Document:

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                                                                Exhibit 10.4

                          Motive Communications, Inc.

                       2000 Employee Stock Purchase Plan

                          (As Adopted April 20, 2000)
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                               TABLE OF CONTENTS
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                                                                           Page
                                                                           ----

SECTION 1.  PURPOSE OF THE PLAN.............................................. 1

SECTION 2.  ADMINISTRATION OF THE PLAN....................................... 1
     (a)  Committee Composition.............................................. 1
     (b)  Committee Responsibilities......................................... 1

SECTION 3.  ENROLLMENT AND PARTICIPATION..................................... 1
     (a)  Offering Periods................................................... 1
     (b)  Accumulation Periods............................................... 1
     (c)  Enrollment......................................................... 1
     (d)  Duration of Participation.......................................... 2
     (e)  Applicable Offering Period......................................... 2

SECTION 4.  EMPLOYEE CONTRIBUTIONS........................................... 2
     (a)  Frequency of Payroll Deductions.................................... 2
     (b)  Amount of Payroll Deductions....................................... 2
     (c)  Changing Withholding Rate.......................................... 3
     (d)  Discontinuing Payroll Deductions................................... 3
     (e)  Limit on Number of Elections....................................... 3

SECTION 5.  WITHDRAWAL FROM THE PLAN......................................... 3
     (a)  Withdrawal......................................................... 3
     (b)  Re-Enrollment After Withdrawal..................................... 3

SECTION 6.  CHANGE IN EMPLOYMENT STATUS...................................... 3
     (a)  Termination of Employment.......................................... 3
     (b)  Leave of Absence................................................... 3
     (c)  Death.............................................................. 4

SECTION 7.  PLAN ACCOUNTS AND PURCHASE OF SHARES............................. 4
     (a)  Plan Accounts...................................................... 4
     (b)  Purchase Price..................................................... 4
     (c)  Number of Shares Purchased......................................... 4
     (d)  Available Shares Insufficient...................................... 4
     (e)  Issuance of Stock.................................................. 4
     (f)  Tax Withholding.................................................... 5
     (g)  Unused Cash Balances............................................... 5
     (h)  Stockholder Approval............................................... 5

SECTION 8.  LIMITATIONS ON STOCK OWNERSHIP................................... 5
     (a)  Five Percent Limit................................................. 5
     (b)  Dollar Limit....................................................... 5

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SECTION 9.   RIGHTS NOT TRANSFERABLE......................................... 6

SECTION 10.  NO RIGHTS AS AN EMPLOYEE........................................ 6

SECTION 11.  NO RIGHTS AS A STOCKHOLDER...................................... 7

SECTION 12.  SECURITIES LAW REQUIREMENTS..................................... 7

SECTION 13.  STOCK OFFERED UNDER THE PLAN.................................... 7
     (a)  Authorized Shares.................................................. 7
     (b)  Anti-Dilution Adjustments.......................................... 7
     (c)  Reorganizations.................................................... 7

SECTION 14.  AMENDMENT OR DISCONTINUANCE..................................... 7

SECTION 15.  DEFINITIONS..................................................... 8
     (a)  Accumulation Period................................................ 8
     (b)  Board.............................................................. 8
     (c)  Code............................................................... 8
     (d)  Committee.......................................................... 8
     (e)  Company............................................................ 8
     (f)  Compensation....................................................... 8
     (g)  Corporate Reorganization........................................... 8
     (h)  Eligible Employee.................................................. 8
     (i)  Exchange Act....................................................... 8
     (j)  Fair Market Value.................................................. 8
     (k)  IPO................................................................ 9
     (l)  Offering Period.................................................... 9
     (m)  Participant........................................................ 9
     (n)  Participating Company.............................................. 9
     (o)  Plan............................................................... 9
     (p)  Plan Account....................................................... 9
     (q)  Purchase Price..................................................... 9
     (r)  Stock.............................................................. 9
     (s)  Subsidiary......................................................... 9

                                       ii
<PAGE>

                          Motive Communications, Inc.

                       2000 Employee Stock Purchase Plan

SECTION 1.  PURPOSE OF THE PLAN.

          The Board adopted the Plan effective as of the date of the IPO.  The
purpose of the Plan is to provide Eligible Employees with an opportunity to
increase their proprietary interest in the success of the Company by purchasing
Stock from the Company on favorable terms and to pay for such purchases through
payroll deductions.  The Plan is intended to qualify under section 423 of the
Code.

SECTION 2.  ADMINISTRATION OF THE PLAN.

        (a)  Committee Composition. The Committee shall administer the Plan. The
Committee shall consist exclusively of one or more directors of the Company, who
shall be appointed by the Board.

        (b)  Committee Responsibilities. The Committee shall interpret the Plan
and make all other policy decisions relating to the operation of the Plan. The
Committee may adopt such rules, guidelines and forms as it deems appropriate to
implement the Plan. The Committee's determinations under the Plan shall be final
and binding on all persons.

SECTION 3.  ENROLLMENT AND PARTICIPATION.

        (a)  Offering Periods. While the Plan is in effect, two overlapping
Offering Periods shall commence in each calendar year. The Offering Periods
shall consist of the 24-month periods commencing on each May 1 and November 1,
except that the first Offering Period shall commence on the date of the IPO and
end on October 31, 2002.

        (b)  Accumulation Periods. While the Plan is in effect, two Accumulation
Periods shall commence in each calendar year. The Accumulation Periods shall
consist of the six-month periods commencing on each May 1 and November 1, except
that the first Accumulation Period shall commence on the date of the IPO and end
on April 30, 2001.

        (c)  Enrollment. Any individual who, on the day preceding the first day
of an Offering Period, qualifies as an Eligible Employee may elect to become a
Participant in the Plan for such Offering Period by executing the enrollment
form prescribed for this purpose by the Committee. The enrollment form shall be
filed with the Company at the prescribed location not later than 10 business
days prior to the commencement of such Offering Period, except that the Company
may announce a deadline that is less than 10 business days prior to the
commencement of the first Offering Period.
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        (d)   Duration of Participation. Once enrolled in the Plan, a
Participant shall continue to participate in the Plan until he or she ceases to
be an Eligible Employee, withdraws from the Plan under Section 5(a) or reaches
the end of the Accumulation Period in which his or her employee contributions
were discontinued under Section 4(d) or 8(b). A Participant who discontinued
employee contributions under Section 4(d) or withdrew from the Plan under
Section 5(a) may again become a Participant, if he or she then is an Eligible
Employee, by following the procedure described in Subsection (c) above. A
Participant whose employee contributions were discontinued automatically under
Section 8(b) shall automatically resume participation at the beginning of the
earliest Accumulation Period ending in the next calendar year, if he or she then
is an Eligible Employee.

        (e)   Applicable Offering Period. For purposes of calculating the
Purchase Price under Section 7(b), the applicable Offering Period shall be
determined as follows:

        (i)   Once a Participant is enrolled in the Plan for an Offering Period,
  such Offering Period shall continue to apply to him or her until the earliest
  of (A) the end of such Offering Period, (B) the end of his or her
  participation under Subsection (d) above or (C) re-enrollment for a subsequent
  Offering Period under Paragraph (ii) or (iii) below.

        (ii)  In the event that the Fair Market Value of Stock on the last
  trading day before the commencement of the Offering Period for which the
  Participant is enrolled is higher than on the last trading day before the
  commencement of any subsequent Offering Period, the Participant shall
  automatically be re-enrolled for such subsequent Offering Period.

        (iii) Any other provision of the Plan notwithstanding, the Company (at
  its sole discretion) may determine prior to the commencement of any new
  Offering Period that all Participants shall be re-enrolled for such new
  Offering Period.

        (iv)  When a Participant reaches the end of an Offering Period but his
  or her participation is to continue, then such Participant shall automatically
  be re-enrolled for the Offering Period that commences immediately after the
  end of the prior Offering Period.

SECTION 4.  EMPLOYEE CONTRIBUTIONS.

        (a)   Frequency of Payroll Deductions. A Participant may purchase shares
of Stock under the Plan solely by means of payroll deductions. Payroll
deductions, as designated by the Participant pursuant to Subsection (b) below,
shall occur on each payday during participation in the Plan.

        (b)   Amount of Payroll Deductions. An Eligible Employee shall designate
on the enrollment form the portion of his or her Compensation that he or she
elects to have withheld for the purchase of Stock. Such portion shall be a whole
percentage of the Eligible Employee's Compensation, but not less than 1% nor
more than 15%.

