Document:

<PAGE>   1
                                                                    Exhibit 10.8

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

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

                         Software Remarketing Agreement

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

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

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

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

o     Confidential Disclosure Agreement No. CDA9903540

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

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

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

Print Name JODIE SLIFKA                 Print Name RAJIV ENAND

Print Title CONTRACT MANAGER            Print Title CEO

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

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

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

                                      -1-
<PAGE>   2
1. Definitions

Capitalized terms in this Agreement have the following meanings:

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

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

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

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

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

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

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

Enhancements are changes or additions to the Products:

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

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

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

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

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

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

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

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

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

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

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

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

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

                                      -2-
<PAGE>   3

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

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

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

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

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

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

2. Territory

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

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

3. License Grants

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

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

3.3 Source Code Release:

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

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

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

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

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

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

                                      -3-
<PAGE>   4

b.) Tivoli/IBM will:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

4. Your Responsibilities

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

                                      -4-
<PAGE>   5

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

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

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

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

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

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

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

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

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

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

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

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

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

                                      -5-
<PAGE>   6

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

5. TIVOLI/IBM's Responsibilities:

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

o     identify and qualify customers for the Products

o     demonstrate the Products to customers;

o     develop sales proposals;

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

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

o     implement telemarketing or direct mail campaigns;

o     electronically publish information about your Products.

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

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

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

6. Royalties

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

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

<TABLE>
<CAPTION>
Product Type        Product Name                            Tivoli/IBM rate
------------------------------------------------------------------------------
<S>                 <C>                                     <C>
Products--Server    Knowledge Pak Desktop Suite (KPDS)      [***]
                    Knowledge Pak Network Suite (KPNS)      [***]
                    Knowledge Pak SAP R/3 Suite (KPSS)      [***]
-------------------------------------------------------------------------------
Services--Server    Annual Subscription Agreements (ASA):   [***]
                    Knowledge Pak Desktop Suite (KPDS)      [***]
                    Knowledge Pak Network Suite (KPNS)      [***]
                    Knowledge Pak SAP R/3 Suite (KPSS)      [***]
-------------------------------------------------------------------------------
</TABLE>

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

                                      -6-
<PAGE>   7

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

<TABLE>
<CAPTION>
                                                                                        Minimum
Product Type              Product Name(3)                         TIVOLI/IBM Rate(1)    TIVOLI/IBM Rate(1)
---------------------------------------------------------------------------------------------------------
<S>                      <C>                                     <C>                    <C>
Products - Server        Knowledge Pak Desktop Suite (KPDS)      32.7% of TIVOLI/IBM    $[***] per server
                         Knowledge Pak SAP R/3 Suite (KPSS)      Revenue for Products
---------------------------------------------------------------------------------------------------------
Products - Seats(2)      Knowledge Pak Desktop Suite (KPDS)      32.7% of TIVOLI/IBM    $[***] per seat
                         Knowledge Pak SAP R/3 Suite (KPSS)      Revenue for Products
---------------------------------------------------------------------------------------------------------
Outsourcer(3) -          Knowledge Pak Desktop Suite (KPDS)      32.7% of TIVOLI/IBM    $[***] per server
Server & Services        Knowledge Pak SAP R/3 Suite (KPSS)      Revenue for Products
---------------------------------------------------------------------------------------------------------
Services - Server        Annual Subscription Agreements (ASA):   60% of TIVOLI/IBM      $[***] per server
                         Knowledge Pak Desktop Suite (KPDS)      Revenue for ASA'S
                         Knowledge Pak SAP R/3 Suite (KPSS)
---------------------------------------------------------------------------------------------------------
Services - Seat(1)       Annual Subscription Agreements (ASA):   60% of TIVOLI/IBM      $[***] per seat
                         Knowledge Pak Desktop Suite (KPDS)      Revenue for ASA'S
                         Knowledge Pak SAP R/3 Suite (KPSS)
---------------------------------------------------------------------------------------------------------
</TABLE>

NOTES: (1) International uplift for Products is 0%.
       (2) Seats - Must purchase a minimum of 5 seats. Additional seats may be
           purchased in quantities of single units.
       (3) Outsourcer License is an annual license only and includes
           subscription service for one year.

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

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

<TABLE>
<CAPTION>

Product Type              Product Name(3)                         TIVOLI/IBM Rate(1)    TIVOLI/IBM Floor(1)
-----------------------------------------------------------------------------------------------------------
<S>                      <C>                                     <C>                    <C>
Products - Server        Knowledge Pak Desktop Suite (KPDS)      23% of TIVOLI/IBM      $[***] per server
                         Knowledge Pak SAP R/3 Suite (KPSS)      Revenue for Products
-----------------------------------------------------------------------------------------------------------
Products - Seats(2)      Knowledge Pak Desktop Suite (KPDS)      23% of TIVOLI/IBM      $[***] per seat
                         Knowledge Pak SAP R/3 Suite (KPSS)      Revenue for Products
-----------------------------------------------------------------------------------------------------------
Outsourcer(3) -          Knowledge Pak Desktop Suite (KPDS)      23% of TIVOLI/IBM      $[***] per server
Server & Services        Knowledge Pak SAP R/3 Suite (KPSS)      Revenue for Products
-----------------------------------------------------------------------------------------------------------
Services - Server        Annual Subscription Agreements (ASA):   60% of TIVOLI/IBM      $[***] per server
                         Knowledge Pak Desktop Suite (KPDS)      Revenue for ASA'S
                         Knowledge Pak SAP R/3 Suite (KPSS)
-----------------------------------------------------------------------------------------------------------
Services - Seat(1)       Annual Subscription Agreements (ASA):   60% of TIVOLI/IBM      $[***] per seat
                         Knowledge Pak Desktop Suite (KPDS)      Revenue for ASA'S
                         Knowledge Pak SAP R/3 Suite (KPSS)
-----------------------------------------------------------------------------------------------------------
</TABLE>

NOTES: (1) International uplift for Products is 0%.
       (2) Seats - Must purchase a minimum of 5 seats. Additional seats may be
           purchased in quantities of single units.
       (3) Outsourcer License is an annual license only and includes
           subscription service for one year.

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

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

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

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

o     marketing, demonstrations, customer evaluations and trial use;

o     Product training and education;

o     Product maintenance and support;

                                      -7-
<PAGE>   8

o     backup and archival purposes;

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

o     Basic Enhancements and Error corrections; or

o     warranty replacement copies of the Products

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

7.Warranty

You represent and warrant on an ongoing basis that

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

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

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

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

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

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

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

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

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

8. Indemnification

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

9. Limitation of Liability

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

                                      -8-
<PAGE>   9

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

10. Term and Termination

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

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

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

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

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

11. Information

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

12. Taxes

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

13. Audit

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

                                      -9-
<PAGE>   10

14. General

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

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

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

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

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

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

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

                                      -10-
<PAGE>   11

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

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

                                      -11-

<PAGE>   12

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

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

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

1. DEFINITIONS.

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

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

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

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

      "Services" means Customer Support Services provided hereunder.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

3. PRODUCT LICENSE RESTRICTIONS. You may not:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

6. LIMITED WARRANTY.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<PAGE>   16

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

A sample copy of your Outsourcer License Agreement is attached.

Tivoli SW SDMP

                                      -13-

<PAGE>   17

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

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

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

1. DEFINITIONS.

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

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

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

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

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

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

      "Services" means Customer Support Services provided hereunder.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

3. PRODUCT LICENSE RESTRICTIONS. You may not:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

6. LIMITED WARRANTY.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<PAGE>   21

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

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

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

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

<PAGE>   22

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

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

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

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

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

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

Tivoli SW SDMP

                                      -13-

<PAGE>   23

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

A sample copy of your Commercial Price List is attached.

Tivoli SW SDMP
                                      -14-
<PAGE>   24

ServiceWare Inc.

                                KNOWLEDGE - PAK

                                    Content

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

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

ASA - $180 per User

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

Perpetual License
$20,000 per server
Unlimited Users

ASA - $8,000

Discounts

Multi-year Annual Subscription Agreements
(ASAs)

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

Delivery Format Exchange

First 90 days: No charge

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

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

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

Price List

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

Pricing Notes

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

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

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

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

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

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

      (a)   regular updates which may include:

            i)    updated knowledge content to existing product titles

            ii)   new product titles

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

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

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

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

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

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

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

                                                              [ILLEGIBLE] 5/4/99

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

<PAGE>   25

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

                           Communication Coordinators

ServiceWare Incorporated

Business:

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

Legal:

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

Technical:

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

Customer Support:

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

International Sales:

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

Royalty Reporting:

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

Tivoli/IBM

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

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

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

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

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

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

Tivoli SW SDMP                        -15-                               7/27/99

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

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

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

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

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

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

                                 Yes |_| No |X|

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

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

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

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

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

                                 Yes |_| No |_|

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

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

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

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

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

Yes |_| No |X|

If YES, please describe such notice(s):

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

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

                                 Yes |X| No |_|

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

Full Intellectual Property and distribution rights.

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

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

Yes |_| No |X|

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

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

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

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

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

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

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

Tivoli SW SDMP                        -15-                               7/27/99

<PAGE>   27

               Attachment - Tivoli Development License Agreement

                                     Tivoli

                         Development License Agreement

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

DEFINITIONS

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

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

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

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

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

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

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

1. LICENSE GRANT

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

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

1.2   Under this license, Developer:

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

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

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

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

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

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

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

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

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

Tivoli SW SDMP                        -17-                               7/27/99

<PAGE>   28

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

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

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

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

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

2.    LICENSE FEES

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

3.    SUPPORT SERVICES FEES

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

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

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

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

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

4.    DEVELOPER RESPONSIBILITIES

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

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

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

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

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

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

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

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

5.    TERM AND TERMINATION

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

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

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

Tivoli SW SDMP                                                           7/27/99

                                      -18-
<PAGE>   29

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

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

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

6.    NO WARRANTY

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

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

7.    NO LIABILITY

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

8.    CONFIDENTIAL INFORMATION

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

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

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

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

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

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

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

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

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

9.    GENERAL

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

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

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

                                      -19-
<PAGE>   30

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                      -20-
<PAGE>   31

                                  ATTACHMENT A

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

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

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

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

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

<PAGE>   32

                                  Attachment B
                               Licensed Locations

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

Loocation 1

333 Allegheny Avenue
Oakmont, PA 15139

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

<PAGE>   33

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

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

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

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

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

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

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

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

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

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

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

-     (i) FAR 52.226-26, Equal Opportunity

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

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

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

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

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

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

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

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

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

Attachment - Confidential Disclosure Agreement CDA #9903640

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

1.0 Disclosure

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

2.0 Exceptions

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

3.0 Disclaimers

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

4.0 General

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

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

<PAGE>   35

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

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

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

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

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

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

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

<PAGE>   36

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

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

Initial disclosure date: Mutual date of execution

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

Non-confidential description of Information to be disclosed:

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

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

Additional of different terms and conditions (if any):

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

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

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

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

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

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

Version 2.0                         Page 26                Agreement # TBBXXX-OO
                                                                  August 2, 1999

<PAGE>   37
                                                       Tivoli Systems Inc.

                                                       Austin, TX 78759
                                                       USA
                                                       Phone 512 485 8000
                                                       www.tivoli.com

July 6, 2000

ServiceWare, Inc.
333 Allegheny Avenue
Oakmont, PA 15139

ATTENTION: Louis A. Venezia

SUBJECT: License Agreement Addendum Letter for Contract/Supplement 4999TV0055
("Agreement")
           Knowledge Pak Desktop Suite & Knowledge Pak SAP R/3 Suite for General
           Distribution currently used with Service Desk

Dear Mr. Venezia:

This letter serves as Amendment No. One to the above subject Agreement which the
parties thereto do mutually agree to amend as follows:

Section 10 - Term and Termination
1. Subsection 10.1 Term, shall be extended through March 31, 2001.

The parties acknowledge that they have read this Amendment, understand it, and
agree to be bound by its terms and conditions. Further, with the exception of
the Interim Negotiation Letter dated July 6, 2000, they agree that this
Amendment and the subject Agreement are the complete and exclusive statement of
the agreement between the parties, superseding all proposals of other prior
agreement, oral or written, and all other communications between the parties
relating to this subject.

Please have your authorized representative indicate acceptance thereof by
signing this Amendment and returning one copy to the attention of Jim Wade at
the address below or to fax number (512) 436-1666.

Agreed To:

ServiceWare, Inc.:                           Tivoli Systems, Inc.

By: /s/ Louis Venezia                        By: /s/ James D. Wade
   --------------------------------             -------------------------------
      Authorized Signature                           Authorized Signature

Name: Louis Venezia                          Name: James D. Wade

Date: 7/6/00                                 Date: 7/6/00<PAGE>   1

                                                                     EXHIBIT 4.5

================================================================================

                            SERIES 2000-A SUPPLEMENT

                                      Among

                          U.S. AUTO RECEIVABLES COMPANY

                        CHRYSLER FINANCIAL COMPANY L.L.C.

                                       and

                        THE BANK OF NEW YORK, as Trustee

                            Dated as of April 4, 2000

================================================================================

                                       1

<PAGE>   2

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                                Page
                                                                                                                ----
<S>          <C>                                                                                                <C>
                                                    ARTICLE I

                                    Creation of the Series 2000-A Certificates

SECTION 1.01. Designation                                                                                         1

                                                    ARTICLE II

                                                    Definitions
SECTION 2.01. Definitions                                                                                         1

                                                    ARTICLE III

                                                   Servicing Fee

SECTION 3.01. Servicing Compensation.                                                                            16

                                                    ARTICLE IV

             Rights of Series 2000-A Certificateholders and Allocation and Application of Collections

SECTION 4.01. Allocations; Payments to Seller; Excess Principal Collections and
              Unallocated Principal Collections.                                                                 17
SECTION 4.02. Monthly Interest.                                                                                  19
SECTION 4.03. Determination of Monthly Principal.                                                                20
SECTION 4.04. Establishment of Reserve Fund and Funding Accounts.                                                20
SECTION 4.05. Deficiency Amount.                                                                                 22
SECTION 4.06. Application of Investor Non-Principal Collections, Investment Proceeds
              and Available Investor Principal Collections.                                                      23
SECTION 4.07. Distributions to Series 2000-A Certificateholders.                                                 24
SECTION 4.08. Application of Reserve Fund and Available Subordinated Amount.                                     25
SECTION 4.09. Investor Charge-Offs.                                                                              27
SECTION 4.10. Excess Servicing.                                                                                  27
SECTION 4.11. Excess Principal Collections.                                                                      27
SECTION 4.12. Excess Funding Account.                                                                            28
SECTION 4.13. Accumulation Period Length; Accumulation Period Commencement
              Date.                                                                                              29

</TABLE>

                                       2

<PAGE>   3
<TABLE>

<S>          <C>                                                                                               <C>
                                                     ARTICLE V

                           Distributions and Reports to Series 2000-A Certificateholders

SECTION 5.01. Distributions.                                                                                     29
SECTION 5.02. Reports and Statements to Series 2000-A Certificateholders.                                        30

                                                    ARTICLE VI

                                                Amortization Events

SECTION 6.01. Additional Amortization Events.                                                                    30

                                                    ARTICLE VII

                                                Optional Repurchase

SECTION 7.01. Optional Repurchase.                                                                               32

                                                   ARTICLE VIII

                                                Final Distributions

SECTION 8.01. Sale of Certificateholders' Interest Pursuant to Section 2.                                        33
SECTION 8.02. Distribution of Proceeds of Sale, Disposition or Liquidation of the
              Receivables Pursuant to Section 9.                                                                 34

                                                    ARTICLE IX

                                             Miscellaneous Provisions

SECTION 9.01. Certain Permitted Actions, Amendments to the Agreement; Additional
              Covenants                                                                                          35
SECTION 9.02. Ratification of Agreement.                                                                         39
SECTION 9.03. Counterparts.                                                                                      39
SECTION 9.04. Dealer Concentrations.                                                                             39
SECTION 9.05. The Certificates.                                                                                  39
SECTION 9.06. GOVERNING LAW.                                                                                     39

EXHIBIT A     Form of Series 2000-A Certificate.                                                                A-1

</TABLE>

                                       3

<PAGE>   4

                                                     SERIES 2000-A SUPPLEMENT
                                            dated as of April 4, 2000 (the
                                            "Series Supplement"), among U.S.
                                            AUTO RECEIVABLES COMPANY, a Delaware
                                            corporation, as Seller, CHRYSLER
                                            FINANCIAL COMPANY L.L.C., a Michigan
                                            limited liability company, as
                                            Servicer, and THE BANK OF NEW YORK,
                                            a New York banking corporation, as
                                            Trustee.

         Pursuant to the Pooling and Servicing Agreement dated as of May 31,
1991, as assigned by Chrysler Auto Receivables Company ("CARCO") to the Seller
on August 8, 1991 (as assigned, amended and supplemented, the "Agreement"),
among the Seller, Chrysler Credit Corporation, which has been succeeded by
Chrysler Financial Company L.L.C., as Servicer, and Manufacturer and Traders
Trust Company, which has been succeeded by The Bank of New York, as Trustee,
CARCO has created and assigned to the Seller the CARCO Auto Loan Master Trust
(the "Trust"). Section 6.03 of the Agreement provides that the Seller may from
time to time direct the Trustee to issue, on behalf of the Trust, one or more
new Series of Investor Certificates representing fractional undivided interests
in the Trust. The Principal Terms of any new Series are to be set forth in a
Supplement to the Agreement.

