On September 9, 2009, the board of directors of Saba Software, Inc. (the "Company") appointed Mr. William M. Klein to the board of directors as a Class III director, and to the audit committee of the board of directors, with such appointments effective as of September 9, 2009. As a result of Mr. Klein's appointment to the audit committee, the Company expects to receive notification from NASDAQ that it has regained compliance with NASDAQ Listing Rule 5605(c)(2)(A), which requires that the audit committee of the Company's board of directors be comprised of at least three members.

In connection with his appointment, Mr. Klein was granted an option to purchase 20,000 shares of the Company's common stock at an exercise price of $3.93 per share and became eligible to receive an annual retainer of $30,000 for serving on the board of directors. Mr. Klein also became eligible to receive a committee retainer, per meeting fees and annual option grants, each in connection with the Company's director compensation policies as described further in the Company's definitive proxy statement filed with the Securities and Exchange Commission on September 26, 2008. The vesting and other terms of the option grants are in accordance with the policies set forth in the Company's proxy statement.

On September 10, 2009, the Company issued a press release announcing the appointment of Mr. Klein to the Company's board of directors and the audit committee of the board of directors. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

(d) Exhibits.

The following exhibit is being furnished with this Current Report on Form 8-K:

                 Exhibit
                 Number    Description
                 99.1      Press Release dated September 10, 2009