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        (c)  Changing Withholding Rate. If a Participant wishes to change the
rate of payroll withholding, he or she may do so by filing a new enrollment form
with the Company at the prescribed location at any time. The new withholding
rate shall be effective as soon as reasonably practicable after the Company has
received such form. The new withholding rate shall be a whole percentage of the
Eligible Employee's Compensation, but not less than 1% nor more than 15%.

        (d)  Discontinuing Payroll Deductions. If a Participant wishes to
discontinue employee contributions entirely, he or she may do so by filing a new
enrollment form with the Company at the prescribed location at any time. Payroll
withholding shall cease as soon as reasonably practicable after the Company has
received such form. (In addition, employee contributions may be discontinued
automatically pursuant to Section 8(b).) A Participant who has discontinued
employee contributions may resume such contributions by filing a new enrollment
form with the Company at the prescribed location. Payroll withholding shall
resume as soon as reasonably practicable after the Company has received such
form.

        (e)  Limit on Number of Elections. No Participant shall make more than 2
elections under Subsection (c) or (d) above during any Accumulation Period.

SECTION 5.  WITHDRAWAL FROM THE PLAN.

        (a)  Withdrawal. A Participant may elect to withdraw from the Plan by
filing the prescribed form with the Company at the prescribed location at any
time before the last day of an Accumulation Period. As soon as reasonably
practicable thereafter, payroll deductions shall cease and the entire amount
credited to the Participant's Plan Account shall be refunded to him or her in
cash, without interest. No partial withdrawals shall be permitted.

        (b)  Re-Enrollment After Withdrawal. A former Participant who has
withdrawn from the Plan shall not be a Participant until he or she re-enrolls in
the Plan under Section 3(c). Re-enrollment may be effective only at the
commencement of an Offering Period.

SECTION 6.  CHANGE IN EMPLOYMENT STATUS.

        (a)  Termination of Employment. Termination of employment as an Eligible
Employee for any reason, including death, shall be treated as an automatic
withdrawal from the Plan under Section 5(a). (A transfer from one Participating
Company to another shall not be treated as a termination of employment.)

        (b)  Leave of Absence. For purposes of the Plan, employment shall not be
deemed to terminate when the Participant goes on a military leave, a sick leave
or another bona fide leave of absence, if the leave was approved by the Company
in writing. Employment, however, shall be deemed to terminate 90 days after the
Participant goes on a leave, unless a contract or statute guarantees his or her
right to return to work. Employment shall be deemed to terminate in any event
when the approved leave ends, unless the Participant immediately returns to
work.

                                       3
<PAGE>

        (c)  Death. In the event of the Participant's death, the amount credited
to his or her Plan Account shall be paid to a beneficiary designated by him or
her for this purpose on the prescribed form or, if none, to the Participant's
estate. Such form shall be valid only if it was filed with the Company at the
prescribed location before the Participant's death.

SECTION 7.  PLAN ACCOUNTS AND PURCHASE OF SHARES.

        (a)  Plan Accounts. The Company shall maintain a Plan Account on its
books in the name of each Participant. Whenever an amount is deducted from the
Participant's Compensation under the Plan, such amount shall be credited to the
Participant's Plan Account. Amounts credited to Plan Accounts shall not be trust
funds and may be commingled with the Company's general assets and applied to
general corporate purposes. No interest shall be credited to Plan Accounts.

        (b)  Purchase Price. The Purchase Price for each share of Stock
purchased at the close of an Accumulation Period shall be the lower of:

        (i)  85% of the Fair Market Value of such share on the last trading day
  in such Accumulation Period; or

        (ii) 85% of the Fair Market Value of such share on the last trading day
  before the commencement of the applicable Offering Period (as determined under
  Section 3(e)) or, in the case of the first Offering Period under the Plan, 85%
  of the price at which one share of Stock is offered to the public in the IPO.

        (c)  Number of Shares Purchased. As of the last day of each Accumulation
Period, each Participant shall be deemed to have elected to purchase the number
of shares of Stock calculated in accordance with this Subsection (c), unless the
Participant has previously elected to withdraw from the Plan in accordance with
Section 5(a). The amount then in the Participant's Plan Account shall be divided
by the Purchase Price, and the number of shares that results shall be purchased
from the Company with the funds in the Participant's Plan Account. The foregoing
notwithstanding, no Participant shall purchase more than 750 shares of Stock
with respect to any Accumulation Period nor more than the amounts of Stock set
forth in Sections 8(b) and 13(a). The Committee may determine with respect to
all Participants that any fractional share, as calculated under this Subsection
(c), shall be (i) rounded down to the next lower whole share or (ii) credited as
a fractional share.

        (d)  Available Shares Insufficient. In the event that the aggregate
number of shares that all Participants elect to purchase during an Accumulation
Period exceeds the maximum number of shares remaining available for issuance
under Section 13(a), then the number of shares to which each Participant is
entitled shall be determined by multiplying the number of shares available for
issuance by a fraction. The numerator of such fraction is the number of shares
that such Participant has elected to purchase, and the denominator of such
fraction is the number of shares that all Participants have elected to purchase.

        (e)  Issuance of Stock. Certificates representing the shares of Stock
purchased by a Participant under the Plan shall be issued to him or her as soon
as reasonably

                                       4
<PAGE>

practicable after the close of the applicable Accumulation Period, except that
the Committee may determine that such shares shall be held for each
Participant's benefit by a broker designated by the Committee (unless the
Participant has elected that certificates be issued to him or her). Shares may
be registered in the name of the Participant or jointly in the name of the
Participant and his or her spouse as joint tenants with right of survivorship or
as community property.

        (f)   Tax Withholding. To the extent required by applicable federal,
state, local or foreign law, a Participant shall make arrangements satisfactory
to the Company for the satisfaction of any withholding tax obligations that
arise in connection with the Plan. The Company shall not be required to issue
any shares of Stock under the Plan until such obligations are satisfied.

        (g)   Unused Cash Balances. An amount remaining in the Participant's
Plan Account that represents the Purchase Price for any fractional share shall
be carried over in the Participant's Plan Account to the next Accumulation
Period. Any amount remaining in the Participant's Plan Account that represents
the Purchase Price for whole shares that could not be purchased by reason of
Subsection (c) above, Section 8(b) or Section 13(a) shall be refunded to the
Participant in cash, without interest.

        (h)   Stockholder Approval. Any other provision of the Plan
notwithstanding, no shares of Stock shall be purchased under the Plan unless and
until the Company's stockholders have approved the adoption of the Plan.

SECTION 8.  LIMITATIONS ON STOCK OWNERSHIP.

        (a)   Five Percent Limit. Any other provision of the Plan
notwithstanding, no Participant shall be granted a right to purchase Stock under
the Plan if such Participant, immediately after his or her election to purchase
such Stock, would own stock possessing more than 5% of the total combined voting
power or value of all classes of stock of the Company or any parent or
Subsidiary of the Company. For purposes of this Subsection (a), the following
rules shall apply:

        (i)   Ownership of stock shall be determined after applying the
  attribution rules of section 424(d) of the Code;

        (ii)  Each Participant shall be deemed to own any stock that he or she
  has a right or option to purchase under this or any other plan; and

        (iii) Each Participant shall be deemed to have the right to purchase 750
  shares of Stock under this Plan with respect to each Accumulation Period.

        (b)   Dollar Limit. Any other provision of the Plan notwithstanding, no
Participant shall purchase Stock with a Fair Market Value in excess of the
following limit:

        (i)   In the case of Stock purchased during an Offering Period that
  commenced in the current calendar year, the limit shall be equal to (A)
  $25,000 minus (B) the Fair Market Value of the Stock that the Participant
  previously

                                       5
<PAGE>

  purchased in the current calendar year (under this Plan and all other employee
  stock purchase plans of the Company or any parent or Subsidiary of the
  Company).

        (ii)  In the case of Stock purchased during an Offering Period that
  commenced in the immediately preceding calendar year, the limit shall be equal
  to (A) $50,000 minus (B) the Fair Market Value of the Stock that the
  Participant previously purchased (under this Plan and all other employee stock
  purchase plans of the Company or any parent or Subsidiary of the Company) in
  the current calendar year and in the immediately preceding calendar year.

        (iii) In the case of Stock purchased during an Offering Period that
  commenced in the second preceding calendar year, the limit shall be equal to
  (A) $75,000 minus (B) the Fair Market Value of the Stock that the Participant
  previously purchased (under this Plan and all other employee stock purchase
  plans of the Company or any parent or Subsidiary of the Company) in the
  current calendar year and in the two preceding calendar years.