         Pursuant to this Series Supplement, the Seller and the Trustee shall
create a new Series of Investor Certificates and specify the Principal Terms
thereof.

                                   ARTICLE I

                   Creation of the Series 2000-A Certificates

         SECTION 1.1. Designation.

              (a) There is hereby created a Series of Investor Certificates to
be issued pursuant to the Agreement and this Series Supplement to be known as
the "Floating Rate Auto Loan Asset Backed Certificates, Series 2000-A".

              (b) In the event that any term or provision contained herein shall
conflict with or be inconsistent with any term or provision contained in the
Agreement, the terms and provisions of this Series Supplement shall govern.

                                   ARTICLE II

                                   Definitions

         SECTION 2.1. Definitions.

<PAGE>   5

              (a) Whenever used in this Series Supplement the following words
and phrases shall have the following meanings.

         "Accumulation Period" shall mean, unless an Early Amortization Event
shall have occurred prior thereto (other than an Early Amortization Event which
has resulted in an Early Amortization Period which has ended as described in
clause (c) or clause (d) of the definition thereof in this Series Supplement),
the period commencing on the Accumulation Period Commencement Date and ending
upon the first to occur of (a) the commencement of an Early Amortization Period
(other than an Early Amortization Period which has ended as described in clause
(c) or clause (d) of the definition thereof in this Series Supplement) and (b)
the payment in full to Series 2000-A Certificateholders of the outstanding
principal amount of the Series 2000-A Certificates.

         "Accumulation Period Commencement Date" shall mean the first day of the
Collection Period upon which the number of full Collection Periods remaining
until the Series 2000-A Expected Payment Date first equals the Accumulation
Period Length; provided, however, that, if at any time after the September 2002
Distribution Date, any other outstanding Series (other than any Excluded Series)
shall have entered into a reinvestment period or an early amortization period,
the Accumulation Period Commencement Date shall be the earlier of (i) the date
that such outstanding Series shall have entered into its reinvestment period or
early amortization period and (ii) the Accumulation Period Commencement Date as
previously determined. If the Accumulation Period Length is one month, two
months, three months, four months or five months, the Accumulation Period
Commencement Date shall mean the first day of the February 2003 Collection
Period, the January 2003 Collection Period, the December 2002 Collection Period,
the November 2002 Collection Period or the October 2002 Collection Period,
respectively.

         "Accumulation Period Length" shall mean a period which is one, two,
three, four or five month(s) long and is calculated as of the September 2002
Distribution Date and each Distribution Date thereafter that occurs prior to the
Accumulation Period Commencement Date, as the lesser of (i) the number of full
Collection Periods between such Distribution Date and the Series 2000-A Expected
Payment Date and (ii) the product, rounded upwards to the nearest integer not
greater than five, of (a) one divided by the lowest Monthly Payment Rate during
the last 12 months and (b) a fraction, the numerator of which is the sum of (i)
the Invested Amount as of such Distribution Date (after giving effect to all
changes therein on such date) and (ii) the invested amounts of all other Series
(other than any Excluded Series) currently in their amortization or accumulation
periods or scheduled to be in their amortization or accumulation periods by the
Series 2000-A Expected Payment Date as of such Distribution Date (after giving
effect to all changes therein on such date) and the denominator of which is the
sum of the Invested Amount as of such Distribution Date (after giving effect to
all changes therein on such date) and the invested amounts as of such
Distribution Date (after giving effect to all changes therein on such date) of
all other outstanding Series (other than any Excluded Series) which are
scheduled to be outstanding on the Series 2000-A Expected Payment Date.

         "Additional Carry-over Amount" shall have the meaning specified in
Section 4.02 (b).

         "Additional Interest" shall have the meaning specified in Section
4.02(a).

                                       5

<PAGE>   6

         "Adjusted Invested Amount" shall mean, with respect to Series 2000-A
for any Collection Period, an amount equal to the sum of (a) the Initial
Invested Amount of the Series 2000-A Certificates on the Determination Date
occurring in such Collection Period, minus the excess, if any, of the aggregate
amount of Investor Charge-Offs for all Distribution Dates preceding such date
over the aggregate amount of any reimbursements of Investor Charge-Offs for all
Distribution Dates preceding such date and (b) the applicable Available
Subordinated Amount, if any, on the Determination Date occurring in such
Collection Period (in each case, after giving effect to the allocations,
distributions, withdrawals and deposits to be made on the Distribution Date
following the Determination Date during the Collection Period in which such date
occurs).

         "Allocable Defaulted Amount" shall mean, with respect to any Collection
Period, the product of (a) the Series 2000-A Allocation Percentage with respect
to such Collection Period and (b) the Defaulted Amount with respect to such
Collection Period.

         "Allocable Miscellaneous Payments" shall mean, with respect to any
Distribution Date, the product of (a) the Series 2000-A Allocation Percentage
for the related Collection Period and (b) Miscellaneous Payments with respect to
the related Collection Period.

         "Allocable Non-Principal Collections" shall mean, with respect to any
Deposit Date, the product of (a) the Series 2000-A Allocation Percentage for the
related Collection Period and (b) the aggregate amount of Collections of
Non-Principal Receivables relating to such Deposit Date.

         "Allocable Principal Collections" shall mean, with respect to any
Deposit Date, the product of (a) the Series 2000-A Allocation Percentage for the
related Collection Period and (b) the aggregate amount of Collections in respect
of Principal Receivables relating to such Deposit Date.

         "Assets Receivables Rate" shall mean, with respect to any Interest
Period, an amount equal to the product of (a) the quotient obtained by dividing
(i) 360 by (ii) the actual number of days elapsed in such Interest Period and
(b) a percentage, expressed as a fraction, (i) the numerator of which is the sum
of (A) Investor Non-Principal Collections for the Collection Period immediately
preceding the last day of such Interest Period (which, for the purposes of this
definition only, shall be determined based on the interest amounts billed to the
Dealers which are due during such Collection Period) less, except to the extent
the Monthly Servicing Fee has been waived by the Servicer, the
Certificateholders Monthly Servicing Fee with respect to such immediately
preceding Collection Period and (B) the Investment Proceeds to be applied on the
Distribution Date related to such Interest Period and (ii) the denominator of
which is the sum of (A) the product of (I) the Series 2000-A Floating Allocation
Percentage, (II) the Series 2000-A Series Allocation Percentage and (III) the
average Pool Balance (after giving effect to charge-offs) for such immediately
preceding Collection Period, (B) the principal balance on deposit in the Excess
Funding Account on the first day of such Interest Period (after giving effect to
all deposits to and withdrawals therefrom on such first day) and (C) the
principal balance on deposit in the Principal Funding Account on the first day
of such Interest Period (after giving effect to all deposits to and withdrawals
therefrom on such first day).

         "Automatic Additional Accounts" shall have the meaning specified in
Section 9.01(e).

                                       6

<PAGE>   7

         "Automatic Removal Accounts" shall have the meaning specified in
Section 9.01(c).

         "Automatic Removal Date" shall have the meaning specified in Section
9.01(c).

         "Available Investor Principal Collections" shall mean, with respect to
any Distribution Date, the sum of (a) an amount equal to Investor Principal
Collections for such Distribution Date, (b) Allocable Miscellaneous Payments
with respect to such Distribution Date, (c) Series 2000-A Excess Principal
Collections on deposit in the Collection Account for such Distribution Date and
(d) on the Termination Date, any funds in the Reserve Fund after giving effect
to Section 4.08, except for Section 4.08(d).

         "Available Seller's Collections" shall mean, with respect to any
Deposit Date, the sum of (a) the Available Seller's Non-Principal Collections
for such Deposit Date and (b) the Available Seller's Principal Collections for
such Deposit Date; provided, however, that the Available Seller's Collections
shall be zero for any Collection Period with respect to which the Available
Subordinated Amount is zero on the Determination Date immediately following the
end of such Collection Period.

         "Available Seller's Non-Principal Collections" shall mean, with respect
to any Deposit Date, an amount equal to the result obtained by multiplying (a)
the excess of (i) the Seller's Percentage for the related Collection Period over
(ii) the Excess Seller's Percentage for such Collection Period by (b) Allocable
Non-Principal Collections for such Deposit Date.

         "Available Seller's Principal Collections" shall mean, with respect to
any Deposit Date, an amount equal to the result obtained by multiplying (a) the
excess of (i) the Seller's Percentage for the related Collection Period over
(ii) the Excess Seller's Percentage for such Collection Period by (b) Allocable
Principal Collections for such Deposit Date.

         "Available Subordinated Amount" for the first Determination Date shall
mean an amount equal to the Required Subordinated Amount. The Available
Subordinated Amount for any subsequent Determination Date shall mean an amount
equal to (a) the lesser of (i) the Available Subordinated Amount for the
preceding Determination Date, minus (A) the Required Subordination Draw Amount
with respect to the preceding Distribution Date to the extent provided in
Section 4.08, minus (B) withdrawals from the Reserve Fund pursuant to Section
4.08 on the preceding Distribution Date to make distributions pursuant to
Section 4.06(a)(iv) (but excluding any other withdrawals from the Reserve Fund),
plus (C) the portion of Excess Servicing for such preceding Distribution Date
distributed to the Seller pursuant to Section 4.10(c), plus (D) the excess, if
any, of the Required Subordinated Amount for such Determination Date over the
Required Subordinated Amount for the immediately preceding Distribution Date due
to an increase in the Subordination Factor and (ii) the product of the
fractional equivalent of the Subordinated Percentage and the Invested Amount on
such Determination Date, minus (b) in the case of clause (a)(i), the Incremental
Subordinated Amount for such preceding Determination Date, plus (c) the
Incremental Subordinated Amount for the current Determination Date, plus (d) the
Subordinated Percentage of funds to be withdrawn from the Excess Funding Account
on the succeeding Distribution Date and paid to the Seller or allocated to one
or more Series; provided, however, that the Available Subordinated Amount may be
increased on any Determination Date

                                       7

<PAGE>   8

by the Seller, in its sole discretion, by notice to the Trustee on or before
such Determination Date, so long as the cumulative amount of such increases does
not exceed the lesser of (v) $8,333,333.33 or (w) 1.11% of the Invested Amount
on such date; provided, however, (x) that, from and after the commencement of
the Accumulation Period until the Series 2000-A Certificates are paid in full
and (y) from and after the commencement of any Early Amortization Period (other
than an Early Amortization Period which has ended as described in clause (c) or
clause (d) of the definition thereof in this Series Supplement) shall have
commenced, the Available Subordinated Amount shall be calculated based on the
Invested Amount, as of the close of business on the day preceding the
Accumulation Period or Early Amortization Period, as applicable.

         "Calculation Agent" shall mean the Trustee.

         "Carry-over Amount" shall mean, for any Distribution Date with respect
to which the related Certificate Rate is calculated on the basis of the Assets
Receivables Rate, the excess of (a) Monthly Interest for such Distribution Date
determined as if such Certificate Rate were calculated on the basis of the LIBOR
formula set forth in clause (a) of the definition of Certificate Rate over (b)
the actual Monthly Interest for such Distribution Date.

         "Carry-over Shortfall" shall have the meaning specified in Section
4.02(b).

         "Certificate Rate" shall mean, with respect to any Interest Period, the
lesser of (a) LIBOR for such Interest Period, plus 0.10% and (b) the Assets
Receivables Rate for the immediately preceding Interest Period.

         "Closing Date" shall mean April 4, 2000.

         "Controlled Accumulation Amount" shall mean an amount equal to the
Invested Amount as of the September 2002 Distribution Date (after giving effect
to any changes therein on such date), divided by the Accumulation Period Length.

         "Controlled Deposit Amount" shall mean, with respect to any
Distribution Date, the excess, if any, of (a) the sum of (i) the product of the
Controlled Accumulation Amount and the number of Distribution Dates from and
including the first Distribution Date with respect to the Accumulation Period
through and including such Distribution Date (but not in excess of the
Accumulation Period Length) and (ii) the amount on deposit in the Excess Funding
Account as of the September 2002 Distribution Date (after giving effect to any
withdrawals from or deposits to such account on such date (other than the
transfer to the Principal Funding Account of the amounts on deposit therein on
such date)), over (b) the sum of amounts on deposit in the Excess Funding
Account and the Principal Funding Account, in each case before giving effect to
any withdrawals from or deposits to such accounts on such Distribution Date.

         "Deficiency Amount" shall have the meaning specified in Section 4.05.

         "Early Amortization Event" shall mean any Early Amortization Event
specified in Section 9.01 of the Agreement, together with any additional Early
Amortization Event specified in Section 6.01 of this Series Supplement.

                                       8

<PAGE>   9

         "Early Amortization Period" shall mean a period beginning on the day on
which an Early Amortization Event specified in Section 9.01 of the Agreement or
Section 6.01 of this Series Supplement shall have occurred with respect to
Series 2000-A and terminating on the earliest of (a) the payment in full of the
outstanding principal balance of the Series 2000-A Certificates; (b) the
Termination Date; (c) if such Early Amortization Period has resulted from the
occurrence of an Early Amortization Event described in Section 9.01(a) of the
Agreement, the end of the first Collection Period during which an Early
Amortization Event would no longer be deemed to exist pursuant to such Section
9.01(a), so long as no other Early Amortization Event (other than an Early
Amortization Event which has resulted in an Early Amortization Period which has
terminated as described in this clause (c) or clause (d) below) shall have
occurred and the scheduled termination of the Revolving Period shall not have
occurred; and (d) if such Early Amortization Period has resulted from the
occurrence of an Early Amortization Event described in Sections 9.01(a), (f) or
(g) of the Agreement or Section 6.01, other than Section 6.01(f) or (g), of this
Series Supplement, the end of the first Collection Period after which (i) the
Trustee has received written confirmation from Standard & Poor's that
termination of such Early Amortization Period will not result in the downgrading
or withdrawal of such entities' ratings of the Series 2000-A Certificates, and
(ii) Series 2000-A Certificateholders holding Series 2000-A Certificates
evidencing more than 50% of the aggregate unpaid principal amount of the Series
2000-A Certificates shall have consented to the termination of such Early
Amortization Period; provided that (x) no other Early Amortization Event (other
than an Early Amortization Event which has resulted in an Early Amortization
Period which has terminated as described in this clause (d) or clause (c) above)
shall have occurred, and (y) the scheduled termination of the Revolving Period
shall not have occurred.

         "Eligible Investments" shall mean (a) book-entry securities, negotiable
instruments or securities represented by instruments in bearer or registered
form having original or remaining maturities of 30 days or less (unless each
Rating Agency confirms in writing that a longer maturity will not result in the
downgrade or withdrawal of such Rating Agency's rating of the Series 2000-A
Certificates), but in no event occurring later than the Distribution Date next
succeeding the Trustee's acquisition thereof (unless each Rating Agency confirms
in writing that a longer maturity will not result in the downgrade or withdrawal
of such Rating Agency's rating of the Series 2000-A Certificates), which
evidence:

               (i)  direct obligations of, and obligations fully guaranteed as
                    to timely payment by, the United States of America;

               (ii) demand deposits, time deposits or certificates of deposit of
                    any depository institution or trust company incorporated
                    under the laws of the United States of America or any state
                    thereof (or any domestic branch of a foreign bank) and
                    subject to supervision and examination by Federal or state
                    banking or depository institution authorities; provided,
                    however, that at the time of the Trust's investment or
                    contractual commitment to invest therein, the commercial
                    paper or other short-term unsecured debt obligations (other
                    than such obligations the rating of which is based on the
                    credit of a person or entity other than such depository
                    institution or trust company) thereof shall have a credit
                    rating from each of the Rating Agencies in the highest

                                       9

<PAGE>   10

                     investment category granted thereby;

              (iii)  commercial paper having, at the time of the Trust's
                     investment or contractual commitment to invest therein, a
                     rating from each of the Rating Agencies in the highest
                     investment category granted thereby;

              (iv)   investments in money market funds having a rating from each
                     of the Rating Agencies in the highest investment category
                     granted thereby or otherwise approved in writing thereby;

              (v)    bankers' acceptances issued by any depository institution
                     or trust company referred to in clause (ii) above;

              (vi)   repurchase obligations with respect to any security that is
                     a direct obligation of, or fully guaranteed by, the United
                     States of America or any agency or instrumentality thereof
                     the obligations of which are backed by the full faith and
                     credit of the United States of America, in either case
                     entered into with a depository institution or trust company
                     (acting as principal) described in clause (ii); and

              (vii)  repurchase obligations with respect to any security or
                     whole loan entered into with (i) a depository institution
                     or trust company (acting as principal) described in clause
                     (ii) above (except that the rating referred to in the
                     proviso in such clause (ii) shall be A-1 or higher in the
                     case of Standard & Poor's) (such depository institution or
                     trust company being referred to in this definition as a
                     "Financial Institution"), (ii) a broker/dealer (acting as
                     principal) registered as a broker or dealer under Section
                     15 of the Securities Exchange Act of 1934, as amended (a
                     "Broker/Dealer"), the unsecured short-term debt obligations
                     of which are rated P-1 by Moody's and at least A-1 by
                     Standard & Poor's at the time of entering into such
                     repurchase obligation (a "Rated Broker/Dealer"), (iii) an
                     unrated Broker/Dealer (an "Unrated Broker/Dealer"), acting
                     as principal, that is a wholly owned subsidiary of a
                     nonbank holding company the unsecured short-term debt
                     obligations of which are rated P-1 by Moody's and at least
                     A-1 by Standard & Poor's at the time of entering into such
                     repurchase obligation (a "Rated Holding Company") or (iv)
                     an unrated subsidiary (a "Guaranteed Counterparty"), acting
                     as principal, that is a wholly owned subsidiary of a direct
                     or indirect parent Rated Holding Company, which guarantees
                     such subsidiary's obligations under such repurchase
                     agreement; provided that the following conditions are
                     satisfied:

