Document:

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                                                                   EXHIBIT 10.12

                           SOFTWARE LICENSE AGREEMENT
                           --------------------------

     THIS SOFTWARE LICENSE AGREEMENT is made and entered into as of the 13th day
     of December 1999 ("Effective Date") by and between Motive Communications,
     Inc. ("Motive"), a Delaware corporation with its principle place of
     business at 9211 Waterford Centre Blvd, Austin, TX 78758 and Hewlett-
     Packard Company (HP), a Delaware corporation with its principle place of
     business at 3000 Hanover St., Palo Alto, CA 94304 on behalf of itself and
     its worldwide subsidiaries and affiliates ("HP").

1.   DEFINITIONS
     -----------
     1.1.  "Acceptance" of the Licensed Product(s) is defined by HP's acceptance
           as described in Section 4.

     1.2.  "Agreement" shall mean the terms and conditions contained herein, all
           exhibits and appendices attached hereto, and any other documents
           incorporated by reference, including any written amendments to the
           foregoing which have been signed by the authorized representatives of
           the parties.

     1.3.  "Customer(s)" shall mean any individual or corporation who has a
           computer from HP ("HP Product") or whom HP has a requirement to
           provide Technical Support (as defined below) to that individual or
           corporation for said HP Product.

     1.4.  "Documentation" means any software support materials, including
           user's manuals and any other materials in any form normally provided
           by the Motive to the users of the Licensed Product(s); at a minimum,
           it shall include sufficient information to enable HP to properly
           operate the Licensed Product(s) safely and efficiently.

     1.5.  "External Use" means use on a worldwide basis, by (a) HP, and (b) any
           employees, contractors, consultants, agents or distributors of HP for
           the purpose of delivering Technical Support (as defined below) to
           Customers.

     1.6.  "Licensed Product(s)" includes (a) any and all software to which HP
           obtains or is granted any rights under this Agreement; (b) any and
           all related Documentation; (c) New Releases; and (d) New Versions.

     1.7.  "New Release" (1.xx) means a newly marketed variation of the Licensed
           Product(s) or its components which exhibits expanded functionality,
           improved performance, or defect corrections when compared to the
           original Licensed Product(s).

     1.8.  "New Version" (X.00) means a newly marketed variation of the Licensed
           Product(s) or its components which exhibits significantly different
           functionality or different platform and system specifications when
           compared to the original Licensed Product(s).

     1.9.  "Object Code" means any machine executable code derived form Source
           Code.

     1.10. "Operating System" means the control program in a computer that
           provides the interface to the computer hardware and peripheral
           devices, and optionally may allocate memory resources, processor
           resources, input/output resources, and security resources.

     1.11. "Source Code" means all human readable code which documents Licensed
           Product(s), including all related compilers, utilities, listings,
           test suites, build scripts, libraries, design documentation, and
           technical documentation.

     1.12. "Specifications" means any and all information, which describes the
           capabilities and functionality of the Licensed Product(s) found in
           Motive user guides and product release notes.

     1.13. "Sustaining Use" means the ability to continue supporting existing HP
           Product units already shipped and supported using the Licensed
           Products at the time of [*] of particular Licensed Products under a
           particular schedule to this Agreement. Sustaining Use does not allow
           for the [*] of the Licensed Products on new HP Product shipments
           after such [*].

     1.14. "Technical Support" is the use of the Licensed Products to support
           HP's delivery of warranty services and basic or extended services for
           HP Products which include commercial and consumer [*]. Such Technical
           Support services may be provided by HP's employees, contractors,
           consultants, agents or distributors of HP who are delivering
           Technical Support to Customers on behalf of HP.

     1.15. "Warranty Period" is [*] following the date of initial delivery of
           each Licensed Product(s) model.

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

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2.   RIGHTS GRANTED
     ==============

     2.1. Motive hereby grants to HP an irrevocable (except as authorized in
          this Agreement), worldwide, nonexclusive, nontransferable (except
          within HP), royalty-free perpetual license (perpetual licenses will be
          noted as such) and right to use the Licensed Product(s) designated in
          the Appendix 1, Pricing Schedule(s) to this Agreement to provide
          Technical Support to Customers.

     2.2. Motive hereby grants to HP the right to reproduce a reasonable number
          of copies of all the Licensed Product(s) solely for backup and
          archival purposes, and/or the installation of an operational copy of
          the Licensed Product(s) on a dedicated disaster recovery machine at no
          additional charge. HP will use reasonable commercial efforts to
          maintain the copyright notice and any other notices that appear on any
          Licensed Product(s) on any copies and any media.

     2.3. HP may bundle with the HP Products or provide to its Customers access
          to the Licensed Products currently called "Motive Support Tuner" and
          "Motive Concentrator" that will run on an HP Product. HP further
          agrees that such access to these two programs (or any replacement or
          renamed program) will be solely for the purpose of providing Technical
          Support to its Customers through the use of Motive's server and
          support desktop Licensed Products. HP agrees that the distribution of
          these two programs to its Customers and use of the Licensed Products
          to provide Technical Support to Customers shall be done under the
          terms as set forth in HP's standard end user license agreement
          attached hereto and incorporated herein by reference. HP agrees that
          should the terms of its standard end user license agreement change,
          those provisions governing copyright, title, intellectual property
          right protections, and limitation of liability shall remain
          substantially the same as contained in the HP's standard end user
          license agreement attached hereto. HP shall be liable for any
          obligations or liabilities extended to their Customer(s) that are over
          and above those contained in the Agreement. HP will use reasonable
          commercial efforts to maintain the copyright notice and any other
          notices that appear on any Licensed Product(s) on any copies and any
          media.

     2.4. Except for the "Motive Support Tuner" and "Motive Concentrator", the
          Licensed Products may only be used by i) employees of HP, or ii)
          contractors/agents of HP who are under a written agreement with HP
          which will protect Motive's Licensed Products similar to the
          protections and restrictions under this Agreement and who are
          performing services solely in support of Customer Technical Support
          requirements. If HP subcontracts its Technical Support obligations of
          its products to a third party (contractor or agent) such third party
          will be authorized to use the Licensed Products provided that (1) the
          third party uses the Licensed Products solely on behalf of HP to
          support HP or fulfill HP's Technical Support obligation to Customers
          and no other customers of the third party; and (2) upon completion or
          termination of the subcontracting agreement between HP and the third
          party, all Motive's Licensed Products and Confidential Information be
          returned to HP.

     2.5. Motive retains all right, title, and interest in the Licensed
          Product(s) and Documentation including all patches, revisions and
          updates made by either party.

     2.6. Nothing in this Agreement shall preclude HP from independently
          developing, acquiring or marketing, for itself, or for others,
          software which may perform the same or display similar functions as
          the Licensed Product(s) or any of its components without use or
          disclosure of Motive's Confidential Information.

     2.7. HP shall not, reverse engineer, create Licensed Products which are
          primarily derived from the Licensed Products, decompile, or
          disassemble the Licensed Product(s) or any portion thereof, nor
          otherwise attempt to derive the Source Code.

     2.8. HP may customize the self-service and assisted service UI web browser
          pages of the Licensed Products provided that HP [*] in an appropriate
          manner as mutually agreed. No other modifications to the Licensed
          Products will be made without Motive's prior written consent.

3.   DELIVERY AND INSTALLATION
     -------------------------

     3.1. Motive shall deliver the Licensed Product(s) specified in the
          Appendices.

     3.2. Motive shall provide HP with all software, programs or materials
          necessary for the Licensed Product(s) to function as set forth in the
          Specifications and Documentation. Installation and implementation of
          the Licensed Product(s) shall be as set forth in the Appendix 1.

     3.3. The Licensed Product(s) will be provided to HP in a format, which
          allows the Licensed Product(s) to be installed on computer systems
          without the need to enter special security codes.

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

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     3.4. Motive shall promptly provide HP with any New Version or New Release
          of the Licensed Product(s) [*], so long as HP is [*] of [*].

4.   [*]

     4.1. With the advice and assistance of Motive's representatives, HP will
          operate the Licensed Product(s) to conduct [*] business days after
          initial delivery of each License Product model. Such [*] shall be
          conducted on one or more of HP's facilities on HP's equipment in order
          to determine whether the Licensed Product(s) materially performs
          according to Specifications in HP's operating environment.

     4.2. If for the above specified [*] business days, the Licensed Product(s)
          materially performs in accordance with the Specifications, HP shall
          sign the [*] certificate.

     4.3. If the Licensed Product(s) has not successfully completed the [*] HP
          shall promptly notify Motive in writing and shall specify with as much
          detail as possible in which respect a Licensed Product(s) has failed
          to pass the [*]. At HP's option, HP can either terminate this
          Agreement in whole or in part at that point (in which case section 4.4
          applies) or request Motive to make corrections and modifications in
          the Licensed Product(s). If HP elects the latter, Motive will cause
          the Licensed Product(s) to be ready for [*] no later than [*] business
          days from the date that HP first notified the Motive of the failure to
          pass the [*]. Motive shall notify HP when such corrections and
          modifications have been made, at which time HP can again perform [*]
          as provided in this section. If, in HP's [*], the Licensed Product(s)
          still [*] in accordance with the Specifications, HP shall promptly
          notify Motive in writing, and shall have the right, at HP's option, to
          terminate this Agreement in whole or in part by giving written notice
          to Motive. (in which case section 4.4 applies).

     4.4. Upon HP's termination of this Agreement after [*], HP shall promptly
          return the effected Licensed Product(s) and associated Documentation
          and materials to Motive at Motive's expense. HP shall have the right
          to [*] under this Agreement for the effected Licensed Product(s). In
          the case of a Licensed Product(s) which was licensed on a [*] basis,
          the parties will mutually agree to the equitable portion of [*]
          payment, attributable to the [*] Licensed Product, to be [*].

     4.5. In no event shall use of any product by HP for business, profit,
          revenue, or any other purpose during any phase of the [*], constitute
          [*] of any product by HP.

     4.6. Absent HP's written notice of [*] by the [*] business day from the
          initial delivery of each Licensed Product model, the Licensed
          Product(s)s will be deemed accepted by HP.

5.   FEES, INVOICES, AND PAYMENT TERMS
     ---------------------------------

     5.1. In consideration of the rights granted to HP hereunder for Licensed
          Product(s)s and upon the [*] by Motive hereunder, HP shall pay to
          Motive the amounts specified in the Appendices for each purchase made
          under this Agreement as specified in the appendices to this Agreement
          and within thirty-five days of HP's receipt of Motive's invoice.
          Motive shall invoice for Licensed Product(s) and services in
          accordance with the applicable Appendices.

     5.2. All fees referred to in this Agreement are in and shall be paid in
          U.S. Dollars and do not include any sales tax, use tax, or duties. All
          such taxes or duties shall be payable by HP except for any taxes based
          on Motive's income.

     5.3. Invoices shall be forwarded to HP's Financial Services Center at P.O.
          Box 2810, Colorado Springs, CO 80901-2810 All invoices shall provide
          sufficient detailed information for HP to identify products and
          services rendered and expenses incurred, if any. In the event of a
          dispute, HP shall pay all undisputed portions of an invoice.

6.   TERMINATION
     -----------

     6.1. Either party has the right to terminate this Agreement in whole or in
          part if the other party materially breaches any obligation hereunder
          and has failed to cure the breach within thirty (30) days written
          notice of the breach.

     6.2. Motive shall be deemed in material breach if (i) the Licensed
          Product(s) program exhibits defects causing serious disruption of use
          or repeated periods of downtime, notwithstanding Motive's remedial or
          maintenance efforts, if such disruption or downtime is frequent over
          any [*] month period or (ii) the Licensed Product(s) are not actively
          marketed, supported, or enhanced through out the term of the
          Agreement.

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

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<PAGE>

     6.3. HP may terminate this Agreement by written notice to Motive and may
          regard Motive as in material breach of this Agreement if Motive (1)
          becomes insolvent, (2) makes a general assignment for the benefit of
          creditors, (3) suffers or permits the appointment of a receiver for
          its business or assets, (4) becomes subject to any proceeding under
          any bankruptcy or insolvency law whether domestic or foreign, or (5)
          has wound up or liquidated, voluntarily or otherwise.

