Document:

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                                                                    EXHIBIT 10.1

                            STOCK PURCHASE AGREEMENT

     This STOCK PURCHASE AGREEMENT is dated as of the 7th day of June, 2000 by
and between Kana Communications, Inc., a Delaware corporation with its principal
office at 740 Bay Road, Redwood City, California (the "COMPANY"), and the
several purchasers named in the attached EXHIBIT A (individually, a "PURCHASER"
and collectively, the "PURCHASERS").

     WHEREAS, the Company desires to issue and sell to the Purchasers an
aggregate of up to 2,500,000 shares (the "SHARES") of the authorized but
unissued shares of common stock, $.001 par value per share, of the Company (the
"COMMON STOCK"); and

     WHEREAS, the Purchasers, severally, wish to purchase the Shares on the
terms and subject to the conditions set forth in this Agreement.

     NOW THEREFORE, in consideration of the mutual agreements, representations,
warranties and covenants herein contained, the parties hereto agree as follows:

     1. DEFINITIONS. As used in this Agreement, the following terms shall have
the following respective meanings:

         (a) "AFFILIATE" of a party means any corporation or other business
entity controlled by, controlling or under common control with such party. For
this purpose "CONTROL" shall mean direct or indirect beneficial ownership of
fifty percent (50%) or more of the voting or income interest in such corporation
or other business entity.

         (b) "CLOSING DATE" means the date of the Closing.

         (c) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended, and all of the rules and regulations promulgated thereunder.

         (d) "REGISTRATION RIGHTS AGREEMENT" shall mean that certain
Registration Rights Agreement, dated as of the date hereof, among the Company
and the Purchasers.

         (e) "MAJORITY PURCHASERS" shall mean Purchasers which, at any given
time, hold greater than fifty percent (50%) of the voting power of the
outstanding Shares.

         (f) "SEC" shall mean the Securities and Exchange Commission.

         (g) "SECURITIES ACT" shall mean the Securities Act of 1933, as amended,
and all of the rules and regulations promulgated thereunder.

     2.  PURCHASE AND SALE OF SHARES.

         2.1 PURCHASE AND SALE. Subject to and upon the terms and conditions set
forth in this Agreement, the Company agrees to issue and sell to each Purchaser,
and each

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Purchaser, severally, hereby agrees to purchase from the Company, at the
Closing, the number of shares of Common Stock set forth opposite the name of
such Purchaser under the heading "Number of Shares to be Purchased" on EXHIBIT A
hereto, at a purchase price of $50.00 per share. The total purchase price
payable by each Purchaser for the number of shares of Common Stock that such
Purchaser is hereby agreeing to purchase is set forth opposite the name of such
Purchaser under the heading "Purchase Price" on Exhibit A hereto. The aggregate
purchase price payable by the Purchasers to the Company for all of the Shares
shall be $125,000,000.

         2.2  CLOSING. The closing of the transactions contemplated under this
Agreement (the "Closing") shall take place at the offices of Brobeck, Phleger &
Harrison LLP, Two Embarcadero Place, 2200 Geng Road, Palo Alto, CA 94303 on the
second business day after the Company shall have given written notice to (the
"Closing Notice") the Purchasers that all of the conditions precedent set forth
in Section 5.1 have been satisfied in full or at such other location, date and
time as may be agreed upon between the Purchasers and the Company. At the
Closing, the Company shall deliver to each Purchaser a single stock certificate,
registered in the name of such Purchaser, representing the number of shares of
Common Stock purchased by such Purchaser, against payment of the purchase price
therefor by wire transfer of immediately available funds to such account or
accounts as the Company shall designate in writing.

    3.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby
represents and warrants to each of the Purchasers as follows:

         3.1 INCORPORATION. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and is
qualified to do business in each jurisdiction in which the character of its
properties or the nature of its business requires such qualification, except
where the failure to so qualify would not have a material adverse effect upon
the Company. The Company has all requisite corporate power and authority to
carry on its business as now conducted.

         3.2 CAPITALIZATION. The authorized capital stock of the Company
consists of (i) One billion shares of Common Stock, of which 90,444,414 shares
were outstanding as of June 5, 2000 and (ii) 5,000,000 shares of preferred
stock, of which no shares are outstanding on the date hereof. Except for options
for the purchase of Common Stock or the right to purchase Common Stock pursuant
to the Company's Employee Stock Purchase Plan, or as set forth in the SEC
Documents, there are no existing options, warrants, calls, preemptive (or
similar) rights, subscriptions or other rights, agreements, arrangements or
commitments of any character obligating the Company to issue, transfer or sell,
or cause to be issued, transferred or sold, any shares of the capital stock of
the Company or other equity interests in the Company or any securities
convertible into or exchangeable for such shares of capital stock or other
equity interests, and there are no outstanding contractual obligations of the
Company to repurchase, redeem or otherwise acquire any shares of its capital
stock or other equity interests except for the right to repurchase unvested
Common Stock purchased by service providers.

