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                                                                    EXHIBIT 10.4



                               SABA SOFTWARE, INC.
                        2000 EMPLOYEE STOCK PURCHASE PLAN


               The following constitute the provisions of the 2000 Employee
Stock Purchase Plan of Saba Software, Inc.

               1. Purpose. The purpose of the Plan is to provide employees of
the Company and its Designated Parents or Subsidiaries with an opportunity to
purchase Common Stock of the Company through accumulated payroll deductions. It
is the intention of the Company to have the Plan qualify as an "Employee Stock
Purchase Plan" under Section 423 of the Code. The provisions of the Plan,
accordingly, shall be construed so as to extend and limit participation in a
manner consistent with the requirements of that section of the Code.

               2. Definitions. As used herein, the following definitions shall
apply:

               (a) "Administrator" means either the Board or a committee of the
Board that is responsible for the administration of the Plan as is designated
from time to time by resolution of the Board.

               (b) "Applicable Laws" means the legal requirements relating to
the administration of employee stock purchase plans, if any, under applicable
provisions of federal securities laws, state corporate and securities laws, the
Code, the rules of any applicable stock exchange or national market system, and
the rules of any foreign jurisdiction applicable to participation in the Plan by
residents therein.

               (c) "Board" means the Board of Directors of the Company.

               (d) "Change in Control" means a change in ownership or control of
the Company effected through the direct or indirect acquisition by any person or
related group of persons (other than an acquisition from or by the Company or by
a Company-sponsored employee benefit plan or by a person that directly or
indirectly controls, is controlled by, or is under common control with, the
Company) of beneficial ownership (within the meaning of Rule 13d-3 of the
Exchange Act) of securities possessing more than fifty percent (50%) of the
total combined voting power of the Company's outstanding securities.

               (e) "Code" means the Internal Revenue Code of 1986, as amended.

               (f) "Common Stock" means the common stock of the Company.

               (g) "Company" means Saba Software, Inc., a Delaware corporation.

               (h) "Compensation" means an Employee's base salary, bonuses and
commissions from the Company or one or more Designated Parents or Subsidiaries,
including such amounts of base salary as are deferred by the Employee (i) under
a qualified cash or deferred arrangement described in Section 401(k) of the
Code, or (ii) to a plan qualified under Section 125 of the Code. Compensation
does



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not include overtime, annual awards, other incentive payments (except to the
extent expressly referenced in the first sentence), reimbursements or other
expense allowances, fringe benefits (cash or noncash), moving expenses, deferred
compensation, contributions (other than contributions described in the first
sentence) made on the Employee's behalf by the Company or one or more Designated
Parents or Subsidiaries under any employee benefit or welfare plan now or
hereafter established, and any other payments not specifically referenced in the
first sentence.

               (i) "Corporate Transaction" means any of the following
transactions:

                      (1) a merger or consolidation in which the Company is not
               the surviving entity, except for a transaction the principal
               purpose of which is to change the state in which the Company is
               incorporated;

                      (2) the sale, transfer or other disposition of all or
               substantially all of the assets of the Company (including the
               capital stock of the Company's subsidiary corporations) in
               connection with complete liquidation or dissolution of the
               Company;

                      (3) any reverse merger in which the Company is the
               surviving entity but in which securities possessing more than
               fifty percent (50%) of the total combined voting power of the
               Company's outstanding securities are transferred to a person or
               persons different from those who held such securities immediately
               prior to such merger; or

                      (4) acquisition by any person or related group of persons
               (other than the Company or by a Company-sponsored employee
               benefit plan) of beneficial ownership (within the meaning of Rule
               13d-3 of the Exchange Act) of securities possessing more than
               fifty percent (50%) of the total combined voting power of the
               Company's outstanding securities (whether or not in a transaction
               also constituting a Change in Control), but excluding any such
               transaction that the Administrator determines shall not be a
               Corporate Transaction

               (j) "Designated Parents or Subsidiaries" means the Parents or
Subsidiaries which have been designated by the Administrator from time to time
as eligible to participate in the Plan.

               (k) "Effective Date" means the effective date of the Registration
Statement relating to the Company's initial public offering of its Common Stock.
However, should any Designated Parent or Subsidiary become a participating
company in the Plan after such date, then such entity shall designate a separate
Effective Date with respect to its employee-participants.

               (l) "Employee" means any individual, including an officer or
director, who is an employee of the Company or a Designated Parent or Subsidiary
for purposes of Section 423 of the Code. For purposes of the Plan, the
employment relationship shall be treated as continuing intact while the
individual is on sick leave or other leave of absence approved by the
individual's employer. Where the period of leave exceeds ninety (90) days and
the individual's right to reemployment is not guaranteed either by statute or by
contract, the employment relationship will



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be deemed to have terminated on the ninety-first (91st) day of such leave, for
purposes of determining eligibility to participate in the Plan.