              (A)    the aggregate amount of funds invested in repurchase
              obligations of a Financial Institution, a Rated Broker/Dealer, an
              Unrated Broker/Dealer or Guaranteed Counterparty in respect of
              which the Standard & Poor's unsecured short-term ratings are A-1
              (in the case of an Unrated Broker/Dealer or Guaranteed
              Counterparty, such rating being that of the related Rated Holding
              Company) shall

                                       10

<PAGE>   11

not exceed 20% of the sum of the then outstanding principal balance of Series
2000-A Certificates (there being no limit on the amount of funds that may be
invested in repurchase obligations in respect of which such Standard & Poor's
rating is A-l+ (in the case of an Unrated Broker/Dealer or Guaranteed
Counterparty, such rating being that of the related Rated Holding Company));

              (B)    in the case of any Series 2000-A Account (other than the
              Collection Account and the Yield Supplement Account), the rating
              from Standard & Poor's in respect of the unsecured short-term
              debt obligations of the Financial Institution, Rated
              Broker/Dealer, Unrated Broker/Dealer or Guaranteed Counterparty
              (in the case of an Unrated Broker/Dealer or Guaranteed
              Counterparty, such rating being that of the related Rated Holding
              Company) shall be A-1+;

              (C)    the repurchase obligation must mature within 30 days of the
              date on which the Trustee enters into such repurchase obligation;

              (D)    the repurchase obligation shall not be subordinated to any
              other obligation of the related Financial Institution, Rated
              Broker/Dealer Unrated Broker/Dealer or Guaranteed Counterparty;

              (E)    the collateral subject to the repurchase obligation is
              held, in the appropriate form, by a custodial bank on behalf of
              the Trustee;

              (F)    the repurchase obligation shall require that the collateral
              subject thereto shall be marked to market daily;

              (G)    in the case of a repurchase obligation of a Guaranteed
              Counterparty, the following conditions shall also be satisfied:

              (i)    the Trustee shall have received an opinion of counsel
                     (which may be in-house counsel) to the effect that the
                     guarantee of the related Rated Holding Company is a legal,
                     valid and binding agreement of the Rated Holding Company,
                     enforceable in accordance with its terms, subject as to
                     enforceability to bankruptcy, insolvency, reorganization
                     and moratorium or other similar laws affecting creditors'
                     rights generally and to general equitable principles;

              (ii)   the Trustee shall have received (x) an incumbency
                     certificate for the signer of such guarantee, certified by
                     an officer of such Rated Holding Company, and (y) a
                     resolution, certified by an officer of the Rated Holding
                     Company, of the board of directors (or applicable committee
                     thereof) of the Rated Holding Company authorizing the
                     execution, delivery and performance of such guarantee by
                     the Rated Holding Company;

              (iii)  the only conditions to the obligation of such Rated Holding
                     Company to pay on behalf of the Guaranteed Counterparty
                     shall be that the Guaranteed Counterparty shall not have
                     paid under such repurchase obligation when required (it
                     being understood that no notice to, demand on or other
                     action

                                       11

<PAGE>   12

                     in respect of the Guaranteed Counterparty is necessary) and
                     that the Trustee shall make a demand on the Rated Holding
                     Company to make the payment due under such guarantee;

              (iv)   the guarantee of the Rated Holding Company shall be
                     irrevocable with respect to such repurchase obligation and
                     shall not be subordinate to other obligations of the Rated
                     Holding Company; and

              (v)    each of Standard & Poor's and Moody's has confirmed in
                     writing to the Trustee that it has reviewed the form of the
                     guarantee of the Rated Holding Company and has determined
                     that the Trust's investment in such repurchase obligation,
                     taking into account the issuance of such guarantee, will
                     not result in the downgrade or withdrawal of the ratings
                     assigned to the Series 2000-A Certificates; and

              (H)    the repurchase obligations shall require that the
              repurchase obligation be over-collateralized and shall provide
              that, upon any failure to maintain such overcollateralization, the
              repurchase obligation shall become due and payable, and unless the
              repurchase obligation is satisfied immediately, the collateral
              subject to the repurchase agreement shall be liquidated and the
              proceeds applied to satisfy the unsatisfied portion of the
              repurchase obligation; and

         (b)  any other investment consisting of a financial asset that by
its terms converts to cash within a finite period of time; provided that each
Rating Agency shall have notified the Seller, the Servicer and the Trustee that
the Trust's investment therein will not result in a reduction or withdrawal of
the rating of any outstanding class or Series with respect to which it is a
Rating Agency.

         "Excess Funding Account" shall have the meaning specified in Section
4.04(d)(i).

         "Excess Reserve Fund Required Amount" shall mean, for any Distribution
Date with respect to an Early Amortization Period, an amount equal to the
greater of (a) 5% of the initial principal balance of the Series 2000-A
Certificates and (b) the excess of (i) the sum of (x) the Available Subordinated
Amount on the preceding Determination Date (after giving effect to the
allocations, distributions, withdrawals and deposits to be made on such
Distribution Date) and (y) an amount equal to (A) the excess of the Required
Participation Percentage over 100%, multiplied by (B) the outstanding principal
balance of the Series 2000-A Certificates on such Distribution Date (after
giving effect to any changes therein on such Distribution Date) over (ii) the
excess of (x) the Series 2000-A Allocation Percentage of the Pool Balance on the
last day of the immediately preceding Collection Period over (y) the Invested
Amount on such Distribution Date (after giving effect to changes therein on such
Distribution Date); provided that the Excess Reserve Fund Required Amount shall
not exceed such Available Subordinated Amount.

         "Excess Seller's Percentage" shall mean, with respect to any Collection
Period, a percentage (which percentage shall never be less than 0% nor more than
100%) equal to (a) 100% minus, when used with respect to Non-Principal
Receivables, Defaulted Receivables and

                                       12

<PAGE>   13

Principal Receivables during any Nonprincipal Period, the sum of (i) the
Floating Allocation Percentage with respect to such Collection Period and (ii)
the percentage equivalent of a fraction, the numerator of which is the Available
Subordinated Amount as of the Determination Date occurring in such Collection
Period (after giving effect to the allocations, distributions, withdrawals and
deposits to be made on the Distribution Date immediately following such
Determination Date) and the denominator of which is the product of (x) the Pool
Balance as of the last day of such immediately preceding Collection Period and
(y) the Series 2000-A Allocation Percentage for the Collection Period in respect
of which the Excess Seller's Percentage is being calculated or (b) 100% minus,
when used with respect to Principal Receivables during the Accumulation Period
and an Early Amortization Period, the sum of (i) the Principal Allocation
Percentage with respect to such Collection Period and (ii) the percentage
equivalent of a fraction, the numerator of which is the Available Subordinated
Amount as of the Determination Date occurring in such Collection Period (after
giving effect to the allocations, distributions, withdrawals and deposits to be
made on the Distribution Date immediately following such Determination Date) and
the denominator of which is the product of (x) the Pool Balance as of the last
day of such immediately preceding Collection Period and (y) the Series 2000-A
Allocation Percentage for the Collection Period in respect of which the Excess
Seller's Percentage is being calculated.

         "Excess Servicing" shall mean, with respect to any Distribution Date,
the amount, if any, specified pursuant to Section 4.06(a)(vii) with respect to
such Distribution Date.

         "Floating Allocation Percentage" shall mean, with respect to any
Collection Period, the percentage equivalent (which percentage shall never
exceed 100%) of a fraction, the numerator of which is the Invested Amount as of
the last day of the immediately preceding Collection Period and the denominator
of which is the product of (a) the Pool Balance as of such last day and (b) the
Series 2000-A Allocation Percentage for the Collection Period in respect of
which the Floating Allocation Percentage is being calculated; provided, however,
that, with respect to the April 2000 Collection Period, the Floating Allocation
Percentage shall mean the percentage equivalent of a fraction, the numerator of
which is the Initial Invested Amount on the Closing Date and the denominator of
which is the product of (x) the Pool Balance on the Series Cut-Off Date and (y)
the Series 2000-A Allocation Percentage with respect to the Series Cut-Off Date.

         "Incremental Subordinated Amount" shall mean, with respect to any
Determination Date, the result obtained by multiplying (a) a fraction, the
numerator of which is the sum of (i) (A) the Invested Amount on the last day of
the immediately preceding Collection Period or (B) with respect to the first
Determination Date, the Invested Amount on the Closing Date and (ii) (A) the
Available Subordinated Amount for such Determination Date (calculated without
adding the Incremental Subordinated Amount for such Distribution Date as
described in clause (c) of the definition thereof) or (B) with respect to the
first Determination Date, the product of the Invested Amount on the Closing Date
and the Subordinated Percentage and the denominator of which is the Pool Balance
on such last day by (b) the Trust Incremental Subordinated Amount.

         "Initial Distribution Date" shall mean April 17, 2000.

         "Initial Invested Amount" means the portion of the initial principal
amount of the Series

                                       13

<PAGE>   14

2000-A Certificates which is invested in Principal Receivables on the Series
Issuance Date, which is $750,000,000, plus (x) the amount of any withdrawals
from the Excess Funding Account in connection with the purchase of an additional
interest in Principal Receivables since the Series Issuance Date, minus (y) the
amount of any additions to the Excess Funding Account in connection with a
reduction in the Principal Receivables in the Trust or an increase in the
Subordination Factor since the Series Issuance Date.

         "Initial Principal Amount" shall mean $750,000,000.

         "Initial Reserve Fund Deposit Amount" shall mean $2,625,000.

         "Initial Yield Supplement Account Deposit Amount" shall mean
         $3,000,000.

         "Interest Period" shall mean, with respect to any Distribution Date,
the period from and including the Distribution Date immediately preceding such
Distribution Date to but excluding such Distribution Date (or, in the case of
the Initial Distribution Date, the period from and including the Closing Date to
but excluding the Initial Distribution Date). Interest will be calculated on the
basis of the actual number of days in each Interest Period divided by 360 days.

         "Interest Shortfall" shall have the meaning specified in Section
4.02(a).

         "Invested Amount" means for any date an amount equal to the Initial
Invested Amount, minus the amount, without duplication, of principal payments
(except principal payments made from the Excess Funding Account) made to Series
2000-A Certificateholders or deposited to the Principal Funding Account prior to
such date since the Series Issuance Date, minus the excess, if any, of the
aggregate amount of Investor Charge-Offs for all Distribution Dates preceding
such date, over the aggregate amount of any reimbursements of Investor
Charge-Offs for all Distribution Dates preceding such date.

         "Investment Proceeds" shall mean, with respect to any Determination
Date, all interest and other investment earnings accumulated for the immediately
preceding Collection Period (net of losses and investment expenses) on funds on
deposit in the Series 2000-A Accounts, together with an amount equal to the
Series 2000-A Allocation Percentage of the interest and other investment
earnings on funds held in the Collection Account credited to the Collection
Account pursuant to Section 4.02 of the Agreement.

         "Investor Charge-Offs" shall have the meaning specified in Section
4.09.

         "Investor Default Amount" shall mean, with respect to any Distribution
Date, an amount equal to the product of (a) the Allocable Defaulted Amount for
the related Collection Period and (b) the Floating Allocation Percentage for the
related Collection Period.

         "Investor Non-Principal Collections" shall mean, with respect to any
Distribution Date, an amount equal to the product of (a) the Floating Allocation
Percentage for the related Collection Period and (b) Allocable Non-Principal
Collections deposited in the Collection Account for the related Collection
Period.

                                       14

<PAGE>   15

         "Investor Principal Collections" shall mean, with respect to any
Distribution Date, the sum of (a) the product of (i) the Floating Allocation
Percentage, with respect to any Nonprincipal Period, or the Principal Allocation
Percentage, with respect to the Accumulation Period or an Early Amortization
Period for the related Collection Period (or any partial Collection Period which
occurs as the first Collection Period during an Early Amortization Period) and
(ii) Allocable Principal Collections deposited in the Collection Account for the
related Collection Period (or any partial Collection Period which occurs as the
first Collection Period during an Early Amortization Period) and (b) the amount,
if any, of Collections of Non-Principal Receivables, Investment Proceeds, Excess
Servicing and Available Seller's Collections to be distributed pursuant to
Section 4.06(a)(iv), 4.08(b) or 4.10(a) on such Distribution Date.

         "LIBOR" shall mean, with respect to any Interest Period, the offered
rate for United States dollar deposits for one month that appears on Telerate
Page 3750 as of 11:00 A.M., London time, on the LIBOR Determination Date. If on
any LIBOR Determination Date the offered rate does not appear on Telerate Page
3750, the Calculation Agent will request each of the reference banks (which
shall be major banks that are engaged in transactions in the London interbank
market selected by the Calculation Agent) to provide the Calculation Agent with
its offered quotation for United States dollar deposits for one month to prime
banks in the London interbank market as of 11:00 A.M., London time, on such
date. If at least two reference banks provide the Calculation Agent with such
offered quotations, LIBOR on such date will be the arithmetic mean, rounded
upwards, if necessary, to the nearest 1/100,000 of 1% (.0000001), with five
one-millionths of a percentage point rounded upward, of all such quotations. If
on such date fewer than two of the reference banks provide the Calculation Agent
with such quotations, LIBOR on such date will be the arithmetic mean, rounded
upwards, if necessary, to the nearest 1/100,000 of 1% (.0000001), with five
one-millionths of a percentage point rounded upward, of the offered per annum
rates that one or more leading banks in The City of New York selected by the
Calculation Agent are quoting as of 11:00 A.M., New York City time, on such date
to leading European banks for United States dollar deposits for one month;
provided, however, that if such banks are not quoting as described above, LIBOR
for such date will be LIBOR applicable to the Interest Period immediately
preceding such Interest Period.

         "LIBOR Business Day" shall mean any day that is both a Business Day and
a day on which banking institutions in the City of London, England are not
required or authorized by law to be closed.

         "LIBOR Determination Date" shall mean, with respect to any Interest
Period, the second LIBOR Business Day prior to such Interest Period.

         "Monthly Interest" shall have the meaning specified in Section 4.02.

         "Monthly Payment Rate" shall mean, for any Collection Period the
percentage derived from dividing the Principal Collections for such Collection
Period by the average daily Pool Balance for such Collection Period.

         "Monthly Principal" means, with respect to any Distribution Date, the
amount of monthly principal distributable with respect to the Series 2000-A
Certificates on such Distribution Date, as

                                       15

<PAGE>   16

 determined pursuant to Section 4.03.

         "Monthly Servicing Fee" shall have the meaning specified in Section
3.01.

         "Moody's" means Moody's Investors Service, Inc.

         "Nonprincipal Period" shall mean any period that is not the
Accumulation Period or an Early Amortization Period.

         "Pool Factor" shall mean, with respect to any Determination Date, a
number carried out to 11 decimals representing the ratio of the Invested Amount
as of such Determination Date (determined after taking into account any
increases or decreases in the Invested Amount which will occur on the following
Distribution Date) to the Initial Invested Amount.

         "Principal Allocation Percentage" shall mean with respect to any
Collection Period, the percentage equivalent (which shall never exceed 100%) of
a fraction, the numerator of which is the Invested Amount as of the last day of
the Revolving Period, if such last day has occurred or, if such last day has not
occurred, as of the last day of the immediately preceding Collection Period, and
the denominator of which is the product of (x) the Pool Balance as of such last
day and (y) the Series 2000-A Allocation Percentage for the Collection Period in
respect of which the Principal Allocation Percentage is being calculated;
provided, however, that, with respect to that portion of any Collection Period
that falls after the date on which any Early Amortization Event occurs (other
than an Early Amortization Event which has resulted in an Early Amortization
Period which has ended as described in clause (c) or clause (d) of the
definition thereof in this Series Supplement), the Principal Allocation
Percentage shall be reset using the Pool Balance as of the close of business on
the date on which such Early Amortization Event shall have occurred and
Principal Collections shall be allocated for such portion of such Collection
Period using such reset Principal Allocation Percentage.

         "Reassignment Amount" shall mean, with respect to any Distribution
Date, after giving effect to any deposits and distributions otherwise to be made
on such Distribution Date, the sum of (a) the Invested Amount on such
Distribution Date, (b) accrued and unpaid interest on the unpaid balance of the
Series 2000-A Certificates (calculated on the basis of the outstanding principal
balance of the Series 2000-A Certificates at the Certificate Rate as in effect
during the applicable Interest Periods) through the day preceding such
Distribution Date, (c) the amount of Additional Interest, if any, for such
Distribution Date and any Additional Interest previously due but not distributed
to the Series 2000-A Certificateholders on a prior Distribution Date, (d) any
Carry-over Amount for such Distribution Date and any Carry-over Amount
previously due but not distributed to the Series 2000-A Certificateholders on a
prior Distribution Date and (e) any Additional Carry-over Amount for such
Distribution Date and any Additional Carry-over Amount previously due but not
distributed to the Series 2000-A Certificateholders on a prior Distribution
Date.