         3.3 AUTHORIZATION. All corporate action on the part of the Company, its
officers, directors and stockholders necessary for the authorization, execution,
delivery and performance of this Agreement and the Registration Rights Agreement
and the consummation of the transactions contemplated herein and therein has
been taken. When executed and delivered

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by the Company, each of this Agreement and the Registration Rights Agreement
shall constitute the legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, except as such may
be limited by bankruptcy, insolvency, reorganization or other laws affecting
creditors' rights generally and by general equitable principles. The Company has
all requisite corporate power to enter into this Agreement and the Registration
Rights Agreement and to carry out and perform its obligations under the terms of
this Agreement, and the Registration Rights Agreement.

         3.4 VALID ISSUANCE OF THE SHARES. The Shares being purchased by the
Purchasers hereunder will, upon issuance pursuant to the terms hereof, and the
Company's Amended and Restated Certificate of Incorporation, be duly authorized
and validly issued, fully paid and nonassessable.

         3.5 FINANCIAL STATEMENTS. The Company has furnished to each Purchaser
its audited Statements of Income, Stockholders' Equity and Cash Flows for the
fiscal year ended December 31, 1999, its audited Balance Sheet as of December
31, 2000, its unaudited Statements of Income, Stockholders' Equity and Cash
Flows for the period from March 31, 2000, and its unaudited Balance Sheet as of
March 31, 2000. All such financial statements are hereinafter referred to
collectively as the "FINANCIAL STATEMENTS". The Financial Statements have been
prepared in accordance with generally accepted accounting principles applied on
a consistent basis during the periods involved, and fairly present, in all
material respects, the financial position of the Company and the results of its
operations as of the date and for the periods indicated thereon, except that the
unaudited financial statements may not be in accordance with generally accepted
accounting principles because of the absence of footnotes normally contained
therein and are subject to normal year-end audit adjustments which,
individually, and in the aggregate, will not be material. Since May 12, 2000, to
the Company's knowledge, there has been no material adverse change in the
assets, liabilities (contingent or other), affairs, operations, or condition
(financial or other) of the Company.

         3.6 SEC DOCUMENTS. The Company has furnished to each Purchaser, a true
and complete copy of the Company's Annual Report on Form 10-K for the year ended
December 31, 1999, the Company's Quarterly Report on Form 10-Q for the period
ended March 31, 2000, and any other statement, report, registration statement
(other than registration statements on Form S-8) or definitive proxy statement
filed by the Company with the SEC during the period commencing May 12, 2000 and
ending on the date hereof. The Company will, promptly upon the filing thereof,
also notify each Purchaser of all statements, reports (including, without
limitation, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K),
registration statements and definitive proxy statements filed by the Company
with the SEC during the period commencing on the date hereof and ending on the
Closing Date (all such materials required to be furnished to each Purchaser
pursuant to this sentence or pursuant to the next preceding sentence of this
Section 3.6 being called, collectively, the "SEC DOCUMENTS"). As of their
respective filing dates, the SEC Documents complied or will comply in all
material respects with the requirements of the Exchange Act or the Securities
Act, as applicable, and none of the SEC Documents contained or will contain any
untrue statement of a material fact or omitted or will omit to state a material
fact required to be stated therein or necessary in order to make the statements
made therein, in light of the circumstances under which they were made, not

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misleading, as of their respective filing dates, except to the extent corrected
by a subsequently filed SEC Document.

         3.7 CONSENTS. All consents, approvals, orders and authorizations
required on the part of the Company in connection with the execution, delivery
or performance of this Agreement (the "Consents") and the Registration Rights
Agreement and the consummation of the transactions contemplated herein and
therein have been obtained and will be effective as of the Closing Date except
if the failure to obtain such Consents would not have a Material Adverse Effect
on the transactions contemplated hereby.

         3.8 NO CONFLICT. Neither the execution and delivery of this Agreement
of the Registration Rights Agreement nor the consummation of any transaction
herein or therein referred to or contemplated hereby or thereby nor the
fulfillment of the terms hereof or thereof or of any agreement or instrument
referred to in this Agreement or in the Registration Rights Agreement has
constituted or resulted in or will constitute or result in a breach of the
provisions of any material contract or agreement to which the Company or any of
its subsidiaries is a party or by which it is bound or of the charter or by-laws
of the Company, or the violation of any existing law, judgment, decree or
governmental order, rule or regulation applicable to the Company or any of its
subsidiaries, or result in the creation under any agreement or instrument of any
lien, security interest, encumbrance or other claim upon any of the assets of
the Company or any of its subsidiaries, or create in any person or entity any
right to terminate any agreements with the Company of any of its subsidiaries or
otherwise exercise any rights against the Company or any of its subsidiaries, or
cause any payment or performance obligation of the Company or any of its
subsidiaries to be accelerated, or cause the acceleration of any outstanding
rights to purchase or convert any instrument into capital stock of the Company.
Except as contemplated by this Agreement the Registration Rights Agreement, no
approval, authorization or other action of any court, governmental authority or
agency or any securities exchange is required to be obtained by the Company in
connection with the execution, delivery and performance of this Agreement or the
Registration Rights Agreement. The Company is not in violation of any of the
listing requirements of the Nasdaq National Market.