     6.4. In the event that either party is unable to perform any of its
          obligations under this Agreement or to enjoy any of its benefits
          because of (or if loss of the Licensed Product(s) is caused by)
          natural disaster, actions or decrees of governmental bodies or
          communications line failure that is (a) unavoidable and (b) not the
          fault of the affected party (hereinafter referred to as a "Force
          Majeure Event"), the party who has been so affected shall give written
          notice to the other party within thirty days and shall do everything
          possible to resume performance. Upon receipt of such notice, this
          Agreement shall immediately be suspended and any delivery date
          extended for a period equal to the duration of the Force Majeure
          Event; any warranty period affected by a Force Majeure Event shall
          likewise be extended for a period equal to the duration of such event.
          If the period of nonperformance exceeds [*] days from the receipt of
          notice of the Force Majeure Event, the party whose ability to perform
          has not been so affected may terminate this Agreement with written
          notice.

     6.5. In the event that this Agreement is terminated, each party shall
          return to the other all papers, materials, and other properties of the
          other party then in its possession. However, if HP terminates this
          Agreement or a pricing schedule issued under this Agreement, due to
          material breach by Motive, HP may, in its sole discretion, (1) have no
          obligation to return the Licensed Product(s) and Documentation that
          were licensed on a perpetual basis, provided HP has paid all
          outstanding license fees or (2) request and Motive shall be obliged to
          [*] amount of maintenance fees (in addition to any other remedies in
          law or equity available to HP). If the Licensed Products were licensed
          on a usage fee basis, HP may elect to continue using the Licensed
          Products on a Sustaining Use basis by paying the amount agreed to in a
          pricing schedule or return the Licensed Products and make [*] for the
          Licensed Products and Documentation.

     6.6. The obligations of the parties under sections entitled "Return of
          Properties," "Warranty," "Confidential Information," and
          "Indemnification" shall not expire upon termination of this Agreement
          or any license hereunder. If HP terminates this Agreement due to
          material breach by Motive than the obligation under the section
          entitled "Rights Granted" shall survive termination of this Agreement.
          Any remedy expressed herein is nonexclusive of any other remedies at
          law or in equity.

     6.7. Motive may terminate this Agreement in the case of a material breach
          of Sub Section 2.7 under the Section "Rights Granted" if HP has not
          cured the breach within [*] days of written notice. Upon such
          termination of this Agreement by Motive, the license and all other
          rights granted to HP shall cease, and HP shall immediately (i) return
          the Licensed Product(s), Documentation and all copies thereof to
          Motive or alternatively, provide written certification that all copies
          of the Licensed Product(s) and Documentation have been destroyed, (ii)
          purge all copies of the Licensed Product(s) or any portion thereof
          from all computers and from any computer storage device or medium on
          which HP has placed or has permitted others to place the Licensed
          Product(s). Termination is not an exclusive remedy and all other
          remedies will be available whether or not termination occurs.

7. WARRANTIES
   ----------

     7.1. Motive warrants and represents that the Licensed Product(s) shall
          operate in material conformance with the Specification throughout the
          Warranty Period.

     7.2. If during the Warranty Period HP gives Motive oral or written notice
          of non-conformity of the Licensed Product(s) with the Specification,
          Motive shall investigate such as soon as possible (but not later than
          [*] after receipt of such notice). Motive will then classify the
          problem with concurrence by HP, as either a problem preventing normal
          operations ("Category A"), or other problem ("Category B"). Motive
          will provide commercially reasonable efforts to correct all Category A
          problems within twenty-four hours of notice and Category B problems
          within [*] days.

     7.3. At any time during the Warranty Period, if HP has notified Motive of a
          failure of the Licensed Product(s) to materially meet the
          Specification and Motive has not fixed the non-conformity within [*];
          Motive will at its option either i) replace the non-conforming
          Licensed Product(s) with a compatible functionally equivalent
          conforming product, or ii) refund all license fees paid to Motive for
          the non-conforming Licensed Product(s) pursuant to this Agreement,
          provided that HP immediately returns the Licensed Product(s) to
          Motive. In the case of a Licensed Product(s) which was licensed on a
          [*] basis, the parties will mutually agree to the equitable portion of
          [*] payment, attributable to the unaccepted Licensed Product, to be
          reimbursed.

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

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<PAGE>

     7.4.  Motive warrants that the Licensed Product(s) shall be compatible with
           the Operating System, application programs, computing equipment, and
           networks contemplated by the Documentation.

     7.5.  Motive warrants and represents that all software, hardware and
           firmware (collectively "Product(s)(s)") furnished under this
           Agreement are "Year 2000 Compliant." Year 2000 Compliant Product(s)s
           will perform without error, loss of data or loss of functionality
           arising from any failure to process, calculate, compare or sequence
           data accurately. In addition, Year 2000 Compliant Product(s)s will
           not cause any associated products or systems in which they may be
           used to fail in any of the ways described herein. This Year 2000
           Compliance warranty shall remain in effect through December 31, 2000,
           notwithstanding any other warranty period specified in this
           Agreement.

     7.6.  Illicit Code: Motive strictly warrants that no program that Motive
           provides to HP will: (1) contain hidden files; (2) have any "time
           bomb"; (3) replicate, transmit, or activate itself without control of
           a person operating computing equipment on which it resides; (4)
           alter, damage, or erase any data or computer programs without control
           of a person operating the computing equipment on which it resides; or
           (5) contain any key, node lock, time-out or other function [whether
           implemented by electronic, mechanical or other means] which restricts
           or may restrict use or access to programs or data based on residency
           on a specific hardware configuration, frequency or duration of use,
           or other limiting criteria. If this warranty is breached,
           notwithstanding anything elsewhere in this Agreement to the contrary,
           Motive shall be in material breach of this Agreement.

     7.7.  Motive warrants that it has, as of the date of delivery and
           perpetually thereafter, free and clear title, and all proprietary
           rights to, the Licensed Product(s) and any related product that will
           be used in connection with the Licensed Product(s). Motive warrants
           that it has the rights to possess, use, sell, license, transfer,
           lease, and assign any and all products that are sold, leased, rented,
           licensed, or otherwise provided to HP by Motive.

     7.8.  Motive warrants that HP's use of any Licensed Product(s) or other
           product provided in connection with this Agreement will not infringe
           any patent, trademark, copyright, or other proprietary right of any
           third party. Motive further warrants any information disclosed to HP
           will not contain any trade secrets of any third party, unless
           disclosure is permitted by such third party.

     7.9.  Motive warrants that the Licensed Product(s), the license to HP by
           this Agreement, and the performance by Motive of the services, shall
           be in compliance with all applicable laws, rules and regulations.

     7.10. Motive warrants that it is financially capable of fulfilling all
           requirements of this Agreement, that there are no legal proceedings
           against Motive or any related entity that could threaten performance
           of this Agreement, and that Motive is not prohibited by any supplier
           loan, contract, financing arrangement, etc. from entering into this
           Agreement.

     7.11. Motive warrants that it is a validly organized entity, with the legal
           capacity and power to enter into this Agreement.

     7.12. Motive warrants there are no actions, suits, or proceedings, pending
           or threatened, which will have a material adverse effect on Motive's
           ability to fulfill its obligations under this Agreement. Motive
           further warrants it will immediately notify HP if, during the term of
           this Agreement, Motive becomes aware of any action, suit or
           proceeding, pending or threatened, which will have a material adverse
           effect of Motive's ability to fulfill the obligations under this
           Agreement.

     7.13. EXCEPT FOR THE EXPRESS LIMITED WARRANTIES SET FORTH ABOVE, LICENSOR
           HEREBY DISCLAIMS AND HP EXPRESSLY WAIVES ANY AND ALL OTHER EXPRESS
           WARRANTIES OR REPRESENTATIONS OF ANY KIND OR NATURE, AND ANY AND ALL
           IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED
           WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

8.   CONFIDENTIAL INFORMATION
     ------------------------

     8.1.  To the extent that confidential information is involved, it is agreed
           that the party disclosing such information ("Discloser") shall
           clearly identify such information as confidential when furnishing it
           to the other party ("Recipient"). In the case of information
           transmitted in writing, such identification will be made by marking
           such information clearly as confidential or proprietary; and in the
           case of information transmitted orally, the Discloser shall provide,
           within thirty days after the disclosure, a written communication
           clearly identifying such confidential information as it has provided.
           Any information properly designated in accordance with this paragraph
           is defined

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          as "Confidential Information," for purposes of this Agreement.
          However, any information disclosed to Motive over HP's internal
          electronic Assets/Systems including but not limited to voice mail,
          electronic mail or HP's UNIX system(s) shall automatically be deemed
          to be HP's confidential and proprietary information whether or not
          marked. Information gathered from HP's internal electronic
          Assets/Systems by Motive, in electronic form or otherwise, which
          identifies and analyzes the performance, problems, and support issues
          solely and directly relating to the Licensed Product(s) is not
          considered HP's Confidential Information. Motive's Documentation and
          any information regarding the, architecture, protocols, structure, or
          sequence of the Licensed Product(s) will be considered Motive's
          confidential and proprietary information.

     8.2. Access to Assets/Systems, if any, is granted solely to facilitate the
          business relationship described in this Agreement, and is limited to
          those specific Assets/Systems, time periods, and personnel designated
          by Motive as are separately agreed to by HP and Motive from time to
          time. Access is subject to business control and information protection
          policies, standards, and guidelines as may be provided by HP. Use of
          any other Assets/Systems is expressly prohibited. This prohibition
          applies even when an Asset/System which Motive is authorized to access
          serves as a gateway to other Assets/Systems outside the scope of
          Motive's authorization. Use of Assets/Systems during other time
          periods or by individuals not authorized by HP is expressly
          prohibited. Without limiting the foregoing, Motive warrants that it
          has adequate security measures in place to comply with HP information
          Assets/Systems. Upon reasonable notice, HP may audit Motive to verify
          Motive's compliance with these obligations.

     8.3. Recipient shall keep all Confidential Information in confidence. A
          Recipient of Confidential Information shall protect such information
          by using at least the same degree of care, but no less than a
          reasonable degree of care, as Recipient uses to protect its own
          information of a similar nature which it does not desire to have
          disseminated or published.

     8.4. Notwithstanding other statements in this Agreement to the contrary,
          Motive acknowledges that in performing under this Agreement, both
          Motive and its employees may be exposed to extremely sensitive
          Confidential Information stored at HP or on HP's internal servers and
          databases, for which there is no adequate remedy at law in the case of
          disclosure or threatened disclosure. Such exposure could potentially
          be gained through physical presence of Motive's representatives at HP
          Sites or through electronic access by Motive or its representatives
          with HP's computing systems. As to such information, Motive shall be
          liable for any [*] actually suffered by HP, notwithstanding any limit
          of liability limitation in this Agreement. Motive shall not be
          strictly liable for the acts of its employees, excepting the instances
          where the acts in question constitute deliberate misconduct or gross
          negligence on the part of Motive, or were enabled by gross negligence
          on the part of Motive in failing to take reasonable measures or at
          least the same measures Motive uses for similar information, to
          protect the security of HP's confidential information.

     8.5. A Recipient shall restrict access to Confidential Information to those
          of its employees having a need to know. A Recipient's obligations of
          confidentiality shall continue five years from date of disclosure and
          survive the termination of this Agreement.

     8.6. Confidential Information does not include information that:

          .    was in the Recipient's possession before receipt from the
               Discloser;

          .    is or becomes a matter of public knowledge through no fault of
               Recipient;

          .    is rightfully received by Recipient from a third party without a
               duty of confidentiality;

          .    is disclosed by the Discloser to a third party without a duty of
               confidentiality on the third party;

          .    is independently developed by Recipient;

          .    is disclosed under operation of law;

          .    is disclosed by Recipient with Discloser's prior written
               approval; or

          .    is Object Code.

     8.7. Motive is responsible for and warrants and represents that each
          employee, agent or subcontractor who performs work under this
          Agreement has been informed of the obligations contained herein and
          had agreed to be bound by them. It is also the responsibility of
          Motive to track any necessary form to prove they have in fact informed
          their employees, agents or subcontractors of the obligations stated in
          this Agreement.

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

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<PAGE>

9.   PUBLICITY
     ---------

     9.1.  Neither party shall use the name(s), trademark(s) or tradename(s),
           whether registered or not, of the other party in publicity releases
           or advertising or in any other manner, including customer lists,
           without securing the prior written approval of the other party.