         "Required Participation Percentage" shall mean, with respect to Series
2000-A, 103%; provided, however, that if the aggregate amount of Principal
Receivables due from any Dealer or group of affiliated Dealers at the close of
business on the last day of any Collection Period with

                                       16

<PAGE>   17

respect to which such determination is being made pursuant to Section 9.04 is
greater than 1.5% of the Pool Balance on such last day, the Required
Participation Percentage shall mean, as of such last day and with respect to
such Collection Period and the immediately following Collection Period only,
104%; provided further that the Seller may, upon 10 days' prior notice to the
Trustee and each Rating Agency, reduce the Required Participation Percentage to
a percentage which shall not be less than 100%; provided that no Rating Agency
shall have notified the Seller or the Servicer that any such reduction will
result in a reduction or withdrawal of the rating of any outstanding Series or
Class with respect to which it is a Rating Agency.

         "Required Subordinated Amount" shall mean, as of any date of
determination, the sum of (a) the product of (i) the Subordinated Percentage and
(ii) the Invested Amount on such date and (b) the Incremental Subordinated
Amount.

         "Required Subordination Draw Amount" shall have the meaning specified
in Section 4.05.

         "Reserve Fund" shall have the meaning specified in Section 4.04.

         "Reserve Fund Deposit Amount" shall mean, with respect to any
Distribution Date, the amount, if any, by which (a) the Reserve Fund Required
Amount for such Distribution Date exceeds (b) the amount of funds in the Reserve
Fund after giving effect to any withdrawals therefrom on such Distribution Date.

         "Reserve Fund Required Amount" shall mean, with respect to any
Distribution Date, an amount equal to the product of (a) 0.35% and (b) the
outstanding principal balance of the Series 2000-A Certificates on such
Distribution Date (after giving effect to any changes therein on such
Distribution Date).

         "Revolving Period" shall mean the period beginning at the close of
business on the Series Cut-Off Date and terminating on the earlier of (a) the
close of business on the day immediately preceding the Accumulation Period
Commencement Date and (b) the close of business on the day an Early Amortization
Period commences; provided, however, that, if any Early Amortization Period
terminates as described in clause (c) or clause (d) of the definition thereof in
this Series Supplement, the Revolving Period will recommence as of the close of
business on the day such Early Amortization Period terminates.

         "Seller's Collections" shall mean, with respect to any Collection
Period, the sum of (a) the Seller's Percentage of Allocable Non-Principal
Collections for the related Collection Period, plus (b) the Seller's Percentage
of Allocable Principal Collections for the related Collection Period.

         "Seller's Percentage" shall mean 100% minus (a) the Floating Allocation
Percentage, when used with respect to Non-Principal Receivables, Defaulted
Receivables and Principal Receivables during any Nonprincipal Period, and (b)
the Principal Allocation Percentage, when used with respect to Principal
Receivables during the Accumulation Period and an Early Amortization Period.

         "Series 2000-A" shall mean the Series of Investor Certificates, the
terms of which are specified in this Series Supplement.

                                       17

<PAGE>   18

         "Series 2000-A Accounts" shall have the meaning specified in Section
4.04(e)(i).

         "Series 2000-A Allocation Percentage" shall mean the Series Allocation
Percentage with respect to Series 2000-A.

         "Series 2000-A Certificateholders" shall mean the Holders of Series
2000-A Certificates.

         "Series 2000-A Certificateholders' Interest" shall mean the
Certificateholders' Interest with respect to Series 2000-A.

         "Series 2000-A Certificates" shall mean any one of the certificates
executed by the Seller and authenticated by the Trustee, substantially in the
form of Exhibit A.

         "Series 2000-A Excess Principal Collections" shall mean that portion of
Excess Principal Collections allocated to Series 2000-A pursuant to Section
4.11.

         "Series 2000-A Expected Payment Date" shall mean the March 2003
Distribution Date.

         "Series 2000-A Final Payment Date" shall mean the first Distribution
Date on which, after giving effect to all payments to be made on that
Distribution Date, the outstanding principal amount of the Series 2000-A
Certificates will be paid in full.

         "Series 2000-A Principal Shortfall" shall have the meaning specified in
Section 4.11.

         "Series Cut-off Date" shall mean March 31, 2000.

         "Servicing Fee Rate" shall mean, with respect to Series 2000-A, 1/12 of
1% per month, or such lesser percentage as the Servicer shall determine in
connection with a waiver by the Servicer of all or any portion of the Monthly
Servicing Fee on any date.

         "Special Payment Date" shall mean each Distribution Date with respect
to any Early Amortization Period (other than an Early Amortization Period which
has ended as described in clause (c) or clause (d) of the definition thereof in
this Series Supplement).

         "Standard & Poor's" means Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc.

         "Subordinated Percentage" shall mean the percentage equivalent of a
fraction, the numerator of which is the Subordination Factor and the denominator
of which will be the excess of 100% over the Subordination Factor.

         "Subordination Factor" means 10%; provided, however, that the
Subordination Factor will be 11% in the event that the rating of the long-term
unsecured debt of CFC is lowered below BBB- by Standard & Poor's or withdrawn by
Standard & Poor's, unless, in either such case, the Seller receives written
confirmation from Standard & Poor's that the failure to so increase the
Subordination Factor would not result in the downgrade or withdrawal of Standard
& Poor's rating of the Series 2000-A Certificates.

                                       18

<PAGE>   19

         "Telerate Page 3750" shall mean the display page so designated on the
Dow Jones Telerate Service (or such other page as may replace that page on that
service, or such other service as may be nominated as the information vendor,
for the purpose of displaying London interbank offered rates of major banks).

         "Termination Date" shall mean the March 2005 Distribution Date.

         "Termination Proceeds" shall mean any Termination Proceeds arising out
of a sale of Receivables (or interests therein) pursuant to Section 9.01 of this
Series Supplement.

         "Trust Available Subordinated Amount" means the sum of the Available
Subordinated Amount and the sum of the aggregate available subordinated amounts
for all other outstanding Series.

         "Yield Supplement Account" shall have the meaning specified in Section
4.04.

         "Yield Supplement Account Deposit Amount" shall mean, with respect to
any Distribution Date, the amount, if any, by which the Yield Supplement Account
Required Amount exceeds the amount on deposit in the Yield Supplement Account
after giving effect to any deposits thereto and withdrawals therefrom otherwise
to be made on such Distribution Date.

         "Yield Supplement Account Required Amount" shall mean, with respect to
any Distribution Date, an amount equal to the product of (a) 0.40% and (b) the
outstanding principal balance of the Series 2000-A Certificates on such
Distribution Date (after giving effect to any changes therein on such
Distribution Date).

         (b)   Notwithstanding anything to the contrary in this Series
Supplement or the Agreement, the term "Rating Agency" shall mean, whenever used
in this Series Supplement or the Agreement with respect to Series 2000-A,
Moody's and Standard & Poor's. As used in this Series Supplement and in the
Agreement with respect to Series 2000-A, "highest investment category" shall
mean (i) in the case of Standard & Poor's, A-l+ or AAA, as applicable, and (ii)
in the case of Moody's, P-1 or Aaa, as applicable. Any notice required to be
given to a Rating Agency pursuant to the Agreement or this Series Supplement
shall also be given to Fitch IBCA, Inc. ("Fitch"), and Duff & Phelps Credit
Rating Company ("D&P"), although no such entity shall be deemed to be a Rating
Agency for any purposes of the Agreement or this Series Supplement with respect
to Series 2000-A.

         (c)   All capitalized terms used herein and not otherwise defined
herein have the meanings ascribed to them in the Agreement. The definitions in
Section 2.01 are applicable to the singular as well as to the plural forms of
such terms and to the masculine as well as to the feminine and neuter genders of
such terms.

         (d)   The words "hereof", "herein" and "hereunder" and words of
similar import when used in this Series Supplement shall refer to this Series
Supplement as a whole and not to any particular provision of this Series
Supplement; references to any Article, Section or Exhibit are references to
Articles, Sections and Exhibits in or to this Series Supplement unless otherwise
specified; and the term "including" means "including without limitation".

                                       19

<PAGE>   20

                                  ARTICLE III

                                 Servicing Fee

         SECTION 3.01. Servicing Compensation. The monthly servicing fee (the
"Monthly Servicing Fee") shall be payable to the Servicer, in arrears, on each
Distribution Date in respect of any Collection Period (or portion thereof)
occurring prior to the earlier of the first Distribution Date following the
Termination Date and the first Distribution Date on which the Invested Amount is
zero, in an amount equal to the product of (a) the Servicing Fee Rate, (b) the
Pool Balance as of the last day of the Collection Period second preceding such
Distribution Date and (c) the Series 2000-A Allocation Percentage with respect
to the immediately preceding Collection Period. The share of the Monthly
Servicing Fee allocable to the Series 2000-A Certificateholders with respect to
any Distribution Date (the "Certificateholders Monthly Servicing Fee") shall be
equal to the product of (a) the Servicing Fee Rate and (b) the Invested Amount
as of the last day of the Collection Period second preceding such Distribution
Date. The remainder of the Monthly Servicing Fee shall be paid by the Seller and
in no event shall the Trust, the Trustee or the Series 2000-A Certificateholders
be liable for the share of the Monthly Servicing Fee to be paid by the Seller;
and the remainder of the Servicing Fee shall be paid by the Seller and the
Investor Certificateholders of other Series and the Series 2000-A
Certificateholders shall in no event be liable for the share of the Servicing
Fee to be paid by the Seller or the Investor Certificateholders of other Series.
The Certificateholders Monthly Servicing Fee shall be payable to the Servicer
solely to the extent amounts are available for distribution in accordance with
the terms of this Series Supplement.

         The Servicer will be permitted, in its sole discretion, to waive all or
any portion of the Monthly Servicing Fee for any Distribution Date by notice to
the Trustee on or before the related Determination Date; provided that the
Servicer believes that sufficient Collections of Non-Principal Receivables will
be available on any future Distribution Date to pay the Certificateholders
Monthly Servicing Fee relating to the waived Monthly Servicing Fee. If the
Servicer so waives all or any portion of the Monthly Servicing Fee for any
Distribution Date, the Monthly Servicing Fee and the Certificateholders Monthly
Servicing Fee for such Distribution Date shall be deemed to be reduced by the
amount so waived for all purposes of this Series Supplement and the Agreement;
provided, however, that such Certificateholders Monthly Servicing Fee shall be
paid on a future Distribution Date solely to the extent amounts are available
therefor pursuant to Section 4.10(b); provided, further, that, to the extent any
such waived Certificateholders Monthly Servicing Fee is so paid, the related
portion of the Monthly Servicing Fee to be paid by the Seller shall be paid by
the Seller to the Servicer.

                                   ARTICLE IV

                 Rights of Series 2000-A Certificateholders and
                    Allocation and Application of Collections

         SECTION 4.01. Allocations; Payments to Seller; Excess Principal
Collections and Unallocated Principal Collections.

         (a)  Collections of Non-Principal Receivables and Principal
Receivables, Miscellaneous

                                       20

<PAGE>   21

Payments and Defaulted Amounts allocated to Series 2000-A pursuant to Article IV
of the Agreement shall be allocated and distributed as set forth in this
Article.

         (b) Subject to Section 4.01(d) below, the Servicer shall instruct the
Trustee to withdraw from the Collection Account and pay to the Seller on the
dates set forth below the following amounts:

                (i)  on each Deposit Date:

                     (A) an amount equal to the Excess Seller's Percentage for
         the related Collection Period of Allocable Non-Principal Collections
         deposited in the Collection Account for such Deposit Date; and

                     (B) an amount equal to the Excess Seller's Percentage for
         the related Collection Period of Allocable Principal Collections
         deposited in the Collection Account for such Deposit Date, if the
         Seller's Participation Amount (determined after giving effect to any
         Principal Receivables transferred to the Trust on such Deposit Date)
         exceeds the Trust Available Subordinated Amount for the immediately
         preceding Determination Date (after giving effect to the allocations,
         distributions, withdrawals and deposits to be made on the Distribution
         Date immediately following such Determination Date); and

                (ii) on each Deposit Date with respect to any Nonprincipal
     Period, an amount equal to the Available Seller's Principal Collections for
     such Deposit Date, if the Seller's Participation Amount (determined after
     giving effect to any Principal Receivables transferred to the Trust on such
     Deposit Date) exceeds the Trust Available Subordinated Amount for the
     immediately preceding Determination Date (after giving effect to the
     allocations, distributions, withdrawals and deposits to be made on the
     Distribution Date immediately following such Determination Date); provided,
     however, that Available Seller's Principal Collections shall be paid to the
     Seller with respect to any Collection Period only after an amount equal to
     the sum of (A) the Deficiency Amount, if any, relating to the immediately
     preceding Collection Period and (B) the excess, if any, of the Reserve Fund
     Required Amount over the amount in the Reserve Fund on the immediately
     preceding Distribution Date (after giving effect to the allocations of,
     distributions from, and deposits in, the Reserve Fund on such Distribution
     Date) has been deposited in the Collection Account from such Available
     Seller's Principal Collections.

     The withdrawals to be made from the Collection Account pursuant to this
Section 4.01(b) do not apply to deposits into the Collection Account that do not
represent Collections, including Miscellaneous Payments, payment of the purchase
price for the Certificateholders' Interest pursuant to Section 2.03 of the
Agreement, payment of the purchase price for the Series 2000-A
Certificateholders' Interest pursuant to Section 7.01 of this Series Supplement
and proceeds from the sale, disposition or liquidation of Receivables pursuant
to Section 9.02 or 12.02 of the Agreement.

         (c) The Servicer shall instruct the Trustee to withdraw from the
Collection Account

                                       21

<PAGE>   22

and deposit into the Reserve Fund on Deposit Dates with respect to any
Nonprincipal Period, Available Seller's Principal Collections for such Deposit
Date, up to the amount of the excess, if any, determined pursuant to Section
4.01(b)(ii)(B).

              (d) Notwithstanding the provisions of Section 4.01(b)(i), on each
Deposit Date during any Collection Period on which any amount is on deposit in
the Excess Funding Account or Principal Funding Account, the Servicer shall
instruct the Trustee to withdraw from the Collection Account and deposit in the
Yield Supplement Account the amounts otherwise distributable to the Seller
pursuant to Section 4.01(b)(i) until the amount on deposit in the Yield
Supplement Account is equal to the Yield Supplement Account Required Amount.

         SECTION 4.02.  Monthly Interest.

              (a) The amount of monthly interest ("Monthly Interest") with
respect to the Series 2000-A Certificates on any Distribution Date, commencing
with the Initial Distribution Date, shall be an amount equal to the product of
(i) the Certificate Rate, (ii) the outstanding principal balance of the Series
2000-A Certificates as of the close of business on the preceding Distribution
Date (after giving effect to all repayments of principal made to Series 2000-A
Certificateholders on such preceding Distribution Date, if any) or, in the case
of the Initial Distribution Date, the Closing Date and (iii) a fraction, the
numerator of which is the actual number of days elapsed in such Interest Period
and the denominator of which is 360.

         On the Determination Date preceding each Distribution Date, commencing
with the Initial Distribution Date, the Servicer shall determine the excess, if
any (the "Interest Shortfall"), of (x) the aggregate Monthly Interest for the
Interest Period applicable to such Distribution Date over (y) the amount which
will be available to be distributed to Series 2000-A Certificateholders on such
Distribution Date in respect thereof pursuant to this Series Supplement. If the
Interest Shortfall with respect to any Distribution Date is greater than zero,
an additional amount ("Additional Interest") equal to the product of (i) the
Certificate Rate (calculated pursuant to clause (a) of the definition thereof)
for the Interest Period commencing on the related Distribution Date (or, for
subsequent Interest Periods, the Certificate Rate (calculated pursuant to clause
(a) of the definition thereof) for such subsequent Interest Periods), (ii) such
Interest Shortfall (or the portion thereof which has not been paid to Series
2000-A Certificateholders) and (iii) a fraction, the numerator of which is the
actual number of days elapsed in such Interest Period (or in a subsequent
Interest Period) and the denominator of which is 360, shall be payable as
provided herein with respect to the Series 2000-A Certificates on each
Distribution Date following such Distribution Date to and including the
Distribution Date on which such Interest Shortfall is paid to Series 2000-A
Certificateholders. Notwithstanding anything to the contrary herein, Additional
Interest shall be payable or distributed to Certificateholders only to the
extent permitted by applicable law.

              (b) On the Determination Date preceding each Distribution Date,
commencing with the Initial Distribution Date, the Servicer shall determine the
excess, if any (the " Carry-over Shortfall"), of (x) the Carry-over Amount, if
any, for such Distribution Date over (y) the amount which will be available to
be distributed to Series 2000-A Certificateholders in respect thereof on such
Distribution Date pursuant to this Series Supplement. If the Carry-over
Shortfall with

                                       22

<PAGE>   23

respect to any Distribution Date is greater than zero, an additional amount
("Additional Carry-over Amount") equal to the product of (i) the Certificate
Rate (calculated pursuant to clause (a) of the definition thereof) for the
Interest Period commencing on the related Distribution Date (or, for subsequent
Interest Periods, the Certificate Rate (calculated pursuant to clause (a) of the
definition thereof) for such subsequent Interest Periods), (ii) such Carry-over
Shortfall (or the portion thereof which has not been paid to Series 2000-A
Certificateholders) and (iii) a fraction, the numerator of which is the actual
number of days elapsed in such Interest Period (or in a subsequent Interest
Period) and the denominator of which is 360, shall be payable as provided herein
with respect to the Series 2000-A Certificates on each Distribution Date
following such Distribution Date to the Distribution Date on which such
Carry-over Shortfall is paid to Series 2000-A Certificateholders.
Notwithstanding anything to the contrary herein, any Additional Carry-over
Amount shall be payable or distributed to Series 2000-A Certificateholders only
to the extent permitted by applicable law.