         3.9 BROKERS OR FINDERS. Except for Goldman Sachs & Co. and Pacific
Growth Equities, Inc., the Company has not entered an agreement with any broker
or finder in connection with the transactions contemplated by this Agreement,
and, except for certain fees and expenses payable by the Company to Goldman
Sachs & Co., Pacific Growth Equities, Inc. or as otherwise disclosed to Goldman
Sachs & Co. and Pacific Growth Equities, Inc., the Company has not incurred,
directly or indirectly, any liability for any brokerage or finders' fees or
agents commissions or any similar charges in connection with this Agreement or
any transaction contemplated hereby.

         3.10 NASDAQ NATIONAL MARKET. The Common Stock is listed on the Nasdaq
National Market System, and there are no proceedings to revoke or suspend such
listing.

         3.11 ABSENCE OF LITIGATION. There is no action, suit or proceeding or,
to the Company's knowledge, any investigation, pending, or to the Company's
knowledge, threatened by or before any governmental body against the Company and
in which an unfavorable outcome, ruling or finding in any said matter, or for
all matters taken as a whole,

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might have a material adverse effect on the Company. The foregoing includes,
without limitation, any such action, suit, proceeding or investigation that
questions this Agreement or the Registration Rights Agreement or the right of
the Company to execute, deliver and perform under same.

     4.  REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS. Each Purchaser
severally for itself, and not jointly with the other Purchasers, represents and
warrants to the Company as follows:

         4.1 AUTHORIZATION. All action on the part of such Purchaser and, if
applicable, its officers, directors and shareholders necessary for the
authorization, execution, delivery and performance of this Agreement and the
Registration Rights Agreement and the consummation of the transactions
contemplated herein and therein has been taken. When executed and delivered,
each of this Agreement and the Registration Rights Agreement will constitute the
legal, valid and binding obligation of such Purchaser, enforceable against such
Purchaser in accordance with its terms, except as such may be limited by
bankruptcy, insolvency, reorganization or other laws affecting creditors' rights
generally and by general equitable principles. Such Purchaser has all requisite
legal power to enter into each of this Agreement and the Registration Rights
Agreement and to carry out and perform its obligations under the terms of this
Agreement and the Registration Rights Agreement.

         4.2 PURCHASE ENTIRELY FOR OWN ACCOUNT. Such Purchaser is acquiring the
Shares being purchased by it hereunder for investment, for its own account and
not as nominee or agent, and not for resale or with a view to distribution
thereof in violation of the Securities Act.

         4.3 PURCHASER STATUS; ETC. Such Purchaser certifies and represents to
the Company that at the time such Purchaser acquires any of the Shares, such
Purchaser will be an institutional investor that is an "Accredited Investor" as
defined in Rule 501 of Regulation D promulgated under the Securities Act and was
not organized for the purpose of acquiring the Shares. Such Purchaser's
financial condition is such that it is able to bear the risk of holding the
Shares for an indefinite period of time and the risk of loss of its entire
investment. Such Purchaser has been afforded the opportunity to ask questions of
and receive answers from the management of the Company concerning this
investment and has sufficient knowledge and experience in investing in companies
similar to the Company in terms of the Company's stage of development so as to
be able to evaluate the risks and merits of its investment in the Company.

         4.4 SHARES NOT REGISTERED.

             (a) Such Purchaser understands that the Shares have not been
registered under the Securities Act, by reason of their issuance by the Company
in a transaction exempt from the registration requirements of the Securities
Act, and that the Shares must continue to be held by such Purchaser and not
re-offered, resold, pledged or otherwise transferred unless a subsequent
disposition thereof is registered under the Securities Act or is exempt from
such registration and any such transfer is otherwise made in accordance with
applicable securities laws of any state of the United States. The Purchaser
understands that the exemptions from registration afforded by Rule 144 (the

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provisions of which are known to it) promulgated under the Securities Act depend
on the satisfaction of various conditions, and that, if applicable, Rule 144 may
afford the basis for sales only in limited amounts. The Purchaser understands
that neither the Company nor any of its agents makes any representation as to
the availability of Rule 144 or any other exemption under the Securities Act for
the re-offer, resale, pledge or transfer of the Shares.

             (b) Such Purchaser further represents that:

                 (i) no offering circular or prospectus will be provided to
such Purchaser or prepared in connection with the offer and the sale of the
Shares and that neither the Company or any of its agents has provided, and will
not be providing, such Purchaser with any other material regarding the Shares or
the Company prepared by the Company or any other person. Such Purchaser has not
requested the Company or any of its agents to provide such Purchaser with any
such information.

                 (ii) Neither the Company nor any of its agents makes any
representation or warranty, expressed or implied, as to the accuracy or
completeness of the information provided or to be provided to such Purchaser by
the Company, and nothing contained in any documents provided to such Purchaser
is, or shall be relied upon as, a promise or representation by the Company or
any of its agents.