     9.2.  Each party agrees not to publicize or disclose either the terms of
           this Agreement or the fact of its agreement and execution. In
           particular, no press releases shall be made without the mutual
           consent of Motive and HP.

10.  INDEMNIFICATION
     ---------------

     10.1. Motive shall defend all suits or proceedings brought against HP
           arising from claimed infringement of any third party intellectual
           property right by Licensed Product(s) or any other product(s)
           provided to HP by Motive. Motive shall indemnify HP against all
           costs, fees and damages in any such suit or proceeding. HP shall
           promptly notify Motive in writing and provide information and
           assistance, at Motive's expense, for such defense.

     10.2. In the event that use of the Licensed Product(s) by HP is enjoined,
           Motive shall at its option; (i) replace the Licensed Product(s),
           without additional charge, by a compatible, functionally equivalent
           and non-infringing product; (ii) modify the Licensed Product(s) to
           avoid the infringement, provided such modification(s) do not
           significantly change the functionality of the Licensed Product(s);
           (iii) obtain a license for HP to continue use of the Licensed
           Product(s) for the term of this Agreement and pay for any additional
           fee required for such license; or, (iv) if none of the foregoing
           alternatives is possible even after the Motive's reasonable
           commercial efforts, the Motive shall return to HP all fees paid for
           the Licensed Product(s).

     10.3. Motive shall be relieved of its obligations under this section to the
           extent that a court of law finds that infringement arises solely and
           directly out of compliance with HP's written specifications.

11.  LIMITATION OF LIABILITY
     -----------------------

     11.1. EXCEPT AS SET FORTH ELSEWHERE IN THIS AGREEMENT, IN NO EVENT SHALL
           EITHER PARTY BE LIABLE TO THE OTHER FOR ANY SPECIAL, INDIRECT,
           INCIDENTAL OR CONSEQUENTIAL DAMAGES IN ANY WAY ARISING OUT OF OR
           RELATING TO THIS AGREEMENT EVEN IF THE POSSIBILITY OF SUCH DAMAGES
           HAS BEEN COMMUNICATED TO THE OTHER PARTY. EXCEPT WITH RESPECT TO
           LICENSOR'S LIABILITY UNDER SECTIONS OF WARRANTIES, INDEMNIFICATION
           AND CONFIDENTIAL INFORMATION HEREOF, IN NO EVENT SHALL EITHER PARTY
           BE LIABLE TO THE OTHER FOR DAMAGES FOR ANY CAUSE WHATSOEVER IN AN
           AMOUNT IN EXCESS OF THE [*] UNDER THIS AGREEMENT.

12.  MAINTENANCE AND SUPPORT
     -----------------------

     12.1. This Agreement and the license provided under it are not conditioned
           upon HP's entry into a maintenance or support relationship with
           Motive or any other entity. HP shall be free to seek, obtain or
           provide maintenance and support as it sees fit.

     12.2. Notwithstanding the foregoing, Motive shall, at HP's election,
           provide support and maintenance services as described in this
           Section.

     12.3. During the period for which the HP has subscribed to and paid for
           contracted annual maintenance and support for the Licensed
           Product(s), Motive will provide the following maintenance support of
           the current version of Licensed Product(s) (Motive will also support
           the [*] of the Licensed Product(s) for a period of [*] months. In the
           event HP acquires additional licenses beyond its initial acquisition,
           maintenance fees for such licenses shall be pro-rated to be co-
           terminus with HP's existing maintenance period.

     12.4. Motive's Standard Maintenance and Support Plan shall include (i) New
           Releases, New Versions, internationalized or localization versions,
           and successor products which replace a Licensed Product then
           currently under maintenance - to supply improvements, extensions and
           other changes to the Licensed Product(s) which Motive, at its
           discretion, deems to be logical improvements or extensions; (ii) Code
           Corrections - To supply code corrections to correct material
           deviations of unmodified Licensed Product(s) from the Specifications;
           (iii) unlimited support requests through [*] (unless otherwise state
           in a pricing schedule) HP designated individuals using the Motive
           support system technology; iv) Classic Hotline Support - To provide
           support service via telephone, FAX and E-Mail, [*] requests for
           mission critical production related situations and up to [*] requests
           annually for all non-critical classic support requests; and (v)
           Fixes - to supply workarounds for problems where known, answer
           questions and provide patches where they exist. Support requests will
           be made during Motive's

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Confidential                        Page 7                              (121099)
<PAGE>

            normal principal period of service ("PPS") during the hours of [*],
            CST, Mon. - Fri., except Motive holidays. If on-site assistance is
            required and the problem is the failure of the Licensed Product(s)
            to materially perform to Specifications, no charge will be made. If
            the problem is due to other causes, Motive's then-current
            professional services rates for such services will be applicable and
            payable by HP.

     12.5.  Motive [*] Extended Maintenance and Support Plan. The premium
            support plan provides all services in the standard plan described
            above in this Section on a [*] hours a day, [*] days a week
            schedule.

     12.6.  Renewal; Charges for Subsequent Years. Unless stated otherwise in a
            pricing schedule, for each subsequent year after the first year
            maintenance term, Motive's obligation to provide maintenance and
            support services as described above will continue and HP's
            obligation to pay Motive the mutually agreed to maintenance and
            support charges shall be automatically renewed on either (i) the
            anniversary date of the first Licensed Product(s) delivery hereunder
            or (ii) the coterminous HP annual renewal date (annual billing date)
            for all such maintenance and support services unless HP has given
            Motive prior written notice as defined below canceling Motive's
            maintenance and support. Unless stated otherwise in a pricing
            schedule, HP will be invoiced for annual maintenance for subsequent
            years [*] days prior to the expiration of the annual maintenance
            period.

     12.7.  Cancellation. HP may cancel its subscription in the maintenance and
            support plan(s) effective as of the next anniversary or coterminous
            annual renewal date by written notice to Motive received prior to
            the annual renewal date, or if there is an increase in annual
            maintenance and support charges over the preceding year by giving
            Motive written notice of cancellation within thirty (30) days of
            receipt of Motive's invoice or price quotation notice showing such
            increase.

     12.8.  If Motive materially breaches its maintenance and support services
            obligations, HP may terminate such services at any time by giving
            [*] days prior written notice to Motive and HP shall be entitled to
            a [*] of [*] to Motive for any unused portion of maintenance and
            support services, in whole or in part, for the affected Licensed
            Product(s).

     12.9.  Reinstatement. HP may reinstate maintenance at a later time by
            paying the the mutually agreed to maintenance and support charges
            plus a fee equal to the then current maintenance and support fees
            for the Licensed Product(s) times the number of annual periods the
            subscription was interrupted or [*] of the license fee for the
            Licensed Product(s) at the time the license was purchased, whichever
            is less.

     12.10. Scope of Coverage. Motive's maintenance support policy requires that
            (i) the same level of services shall apply to all Licensed
            Product(s) at the installation site, (ii) HP shall bring or keep all
            Licensed Product(s) it has acquired at an installation under current
            contracted maintenance in order to receive the maintenance update
            services defined in the maintenance program. The automated reporting
            routines contained in the Licensed Product(s) which identifies and
            analyzes the use and performance of the Licensed Product(s)
            including problems and issues that arise in connection therewith
            will be used by Motive to provide support services, and improve,
            enhance the performance of the Licensed Product(s)s offered by
            Motive

     12.11. Limitations on Motive's Obligations. HP understands and agrees that
            Motive may develop and market new or different computer programs or
            features which use part of the Licensed Product(s) and which perform
            part of the functions performed by the Licensed Product(s). Nothing
            contained in this Agreement gives HP any rights with respect to such
            products.

     12.12. Exclusions. Motive shall have no obligation to correct any error
            resulting from: (i) altered Licensed Product(s) or any portion of a
            Licensed Product(s) incorporated with or into another software to
            the extent the error is the sole result of such alteration, or
            incorporation; (ii) use of a Licensed Product(s) that is not the
            then current release or immediately Previous Sequential Release; or
            (iii) Licensed Product(s) problems caused by HP's negligence, abuse
            or misapplication, or use of Licensed Product(s) other than as
            specified in Motive's user manual.

13.  PROFESSIONAL SERVICES
     ---------------------

     13.1   If ordered by HP, the following terms and conditions set forth in
            this Section 13 "Professional Services" shall only apply to
            technical implementation support services supplied by Motive to HP.
            HP may purchase technical implementation support services
            ("Professional Services") from Motive in the form of service package
            offerings or on a time and material basis.

     13.2   Scope of Professional Services. Motive will perform the Professional
            Services documented in HP's purchase order or pricing schedule,
            which has been accepted by an official of Motive in writing. The
            parties acknowledge that the scope of Professional Services provided
            hereunder consist solely of (i) Licensed Product(s) installation,
            deployment assistance, interface adapter efforts, and/or non-formal
            software training. Motive may also offer

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Confidential                        Page 8                              (121099)
<PAGE>

            select service package offerings under its then current price list
            to perform certain Professional Services on a fixed price basis. The
            contents and deliverables of these packages shall be defined in the
            then current price list or the applicable specifications.
            Professional Services provided to HP by Motive shall not constitute
            works for hire.

     13.3   Term of Professional Services. The "Term of Professional Services"
            performed on a time and material basis will begin and terminate on
            the dates or times defined in HP's purchase order or pricing
            schedule which has been accepted by an official of Motive in
            writing, unless earlier terminated in accordance with this
            Agreement.

     13.4   Fees and Expenses. Fees for Professional Services are defined in
            Motive's quotation or, where no quotation is provided, fees shall be
            as stated in Motive's current, price list applicable to the
            territory for such Professional Services. Fees and charges are due
            net [*] days after date of invoice by Motive. Invoices may be
            published on a monthly basis or at the completion of Professional
            Services. Professional Services fees [*] reasonable expenses for
            travel, food and lodging, directly related to the performance of
            Professional Services. Expenses for travel, food and lodging,
            directly related to the performance of Professional Services must be
            supported by receipts prior to payment by HP.

     13.5   Termination or delay of Professional Services. HP agrees that
            Professional Services may be terminated by either party at any time
            for any reason, with or without cause, by giving [*] days prior
            written notice to the other party; termination shall be effective
            [*] days after the other party's receipt of such notice. If HP
            delays the scheduled start of contracted Professional Services, HP
            shall reimburse Motive for any reasonable and actual costs incurred
            due to such delay. If HP terminates Professional Services before the
            end of the Term of Professional Services engagement, HP shall pay
            Motive for Professional Services completed prior to the effective
            termination date and reasonable and actual costs incurred by Motive
            as a result of such termination.

     13.6   Motive Proprietary Information. All Motive's Proprietary Information
            and all right, title and interest, including without limitation, all
            patents, copyrights, and trade secret rights any where in the world,
            and all other intellectual property and rights in connection
            therewith shall be the sole property of and remain with Motive or
            its licensors, as applicable. Motive Proprietary Information
            includes, but is not limited to, Licensed Product(s) and related
            documentation and any modifications thereto developed in whole or in
            part by Professional Services. Proprietary Information will not
            include [*] which does not include any components of the Licensed
            Products. Except for the license use rights otherwise expressly
            provided in this Agreement, no right, title or interest in Motive's
            Licensed Product(s) is granted hereunder.

     13.7   Independent Contractors. Motive is an independent contractor and is
            solely responsible for all taxes, withholdings, and other similar
            statutory obligations including, but not limited to Worker's
            Compensation Insurance. Nothing herein shall form or be construed to
            form a joint venture or partnership.

     13.8   Performance Standards. Motive's performance of Professional Services
            under this Agreement will be conducted with standards of practice
            common in the industry for such services. Motive will comply with
            all applicable laws and HP safety rules in the course of performing
            Professional Services.

     13.9   Consent to Subcontract. Motive shall not subcontract any of the
            services to be performed under this Agreement without the prior
            written consent of HP, which such consent shall not be unreasonably
            withheld. If, HP consents to the use of any subcontractor, such
            subcontractor shall be bound to the terms and conditions of this
            Agreement as agents of Consultant.

