L.P.

                                       By: /s/ Illegible
                                           -------------------------------------
                                       Name:
                                       Its:

                                       ADVENT PGGM GEMINI L.P.

                                       By: /s/ Illegible
                                           -------------------------------------
                                       Name:

                                       Its:

                                       GEMINI PARTNER INVESTORS L.P.

                                       By: /s/ Illegible
                                           -------------------------------------
                                       Name:
                                       Its:

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   25

                                      GENERAL MOTORS HOURLY-RATE EMPLOYEES
                                      PENSION TRUST

                                      By: The Chase Manhattan Bank, Trustee

                                      By: ______________________________________
                                      Name:
                                      Its:

                                      GENERAL MOTORS SALARIED EMPLOYEES PENSION
                                      TRUST

                                      By: The Chase Manhattan Bank, Trustee

                                      By: ______________________________________
                                      Name:
                                      Its:

                                      /s/ Illegible
                                      ------------------------------------------
                                      TONY GRACI, IN TRUST

                                      FRANCIS L. GREENBERG LIVING TRUST

                                      By: ______________________________________
                                      Name: Francis L. Greenberg, Trustee

                                      ------------------------------------------
                                      MICHAEL GREENBERG

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   26

                                      /s/ Christopher H. Greendale
                                      ------------------------------------------
                                      CHRISTOPHER H. GREENDALE

                                      GREY ADVERTISING LTD.

                                      By: /s/ Illegible
                                          -------------------------------------
                                      Name:
                                      Its:

                                      ------------------------------------------
                                      HO SIM GUAN

                                      ------------------------------------------
                                      YAACOB HANNES

                                      INDRA 4

                                      By: Soma 3 L.P., as Partnership Manager

                                      By: Zimmerman Capital Associates, Inc.,
                                          as its General Partner

                                      By: ______________________________________
                                      Name:
                                      Its:

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   27

                                      INTERNET CAPITAL GROUP, INC.

                                      By: /s/ Christopher H. Greendale
                                          --------------------------------------
                                      Name: Christopher H. Greendale
                                      Its: Managing Director

                                      INTEL CORPORATION

                                      By: ______________________________________
                                      Name:
                                      Its:

                                      J.L. ALBRIGHT II VENTURE FUND

                                      By: /s/ Gary Rubinoff
                                          --------------------------------------
                                      Name: Gary Rubinoff
                                      Its:

                                      JONES LIVING TRUST

                                      By: ______________________________________
                                      Name:  Harvey Jones, Co-trustee

                                      /s/ George R. Kalan
                                      ------------------------------------------
                                      GEORGE R. KALAN

                                      ------------------------------------------
                                      SANFORD KAPLAN

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   28

                                      ------------------------------------------
                                      BERRY W. KEATING

                                      JEAN-CLAUDE LANDAU, TRUSTEE UNDER
                                      DECLARATION DATED 12/1/83

                                      By: ______________________________________
                                      Name:
                                      Its:

                                      LANDMARK EQUITY PARTNERS II, L.P.

                                      By: Landmark Partners II, L.P.
                                      Its: General Partner

                                      By: Landmark Advisors Inc.
                                      Its: Managing General Partner

                                      By: ______________________________________
                                      Name:
                                      Its:

                                      ------------------------------------------
                                      J. STUART LEMLE

                                      ELLIOT & RHODA LEVINTHAL, REVOCABLE
                                      TRUST U/T 10/9/80

                                      By: ______________________________________
                                      Name:
                                      Its:

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   29

                                      LRJ TECHNOLOGIES INC.

                                      By: /s/ Illegible
                                          --------------------------------------
                                      Name:
                                      Its:

                                      LUBAR NOMINEES

                                      By: ______________________________________
                                      Name:
                                      Its:

                                      JOHN T. LUPTON TRUST U/W THOMAS CARTTER
                                      LUPTON

                                      By: ______________________________________
                                              David S. Gonzales, Trustee

                                      By: ______________________________________
                                              John T. Lupton, Trustee

                                      By: ______________________________________
                                              Joel W. Richardson, Jr., Trustee

                                      ------------------------------------------
                                      CLIFFORD L. MICHEL

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   30

                                      W. JOST MICHAELSON REVOCABLE TRUST

                                      By: ______________________________________
                                      Name:
                                      Its:

                                      ------------------------------------------
                                      ALAN B. MILLER

                                      ------------------------------------------
                                      MARSHALL G. MINTZ

                                      ------------------------------------------
                                      NETMANAGE INC.