         SECTION 4.03. Determination of Monthly Principal.

              (a) The amount of Monthly Principal distributable with respect to
the Series 2000-A Certificates on each Distribution Date with respect to the
Accumulation Period shall be equal to the Available Investor Principal
Collections with respect to such Distribution Date; provided, however, that, for
each such Distribution Date, Monthly Principal shall not exceed the Controlled
Deposit Amount for such Distribution Date; and provided further that Monthly
Principal shall not exceed the Invested Amount.

              (b) The amount of Monthly Principal distributable on each
Distribution Date with respect to an Early Amortization Period shall be equal to
the Invested Amount or, if less, the amount distributable in respect of the
Series 2000-A Certificates on such Distribution Date pursuant to Section
4.06(d).

         SECTION 4.04. Establishment of Reserve Fund and Funding Accounts.

              (a) (i) The Servicer, for the benefit of the Series 2000-A
Certificateholders, shall cause to be established and maintained in the name of
the Trustee, on behalf of the Trust, an Eligible Deposit Account (the "Reserve
Fund") which shall be identified as the "Reserve Fund for the CARCO Auto Loan
Master Trust, Series 2000-A" and shall bear a designation clearly indicating
that the funds deposited therein are held for the benefit of the Series 2000-A
Certificateholders. On the Closing Date, the Seller shall cause to be deposited
in the Reserve Fund the Initial Reserve Fund Deposit Amount.

              (ii) At the direction of the Servicer, funds on deposit in the
Reserve Fund shall be invested by the Trustee in Eligible Investments selected
by the Servicer that will mature so that such funds will be available on or
before the following Distribution Date. All Eligible Investments shall be held
by the Trustee for the benefit of the Series 2000-A Certificateholders. On each
Distribution Date, all interest and other investment earnings (net of losses and
investment expenses) on funds on deposit in the Reserve Fund received prior to
such Distribution Date shall be applied as set forth in Section 4.06(a) of this
Series Supplement.

                                       23

<PAGE>   24

              (b) (i) The Servicer, for the benefit of the Series 2000-A
Certificateholders, shall establish and maintain in the name of the Trustee, on
behalf of the Trust, an Eligible Deposit Account (the "Yield Supplement
Account"), which shall be identified as the "Yield Supplement Account for the
CARCO Auto Loan Master Trust Series 2000-A" and shall bear a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Series 2000-A Certificateholders. On the Closing Date, the Seller shall cause to
be deposited into the Yield Supplement Account the Initial Yield Supplement
Account Deposit Amount.

              (ii) At the direction of the Servicer, funds on deposit in the
Yield Supplement Account shall be invested by the Trustee in investments
consisting of financial assets selected by the Servicer; provided, however, that
such assets must, by their terms, convert to cash within a finite period of
time. All such financial assets shall be held by the Trustee for the benefit of
the Series 2000-A Certificateholders. On each Distribution Date, all interest
and other investment earnings (net of losses and investment expenses) on funds
on deposit in the Yield Supplement Account shall be applied as set forth in
Section 4.06(a) of this Series Supplement.

              (iii) If on any Distribution Date there is a Carry-over Amount,
the Servicer shall cause the Trustee to apply the amounts on deposit in the
Yield Supplement Account up to the amount of such Carry-over Amount to satisfy
such Carry-over Amount. The Trustee shall be authorized to dispose of
investments in the Yield Supplement Account in order to obtain funds with which
to satisfy any Carry-over Amount.

              (iv) If on any Distribution Date the amount on deposit in the
Yield Supplement Account (after giving effect to any withdrawals to be made from
the Yield Supplement Account on such Distribution Date) is greater than the
Yield Supplement Account Required Amount, the Servicer shall cause the Trustee
to pay to the Seller on such Distribution Date the excess of such amount on
deposit in the Yield Supplement Account over the Yield Supplement Account
Required Amount.

              (c) (i) The Servicer, for the benefit of the Series 2000-A
Certificateholders, shall establish and maintain in the name of the Trustee, on
behalf of the Trust, an Eligible Deposit Account (the "Principal Funding
Account"), which shall be identified as the "Principal Funding Account for CARCO
Auto Loan Master Trust, Series 2000-A" and shall bear a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Series 2000-A Certificateholders.

              (ii) At the direction of the Servicer, funds on deposit in the
Principal Funding Account shall be invested by the Trustee in Eligible
Investments selected by the Servicer. All such Eligible Investments shall be
held by the Trustee for the benefit of the Series 2000-A Certificateholders. On
each Distribution Date all interest and other investment earnings (net of losses
and investment expenses) on funds on deposit therein shall be applied as set
forth in Section 4.06(a) of this Series Supplement. Funds on deposit in the
Principal Funding Account shall be invested at the direction of the Servicer in
Eligible Investments that will mature so that such funds will be available on or
before the following Distribution Date.

              (d) (i) The Servicer, for the benefit of the Series 2000-A
Certificateholders, shall

                                       24

<PAGE>   25

establish and maintain in the name of the Trustee, on behalf of the Trust, an
Eligible Deposit Account (the "Excess Funding Account"), which shall be
identified as the "Excess Funding Account for CARCO Auto Loan Master Trust,
Series 2000-A" and shall bear a designation clearly indicating that the funds
deposited therein are held for the benefit of the Series 2000-A
Certificateholders. No deposit will be made to the Excess Funding Account on the
Closing Date.

              (ii) At the direction of the Servicer, funds on deposit in the
Excess Funding Account shall be invested by the Trustee in Eligible Investments
selected by the Servicer. All such Eligible Investments shall be held by the
Trustee for the benefit of the Series 2000-A Certificateholders. On each
Distribution Date, all interest and other investment earnings (net of losses and
investment expenses) on funds on deposit in the Excess Funding Account shall be
applied as set forth in Section 4.06(a) of this Series Supplement. Funds
deposited in the Excess Funding Account on any Distribution Date shall be
invested at the direction of the Servicer in Eligible Investments that will
mature so that such funds will be available on or before the following
Distribution Date.

              (e) (i) The Trustee shall possess all right, title and interest in
and to all funds on deposit from time to time in, and all Eligible Investments
and other financial assets credited to, the Reserve Fund, the Yield Supplement
Account, the Principal Funding Account and the Excess Funding Account
(collectively the "Series 2000-A Accounts") and in all proceeds thereof. The
Series 2000-A Accounts shall be under the sole dominion and control of the
Trustee for the benefit of the Series 2000-A Certificateholders. If, at any
time, any of the Series 2000-A Accounts ceases to be an Eligible Deposit
Account, the Trustee (or the Servicer on its behalf) shall within 10 Business
Days (or such longer period, not to exceed 30 calendar days, as to which each
Rating Agency may consent) establish a new Series 2000-A Account meeting the
conditions specified in paragraph (a)(i), (b)(i), (c)(i) or (d)(i) above, as
applicable, as an Eligible Deposit Account and shall transfer any cash and/or
any investments to such new Series 2000-A Account. Neither the Seller, the
Servicer nor any person or entity claiming by, through or under the Seller, the
Servicer or any such person or entity shall have any right, title or interest
in, or any right to withdraw any amount from, any Series 2000-A Account, except
as expressly provided herein. Schedule 1, which is hereby incorporated into and
made part of this Series Supplement, identifies each Series 2000-A Account by
setting forth the account number of each such account, the account designation
of each such account and the name of the institution with which such account has
been established. If a substitute Series 2000-A Account is established pursuant
to this Section, the Servicer shall provide to the Trustee an amended Schedule
1, setting forth the relevant information for such substitute Series 2000-A
Account.

              (ii) Pursuant to the authority granted to the Servicer in Section
3.01(a) of the Agreement, the Servicer shall have the power, revocable by the
Trustee, to make withdrawals and payments or to instruct the Trustee to make
withdrawals and payments from the Series 2000-A Accounts for the purposes of
carrying out the Servicer's or Trustee's duties hereunder.

         SECTION 4.05. Deficiency Amount. With respect to each Distribution
Date, commencing with the Initial Distribution Date, on the related
Determination Date, the Servicer shall determine the amount (the "Deficiency
Amount"), if any, by which (a) the sum of (i) Monthly Interest for such
Distribution Date, (ii) any Monthly Interest previously due but not distributed
to the Series 2000-A

                                       25

<PAGE>   26

Certificateholders on a prior Distribution Date, (iii) Additional Interest, if
any, for such Distribution Date and any Additional Interest previously due but
not distributed to the Series 2000-A Certificateholders on a prior Distribution
Date; (iv) the Certificateholders Monthly Servicing Fee for such Distribution
Date, (v) the Investor Default Amount, if any, for such Distribution Date; (vi)
the Series 2000-A Allocation Percentage of the amount of any Adjustment Payment
required to be deposited in the Collection Account pursuant to Section 3.09(a)
of the Agreement with respect to the related Collection Period that has not been
so deposited as of such Determination Date and (vii) if such Distribution Date
constitutes the Final Payment Date, the sum of (A) the amount of any Carry-over
Amount for such Distribution Date, (B) the amount of any Carry-over Amount
previously due but not previously distributed to Series 2000-A
Certificateholders on a prior Distribution Date, (C) the amount of any
Additional Carry-over Amount for such Distribution Date and (D) the amount of
any Additional Carry-over Amount previously due but not previously paid to
Series 2000-A Certificateholders on a prior Distribution Date, in each case that
will not be satisfied on such date by application, pursuant to Section
4.04(b)(iii), of amounts on deposit in the Yield Supplement Account, exceeds (b)
the sum of (i) Investor Non-Principal Collections for such Distribution Date
plus any Investment Proceeds with respect to such Distribution Date and (ii) the
amount of funds in the Reserve Fund which are available pursuant to Section
4.08(a) and Section 4.08(d), as applicable, to cover any portion of the
Deficiency Amount. The lesser of the Deficiency Amount and the Available
Subordinated Amount shall be the "Required Subordination Draw Amount".

         SECTION 4.06. Application of Investor Non-Principal Collections,
Investment Proceeds and Available Investor Principal Collections. The Servicer
shall cause the Trustee to apply, on each Distribution Date, commencing with the
Initial Distribution Date, Investor Non-Principal Collections, Investment
Proceeds and Available Investor Principal Collections to make the following
distributions:

              (a) On each Distribution Date, commencing with the Initial
Distribution Date, an amount equal to the sum of Investor Non-Principal
Collections and any Investment Proceeds with respect to such Distribution Date
will be distributed in the following priority:

                   (i) first, an amount equal to Monthly Interest for such
         Distribution Date, plus the amount of any Monthly Interest previously
         due but not distributed to the Series 2000-A Certificateholders on a
         prior Distribution Date, plus the amount of any Additional Interest for
         such Distribution Date and any Additional Interest previously due but
         not distributed to the Series 2000-A Certificateholders on a prior
         Distribution Date shall be distributed to the Series 2000-A
         Certificateholders;

                   (ii) second, an amount equal to the Certificateholders
         Monthly Servicing Fee for such Distribution Date shall be distributed
         to the Servicer (unless such amount has been netted against deposits to
         the Collection Account or waived);

                   (iii) third, an amount equal to the Reserve Fund Deposit
         Amount, if any, for such Distribution Date shall be deposited in the
         Reserve Fund;

                   (iv) fourth, an amount equal to the Investor Default Amount
         for such

                                       26

<PAGE>   27

         Distribution Date shall be treated as a portion of Investor Principal
         Collections for such Distribution Date;

                   (v) fifth, an amount equal to the Carry-over Amount (after
         giving effect to any withdrawals from the Yield Supplement Account on
         such Distribution Date), if any, for such Distribution Date, plus the
         amount of any Carry-over Amount previously due but not previously
         distributed to the Series 2000-A Certificateholders on a prior
         Distribution Date, plus the amount of any Additional Carry-over Amount
         for such Distribution Date and any Additional Carry-over Amount
         previously due but not previously distributed to the Series 2000-A
         Certificateholders on a prior Distribution Date shall be distributed to
         the Series 2000-A Certificateholders;

                   (vi) sixth, an amount equal to the Yield Supplement Account
         Deposit Amount, if any, for such Distribution Date shall be deposited
         in the Yield Supplement Account; and

                   (vii) seventh, the balance, if any, shall constitute Excess
         Servicing and shall be allocated and distributed as set forth in
         Section 4.10.

              (b) On each Distribution Date, commencing with the Initial
Distribution Date, with respect to any Nonprincipal Period, an amount equal to
Available Investor Principal Collections deposited in the Collection Account for
the related Collection Period shall be allocated first to make a deposit to the
Excess Funding Account if the sum of (i) the Invested Amount (reduced for this
purpose by the amount, if any, by which the Required Participation Amount
exceeds the Pool Balance due to an increase in the Subordination Factor) and
(ii) the amount on deposit in the Excess Funding Account (other than any
Investment Proceeds) prior to the allocation on such Distribution Date is less
than the outstanding principal balance of the Series 2000-A Certificates and
second treated as Excess Principal Collections and applied in accordance with
Section 4.04 of the Agreement.

              (c) On each Distribution Date with respect to the Accumulation
Period, an amount equal to Available Investor Principal Collections will be
distributed in the following priority:

                   (i) first, an amount equal to Monthly Principal for such
         Distribution Date, shall be deposited by the Servicer or the Trustee
         into the Principal Funding Account; and

                   (ii) second, unless an Early Amortization Event has occurred
         (other than an Early Amortization Event which has resulted in an Early
         Amortization Period which has ended as described in clause (c) or
         clause (d) of the definition thereof in this Series Supplement), after
         giving effect to the transactions referred to in clause (i) above, an
         amount equal to the balance, if any, of such Available Investor
         Principal Collections shall be treated as Excess Principal Collections
         and applied in accordance with Section 4.04 of the Agreement and
         Section 4.11 hereof.

             (d) On each Distribution Date with respect to any Early
Amortization Period, an amount equal to the Monthly Principal will be
distributed to the Series 2000-A Certificateholders.

         SECTION 4.07. Distributions to Series 2000-A Certificateholders.

                                       27
<PAGE>   28

         (a) The Servicer shall cause the Trustee to make the following
distributions at the following times from the Collection Account, the Reserve
Fund, the Principal Funding Account and the Excess Funding Account:

                  (i) on each Distribution Date, all amounts on deposit in the
     Collection Account or the Reserve Fund that are payable to the Series
     2000-A Certificateholders with respect to accrued interest will be
     distributed to the Series 2000-A Certificateholders;

                  (ii) on the Series 2000-A Expected Payment Date, all amounts
     on deposit in the Principal Funding Account and the amount on deposit in
     the Excess Funding Account, and all amounts on deposit in the Collection
     Account that are payable to the Series 2000-A Certificateholders with
     respect to principal, up to a maximum amount on any such day equal to the
     excess of the outstanding principal balance of the Series 2000-A
     Certificates over the unreimbursed Investor Charge-Offs, shall be
     distributed to the Series 2000-A Certificateholders;

                  (iii) on each Special Payment Date, all amounts on deposit in
     the Principal Funding Account and the Excess Funding Account, and all
     amounts on deposit in the Collection Account that are payable to the Series
     2000-A Certificateholders with respect to principal, up to a maximum amount
     on any such day equal to the excess of the outstanding principal balance of
     the Series 2000-A Certificates over the unreimbursed Investor Charge-Offs,
     shall be distributed to the Series 2000-A Certificateholders.

         (b) On each Distribution Date on which there is any Carry-over Amount
or Additional Carry-over Amount, the Servicer shall instruct the Trustee to
distribute to the Series 2000-A Certificateholders the amounts on deposit in the
Yield Supplement Account and the Collection Account payable with respect thereto
pursuant to Section 4.04(b)(iii) and Section 4.06(a) (other than from Available
Seller's Collections), respectively.

         (c) If, on the Final Payment Date, there is any Carry-over Amount or
Additional Carry-over Amount (after giving effect to any distributions on such
date pursuant to Section 4.07(b)), the Servicer shall instruct the Trustee to
distribute to the Series 2000-A Certificateholders the amounts payable with
respect thereto pursuant to Sections 4.08(b) and 4.08(d).

         (d) The distributions to be made pursuant to this Section are subject
to the provisions of Sections 2.03, 9.02, 10.01 and 12.02 of the Agreement and
Sections 8.01 and 8.02 of this Series Supplement.

     SECTION 4.8. Application of Reserve Fund and Available Subordinated
Amount.

         (a) If the portion of Investor Non-Principal Collections and Investment
Proceeds allocated to the Series 2000-A Certificateholders on any Distribution
Date pursuant to Section 4.06(a) is not sufficient to make the entire
distributions required on such Distribution Date by Sections 4.06(a)(i), (ii)
and (iv), the Servicer shall cause the Trustee to withdraw funds from the
Reserve Fund to the extent available therein, and apply such funds to complete
the distributions

                                       28

<PAGE>   29

pursuant to Section 4.06(a)(i), (ii) and (iv); provided, however, that during
any Early Amortization Period (other than an Early Amortization Period which has
ended as described in clause (c) or clause (d) of the definition thereof in this
Series Supplement) funds shall not be withdrawn from the Reserve Fund to make
distributions otherwise required by Section 4.06(a)(iv) to the extent that,
after giving effect to such withdrawal, the amount on deposit in the Reserve
Fund shall be less than $750,000.