For purposes of this Subsection (b), the Fair Market Value of Stock shall be
determined in each case as of the beginning of the Offering Period in which such
Stock is purchased.  Employee stock purchase plans not described in section 423
of the Code shall be disregarded.  If a Participant is precluded by this
Subsection (b) from purchasing additional Stock under the Plan, then his or her
employee contributions shall automatically be discontinued and shall resume at
the beginning of the earliest Accumulation Period ending in the next calendar
year (if he or she then is an Eligible Employee).

SECTION 9.  RIGHTS NOT TRANSFERABLE.

          The rights of any Participant under the Plan, or any Participant's
interest in any Stock or moneys to which he or she may be entitled under the
Plan, shall not be transferable by voluntary or involuntary assignment or by
operation of law, or in any other manner other than by beneficiary designation
or the laws of descent and distribution.  If a Participant in any manner
attempts to transfer, assign or otherwise encumber his or her rights or interest
under the Plan, other than by beneficiary designation or the laws of descent and
distribution, then such act shall be treated as an election by the Participant
to withdraw from the Plan under Section 5(a).

SECTION 10.  NO RIGHTS AS AN EMPLOYEE.

          Nothing in the Plan or in any right granted under the Plan shall
confer upon the Participant any right to continue in the employ of a
Participating Company for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Participating Companies or of
the Participant, which rights are hereby expressly reserved by each, to
terminate his or her employment at any time and for any reason, with or without
cause.

                                       6
<PAGE>

SECTION 11.  NO RIGHTS AS A STOCKHOLDER.

          A Participant shall have no rights as a stockholder with respect to
any shares of Stock that he or she may have a right to purchase under the Plan
until such shares have been purchased on the last day of the applicable
Accumulation Period.

SECTION 12.  SECURITIES LAW REQUIREMENTS.

          Shares of Stock shall not be issued under the Plan unless the issuance
and delivery of such shares comply with (or are exempt from) all applicable
requirements of law, including (without limitation) the Securities Act of 1933,
as amended, the rules and regulations promulgated thereunder, state securities
laws and regulations, and the regulations of any stock exchange or other
securities market on which the Company's securities may then be traded.

SECTION 13.  STOCK OFFERED UNDER THE PLAN.

        (a)  Authorized Shares. The number of shares of Stock available for
purchase under the Plan shall be 1,000,000 (subject to adjustment pursuant to
this Section 13). On January 1 of each year, commencing with January 1, 2001,
the aggregate number of shares of Stock available for purchase during the life
of the Plan shall automatically be increased by a number equal to the lesser of
(a) 2% of the total number of shares of Stock then outstanding or (b) 1,000,000
(subject to adjustment pursuant to this Section 13).

        (b)  Anti-Dilution Adjustments. The aggregate number of shares of Stock
offered under the Plan, the 750-share limitation described in Section 7(c) and
the price of shares that any Participant has elected to purchase shall be
adjusted proportionately by the Committee for any increase or decrease in the
number of outstanding shares of Stock resulting from a subdivision or
consolidation of shares or the payment of a stock dividend, any other increase
or decrease in such shares effected without receipt or payment of consideration
by the Company, the distribution of the shares of a Subsidiary to the Company's
stockholders or a similar event.

        (c)  Reorganizations. Any other provision of the Plan notwithstanding,
immediately prior to the effective time of a Corporate Reorganization, the
Offering Period and Accumulation Period then in progress shall terminate and
shares shall be purchased pursuant to Section 7, unless the Plan is continued or
assumed by the surviving corporation or its parent corporation. The Plan shall
in no event be construed to restrict in any way the Company's right to undertake
a dissolution, liquidation, merger, consolidation or other reorganization.

SECTION 14.  AMENDMENT OR DISCONTINUANCE.

          The Board shall have the right to amend, suspend or terminate the Plan
at any time and without notice.  Except as provided in Section 13, any increase
in the aggregate number of shares of Stock to be issued under the Plan shall be
subject to approval by a vote of the stockholders of the Company.  In addition,
any other amendment of the Plan shall be subject to approval by a vote of the
stockholders of the Company to the extent required by an applicable law or
regulation.  The Plan shall terminate automatically 20 years after its adoption
by the

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<PAGE>

Board, unless (a) the Plan is extended by the Board and (b) the extension is
approved within 12 months by a vote of the stockholders of the Company.

SECTION 15.  DEFINITIONS.

        (a)  "Accumulation Period" means a six-month period during which
contributions may be made toward the purchase of Stock under the Plan, as
determined pursuant to Section 3(b).

        (b)  "Board" means the Board of Directors of the Company, as constituted
from time to time.

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

        (d)  "Committee" means a committee of the Board, as described in Section
2.

        (e)  "Company" means Motive Communications, Inc., a Delaware
corporation.

        (f)  "Compensation" means (i) the total compensation paid in cash to a
Participant by a Participating Company, including salaries, wages, bonuses,
incentive compensation, commissions, overtime pay and shift premiums, plus (ii)
any pre-tax contributions made by the Participant under section 401(k) or 125 of
the Code. "Compensation" shall exclude all non-cash items, moving or relocation
allowances, cost-of-living equalization payments, car allowances, tuition
reimbursements, imputed income attributable to cars or life insurance, severance
pay, fringe benefits, contributions or benefits received under employee benefit
plans, income attributable to the exercise of stock options, and similar items.
The Committee shall determine whether a particular item is included in
Compensation.

        (g)  "Corporate Reorganization" means:

        (i)  The consummation of a merger or consolidation of the Company with
  or into another entity or any other corporate reorganization; or

        (ii) The sale, transfer or other disposition of all or substantially all
  of the Company's assets or the complete liquidation or dissolution of the
  Company.

        (h)  "Eligible Employee" means any employee of a Participating Company
whose customary employment is for more than five months per calendar year and
for more than 20 hours per week. The foregoing notwithstanding, an individual
shall not be considered an Eligible Employee if his or her participation in the
Plan is prohibited by the law of any country which has jurisdiction over him or
her or if he or she is subject to a collective bargaining agreement that does
not provide for participation in the Plan.

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

        (j)  "Fair Market Value" means the market price of Stock, determined by
the Committee as follows:

                                       8
<PAGE>

        (i)   If the Stock was traded on The Nasdaq National Market on the date
  in question, then the Fair Market Value shall be equal to the last-transaction
  price quoted for such date by The Nasdaq National Market;

        (ii)  If the Stock was traded on a stock exchange on the date in
  question, then the Fair Market Value shall be equal to the closing price
  reported by the applicable composite transactions report for such date; or

        (iii) If none of the foregoing provisions is applicable, then the
  Committee shall determine the Fair Market Value in good faith on such basis as
  it deems appropriate.

Whenever possible, the determination of Fair Market Value by the Committee shall
be based on the prices reported in The Wall Street Journal or as reported
                                   -----------------------
directly to the Company by Nasdaq or a stock exchange.  Such determination shall
be conclusive and binding on all persons.

        (k)   "IPO" means the initial offering of Stock to the public pursuant
to a registration statement filed by the Company with the Securities and
Exchange Commission.

        (l)   "Offering Period" means a 24-month period with respect to which
the right to purchase Stock may be granted under the Plan, as determined
pursuant to Section 3(a).

        (m)   "Participant" means an Eligible Employee who elects to participate
in the Plan, as provided in Section 3(c).

        (n)   "Participating Company" means (i) the Company and (ii) each
present or future Subsidiary designated by the Committee as a Participating
Company.

        (o)   "Plan" means this Motive Communications, Inc. 2000 Employee Stock
Purchase Plan, as it may be amended from time to time.

        (p)   "Plan Account" means the account established for each Participant
pursuant to Section 7(a).

        (q)   "Purchase Price" means the price at which Participants may
purchase Stock under the Plan, as determined pursuant to Section 7(b).

        (r)   "Stock" means the Common Stock of the Company.