                                      By: /s/ Zvi Alon
                                          --------------------------------------
                                      Name: Zvi Alon
                                      Its: Chairman & CEO

                                      NORTHEAST VENTURES, INC.

                                      By: ______________________________________
                                      Name:
                                      Its:

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   31

                                      ORIEN II, L.P.

                                      By: Orien II Partners, L.P.
                                      Its: General Partner

                                      By: Orien Ventures Partners, L.P.
                                      Its: General Partner

                                      By: /s/ George R. Kalan
                                          --------------------------------------
                                      Name: George R. Kalan, Managing General
                                            Partner

                                      ------------------------------------------
                                      MAX PALEVSKY

                                      ------------------------------------------
                                      SHIELA H. PEETERS

                                      PHILIPS VENTURE PARTNERS, I

                                      By: Vista Ventures Partners, II
                                      Its: General Partner

                                      By: ______________________________________
                                      Name:
                                      Its:

                                      ------------------------------------------
                                      JEAN RENAULT

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   32

                                      ------------------------------------------
                                      PETER J. REPETTI

                                      ------------------------------------------
                                      SEYMOUR ROTHCHILD

                                      SAMJANK INC.

                                      By: /s/ Christopher Eaton
                                          --------------------------------------
                                      Name: Christopher Eaton
                                      Its:

                                      /s/ F. Mark D'Annolfo
                                      ------------------------------------------
                                      FREDERICK MARK D'ANNOLFO

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   33

                                      SIGMA PARTNERS IV, L.P.
                                      By: Sigma Management, IV, L.L.C.
                                      Its: General Partner

                                      By: /s/ Wade Woodson
                                          --------------------------------------
                                      Name: Wade Woodson
                                      Its: Managing Director

                                      SIGMA ASSOCIATES IV, L.P.
                                      By: Sigma Management IV, L.L.C.
                                      Its:  General Partner

                                      By: /s/ Wade Woodson
                                          --------------------------------------
                                      Name: Wade Woodson
                                      Its: Managing Director

                                      SIGMA INVESTORS IV, L.L.C.
                                      By: Sigma Management IV, L.L.C.
                                      Its: General Partner

                                      By: /s/ Wade Woodson
                                          --------------------------------------
                                      Name: Wade Woodson
                                      Its: Managing Director

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   34

                                      ------------------------------------------
                                      JODEY SILLS

                                      ------------------------------------------
                                      PENNY M. SILLS

                                      ------------------------------------------
                                      HAROLD SIMON

                                      ------------------------------------------
                                      ROY B. SIMPSON, JR.

                                      SOFINOV, SOCIETE FINANCIERE
                                      D'INNOVATION INC., FILIALE DE LA CAISSE
                                      DE DEPOT ET PLACEMENTS DU QUEBEC

                                      By: /s/ Denis Pionne and /s/ Sophie Forest
                                          --------------------------------------
                                      Name: Denis Pionne and Sophie Forest
                                      Its: President and Director

                                      SOUTH FERRY #2 L.P.

                                      By: ______________________________________
                                      Name:
                                      Its:

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   35

                                      ------------------------------------------
                                      JOEL STONE

                                      SWIG INVESTMENT COMPANY

                                      By: ______________________________________
                                      Name:
                                      Its:

                                      ------------------------------------------
                                      HENRY TAUB

                                      ------------------------------------------
                                      GLEN A. TOBIAS

                                      ------------------------------------------
                                      GIDEON TOLKOWSKY

                                      ------------------------------------------
                                      ETHEL R. WELLS

                                      WERNER INVESTMENT CO.

                                      By: ______________________________________
                                      Name:
                                      Its:

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   36

                                      ------------------------------------------
                                      MOSHE WEISEL

                                      ROBERT WARNE WILSON AND RICHARD GILDER,
                                      AS TRUSTEES U/A/O 3/31/93 BETWEEN ROBERT
                                      WARNE WILSON, AS GRANTOR, AND ROBERT WARNE
                                      WILSON AND RICHARD GILDER, AS TRUSTEES

                                      By: ______________________________________
                                      Name: Robert W. Wilson, Trustee

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   37

                                      /s/ Gerald Segal
                                      -----------------------------------------
                                      GERALD SEGAL

<PAGE>   38

                                      THE GOLDMAN SACHS GROUP, INC.