14.  ActiveLink Subscription Service

     14.1   Motive has established an ActiveLink Premium Subscription Service
            ("ActiveLink") which is an annual subscription service that provides
            access to a Motive web site that hosts automated software files
            designed to diagnose and/or resolve Technical Support problems. The
            ActiveLink web site contains Licensed Product files which are text
            files or fragments which have been activated by Motive to produce an
            executable program which is designed to diagnose and potentially
            repair technical problems being experienced by an end user. If
            Licensee is then currently covered under a Motive maintenance plan,
            Motive will provide access to an introductory basic ActiveLink
            service for [*] charge. Access to Motive's ActiveLink Premium
            service is provided on an annual subscription basis.

     14.2   ActiveLink Service Use Rights. Upon receipt of an order for
            maintenance or Motive's ActiveLink Premium Subscription service,
            Motive will grant HP an individual, non-sublicensable, non-exclusive
            and non-transferable right to download and use the ActiveLink
            contents (herein after called "Support Component") to diagnose
            and/or repair a Customer's Technical Support problems. Except as
            expressly authorized by Motive, HP will not use the Support
            Component for timesharing or service bureau purposes or otherwise
            for the benefit of a third party (other than

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Confidential                        Page 9                              (121099)
<PAGE>

            Customers) or remove any Support Component proprietary notices or
            labels. HP will not provide its Customers or any other third party
            access to the ActiveLink Website. HP acknowledges that Motive and
            its licensors retain ownership of all Support Component including
            translations, compilations, and derivative products, any portions or
            copies thereof, and all rights therein. HP agrees only to use the
            Support Component diagnostic / repair routines through and in
            conjunction with licensed Motive server and desktop Licensed
            Products. Motive will monitor usage statistics to verify performance
            of Support Component.

     14.3   Cancellation. If HP chooses not to renew its ActiveLink Subscription
            or upon termination of this Section for breach, HP will; (i) [*] the
            ActiveLink web site, (ii) [*] any Support Component; and (iii) [*]
            Support Component and any derivative products made in connection
            with the Support Component.

15.  ACCESS TO SOURCE CODE
     ---------------------

     15.1.  If HP's [*] with Motive by the end of [*], Motive agrees to enter
            into an agreement and deposit the Source Code for the Licensed
            Product(s) and related materials with an escrow service provider of
            Motive's choice. Thereafter, at HP's request and expense, Motive
            agrees to either (i) include HP as a beneficiary to such escrow
            agreement or (ii) deposit with Data Securities International, Inc.
            (hereinafter "DSI"), executing HP's agreement with DSI, a copy of
            the Source Code for the Licensed Product and related materials.

     15.2.  Failure of Motive to enter into and comply with the provisions of
            this Section shall constitute a material breach of this Agreement.

     15.3.  If Source Code is properly released under the Escrow Agreement, HP
            shall be entitled to a [*] to Motive for any unused portion of [*]
            services, in whole or in part, for the affected Licensed Product(s).

16.  MISCELLANEOUS PROVISIONS
     ------------------------

     16.1.  Notice: Unless otherwise stated, all notices, request or other
            ------
            communications shall be in writing and shall be deemed to have been
            given if delivered personally or mailed, by certified or registered
            mail, postage prepaid, return receipt requested, to the parties at
            their respective addresses set forth below. All notices, request or
            communications shall be deemed effective upon personal delivery, or
            three days following deposit in the mail, or courier delivery
            service (such as Federal Express). However, no action adverse to the
            other party may be taken unless the party taking action ascertains
            by any reasonable method that notice has been received. All notices
            shall be addressed to the parties as stated below:

            If to Motive:                       If to HP:

            Business Operations                 Technology Manager CCSD
            9211 Waterford Centre Blvd.         8000 Foothills Blvd., MS5749
            Austin, Tx  78758                   Roseville, CA  95747

     16.2.  Governing Law: This Agreement is made under and shall be construed
            -------------
            in accordance with the law of California, without reference to
            conflict of laws principals, and venue and jurisdiction shall lie in
            Santa Clara County, California.

     16.3.  Headings: The captions of sections of this Agreement are for
            --------
            reference only; they are not to be used in construing this
            agreement.

     16.4.  No Assignment: Neither party may assign or transfer any of the
            -------------
            rights or responsibilities set forth herein without the express
            written consent of the other party and any attempt to do so shall be
            void or by mutual agreement the parties may agree to terminate this
            Agreement. Motive recognizes that if either of HP's [*] acquires
            Motive, HP may elect to [*]. In case of such a [*], HP must elect to
            discontinue using and return the Licensed Products or elect a
            Sustaining Use by paying the Sustaining Use Fee agreed to in a
            pricing schedule. If under in the case of an acquisition described
            in this Paragraph, HP may elect to discontinue using and return the
            Licensed Products and make [*] for the Licensed Products and
            Documentation.

     16.5.  Waiver: Neither party's failure to exercise any of its rights
            ------
            hereunder shall constitute or be deemed a waiver or forfeiture of
            any such rights.

     16.6.  Entire Agreement: This document (including any referenced
            ----------------
            attachments) represents the entire agreement between the parties as
            to the matters set forth and integrates all prior discussions,
            representations, understandings, and agreements between them.

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Confidential                        Page 10                             (121099)
<PAGE>

     16.7.  Modifications: This Agreement may only be modified in writing
            -------------
            signed by an authorized representative of both Motive and HP.

     16.8.  Assignment: This Agreement shall be binding on, and inure to the
            ----------
            benefit of, the parties hereto and their respective heirs, legal
            representatives, successors and assigns except as outlined in
            Paragraph 16.4, "No Assignment".

     16.9.  Invalidity: Any invalidity, in whole or in part, of any provision of
            ----------
            this Agreement shall not affect the validity of any other of its
            provisions.

     16.10. No Relationship: The parties do not intend that any agency,
            ---------------
            partnership, or employment relationship is created between them by
            this Agreement.

     16.11. Export Control: Licensed Product(s)s and related Documentation
            --------------
            provided under this Agreement may be subject to United States export
            laws and regulations. HP and Motive will comply with all such laws
            and regulations.

     16.12. Pre-Printed Terms: Any terms and conditions contained on a HP
            -----------------
            Purchase Order or similar documents shall be null and void.

     16.13. Final Expression: The terms of this Agreement (including the
            ----------------
            referenced attachments) are intended by the parties as a final
            expression of their Agreement with respect to such terms as are
            included in this Agreement and may not be contradicted by evidence
            of any prior or contemporaneous agreement. The parties further
            intend that this Agreement constitutes the complete and exclusive
            statement of its terms, interpreted in accordance with common
            American usage of the English language, and no extrinsic evidence
            whatsoever may be introduced in any proceeding, if any, involving
            this Agreement.

     IN WITNESS WHEREOF, the parties to the above referenced Software License
     Agreement have caused this instrument to be executed by their duly
     authorized representatives.

     HEWLETT-PACKARD COMPANY                  MOTIVE COMMUNICATIONS, INC.

     Signature:    /s/ Bruno Pillet           Signature:   /s/ Scott Harmon
                  ----------------------                  ------------------
     Name:         Bruno Pillet               Name:        Scott Harmon
                  ----------------------                  ------------------
     Title:        General Manager CCSD       Title:       President & CEO
                  ----------------------                  ------------------
     Date:         12/13/99                   Date:        December 13, 1999
                  ----------------------                  ------------------

     HEWLETT-PACKARD COMPANY

     Signature:    /s/ Tom Ashburn
                  ----------------------
     Name:         Tom Ashburn
                  ----------------------
     Title:        HPVP & GMCSSG
                  ----------------------
     Date:         12-13-99
                  ----------------------

Confidential                        Page 11                             (121099)
<PAGE>

                                   APPENDIX 1

                                HEWLETT PACKARD

                             PRICING SCHEDULE NO. 1

                               DECEMBER 13, 1999

     This Pricing Schedule No. 1 ("Schedule") documents the pricing terms for
software and services being licensed by Hewlett-Packard under the terms and
conditions of the Software License Agreement dated December 13, 1999, Contract #
MAS990003 ("Agreement"), between Motive Communications, Inc. ("Motive") and
Hewlett-Packard Company  ("HP"). If there are any inconsistencies or conflicts
between the provisions in the Software License Agreement and this Schedule, the
provisions of this Schedule shall govern and prevail.

     The purpose of this Schedule is to establish the pricing and additional
terms under which HP may deploy and use Licensed Products to provide Technical
Support of [*] which are sold to [*].  The term of this Schedule is the [*]
period beginning [*] plus any extensions pursuant to Section 3.0 ("Term").

1.0  [*] PRICING TERMS

     1.1   [*] Usage Terms:

     During the Term, for [*] defined in Paragraph 1.5, HP may use an [*] number
     of the Licensed Products listed below for the sole purpose of providing
     Technical Support to [*]. Licensed Products provided under Section 1.0
     shall not be used to support any [*] unless HP exercises the option for [*]
     as outlined in Section 2.0.

     For continued payment of the [*], HP will also be enrolled in Motive's
     Premium ActiveLink Subscription Service and will receive Motive's [*] as
     described in Section 12 of the Agreement and Appendix 2 for [*] charge. HP
     will use [*] HP U.S. points of contacts to request and receive maintenance
     and support.

     Licensed Products provided under this Schedule:
     -----------------------------------------------

     Motive Duet Server
     Motive Solo Server (including [*] Self Service Licensing)
     Motive Integration Server
     Motive Support Desktop (includes Motive Studio)
     Motive Concentrator
     Motive Support Tuner

     Delivery of the Licensed Products will be done electronically as designated
     by HP.

     1.2   Implementation Services:

     For payment of [*] in accordance with the Payment Schedule set out in
     Paragraph 1.5, Motive will provide the following professional services. The
     services will be outlined in a mutually agreed to project plan which will
     be incorporated into this Schedule ("Project Plan").  This fee includes
     domestic travel and living expenses.

     -   Set up and [*]
     -   Set up and [*].
     -   Set up and [*] Motive Duet and Motive Solo Servers
     -   Initial Training Services (to [*]
     -   [*]
     -   [*] for initial implementation and set up
     -   [*]

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Schedule No. 1 (121099)                -1-              Confidential Information
<PAGE>

     1.3   Optional [*] Annual Maintenance & Support Fees:

     If elected by HP, Motive will provide its [*] services for [*] for the
     annual fee of [*].  The premium [*] is not included in the Payment Schedule
     and will be payable separately when exercised. The [*] fee will be prorated
     if exercised in mid year.  The [*] Terms and Conditions of the Agreement
     shall apply.  HP will use the same [*] HP U.S. points of contacts to
     request and receive [*].

     1.4   Annual Usage Fees:

     The following fees (called "[*]") are the [*] fees associated with [*] of
     the Licensed Products [*].  These fees have been included in the Payment
     Schedule outlined in Paragraph 1.5. This Paragraph 1.4 does not include any
     fees for support of [*] as outlined in Section 2.0 unless HP elects to pay
     the [*] in Paragraphs 2.1 and 2.2.

<TABLE>
<CAPTION>
Year                                      Annual Usage Fee:
----                                      ----------------
--------------------------------------------------------------------------------
<C>                                       <S>
1    [*]                                  [*]
--------------------------------------------------------------------------------
2    [*]                                  [*]
--------------------------------------------------------------------------------
3    [*]                                  [*]
--------------------------------------------------------------------------------
</TABLE>

     1.5   Payment Schedule:

     The following table outlines the payment schedule for all fees payable by
     HP under Section 1.0 for [*] of the Licensed Products to support [*] (fees
     from Paragraphs 1.1 through 1.4).  This schedule does not include any fees
     for [*] which are outlined in Section 2.0. This Paragraph 1.5 does not
     include any amounts for support of [*] as outlined in Section 2.0 unless HP
     elects to pay the [*] fees in 2.1 and 2.2.

