Form of Rights Certificate



 Exhibit 4.01 
  
 FORM OF RIGHT CERTIFICATE 
  

			
	Certificate No. R-                    	  	                     Rights

  
 NOT EXERCISABLE AFTER FEBRUARY 3, 2009
OR EARLIER IF REDEEMED, EXCHANGED OR AMENDED. THE RIGHTS ARE SUBJECT TO REDEMPTION, EXCHANGE AND AMENDMENT AT THE OPTION OF THE COMPANY, ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES SPECIFIED IN THE RIGHTS AGREEMENT,
RIGHTS THAT ARE OR WERE BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE OR AN ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) OR A TRANSFEREE THEREOF MAY BECOME NULL AND VOID. 
  
 RIGHT CERTIFICATE 
  
 KANA SOFTWARE, INC.

  
 This certifies that
                            , or registered assigns, is the registered owner of the number of Rights
set forth above, each of which entitles the owner thereof, subject to the terms, provisions, and conditions of the Rights Agreement, (the “Rights Agreement”), by and between Kana Software, Inc., a Delaware
corporation (the “Company”), and U.S. Stock Transfer Corporation, a California corporation (the “Rights Agent”), dated as of January 26, 2006, to purchase from the
Company at any time after the Distribution Date (as such term is defined in the Rights Agreement) and prior to 5:00 p.m. (Pacific time) on the Expiration Date (as such term is defined in the Rights Agreement) at the principal office of the Rights
Agent designated for such purpose, one one-hundredth of a fully paid nonassessable share of Series A Junior Participating Preferred Stock, par value $0.001 per share (the “Preferred Shares”), of the Company, at
a purchase price of $4.00 per one one-hundredth of a Preferred Share (the “Purchase Price”), upon presentation and surrender of this Right Certificate with the Form of Election to Purchase and related
Certificate duly executed. If this Right Certificate is exercised in part, the holder will be entitled to receive upon surrender hereof another Right Certificate or Right Certificates for the number of whole Rights not exercised. The number of
Rights evidenced by this Right Certificate (and the number of one one-hundredths of a Preferred Share which may be purchased upon exercise thereof) set forth above, and the Purchase Price set forth above, are the number and Purchase Price as of the
date of the Rights Agreement, based on the Preferred Shares as constituted at such date. Terms used herein with initial capital letters and not defined herein are used herein with the meanings ascribed thereto in the Rights Agreement. 
  
 As provided in the Rights Agreement, the Purchase Price and/or the number
and/or kind of securities issuable upon the exercise of the Rights evidenced by this Right Certificate are subject to adjustment upon the occurrence of certain events. 
  
 This Right Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms,
provisions and conditions are hereby incorporated herein by reference and made apart hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities of the








 Rights Agent, the Company and the holders of the Right Certificates, which limitations of rights include the temporary
suspension of the exercisability of the Rights under the circumstances specified in the Rights Agreement. Copies of the Rights Agreement are on file at the office of the Rights Agent and can be obtained from the Company without charge upon written
request therefor. 
  
 Pursuant to the Rights Agreement, from and
after the occurrence of a Flip-in Event, any Rights that are Beneficially Owned by (i) any Acquiring Person (or any Affiliate or Associate of any Acquiring Person), (ii) a transferee of any Acquiring Person (or any such Affiliate or
Associate) who becomes a transferee after the occurrence of a Flip-in Event or (iii) a transferee of any Acquiring Person (or any such Affiliate or Associate) who became a transferee prior to or concurrently with the Flip-in Event pursuant to
either (a) a transfer from an Acquiring Person to holders of its equity securities or to any Person with whom it has any continuing agreement, arrangement or understanding regarding the transferred Rights or (b) a transfer which the Board
of Directors of the Company has determined is part of a plan, arrangement or understanding which has the purpose or effect of avoiding certain provisions of the Rights Agreement, and subsequent transferees of any of such Persons, will be void
without any further action and any holder of such Rights will thereafter have no rights whatsoever with respect to such Rights under any provision of the Rights Agreement. From and after the occurrence of a Flip-in Event, no Right Certificate will
be issued that represents Rights that are or have become void pursuant to the provisions of the Rights Agreement, and any Right Certificate delivered to the Rights Agent that represents Rights that are or have become void pursuant to the provisions
of the Rights Agreement will be canceled. 
  
 This Right
Certificate, with or without other Right Certificates, may be transferred, split up, combined or exchanged for another Right Certificate or Right Certificates entitling the holder to purchase a like number of one one-hundredths of a Preferred Share
(or other securities, as the case may be) as the Right Certificate or Right Certificates surrendered entitled such holder (or former holder in the case of a transfer) to purchase, upon presentation and surrender hereof at the principal office of the
Rights Agent designated for such purpose, with the Form of Assignment (if appropriate) and the related Certificate duly executed. 
  
 Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate may be redeemed by the Company at its option at a redemption
price of $0.0001 per Right or may be exchanged in whole or in part. The Rights Agreement may be supplemented and amended by the Company, as provided therein. 
  
 The Company is not required to issue fractions of Preferred Shares (other than fractions which are integral multiples of one one-hundredth of a Preferred
Share, which may, at the option of the Company, be evidenced by depositary receipts) or other securities issuable upon the exercise of any Right or Rights evidenced hereby. In lieu of issuing such fractional Preferred Shares or other securities, the
Company may make a cash payment, as provided in the Rights Agreement. 
  