                 (iii) An investment in the Shares includes a high degree of
risk. In making the decision to purchase the Shares, (a) such Purchaser has such
business and financial experience as is required to give such Purchaser the
capacity to protect its own interests in connection with the purchase of the
Shares, (b) such Purchaser has not relied and will not rely on any investigation
that any person acting on its behalf may have conducted with respect to the
Shares or the Company and (c) such Purchaser will make its own investment
decision regarding the Shares based on its own knowledge and investigation of
the Company and the Shares.

         4.5 NO CONFLICT. The execution and delivery of this Agreement and the
Registration Rights Agreement by such Purchaser and the consummation of the
transactions contemplated hereby and thereby will not conflict with or result in
any violation of or default by such Purchaser (with or without notice or lapse
of time, or both) under, or give rise to a right of termination, cancellation or
acceleration of any obligation or to a loss of a material benefit under (i) any
provision of the organizational documents of such Purchaser or (ii) any
agreement or instrument, permit, franchise, license, judgment, order, statute,
law, ordinance, rule or regulations, applicable to such Purchaser or its
respective properties or assets.

         4.6 BROKERS. Such Purchaser has not retained, utilized or been
represented by any broker or finder in connection with the transactions
contemplated by this Agreement.

         4.7 CONSENTS. All consents, approvals, orders and authorizations
required on the part of such Purchaser in connection with the execution,
delivery or performance

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of this Agreement and the consummation of the transactions contemplated herein
have been obtained and are effective as of the Closing Date.

     5.  CONDITIONS PRECEDENT.

         5.1 CONDITIONS TO THE OBLIGATION OF THE PURCHASERS TO CONSUMMATE THE
CLOSING. The obligation of each Purchaser to consummate the Closing and to
purchase and pay for the Shares being purchased by it pursuant to this Agreement
is subject to the satisfaction of the following conditions precedent:

         (a) The representations and warranties contained herein of the Company
shall be true and correct on and as of the Closing Date with the same force and
effect as though made on and as of the Closing Date (it being understood and
agreed by each Purchaser that, in the case of any representation and warranty of
the Company contained herein which is not hereinabove qualified by application
thereto of a materiality standard, such representation and warranty need be true
and correct only in all material respects in order to satisfy as to such
representation or warranty the condition precedent set forth in the foregoing
provisions of this Section 5.1(a)).

         (b) The Registration Rights Agreement shall have been executed and
delivered by the Company.

         (c) The Company shall have performed all obligations and conditions
herein required to be performed or observed by the Company on or prior to the
Closing Date.

         (d) The Purchasers shall have received an opinion of Brobeck, Phleger &
Harrison LLP, in form customary for the transaction contemplated hereby.

         (e) No proceeding challenging this Agreement or the transactions
contemplated hereby, or seeking to prohibit, alter, prevent or materially delay
the Closing, shall have been instituted before any court, arbitrator or
governmental body, agency or official and shall be pending.

         (f) The purchase of and payment for the Shares by the Purchasers shall
not be prohibited by any law or governmental order or regulation. All necessary
Consents and authorizations of, or registrations, declarations and filings with,
any governmental or administrative agency or of any other person with respect to
any of the transactions contemplated hereby shall have been duly obtained or
made and shall be in full force and effect.

         (g) All instruments and corporate proceedings in connection with the
transactions contemplated by this Agreement to be consummated at the Closing
shall be satisfactory in form and substance to such Purchaser, and such
Purchaser shall have received copies (executed or certified, as may be
appropriate) of all documents which such Purchaser may have reasonably requested
in connection with such transactions.

         5.2 CONDITIONS TO THE OBLIGATION OF THE COMPANY TO CONSUMMATE THE
CLOSING. The obligation of the Company to consummate the Closing and to issue
and sell to each of the Purchasers the Shares to be purchased by it at the
Closing is subject to the satisfaction of the following conditions precedent:

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         (a) The representations and warranties contained herein of such
Purchaser shall be true and correct on and as of the Closing Date with the same
force and effect as though made on and as of the Closing Date (it being
understood and agreed by the Company that, in the case of any representation and
warranty of each Purchaser contained herein which is not hereinabove qualified
by application thereto of a materiality standard, such representation and
warranty need be true and correct only in all material respects in order to
satisfy as to such representation or warranty the condition precedent set forth
in the foregoing provisions of this Section 5.2(a)).

         (b) The Registration Rights Agreement shall have been executed and
delivered by each Purchaser.

         (c) The Purchasers shall have performed all obligations and conditions
herein required to be performed or observed by the Purchasers on or prior to the
Closing Date.

         (d) No proceeding challenging this Agreement or the transactions
contemplated hereby, or seeking to prohibit, alter, prevent or materially delay
the Closing, shall have been instituted before any court, arbitrator or
governmental body, agency or official and shall be pending.

         (e) The sale of the Shares by the Company shall not be prohibited by
any law or governmental order or regulation. All necessary Consents and
authorizations of, or registrations, declarations and filings with, any
governmental or administrative agency or of any other person with respect to any
of the transactions contemplated hereby shall have been duly obtained or made
and shall be in full force and effect.