                                      By: /s/ Illegible
                                          --------------------------------------
                                      Name:

                                      Its:

                                      STONE STREET FUND 2000, LLC

                                      By: /s/ Katherine L. Nissenbaum
                                          --------------------------------------
                                      Name: Katherine L. Nissenbaum
                                      Its: Vice President

       [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   39

                                      Christopher Butler
                                      ------------------------------------------
                                      (Print name of Holder)

                                      By: /s/ Christopher Butler
                                          --------------------------------------
                                      Name: Christopher Butler
                                      Title:

        [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   40

                                      Ed Boyajian
                                      ------------------------------------------
                                      (Print name of Holder)

                                      By: /s/ Ed Boyajian
                                          --------------------------------------
                                      Name: Ed Boyajian
                                      Title:

       [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   41

                                      Daniel Kossmann
                                      ------------------------------------------
                                      (Print name of Holder)

                                      By: /s/ Daniel Kossmann
                                          --------------------------------------
                                      Name: Daniel Kossmann
                                      Title:

       [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   42

                                      Massood Zarrabian
                                      ------------------------------------------
                                      (Print name of Holder)

                                      By: /s/ Massood Zarrabian
                                          --------------------------------------
                                      Name: Massood Zarrabian
                                      Title:

       [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   43

                                      Chet Barnard
                                      ------------------------------------------
                                      (Print name of Holder)

                                      By: /s/ Chester Barnard, Jr.
                                          --------------------------------------
                                      Name: Chester Barnard, Jr.
                                      Title:

       [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   44

                                      Paul Maguire
                                      ------------------------------------------
                                      (Print name of Holder)

                                      By: /s/ Paul R. Maguire
                                          --------------------------------------
                                      Name: Paul R. Maguire
                                      Title:

       [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   45

                                      Jeff Whitney
                                      ------------------------------------------
                                      (Print name of Holder)

                                      By: /s/ Jeff Whitney
                                          --------------------------------------
                                      Name: Jeff Whitney
                                      Title:

       [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   46

                                      Jim Keller
                                      ------------------------------------------
                                      (Print name of Holder)

                                      By: /s/ Jim Keller
                                          --------------------------------------
                                      Name: Jim Keller
                                      Title: SVP, Strategic Alliances

       [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   47

                                      Dale Kennedy
                                      ------------------------------------------
                                      (Print name of Holder)

                                      By: /s/ Dale Kennedy
                                          --------------------------------------
                                      Name: Dale Kennedy
                                      Title:

       [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   48

                                      ITOCHU Techno-Science Corporation
                                      ------------------------------------------
                                      (Print name of Holder)

                                      By: /s/ H. Satake
                                          --------------------------------------
                                      Name: H. Satake
                                      Title: President

       [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   49

                                      ITOCHU Technology, Inc.
                                      ------------------------------------------
                                      (Print name of Holder)

                                      By: /s/ Takahiro Susaki
                                          --------------------------------------
                                      Name: Takahiro Susaki
                                      Title: President

       [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   50

                                      ITOCHU Corporation
                                      ------------------------------------------
                                      (Print name of Holder)

                                      By: /s/ Eizo Kobayashi
                                          --------------------------------------
                                      Name: Eizo Kobayashi
                                      Title: Chief Operating Officer,
                                      Information Technology & Telecommunication
                                      Division

       [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   51

                                      Morgan Stanley Dean Witter Equity
                                      Funding, Inc.
                                      ------------------------------------------
                                      (Print name of Holder)

                                      By: /s/ David Powers
                                          --------------------------------------
                                      Name: David Powers
                                      Title: Vice President

       [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   52

                                      Alf Saggese
                                      ------------------------------------------
                                      (Print name of Holder)

                                      By: /s/ Alf Saggese
                                          --------------------------------------
                                      Name: Alf Saggese
                                      Title: MD Servicesoft EMEA

       [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   53

                                      The Reez Trust
                                      ------------------------------------------
                                      (Print name of Holder)

                                      By: /s/ Illegible
                                          --------------------------------------
                                      Name:
                                      Title:

       [SIGNATURE PAGE TO SEVENTH AMENDED REGISTRATION RIGHTS AGREEMENT]