         (b) If there is a Required Subordination Draw Amount for such
Distribution Date, and such Distribution Date is not the Final Payment Date, the
Servicer shall apply or cause the Trustee to apply the Available Seller's
Collections on deposit in the Collection Account on such Distribution Date, but
only up to the amount of the Required Subordination Draw Amount, to make the
distributions required by Sections 4.06(a)(i), (ii) and (iv) that have not been
made through the application of funds from the Reserve Fund in accordance with
the preceding paragraph. If there is a Required Subordination Draw Amount for
such Distribution Date, and such Distribution Date is the Final Payment Date,
the Servicer shall apply or cause the Trustee to apply the Available Seller's
Collections on deposit in the Collection Account on such Distribution Date, but
only up to the amount of the Required Subordination Draw Amount, to make the
distributions required by Sections 4.06(a)(i), (ii), (iv) and (v) with respect
to the Series 2000-A Certificates that have not been made through the
application of funds from the Reserve Fund in accordance with Section 4.08(d).
Any such Available Seller's Collections remaining after the application thereof
pursuant to the first or second preceding sentence, as applicable, shall be
treated as a portion of Investor Principal Collections for such Distribution
Date, but only up to the amount of unpaid Adjustment Payments allocated to
Series 2000-A as described in Section 4.05(a)(vi). The amount of the Available
Seller's Collections applied in accordance with the three preceding sentences
shall reduce the Available Subordinated Amount in all other cases as described
in clause (A) of the definition thereof. If the Required Subordination Draw
Amount exceeds Available Seller's Collections for such Distribution Date, the
Available Subordinated Amount shall be further reduced by the amount of such
excess, but not by more than the sum of (x) the Investor Default Amount and (y)
the amount of unpaid Adjustment Payments allocated to Series 2000-A as described
in Section 4.05(a)(vi).

         (c) If, after giving effect to the allocations of, distributions from,
and deposits in, the Reserve Fund made pursuant to Sections 4.01(c), 4.04,
4.06(a), 4.08(a) and 4.08(e), (i) the amount in the Reserve Fund is greater than
the Reserve Fund Required Amount (or, for any Distribution Date with respect to
an Early Amortization Period, the Excess Reserve Fund Required Amount) for such
Distribution Date, the Servicer shall cause the Trustee to distribute such
excess amount to the Seller, subject to the proviso contained in paragraph (f)
below or (ii) the amount in the Reserve Fund is less than such Reserve Fund
Required Amount, then the Trustee shall deposit any remaining Available Seller's
Collections on deposit in the Collection Account for such Distribution Date
after giving effect to Section 4.08(b) into the Reserve Fund until the amount in
the Reserve Fund is equal to such Reserve Fund Required Amount. On the
Termination Date, any funds in the Reserve Fund will be treated as Available
Investor Principal Collections.

         (d) If, on the Final Payment Date, after giving effect to (c) above,
there is a Carry-over Amount or a Additional Carry-over Amount after giving
effect to withdrawals from the Yield

                                       29

<PAGE>   30

Supplement Account on such date, the Servicer shall cause the Trustee to
withdraw funds in the amount of such Carry-over Amount or Additional Carry-over
Amount from the Reserve Fund (to the extent available therein), and distribute
such funds to the Series 2000-A Certificateholders.

         (e) If, for any Distribution Date with respect to an Early Amortization
Period, after giving effect to the allocations of, distributions from, and
deposits in, the Reserve Fund made pursuant to Sections 4.01(c), 4.04, 4.06(a)
and 4.08(a), the amount in the Reserve Fund is less than the Excess Reserve Fund
Required Amount for such Distribution Date, the Trustee shall deposit any
remaining Available Seller's Collections on deposit in the Collection Account
for such Distribution Date into the Reserve Fund until the amount in the Reserve
Fund is equal to such Excess Reserve Fund Required Amount.

         (f) The balance of Available Seller's Collections on any Distribution
Date, after giving effect to any distributions thereof pursuant to Section
4.08(a), (b), (c) or (e), shall be distributed to the Seller on such
Distribution Date; provided that, in the case of any remaining Available
Seller's Principal Collections, if the Trust Available Subordinated Amount for
the immediately preceding Determination Date exceeds the Seller's Participation
Amount on such date (determined after giving effect to any Principal Receivables
transferred to the Trust on such Distribution Date), Section 4.08(c) hereof
shall not apply and the amount of such excess shall be deposited into the
Reserve Fund, with any remaining Available Seller's Principal Collections paid
to the Seller.

     SECTION 4.9. Investor Charge-Offs. If, on any Distribution Date on which
the Available Subordinated Amount on the preceding Determination Date (after
giving effect to the allocations, distributions, withdrawals and deposits to be
made on such Distribution Date) is zero and the Deficiency Amount for such
Distribution Date is greater than zero, the Invested Amount shall be reduced by
the amount of the excess of such Deficiency Amount over any remaining Available
Subordinated Amount on such Determination Date, but not by more than the
Investor Default Amount (an "Investor Charge-Off"). Any such Investor Charge-Off
shall be applied to reduce the Invested Amount for the related Collection
Period. Investor Charge-Offs shall thereafter be reimbursed and the Invested
Amount increased (but not by an amount in excess of the aggregate unreimbursed
Investor Charge-Offs on any Distribution Date) by the sum of (a) Allocable
Miscellaneous Payments with respect to such Distribution Date and (b) the amount
of Excess Servicing allocated and available for that purpose pursuant to Section
4.10(a). Any such increase shall be applied to increase the outstanding
principal balance the Series 2000-A Certificates for the related Collection
Period.

     SECTION 4.10. Excess Servicing. The Servicer shall cause the Trustee to
apply, on each Distribution Date, commencing with the Initial Distribution Date,
Excess Servicing with respect to the Collection Period immediately preceding
such Distribution Date, to make the following distributions in the following
priority:

         (a) an amount equal to the aggregate amount of Investor Charge-Offs
     which have not been previously reimbursed as provided in Section 4.09
     (after giving effect to the allocation on such Distribution Date of any
     amount for that purpose pursuant to Section 4.09) shall be treated as a
     portion of Available Investor Principal Collections with respect to such
     Distribution Date;

                                       30

<PAGE>   31

         (b) an amount equal to the aggregate outstanding amounts of the
     Certificateholders Monthly Servicing Fee which have been previously waived
     pursuant to Section 3.01 shall be distributed to the Servicer; and

         (c) the balance, if any, shall be distributed to the Seller.

     SECTION 4.11. Excess Principal Collections.

         (a) That portion of Excess Principal Collections for any Distribution
Date equal to the amount of Series 2000-A Excess Principal Collections for such
Distribution Date will be allocated to Series 2000-A and will be distributed as
set forth in this Series Supplement.

         (b) Series 2000-A Excess Principal Collections, with respect to any
Distribution Date, shall mean an amount equal to the Series 2000-A Principal
Shortfall for such Distribution Date; provided, however, that, if the aggregate
amount of Excess Principal Collections for all Series for such Distribution Date
is less than the aggregate amount of Principal Shortfalls for all Series
entitled to share Excess Principal Collections for such Distribution Date, then
Series 2000-A Excess Principal Collections for such Distribution Date shall
equal the product of (x) Excess Principal Collections for all Series for such
Distribution Date and (y) a fraction, the numerator of which is the Series
2000-A Principal Shortfall for such Distribution Date and the denominator of
which is the aggregate amount of Principal Shortfalls for all Series entitled to
share Excess Principal Collections for such Distribution Date. The "Series
2000-A Principal Shortfall", with respect to any Distribution Date, shall equal
the excess of (i) (x) for any Distribution Date with respect to the Accumulation
Period, the Controlled Deposit Amount, or (y) for any Distribution Date with
respect to an Early Amortization Period, the Invested Amount, over (ii) (x) with
respect to the Accumulation Period, Available Investor Principal Collections for
such Distribution Date (excluding any portion thereof attributable to Excess
Principal Collections) or (y) with respect to an Early Amortization Period,
Available Investor Principal Collections for such Distribution Date (excluding
any portion thereof attributable to Excess Principal Collections).

     SECTION 4.12. Excess Funding Account.

         (a) Any funds on deposit in the Excess Funding Account on the September
2002 Distribution Date will be deposited in the Principal Funding Account on
such date. No funds will be deposited in the Excess Funding Account during any
Early Amortization Period. Additionally, no amounts will be deposited in the
Excess Funding Account with respect to any Collection Period following the
August 2002 Collection Period.

         (b) On each Determination Date during any Nonprincipal Period, the
Seller shall determine whether the sum of the Invested Amount (reduced for this
purpose by the amount, if any, by which the Required Participation Amount
exceeds the Pool Balance due to an increase in the Subordination Factor) and the
amount on deposit in the Excess Funding Account (other than any Investment
Proceeds) is greater than the outstanding principal balance of the Series 2000-A
Certificates. If on any such Determination Date such sum is greater than the
outstanding principal balance of the Series 2000-A Certificates and thus there
are sufficient Principal Receivables in the Trust to permit an increase in the
Invested Amount without causing an Early Amortization Event

                                       31

<PAGE>   32

to occur with respect to any outstanding Series, the Seller shall notify the
Trustee of the amount of the increase in the Invested Amount. Subject to the
provisions set forth below in this Section 4.12(b) and to Sections 4.12(c) and
(d) below, upon receipt of such notice the Invested Amount shall be increased by
the amount specified, and the Servicer shall instruct the Trustee to withdraw
from the Excess Funding Account and pay to the Seller or allocate to one or more
other Series, on the immediately succeeding Distribution Date, an amount equal
to the amount of such increase in the Invested Amount. Such payment shall be in
payment or partial payment pursuant to the Receivables Purchase Agreement for
additional Principal Receivables transferred to the Trust or allocated to Series
2000-A. To the extent that the Invested Amount is increased by any payment to
the Seller or any allocation to one or more other Series, the Seller's Interest
or such other Series invested amount, as applicable, shall be reduced by the
amount of such payment. In addition, any increase in the Invested Amount is
subject to the condition that after giving effect to such increase (i) the Pool
Balance equals or exceeds (ii) the sum of (A) the Required Participation Amount,
(B) the sum of the Required Subordinated Amount and the sum of the required
subordinated amounts for all other Series (or, if such other series shall have
no required subordinated amount, the available subordinated amount with respect
to such Series) and (C) the sum of any subordinated amounts supporting any
Enhancement for all other Series. In connection with the foregoing, the Seller
shall endeavor (taking into account any seasonality experienced in the Accounts
in the Trust) to minimize the amounts on deposit, from time to time, in the
Excess Funding Account.

         (c) In the event that other Series issued by the Trust provide for
excess funding accounts or other arrangements similar to the Excess Funding
Account involving fluctuating levels of investments in Principal Receivables,
(i) the allocation of additional Principal Receivables to increase the Invested
Amount, and the invested amounts of such other Series (and the related
withdrawals from the Excess Funding Account and the other excess funding or
similar accounts) will be based on the proportion that the amount on deposit in
the Excess Funding Account bears to amounts on deposit in the excess funding
accounts of all Series providing for excess funding accounts or such similar
arrangements or to amounts otherwise similarly available and (ii) the deposit of
amounts into the Excess Funding Account and the excess funding accounts of such
other Series will be pro rata based on the proportion that the Adjusted Invested
Amount bears to the adjusted invested amounts of all Series providing for excess
funding accounts or such similar arrangements.

         (d) In the event that any other Series is in an amortization, early
amortization or accumulation period the amounts of any withdrawals from the
Excess Funding Account shall be applied first to satisfy in full any then
applicable funding or payment requirements of such Series and second to make a
payment to the Seller. In the event that more than one other Series is in an
amortization, early amortization or accumulation period, the amounts of any
withdrawals from the Excess Funding Account shall be allocated (and, if
necessary, reallocated) among such Series as specified in the related Series
Supplement to meet the funding or payment requirements of each such Series first
to satisfy in full all then applicable funding or payment requirements of each
such Series and second to make a payment to the Seller.

     SECTION 4.13. Accumulation Period Length; Accumulation Period
Commencement Date. Beginning on the September 2002 Distribution Date, and on
each Distribution Date thereafter that occurs prior

                                       32

<PAGE>   33

to the Accumulation Period Commencement Date, the Servicer shall calculate the
Accumulation Period Length and, if applicable, determine the Accumulation Period
Commencement Date. Once the Servicer has determined the Accumulation Period
Commencement Date, the Servicer shall promptly notify the Trustee in writing of
such determination. In connection therewith, the Seller hereby agrees not to
cause the Trust to issue any new Series during the period from the date hereof
until the date that the Series 2000-A Certificates shall have been paid in full,
if such issuance would have an adverse effect on the results obtained by
application of the formula used to compute the Accumulation Period Length.

                                    ARTICLE V

                            Distributions and Reports
                       to Series 2000-A Certificateholders

     SECTION 5.1. Distributions.

         (a) On each Distribution Date, commencing with the Initial Distribution
Date, the Trustee shall distribute to each Series 2000-A Certificateholder of
record on the preceding Record Date (other than as provided in Section 12.02 of
the Agreement respecting a final distribution) such Certificateholder's pro rata
share (based on the aggregate fractional undivided interests represented by the
Series 2000-A Certificates held by such Certificateholder) of the amounts on
deposit in the Series 2000-A Accounts as is payable to the Series 2000-A
Certificateholders on such Distribution Date pursuant to Section 4.07.

         (b) Except as provided in Section 12.02 of the Agreement with respect
to a final distribution, distributions to Series 2000-A Certificateholders
hereunder shall be made by check mailed to each Series 2000-A Certificateholder
at such Certificateholder's address appearing in the Certificate Register
without presentation or surrender of any Series 2000-A Certificate or the making
of any notation thereon; provided, however, that, with respect to Series 2000-A
Certificates registered in the name of a Depository, such distributions shall be
made to such Depository in immediately available funds.

     SECTION 5.2. Reports and Statements to Series 2000-A Certificateholders.

         (a) At least two Business Days prior to each Distribution Date,
commencing with the Initial Distribution Date, the Servicer will provide to the
Trustee, and on each such Distribution Date, the Servicer will make available
via the Internet, a statement substantially in the form of Exhibit B prepared by
the Servicer setting forth certain information relating to the Trust and the
Series 2000-A Certificates.

         (b) A copy of each statement provided pursuant to paragraph (a) will be
made available for inspection at the Corporate Trust Office.

         (c) On or before January 31 of each calendar year, beginning with
calendar year 2000, the Trustee shall furnish or cause to be furnished to each
Person who at any time during the preceding calendar year was a Series 2000-A
Certificateholder (or Certificate Owner), a statement

                                       33

<PAGE>   34

prepared by the Servicer containing the information which is required to be
contained in the statement to Series 2000-A Certificateholders as set forth in
paragraph (a) above, aggregated for such calendar year or the applicable portion
thereof during which such Person (or any related Certificate Owner) was a Series
2000-A Certificateholder (or Certificate Owner), together with other information
as is required to be provided by an issuer of indebtedness under the Internal
Revenue Code and such other customary information as is necessary to enable the
Series 2000-A Certificateholders (or Certificate Owners) to prepare their tax
returns. Such obligation of the Trustee shall be deemed to have been satisfied
to the extent that substantially comparable information shall be provided by the
Trustee pursuant to any requirements of the Internal Revenue Code as from time
to time in effect.

                                   ARTICLE VI

                               Amortization Events

     SECTION 6.1. Additional Amortization Events. The occurrence of any of the
following events shall be deemed to be an Early Amortization Event solely with
respect to Series 2000-A:

         (a) on any Determination Date, the average of the Monthly Payment Rates
     for the three preceding Collection Periods is less than 20%;

         (b) on any Determination Date, the Available Subordinated Amount for
     the next Distribution Date will be less than the Required Subordinated
     Amount on such Determination Date, after giving effect to the distributions
     to be made on the next Distribution Date;

         (c) any Service Default with respect to Series 2000-A occurs;

         (d) on any Determination Date, as of the last day of the preceding
     Collection Period, the aggregate amount of Principal Receivables relating
     to Used Vehicles exceeds 20% of the Pool Balance on such last day;

         (e) any Carry-over Amount or any Additional Carry-over Amount is
     outstanding on six consecutive Distribution Dates;

         (f) the outstanding principal amount of the Series 2000-A Certificates
     is not repaid by the Series 2000-A Expected Payment Date;

         (g) the Trust shall file a petition commencing a voluntary case under
     any chapter of the Federal bankruptcy laws; or the Trust shall file a
     petition or answer or consent seeking reorganization, arrangement,
     adjustment, or composition under any other similar applicable Federal law,
     or shall consent to the filing of any such petition, answer, or consent; or
     the Trust shall appoint, or consent to the appointment of, a custodian,
     receiver, liquidator, trustee, assignee, sequestrator or other similar
     official in bankruptcy or insolvency of it or of any substantial part of
     its property; or the Trust shall make an assignment for the benefit of
     creditors, or shall admit in writing its inability to pay its debts
     generally as they become due; and

                                       34
<PAGE>   35

         (h) any order for relief against the Trust shall have been entered by a
     court having jurisdiction in the premises under any chapter of the Federal
     bankruptcy laws, and such order shall have continued undischarged or
     unstayed for a period of 60 days; or a decree or order by a court having
     jurisdiction in the premises shall have been entered approving as properly
     filed a petition seeking reorganization, arrangement, adjustment, or
     composition of the Trust under any other similar applicable Federal law,
     and such decree or order shall have continued undischarged or unstayed for
     a period of 120 days; or a decree or order of a court having jurisdiction
     in the premises for the appointment of a custodian, receiver, liquidator,
     trustee, assignee, sequestrator, or other similar official in bankruptcy or
     insolvency of the Trust or of any substantial part of its property, or for
     the winding up or liquidation of its affairs, shall have been entered, and
     such decree or order shall have remained in force undischarged or unstayed
     for a period of 120 days.