 No holder of this Right Certificate, as such, will be entitled to vote or receive dividends or be deemed for any purpose the holder of the Preferred Shares or of any other securities of the Company which may at any time be issuable upon the
exercise of the Right or Rights represented hereby, nor will anything contained herein or in the Rights Agreement be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the
election of directors or upon any ratter submitted to stockholders at any meeting 







 thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions
affecting stockholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Right Certificate have been exercised in accordance with the provisions of
the Rights Agreement. 
  
 This Right Certificate will not be valid
or obligatory for any purpose until it has been countersigned by the Rights Agent. 
  
 [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] 







 WITNESS the facsimile signature of the proper officers of the Company and its corporate seal. 

 
 Dated as of
                         ,             .

  

			
	KANA SOFTWARE, INC.
		
	By:	 	  


	Name:	 	Michael S. Fields
	Title:	 	Chief Executive Officer


  
 COUNTERSIGNED: 
  
 U.S. STOCK TRANSFER CORPORATION 
  

			
	By:	 	  


	Name:	 	 
	Title:	 	 

  
 [SIGNATURE PAGE TO RIGHT CERTIFICATE] 







 Form of Reverse Side of Right Certificate 
  
 FORM OF ASSIGNMENT 
  
 (To be executed by the registered holder if such holder desires to transfer the Right Certificate) 
  
 FOR VALUE RECEIVED,
                             hereby sells, assigns and transfers unto 
  
 __________________________________________________________________________________________________________________ 
 (Please print
name and address of transferee) 
  
 this Right Certificate, together with all
right, title and interest therein, and does hereby irrevocably constitute and appoint
                            , Attorney, to transfer the within Right Certificate on the books of the
within-named Company, with full power of substitution. 
  
 Dated :                         ,
             
  

	
	  


	Signature


  
 Signature(s) Guaranteed: 
  
 SIGNATURE(S) SHOULD BE GUARANTEED BY AN
ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15. 
  

  
 The undersigned hereby certifies that the Rights evidenced by this Right Certificate are not beneficially owned by an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement).

  

	
	  


	 Signature










 CERTIFICATE 
  
 The undersigned hereby certifies by checking the appropriate boxes that: 
  
 (1) the Rights evidenced by this Right Certificate  ̈ are  ̈ are not being sold, assigned, transferred,
split up, combined or exchanged by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such Person (as such terms are defined in the Rights Agreement); and 
  
 (2) after due inquiry and to the best knowledge of the undersigned, it
 ̈ did  ̈ did not acquire the Rights
evidenced by this Right Certificate from any Person who is, was or became an Acquiring Person or an Affiliate or Associate of an Acquiring Person. 
  
 Dated:                    ,
                  
  

	
	  


	Signature









 Form of Reverse Side of Right Certificate – continued 
  
 FORM OF ELECTION TO PURCHASE 
  
 (To be executed if holder desires to exercise the Right Certificate)

  
 To Kana Software, Inc.: 
  
 The undersigned hereby irrevocably elects to exercise
                     Rights represented by this Right Certificate to purchase the one one-hundredths of a Preferred Share or other securities
issuable upon the exercise of such Rights and requests that certificates for such securities be issued in the name of and delivered to: 
  
 Please insert social security or other identifying number: 
  
 __________________________________________________________________________________________________________________ 
 (Please print name and address) 
  
 __________________________________________________________________________________________________________________ 
  
 If such number of Rights is not all the Rights evidenced by this Right Certificate, a new
Right Certificate for the balance remaining of such Rights will be registered in the name of and delivered to: 
  
 Please insert social security or other identifying number: _____________________________________________________________ 
  
 __________________________________________________________________________________________________________________ 
 (Please print
name and address) 
  
 __________________________________________________________________________________________________________________ 
  
 Dated:                    
    ,              
  

	
	  


	 Signature



  
 Signature(s) Guaranteed: 
  
 SIGNATURE(S) SHOULD BE GUARANTEED BY AN
ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15. 
  

  
 The undersigned hereby certifies that the Rights evidenced by this Right Certificate are not beneficially owned by an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement).

  

	
	  


	 Signature










 CERTIFICATE 
  
 The undersigned hereby certifies by checking the appropriate boxes that: 
  
 (1) the Rights evidenced by this Right Certificate  ̈ are  ̈ are not being exercised by or on behalf of a
Person who is or was an Acquiring Person or an Affiliate or Associate of any such Person (as such terms are defined pursuant to the Rights Agreement); and 
  
 (2) after due inquiry and to the best knowledge of the undersigned, it  ̈ did  ̈ did not acquire the Rights evidenced by this Right Certificate from any Person who is, was, or became an
Acquiring Person or an Affiliate or Associate of an Acquiring Person. 
  
 Dated:                         ,
             
  

	
	  


	 Signature










 NOTICE 
  
 Signatures on the foregoing Form of Assignment and Form of Election to Purchase and in the related Certificates must correspond to the
name as written upon the face of this Right Certificate in every particular, without alteration or enlargement or any change whatsoever. 
  
 In the event the certification set forth above in the Form of Assignment or the Form of Election to Purchase, as the case may be, is not completed, the Company and the
Rights Agent will deem the beneficial owner of the Rights evidenced by this Right Certificate to be an Acquiring person or an Affiliate or Associate thereof (as defined in the Rights Agreement) and such assignment or election purchase will not be
honored.