<TABLE>
<CAPTION>
Date                  Amount                             Description
----                  ------                             -----------
                                                         ("M&S means Maintenance
                                                         -----------------------
                                                         and Support)
                                                         ------------
--------------------------------------------------------------------------------
<S>                   <C>                                <C>
[*]                   [*]                                [*]
--------------------------------------------------------------------------------
[*]                   [*]                                [*]
--------------------------------------------------------------------------------
[*]                   [*]                                [*]
--------------------------------------------------------------------------------
[*]                   [*]                                [*]
--------------------------------------------------------------------------------
[*]                   [*]                                [*]
--------------------------------------------------------------------------------
[*]                   [*]                                [*]
--------------------------------------------------------------------------------
[*]                   [*]                                [*]
--------------------------------------------------------------------------------
[*]                   [*]                                [*]
--------------------------------------------------------------------------------
[*]                   [*]                                [*]
--------------------------------------------------------------------------------
[*]                   [*]                                [*]
--------------------------------------------------------------------------------
[*]                   [*]                                [*]
--------------------------------------------------------------------------------
[*]                   [*]                                [*]
--------------------------------------------------------------------------------
[*]                   [*]                                [*]
--------------------------------------------------------------------------------

Total                 [*]
--------------------------------------------------------------------------------
</TABLE>

     * Note:  "[*]" payment shall be due upon the [*] per the Project Plan
     (which are based on HP and Motive meeting their resource and project
     obligations described in the Project Plan) or [*].

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Schedule No. 1 (121099)                -2-              Confidential Information
<PAGE>

2.0  [*] PRODUCT PRICING TERMS

     The following fees apply solely to providing Technical Support to [*]).
     The fees shown below are in addition to the fees outlined in Section 1.0
     and are in addition to the payments outlined in the Paragraph 1.5, Payment
     Schedule.  This Section only applies if HP continues to pay the [*] in
     Section 1.0.

     2.1   [*] Fee:

     [*] Fee:    [*]

     At any time during [*], HP may make an [*] payment of [*].  For payment of
     this [*] amount, HP may use throughout the [*] number of the Licensed
     Products listed in this Schedule for the sole purpose of providing [*].

     2.2   Annual Maintenance & Support Fees:

     For an additional annual fee of $[*], Motive will provide its standard [*]
     services to HP [*].  The Maintenance and Support Fee will be paid [*] on
     the date HP exercises this [*] option. Maintenance fees will be prorated to
     be coterminous with the annual maintenance periods for the [*].  The
     Maintenance and Support Terms and Conditions of the Agreement shall apply.
     HP will use [*] HP U.S. points of contacts to request and receive
     maintenance and support for [*].

     2.3   Optional [*] Annual Maintenance & Support Fees:

     If elected by HP, Motive will provide its [*] Maintenance and Support
     services for [*] Products for the annual fee of [*].  The [*] Maintenance
     and Support Fee is not included in the Payment Schedule and will be payable
     separately when exercised. The [*] fee will be prorated if exercised in mid
     year.  The Maintenance and Support Terms and Conditions of the Agreement
     shall apply.  HP will use the same additional [*] HP U.S. points of
     contacts as described in Paragraph 2.2 above to request and receive premium
     maintenance and support.

3.0  TERM EXTENSIONS:

     On an [*] basis, beginning [*], HP and Motive will [*] the then current
     Term for an [*] and mutually agree on [*] for [*] for the [*].

4.0  SUSTAINING USE:

     At HP's option, for a period of up [*] after the [*], HP may choose to
     continue supporting existing HP Product units already shipped and supported
     by the Licensed Products by paying Motive an [*]).  HP agrees not to deploy
     the Licensed Products on [*] during this period.  For payment of the [*],
     HP will be entitled to receive standard 5x10 Maintenance and Support as
     well as Motive's Premium ActiveLink Subscription during the extended
     Sustaining Use period for [*].

5.0  LICENSE AND USAGE RIGHTS AT CONCLUSION OF TERM:

     At the end of the Term or at the end of the [*] period outlined in 4.0,
     HP's [*] right to the Licensed Products [*] and [*] (i) [*] deploying or
     [*] any Licensed Products licensed under this Schedule; (ii) [*] installed
     Licensed Products to support its [*]; and (iii) [*] and [*] Motive
     ActiveLink and [*] any Active Content Files downloaded from ActiveLink.

6.0  SUPPORT OF [*] PRODUCTS:

     During the Term, HP may provide Technical Support for [*] by HP that are
     used by a Customer provided that the number of [*] does not exceed [*] of
     the total number of computers being supported for that individual Customer.

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Schedule No. 1 (121099)                -3-              Confidential Information
<PAGE>

7.0  PROFESSIONAL SERVICES:

     For a period of [*] from the date this Schedule is executed, HP may
     purchase additional Professional Services, in blocks of [*] increments, at
     a daily rate of [*] per day.  One day is defined as one person for an eight
     hour day. The daily rate includes travel and living expenses.

8.0  OTHER TERMS AND CONDITIONS:

     8.1  All pricing and fees are based on [*] of Support Chain Automation
     technology during the [*] provided the Licensed Products perform in
     accordance with the Specifications.

     8.2  In consideration of the [*] provided, HP agrees to work with Motive on
     the [*] Motive Concentrator [*]. Subject to mutual agreement, [*] will
     provide [*] around this offering by actively including the product in its
     commercial [*]. Specifically, [*]:

     .  will participate in [*] of the technology and its initial capabilities
        and configuration. [*] will identify at least [*] from its [*] team to
        review product specifications and participate proactively in [*].
     .  will install [*] different [*] of the product at [*] and execute the
        documented installation, setup and user [*]. These [*] must include
        simulations of interconnections [*].
     .  will, as mutually agreed, include the Motive Concentrator [*] at [*] to
        [*] Customers that install and activate [*].
     .  will, as mutually agreed, [*] specifically for the [*] of the Motive
        Concentrator. This [*] defines the look, feel and default [*] of the
        Concentrator.
     .  will, as mutually agreed, [*] and personnel needed to assist [*]
        customers with the [*] Motive Concentrator [*].

     8.3  [*] Fees are based on and only apply to the [*] for which [*] is
     providing [*]..  If through acquisitions or mergers HP [*] of these [*] by
     more than [*] charges may apply.

     8.4  HP and Motive agree to work together to [*] the Licensed Products as
     soon as possible which is currently expected to be end of year [*].  This
     would include [*].

IN WITNESS WHEREOF, the parties to the above referenced Software License
Agreement have caused this instrument to be executed by their duly authorized
representatives. HP, by its execution hereof, orders and purchases for delivery,
under the terms and conditions of the Agreement, the Licensed Product(s) and
Support Services provided in accordance with this Schedule.

Hewlett-Packard Company                         Motive Communications, Inc.

By:     /s/ Bruno Pillet                        By:     /s/ Scott Harmon
       -----------------------                         --------------------
Name:   Bruno Pillet                            Name:   Scott Harmon
       -----------------------                         --------------------
Title:  General Manager CCSD                    Title:  President & CEO
       -----------------------                         --------------------
Date:   12/13/99                                Date:   December 13, 1999
       -----------------------                         --------------------

Hewlett-Packard Company

By:     /s/ Tom Ashburn
       -----------------------
Name:   Tom Ashburn
       -----------------------
Title:  HPVP & GMCSSG
       -----------------------
Date:   12-13-99
       -----------------------

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Schedule No. 1 (121099)                -4-              Confidential Information
<PAGE>

                                  APPENDIX 2

                    SUPPORT SERVICES ESCALATION PROCEEDURES

          During the initial period for which HP has subscribed to and paid for
contracted annual maintenance and support for the Licensed Product(s), and any
subsequent renewal periods thereafter, Motive will provide the following
maintenance services.  In the event HP acquires additional licenses beyond its
initial acquisition, maintenance fees for such licenses shall be pro-rated to be
co-terminus with HP's existing maintenance.

SCOPE OF SUPPORT SERVICES.  Motive shall use commercially reasonable efforts to
-------------------------
provide the following services for the Licensed Product(s) during the hours
specified:

 .    Maintain a center capable of receiving information from HPs through the
     Motive Assistant, electronic mail , fax, telephone or postal mail.

 .    Information will also be made available via the internet.

 .    Standard support and error correction allow for up [*] people designated by
     HP to Motive in writing to have access to the Motive support organization
     ("Authorized Contact Persons"). Additional contacts may be purchased, if so
     desired by the customer.

 .    All inquiries to technical support must be made by an Authorized Contact
     Person.

 .    Licensed Product(s) updates that Motive, in its discretion, makes generally
     available without additional charge.

 .    Motive shall make reasonable effort to accommodate requests for
     modifications; however, Motive is under no obligation to incorporate those
     requests from HP in future releases of any product or product component.

 .    From time to time Motive may provide HP with on-site support in the form of
     installation, configuration, and training assistance.

ERROR SEVERITY LEVELS.  Motive shall exercise commercially reasonable efforts to
---------------------
correct any Error reported by HP in the current unmodified release of Licensed
Product(s) in accordance with the Severity level reasonably assigned to such
Error by Motive.

 .    Severity 1 Errors - Motive shall promptly commence the following
     procedures: (i) assign Motive engineers to investigate the Error; (ii)
     notify Motive management that such Errors have been reported and of steps
     being taken to correct such Error(s); (iii) provide HP with periodic
     reports on the status of the investigation; and (iv) initiate work to
     provide HP with a Workaround or Fix. If Motive has not fixed the Error or
     provided a workaround within [*], the Error will be reported to senior
     Motive management for further review and focus.

 .    Severity 2 Errors - Motive shall exercise [*] to provide HP with a Fix or
     workaround for the Error. Motive will escalate the Error to upper
     management as described above for Severity 1 Errors above and shall include
     the Fix in the next regular Licensed Product(s) maintenance release.

 .    Severity 3 Errors - Motive may include the Fix for the Error in a [*] of
     the Licensed Product(s).

HP is responsible for providing sufficient information and data to allow Motive
to readily reproduce all reported Errors.  If Motive believes that a problem
reported by HP may not be due to an Error in a Licensed Product(s), Motive will
so notify HP

EXCLUSIONS.  Motive shall have no obligation to support: (i) Licensed Product(s)
----------
which has been altered by HP without Motives authorization or direction or
damaged Licensed Product(s) or any portion of a Licensed Product(s) incorporated
with or into other software without Motives authorization or direction; (ii)
Licensed Product(s) that is not the then current release or immediately Previous
Sequential Release; (iii) Licensed Product(s) problems caused by HP's
negligence, abuse or misapplication, use of Licensed Product(s) other than as
specified in Motive's user manual or other causes beyond the control of Motive;
or (iv) Licensed Product(s) installed on any hardware that is not supported by
Motive.  Motive shall have no liability for any changes in HP's hardware which
may be necessary to use Licensed Product(s) due to a Workaround or maintenance
release.

SERVICE OPTIONS

The following paragraphs outlines the type of service options which may be
selected by HP.

 .    Motivated Support Package.
     -    Hours of (5x10) Support: 8:00 a.m. to 6:00 p.m. CST normal business
          days.
     -    Response Time: [*] minutes for support requests made through the
          Motive support system and [*] hours for classic support requests
          (phone, Email, or Web submissions).
     -    Description: [*] Motive support requests; [*] Severity 1 classic
          support requests; [*] Severity 2 and 3 classic support requests.

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Motive Support Services (121698)        1
<PAGE>

 .    Premium Motivated Support Package.

     -    Hours of Support: 24 hours a day, seven days a week for Severity [*]
          requests.
     -    Response Time: [*] minutes for support requests made through the
          Motive support system and [*] hours for classic support requests
          (phone, Email, or Web submissions).
     -    Description: [*] response for Severity [*] Requests; [*] Motive
          support requests; [*] Severity [*] classic support requests; [*]
          Severity 2 and 3 classic support requests.

MISCELLANEOUS
-------------

 .    Motive Recognized Holidays: New Year's Day, Memorial Day, Fourth of July
     Labor Day, Thanksgiving and Friday following Thanksgiving, and Christmas
     Day

ESCALATION CONTACTS
-------------------

If HP is unsatisfied with the quality of support being received, please contact
one of the following individuals in accordance with the appropriate Severity
level at (512)  339-8335:

 .    Severity 3:  Tony Frey, Mgr. Technical Support

 .    Severity 2:  Chris Chauvin, Dir. Professional Services

 .    Severity 1:  Scott Abel, VP Business Development

DEFINITIONS.
-----------

 .    "Error" means a defect in a Licensed Product(s) as compared to Motive's
     published performance specifications which significantly degrades such
     Licensed Product(s).

 .    "Error Correction" means the use of reasonable commercial efforts to
     correct Errors.

 .    "Fix" means the repair or replacement of object or executable code of a
     Licensed Product(s) to remedy an Error.

 .    "Previous Sequential Release" means the release of a Licensed Product(s)
     which has been [*] by a subsequent release of the same Licensed Product(s).
     Notwithstanding anything else, a Previous Sequential Release will be
     supported by Motive only for a period of [*] months after release of the
     subsequent release.