<PAGE>   54
                                   Schedule 1

                           HOLDERS OF ELIGIBLE SHARES

<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------------------------------------
                     HOLDER                       EXCHANGEABLE       EXCHANGEABLE      SERIES H        SERIES I        SERIES J
                                                     COMMON            PREFERRED       PREFERRED       PREFERRED       PREFERRED
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>                <C>             <C>            <C>               <C>
Frederick R. Adler                                                                      528,426           30,488         103,211
c/o Jay Nickse
Venad Administrative Services, Inc.
342 Madison Avenue, #807
New York, NY 10173
Fax: 212-599-2526
------------------------------------------------------------------------------------------------------------------------------------
James R. Adler                                                                            2,496
------------------------------------------------------------------------------------------------------------------------------------
American Farm Investment Corporation                                    98,518
BCE Place, 161 Bay Street
49th Floor
Toronto, Ontario M5J 2S1
Attn: Gerry Schwartz
Fax: 416-362-5765
------------------------------------------------------------------------------------------------------------------------------------
Banque Edouard Constant
(formerly Banque Scandinave en
Suisse, Geneva)                                                                              69
------------------------------------------------------------------------------------------------------------------------------------
Richard M. Bogoroch                                  17,315                                                9,756           4,651
15 Caravan Drive
Don Mills, Ontario, M3B 1M9
Fax: 416-868-3134
------------------------------------------------------------------------------------------------------------------------------------
CIBC WMV Inc.                                                                                          1,219,512         350,831
161 Bay Street, 8th Floor
BCE Place
Toronto, Ontario M5J 2F8
Attn: Teddy Rosenberg
Fax: 416-594-8037
------------------------------------------------------------------------------------------------------------------------------------
Compagnie Financiere Codelis S.A.                                                           443
44, chemin Frank Thomas
1211 Geneva 29 Suisse,
Switzerland
Attn: Edgard Mizahi
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                        i

<PAGE>   55

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                     HOLDER                       EXCHANGEABLE       EXCHANGEABLE      SERIES H        SERIES I        SERIES J
                                                     COMMON            PREFERRED       PREFERRED       PREFERRED       PREFERRED
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>                <C>             <C>            <C>           <C>
Stephan I. D'Agostino                                                                       521
Drakesmith Lane
Rye, NY 10580
------------------------------------------------------------------------------------------------------------------------------------
DR Capital I L.P.                                                                           694
825 Third Avenue, 40th Floor
New York, NY 10022
Attn: Joseph Cohen
------------------------------------------------------------------------------------------------------------------------------------
DR Capital II L.P.                                                                        2,780
825 Third Avenue, 40th Floor
New York, NY 10022
Attn: Joseph Cohen
------------------------------------------------------------------------------------------------------------------------------------
EDN Equities                                                                                142
One State Street Plaza
New York, NY 10004
Attn: Aaron Wolfson
------------------------------------------------------------------------------------------------------------------------------------
Elron Electronic Industries Ltd.                                                        804,653
Ahuva Goren Advance Tech Center
P.O. Box 1573
Haifa 31015 Israel
Attn: Doron Birger
Fax: 972-4-855-0248
------------------------------------------------------------------------------------------------------------------------------------
Heinz Eppler                                                                              1,404
45 Rockefeller Plaza, Ste. 2500
New York, NY 10020
------------------------------------------------------------------------------------------------------------------------------------
K. Jane Fankhanel                                                                            21
666 Fifth Avenue
New York, NY 10103
------------------------------------------------------------------------------------------------------------------------------------
Raymond Fortune                                                                             209
18 Windingwood Lane
Acton, MA 01720
------------------------------------------------------------------------------------------------------------------------------------
Financial Technologies Ventures, L.P.                                                                     33,659         280,731
Financial Technologies Ventures (Q), L.P.                                                                941,951     (aggregate)
601 California Street, Suite 2200
San Francisco, CA 94108
Attn: Scott Wu
Fax: 415-229-3005
------------------------------------------------------------------------------------------------------------------------------------
Robert J. Gailus                                                                        163,048                           16,611
50 Riverside Drive #2B
New York, NY 10024
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       ii
<PAGE>   56