     The Trustee agrees that upon gaining knowledge of the occurrence of any
event described in Section 9.01 of the Agreement or Section 6.01 of this Series
Supplement it shall (a) promptly provide notice to the Rating Agencies of the
occurrenc e of such event and (b) notify the Series 2000-A Certificateholders of
the occurrence of such event within 45 days of the expiration of the applicable
grace period, if any. In the case of any event described in Sections 9.01(f) or
(g) of the Agreement or Section 6.01(c) of this Series Supplement, an Early
Amortization Event with respect to Series 2000-A will be deemed to have occurred
only if, after the applicable grace period described in such Sections, if any,
either the Trustee or Series 2000-A Certificateholders evidencing more than 50%
of the aggregate unpaid principal amount of the Series 2000-A Certificates by
written notice to the Seller and the Servicer (and the Trustee, if given by
Series 2000-A Certificateholders) declare that an Early Amortization Event has
occurred as of the date of such notice. In the case of any other Early
Amortization Event, such Early Amortization Event will be deemed to have
occurred immediately upon the occurrence of such event, without any notice or
other action on the part of the Trustee or the Series 2000-A Certificateholders.

     In the case of any Early Amortization Event described in Sections 9.01(a)
or (f) of the Agreement or this Section 6.01, other than Sections 6.01(f), (g)
or (h), provided that (i) no other Early Amortization Event (other than an Early
Amortization Event which has resulted in an Early Amortization Period which has
terminated as described in clause (c) or clause (d) of the definition thereof in
this Series Supplement) has occurred and (ii) the scheduled termination of the
Revolving Period has not occurred, the Trustee agrees that it shall request
written confirmation from Standard & Poor's that the termination of the Early
Amortization Period caused by the occurrence of such Early Amortization Event
will not result in the downgrading or withdrawal of such entity's rating of the
Series 2000-A Certificates.

     The Trustee further agrees that, where applicable, it shall promptly notify
the Series 2000-A Certificateholders that it has received the written
confirmation referred to in the preceding paragraph, and that the Series 2000-A
Certificateholders may elect to terminate the related Early Amortization Period.

                                   ARTICLE VII

                               Optional Repurchase

                                       35

<PAGE>   36

     SECTION 7.1. Optional Repurchase.

         (a) On any Distribution Date occurring after the date on which the
Invested Amount is reduced to $75,000,000 or less, the Servicer shall have the
option to purchase the entire Series 2000-A Certificateholders' Interest, at a
purchase price equal to the Reassignment Amount for such Distribution Date.

         (b) The Servicer shall give the Seller and the Trustee at least 10
days' prior written notice of the Distribution Date on which the Servicer
intends to exercise one of the purchase options described above. Not later than
12:00 noon, New York City time, on such Distribution Date the Servicer shall
deposit the Reassignment Amount into the Collection Account in immediately
available funds. Such purchase options are subject to payment in full of the
Reassignment Amount. The Reassignment Amount shall be distributed as set forth
in Section 8.01(d).

         (c) If at the time the Servicer exercises one of its purchase options
hereunder the Servicer's long-term unsecured debt has a rating lower than Baa3
by Moody's, the Servicer shall deliver to the Trustee on such Distribution Date
an opinion of Counsel (which must be an independent outside counsel) to the
effect that, in reliance on certain certificates to the effect that the Series
2000-A Certificateholders' Interest purchased by the Servicer constitutes fair
value for the consideration paid therefor and as to the solvency of the
Servicer, the purchase of the Series 2000-A Certificateholders Interest would
not be considered a fraudulent conveyance under applicable law.

                                  ARTICLE VIII

                               Final Distributions

     SECTION 8.1. Sale of Certificateholders' Interest Pursuant to Section
2.03 of the Agreement; Distributions Pursuant to Section 7.01 of this Series
Supplement or Section 2.03 or 12.02(c) of the Agreement.

         (a) The amount to be paid by the seller to the Collection Account with
respect to Series 2000-A in connection with a purchase of the Series 2000-A
Certificateholders' Interest pursuant to Section 2.03 of the Agreement shall
equal the Reassignment Amount for the Distribution Date on which such repurchase
occurs.

         (b) With respect to the Reassignment Amount deposited into the
Collection Account pursuant to Section 2.03 of the Agreement, the Trustee shall,
not later than 12:00 noon, New York City time, on the Distribution Date on which
such amounts are deposited (or, if such date is not a Distribution Date, on the
immediately following Distribution Date) (in the priority set forth below): (x)
deposit the Invested Amount on such date into the Principal Funding Account and
(y) deposit the amount of accrued and unpaid interest on the unpaid balance of
the Series 2000-A Certificates, plus the amount of Additional Interest, if any,
for such Distribution Date plus the amount of any Additional Interest previously
due but not paid to Series 2000-A Certificateholders on a prior Distribution
Date, plus the amount of any Carry-over Amount for such Distribution

                                       36

<PAGE>   37

Date and any Carry-over Amount previously due but not paid to Series 2000-A
Certificateholders on a prior Distribution Date, plus the amount of any
Additional Carry-over Amount for such Distribution Date, plus the amount of any
Additional Carry-over Amount previously due but not paid to Series 2000-A
Certificateholders on any prior Distribution Date, up to the Reassignment Amount
for Series 2000-A.

         (c) With respect to any Termination Proceeds deposited into the
Collection Account pursuant to Section 12.02(c) of the Agreement, the Trustee
shall, not later than 12:00 noon, New York City time, on the Distribution Date
on which such amounts are deposited (or, if such date is not a Distribution
Date, on the immediately following Distribution Date) (in the priority set forth
below): first, (x) deposit the Invested Amount on such date into the Principal
Funding Account and (y) deposit the amount of accrued and unpaid interest on the
unpaid balance of the Series 2000-A Certificates, plus the amount of Additional
Interest, if any, for such Distribution Date, plus the amount of any Additional
Interest previously due but not paid to Series 2000-A Certificateholders on a
prior Distribution Date, plus the amount of any Carry-over Amount for such
Distribution Date, plus the amount of any Carry-over Amount previously due but
not paid to Series 2000-A Certificateholders on any prior Distribution Date,
plus the amount of any Additional Carry-over Amount for such Distribution Date,
plus the amount of any Additional Carry-over Amount previously due but not paid
to Series 2000-A Certificateholders on a prior Distribution Date, up to the
Reassignment Amount and (ii) second, pay the remainder of any Termination
Proceeds to the Seller.

         (d) With respect to the Reassignment Amount deposited into the
Collection Account pursuant to Section 7.01 of this Series Supplement, the
Trustee shall, not later than 12:00 noon, New York City time, on the
Distribution Date on which such amounts are deposited (in the priority set forth
below): (x) deposit the Invested Amount on such date into the Principal Funding
Account and (y) deposit the amount of accrued and unpaid interest on the unpaid
balance of the Series 2000-A Certificates, plus the amount of Additional
Interest, if any, for such Distribution Date, plus the amount of any Additional
Interest previously due but not paid to Series 2000-A Certificateholders on a
prior Distribution Date, plus the amount of any Carry-over Amount for such
Distribution Date, plus the amount of any Carry-over Amount previously due but
not paid to Series 2000-A Certificateholders on any prior Distribution Date,
plus the amount of any Additional Carry-over Amount for such Distribution Date,
plus the amount of any Additional Carry-over Amount previously due but not paid
to Series 2000-A Certificateholders on a prior Distribution Date, up to the
Reassignment Amount.

         (e) Notwithstanding anything to the contrary in this Series Supplement
or the Agreement, the entire amount deposited in the Principal Funding Account
pursuant to Section 7.01 or 8.01 and all other amounts on deposit therein shall
be distributed in full to the Series 2000-A Certificateholders on such date and
any distribution made pursuant to paragraph (c) above shall be deemed to be a
final distribution pursuant to Section 12.02 of the Agreement with respect to
the Series 2000-A Certificates.

     SECTION 8.2. Distribution of Proceeds of Sale, Disposition or Liquidation
of the Receivables Pursuant to Section 9.02 of the Agreement.

                                       37

<PAGE>   38

         (a) Not later than 12:00 noon, New York City time, on the Distribution
Date following the date on which the Insolvency Proceeds are deposited into the
Collection Account pursuant to Section 9.02(b) of the Agreement, the Trustee
shall first (in each case, after giving effect to any deposits and distributions
otherwise to be made on such Distribution Date) deduct an amount equal to the
Invested Amount on such Distribution Date from the portion of the Insolvency
Proceeds allocated to Allocable Principal Collections and deposit such amount in
the Principal Funding Account; provided that the amount of such deposit shall
not exceed the product of (x) the portion of the Insolvency Proceeds allocated
to Allocable Principal Collections and (y) 100% minus the Excess Seller's
Percentage with respect to the related Collection Period. The remainder of the
portion of the Insolvency Proceeds allocated to Allocable Principal Collections
shall be allocated to the Seller's Interest and shall be released to the Seller
on such Distribution Date.

         (b) Not later than 12:00 noon, New York City time, on such Distribution
Date, the Trustee shall first (in each case, after giving effect to any deposits
and distributions otherwise to be made on such Distribution Date) deduct an
amount equal to the sum of (i) Monthly Interest for such Distribution Date, (ii)
any Monthly Interest previously due but not distributed on a prior Distribution
Date, (iii) the amount of Additional Monthly Interest, if any, for such
Distribution Date and any Additional Monthly Interest previously due but not
distributed on a prior Distribution Date, (iv) any Carry-over Amount for such
Distribution Date and any Carry-over Amount previously due but not distributed
to the Series 2000-A Certificateholders on a prior Distribution Date and (v) the
amount of any Additional Carry-over Amount for such Distribution Date and any
Additional Carry-over Amount previously due but not distributed to the Series
2000-A Certificateholders on a prior Distribution Date, from the portion of the
Insolvency Proceeds allocated to Allocable Non-Principal Collections and deposit
such amount in the Collection Account with such funds designated by the Trustee
as being held for the benefit of the Series 2000-A Certificateholders; provided
that the amount of such distribution shall not exceed (x) the product of (A) the
portion of the Insolvency Proceeds allocated to Allocable Non-Principal
Collections and (B) 100% minus the Excess Seller's Percentage. The remainder of
the portion of the Insolvency Proceeds allocated to Allocable Non-Principal
Collections shall be allocated to the Seller's Interest and shall be released to
the Seller on such Distribution Date.

         (c) Notwithstanding anything to the contrary in this Series Supplement
or in the Agreement, the entire amount deposited in the Principal Funding
Account and the Collection Account pursuant to this Section and all other
amounts on deposit therein shall be distributed in full to the Series 2000-A
Certificateholders on the Distribution Date on which funds are deposited
pursuant to this Section (or, if not so deposited on a Distribution Date, on the
immediately following Distribution Date) and any distribution made pursuant to
this Section shall be deemed to be a final distribution pursuant to Section
12.02 of the Agreement with respect to Series 2000-A.

                                   ARTICLE IX

                            Miscellaneous Provisions

     SECTION 9.1. Certain Permitted Actions, Amendments to the Agreement;
Additional Covenants.

                                       38

<PAGE>   39

         (a) Notwithstanding anything to the contrary in the Agreement, funds on
deposit in the Collection Account may be invested in any Eligible Investments
(as that term is defined in this Series Supplement) that will mature so that
funds will be available on or before the following Distribution Date.

         (b) Notwithstanding anything to the contrary in the Agreement,
including Section 2.07(c) thereof, the Seller shall not be required to make any
deposit to the Collection Account in respect of the Repurchased Receivables
Price of any receivables repurchased by the Seller from the Trust pursuant to
such Section.

         (c) Notwithstanding anything to the contrary contained herein or in the
Agreement, the Seller shall have the right to require the reassignment to it of
all the Trust's right, title and interest in, to and under the Receivables then
existing and thereafter created, all monies due or to become due and all amounts
received with respect thereto and all proceeds thereof in or with respect to the
Accounts ("Automatic Removed Accounts") designated by the Seller, upon
satisfaction of the following conditions: (a) on or before the fifth business
day immediately preceding the date upon which such Accounts are to be removed,
the Seller shall have given the Trust, each Enhancement Provider and the Rating
Agencies a Removal Notice specifying the date for removal of the Automatic
Removed Accounts (the "Automatic Removal Date"); (b) on or prior to the date
that is five Business Days after the Automatic Removal Date, the Seller shall
have delivered to the Trustee a computer file or microfiche or written list
containing a true and complete list of the Automatic Removed Accounts specifying
for each such Account, as of the removal notice date, its account number and the
aggregate amount of Receivables outstanding in such Account; (c) the Seller
shall have represented and warranted as of each Automatic Removal Date that the
list of Automatic Removed Accounts delivered pursuant to clause (b) above, as of
the Automatic Removal Date, is true and complete in all material respects; (d)
the Trustee shall have received confirmation from each Rating Agency that such
removal will not result in a reduction or withdrawal of such Rating Agency's
rating of any outstanding Series or Class of Certificates; (e) the Seller shall
have delivered to the Trustee, each Rating Agency and any Enhancement Providers
an officers' certificate, dated the Automatic Removal Date, to the effect that
the Seller reasonably believes that such removal will not cause an early
amortization event to occur with respect to any Series; and (f) the Seller shall
have delivered to the Trustee, each Rating Agency and any Enhancement Providers
a Tax Opinion, dated the Automatic Removal Date, with respect to such removal.
Notwithstanding the provisions described above, from and after the date on which
no Series issued prior to March 10, 1999, is outstanding, the conditions
specified in (a) that relate to Enhancement Providers and Rating Agencies and
the conditions specified in (d), (e) and (f) above will not be required if all
of the Accounts to be removed have liquidated and have zero balances.

     Upon satisfaction of the above conditions, on the Automatic Removal Date
all the right, title and interest of the Trust in and to the Receivables arising
in the Automatic Removed Accounts, all monies due and to become due and all
amounts received with respect thereto and all proceeds thereof shall be deemed
removed from the Trust for all purposes.

         (d) Notwithstanding anything to the contrary herein or in the
Agreement, subject to the other limitations described in Section 4.03 of the
Agreement, CFC need not deposit

                                       39

<PAGE>   40

collections with respect to any Collection Period in the Collection Account
until the related Distribution Date.

         (e) Unless otherwise agreed to by the Rating Agencies, notwithstanding
anything to the contrary herein or in the Agreement, the Seller may from time to
time, at its discretion, and subject only to the limitations specified in this
paragraph, designate Additional Accounts to be added to the Trust. (Additional
Accounts designated to be added to the Trust in accordance with the provisions
of this Section 10.01(e) are referred to herein as "Automatic Additional
Accounts".) On the Addition Date with respect to any Automatic Additional
Accounts, the Trust shall purchase the Receivables in such Automatic Additional
Accounts (and such Automatic Additional Accounts shall be deemed to be Accounts
for purposes of the Agreement) as of the close of business on the applicable
Additional Cut-Off Date, subject to the satisfaction of the following
conditions:

                  (i) such Automatic Additional Accounts shall be Eligible
     Accounts;

                  (ii) the Seller shall, to the extent required by Section 4.03
     of the Agreement, have deposited in the Collection Account all Collections
     with respect to such Automatic Additional Accounts since the Additional
     Cut-Off Date;

                  (iii) no selection procedures believed by the Seller to be
     adverse to the interests of the Series 2000-A Certificateholders were used
     in selecting such Automatic Additional Accounts,

                  (iv) as of each of the Additional Cut-Off Date and the
     Addition Date, no Insolvency Event with respect to CFC or the Seller shall
     have occurred nor shall the transfer of the Receivables arising in the
     Automatic Additional Accounts to the Trust have been made in contemplation
     of the occurrence thereof;

                  (v) the addition of the Receivables arising in the Automatic
     Additional Accounts shall not cause an early amortization event or any
     event that, after the giving of notice or the lapse of time, would
     constitute a early amortization event to occur with respect to any Series;

                  (vi) on or before each Addition Date with respect to Automatic
     Additional Accounts, the Seller shall have delivered to the Trustee and the
     Rating Agencies (A) an Opinion of Counsel with respect to the Receivables
     in the Automatic Additional Accounts substantially in the form of Exhibit
     G-2 to the Agreement and (B) a Tax Opinion with respect to such addition;

                  (vii) within ten Business Days of the date on which any such
     Receivables are added to the Trust, the Seller shall have delivered to the
     Trustee a written assignment and a computer file or a microfiche list
     containing a true and complete list of the related Automatic Additional
     Accounts specifying for each such Account its account number, the
     collection status, the aggregate amount outstanding in such Account and the
     aggregate amount of Principal Receivables outstanding in such Account; and

                                       40

<PAGE>   41

                  (viii) the Seller shall have delivered to the Trustee an
     Officer's Certificate of the Seller, dated the Addition Date, to the effect
     that conditions (i) through (v) and (vii) above have been satisfied.

     The Seller hereby represents and warrants to the Trust as of the related
Addition Date as to the matters relating to it set forth in paragraphs (iii) and
(iv) above and that the file or list described below is, as of the applicable
Additional Cut-Off Date, true and complete in all material respects.