               (m) "Enrollment Date" means the first day of each Offer Period.

               (n) "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

               (o) "Exercise Date" means the last day of each Purchase Period.

               (p) "Fair Market Value" means, as of any date, the value of
Common Stock determined as follows:

                      (1) Where there exists a public market for the Common
               Stock, the Fair Market Value shall be (A) the closing price for a
               share of Common Stock for the last market trading day prior to
               the time of the determination (or, if no closing price was
               reported on that date, on the last trading date on which a
               closing price was reported) on the stock exchange determined by
               the Administrator to be the primary market for the Common Stock
               or the Nasdaq National Market, whichever is applicable or (B) if
               the Common Stock is not traded on any such exchange or national
               market system, the average of the closing bid and asked prices of
               a share of Common Stock on the Nasdaq Small Cap Market for the
               day prior to the time of the determination (or, if no such prices
               were reported on that date, on the last date on which such prices
               were reported), in each case, as reported in The Wall Street
               Journal or such other source as the Administrator deems reliable;

                      (2) In the absence of an established market of the type
               described in (1), above, for the Common Stock, and subject to
               (3), below, the Fair Market Value thereof shall be determined by
               the Administrator in good faith; or

                      (3) On the initial Effective Date of the Plan, the Fair
               Market Value shall be the price at which the Board, or if
               applicable, the Pricing Committee of the Board, and the
               underwriters agree to offer the Common Stock to the public in the
               initial public offering of the Common Stock.

               (q) "Offer Period" means an Offer Period established pursuant to
Section 4 hereof.

               (r) "Parent" means a "parent corporation," whether now or
hereafter existing, as defined in Section 424(e) of the Code.

               (s) "Participant" means an Employee of the Company or Designated
Parent or Subsidiary who is actively participating in the Plan.

               (t) "Plan" means this Employee Stock Purchase Plan.

               (u) "Purchase Period" means a period of approximately six months,
commencing on January 1 and July 1 of each year and terminating on the next
following June 30 or December



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31, respectively; provided, however, that the first Purchase Period shall
commence on the Effective Date and shall end on December 31, 2000.

               (v) "Purchase Price" shall mean an amount equal to 85% of the
Fair Market Value of a share of Common Stock on the Enrollment Date or on the
Exercise Date, whichever is lower.

               (w) "Reserves" means the sum of the number of shares of Common
Stock covered by each option under the Plan which have not yet been exercised
and the number of shares of Common Stock which have been authorized for issuance
under the Plan but not yet placed under option.

               (x) "Subsidiary" means a "subsidiary corporation," whether now or
hereafter existing, as defined in Section 424(f) of the Code.

               3. Eligibility.

               (a) General. Any individual who is an Employee on a given
Enrollment Date shall be eligible to participate in the Plan for the Offer
Period commencing with such Enrollment Date.

               (b) Limitations on Grant and Accrual. Any provisions of the Plan
to the contrary notwithstanding, no Employee shall be granted an option under
the Plan (i) if, immediately after the grant, such Employee (taking into account
stock owned by any other person whose stock would be attributed to such Employee
pursuant to Section 424(d) of the Code) would own stock and/or hold outstanding
options to purchase stock possessing five percent (5%) or more of the total
combined voting power or value of all classes of stock of the Company or of any
Parent or Subsidiary, or (ii) which permits the Employee's rights to purchase
stock under all employee stock purchase plans of the Company and its Parents or
Subsidiaries to accrue at a rate which exceeds Twenty-Five Thousand Dollars
($25,000) worth of stock (determined at the Fair Market Value of the shares at
the time such option is granted) for each calendar year in which such option is
outstanding at any time. The determination of the accrual of the right to
purchase stock shall be made in accordance with Section 423(b)(8) of the Code
and the regulations thereunder.

               (c) Other Limits on Eligibility. Notwithstanding Subsection (a),
above, the following Employees shall not be eligible to participate in the Plan
for any relevant Offer Period: (i) Employees whose customary employment is 20
hours or less per week; (ii) Employees whose customary employment is for not
more than five months in any calendar year; (iii) Employees who have been
employed for fewer than three business days; and (iv) Employees who are subject
to rules or laws of a foreign jurisdiction that prohibit or make impractical the
participation of such Employees in the Plan.