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                     HOLDER                       EXCHANGEABLE       EXCHANGEABLE      SERIES H        SERIES I        SERIES J
                                                     COMMON            PREFERRED       PREFERRED       PREFERRED       PREFERRED
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>                <C>             <C>             <C>             <C>
Geisco International S.A.                                                                   213
PO Box CH 8027
Zurich, Switzerland
Attn: Beat Brechbuhler
------------------------------------------------------------------------------------------------------------------------------------
Gemini Israel II L.P.                                                  226,820                           193,804         121,703
Advent PGGM Gemini L.P.                                                306,207*                           29,071          18,256
Gemini Israel II Parallel Fund L.P.                                     34,023*                          261,637         164,299
Gemini Partner Investors L.P.                                                                              3,293           2,165
c/o Gemini Capital Fund
Management Ltd.
11 Galgalei Haplada Street
P.O. Box 12548
Industrial Zone
Herzlyia 46733 Israel
Attn: Tali Aben
Fax: 011-972-9-958-8442
------------------------------------------------------------------------------------------------------------------------------------
Tony Graci, in trust                                                                                      24,390
c/o Graci & Associates
350 Bay Street, 9th Floor
Toronto, Ontario M5H 2SE
Fax: 416-367-4098
------------------------------------------------------------------------------------------------------------------------------------
Frances L. Greenberg Living Trust                                                           355
2100 South Ocean Blvd. Apt. 407
Palm Beach, FL 33480
------------------------------------------------------------------------------------------------------------------------------------
Michael Greenberg                                                                            87
920 Suffield Terrace
Northbrook, IL 60062
------------------------------------------------------------------------------------------------------------------------------------
Christopher H. Greendale                                                                 52,521
29 Radcliffe Road
Weston, MA 02193
------------------------------------------------------------------------------------------------------------------------------------
Grey Advertising Ltd.                                                  141,759                            20,889
1881 Yonge Street, 5th Floor
Toronto, Ontario M4S 3C4
Attn: Tony Russell
Fax: 416-488-7071
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

--------------------
*Represents options exerciseable for Exhchangeable Preferred Shares of Balisoft
Ltd. which are exchangeable for Exchangeable Preferred.

                                      iii
<PAGE>   57

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                     HOLDER                       EXCHANGEABLE       EXCHANGEABLE      SERIES H        SERIES I        SERIES J
                                                     COMMON            PREFERRED         PREFERRED       PREFERRED       PREFERRED
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>                <C>             <C>             <C>             <C>
Ho Sim Guan                                                                                  69
80 Raffles Place Unit 28-01UOB.
Singapore 0104
Attn: Calvin Ho Han Leong
------------------------------------------------------------------------------------------------------------------------------------
Yaacov Hannes                                                                                94
148 Aba Houshi Street
Haffa 34988 Israel
------------------------------------------------------------------------------------------------------------------------------------
Indra 4 L.P.                                                                              2,716
PO Box 948 Pleasant Plain Rd. RR2
Fairfield, IA 52556
Attn: David Johnson
------------------------------------------------------------------------------------------------------------------------------------
Intel Corporation                                                                       840,329
2200 Mission College Blvd.                                                               63,025**
#SC4-210
Santa Clara, CA 95052
Attn: Tamiko Hutchinson
Fax: 408-765-6038
------------------------------------------------------------------------------------------------------------------------------------
Internet Capital Group, Inc.                                                            630,247          92,868         208,084
45 Milk Street
Boston, MA 02109
Attn: Chris Greendale
Fax: 617-338-7117
------------------------------------------------------------------------------------------------------------------------------------
J.L. Albright II Venture Fund, L.P.                                     708,808                         104,445         147,287
Canada Trust Tower
BCE Place, Suite 440
161 Bay Street
Toronto, Ontario,
CANADA M5J 2S1
Attn: Gary Rubinoff
Fax: 416-943-6160
------------------------------------------------------------------------------------------------------------------------------------
Harvey C. and Barbara E. Jones                                                              878
2121 Waverley Street
Palo Alto, CA 94301
------------------------------------------------------------------------------------------------------------------------------------
George R. Kalan                                                                          12,238                           9,976
One Post Road
Fairfield, CT 06430
Fax: 203-259-5288
------------------------------------------------------------------------------------------------------------------------------------
Kane & Company                                                                            6,796
------------------------------------------------------------------------------------------------------------------------------------
Sanford Kaplan                                                                              878
10128 Empyrean Way #303
Los Angeles, CA 90067
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

---------------------
** Represents warrants to purchase Series H Preferred Stock.