     In connection with the designation of Automatic Additional Account to be
added to the Trust, the Seller shall deliver to the Trustee (i) the computer
file or microfiche list required to be delivered pursuant to Section 2.01 of the
Agreement with respect to such Automatic Additional Accounts and (ii) a duly
executed, written Assignment (including an acceptance by the Trustee for the
benefit of the Certificateholders), substantially in the form of Exhibit B to
the Agreement (the "Assignment").

     Unless each Rating Agency otherwise consents, the number of Automatic
Additional Accounts added to the Trust with respect to any of the three
consecutive Collection Periods beginning in January, April, July and October of
each calendar year shall not exceed 8% of the number of Accounts as of the first
day of the calendar year during which such Collection Periods commence and the
number of Automatic Additional Accounts designated during any such calendar year
shall not exceed 20% of the number of Accounts as of the first day of such
calendar year. On or before the first business day of each Collection Period
beginning in January, April, July and October of each calendar year, the Seller
shall have requested and obtained notification from each Rating Agency of any
limitations to the right of the Seller to designate Eligible Accounts as
Automatic Additional Accounts during any period which includes such Collection
Period. To the extent that Automatic Additional Accounts have been added to the
Trust during the three consecutive Collection Periods. ending in the calendar
month prior to such date, on or before January 31, April 30, July 31, October 31
of each calendar year, the Trustee shall have received confirmation from each
Rating Agency that the addition of all Automatic Additional Accounts included as
Accounts during the three consecutive Collection Periods ending in the calendar
month prior to such date shall not have resulted in any applicable Rating Agency
reducing or withdrawing its rating of any outstanding Series or Class of
Certificates. If such Rating Agency confirmation with respect to any Automatic
Additional Accounts is not so received, such Automatic Additional Accounts will
be removed from the Trust.

         (f) Each Holder of a Series 2000-A Certificate, by such Holder's
acceptance thereof, will be deemed to have consented to an amendment to the
Agreement that incorporates the provisions of Sections 9.01(a), 9.01(b),
9.01(c), 9.01(d) and 9.01(e), it being understood that no such amendment shall
be effective unless and until, with respect to the last sentence of Section
9.01(c), each Series of Investor Certificates issued prior to March 10, 1999
shall no longer be outstanding or shall have consented to such amendment in
accordance with the Agreement.

         (g) Except for the conveyance hereunder to the Trustee, the Seller will
not sell, pledge, assign or transfer to any other Person any rights it might
have to funds on deposit in the Reserve Fund, the Principal Funding Account, the
Excess Funding Account or the Yield

                                       41

<PAGE>   42

Supplement Account, or Investment Proceeds with respect thereto.

         (h) Notwithstanding anything to the contrary in Section 12.02(c) of the
Agreement, the following shall be applicable to the Series 2000-A Certificates:

     In the event that the Invested Amount is greater than zero on the
Termination Date (after giving effect to deposits and distributions otherwise to
be made on the Termination Date), the Trustee will sell or cause to be sold on
the Termination Date Receivables (or interests therein) in an amount equal to
the sum of (i) 110% of the Invested Amount on the Termination Date (after giving
effect to such deposits and distributions) and (ii) the Available Subordinated
Amount on the preceding Determination Date (after giving effect to the
allocations, distributions, withdrawals and deposits to be made on the
Distribution Date following such Determination Date); provided , however, that
in no event shall such amount exceed the product of the Series 2000-A Allocation
Percentage (for the Collection Period in which the Termination Date occurs) of
Receivables on the Termination Date. The proceeds (the "Termination Proceeds")
from such sale shall be immediately deposited into the Collection Account for
the benefit of the Series 2000-A Certificateholders.

     SECTION 9.2. Ratification of Agreement. As supplemented by this Series
Supplement, the Agreement is in all respects ratified and confirmed and the
Agreement as so supplemented by this Series Supplement shall be read, taken and
construed as one and the same instrument.

     SECTION 9.3. Counterparts. This Series Supplement may be executed in two
or more counterparts (and by different parties on separate counterparts) each of
which shall be an original, but all of which together shall constitute one and
the same instrument.

     SECTION 9.4. Dealer Concentrations. So long as this Series 2000-A shall be
outstanding, on the last day of each Collection Period, the Servicer shall
determine if the aggregate amount of Principal Receivables due from any Dealer
or group of affiliated Dealers on such date is greater than 1.5% of the Pool
Balance on such date. The Servicer shall promptly provide the Trustee a report
setting forth the basis for such determination. The Trustee upon request from
any Rating Agency will make such report available to such Rating Agency.

     SECTION 9.5. The Certificates. Notwithstanding anything to the contrary in
the Agreement, each of the Series 2000-A Certificates may be executed by manual
or facsimile signature on behalf of the Seller by any assistant secretary of the
Seller.

     SECTION 9.6. GOVERNING LAW. THIS SERIES SUPPLEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                       42

<PAGE>   43

     IN WITNESS WHEREOF, the Seller, the Servicer and the Trustee have caused
this Series Supplement to be duly executed by their respective officers as of
the day and year first above written.

                                     U.S. AUTO RECEIVABLES COMPANY,
                                     Seller,

                                        by
                                           /s/ A. Pisano
                                           -------------

                                     CHRYSLER FINANCIAL COMPANY L.L.C.,
                                     Servicer,

                                        by
                                           /s/ A. Pisano
                                           -------------

                                     THE BANK OF NEW YORK,
                                     Trustee,

                                        by
                                           /s/ Mauro Palladino
                                           -------------------

                                       43
<PAGE>   44

                                                                     EXHIBIT A-1

                              [FORM OF CERTIFICATE]

                               FACE OF CERTIFICATE

                                                 Initial Invested Amount1:
REGISTERED
                                                 $[                    ]
Certificate No. R-[     ]
                                                 CUSIP NO. [                ]

Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the issuer or its
agent for registration of transfer, exchange, or payment, and any certificate
issued is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

                          CARCO AUTO LOAN MASTER TRUST

               FLOATING RATE AUTO LOAN ASSET BACKED CERTIFICATES,
                                  SERIES 2000-A

              evidencing a fractional undivided interest in certain
                                  assets of the

                          CARCO AUTO LOAN MASTER TRUST

the corpus of which consists primarily of wholesale (i.e., dealer floorplan)
receivables (the "Receivables") generated from time to time in the ordinary
course of business in a portfolio of revolving financing arrangements (the
"Accounts") of Chrysler Financial Company L.L.C. meeting certain eligibility
criteria. This certificate (a "Certificate") does not represent an interest in,
or obligation of, U.S. Auto Receivables Company (the "Seller" or "USA"),
Chrysler Financial Company L.L.C. or any affiliate thereof.

     Unless the certificate of authentication hereon has been executed by or on
behalf of the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Pooling and Servicing Agreement referred to on
the reverse side hereof or be valid for any purpose.

----------
1 Denominations of $1,000 and integral multiples of $1,000 in excess thereof

<PAGE>   45

     THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

     IN WITNESS WHEREOF, the Seller has caused this Certificate to be duly
executed.

                                    U.S. AUTO RECEIVABLES COMPANY,

                                       by

                                          Name:
                                          Title:

Dated:

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Certificates described in the within-mentioned Pooling
and Servicing Agreement.

THE BANK OF NEW YORK
as Trustee,

   by

     Authorized Officer

                                       45

<PAGE>   46

                             REVERSE OF CERTIFICATE

     This certifies that Cede & Co. (the "Series 2000-A Certificateholder"), is
the registered owner of a fractional undivided interest in certain assets of the
CARCO AUTO LOAN MASTER TRUST (the "Trust") created pursuant to a Pooling and
Servicing Agreement dated as of May 31, 1991, as assigned by Chrysler Auto
Receivables Company to U.S. Auto Receivables Company (the "Seller") on August 8,
1991 (as assigned and as amended and supplemented from time to time, the "P&S"),
among the Seller, Chrysler Credit Corporation, which has been succeeded by
Chrysler Financial Company L.L.C., as servicer (the "Servicer"), and
Manufacturers and Traders Trust Company, which has been succeeded by The Bank of
New York, as trustee (the "Trustee"), as supplemented by the Series 2000-A
Supplement dated as of April 4, 2000 among the Seller, the Servicer and the
Trustee (the "Series Supplement"), that are allocated to the Series 2000-A
Certificateholders' Interest pursuant to the P&S and the Series Supplement. The
P&S and the Series Supplement are hereinafter collectively referred to as the
Pooling and Servicing Agreement. The corpus of the Trust will include (a) all of
the Seller's right, title and interest in, to and under the Receivables in each
Account and all Collateral Security with respect thereto owned by the Seller at
the close of business on the Cut-Off Date, in the case of the Initial Accounts,
and on the applicable Additional Cut-Off Date, in the case of Additional
Accounts, and all monies due or to become due and all amounts received with
respect thereto and all proceeds (including "proceeds" as defined in Section
9-306 of the UCC as in effect in the State of Michigan and Recoveries) thereof,
(b) all of the Seller's rights, remedies, powers and privileges with respect to
such Receivables under the Receivables Purchase Agreement, (c) all of the
Seller's right, title and interest in, to and under the Receivables in each
Account (other than any newly created Receivables in any Designated Account) and
all Collateral Security with respect thereto owned by the Seller at the close of
business on each Transfer Date and not theretofore conveyed to the Trust, all
monies due or to become due and all amounts received with respect thereto and
all proceeds (including "proceeds" as defined in Section 9-306 of the UCC as in
effect in the State of Michigan and Recoveries) thereof, (d) all monies on
deposit in, and Eligible Investments or other investments credited to, the
Collection Account or any Series Account, (e) any Enhancements and (f) all other
assets and interests constituting the Trust. In addition to the Certificates,
the Seller's Certificate will be issued pursuant to the Pooling and Servicing
Agreement which will represent the Seller's Interest in the Trust. The Seller's
Certificate will represent the interest in the Trust Assets not represented by
the Investor Certificates.

     The Receivables consist of advances made directly or indirectly by Chrysler
Financial Company L.L.C. to domestic automobile dealers franchised by
DaimlerChrysler Corporation or any other automobile manufacturers.

     Subject to the terms and conditions of the Agreement, the Seller may from
time to time direct the Trustee, on behalf of the Trust, to issue one or more
new Series of Investor Certificates, which will represent fractional undivided
interests in certain of the Trust Assets.

     This Certificate is issued under and is subject to the terms, provisions
and conditions of the Pooling and Servicing Agreement to which, as amended and
supplemented from time to time, the Series 2000-A Certificateholder by virtue of
the acceptance hereof assents and is bound.

                                       46

<PAGE>   47

Although a summary of certain provisions of the Pooling and Servicing Agreement
is set forth below, this Certificate does not purport to summarize the Pooling
and Servicing Agreement and reference is made to the Pooling and Servicing
Agreement for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby and the rights, duties and
obligations of the Trustee. A copy of the Pooling and Servicing Agreement
(without schedules and exhibits) may be requested from the Trustee by writing to
the Trustee at The Bank of New York, 101 Barclay Street, New York, New York
10286, Attention: Corporate Trust Office. To the extent not defined herein, the
capitalized terms used herein have the meanings ascribed to them in the Pooling
and Servicing Agreement.

    The Seller has entered into the Pooling and Servicing Agreement and the
Series 2000-A Certificates have been (or will be) issued with the intention that
the Series 2000-A Certificates will qualify under applicable tax law as
indebtedness of the Seller secured by the Receivables. The Seller, each
Beneficiary and each Certificateholder and Certificate Owner, by the acceptance
of its Certificate or Book-Entry Certificate, as applicable, agrees to treat the
Series 2000-A Certificates as indebtedness of the Seller secured by the
Receivables for Federal income taxes, state and local income, single business
and franchise taxes and any other taxes imposed on or measured by income.

    On each Distribution Date, the Trustee shall distribute to each Series
2000-A Certificateholder of record at the close of business on the day preceding
such Distribution Date (each a "Record Date") such Certificateholder's pro rata
share (based on the aggregate fractional undivided interest represented by the
Series 2000-A Certificates held by such Certificateholder, except as otherwise
provided in the Pooling and Servicing Agreement) of such amounts on deposit in
the Collection Account and any Series Account as are payable in respect of the
Series 2000-A Certificates pursuant to the Pooling and Servicing Agreement.
Distributions with respect to this Certificate will be made by the Trustee by
check mailed to the address of the Certificateholder of record appearing in the
Certificate Register without the presentation or surrender of this Certificate
or the making of any notation thereon (except for the final distribution in
respect of this Certificate) except that with respect to Series 2000-A
Certificates registered in the name of a Depository, including Cede & Co., the
nominee for The Depository Trust Company, distributions will be made in
immediately available funds. Final payment of this Certificate will be made only
upon presentation and surrender of this Certificate at the office or agency
specified in the notice of final distribution delivered by the Trustee to the
Series 2000-A Certificateholder in accordance with the Pooling and Servicing
Agreement.

    On the Distribution Date on which the outstanding principal amount of
the Series 2000-A Certificates will be reduced to $75,000,000 or less, the
Servicer shall have the option to purchase the entire Series 2000-A
Certificateholders' Interest in the Trust at a purchase price equal to the
Reassignment Amount using funds on deposit in the Principal Funding Account and
the Excess Funding Account and amounts on deposit in the Collection Account as
are payable to the Series 2000-A Certificateholders or, to the extent of any
insufficiency of such funds (the "Insufficiency Amount"), funds in an amount
equal to the Insufficiency Amount provided by Chrysler Financial Company L.L.C.

    This Certificate does not represent an obligation of, or an interest
in, DaimlerChrysler

                                       47

<PAGE>   48

Corporation, the Seller, the Servicer, or any affiliate of any of them and is
not insured or guaranteed by any governmental agency or instrumentality. This
Certificate is limited in right of payment to certain Collections with respect
to the Receivables (and certain other amounts), all as more specifically set
forth herein and in the Pooling and Servicing Agreement.

     The Pooling and Servicing Agreement may be amended from time to time
(including in connection with the issuance of a Supplemental Certificate) by the
Servicer, the Seller and the Trustee, without the consent of any of the Series
2000-A Certificateholders, so long as any such action shall not, as evidenced by
an opinion of Counsel, adversely affect in any material respect the interests of
the Certificateholders of any outstanding Series. The Trustee may, but shall not
be obligated to, enter into any such amendment which affects the Trustee's
rights, duties or immunities under the Pooling and Servicing Agreement or
otherwise. Notwithstanding anything contained therein to the contrary, the
Trustee, with the consent of any Enhancement Providers, may at any time and from
time to time amend, modify or supplement the form of Distribution Date
Statement.

     The Pooling and Servicing Agreement may also be amended from time to time
(including in connection with the issuance of a Supplemental Certificate) by the
Servicer, the Seller and the Trustee with the consent of the Holders of Investor
Certificates evidencing not less than 66-2/3% of the aggregate unpaid principal
amount of the certificates of the Investor Certificates of all adversely
affected Series, for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of the Pooling and Servicing
Agreement or of modifying in any manner the rights of the Investor
Certificateholders; provided, however, that no such amendment to the Pooling and
Servicing Agreement shall (i) reduce in any manner the amount of or delay the
timing of distributions to be made to Investor Certificateholders or deposits of
amounts to be so distributed without the consent of each such affected Investor
Certificateholder; (ii) change the definition or the manner of calculating any
Certificateholder's interest without the consent of each affected Investor
Certificateholder; (iii) reduce the amount available under any Enhancement
without the consent of each affected Investor Certificateholder; (iv) adversely
affect the rating of any Series or class by each Rating Agency without the
consent of the holders of certificates of such Series or class evidencing not
less than 66-2/3% of the aggregate unpaid principal amount of the Investor
Certificates of such Series or Class or (v) reduce the aforesaid percentage
required to consent to any such amendment without the consent of all Investor
Certificateholders. The Pooling and Servicing Agreement may not be amended in
any manner which adversely affects the interests of any Enhancement Provider
without its prior consent.

     As provided in the Pooling and Servicing Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register of the Trustee upon surrender of this Certificate
for registration of transfer at the office or agency maintained by the Trustee
in New York, New York, accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by the Holder hereof or such Holder's
attorney duly authorized, and thereupon one or more new Series 2000-A
Certificates of authorized denominations evidencing the same aggregate
fractional undivided interest will be issued to the designated transferee or
transferees.

     The Certificates are issuable only as registered Certificates without
coupons in

                                       48

<PAGE>   49

denominations specified in the Agreement.

      As provided in the Pooling and Servicing Agreement and subject to certain
limitations therein set forth, Series 2000-A Certificates are exchangeable for
new Series 2000-A Certificates evidencing like aggregate fractional undivided
interests as requested by the Certificateholder surrendering such Certificates.
No service charge may be imposed for any such exchange but the Trustee may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection therewith.

      The Servicer, the Trustee, the Transfer Agent and Registrar and any agent
of any of them, may treat the person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Servicer nor
the Trustee, the Transfer Agent and Registrar, nor any agent of any of them,
shall be affected by notice to the contrary except in certain circumstances
described in the Pooling and Servicing Agreement.

                                       49
<PAGE>   50

                                   ASSIGNMENT

Social Security or other identifying number of assignee

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

                         (name and address of assignee)

the within certificate and all rights thereunder, and hereby irrevocably
constitutes and appoints              , attorney, to transfer said certificate
on the books kept for registration thereof, with full power of substitution in
the premises.

  Dated:                                                                     *
                                                                        -----
                                                   Signature Guaranteed:

(*) NOTE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the reverse of the within Certificate in every
particular, without alteration, enlargement or any change whatsoever.

                                       50

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