               4. Offer Periods.

               (a) The Plan shall be implemented through overlapping or
consecutive Offer Periods until such time as (i) the maximum number of shares of
Common Stock available for issuance under the Plan shall have been purchased or
(ii) the Plan shall have been sooner terminated in accordance with Section 19
hereof. The maximum duration of an Offer Period



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shall be twenty-seven (27) months. Initially, the Plan shall be implemented
through overlapping Offer Periods of twenty-four (24) months' duration
commencing each January 1 and July 1 following the Effective Date (except that
the initial Offer Period shall commence on the Effective Date and shall end on
June 30, 2002.

               (b) A Participant shall be granted a separate option for each
Offer Period in which he or she participates. The option shall be granted on the
Enrollment Date and shall be automatically exercised in successive installments
on the Exercise Dates ending within the Offer Period.

               (c) If on the first day of any Purchase Period in an Offer Period
in which a Participant is participating, the Fair Market Value of the Common
Stock is less than the Fair Market Value of the Common Stock on the Enrollment
Date of the Offer Period (after taking into account any adjustment during the
Offer Period pursuant to Section 18(a)), the Offer Period shall be terminated
automatically and the Participant shall be enrolled automatically in the new
Offer Period which has its first Purchase Period commencing on that date,
provided the Participant is eligible to participate in the Plan on that date and
has not elected to terminate participation in the Plan.

               (d) Except as specifically provided herein, the acquisition of
Common Stock through participation in the Plan for any Offer Period shall
neither limit nor require the acquisition of Common Stock by a Participant in
any subsequent Offer Period.

               5. Participation.

               (a) An eligible Employee may become a Participant in the Plan by
completing a subscription agreement authorizing payroll deductions in the form
of Exhibit A to this Plan and filing it with the designated payroll office of
the Company at least ten (10) business days prior to the Enrollment Date for the
Offer Period in which such participation will commence, unless a later time for
filing the subscription agreement is set by the Administrator for all eligible
Employees with respect to a given Offer Period.

               (b) Payroll deductions for a Participant shall commence with the
first partial or full payroll period beginning on the Enrollment Date and shall
end on the last complete payroll period during the Offer Period, unless sooner
terminated by the Participant as provided in Section 10.

               6. Payroll Deductions.

               (a) At the time a Participant files a subscription agreement, the
Participant shall elect to have payroll deductions made during the Offer Period
in amounts between one percent (1%) and not exceeding fifteen percent (15%) of
the Compensation which the Participant receives during the Offer Period.

               (b) All payroll deductions made for a Participant shall be
credited to the Participant's account under the Plan and will be withheld in
whole percentages only. A Participant may not make any additional payments into
such account.



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               (c) A Participant may discontinue participation in the Plan as
provided in Section 10, or may increase or decrease the rate of payroll
deductions during the Offer Period by completing and filing with the Company a
change of status notice in the form of Exhibit B to this Plan authorizing an
increase or decrease in the payroll deduction rate. Any increase or decrease in
the rate of a Participant's payroll deductions shall be effective with the first
full payroll period commencing ten (10) business days after the Company's
receipt of the change of status notice unless the Company elects to process a
given change in participation more quickly. A Participant's subscription
agreement (as modified by any change of status notice) shall remain in effect
for successive Offer Periods unless terminated as provided in Section 10. The
Administrator shall be authorized to limit the number of payroll deduction rate
changes during any Offer Period.

               (d) Notwithstanding the foregoing, to the extent necessary to
comply with Section 423(b)(8) of the Code and Section 3(b) herein, a
Participant's payroll deductions may be decreased to 0% at such time during any
Purchase Period which is scheduled to end during the current calendar year (the
"Current Purchase Period") that the aggregate of all payroll deductions which
were previously used to purchase stock under the Plan in a prior Purchase Period
which ended during that calendar year plus all payroll deductions accumulated
with respect to the Current Purchase Period equal $21,250. Payroll deductions
shall recommence at the rate provided in such Participant's subscription
agreement, as amended, at the beginning of the first Purchase Period which is
scheduled to end in the following calendar year, unless terminated by the
Participant as provided in Section 10.

               7. Grant of Option. On the Enrollment Date, each Participant
shall be granted an option to purchase (at the applicable Purchase Price) two
thousand (2000) shares of the Common Stock, subject to adjustment as provided in
Section 18 hereof; provided (i) that such option shall be subject to the
limitations set forth in Sections 3(b), 6 and 12 hereof, and (ii) the maximum
number of shares of Common Stock a Participant shall be permitted to purchase in
any Purchase Period shall be five hundred (500) shares, subject to adjustment as
provided in Section 18 hereof. Exercise of the option shall occur as provided in
Section 8, unless the Participant has withdrawn pursuant to Section 10, and the
option, to the extent not exercised, shall expire on the last day of the Offer
Period.