        (s)   "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

                                       9<PAGE>

[LOGO]                                                              EXHIBIT 10.5

                                PROMISSORY NOTE

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
  Principal      Loan Date       Maturity      Loan No.      Call    Collateral     Account      Officer      Initials
$1,250,000.00    05-19-1999     11-19-2002     721000060                            622601         261
---------------------------------------------------------------------------------------------------------------------
References in the shaded area are for Lender's use only and do not limit the applicability of this document to any
particular loan or item.
---------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>
Borrower:    MOTIVE COMMUNICATIONS, INC., A DELAWARE         Lender:     Imperial Bank
             CORPORATION                                                 Emerging Growth Industries Group-
             9211 WATERFORD CENTRE BLVD., STE. 100                       Southwest Regional Office
             AUSTIN, TX 78758                                            226 Airport Parkway
                                                                         San Jose, CA  95110-1024
=====================================================================================================================
</TABLE>

Principal Amount: $1,250,000.00  Initial Rate: 7.750% Date of Note: May 19, 1999

PROMISE TO PAY. MOTIVE COMMUNICATIONS, INC., A DELAWARE CORPORATION ("Borrower")
promises to pay to Imperial Bank ("Lender"), or order, in lawful money of the
United States of America, the principal amount of One Million Two Hundred Fifty
Thousand & 00/100 Dollars ($1,250,000.00) or so much as may be outstanding,
together with interest on the unpaid outstanding principal balance of each
advance. Interest shall be calculated from the date of each advance until
repayment of each advance.

PAYMENT. Borrower will pay this loan in accordance with the following payment
schedule:

         Advances under the Note shall be available through May 19, 2000 ("Draw
         Period"). During the draw period, interest only shall be due monthly
         beginning June 19, 1999. On May 19, 2000, the outstanding principal
         balance of the advances under the Note shall be payable in 30 equal
         monthly payments of principal based on an amortization period of 30
         months. Accrued interest shall be payable monthly beginning June 19,
         2000. All principal and accrued but unpaid interest shall in any event
         be due and payable on or before November 19, 2002. A maximum of
         $100,000 will be available for software purchases.

The annual interest rate for this Note is computed on a 365/360 basis; that is,
by applying the ratio of the annual interest rate over a year of 360 days,
multiplied by the outstanding principal balance, multiplied by the actual number
of days the principal balance is outstanding. Borrower will pay Lender at
Lender's address shown above or at such other place as Lender may designate in
writing. Unless otherwise agreed or required by applicable law, payments will be
applied first to any unpaid collection costs and any late charges, then to any
unpaid interest, and any remaining amount to principal.

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from
time to time based on changes in an index which is the Imperial Bank Prime Rate
(the "Index"). The Prime Rate is the rate announced by Lender as its Prime Rate
of interest from time to time. Lender will tell Borrower the current index rate
upon Borrower's request. Borrower understands that Lender may make loans based
on other rates as well. The interest rate change will not occur more often than
each day. The index currently is 7.760%. The interest rate to be applied to the
unpaid principal balance of this Note will be at a rate equal to the index
resulting in an initial rate of 7.750%. NOTICE: Under no circumstances will the
interest rate on this Note be more than the maximum rate allowed by applicable
law.

PREPAYMENT; MINIMUM INTEREST CHARGE. Borrower agrees that all loan fees and
other prepaid finance charges are earned fully as of the date of the loan and
will not be subject to refund upon early payment (whether voluntary or as a
result of default), except as otherwise required by law. In any event, even upon
full prepayment of this Note, Borrower understands that Lender is entitled to a
minimum interest charge of $250.00. Other than Borrower's obligation to pay any
minimum interest charge, Borrower may pay without penalty all or a portion of
the amount owed earlier than it is due. Early payments will not, unless agreed
to by Lender in writing, relieve Borrower of Borrower's obligation to continue
to make payments of accrued unpaid interest. Rather, they will reduce the
principal balance due.

LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged
5.000% of the unpaid portion of the regularly scheduled payment.

DEFAULT. Borrower will be in default if any of the following happens: (a)
Borrower fails to make any payment when due. (b) Borrower breaks any promise
Borrower has made to Lender, or Borrower fails to comply with or to perform when
due any other term, obligation, covenant, or condition contained in this Note or
any agreement related to this Note, or in any other agreement or loan Borrower
has with Lender. (c) Any representation or statement made or furnished to Lender
by Borrower or on Borrower's behalf is false or misleading in any material
respect either now or at the time made or furnished. (d) Borrower becomes
insolvent, a receiver is appointed for any part of Borrower's property, Borrower
makes an assignment for the benefit of creditors, or any proceeding is commenced
either by Borrower or against Borrower under any bankruptcy or insolvency
laws. (e) Any creditor tries to take any of Borrower's property on or in which
Lender has a lien or security interest. This includes a garnishment of any of
Borrower's accounts with Lender. (f) Any guarantor dies or any of the other
events described in this default section occurs with respect to any guarantor of
this Note. (g) A material adverse change occurs in Borrower's financial
condition, or Lender believes the prospect of payment or performance of the
indebtedness is impaired. (h) Lender in good faith deems itself insecure.

If any default, other than a default in payment, is curable and if Borrower has
not been given a notice of a breach of the same provision of this Note within
the preceding twelve (12) months, it may be cured (and no event of default will
have occurred) if Borrower, after receiving written notice from Lender demanding
cure of such default: (a) cures the default within ten (10) days; or (b) if the
cure requires more than ten (10) days, immediately initiates steps which
Lender deems in Lender's sole discretion to be sufficient to cure the default
and thereafter continues and completes all reasonable and necessary steps
sufficient to produce compliance as soon as reasonably practical.
<PAGE>

LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal
balance on this Note and all accrued unpaid interest immediately due, without
notice, and then Borrower will pay that amount. Upon Borrower's failure to pay
all amounts declared due pursuant to this section, including failure to pay upon
final maturity. Lender, at its option, may also, if permitted under applicable
law, do one or both of the following: (a) increase the variable interest rate on
this Note to 5.000 percentage points over the index, and (b) add any unpaid
accrued interest to principal and such sum will bear interest therefrom until
paid at the rate provided in this Note (including any increased rate). Lender
may hire or pay someone else to help collect this Note if Borrower does not pay.
Borrower also will pay Lender that amount. This includes, subject to any limits
under applicable law, Lender's attorneys' fees and Lender's legal expenses
whether or not there is a lawsuit, including attorneys' fees and legal expenses
for bankruptcy proceedings (including efforts to modify or vacate any automatic
stay or injunction), appeals, and any anticipated post-judgment collection
services. Borrower also will pay any court costs, in addition to all other sums
provided by law. This Note has been delivered to Lender and accepted by Lender
in the State of California. If there is a lawsuit, Borrower agrees upon Lender's
request to submit to the jurisdiction of the courts of Los Angeles County, the
State of California. Lender and Borrower hereby waive the right to any jury
trial in any action, proceeding, or counterclaim brought by either Lender or
Borrower against the other. (Initial Here SH) This Note shall be governed by and
                                          --
construed in accordance with the laws of the State of California.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $25.00 if Borrower
makes a payment on Borrower's loan and the check or preauthorized charge with
which Borrower pays is later dishonored.

RIGHT OF SETOFF. Borrower grants to Lender a contractual security interest in,
and hereby assigns, conveys, delivers, pledges, and transfers to Lender all
Borrower's right, title and interest in and to, Borrower's accounts with Lender
(whether checking, savings, or some other account), including without limitation
all accounts held jointly with someone else and all accounts Borrower may open
in the future, excluding however all IRA and Keogh accounts, and all trust
accounts for which the grant of a security interest would be prohibited by law.
Borrower authorizes Lender, to the extent permitted by applicable law, to charge
or setoff all sums owing on this Note against any and all such accounts.

LINE OF CREDIT. This Note evidences a straight line of credit. Once the total
amount of principal has been advanced, Borrower is not entitled to further loan
advances. Advances under this Note may be requested orally by Borrower or by an
authorized person. All oral requests shall be confirmed in writing on the day of
the request. All communications, instructions, or directions by telephone or
otherwise to Lender are to be directed to Lender's office shown above. The
following party or parties are authorized to request advances under the line of
credit until Lender receives from Borrower at Lender's address shown above
written notice of revocation of their authority: SCOTT HARMON, PRESIDENT & CEO;
PAT MOTOLA, VP, BUS, DEV. & CFO; and SCOTT ABEL, VP, ON LINE SERVICES. Borrower
agrees to be liable for all sums either: (a) advanced in accordance with the
instructions of an authorized person or (b) credited to any of Borrower's
accounts with Lender. The unpaid principal balance owing on this Note at any
time may be evidenced by endorsements on this Note or by Lender's internal
records, including daily computer print-outs. Lender will have no obligation to
advance funds under this Note if: (a) Borrower or any guarantor is in default
under the terms of this Note or any agreement that Borrower or any guarantor has
with Lender, including any agreement made in connection with the signing of this
Note; (b) Borrower or any guarantor ceases doing business or is insolvent; (c)
any guarantor seeks, claims or otherwise attempts to limit, modify or revoke
such guarantor's guarantee of this Note
<PAGE>

05-19-1999                                                                Page 2

                                PROMISSORY NOTE
                                  (Continued)
================================================================================
or any other loan with Lender; (d) Borrower has applied funds provided pursuant
to this Note for purposes other than those authorized by Lender; or (e) Lender
in good faith deems itself insecure under this Note or any other agreement
between Lender and Borrower.