         (f) Each of the Purchasers shall have executed and delivered to the
Company a Purchaser's Questionnaire, in the form attached hereto as Exhibit B,
pursuant to which each such Purchaser shall provide information necessary to
confirm each such Purchaser's status as an "accredited investor" (as such term
is defined in Rule 501 promulgated under the Securities Act)".

         (g) Each of the other Purchasers shall have purchased, in accordance
with this Agreement, the number of shares of Common Stock set forth opposite its
name under the heading "Number of Shares to be Purchased".

         (h) All instruments and corporate proceedings in connection with the
transactions contemplated by this Agreement to be consummated at the Closing
shall be satisfactory in form and substance to the Company, and the Company
shall have received counterpart originals, or certified or other copies of all
documents, including without limitation records of corporate or other
proceedings, which it may have reasonably requested in connection therewith.

     6.  TRANSFER, LEGENDS.

         6.1 SECURITIES LAW TRANSFER RESTRICTIONS. No Purchaser shall sell,
assign, pledge, transfer or otherwise dispose or encumber any of the Shares
being purchased by it hereunder, except (i) pursuant to an effective
registration statement under the Securities Act or

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(ii) pursuant to an available exemption from registration under the Securities
Act and applicable state securities laws and, if requested by the Company, upon
delivery by such Purchaser of an opinion of counsel reasonably satisfactory to
the Company to the effect that the proposed transfer is exempt from registration
under the Securities Act and applicable state securities laws. Any transfer or
purported transfer of the Shares in violation of this Section 6.1 shall be
voidable by the Company. The Company shall not register any transfer of the
Shares in violation of this Section 6.1. The Company may, and may instruct any
transfer agent for the Company, to place such stop transfer orders as may be
required on the transfer books of the Company in order to ensure compliance with
the provisions of this Section 6.1.

         6.2 LEGENDS. Each certificate requesting any of the Shares shall be
endorsed with the legends set forth below, and each Purchaser covenants that,
except to the extent such restrictions are waived by the Company, it shall not
transfer the shares represented by any such certificate without complying with
the restrictions on transfer described in this Agreement and the legends
endorsed on such certificate:

     "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
     THE SECURITIES ACT OF 1933 AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED
     TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE
     REGISTRATION STATEMENT UNDER SAID ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
     FROM REGISTRATION UNDER SAID ACT AND, IF REQUESTED BY THE COMPANY, UPON
     DELIVERY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY
     THAT THE PROPOSED TRANSFER IS EXEMPT FROM SAID ACT."

     7.  TERMINATION; LIABILITIES CONSEQUENT THEREON. This Agreement may be
terminated and the transactions contemplated hereunder abandoned at any time
prior to the Closing only as follows:

         (a) by the Purchasers, upon notice to the Company if the conditions set
forth in Section 5.1 shall not have been satisfied on or prior to June 17, 2000;
or

         (b) by the Company, upon notice to the Purchasers if the conditions set
forth in Section 5.2 shall not have been satisfied on or prior to June 17, 2000;
or

         (c) at any time by mutual agreement of the Company and the Purchasers;
or

         (d) by the Purchasers, if there has been any breach of any
representation or warranty or any material breach of any covenant of the Company
contained herein and the same has not been cured within 15 days after notice
thereof, (it being understood and agreed by each Purchaser that, in the case of
any representation or warranty of the Company contained herein which is not
hereinabove qualified by application thereto of a materiality standard, such
representation or warranty will be deemed to have been breached for purposes of
this Section 7.1(d) only if such representation or warranty was not true and
correct in all material respects at the time such representation or warranty was
made by the Company); or

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         (e) by the Company, if there has been any breach of any representation,
warranty or any material breach of any covenant of any Purchaser contained
herein and the same has not been cured within 15 days after notice thereof (it
being understood and agreed by the Company that, in the case of any
representation and warranty of the Purchaser contained herein which is not
hereinabove qualified by application thereto of a materiality standard, such
representation or warranty will be deemed to have been breached for purposes of
this Section 7.1(e) only if such representation or warranty was not true and
correct in all material respects at the time such representation or warranty was
made by such Purchaser).

     Any termination pursuant to this Section 7 shall be without liability on
the part of any party, unless such termination is the result of a material
breach of this Agreement by a party to this Agreement in which case such
breaching party shall remain liable for such breach notwithstanding any
termination of this Agreement.

     8.  INDEMNIFICATION. The Company will indemnify, defend, protect, and hold
harmless each Purchaser and each other holder of the Shares and all of their
respective stockholders, trustees, officers, directors, employees and direct or
indirect investors and any of their respective agents, counsel or other
representatives (collectively, the "INDEMNITEES") from and against any and all
actions, causes of action, suits, claims, losses, costs, penalties, fees,
liabilities and damages, and expenses in connection therewith (regardless of
whether any such Indemnitee is a party to the action for which indemnification
hereunder is sought), and including reasonable attorneys' fees and disbursements
(the "INDEMNIFICATION LIABILITIES"), which may be incurred by any Indemnitee or
which may be asserted against any Indemnitee as a result of, or arising out of,
or relating to (a) any breach of any representation or warranty made by the
Company herein or in any other certificate, instrument or document contemplated
hereby or thereby, (b) any breach of any covenant, agreement or obligation of
the Company contained herein or in any other certificate, instrument or document
contemplated hereby or thereby, or (c) any cause of action, suit or claim
brought or made against such Indemnitee and arising out of or resulting from the
execution, delivery, performance, breach or enforcement of this Agreement by the
Company. To the extent that the foregoing undertaking by the Company is
unenforceable for any reason, the Company will make the maximum contribution to
the payment and satisfaction of each of the Indemnified Liabilities that is
permissible under applicable law.

