Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On May 29, 2009, Kana Software, Inc. ("KANA"), entered into a separation agreement and release (the "Agreement") with Michael J. Shannahan, KANA's former Chief Financial Officer. Pursuant to the Agreement, KANA paid Mr. Shannahan $137,500, which represented six months of his base salary, less applicable state and federal payroll deductions. In addition, KANA will pay Mr. Shannahan $27,552, less applicable state and federal payroll deductions, in six equal installments beginning on June 1, 2009 and ending on September 15, 2009. KANA also has agreed to pay Mr. Shannahan's health insurance premiums for six months under the Consolidated Omnibus Budget Reconciliation Act of 1995 (COBRA). Mr. Shannahan provided KANA and its affiliates with a general release of claims and covenant not to sue.

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