                                       iv

<PAGE>   58

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                     HOLDER                       EXCHANGEABLE       EXCHANGEABLE      SERIES H        SERIES I        SERIES J
                                                     COMMON            PREFERRED       PREFERRED       PREFERRED       PREFERRED
------------------------------------------------------------------------------------------------------------------------------------
<S>                                               <C>                   <C>             <C>             <C>             <C>
Betty W. Keating                                                                            42
------------------------------------------------------------------------------------------------------------------------------------
Jean-Claude Landau, Trustee Under Declaration                                              841
Dated 12/1/83
589 Fifth Avenue, Ste. 1102
New York, NY 10017
Attn: Jean-Claude Landau
------------------------------------------------------------------------------------------------------------------------------------
Landmark Equity Partners II, L.P.                                                        8,781
760 Hopmeadow Street, PO Box 188
Simsbury, CT 06070-0188
Attn: James P. McConnell
------------------------------------------------------------------------------------------------------------------------------------
J. Stuart Lemle                                                                            660
c/o Land & Lemle
1775 Eye Street, N.W., Suite 950
Washington, DC 20006
------------------------------------------------------------------------------------------------------------------------------------
Elliot & Rhoda Levinthal Revocable Trust U/T                                               790
dated 10/9/80
59 Sutherland Drive
Atherton, CA 94025
Attn: Elliot & Rhoda Levinthal
------------------------------------------------------------------------------------------------------------------------------------
LRJ Technologies Inc.                             1,206,753***                          56,710
c/o Brightspark
20 Eglinton Avenue West
Suite 600
Toronto, Ontario M4R 1K8
CANADA
Attn: Mark Skapinker
Fax: 416-488-1988
------------------------------------------------------------------------------------------------------------------------------------
Lubar Nominees                                                                             878
700 North Water Street, Ste. 1200
Milwaukee, WI 53202
Attn: Sheldon Lubar
------------------------------------------------------------------------------------------------------------------------------------
The Trust Created Under the Will of Thomas                                               2,081
Cartter Lupton F/B/O John T. Lupton and Issue
------------------------------------------------------------------------------------------------------------------------------------
Clifford L. Michel, Esq.                                                                   878
------------------------------------------------------------------------------------------------------------------------------------
W. Jost Michelsen Revocable Trust                                                           53
135 Bow Street, Apt. 15
Portsmouth, NH 03801-3885
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

---------------------
***Exchanged into Common Stock of the Company.

                                       v
<PAGE>   59

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                     HOLDER                       EXCHANGEABLE       EXCHANGEABLE      SERIES H        SERIES I        SERIES J
                                                     COMMON            PREFERRED       PREFERRED       PREFERRED       PREFERRED
------------------------------------------------------------------------------------------------------------------------------------
<S>                                               <C>                   <C>             <C>             <C>             <C>
Alan B. Miller                                                                              105
57 Crosby Brown Road
Gladwyne, PA 19035
------------------------------------------------------------------------------------------------------------------------------------
Marshall G. Mintz                                                                            11
1900 Avenue of the Stars Ste. 1450
Los Angeles, CA 90067
------------------------------------------------------------------------------------------------------------------------------------
NetManage, Inc.                                                                         269,038
10725 N. De Anza Blvd.
Cupertino, CA 95014
Attn: Zvi Alon
Fax: 408-257-1101
------------------------------------------------------------------------------------------------------------------------------------
NorthEast Venture, Inc.                                                                   4,303
One State Street Suite 1720
Hartford, CT 06103-3195
Attn: Ed Cheney
------------------------------------------------------------------------------------------------------------------------------------
Orien II, L.P.                                                                          778,640
c/o Orien Ventures, Inc.
One Post Road
Fairfield, CT 06430
Fax: 203-259-5288
------------------------------------------------------------------------------------------------------------------------------------
Max Palevsky                                                                                878
924 Westwood Blvd. #700
Los Angeles, CA 90024
------------------------------------------------------------------------------------------------------------------------------------
Shiela H. Peeters                                                                            18
98-19 64th Avenue
Forest Hills, NY 11374
------------------------------------------------------------------------------------------------------------------------------------
Philips Venture Fund I, L.P.                                                             24,834
PO Box 673
Livingston, MT 59047
------------------------------------------------------------------------------------------------------------------------------------
Jean Renault                                                                                 14
------------------------------------------------------------------------------------------------------------------------------------
Peter J. Repetti                                                                          1,114
666 Fifth Avenue, 31st Floor
New York, NY 10103
------------------------------------------------------------------------------------------------------------------------------------
Les Ableson                                       97,319                                                                 16,833
PO Box 352
Kochav Yair
4486 Israel
------------------------------------------------------------------------------------------------------------------------------------
Samjank Inc.                                      97,319                                                                 16,833