     9.  MISCELLANEOUS PROVISIONS.

         9.1 PUBLIC STATEMENTS OR RELEASES. None of the parties to this
Agreement shall make, issue, or release any announcement, whether to the public
generally, or to any of its suppliers or customers, with respect to this
Agreement or the transactions provided for herein, or make any statement or
acknowledgment of the existence of, or reveal the status of, this Agreement or
the transactions provided for herein, without the prior consent of the other
parties, which shall not be unreasonably withheld or delayed, provided, that
nothing in this Section 9.1 shall prevent any of the parties hereto from making
such public announcements as it may consider necessary in order to satisfy its
legal obligations, but to the extent not inconsistent with such obligations, it
shall provide the other parties with an opportunity to review and comment on any
proposed public announcement before it is made.

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         9.2 FURTHER ASSURANCES. Each party agrees to cooperate fully with the
other party and to execute such further instruments, documents and agreements
and to give such further written assurances, as may be reasonably requested by
the other party to better evidence and reflect the transactions described herein
and contemplated hereby, and to carry into effect the intents and purposes of
this Agreement.

         9.3 RIGHTS CUMULATIVE. Each and all of the various rights, powers and
remedies of the parties shall be considered to be cumulative with and in
addition to any other rights, powers and remedies which such parties may have at
law or in equity in the event of the breach of any of the terms of this
Agreement. The exercise or partial exercise of any right, power or remedy shall
neither constitute the exclusive election thereof nor the waiver of any other
right, power or remedy available to such party.

         9.4 PRONOUNS. All pronouns or any variation thereof shall be deemed to
refer to the masculine, feminine or neuter, singular or plural, as the identity
of the person, persons, entity or entities may require.

         9.5 NOTICES.

             (a) Any notices, reports or other correspondence (hereinafter
collectively referred to as "correspondence") required or permitted to be given
hereunder shall be sent by postage prepaid first class mail, courier or telecopy
or delivered by hand to the party to whom such correspondence is required or
permitted to be given hereunder. The date of giving any notice shall be the date
of its actual receipt.

              (b) All correspondence to the Company shall be addressed as
follows:

                           Kana Communications, Inc.
                           740 Bay Road
                           Redwood City, CA 94063
                           Attention: General Counsel
                           Telecopier: (650) 474-8507

 with a copy to:

                           Brobeck, Phleger & Harrison LLP
                           Two Embarcadero Place
                           2200 Geng Road
                           Palo Alto, CA 94303
                           Attention: David A. Makarechian, Esq.
                           Telecopier: (650) 496-2885

If to any Putnam Investor:

                           c/o Putnam Investment Management, Inc.
                           2 Liberty Square, 5th Floor
                           Boston, Massachusetts 02109

                                       11
<PAGE>

                           Attention: Law Department
                           Telecopier: (617) 292-1625

with a copy to:

                           Ropes & Gray
                           One International Place
                           Boston, Massachusetts 02110
                           Attention: Robert L. Nutt, Esq.
                           Telecopier: (617) 951-7050

If to any other Purchaser:

     To the address for such Purchaser set forth on Exhibit A hereto

         (c) Any entity may change the address to which correspondence to it is
to be addressed by notification as provided for herein.

         9.6 CAPTIONS. The captions and paragraph headings of this Agreement are
solely for the convenience of reference and shall not affect its interpretation.

         9.7 SEVERABILITY. Should any part or provision of this Agreement be
held unenforceable or in conflict with the applicable laws or regulations of any
jurisdiction, the invalid or unenforceable part or provisions shall be replaced
with a provision which accomplishes, to the extent possible, the original
business purpose of such part or provision in a valid and enforceable manner,
and the remainder of this Agreement shall remain binding upon the parties
hereto.

         9.8 GOVERNING LAW; INJUNCTIVE RELIEF.

             (a) This Agreement shall be governed by and construed in
accordance with the internal and substantive laws of California and without
regard to any conflicts of laws concepts which would apply the substantive law
of some other jurisdiction.

             (b) Each of the parties hereto acknowledges and agrees that damages
will not be an adequate remedy for any material breach or violation of this
Agreement if such material breach or violation would cause immediate and
irreparable harm (an "Irreparable Breach"). Accordingly, in the event of a
threatened or ongoing Irreparable Breach, each party hereto shall be entitled to
seek, in any state or federal court in the State of California, equitable relief
of a kind appropriate in light of the nature of the ongoing or threatened
Irreparable Breach, which relief may include, without limitation, specific
performance or injunctive relief; PROVIDED, HOWEVER, that if the party bringing
such action is unsuccessful in obtaining the relief sought, the moving party
shall pay the non-moving party's reasonable costs, including attorney's fees,
incurred in connection with defending such action. Such remedies shall not be
the parties' exclusive remedies, but shall be in addition to all other remedies
provided in this Agreement.