               8. Exercise of Option. Unless a Participant withdraws from the
Plan as provided in Section 10, below, the Participant's option for the purchase
of shares will be exercised automatically on each Exercise Date, by applying the
accumulated payroll deductions in the Participant's account to purchase the
number of full shares subject to the option by dividing such Participant's
payroll deductions accumulated prior to such Exercise Date and retained in the
Participant's account as of the Exercise Date by the applicable Purchase Price.
No fractional shares will be purchased; any payroll deductions accumulated in a
Participant's account which are not sufficient to purchase a full share shall be
carried over to the next Purchase Period or Offer Period, whichever applies, or
returned to the Participant, if the Participant withdraws from the Plan.
Notwithstanding the foregoing, any amount remaining in a Participant's account
following the purchase of shares on the Exercise Date due to the application of
Section 423(b)(8) of the Code or Section 7, above, shall be returned to the
Participant and shall not be carried over



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to the next Offer Period. During a Participant's lifetime, a Participant's
option to purchase shares hereunder is exercisable only by the Participant.

               9. Delivery. Upon receipt of a request from a Participant after
each Exercise Date on which a purchase of shares occurs, the Company shall
arrange the delivery to such Participant, as promptly as practicable, of a
certificate representing the shares purchased upon exercise of the Participant's
option. The Company may require each Participant to maintain an account at a
brokerage firm selected by the Administrator to which the Company shall make
such delivery; provided, however, that the Company shall deliver the
certificate directly to a Participant if such Participant so requests.

               10. Withdrawal; Termination of Employment.

               (a) A Participant may either (i) withdraw all but not less than
all the payroll deductions credited to the Participant's account and not yet
used to exercise the Participant's option under the Plan or (ii) terminate
future payroll deductions, but allow accumulated payroll deductions to be used
to exercise the Participant's option under the Plan at any time by giving
written notice to the Company in the form of Exhibit B to this Plan. If the
Participant elects withdrawal alternative (i) described above, all of the
Participant's payroll deductions credited to the Participant's account will be
paid to such Participant as promptly as practicable after receipt of notice of
withdrawal, such Participant's option for the Offer Period will be automatically
terminated, and no further payroll deductions for the purchase of shares will be
made during the Offer Period. If the Participant elects withdrawal alternative
(ii) described above, no further payroll deductions for the purchase of shares
will be made during the Offer Period, all of the Participant's payroll
deductions credited to the Participant's account will be applied to the exercise
of the Participant's option on the next Exercise Date, and after such Exercise
Date, such Participant's option for the Offer Period will be automatically
terminated. If a Participant withdraws from an Offer Period, payroll deductions
will not resume at the beginning of the succeeding Offer Period unless the
Participant delivers to the Company a new subscription agreement.

               (b) Upon termination of a Participant's employment relationship
(as described in Section 2(k)) at a time more than three (3) months from the
next scheduled Exercise Date, the payroll deductions credited to such
Participant's account during the Offer Period but not yet used to exercise the
option will be returned to such Participant or, in the case of his/her death, to
the person or persons entitled thereto under Section 14, and such Participant's
option will be automatically terminated. Upon termination of a Participant's
employment relationship (as described in Section 2(k)) within three (3) months
of the next scheduled Exercise Date, the payroll deductions credited to such
Participant's account during the Offer Period but not yet used to exercise the
option will be applied to the purchase of Common Stock on the next Exercise
Date, unless the Participant (or in the case of the Participant's death, the
person or persons entitled to the Participant's account balance under Section
14) withdraws from the Plan by submitting a change of status notice in
accordance with subsection (a) of this Section 10. In such a case, no further
payroll deductions will be credited to the Participant's account following the
Participant's termination of employment and the Participant's option under the
Plan will be automatically terminated after the purchase of Common Stock on the
next scheduled Exercise Date.



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               11. Interest. No interest shall accrue on the payroll deductions
credited to a Participant's account under the Plan.

               12. Stock.

               (a) Subject to adjustment upon changes in capitalization of the
Company as provided in Section 18, the maximum number of shares of Common Stock
which shall be made available for sale under the Plan shall be two million
(2,000,000) shares, plus an annual increase to be added on the first day of the
Company's fiscal year beginning in 2001 equal to the least of (i) two million
(2,000,000) shares, (ii) two percent (2%) of the outstanding shares on such
date, or (iii) a lesser number of shares determined by the Administrator. If on
a given Exercise Date the number of shares with respect to which options are to
be exercised exceeds the number of shares then available under the Plan, the
Administrator shall make a pro rata allocation of the shares remaining available
for purchase in as uniform a manner as shall be practicable and as it shall
determine to be equitable.

