Document:

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                                                                    EXHIBIT 10.6
                                                                    ------------

                                                     October 11, 1999

PERSONAL & CONFIDENTIAL
-----------------------

Mr. Mark Skapinker
407 Glencairn Avenue
Toronto, Ontario
M5N 1V4

Dear Mark:

         This letter agreement (the "Agreement") confirms the understanding that
we have reached regarding transition arrangements in connection with your
resignation as a Chief Executive Officer of Servicesoft Technologies Inc. (the
"Company"). The purpose of this Agreement is to establish an amicable
arrangement pursuant to which you would remain available to serve the Company as
a Director and consultant. With that understanding and in exchange for the
promises of you and the Company set forth below, you and the Company agree as
follows:

         1.       EMPLOYMENT ARRANGEMENTS

         Reference is hereby made to the Employment Agreement dated as of
February 12, 1999 by and between you and the Company (the "Employment
Agreement"). The Employment Agreement shall be amended and superseded as and to
the extent expressly provided by this Agreement. The Company and you acknowledge
that you resigned as CEO of the Company effective as of the date on which Mr.
Chris Butler was first employed by the Company. From that date through October
12, 1999, you have and will continue to serve as an officer and employee of the
Company. Thereafter, you shall serve as a consultant to the Company and Chairman
of its Board of Directors as provided in Paragraph 4 below.

         2.       COMPENSATION AND BENEFITS

         The Company shall pay your current salary through October 12, 1999 (the
"Transition Date"). The Company shall also pay you: (a) for any accrued but
unused vacation days as of the Transition Date; and (b) an annual performance
bonus for calendar year 1999 as provided in the current senior management bonus
plan approved by the Company's Board of Directors in April 1999, which such
bonus shall be paid after the end

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Mr. Mark Skapinker
October 11, 1999
Page 2

of the calendar year and prorated through the Transition Date. In addition, the
Company shall pay you $15,000 for each of October and November 1999, which shall
be payable consistent with the Company's regular payroll practices.

         Finally, the Company will continue to pay on your behalf all medical
and dental insurance premiums and continue your other employee benefits through
January 31, 2000. You shall also be entitled to receive $750 per day for each
day or portion thereof that you consult with the Company pursuant to Section 5
hereof. In addition, you shall be entitled to reimbursement for all reasonable
business expenses incurred by you in connection with such services.

         3.       STOCK AND STOCK OPTIONS

         All of your currently unvested stock options will continue to vest for
so long as you serve as a Director of the Company. In addition, all of the
common shares in the Company that are beneficially owned by you and held in
escrow pursuant to Section 4.9 of the Employment Agreement are hereby released
to you or your assignees. The Company agrees to notify the escrow agent of such
release and otherwise to take such actions as you may reasonably request so as
to effect that release.

         4.       BOARD OF DIRECTORS; CONSULTANTCY

         You hereby agree to continue to serve as Chairman of the Company's
Board of Directors through the date of any sale of the Company or such earlier
date as may be reasonably requested in writing by the Board of Directors in
connection with any other major corporate development, subject to re-election by
the Company's shareholders. Commencing on the Transition Date, you also agree to
be available for consultation with the senior management of the Company on
strategic matters for up to 3 days per week through December 31, 1999. Any
consulting services required hereunder may be provided by you from Toronto,
Canada.

         5.       GENERAL RELEASES OF CLAIMS

         For good and valuable consideration, the sufficiency of which is hereby
acknowledged, you hereby irrevocably and unconditionally release, acquit and
forever discharge the Company, its predecessors, subsidiaries, successors,
affiliates, and assigns, and the directors, officers, employees, shareholders,
members and representatives of any of the foregoing, and all persons acting on
behalf or through any of the foregoing (any and all of whom or which are
hereinafter referred to as "Servicesoft"), from any and all charges, complaints,
claims, liabilities, obligations, promises, agreements, controversies, damages,
actions, causes of action, suits, rights, demands, costs, losses, debts and
expenses (including attorney's fees and costs actually incurred), of any nature
whatsoever, known or unknown (collectively, "Claims"), that you now have, own,
or hold, or claim to have, own, or hold, or that you at any time had, owned, or
held, or claimed to have had, owned, or held against Servicesoft, other than:
(a) claims arising under this Agreement (or the

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Mr. Mark Skapinker
October 11, 1999
Page 3

Employment Agreement as amended hereby); or (b) claims relating to rights of
indemnification to which you may be entitled under the Company's Certificate of
Incorporation or By-laws or otherwise.