                                       12
<PAGE>

         9.9 WAIVER. No waiver of any term, provision or condition of this
Agreement, whether by conduct or otherwise, in any one or more instances, shall
be deemed to be, or be construed as, a further or continuing waiver of any such
term, provision or condition or as a waiver of any other term, provision or
condition of this Agreement.

         9.10 EXPENSES. Each party will bear its own costs and expenses in
connection with this Agreement.

         9.11 ASSIGNMENT. The rights and obligations of the parties hereto shall
inure to the benefit of and shall be binding upon the authorized successors and
permitted assigns of each party. Neither party may assign its rights or
obligations under this Agreement or designate another person (i) to perform all
or part of its obligations under this Agreement or (ii) to have all or part of
its rights and benefits under this Agreement, in each case without the prior
written consent of the other party. In the event of any assignment in accordance
with the terms of this Agreement, the assignee shall specifically assume and be
bound by the provisions of the Agreement by executing and agreeing to an
assumption agreement reasonably acceptable to the other party.

         9.12 SURVIVAL. The respective representations and warranties given by
the parties hereto, and the other covenants and agreements contained herein,
shall survive the Closing Date and the consummation of the transactions
contemplated herein for a period one year, without regard to any investigation
made by any party.

         9.13 ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the parties hereto respecting the subject matter hereof and supersedes
all prior agreements, negotiations, understandings, representations and
statements respecting the subject matter hereof, whether written or oral. No
modification, alteration, waiver or change in any of the terms of this Agreement
shall be valid or binding upon the parties hereto unless made in writing and
duly executed by the Company and the Majority Purchasers.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       13

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Stock Purchase
Agreement under seal as of the day and year first above written.

                           THE COMPANY:

                           KANA COMMUNICATIONS, INC.,

                           a Delaware corporation

                           By:  /s/ MICHAEL J. MCCLOSKEY
                              -------------------------------------------------
                              Name: Michael J. McCloskey
                              Title: Chief Executive Officer

<PAGE>

                           PURCHASERS:

                           GALLEON TECHNOLOGY PARTNERS I, L.P.

                           By: /S/ THOMAS E. FERNANDEZ
                              -------------------------------------------------
                              Name: THOMAS E. FERNANDEZ
                              Title: CHIEF OPERATING OFFICER

                           GALLEON TECHNOLOGY PARTNERS II, L.P.

                           By: /S/ THOMAS E. FERNANDEZ
                              -------------------------------------------------
                              Name: THOMAS E. FERNANDEZ
                              Title: CHIEF OPERATING OFFICER

                           GALLEON TECHNOLOGY OFFSHORE, LTD.

                           By: /S/ THOMAS E. FERNANDEZ
                              -------------------------------------------------
                              Name: THOMAS E. FERNANDEZ
                              Title: CHIEF OPERATING OFFICER

                           GALLEON NEW MEDIA PARTNERS, L.P.

                           By: /S/ THOMAS E. FERNANDEZ
                              -------------------------------------------------
                              Name: THOMAS E. FERNANDEZ
                              Title: CHIEF OPERATING OFFICER

                           GALLEON NEW MEDIA OFFSHORE, LTD.

                           By: /S/ THOMAS E. FERNANDEZ
                              -------------------------------------------------
                              Name: THOMAS E. FERNANDEZ
                              Title: CHIEF OPERATING OFFICER

                                       2
<PAGE>

                           PUTNAM VOYAGER FUND II
                           PUTNAM FUNDS TRUST - PUTNAM NEW
                             CENTURY GROWTH FUND
                           PUTNAM INVESTMENT FUNDS - PUTNAM
                             WORLDWIDE EQUITY FUND
                           PUTNAM OTC AND EMERGING GROWTH FUND
                           PUTNAM VARIABLE TRUST - PUTNAM VT OTC
                             AND EMERGING GROWTH FUND
                           PUTNAM NEW OPPORTUNITIES FUND
                           PUTNAM VARIABLE TRUST - PUTNAM VT NEW
                             OPPORTUNITIES FUND

                           BY PUTNAM INVESTMENT MANAGEMENT, INC.

                           By: /S/ JOHN R. VERANI
                              -------------------------------------------------
                              Name: JOHN R. VERANI
                              Title: SENIOR VICE PRESIDENT

                           PUTNAM WORLD TRUST II-PUTNAM EMERGING
                             INFORMATION SCIENCES TRUST
                           CISALPINA/PUTNAM USA OPPORTUNITIES FUND
                           PUTNAM WORLD TRUST II-PUTNAM NEW OPPORTUNITIES
                             (U.S. AGGRESSIVE GROWTH EQUITY FUND)

                           BY THE PUTNAM ADVISORY COMPANY, INC.