CREDIT TERMS AND CONDITIONS AGREEMENT. This Note is subject to the provisions of
the Credit Terms and Conditions Agreement dated June 5, 1998 and all amendments
thereto and replacements therefor.

GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or
remedies under this Note without losing them. Borrower and any other person who
signs, guarantees or endorses this Note, to the extent allowed by law, waive any
applicable statute of limitations, presentment, demand for payment, protest and
notice of dishonor. Upon any change in the terms of this Note, and unless
otherwise expressly stated in writing, no party who signs this Note, whether as
maker, guarantor, accommodation maker or endorser, shall be released from
liability. All such parties agree that Lender may renew or extend (repeatedly
and for any length of time) this loan, or release any party or guarantor or
collateral; or impair, fail to realize upon or perfect Lender's security
interest in the collateral; and take any other action deemed necessary by Lender
without the consent of or notice to anyone. Ail such parties also agree that
Lender may modify this loan without the consent of or notice to anyone other
than the party with whom the modification is made.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF
THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO
THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE NOTE.

BORROWER:

MOTIVE COMMUNICATIONS, INC., A DELAWARE CORPORATION

By: /s/ Scott Harmon
   ----------------------------------
   SCOTT HARMON, PRESIDENT & CEO

================================================================================
<PAGE>

                            SIGNATURE AUTHORIZATION
<TABLE>
               =================================================================================================
<S>                                                                <C>
Borrower:      MOTIVE COMMUNICATIONS, INC., A DELAWARE             Lender:      Imperial Bank
               CORPORATION                                                      Emerging Growth Industries Group-
               9211 WATERFORD CENTRE BLVD., STE. 100                            Southwest Regional Office
               AUSTIN, TX 78759                                                 226 Airport Parkway
                                                                                San Jose, CA 95110-1024
               =================================================================================================
</TABLE>

This SIGNATURE AUTHORIZATION is attached to and by this reference is made a part
of each Borrowing Resolution, dated May 19, 1999, and executed in connection
with a loan or other financial accommodations between Imperial Bank and MOTIVE
COMMUNICATIONS, INC., A DELAWARE CORPORATION.

The individuals named below, any one acting alone, are hereby authorized and
appointed for and on behalf of Borrower from time to time to do any of the
following:

(1) To request advances of credit under the Agreement and to effect repayment of
any credit outstanding under the Agreement;

(2) To execute and deliver assignments, borrowing certificates, instruments,
schedules, reports, invoices, bills, shipping documents and such other documents
or certificates as may be necessary or appropriate under the Agreement or any
other agreement or instrument relating thereto or delivered in connection
therewith;

(3) To transfer and endorse to Bank in payment of Borrower's obligations to Bank
any checks, drafts, notes or other instruments payable to Borrower; and

(4) To do or perform any and all other acts or matters in any way relating to
any or all of the foregoing.
<PAGE>

The undersigned individuals each further certifies that the specimen signatures
below are the genuine signatures of the individuals designated herein and that
their signatures shall be binding on Borrower until Bank receives written notice
of termination of the authority of any such designated individuals.

Signature: /s/ Scott L. Harmon
          ------------------------------

Name: Scott L. Harmon
     -----------------------------------

Signature: /s/ Pat Motola
          ------------------------------

Name: Pat Motola
     -----------------------------------

Signature: /s/ Scott Abel
          ------------------------------

Name: Scott Abel
     -----------------------------------

Signature:
          ------------------------------

Name:
     -----------------------------------

THIS SIGNATURE AUTHORIZATION IS EXECUTED ON MAY 19, 1999.

BORROWER:

MOTIVE COMMUNICATIONS, INC., A DELAWARE CORPORATION

By: /s/ Scott Harmon
   -------------------------------------
   Scott Harmon, President & CEO

LENDER:

Imperial Bank

By:
   -------------------------------------
   Authorized Officer
<PAGE>

[LOGO]

<TABLE>
<CAPTION>
                                                 PROMISSORY NOTE
---------------------------------------------------------------------------------------------------------------------
  Principal    Loan Date       Maturity      Loan No.      Call    Collateral     Account      Officer      Initials
$2,500,000.00  05-19-1999     05-17-2000     721000060                            622601         261
---------------------------------------------------------------------------------------------------------------------
References in the shaded area are for Lender's use only and do not limit the applicability of this document to any
particular loan or item.
---------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>
BORROWER:   MOTIVE COMMUNICATIONS, INC., A DELAWARE              Lender:    Imperial Bank
            CORPORATION                                                     Emerging Growth Industries Group-
            9211 WATERFORD CENTRE BLVD., STE. 100                           Southwest Regional Office
            AUSTIN, TX 78759                                                226 Airport Parkway
                                                                            San Jose, CA 95110-1024
=====================================================================================================================
</TABLE>

Principal Amount: $2,500,000.00  Initial Rate: 7.750% Date of Note: May 19, 1999

PROMISE TO PAY. MOTIVE COMMUNICATIONS, INC., A DELAWARE CORPORATION ("Borrower")
promises to pay to Imperial Bank ("Lender"), or order, in lawful money of the
United States of America, the principal amount of Two Million Five Hundred
Thousand & 00/100 Dollars ($2,500,000.00) or so much as may be outstanding,
together with interest on the unpaid outstanding principal balance of each
advance. Interest shall be calculated from the date of each advance until
repayment of, each advance.

PAYMENT. Borrower will pay this loan in one payment of all outstanding principal
plus all accrued unpaid interest on May 17, 2000. In addition, Borrower will pay
regular monthly payments of accrued unpaid interest beginning June 19, 1999, and
all subsequent interest payments are due on the same day of each month after
that. The annual interest rate for this Note is computed on a 365/360 basis;
that is, by applying the ratio of the annual interest rate over a year of 360
days, multiplied by the outstanding principal balance, multiplied by the actual
number of days the principal balance is outstanding. Borrower will pay Lender at
Lender's address shown above or at such other place as Lender may designate in
writing. Unless otherwise agreed or required by applicable law, payments will be
applied first to any unpaid collection costs and any late charges, then to any
unpaid interest, and any remaining amount to principal.

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from
time to time based on changes in an index which is the Imperial Bank Prime Rate
(the "Index"). The Prime Rate is the rate announced by Lender as its Prime Rate
of interest from time to time. Lender will tell Borrower the current Index rate
upon Borrower's request. Borrower understands that Lender may make loans based
on other rates as well. The interest rate change will not occur more often than
each day. The Index currently is 7.750%. The interest rate to be applied to the
unpaid principal balance of this Note will be at a rate equal to the Index,
resulting in an initial rate of 7.750%. NOTICE: Under no circumstances will the
interest rate on this Note be more than the maximum rate allowed by applicable
law.

PREPAYMENT; MINIMUM INTEREST CHARGE. In any event, even upon full prepayment of
this Note, Borrower understands that Lender is entitled to a minimum interest
charge of $250.00. Other than Borrower's obligation to pay any minimum interest
charge, Borrower may pay without penalty all or a portion of the amount owed
earlier than it is due. Early payments will not, unless agreed to by Lender in
writing, relieve Borrower of Borrower's obligation to continue to make payments
of accrued unpaid interest. Rather, they will reduce the principal balance
due.

LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged
5.000% of the unpaid portion of the regularly scheduled payment.

DEFAULT. Borrower will be in default if any of the following happens: (a)
Borrower fails to make any payment when due. (b) Borrower breaks any promise
Borrower has made to Lender, or Borrower fails to comply with or to perform when
due any other term, obligation, covenant, or condition contained in this Note or
any agreement related to this Note, or in any other agreement or loan Borrower
has with Lender. (c) Any representation or statement made or furnished to Lender
by Borrower or on Borrower's behalf is false or misleading in any material
respect either now or at the time made or furnished. (d) Borrower becomes
insolvent, a receiver is appointed for any part of Borrower's property, Borrower
makes an assignment for the benefit of creditors, or any proceeding is commenced
either by Borrower or against Borrower under any bankruptcy or insolvency laws.
(e) Any creditor tries to take any of Borrower's property on or in which Lender
has a lien or security interest. This includes a garnishment of any of
Borrower's accounts with Lender. (f) Any guarantor dies or any of the other
events described in this default section occurs with respect to any guarantor of
this Note. (g) A material adverse change occurs in Borrower's financial
condition, or Lender believes the prospect of payment or performance of the
Indebtedness is impaired. (h) Lender in good faith deems itself insecure.