 .    "Severity 1 Error" means an Error which impacts production environments
     only. The Motive System is mission critical and the situation is an
     emergency for the Customer. This Error prevents the user from performing a
     mission critical action or task in the system.

 .    "Severity 2 Error" means an error in which a minor functionality is
     experiencing a reproducible problem which causes minor inconvenience to the
     user.

 .    "Severity 3 Error" means an Error in which an important function is
     experiencing an intermittent problem or a common non-essential operation is
     failing consistently.

 .    "Support Services" means Motive support services as described in Section 1.

 .    "Standard Support" means technical support assistance provided by Motive
     via telephone, electronic mail, fax, or postal mail to the Technical
     Support Contact during normal business hours concerning the installation
     and use of the then current release of a Licensed Product(s) and the
     Previous Sequential Release.

 .    "Workaround" means a change in the procedures followed or data supplied by
     HP to avoid an Error without substantially impairing HP's use of a Licensed
     Product(s).

 .    "Response" means acknowledgement of problem received containing assigned
     support engineer name, problem queue name, data and time assigned, and
     severity assignment.

 .    "Regular Hours" means 8:00 A.M. to 6:00 P.M. Central Time on Motive's
     regular business days excluding regularly scheduled holidays.

 .    "Extended Hours" means twenty four (24) hours per day, seven days per week.

THESE TERMS AND CONDITIONS DEFINE A SERVICE ARRANGEMENT AND NOT A PRODUCT
WARRANTY.  ALL PRODUCTS, PRODUCT COMPONENTS AND MATERIALS RELATED THERETO ARE
SUBJECT EXCLUSIVELY TO THE WARRANTIES SET FORTH IN THE APPLICABLE LICENSE
AGREEMENT.  THESE TERM AND CONDITIONS DO NOT CHANGE OR SUPERSEDE ANY TERM OF ANY
SUCH AGREEMENT.

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Motive Support Services (121698)        2
<PAGE>

                                AMENDMENT #1 T0
                           SOFTWARE LICENSE AGREEMENT
                            DATED DECEMBER 13, 1999
                                    BETWEEN
                            HEWLETT PACKARD COMPANY
                                      AND
                          MOTIVE COMMUNICATIONS, INC.

This Amendment # 1 ("Amendment # 1") to that certain Software License Agreement
entered as of December 13, 1999, by and between Hewlett Packard Company ("HP")
and Motive Communications, Inc. ("Motive") is entered into by and between HP and
Motive effective as of February 7, 2000 ("Effective Date").

     A.   WHEREAS, HP and Motive entered into a Software License Agreement as of
          December 13, 1999 (the "Agreement") under which Motive granted HP a
          license to use Motive's software programs known as the Licensed
          Product(s) designated in Pricing Schedule No. 1, upon the terms and
          conditions set forth in the Agreement; and

     B.   WHEREAS, HP and Motive desire to modify and amend the Agreement as set
          forth in this Amendment #1 and in Pricing Schedule No. 2 so that HP
          may use the Licensed Products to provide Technical Support for the HPD
          Products (defined in Section 1.16 hereof); and

     C.   WHEREAS, HP and Motive desire to maintain without modification or
          amendment the terms and conditions of the Agreement and Pricing
          Schedule No. 1 with respect to the commercial HP Products that are the
          subject of the Agreement and Pricing Schedule No. 1.

NOW, THEREFORE, the parties agree as follows:

1.   Section 1 of the Agreement is hereby amended to add the following new
     sections:

     (a)  Section 1.17

     "HPD Product" means [*], which are targeted to the [*].  HPD Products are
     HP Products as defined in Section 1.3 of the Agreement and are included in
     the definition of HP Products for purposes of the Agreement.

     (b)  Section 1.18

     "HP Property" means the material independently developed by HP, its agents
     and third-party contractors for use with the Licensed Products(s),
     including without limitation, text, graphics, page design and structure,
     the organization and presentation of such material, its look and feel, and
     all associated intellectual property rights.  HP Property does not include
     any portion of the Licensed Product(s).

2.   Section 1.6 of the Agreement is hereby modified as follows, solely with
     respect to the HPD Products:

     "Licensed Products(s)" means (a) the products listed on Pricing Schedule
     No. 2, (b) any and all related Documentation, (c) New Releases, and (d) New
     Versions.

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Software License Agreement             -1-                          Confidential
Amendment No. 1 (020400)
<PAGE>

3.   Section 2 of the Agreement is hereby amended to add the following, solely
     with respect to the HPD Products:

     (a) Section 2.9:

     HP retains all right, title and interest in the [*], including all [*]
     therein.  HP hereby grants to Motive a [*] to use the [*] solely for the
     purposes of providing the Professional Services described in this Amendment
     #1 and in Pricing Schedule No. 2.  No other right or license, express or
     implied, to the [*] is granted hereby.  HP expressly reserves all rights in
     and to the [*] other than those granted in this Amendment #1.

     (b) Section 2.10:

     HP shall have the right to use and deploy during the Term of the Pricing
     Schedule No. 2 any [*] to the Licensed Products which are not covered under
     Maintenance but were created by [*] under the Agreement.

     (c) Section 2.11

     The parties acknowledge and agree that HP's principle purpose in making use
     of Motive's Professional Services is to integrate and deploy the [*] with
     the Licensed Product(s)' self-service and assisted service functionality to
     [*].  Accordingly, Motive agrees to cooperate with HP to further such
     purpose for a period of [*] months from the [*] of the [*] with the
     Licensed Products on the HPD Product.  The foregoing sentence does not
     contemplate additional Professional Services for HP on the part of Motive
     beyond those specified in the Agreement as amended and in Pricing Schedule
     No. 2.  If HP requires any additional Professional Services from Motive,
     all such services will be provided pursuant to a mutually agreed written
     Pricing Schedule executed by both parties.  Nothing herein precludes Motive
     from developing other user interfaces which may perform similar functions
     as the HP Property as long as such development is done without use or
     disclosure of HP's [*] of HP's [*].

4.   Section 8 of the Agreement is hereby amended to add the following Section
     8.1.1, solely with respect to the HPD Products:

     HP hereby designates the [*] and the fact that [*] as the Confidential
     Information of HP under this Section 8, and Motive hereby acknowledges and
     agrees to such designation.

5.   Section 12 of the Agreement is hereby modified as follows, solely with
     respect to the HPD Products:

     (a)  The second sentence of Section 12.3 is hereby replaced with the
     following:

     Motive will support the [*] release of the Licensed Product(s) for a period
     of [*] after release of the [*] of the Licensed Product(s).

     (b)  Section 12.4 is hereby replaced in its entirety with the following:

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Software License Agreement             -2-                          Confidential
Amendment No. 1 (020400)
<PAGE>

     Motive's Standard Maintenance and Support Plan shall include (i) New
     Releases, New Versions, [*], and [*] then currently under maintenance to
     supply improvements, extensions and other changes to the Licensed
     Product(s) which Motive, at its discretion, deems to be logical
     improvements, extensions; (ii) Code Corrections to correct material
     deviations of the unmodified portion of the Licensed Product(s) from the
     Specifications (maintenance and support of the modified portions of the
     License Products made by HP or by Motive for HP will be the responsibility
     of HP; (iii) [*] support requests through [*] HP designated individuals,
     using the Motive support system technology; (iv) Classic Hotline Support to
     provide support service via telephone, FAX, and E-mail, including [*]
     requests for mission critical production related situations and up to [*]
     requests annually for all non-critical classic (telephone, FAX, and email)
     support requests; and (v) Fixes to supply workarounds for problems, answer
     questions and provide patches where a patch is required for a fix. Support
     requests will be made pursuant to Motive's principal period of service
     ("PPS") during the hours of [*], CST, Monday through Friday, with the
     exception of Motive holidays. If on-site assistance is required and the
     problem is the failure of the Licensed Product(s) to materially perform to
     Specifications, [*] charge will be made. If the problem is due to causes
     other than Licensed Product(s) failure to perform to Specifications,
     Motive's [*] professional services rates for such services will be
     applicable and [*].

     Mission critical support requests for Licensed Product(s) is defined as
     follows:

     Emergency situations in which Licensed Product(s) are not usable, produce
     incorrect results, lose information or data, or fail catastrophically in
     response to internal errors, user errors or incorrect input files, or cause
     an inordinate number of consumer support requests; or detrimental or
     serious situations where there is a severe impact on use or performance of
     the Licensed Product(s) (ie. Licensed Product(s) experience one or more
     inoperable commands or functions that degrade usability) and cause an
     inordinate number of consumer support requests.

     Non critical support requests for Licensed Product(s) is defined as
     follows:

     Inconvenient situation in which the Licensed Product(s) are usable but do
     not provide a function in the most convenient or expeditious manner, but
     use of the Licensed Product(s) suffers little or no significant impact.

6.   Section 13 of the Agreement is hereby modified and amended as follows,
     solely with respect to the HPD Products:

     (a) The second sentence of Section 13.2 ("Scope of Professional Services")
         is hereby deleted.

     (b) Section 13.2 is hereby further modified to add the following after its
         last sentence:

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Software License Agreement            -3-                           Confidential
Amendment No. 1 (020400)
<PAGE>

     The parties expressly agree that the scope of Motive's Professional
     Services to HP with respect to the transactions contemplated under this
     Amendment #1 and Pricing Schedule No. 2 (i) [*] include any modification or
     creation of derivative works of the [*] by Motive; (ii) includes [*] to and
     training of [*], its agents and [*], on the features and use of the
     Licensed Products and the integration of the Licensed Products with the
     [*]; (iii) includes the physical integration of the [*] without
     modification with the Licensed Products to enable the functionality of the
     Licensed Products. Nothing in this Section 13.2 affects the ownership
     rights of HP in the [*] and of Motive in the Licensed Products.

     (c)  The following new Section 13.10 is hereby added:

     Motive agrees to carry such adequate health, auto, workers compensation,
     and liability insurance as is required or common practice in its trade or
     business.

7.   Section 15 of the Agreement is hereby amended to add the following Section
     15.1.1:

     Motive and HP have executed an escrow agreement ("Escrow Agreement"), with
     Data Securities International, Inc. (hereinafter "DSI") and deposited with
     DSI, a copy of the Source Code for the Licensed Product(s) bundled with HPD
     Product(s) along with related materials, including Documentation in
     accordance with the terms of the Escrow Agreement.

8.   Section 16 of the Agreement is hereby amended to include the following:

     If the notice concerns this Amendment #1 or Pricing Schedule No. 2, to HP:

     [*]
     Hewlett-Packard Company
     10500 Ridgeview Court, MS 49DU/OG
     P.O. Box 4010
     Cupertino, California 95015-4010

9.   Definitions. Capitalized terms used in this Amendment #1 and not defined
     ------------
     herein shall have the meanings set forth in the Agreement.

10.  Counterparts.  This Amendment #1 may be executed in counterparts, each of
     ------------
     which shall be deemed an original.

11.  Survival.  The following provisions of this Amendment #1 survive any
     --------
     expiration or termination of the Agreement as amended:  Section 1, Section
     2, Section 3(a), Section 3(b), Section 4, Section 7, Section 8, Section 9,
     Section 10, Section 11, and Section 12.

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Software License Agreement            -4-                           Confidential
Amendment No. 1 (020400)
<PAGE>

12.  Precedence.  To the extent of any conflict between the terms and conditions
     ----------
     of this Amendment #1 and those of the Agreement with respect to the subject
     matter of this Amendment #1, this Amendment #1 supersedes the Agreement.

     Except as otherwise expressly set forth herein, the Agreement and each and
every provision thereof shall remain in full force and effect.

     IN WITNESS WHEREOF, HP and Motive have executed this Amendment #1 as of the
date first written above.

HEWLETT PACKARD COMPANY              MOTIVE COMMUNICATIONS, INC.