               (b) A Participant will have no interest or voting right in shares
covered by the Participant's option until such shares are actually purchased on
the Participant's behalf in accordance with the applicable provisions of the
Plan. No adjustment shall be made for dividends, distributions or other rights
for which the record date is prior to the date of such purchase.

               (c) Shares to be delivered to a Participant under the Plan will
be registered in the name of the Participant or in the name of the Participant
and his or her spouse.

               13. Administration. The Plan shall be administered by the
Administrator which shall have full and exclusive discretionary authority to
construe, interpret and apply the terms of the Plan, to determine eligibility
and to adjudicate all disputed claims filed under the Plan. Every finding,
decision and determination made by the Administrator shall, to the full extent
permitted by Applicable Law, be final and binding upon all persons.

               14. Designation of Beneficiary.

               (a) Each Participant will file a written designation of a
beneficiary who is to receive any shares and cash, if any, from the
Participant's account under the Plan in the event of such Participant's death.
If a Participant is married and the designated beneficiary is not the spouse,
spousal consent shall be required for such designation to be effective.

               (b) Such designation of beneficiary may be changed by the
Participant (and the Participant's spouse, if any) at any time by written
notice. In the event of the death of a Participant and in the absence of a
beneficiary validly designated under the Plan who is living (or in existence) at
the time of such Participant's death, the Company shall deliver such shares
and/or cash to the executor or administrator of the estate of the Participant,
or if no such executor or administrator has been appointed (to the knowledge of
the Administrator), the Administrator shall deliver such shares and/or cash to
the spouse (or domestic partner, as determined by the Administrator) of the
Participant, or if no spouse (or domestic partner) is known to the



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Administrator, then to the issue of the Participant, such distribution to be
made per stirpes (by right of representation), or if no issue are known to the
Administrator, then to the heirs at law of the Participant determined under in
accordance with Section 27.

               15. Transferability. Neither payroll deductions credited to a
Participant's account nor any rights with regard to the exercise of an option or
to receive shares under the Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 14 hereof) by the Participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be without
effect, except that the Administrator may treat such act as an election to
withdraw funds from an Offer Period in accordance with Section 10.

               16. Use of Funds. All payroll deductions received or held by the
Company under the Plan may be used by the Company for any corporate purpose, and
the Company shall not be obligated to segregate such payroll deductions.

               17. Reports. Individual accounts will be maintained for each
Participant in the Plan. Statements of account will be given to Participants at
least annually, which statements will set forth the amounts of payroll
deductions, the Purchase Price, the number of shares purchased and the remaining
cash balance, if any.

               18. Adjustments Upon Changes in Capitalization; Corporate
Transactions.

               (a) Adjustments Upon Changes in Capitalization. Subject to any
required action by the stockholders of the Company, the Reserves, the Purchase
Price, as well as any other terms that the Administrator determines require
adjustment shall be proportionately adjusted for (i) any increase or decrease in
the number of issued shares of Common Stock resulting from a stock split,
reverse stock split, stock dividend, combination or reclassification of the
Common Stock, (ii) any other increase or decrease in the number of issued shares
of Common Stock effected without receipt of consideration by the Company, or
(iii) as the Administrator may determine in its discretion, any other
transaction with respect to Common Stock to which Section 424(a) of the Code
applies; provided, however that conversion of any convertible securities of the
Company shall not be deemed to have been "effected without receipt of
consideration." Such adjustment shall be made by the Administrator and its
determination shall be final, binding and conclusive. Except as the
Administrator determines, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason hereof shall be made with respect to, the
Reserves and the Purchase Price.

               (b) Corporate Transactions. In the event of a proposed Corporate
Transaction, each option under the Plan shall be assumed by such successor
corporation or a parent or subsidiary of such successor corporation, unless the
Administrator determines, in the exercise of its sole discretion and in lieu of
such assumption, to shorten the Offer Period then in progress by setting a new
Exercise Date (the "New Exercise Date"). If the Administrator shortens the Offer
Period then in progress in lieu of assumption in the event of a Corporate
Transaction, the Administrator shall notify each Participant in writing, at
least ten (10) days prior to the New Exercise Date, that the Exercise Date for
the Participant's option has been changed to the New



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Exercise Date and that the Participant's option will be exercised automatically
on the New Exercise Date, unless prior to such date the Participant has
withdrawn from the Offer Period as provided in Section 10. For purposes of this
Subsection, an option granted under the Plan shall be deemed to be assumed if,
in connection with the Corporate Transaction, the option is replaced with a
comparable option with respect to shares of capital stock of the successor
corporation or Parent thereof. The determination of option comparability shall
be made by the Administrator prior to the Corporate Transaction and its
determination shall be final, binding and conclusive on all persons.