If any default, other than a default in payment, is curable and If Borrower has
not been given a notice of a breach of the same provision of this Note within
the preceding twelve (12) months, it may be cured (and no event of default will
have occurred) if Borrower, after receiving written notice from Lender demanding
cure of such default: (a) cures the default within ten (10) days; or (b) if the
cure requires more than ten (10) days, immediately initiates steps which Lender
deems in Lender's sole discretion to be sufficient to cure the default and
there-after continues and completes all reasonable and necessary steps
sufficient to produce compliance as soon as reasonably practical.
<PAGE>

LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal
balance on this Note and all accrued unpaid interest immediately due, without
notice, and then Borrower will pay that amount. Upon Borrower's failure to pay
all amounts declared due pursuant to this section, including failure to pay upon
final maturity, Lender, at its option, may also, if permitted under applicable
law, do one or both of the following: (a) increase the variable Interest rate on
this Note to 5.000 percentage points over the Index, and (b) add any unpaid
accrued interest to principal and such sum will bear interest therefrom until
paid at the rate provided in this Note (including any increased rate). Lender
may hire or pay someone else to help collect this Note if Borrower does not pay.
Borrower also will pay Lender that amount. This includes, subject to any limits
under applicable law, Lender's attorneys' fees and Lender's legal expenses
whether or not there is a lawsuit, including attorneys' fees and legal expenses
for bankruptcy proceedings (including efforts to modify or vacate any automatic
stay or injunction), appeals, and any anticipated post-judgment collection
services. Borrower also will pay any court costs, in addition to all other sums
provided by law. This Note has been delivered to Lender and accepted by Lender
in the State of California. If there is a lawsuit, Borrower agrees upon Lender's
request to submit to the jurisdiction of the courts of Los Angeles County, the
State of California. Lender and Borrower hereby waive the right to any jury
trial in any action, proceeding, or counterclaim brought by either Lender or
Borrower against the other. (Initial Here SH) This Note shall be governed by
                                          --
and construed in accordance with the laws of the State of California.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $25.00 if Borrower
makes a payment on Borrower's loan and the check or preauthorized charge with
which Borrower pays is later dishonored.

RIGHT OF SETOFF. Borrower grants to Lender a contractual security interest in,
and hereby assigns, conveys, delivers, pledges, and transfers to Lender all
Borrower's right, title and interest in and to, Borrower's accounts with Lender
(whether checking, savings, or some other account), including without limitation
all accounts held jointly with someone else and all accounts Borrower may open
in the future, excluding however all IRA and Keogh accounts, and all trust
accounts for which the grant of a security interest would be prohibited by law.
Borrower authorizes Lender, to the extent permitted by applicable law, to charge
or setoff all sums owing on this Note against any and all such accounts.

LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under
this Note may be requested orally by Borrower or by an authorized person. All
oral requests shall be confirmed in writing on the day of the request. All
communications, instructions, or directions by telephone or otherwise to Lender
are to be directed to Lender's office shown above. The following party or
parties are authorized to request advances under the line of credit until Lender
receives from Borrower at Lender's address shown above written notice of
revocation of their authority: SCOTT HARMON, PRESIDENT & CEO; PAT MOTOLA, VP,
BUS. DEV. & CFO; and SCOTT ABEL, VP, ON LINE SERVICES. Borrower agrees to be
liable for all sums either: (a) advanced in accordance with the instructions of
an authorized person or (b) credited to any of Borrower's accounts with Lender.
The unpaid principal balance owing on this Note at any time may be evidenced by
endorsements on this Note or by Lender's internal records, including daily
computer print-outs. Lender will have no obligation to advance funds under this
Note if (a) Borrower or any guarantor is in default under the terms of this Note
or any agreement that Borrower or any guarantor has with Lender, including any
agreement made in connection with the signing of this Note; (b) Borrower or any
guarantor ceases doing business or is insolvent; (c) any guarantor seeks, claims
or otherwise attempts to limit, modify or revoke such guarantor's guarantee of
this Note or any other loan with Lender; (d) Borrower has applied funds
provided pursuant to this Note for purposes other than those authorized by
Lender; or (e) Lender in good faith deems itself insecure under this Note or any
other agreement between Lender and Borrower.

CREDIT TERMS AND CONDITIONS AGREEMENT. This Note is subject to the provisions of
the Credit Terms and Conditions Agreement dated June 6, 1998 and all amendments
thereto and replacements therefor.
<PAGE>

05-19-1999                      PROMISSORY NOTE                           Page 2
                                  (Continued)
================================================================================
GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or
remedies under this Note without losing them. Borrower and any other person who
signs, guarantees or endorses this Note, to the extent allowed by law, waive any
applicable statute of limitations, presentment, demand for payment, protest and
notice of dishonor. Upon any change in the terms of this Note, and unless
otherwise expressly slated in writing, no party who signs this Note, whether as
maker, guarantor, accommodation maker or endorser, shall be released from
liability. All such parties agree that Lender may renew or extend (repeatedly
and for any length of time) this loan, or release any party or guarantor or
collateral; or impair, fail to realize upon or perfect Lender's security
interest in the collateral; and take any other action deemed necessary by Lender
without the consent of or notice to anyone. All such parties also agree that
Lender may modify this loan without the consent of or notice to anyone other
than the party with whom the modification is made.

PRIOR TO, SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF
THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO
THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE NOTE.

BORROWER:

MOTIVE COMMUNICATIONS, INC., A DELAWARE CORPORATION

By: /s/ Scott Harmon
   -----------------------------------
   SCOTT HARMON, PRESIDENT & CEO

================================================================================
<PAGE>

                                                                    June 5, 1998

Imperial Bank                             Borrower:  Motive Communications, Inc.
Member FDIC

226 Airport Parkway
San Jose, CA 95110

Subject: Amended and Restated Credit Terms and Conditions ("Agreement")

Gentlemen:

To induce you to make loans to the undersigned (herein called "Borrower"), and
in consideration of any loan or loans you, in your sole discretion, may make to
Borrower, Borrower warrants and agrees as follows:

A.   Borrower represents and warrants that:
     1. Existence and Rights.
           Borrower is a Delaware corporation.

Borrower is duly organized and existing and in good standing under the laws of
the State of Delaware and is authorized and in good standing to do business in
the State of Texas. Borrower has powers and adequate authority, rights and
franchises to own its property and to carry on its business as now conducted,
and is duly qualified and in good standing in each State in which the character
of the properties owned by it therein or the conduct of its business makes such
qualification necessary, and Borrower has the power and adequate authority to
make and carry out this Agreement. Borrower has no investment in any other
business entity.

     2. Agreement Authorized. The execution, delivery and performance of this
Agreement are duly authorized and do not require the consent or approval of any
governmental body or other regulatory authority, are not in contravention of or
in conflict with any law or regulation or any term or provision of Borrower's
articles of incorporation, by-laws, or Articles of Association, as the case may
be, and this Agreement is the valid, binding and legally enforceable obligation
of Borrower in accordance with its terms.

     3. No Conflict. The execution, delivery and performance of this Agreement
are not in contravention of or in conflict with any agreement, indenture or
undertaking to which Borrower is a party or by which it or any of its property
may be bound or affected, and do not cause any lien, charge or other encumbrance
to be created or imposed upon any such property by reason thereof.

     4. Litigation. There is no litigation or other proceeding pending or
threatened against or affecting Borrower, and Borrower is not in default with
respect to any order, writ, injunction, decree or demand of any court or other
governmental or regulatory authority.

     5. Financial Condition. The balance sheet of Borrower as of March 1998 and
the related profit and loss statement for the period ended on that date, a copy
of which has heretofore been delivered to you by Borrower, and all other
statements and data submitted in writing by Borrower to you in connection with
this request for credit are true and correct, and said balance sheet and profit
and loss statement truly present the financial condition of Borrower as of the
date thereof and the results of the operations of Borrower for the period
covered thereby, and have been prepared in accordance with generally accepted
accounting principles on a basis consistently maintained. Since such date there
have been no materially adverse changes in the financial condition or business
of Borrower. Borrower has no knowledge of any liabilities, contingent or
otherwise, at such date not reflected in said balance sheet, and Borrower has
not entered into any special commitments or substantial contracts which are not
reflected in said balance sheet, other than in the ordinary and normal course of
its business, which may have a materially adverse effect upon its financial
condition, operations or business as now conducted.