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       vi

<PAGE>   60
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                     HOLDER                       EXCHANGEABLE       EXCHANGEABLE      SERIES H        SERIES I        SERIES J
                                                     COMMON            PREFERRED       PREFERRED       PREFERRED       PREFERRED
------------------------------------------------------------------------------------------------------------------------------------
<S>                                               <C>                   <C>             <C>             <C>             <C>
Gerald Segal                                                                                              2,439
c/o Robertson Stephens Evergreen Ltd.
96 Rothschild Blvd.
Tel-Aviv 65224 Israel
Fax: 011-972-3-710-8220
------------------------------------------------------------------------------------------------------------------------------------
Seymour Rothchild                                                                           878
19 Hilltop Road
Chestnut Hill, MA 02167
------------------------------------------------------------------------------------------------------------------------------------
Sigma Partners V, L.P.                                                                                                   385,271
Sigma Partners IV, L.P.                                                                 649,555          85,666
Sigma Associates IV, L.P.                                                               169,697          34,732
Sigma Investors IV, L.P.                                                                 21,078           3,427
2884 Sand Hill Road, Suite 121
Menlo Park, CA 94025
Attn: Marilyn Stallings
Fax: 650-854-1323
with a copy to:
20 Custom House Street, Suite 830
Boston, MA 02110
Attn: Bob Davoli
Fax: 617-330-7975
------------------------------------------------------------------------------------------------------------------------------------
Jodey Sills                                                                               2,165
11 Riverside Drive Apt. 12TE
New York, NY 10023
------------------------------------------------------------------------------------------------------------------------------------
Penny M. Sills                                                                            2,165
20 West Neck Road
Southampton, NY 11958-2229
------------------------------------------------------------------------------------------------------------------------------------
Harold Simon                                                                                440
El-Al Bldg. 10th Floor
Tel-Aviv 63805 Israel
------------------------------------------------------------------------------------------------------------------------------------
Roy B. Simpson, Jr.                                                                          31
163 Taconic Rd.
Greenwich, CT 06831
------------------------------------------------------------------------------------------------------------------------------------
Sofinov, Societe Financiere D'Innovation Inc.,                          708,808                          853,659         442,967
Filiale de la Caisse de Depot et Placements du
Quebec
1981 avenue, McGill College, 7th Floor
Montreal, Quebec H3A 3C7
Attn: Sophie Forest
Fax: 514-847-2628
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      vii

<PAGE>   61

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                     HOLDER                       EXCHANGEABLE       EXCHANGEABLE      SERIES H        SERIES I        SERIES J
                                                     COMMON            PREFERRED       PREFERRED       PREFERRED       PREFERRED
------------------------------------------------------------------------------------------------------------------------------------
<S>                                               <C>                   <C>             <C>             <C>             <C>
South Ferry #2, L.P.                                                                       142
One State Street Plaza
New York, NY 10004
Attn: Zev Wolfson
------------------------------------------------------------------------------------------------------------------------------------
Joel Stone                                                                                 439
630 Dundee Road Ste. 220
Northbrook, IL 60062
------------------------------------------------------------------------------------------------------------------------------------
The Swig Investment Company                                                                878
------------------------------------------------------------------------------------------------------------------------------------
Henry Taub                                                                                 878
11 DeVriese Court
Tenafly, NJ 07670
------------------------------------------------------------------------------------------------------------------------------------
THC Inc.                                                                                   204
520 West Eleven Mile Road
Royal Oak, MI 48067-2294
Attn: Phillip L. Elkus
------------------------------------------------------------------------------------------------------------------------------------
Glen A. Tobias                                                                             355
22 Hampton Road
Scarsdale, NY 10583
------------------------------------------------------------------------------------------------------------------------------------
Gideon Tolkowsky                                                                         6,585
511 Fifth Avenue
New York, NY 10017
------------------------------------------------------------------------------------------------------------------------------------
Ethel R. Wells                                                                           2,813
4085 Lago Drive
Santa Barbara, CA 93110
------------------------------------------------------------------------------------------------------------------------------------
Werner Investment Co.                                                                       70
PO Box 5831 TA
Denver, CO 80217
Attn: Hildegard Messenbaugh
------------------------------------------------------------------------------------------------------------------------------------
Moshe Wiesel                                                                               440
El-Al Bldg. 10th Floor
Tel-Aviv 63805 Israel
------------------------------------------------------------------------------------------------------------------------------------
Robert Warne Wilson and Richard Gilder as                                                1,041
Trustees U/A/O 3/31/93 between Robert Warne
Wilson, as Grantor, and Robert Warne Wilson and
Richard Gilder, as Trustees
520 83rd Street Suite 3R
Brooklyn, NY 11209
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      viii