               19. Amendment or Termination.

               (a) The Administrator may at any time and for any reason
terminate or amend the Plan. Except as provided in Section 18, no such
termination can affect options previously granted, provided that an Offer Period
may be terminated by the Administrator on any Exercise Date if the Administrator
determines that the termination of the Offer Period is in the best interests of
the Company and its stockholders. Except as provided in Section 18, no amendment
may make any change in any option theretofore granted which adversely affects
the rights of any Participant without the consent of affected Participants. To
the extent necessary to comply with Section 423 of the Code (or any successor
rule or provision or any other Applicable Law), the Company shall obtain
stockholder approval in such a manner and to such a degree as required.

               (b) Without stockholder consent and without regard to whether any
Participant rights may be considered to have been "adversely affected," the
Administrator shall be entitled to limit the frequency and/or number of changes
in the amount withheld during Offer Periods, change the length of Purchase
Periods within any Offer Period, determine the length of any future Offer
Period, whether future Offer Periods shall be consecutive or overlapping,
establish the exchange ratio applicable to amounts withheld in a currency other
than U.S. dollars, establish additional terms, conditions, rules or procedures
to accommodate the rules or laws of applicable foreign jurisdictions, permit
payroll withholding in excess of the amount designated by a Participant in order
to adjust for delays or mistakes in the Company's processing of properly
completed withholding elections, establish reasonable waiting and adjustment
periods and/or accounting and crediting procedures to ensure that amounts
applied toward the purchase of Common Stock for each Participant properly
correspond with amounts withheld from the Participant's Compensation, and
establish such other limitations or procedures as the Administrator determines
in its sole discretion advisable and which are consistent with the Plan.

               20. Notices. All notices or other communications by a Participant
to the Company under or in connection with the Plan shall be deemed to have been
duly given when received in the form specified by the Administrator at the
location, or by the person, designated by the Administrator for the receipt
thereof.

               21. Conditions Upon Issuance of Shares. Shares shall not be
issued with respect to an option unless the exercise of such option and the
issuance and delivery of such shares pursuant thereto shall comply with all
Applicable Laws and shall be further subject to the approval of counsel for the
Company with respect to such compliance. As a condition to the exercise of an
option, the Company may require the Participant to represent and warrant at the



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time of any such exercise that the shares are being purchased only for
investment and without any present intention to sell or distribute such shares
if, in the opinion of counsel for the Company, such a representation is required
by any of the aforementioned Applicable Laws. In addition, no options shall be
exercised or shares issued hereunder before the Plan shall have been approved by
stockholders of the Company as provided in Section 23.

               22. Term of Plan. The Plan shall become effective upon the
earlier to occur of its adoption by the Board or its approval by the
stockholders of the Company. It shall continue in effect for a term of ten (10)
years unless sooner terminated under Section 19.

               23. Stockholder Approval. Continuance of the Plan shall be
subject to approval by the stockholders of the Company within twelve (12) months
before or after the date the Plan is adopted. Such stockholder approval shall be
obtained in the degree and manner required under Applicable Laws.

               24. No Employment Rights. The Plan does not, directly or
indirectly, create any right for the benefit of any employee or class of
employees to purchase any shares under the Plan, or create in any employee or
class of employees any right with respect to continuation of employment by the
Company or a Designated Parent or Subsidiary, and it shall not be deemed to
interfere in any way with such employer's right to terminate, or otherwise
modify, an employee's employment at any time.

               25. No Effect on Retirement and Other Benefit Plans. Except as
specifically provided in a retirement or other benefit plan of the Company or a
Designated Parent or Subsidiary, participation in the Plan shall not be deemed
compensation for purposes of computing benefits or contributions under any
retirement plan of the Company or a Designated Parent or Subsidiary, and shall
not affect any benefits under any other benefit plan of any kind or any benefit
plan subsequently instituted under which the availability or amount of benefits
is related to level of compensation. The Plan is not a "Retirement Plan" or
"Welfare Plan" under the Employee Retirement Income Security Act of 1974, as
amended.

               26. Effect of Plan. The provisions of the Plan shall, in
accordance with its terms, be binding upon, and inure to the benefit of, all
successors of each Participant, including, without limitation, such
Participant's estate and the executors, administrators or trustees thereof,
heirs and legatees, and any receiver, trustee in bankruptcy or representative of
creditors of such Participant.