By:          /s/ John Romano         By:         /s/ Christopher A. Burch
   --------------------------------     --------------------------------------

Print Name: John Romano              Print Name: Christopher A. Burch
           ------------------------             ------------------------------

Title:      General Manager--HPD     Title:      Manager of Contract Services
      -----------------------------        -----------------------------------

                                                 February 7, 2000

Software License Agreement            -5-                           Confidential
Amendment No. 1 (020400)
<PAGE>

                                  APPENDIX II

                                HEWLETT-PACKARD

                            PRICING SCHEDULE NO. 2

                               FEBRUARY 7, 2000

     This Pricing Schedule No. 2 ("Schedule") documents the pricing terms for
software and services licensed by Hewlett-Packard Company under the terms and
conditions of the Software License Agreement dated December 13, 1999, contract
#MAS990003 ("Agreement"), as amended on February 7, 2000 ("Amendment #1"),
between Motive Communications, Inc. ("Motive") and HP.

     The purpose of this Schedule is to (i) exercise the option as set forth in
Section 2.0 of Pricing Schedule No. 1, dated December 13, 1999 and (ii) to
establish the pricing and additional terms under which HP may [*] Licensed
Product(s) to provide [*] bundled with Licensed Product(s).

     Licensed Product(s) provided under this Schedule:

     Motive Duet Server
     Motive Solo Server (including [*] Self-Service Licensing)
     Motive Integration Server
     Motive Support Dekstop (includes Motive Studio)
     Motive Support Tuner

     Schedule Fees for [*] Support:

     [*]**                          [*]
     Annual Maintenance Fee [*]     [*]
     Professional Services          [*]

     Total Fees:                    [*]

     **One time fee for the [*] of the Agreement.

     Payment Terms:

     Upon [*], Motive will invoice HP [*].  Pursuant to the Agreement, all
     payments will be made [*] after receipt of Motive's invoice by HP.

     Professional Services:

     For payment of [*], Motive will provide the professional services to HP as
     outlined in the following statement of work.  This fee [*] reasonable
     domestic travel and living expenses. The services will be further specified
     and described in a mutually agreed written project plan, which will be
     incorporated into this Schedule ("Project Plan").

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Schedule No.2 (020400)                -1-                           Confidential

<PAGE>

     Professional Services Statement of Work

     HP and Motive will mutually agree to a written timetable for performance of
     the services provided under this statement of work.

     Planning & Managing

     .    [*]

     .    [*]

     .    [*]

     .    [*]

     .    [*]

     .    [*]

     .    [*]

     Requirements & Design

     .    [*]

     .    [*]

     .    [*]

     .    [*]

     .    [*]

     Installation & Configuration

     .    [*]

     .    [*]

     .    [*]

     .    [*]

     .    [*]

     Development

     .    [*]

     .    [*]

     .    [*]

     .    [*]

     .    [*]

     Test

     .    [*]

     .    [*]

     .    [*]

     .    [*]

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Schedule No.2 (020400)                -2-                           Confidential
<PAGE>

     Production

     .    [*]

     .    [*]

     .    [*]

     .    [*]

     .    [*]

     HP may purchase additional professional services at a daily rate of [*] per
     day.  One day is defined as one person for an eight hour day.  The daily
     rate includes travel and living expenses.

     The parties agree that notwithstanding the itemization of services in this
     Statement of Work, Section  6(b) of Amendment #1 governs the scope of
     Professional Services and supersedes the itemized services in the Statement
     of Work to the extent of any conflict with the scope set forth in Section
     6(b).

     [*] Proprietary Information:

     [*] retains all right, title and interest in the [*], including all [*]
     therein. [*] hereby grants to [*] a [*] license to use the [*] solely for
     the purposes of providing the Professional Services described in this
     Amendment #1 and in Pricing Schedule No. 2.  No other right or license,
     express or implied, to the [*] is granted hereby. [*] expressly reserves
     all rights in and to the [*] other than those granted in this Amendment #1.

     The parties acknowledge and agree that [*] principle purpose in making [*]
     Professional Services is to [*] with the Licensed Product(s)' [*].
     Accordingly, [*] agrees to cooperate with [*] to further such [*] of the
     [*] with the Licensed Products on the [*].  The foregoing sentence does not
     contemplate additional Professional Services for [*] on the part of [*]
     beyond those specified in the Agreement as amended and in Pricing Schedule
     No. 2.  If [*] requires any additional Professional Services from [*], all
     such services will be provided pursuant to a mutually agreed written
     Pricing Schedule executed by both parties.  Nothing herein precludes [*]
     from [*] other user interfaces which may perform similar functions as the
     [*] as long as such [*] is done without use or disclosure of HP's [*] or
     violation of HP's [*].

     [*] Proprietary Information:

     [*] proprietary information includes [*].[*] proprietary information does
     not include the [*].  Except for the license use rights otherwise expressly
     provided in the Agreement, no right, title or interest in [*] is granted
     hereunder.

     Term Extensions:

      On an annual basis, beginning [*], HP and Motive may negotiate in good
      faith to extend the then current Term for [*] and may mutually agree on
      additional fees for continued [*] for Licensed Product(s) bundled with [*]
      for the [*] year.

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Schedule No.2 (020400)                -3-                           Confidential
<PAGE>

     Sustaining Use:

     At HP's option, for a period of up [*] years after the Term, HP may choose
     to continue [*] by the Licensed Products by continuing to [*] for [*]
     support or [*] for [*] support) for each year HP wants [*]. During this [*]
     period, HP  agrees not to deploy the Licensed Products on [*].  For payment
     of the [*] fee, HP will be entitled to receive standard [*] as well as
     Motive's Premium ActiveLink Subscription during the extended [*] period.

     [*] at Conclusion of Term:

     At the [*] or at the [*] outlined above, [*] to the Licensed Products [*]
     and HP agrees to immediately (i) [*] any Licensed Products licensed under
     this Schedule; (ii) [*] Licensed Products to support its [*]; and (iii) [*]
     Motive ActiveLink and [*] any ActiveContent files downloaded from
     ActiveLink.

     Entire Agreement:

     This Schedule, together with the Agreement, as amended by Amendment #1,
     Schedule No. 1, and any attachments hereto, sets forth the entire agreement
     between the parties with respect to the matters set forth herein and
     supersedes all prior and contemporaneous discussions or understandings
     between them relating to HP's use of the Licensed Products to provide
     Technical Support for [*].  If there are any inconsistencies or conflicts
     between the provisions in the Agreement and this Schedule, the provisions
     of this Schedule shall govern and prevail. Capitalized terms used in this
     Schedule and not defined herein shall have the meanings set forth in the
     Agreement or in Amendment #1, as applicable.  Except as otherwise expressly
     set forth herein and in Amendment #1, the Agreement and each and every
     provision thereof shall remain in full force and effect.

     Counterparts:

     This Schedule may be executed in counterparts, each of which shall be
deemed an original.

     IN WITNESS WHEREOF, HP and Motive have executed this Schedule as of the
date first written above.

HEWLETT PACKARD COMPANY              MOTIVE COMMUNICATIONS, INC.

By:          /s/ John Romano         By:         /s/ Christopher A. Burch
   --------------------------------     --------------------------------------

Print Name: John Romano              Print Name: Christopher A. Burch
           ------------------------             ------------------------------

Title:      General Manager--HPD     Title:      Manager of Contract Services
      -----------------------------        -----------------------------------

                                                 February 7, 2000

* Certain confidential information on this page has been omitted and filed with
the Securities and Exchange Commission.

Schedule No.2 (020400)                -4-                           Confidential<PAGE>

                                                                    Exhibit 10.1

                              FIRST AMENDMENT TO
                 SECOND AMENDED AND RESTATED CREDIT AGREEMENT
                 --------------------------------------------

          THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT
("Amendment") is made and entered into effective as of the 31st day of October,
2000 (the "Effective Date"), by and among MATRIX SERVICE COMPANY, a Delaware
corporation (hereinafter referred to as "Matrix"), MATRIX SERVICE, INC., an
Oklahoma corporation (hereinafter to as "MSI"), MIDWEST INDUSTRIAL CONTRACTORS,
INC., a Delaware corporation (hereinafter referred to as "MIC"), MATRIX SERVICE
MID-CONTINENT, INC., an Oklahoma corporation (hereinafter referred to as "MSM"),
SAN LUIS TANK PIPING CONSTRUCTION CO., INC., a Delaware corporation (hereinafter
referred to as "SLT"), WEST COAST INDUSTRIAL COATINGS, INC., a California
corporation (hereinafter referred to as "WCI"), MATRIX SERVICE, INC. (CANADA),
an Ontario corporation (hereinafter referred to as "MSIC"), and BANK ONE,
OKLAHOMA, N.A. (hereinafter referred to as the "Bank").  Matrix, MSI, MIC, MSM,
SLT, WCI and MSIC are hereinafter collectively referred to as the "Borrowers"
and individually as a "Borrower."

                                   RECITALS
                                   --------

          A.  The Bank and certain of the Borrowers are parties to that certain
Second Amended and Restated Credit Agreement dated as of November 30, 1999 (the
"Existing Credit Agreement"), pursuant to which the Bank has established a
Revolving Credit Facility in the maximum principal amount of $20,000,000.

          B.  The Borrowers have requested that the Bank: (i) extend the
maturity date of the Revolving Note from October 31, 2002 to October 31, 2003,
and (ii) modify the procedure for requesting Advances under the Revolving Credit
Facility.

          C.  The Bank has agreed to the foregoing, subject to the terms and
conditions hereinafter set forth.

          NOW THEREFORE, in consideration of the foregoing, and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, and subject to the terms and conditions set forth herein, the
parties hereby amend the Existing Credit Agreement as follows:

1.        EXTENSION OF MATURITY DATE.  In accordance with Section 2.11 of the
          --------------------------
Existing Credit Agreement, the Borrowers have requested the Bank to extend the
termination date of the Revolving Credit Facility for an additional one (1) year
period beyond the currently stated maturity. The Bank hereby agrees, as of the
Effective Date, to extend the maturity date of the Revolving Note from October
31, 2002 to October 31, 2003. In order to implement the foregoing, the Existing
Credit Agreement is amended, as of the Effective Date, as follows:

          A.  Definition Used Only in This Amendment.  For purposes of this
              --------------------------------------
Amendment only, the term "Replacement Note" shall mean the promissory note to be
executed and
<PAGE>

delivered by the Borrowers pursuant to this Amendment, in substantially the form
attached hereto as Exhibit "A-1." The parties agree that, from and after the
date of this Amendment, unless the context otherwise requires: (i) all
references to the "Revolving Note" appearing in the Existing Credit Agreement or
any other Loan Documents shall mean and refer to the Replacement Note, together
with any and all renewals, extensions or replacements thereof, amendments or
modifications thereto or substitutions therefor, and (ii) the term "Loan
Documents" shall include the Replacement Note.

          B.  Modification of Date Reference.  All references in the Existing
              ------------------------------
Credit Agreement to the date "October 31, 2002" are hereby deleted and replaced
with the date "October 31, 2003."

2.        MODIFICATION TO ADVANCE REQUEST PROCEDURE.  The Bank and the Borrowers
          -----------------------------------------
hereby agree, as of the Effective Date, to modify the procedure for requesting
Advances under the Revolving Credit Facility.  In order to implement the
foregoing, the Existing Credit Agreement is amended as of the Effective Date by
deleting in its entirety Section 2.3.1 of the Existing Credit Agreement and
replacing it with the following:

                    2.3.1  Requests for Advances.  The Borrowers shall make each
                           ---------------------
               request for an Advance either orally or in writing no later than
               11:00 a.m., Tulsa time, on the requested date of disbursement;
               provided, however, that the Bank in its sole discretion may
               --------  -------
               request that the Borrowers confirm oral requests for Advances by
               delivering to the Bank a properly completed and executed
               Disbursement Request. Each request for an Advance shall specify
               (i) the requested date of disbursement (which shall be a Business
               Day), (ii) the amount of the requested Advance, (iii) whether the
               requested Advance will be included within the Prime Tranche or a
               LIBOR Tranche, and (iv) in the case of an Advance to be included
               within a LIBOR Tranche, the requested Interest Period. Each
               request for an Advance under the Prime Tranche shall be in a
               minimum amount of $50,000.00 (unless the remaining availability
               under the Revolving Credit Facility is less than $50,000.00) and
               in integral multiples of $50,000.00 in excess of that amount, and
               each request for an Advance under a LIBOR Tranche shall be in a
               minimum amount of $500,000.00 and in integral multiples of
               $50,000.00 in excess of that amount.