     6. Title to  Assets.  Borrower  has good title to its assets, and the same
are not subject to any liens or encumbrances other than those permitted by
Section C.3 hereof.

     7. Tax Status.  Borrower has no liability for any delinquent state, local
or federal taxes, and if Borrower has contracted with any government agency,
Borrower has no liability for negotiation of profits.

     8. Trademarks, Patents. Borrower, as of the date hereof, possesses all
necessary trademarks, trade names, copyrights, patents, patent rights, and
licenses to conduct its business as now operated, without any known conflict
with the valid trademarks, trade names, copyrights, patents and license rights
of others.

     9. Regulation U. The proceeds of this loan shall not be used to purchase or
carry margin stock (as defined with Regulation U of the Board of Governors of
the Federal Reserve system).

B.   Borrower agrees that so long as it is indebted to you, it will, unless you
shall otherwise consent in writing:

     1. Rights and Facilities.  Maintain and preserve all rights, franchises and
other authority adequate for the conduct of its business; maintain its
properties, equipment and facilities in good order and repair, conduct its
business in an orderly manner without voluntary interruption and, if a
corporation or partnership, maintain and preserve its existence.

     2. Insurance.  Maintain public liability, property damage and workers'
compensation insurance and insurance, on all its insurable property against fire
and other hazards with responsible insurance: carriers to the extent usually
maintained by similar businesses.

     3. Taxes and Other Liabilities. Pay and discharge, before the same become
delinquent and before penalties accrue thereon, all taxes, assessments and
governmental charges upon or against it or any of its properties, and all its
other liabilities at any time existing, except to the extent and so long as:

(a) The same are being contested in good faith and by appropriate proceedings in
such manners as not to cause any materially adverse effect upon its financial
condition or the loss of any right of redemption from any sale thereunder, and

(b) it shall have set aside on its books reserves (segregated to the extent
required by generally accepted accounting practice) deemed by it adequate with
respect thereto.

     4. Records and Reports. Maintain a standard and modem system of accounting
in accordance with generally accepted accounting principles on a basis
consistently maintained; permit your representatives to have access to, and to
examine its properties, books and records at all reasonable times upon
reasonable notice; and furnish you:

(a) As soon as available, and in any event within 25 days attar the close or
each month of each fiscal year of Borrower, commencing with the month next
ending, a balance sheet, profit and loss statement and reconciliation of
Borrower's capital accounts as of the close of such period and covering
operations for the portion of Borrower's fiscal year ending on the last day of
such period, all in reasonable detail and stating in comparative form the
figures for the corresponding date and period in the previous fiscal year,
prepared in accordance with generally accepted accounting principles on a basis
consistently maintained by Borrower and certified by an appropriate officer of
Borrower, subject, however, to year end audit adjustments;

(b) As soon as available, compiled annual financial statements within 30 days
after fiscal year end for December 31, 1998 Thereafter, audited FYE statements
due within 90 days after the close of each fiscal year of Borrower, a report of
annual statements of Company as of the close of and for such fiscal year, all in
reasonable detail and stating in comparative form the figures as of the close of
and for the previous fiscal year, with the unqualified opinion of accountants
satisfactory to you.

(d) Promptly after the receipt thereof by Borrower, copies of any detailed audit
reports submitted to Borrower by independent accountants in connection with each
annual or interim audit of the accounts of Borrower made by such accountants;

(e) Promptly after the same are available, copies of all such proxy statements,
financial statements and reports as Borrower shall send to its stockholders, if
any, and copies of all reports which Borrower may file with the Securities and
Exchange Commission or any governmental authority at any time substituted
therefor, and

(f) Such other information relating to the affairs of Borrower as you reasonably
may request from time to time.
<PAGE>

(c) Within 25 days after the close of each month of each fiscal year of
Borrower, a certificate by chief financial officer or partner of Borrower,
stating that Borrower has performed and observed each and every covenant
contained in this Letter of Inducement to be performed by it and that no event
has occurred and no condition then exists which constitutes an event of default
hereunder or would constitute such an event of default upon the lapse of time or
upon the giving of notice and the lapse of time specified herein, or, if any
such event has occurred or any such condition exists, specifying the nature
thereof;

(g) Notice of Default.  Promptly notify the Bank in writing of the occurrence of
any event of default hereunder or any event which upon notice and lapse of time
would be an event of default

C. Borrower agrees that so long as it is indebted to you, it will not, without
your written consent:

   1. Transactions Outside Ordinary Course. Enter into any transaction outside
the ordinary course of business except for the sale of capital stock to venture
investors, provided that Borrower promptly delivers written notification to Bank
of any such stock sale, and except for joint ventures, strategic alliances,
licensing and similar arrangements customary in Borrower's industry for business
similarly situated to Borrower and which do not require Borrower to assume or
otherwise become liable for the obligations of any third party not directly
related to or arising out of such arrangement, or require Borrower to transfer
ownership of assets to such joint venture or other entity.

   2. Sell or Transfer of Collateral. Sell or transfer any collateral in which
Bank has been granted a security interest by Borrower.

   3. Dividends.  Pay or declare any dividends on Borrower's stock (except for
dividends payable solely in stock of Borrower).

   4. Acquire Borrower's Stock. Redeem, retire, purchase or otherwise acquire,
directly or indirectly, any of Borrower's stock other than the repurchase of
Borrower's then issued stock from Borrower's employees or directors or service
providers pursuant to written agreements with Borrower under which Borrower has
the option to repurchase such stock at cost upon the occurrence of certain
events such as the termination of employment.

D. The occurrence of any one of the following events of default shall, at your
option, terminate your commitment to lend and make all sums of principal and
interest then remaining unpaid on all Borrower's indebtedness to you immediately
due and payable, all without demand, presentment or notice, all of which are
hereby expressly waived.

   1. Failure to Pay.  Failure to pay any installment of principal or of
interest on any indebtedness of Borrower to you for a period of two (2) days
after its due date.

   2. Breach of Covenant. Failure of Borrower to perform any other term or
condition of this Agreement or any other agreement or document executed by
Borrower in favor of Bank binding upon Borrower for a period of ten (10) days
after notice from Bank.

   3. Breach of Warranty. Any of Borrower's representations or warranties made
herein or any statement or certificate at any time given in writing pursuant
hereto or in connection herewith shall be false or misleading in any material
respect for a period of ten (10) days after notice from Bank.

   4. Insolvency; Receiver or Trustee. Borrower shall become insolvent; or
admit its inability to pay its debts as they mature; or make an assignment for
the benefit of creditors; or apply for or consent to the appointment of a
receiver or trustee for it cc for a substantial part of its property or
business.

   5. Judgments, Attachments. Any money judgment, writ or warrant of attachment,
or similar process shall be entered or filed against Borrower or any of its
assets and shall remain unvacated unbonded or unstayed for a period of 10 days
or in any event later than five days prior to the date of any proposed sale
thereunder.

   6. Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation
proceedings or other proceedings for relief under any bankruptcy law or any law
for the relief of debtors shall be instituted by or against Borrower and, if
instituted against it, shall be consented to.

E. Miscellaneous Provisions.

   1. Failure or Indulgence Not Waiver. No failure or delay on the part
of your Bank or any holder of Notes issued hereunder, in the exercise of any
power, right or privilege hereunder shall operate as a waiver thereof; nor shall
any single or partial exercise of any such power, right or privilege preclude
other or further exercise thereof or of any other right, power or privilege. All
rights and remedies existing under this agreement or any note issued in
connection with a loan that your Bank may make hereunder, are cumulative to, and
not exclusive of,

The Commitment Letter dated May 14, 1998, is attached hereto and incorporated
herein by this reference for additional terms. In the event of a conflict
between this Agreement and the Letter, the terms in the Letter shall take
precedence.

MOTIVE COMMUNICATIONS, INC.