<PAGE>   62
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                     HOLDER                       EXCHANGEABLE       EXCHANGEABLE      SERIES H        SERIES I        SERIES J
                                                     COMMON            PREFERRED       PREFERRED       PREFERRED       PREFERRED
------------------------------------------------------------------------------------------------------------------------------------
<S>                                               <C>                   <C>             <C>             <C>             <C>
Mark Skapinker                                                                                                            27,685
c/o Brightspark
20 Eglinton Avenue West
Suite 600
Toronto, Ontario M4R 1K8
CANADA
Fax: 416-488-1988
------------------------------------------------------------------------------------------------------------------------------------
Morgan Stanley                                                                                                           110,742
2 International Place
Boston, MA 02109
Attn: Charles Sansbury
Fax: 617-856-8017
------------------------------------------------------------------------------------------------------------------------------------
Mark D'Annolfo                                                                                                            11,074
95 Suffolk Road
Chestnut Hill, MA 02467
------------------------------------------------------------------------------------------------------------------------------------
The Goldman Sachs Group, Inc.                                                                                            664,452
Stone Street Fund 2000, LLC                                                                                              110,742
Goldman Sachs
85 Broad Street
New York, NY 10004
FAX: 212-357-5505
------------------------------------------------------------------------------------------------------------------------------------
Bob Gailus                                                                                                                16,661
50 Riverside Drive #2B
New York, NY 10024
------------------------------------------------------------------------------------------------------------------------------------
Washington Mall Partners                                                                                                   7,420
c/o John Egan
120 Fulton St., 3D
Boston, MA 02109
------------------------------------------------------------------------------------------------------------------------------------
ITOCHU Techno-Science Corporation                                                                                         44,297
ITOCHU Corporation                                                                                                        44,297
ITOCHU Technology, Inc.                                                                                                   22,148
3100 Patrick Henry Drive
Santa Clara, CA  95054
Attn: Takayuki Fukuhara
Fax: 408-727-4619
------------------------------------------------------------------------------------------------------------------------------------
Chris Butler                                                                                                              55,371
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473
------------------------------------------------------------------------------------------------------------------------------------
Ed Boyajian                                                                                                                 5,537
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       ix

<PAGE>   63

<TABLE>
<S>                                               <C>                   <C>             <C>             <C>               <C>
------------------------------------------------------------------------------------------------------------------------------------
Daniel Kossmann                                                                                                           16,611
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473
------------------------------------------------------------------------------------------------------------------------------------
Massood Zarrabian                                                                                                         22,148
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473
------------------------------------------------------------------------------------------------------------------------------------
Chet Barnard                                                                                                               2,769
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473
------------------------------------------------------------------------------------------------------------------------------------
Alf Saggese                                                                                                                9,967
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473
------------------------------------------------------------------------------------------------------------------------------------
Paul Maguire                                                                                                               5,537
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473
------------------------------------------------------------------------------------------------------------------------------------
Jeff Whitney                                                                                                               5,537
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       x

<PAGE>   64

<TABLE>
<S>                                               <C>                   <C>             <C>             <C>             <C>
------------------------------------------------------------------------------------------------------------------------------------
Jim Keller                                                                                                                  9,967
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473
------------------------------------------------------------------------------------------------------------------------------------
Dale Kennedy                                                                                                                5,537
c/o Servicesoft Technologies, Inc.
Two Apple Hill Drive
Natick, MA 01760
Fax: (508) 655-0473
------------------------------------------------------------------------------------------------------------------------------------
The Reez Trust                                                                                                              9,967
c/o Kaplan Talkins
2900 John Street
Suite 1A
Markham, Ontario L3R 5G3
CANADA
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        3,481,478

                     TOTAL
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       xi

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