3.        CONDITIONS PRECEDENT.  The amendment to the Existing Credit Agreement
          --------------------
set forth in this Amendment shall be effective from and after the Effective
Date, but subject to the satisfaction by the Borrowers of each of the following
conditions precedent:

          A.   Execution of Documents.  The following documents shall have been
               ----------------------
duly and validly authorized, executed and delivered by the respective parties
thereto, all in a form and substance satisfactory to the Bank:

          (i)    This Amendment; and
<PAGE>

          (ii)   The Replacement Revolving Note.

     B.   No Defaults.  No Default or Event of Default shall have occurred or be
          -----------
continuing.

4.   REPRESENTATIONS AND WARRANTIES. All representations and warranties of the
     ------------------------------
Borrowers contained in the Existing Credit Agreement are hereby restated and
reaffirmed as of the date hereof (except to the extent any such representation
or warranty as to the financial condition of the Borrowers relates solely to an
earlier date) and shall survive the execution and delivery of this Amendment.
The Borrowers further represent and warrant to the Bank as follows:

     A.   Binding Obligations.  This Amendment, the Existing Credit Agreement
          -------------------
(as amended by this Amendment), and the Replacement Note constitute valid and
legally binding obligations of the Borrowers, enforceable in accordance with
their respective terms.

     B.   Conflicting Agreements and Restrictions.  The Borrowers' execution,
          ---------------------------------------
delivery and performance of this Amendment, the Existing Credit Agreement (as
amended by this Amendment), and the Replacement Note do not and will not (i)
conflict with, or result in a breach of the terms, conditions or provisions of,
or constitute a default under, or result in any violation of any agreement,
instrument, undertaking, judgment, decree, order, writ, injunction, statute,
law, rule or regulation to which any of the Borrowers is subject or by which any
of their Properties are bound, or (ii) result in the creation or imposition of
any Lien on any Property pursuant to the provisions of any mortgage, indenture,
security agreement, contract, undertaking or other agreement, except for
security interests created in favor of the Bank.

     C.   No Consent.  The Borrowers' execution, delivery and performance of
          ----------
this Amendment, the Existing Credit Agreement (as amended by this Amendment),
and the Replacement Note, do not and will not require any authorization,
consent, license, approval or authorization of or other action by, or notice or
declaration to, or registration with, any Governmental Authority, or, to the
extent that any such consent or other action may be required, either (i) such
consent or other action has been validly procured or duly taken, or (ii) the
Borrowers' failure to procure such consent or take such other action would not
subject the Borrowers to a penalty, or otherwise have a Material Adverse Effect.

5.   MISCELLANEOUS.
     -------------

     A.   Effect of Amendment.  The Existing Credit Agreement, as amended,
          -------------------
modified and supplemented by this Amendment, shall continue in full force and
effect in accordance with its terms and is hereby reaffirmed in every respect as
of the date hereof.  To the extent that the terms of this Amendment are
inconsistent with the terms of the Existing Credit Agreement, this Amendment
shall control and the Existing Credit Agreement shall be amended, modified or
supplemented so as to give full effect to the transactions contemplated by this
Amendment.

     B.   Exhibits.  All exhibits attached hereto are incorporated herein by
          --------
reference and
<PAGE>

constitute a part of this Amendment.

     C.   Descriptive Headings.  The descriptive headings of the several
          --------------------
paragraphs of this Amendment are inserted for convenience only and shall not be
used in the construction of the content of this Amendment.

     D.   Reimbursement of Expenses.  The Borrowers agree to pay all reasonable
          -------------------------
out-of-pocket expenses, including, without limitation, filing fees, recording
costs and attorney's fees and expenses, incurred by the Bank in connection with
preparation of this Amendment and the consummation of the transactions
contemplated hereby.

     IN WITNESS WHEREOF, the Borrowers and the Bank have caused this Amendment
to be duly executed in multiple counterparts, each of which shall be considered
an original, effective as of the Effective Date.

                              MATRIX SERVICE COMPANY,
                              a Delaware corporation

                              By: /s/ Michael J. Hall
                                  -----------------------------------
                              Name:  Michael J. Hall
                              Title: Vice President

                              MATRIX SERVICE, INC.,
                              an Oklahoma corporation

                              By: /s/ Michael J. Hall
                                  -----------------------------------
                              Name:  Michael J. Hall
                              Title:  Vice President

                              MIDWEST INDUSTRIAL CONTRACTORS, INC., a Delaware
                              corporation

                              By: /s/ Michael J. Hall
                                  -----------------------------------
                              Name:  Michael J. Hall
                              Title:  Vice President
<PAGE>

                              MATRIX SERVICE MID-CONTINENT, INC.,
                              an Oklahoma corporation

                              By: /s/ Michael J. Hall
                                  -----------------------------------
                              Name:  Michael J. Hall
                              Title:  Vice President

                              SAN LUIS TANK PIPING CONSTRUCTION CO., INC., a
                              Delaware corporation

                              By: /s/ Michael J. Hall
                                  -----------------------------------
                              Name:  Michael J. Hall
                              Title:  Vice President

                              WEST COAST INDUSTRIAL COATINGS, INC., a California
                              corporation

                              By: /s/ Michael J. Hall
                                  -----------------------------------
                              Name:  Michael J. Hall
                              Title:  Vice President

                              MATRIX SERVICE, INC. (CANADA),
                              an Ontario corporation

                              By: /s/ Michael J. Hall
                                  -----------------------------------
                              Name:  Michael J. Hall
                              Title:  Vice President

                              BANK ONE, OKLAHOMA, N.A.

                              By: /s/ David G. Page
                                  -----------------------------------
                              Name: David G. Page
                              Title: First Vice President
<PAGE>

                                   EXHIBITS
                                   --------

     Exhibit "A-1"                  -         Form of Replacement Note
<PAGE>

                                 EXHIBIT "A-1"

                                PROMISSORY NOTE
                               (Revolving Note)

                            Due:  October 31, 2003

$20,000,000.00                                                  Tulsa, Oklahoma
                                                                October __, 2000

     FOR VALUE RECEIVED, the undersigned ("Makers") jointly and severally
promise to pay to the order of BANK ONE, OKLAHOMA, N.A. ("Bank"), on or before
October 31, 2003, the principal sum of Twenty Million and No/100 Dollars
($20,000,000.00), or so much thereof as shall be advanced and remain outstanding
hereunder.

     Makers also promise to pay interest on the unpaid principal amount hereof
from time to time outstanding from the date hereof until maturity (whether at
the stated maturity date, by acceleration or otherwise) and after maturity until
paid in full at the rates per annum specified in the Credit Agreement (as
hereinafter defined).

     All payments of principal and interest hereunder shall be made on the dates
and in the amounts specified in the Credit Agreement to Bank at its principal
office in Tulsa, Oklahoma, on or before 2:00 p.m. (Tulsa time), on the date due,
in immediately available funds.  Whenever a payment is due on a day other than a
Business Day, the due date shall be extended to the next succeeding Business Day
and interest (if any) shall accrue during such extension.

     This Note is executed and delivered by Makers pursuant to, and is entitled
to the benefits of, that certain Second Amended and Restated Credit Agreement,
dated effective as of November 30, 1999, as amended by that certain First
Amendment to Second Amended and Restated Credit Agreement dated as of the date
hereof (the same as further amended, supplemented or otherwise modified from
time to time, being hereinafter referred to as the "Credit Agreement"), between
Makers and Bank.  Reference is hereby made to the Credit Agreement for a
complete statement of the repayment terms of this Note, including the prepayment
rights and obligations of Makers and the right of the holder of this Note to
accelerate the maturity hereof on the occurrence of certain Events of Default
(as defined therein), and for all other pertinent purposes. Capitalized terms
used herein and not otherwise defined have the respective meanings assigned to
them in the Credit Agreement.  This Note is the "Revolving Note" referred to in
the Credit Agreement.

     This Note is made, executed and delivered by Makers and accepted by Bank in
renewal and extension of and substitution for, but not in payment or
satisfaction of (or as a novation of), that certain Promissory Note (Revolving
Note) of Makers dated as of November 30, 1999, payable to the order of Bank in
the principal amount of $20,000,000.00 (the "Prior Revolving Note"). All
Security Agreements and other Loan Documents securing payment of the Prior
Revolving Note shall continue in full force and effect as security for payment
of the indebtedness evidenced hereby.
<PAGE>

     Upon the occurrence and during the continuation of any Event of Default,
the holder of this Note may apply payments received on any amount due hereunder
or under the terms of any instrument now or hereafter evidencing or securing any
said indebtedness as said holder may determine.

     It is the intent of Bank and Makers to conform strictly to all applicable
usury laws, and any interest on the principal balance hereof in excess of that
allowed by said usury laws shall be subject to reduction to the maximum amount
of interest allowed under said laws.  If any interest in excess of the maximum
amount of interest allowable by said usury laws is inadvertently paid to the
holder hereof, at any time, any such excess interest shall be refunded by the
holder to the party or parties entitled to the same after receiving notice of
payment of such excess interest.

     The records of the holder of this Note shall be prima facie evidence of the
amount owing on this Note.

     If, and as often as, this Note is placed in the hands of an attorney for
collection or to defend or enforce any of the holder's rights hereunder, Makers
will pay to the holder hereof its reasonable attorneys' fees, together with all
court costs and other expenses paid by such holder.

     Makers, endorsers, sureties, guarantors and all other parties who may
become liable for all or any part of this Note severally waive demand,
presentment, notice of dishonor, protest, notice of protest, and notice of non-
payment, and consent to: (a) any and all extensions of time for any term or
terms regarding any payment due under this Note, including partial payments or
renewals before or after maturity; (b) changes in interest rates; (c) any
substitutions or release of collateral; and (d) the addition, substitution or
release of any party liable for payment of this Note.

     No waiver of any payment or other right under this Note or any related
agreement shall operate as a waiver of any other payment or right.  All of the
holder's rights hereunder are cumulative and not alternative.  This Note shall
inure to the benefit of the successors and assigns of Bank or other holder and
shall be binding upon the successors and assigns of Makers.

     This Note has been delivered to and accepted by the Bank in the State of
Oklahoma, is to be performed in the State of Oklahoma, shall be deemed a
contract made under the laws of the State of Oklahoma, and shall be governed by,
and construed and enforced in accordance with, the laws of the State of
Oklahoma.  All actions or proceedings with respect to this Note may be
instituted in any state or federal court sitting in Tulsa County, Oklahoma, as
Bank may elect, and by execution and delivery of this Note, Makers irrevocably
and unconditionally (i) submit to the non-exclusive jurisdiction (both subject
matter and person) of each such court, and (ii) waive (a) any objection that
Makers might now or hereafter have to the laying of venue in any of such courts,
and (b) any claim that any action or proceeding brought in any of such courts
has been brought in an inconvenient forum.
<PAGE>

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

                              MATRIX SERVICE COMPANY,
                              a Delaware corporation

                              By: /s/ Michael J. Hall
                                  -----------------------------------
                              Name:  Michael J. Hall
                              Title:  Vice President

                              MATRIX SERVICE, INC.,
                              an Oklahoma corporation

                              By: /s/ Michael J. Hall
                                  -----------------------------------
                              Name:  Michael J. Hall
                              Title:  Vice President

                              MIDWEST INDUSTRIAL CONTRACTORS, INC.,
                              a Delaware corporation

                              By: /s/ Michael J. Hall
                                  -----------------------------------
                              Name:  Michael J. Hall
                              Title:  Vice President

                              MATRIX SERVICE MID-CONTINENT, INC.,
                              an Oklahoma corporation

                              By: /s/ Michael J. Hall
                                  -----------------------------------
                              Name:  Michael J. Hall
                              Title:  Vice President
<PAGE>

                              SAN LUIS TANK PIPING CONSTRUCTION CO., INC.,
                              a Delaware corporation

                              By: /s/ Michael J. Hall
                                  -----------------------------------
                              Name:  Michael J. Hall
                              Title:  Vice President

                              WEST COAST INDUSTRIAL COATINGS, INC.,
                              a California corporation

                              By: /s/ Michael J. Hall
                                  -----------------------------------
                              Name:  Michael J. Hall
                              Title:  Vice President

                              MATRIX SERVICE, INC. (CANADA),
                              an Ontario corporation

                              By: /s/ Michael J. Hall
                                  -----------------------------------
                              Name:  Michael J. Hall
                              Title:  Vice President

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