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

         6.       NONCOMPETE AGREEMENT

         Notwithstanding anything in the Employment Agreement to the contrary,
the non-competition provisions of Section 4.4 in the Employment Agreement shall
remain in effect only through October 12, 2000 and such provisions shall not
preclude you from being a principal, shareholder and full-time employee of a
technology company incubator and venture capital fund, or serving as a director
of, or consulting with, any of their portfolio companies, so long as you are not
in breach of your other obligations under the Employment Agreement. In
furtherance of the foregoing, you acknowledge and agree that your obligations
under Sections 4.2 (non-disclosure), 4.5 (non-solicitation), 4.6 (employees),
and 4.7 (assignment of rights), remain in full force and effect without
modification or amendment, it being understood that the provisions of Sections
4.5 and 4.6 shall remain in effect only through October 12, 2000 and the
provisions of Section 4.7 relate only to the Company's property and business.

         7.       NONDISPARAGEMENT

         The Company agrees not to make any statements that disparage you and
you agree not to make any statements that disparage the Company or any of its
products, services, employees, officers or directors. Notwithstanding the
foregoing, statements made in the course of sworn testimony in legal proceedings
or other statements required by law shall not be subject to this Section 7.

         8.       TAX DEDUCTIONS AND REPORTING

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

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Mr. Mark Skapinker
October 11, 1999
Page 4

         9.       NOTICES, ACKNOWLEDGMENTS AND OTHER TERMS

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

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

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

                                   Sincerely,

                                   SERVICESOFT TECHNOLOGIES INC.

                                   By: /s/ Chris Butler
                                       -----------------------------------------
                                       Name: Chris Butler
                                       Title: Chief Executive Officer

ACCEPTED AND AGREED:

/s/ Mark Skapinker                     October 12, 1999
----------------------------           -----------------------------------------
Mark Skapinker                         Date<PAGE>   1

                                                                    EXHIBIT 10.7
                                                                    ------------

                                 August 9, 1999

Mr. Christopher Butler
83 Rice Road
Wayland, MA  01778

Dear Chris:

         On behalf of Servicesoft Technologies, Inc. (the "Company"), I am
pleased to confirm our employment offer to you for the position of President and
Chief Executive Officer. Your starting annual base salary, to be paid twice
monthly, will be $200,000. You will also be eligible for an annual cash bonus of
up to $100,000, which will be paid in quarterly installments based upon the
achievement of quarterly goals to be established by the Board of Directors or
its Compensation Committee. Your salary and cash bonus will be reviewed
annually. Additionally, you will receive stock options or a restricted stock
grant for 833,502 shares of the Company's Common Stock. The shares will have an
exercise or a purchase price equal to $1.00 per share and will vest over four
years in accordance with the attached vesting schedule.

         Should the Company be acquired at any time during your employment with
the Company, vesting for any unvested options then held by you that would
otherwise vest over the two year period following such acquisition will be
accelerated to time of acquisition. In addition, if the Company is acquired
prior to the first anniversary of your start date, you will receive prorated
vesting for that period. Finally, if your employment is terminated without cause
upon or within one year after an acquisition of the Company, all of your
unvested options will be subject to accelerated vesting. You will also be
eligible to participate in the Company's standard benefit programs, including
medical, dental, group life, disability insurance, vacation and Company-paid
holidays.

         To indicate you acceptance of this employment offer, please sign, date
and return to my attention one copy of this offer letter by 5:00 p.m. on August
9, 1999. Please note that your written acceptance also confirms that your
employment by the Company will not conflict with the terms of any employment,
non-competition, confidentiality or similar agreements that you may have with
any third parties. Also enclosed are two copies of our Confidentiality and
Non-Competition Agreement; please review and sign this Agreement and bring both
copies with you on your first day of work. Finally, please not that this letter
does not constitute an employment contract; you retain the right to terminate
your employment at any time and the Company retains a similar right.

<PAGE>   2

         I am confident that you will make a strong contribution to
Servicesoft's success and look forward to welcoming you onto our management
team. Should you have any questions, please feel free to contact me at any time.

Sincerely,

/s/ Mark Skapinker
----------------------------
Mark Skapinker
Chairman of the Board

Agreed and accepted:

/s/ Christopher Butler
----------------------------
Christopher Butler

Date: 8-9-99
      ----------------------

cc:  Robert Davoli

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                                Vesting Schedule
                                ----------------

<TABLE>
<CAPTION>
Vesting Date                                  Number of Option Shares That Vest
------------                                  ---------------------------------
<S>                                                     <C>

August 9, 2000                                         208,375.5
November 9, 2000                                        52,093.875
February 9, 2001                                        52,093.875
May 9, 2001                                             52,093.875
August 9, 2001                                          52,093.875
November 9, 2001                                        52,093.875
February 9, 2002                                        52,093.875
May 9, 2002                                             52,093.875
August 9, 2002                                          52,093.875
November 9, 2002                                        52,093.875
February 9, 2003                                        52,093.875
May 9, 2003                                             52,093.875
August 9, 2003                                          52,093.875

</TABLE>

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