               27. Governing Law. The Plan is to be construed in accordance with
and governed by the internal laws of the State of California (as permitted by
Section 1646.5 of the California Civil Code, or any similar successor provision)
without giving effect to any choice of law rule that would cause the application
of the laws of any jurisdiction other than the internal laws of the State of
California to the rights and duties of the parties, except to the extent the
internal laws of the State of California are superseded by the laws of the
United States. Should any provision of the Plan be determined by a court of law
to be illegal or unenforceable, the other provisions shall nevertheless remain
effective and shall remain enforceable.



                                       11
<PAGE>   12

                                    EXHIBIT A
              Saba Software, Inc. 2000 Employee Stock Purchase Plan
                             SUBSCRIPTION AGREEMENT

                  Effective with the Offer Period beginning on:
      [ ] ESPP Effective Date [ ] <JANUARY 1, 200__> or [ ] <JULY 1, 200__>


1.  PERSONAL INFORMATION <MODIFY DATA REQUESTED AS APPROPRIATE>

<TABLE>
<S>                                                                       <C>
    Legal Name (Please Print) __________________________________________  _______________ ___________
                              (Last)          (First)        (MI)          Location       Department

    Street Address______________________________________________________  ___________________________
                                                                           Daytime Telephone

    City, State/Country, Zip____________________________________________  ___________________________
                                                                           E-Mail Address

    Social Security No. __ __ __ - __ __ - __ __ __ __Employee I.D. No.   ___________________________
                                                                           Manager      Mgr. Location
</TABLE>

2.  ELIGIBILITY Any Employee whose customary employment is more than 20 hours
    per week and more than five months per calendar year, who has been an
    Employee for more than three business days and who does not hold (directly
    or indirectly) five percent (5%) or more of the combined voting power of the
    Company, a parent or a subsidiary, whether in stock or options to acquire
    stock is eligible to participate in the Saba Software, Inc. 2000 Employee
    Stock Purchase Plan (the "ESPP"); provided, however, that Employees who are
    subject to the rules or laws of a foreign jurisdiction that prohibit or make
    impractical the participation of such Employees in the ESPP are not eligible
    to participate.

3.  DEFINITIONS Each capitalized term in this Subscription Agreement shall have
    the meaning set forth in the ESPP.

4.  SUBSCRIPTION I hereby elect to participate in the ESPP and subscribe to
    purchase shares of the Company's Common Stock in accordance with this
    Subscription Agreement and the ESPP. I have received a complete copy of the
    ESPP and a prospectus describing the ESPP and understand that my
    participation in the ESPP is in all respects subject to the terms of the
    ESPP. The effectiveness of this Subscription Agreement is dependent on my
    eligibility to participate in the ESPP.

5.  PAYROLL DEDUCTION AUTHORIZATION I hereby authorize payroll deductions from
    my Compensation during the Offer Period in the percentage specified below
    (payroll reductions may not exceed 15% of Compensation nor $21,250 per
    calendar year):

<TABLE>
<S>                                             <C>
    ----------------------------------------------------------------------------------------------------------
    Percentage to be Deducted (circle one)      1%  2%  3%  4%  5%  6%  7%  8%  9%  10%  11% 12%  13%  14% 15%
    ----------------------------------------------------------------------------------------------------------
</TABLE>

6.  ESPP ACCOUNTS AND PURCHASE PRICE I understand that all payroll deductions
    will be credited to my account under the ESPP. No additional payments may be
    made to my account. No interest will be credited on funds held in the
    account at any time including any refund of the account caused by withdrawal
    from the ESPP. All payroll deductions shall be accumulated for the purchase
    of Company Common Stock at the applicable Purchase Price determined in
    accordance with the ESPP.

7.  WITHDRAWAL AND CHANGES IN PAYROLL DEDUCTION I understand that I may
    discontinue my participation in the ESPP at any time prior to an Exercise
    Date as provided in Section 10 of the ESPP, but if I do not withdraw from
    the ESPP, any accumulated payroll deductions will be applied automatically
    to purchase Company Common Stock. I may increase or decrease the rate of my
    payroll deductions in whole percentage increments to not less than one
    percent (1%) on two occasions in the aggregate during any Purchase Period
    by completing and timely filing a Change of Status Notice. Any increase or
    decrease will be effective for the full payroll period occurring after ten
    (10) business days from the Company's receipt of the Change of Status
    Notice.

8.  PERPETUAL SUBSCRIPTION I understand that this Subscription Agreement shall
    remain in effect for successive Offer Periods until I withdraw from
    participation in the ESPP, or termination of the ESPP.