By: /s/ Scott L. Harmon
    -------------------------------
       (Authorized Signature)

By: Scott L. Harmon
    -------------------------------
       (Print Name)

By: President & CEO
    -------------------------------
       (Title)
<PAGE>

      First Amendment to Amended and Restated Credit Terms and Conditions
                            and Attachment Thereto

         This First Amendment ("Amendment") amends that certain Amended and
Restated Credit Terms and Conditions dated June 5, 1998 ("Credit Terms and
Conditions"), by and between Imperial Bank ("Bank") and Motive Communications,
Inc. ("Borrower") and the Commitment Letter attached thereto dated May 14, 1998
(the "Commitment Letter"), (collectively herein the Credit Terms and Conditions
and the Commitment Letter are referred to as the "Agreement") as follows:

1.       The following Paragraph A. l0 is added to the Credit Terms and
         Conditions:

         "10. Borrower and its subsidiaries have reviewed the areas within their
         operations and business which could be adversely affected by, and have
         developed or are developing a program to address on a timely basis, the
         Year 2000 Problem and have made related appropriate inquiry of material
         suppliers and vendors, and based on such review and program, the Year
         2000 Problem will not have a Material Adverse Effect upon its financial
         condition, operations or business as now conducted. "Year 2000
         Problem" means the possibility that any computer applications or
         equipment used by Borrower may be unable to recognize and properly
         perform date-sensitive functions involving certain dates prior to and
         any dates on or after December 31, 1999."

2.       The following Paragraph B.5 is added to the Credit Terms and
         Conditions:

         "5. YEAR 2000 COMPLIANCE. Borrower shall perform all acts reasonably
         necessary to ensure that (a) Borrower and any business in which
         Borrower holds a substantial interest, and (b) all customers, suppliers
         and vendors that are material to Borrower's business, become Year 2000
         Compliant in a timely manner. Such acts shall include, without
         limitation, performing a comprehensive review and assessment of all
         Borrower's systems and adopting a detailed plan, with itemized budget,
         for the remediation, monitoring and testing of such systems. As used in
         this paragraph, "Year 2000 Compliant" shall mean, in regard to any
         entity, that all software, hardware, firmware, equipment, goods or
         systems utilized by or material to the business operations or financial
         condition of such entity, will properly perform date sensitive
         functions before, during and after the year 2000. Borrower shall,
         immediately upon request, provide to Bank such certifications or other
         evidence of Borrower's compliance with the terms of this paragraph as
         Bank may from time to time require."

3.       The following Sections F, G and H are hereby added to the Agreement:

         "F.  Applicable Law.  This Agreement and all other agreements and
         instruments required by Bank in connection therewith shall be governed
         by and construed according to the laws of the state of California.
<PAGE>

G. Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH
CANNOT BE WAIVED, THE BANK AND THE BORROWER EACH HEREBY WAIVES AND COVENANTS
THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT
TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE, CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE SUBJECT MATTER HEREOF OR THEREOF OR ANY OBLIGATION OR IN ANY WAY
CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE BANK OR THE
BORROWER IN CONNECTION WITH ANY OF THE ABOVE, IN EACH CASE WHETHER NOW EXISTING
OR HEREAFTER ARISING AND WHETHER IN CONTRACT OR TORT OR OTHERWISE

H. Judicial Reference (a) Other than (i) non-judicial foreclosure and all
matters in connection therewith regarding security interests in real or personal
property; or (ii) the appointment of a receiver, or the exercise of other
provisional remedies (any and all of which may be initiated pursuant to
applicable law), each controversy, dispute or claim between the parties arising
out of or relating to this document ("Agreement"), which controversy, dispute or
claim is not settled in writing within thirty (30) days after the "Claim Date"
(defined as the date on which a party subject to the Agreement gives written
notice to all other parties that a controversy, dispute or claim exists), will
be settled by a reference proceeding in California in accordance with the
provisions of Section 638 et seq. of the California Code of Civil Procedure, or
their successor section ("CCP"), which shall constitute the exclusive remedy for
the settlement of any controversy, dispute or claim concerning this Agreement,
including whether such controversy, dispute or claim is subject to the reference
proceeding and except as set forth above, the parties waive their rights to
initiate any legal proceedings against each other in any court or jurisdiction
other than the Superior Court in the County where the Real Property, if any, is
located or Los Angeles County if none (the "Court"). The referee shall be a
retired Judge of the Court selected by mutual agreement of the parties, and if
they cannot so agree within forty-five (45) days after the Claim Date, the
referee shall be promptly selected by the Presiding Judge of the Court (or his
representative). The referee shall be appointed to sit as a temporary judge,
with all of the powers for a temporary judge, as authorized by law, and upon
selection should take and subscribe to the oath of office as provided for in
Rule 244 of the California Rules of Court (or any subsequently enacted Rule).
Each party shall have one peremptory challenge pursuant to CCP (S)170.6. The
referee shall (a) be requested to set the matter for hearing within sixty (60)
days after the Claim Date and (b) try any and all issues of law or fact and
report a statement of decision upon them, if possible, within ninety (90) days
of the Claim Date. Any decision rendered by the referee will be final, binding
and conclusive and judgment shall be entered pursuant to CCP (S)644 in any court
in the State of California having jurisdiction. Any party may apply for a
reference proceeding at any time after thirty (30) days following notice to any
other party of the nature of the controversy, dispute or claim, by filing a
petition for a hearing and/or trial. All discovery permitted by this Agreement
shall be completed no later than fifteen (15) days before the first hearing date
established
                                       2
<PAGE>

     by the referee. The referee may extend such period in the event of a
     party's refusal to provide requested discovery for any reason whatsoever,
     including, without limitation, legal objections raised to such discovery or
     unavailability of a witness due to absence or illness. No party shall be
     entitled to "priority" in conducting discovery. Depositions may be taken by
     either party upon seven (7) days written notice, and request for production
     or inspection of documents shall be responded to within ten (10) days after
     service. All disputes relating to discovery which cannot be resolved by the
     parties shall be submitted to the referee whose decision shall be final and
     binding upon the parties. Pending appointment of the referee as provided
     herein, the Superior Court is empowered to issue temporary and/or
     provisional remedies, as appropriate.

         (b) Except as expressly set forth in this Agreement, the referee shall
     determine the manner in which the reference proceeding is conducted
     including the time and place of all hearings, the order of presentation of
     evidence, and all other questions that arise with respect to the course of
     the reference proceeding. All proceedings and hearings conducted before the
     referee, except for trial, shall be conducted without a court reporter,
     except that when any party so requests, a court reporter will be used at
     any hearing conducted before the referee. The party making such a request
     shall have the obligation to arrange for and pay for the court reporter.
     The costs of the court reporter at the trial shall be borne equally by the
     parties.

         (c) The referee shall be required to determine all issues in accordance
     with existing case law and the statutory laws of the State of California.
     The rules of evidence applicable to proceedings at law in the State of
     California will be applicable to the reference proceeding. The referee
     shall be empowered to enter equitable as well as legal relief, to provide
     all temporary and/or provisional remedies and to enter equitable orders
     that will be binding upon the parties. The referee shall issue a single
     judgment at the close of the reference proceeding which shall dispose of
     all of the claims of the parties that are the subject of the reference. The
     parties hereto expressly reserve the right to contest or appeal from the
     final judgment or any appealable order or appealable judgment entered by
     the referee. The parties hereto expressly reserve the right to findings of
     fact, conclusions of law, a written statement of decision, and the right to
     move for a new trial or a different judgment, which new trial, if granted,
     is also to be a reference proceeding under this provision.

         (d) In the event that the enabling legislation which provides for
     appointment of a referee is repealed (and no successor statute is enacted),
     any dispute between the parties that would otherwise be determined by the
     reference procedure herein described will be resolved and determined by
     arbitration. The arbitration will be conducted by a retired judge of the
     Court, in accordance with the California Arbitration Act, (S)1280 through
     (S)1294.2 of the CCP as amended from time to time. The limitations with
     respect to discovery as set forth hereinabove shall apply to any such
     arbitration proceeding.

4    The last paragraph of the Credit Terms and Conditions is hereby amended in
     full to read as follows:

                                       3
<PAGE>

         "The Commitment Letter dated, April 29, 1999 as may be amended or
     replaced, (the "Letter") is attached hereto and incorporated herein by this
     reference for additional terms. In the event of a conflict between this
     Agreement and the term of the Letter the terms in the Letter shall take
     precedence."

5.   Except as provided above, the Agreement remains unchanged and in full force
and effect.

6.   This Amendment is effective as of May 19, 1999 and the parties hereby
confirm that the Agreement as amended is in full force and effect.

Motive Communications, Inc.

By: /s/ Scott L. Harmon
    ---------------------------

Name:  Scott L. Harmon
      -------------------------

Title: President & CEO
       ------------------------

Imperial Bank

By:____________________________

Name:__________________________

Title:_________________________

                                       4
<PAGE>

                                  Exhibit A-E

Pursuant to Item 601(b) (2) of Regulation S-K, this exhibit has been omitted.
Such exhibit will be submitted to the Securities and Exchange Commission upon
request.

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