                                      A-1
<PAGE>   13

9.  TAXES I have reviewed the ESPP prospectus discussion of the federal tax
    consequences of participation in the ESPP and consulted with tax consultants
    as I deemed advisable prior to my participation in the ESPP. I hereby agree
    to notify the Company in writing within thirty (30) days of any disposition
    (transfer or sale) of any shares purchased under the ESPP if such
    disposition occurs within two (2) years of the Enrollment Date (the first
    day of the Offer Period during which the shares were purchased) or within
    one (1) year of the Exercise Date (the date I purchased such shares), and I
    will make adequate provision to the Company for foreign, federal, state or
    other tax withholding obligations, if any, which arise upon the disposition
    of the shares. In addition, the Company may withhold from my Compensation
    any amount necessary to meet applicable tax withholding obligations incident
    to my participation in the ESPP, including any withholding necessary to make
    available to the Company any tax deductions or benefits contingent on such
    withholding.

10. DESIGNATION OF BENEFICIARY In the event of my death, I hereby designate the
    following person or trust as my beneficiary to receive all payments and
    shares due to me under the ESPP: [ ] I am single [ ] I am married

<TABLE>
<S>                                                                       <C>
    Beneficiary (please print) _________________________________________  Relationship to Beneficiary (if any)
                                (Last)          (First)          (MI)

    Street Address _____________________________________________________  ___________________________

    City, State/Country, Zip ___________________________________________
</TABLE>

11. TERMINATION OF ESPP I understand that the Company has the right, exercisable
    in its sole discretion, to amend or terminate the ESPP at any time, and a
    termination may be effective as early as an Exercise Date (after purchase of
    shares on such date) within each outstanding Offer Period.

<TABLE>
<S>                                          <C>
    Date: __________________________         Employee Signature:__________________________________________

                                                                __________________________________________
                                                                spouse's signature (if beneficiary is
                                                                other than spouse)
</TABLE>



                                      A-2
<PAGE>   14

                                    EXHIBIT B

              Saba Software, Inc. 2000 Employee Stock Purchase Plan

                             CHANGE OF STATUS NOTICE

__________________________________________
 Participant Name (Please Print)

__________________________________________
 Social Security Number


        WITHDRAWAL FROM ESPP

        I hereby withdraw from the Saba Software, Inc. 2000 Employee Stock
        Purchase Plan (the "ESPP") and agree that my option under the applicable
        Offer Period will be automatically terminated and all accumulated
        payroll deductions credited to my account will be refunded to me or
        applied to the purchase of Common Stock depending on the alternative
        indicated below. No further payroll deductions will be made for the
        purchase of shares in the applicable Offer Period and I shall be
        eligible to participate in a future Offer Period only by timely delivery
        to the Company of a new Subscription Agreement.

 [ ]    WITHDRAWAL AND PURCHASE OF COMMON STOCK

        Payroll deductions will terminate, but your account balance will be
        applied to purchase Common Stock on the next Exercise Date. Any
        remaining balance will be refunded.

 [ ]    WITHDRAWAL WITHOUT PURCHASE OF COMMON STOCK

        Entire account balance will be refunded to me and no Common Stock will
        be purchased on the next Exercise Date provided this notice is submitted
        to the Company ten (10) business days prior to the next Exercise Date.

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

 [ ]    CHANGE IN PAYROLL DEDUCTION

        I hereby elect to change my rate of payroll deduction under the ESPP as
        follows (select one):

<TABLE>
<S>                                            <C>
    ----------------------------------------------------------------------------------------------------------
    Percentage to be Deducted (circle one)      1%  2%  3%  4%  5%  6%  7%  8%  9%  10%  11% 12%  13%  14% 15%
    ----------------------------------------------------------------------------------------------------------
</TABLE>

        An increase or a decrease in payroll deduction will be effective for the
        first full payroll period commencing no fewer than ten (10) business
        days following the Company's receipt of this notice, unless this change
        is processed more quickly.

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



<PAGE>   15

 [ ]    CHANGE OF BENEFICIARY             [ ]  I am single     [ ]  I am married

        This change of beneficiary shall terminate my previous beneficiary
        designation under the ESPP. In the event of my death, I hereby designate
        the following person or trust as my beneficiary to receive all payments
        and shares due to me under the ESPP:

<TABLE>
<S>                                                                     <C>
    Beneficiary (please print) ______________________________________   Relationship to Beneficiary (if any)
                                (Last)          (First)        (MI)

    Street Address __________________________________________________  ______________________________

    City, State/Country, Zip ________________________________________




    Date: __________________________    Employee Signature:__________________________________________

                                                           __________________________________________
                                                           spouse's signature (if beneficiary is
                                                           other than spouse)
</TABLE>



                                      B-1