                           By: /S/ JOHN R. VERANI
                              -------------------------------------------------
                              Name: JOHN R. VERANI
                              Title: SENIOR VICE PRESIDENT

                           DWS INVESTMENTS

                           By: /S/ ANDREAS KRAFT
                              -------------------------------------------------
                              Name: ANDREAS KRAFT
                              Title: SENIOR FUND MANAGER

                                       3
<PAGE>

                           METZLER INVESTMENTS

                           By: /S/ KLAUS HAGEDORN
                              -------------------------------------------------
                              Name: KLAUS HAGEDORN
                              Title: DIRECTOR

                                       4<PAGE>

                                                                    EXHIBIT 10.2

                          REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT") is made as of June 7,
2000 by and among (i) Kana Communications, Inc., a Delaware corporation (the
"COMPANY"), (ii) each person listed on Exhibit A attached hereto (collectively,
the "INITIAL INVESTORS" and each individually, an "INITIAL INVESTOR"), and (iii)
each person or entity that subsequently becomes a party to this Agreement
pursuant to, and in accordance with, the provisions of Section 12 hereof
(collectively, the "INVESTOR PERMITTED TRANSFEREES" and each individually an
"INVESTOR PERMITTED TRANSFEREE").

     WHEREAS, the Company has agreed to issue and sell to the Initial Investors,
and the Initial Investors have agreed to purchase from the Company, 2,500,000
shares (the "PURCHASED SHARES") of the Company's common stock, $0.001 par value
per share (the "COMMON STOCK"), all upon the terms and conditions set forth in
that certain Stock Purchase Agreement, dated of even date herewith, between the
Company and the Initial Investors (the "STOCK PURCHASE AGREEMENT"); and

     WHEREAS, the terms of the Stock Purchase Agreement provide that it shall be
a condition precedent to the closing of the transactions thereunder, for the
Company and the Initial Investors to execute and deliver this Agreement.

     NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein, the parties hereto hereby agree as follows:

     1. DEFINITIONS. The following terms shall have the meanings provided
therefor below or elsewhere in this Agreement as described below:

        "BOARD" shall mean the board of directors of the Company.

        "CLOSING" shall have the meaning ascribed to such term in the Stock
Purchase Agreement.

        "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended, and all of the rules and regulations promulgated thereunder.

        "INVESTORS" shall mean, collectively, the Initial Investors and the
Investor Permitted Transferees; PROVIDED, HOWEVER, that the term "INVESTORS"
shall not include any of the Initial Investors or any of the Investor Permitted
Transferees that ceases to own or hold any Purchased Shares.

        "MAJORITY HOLDERS" shall mean, at the relevant time of reference
thereto, those Investors holding and/or having the right to acquire, as the case
may be, more than fifty percent (50%) of the Registrable Shares held by all of
the Investors.

        "QUALIFYING HOLDER" shall have the meaning ascribed thereto in Section
12 hereof.

<PAGE>

         "REGISTRABLE SHARES" shall mean the Purchased Shares, PROVIDED,
HOWEVER, such term shall not, after the Mandatory Registration Termination Date
(as defined below), include any of the Purchased Shares that become or have
become eligible for resale without restriction pursuant to Rule 144(k) or
pursuant to Regulation S.

         "RULE 144" shall mean Rule 144 promulgated under the Securities Act
and any successor or substitute rule, law or provision.

         "SEC" shall mean the Securities and Exchange Commission.

         "SECURITIES ACT" shall mean the Securities Act of 1933, as amended,
and all of the rules and regulations promulgated thereunder.

     2.  EFFECTIVENESS; TERMINATION. This Agreement shall become effective and
legally binding only if the Closing occurs. This Agreement shall terminate and
be of no further force or effect, automatically and without any action being
required of any party hereto, upon the termination of the Stock Purchase
Agreement pursuant to Section 7 thereof.

     3.  MANDATORY REGISTRATION.

         (a) Within twenty (20) days after the Closing, the Company will prepare
and file with the SEC a registration statement on Form S-1 for the purpose of
registering under the Securities Act all of the Registrable Shares for resale
by, and for the account of, the Investors as selling stockholders thereunder
(the "REGISTRATION STATEMENT"). The Registration Statement shall permit the
Investors to offer and sell, on a delayed or continuous basis pursuant to Rule
415 under the Securities Act, any or all of the Registrable Shares. The Company
agrees to use reasonable efforts to cause the Registration Statement to become
effective as soon as practicable. The Company shall be required to keep the
Registration Statement effective until such date that is the earlier of (i) the
date when all of the Registrable Shares registered thereunder shall have been
sold under a Registration Statement or (ii) the second anniversary of the
Closing, subject to extension as set forth below (such date is referred to
herein as the "MANDATORY REGISTRATION TERMINATION DATE"); provided, however,
that the Company shall be permitted to withdraw the Registrable Shares and
re-register the Registration Statement on Form S-3 at such time as such form
becomes available to the Company. Following the Mandatory Registration
Termination Date, the Company shall be entitled to withdraw the Registration
Statement and the Investors shall have no further right to offer or sell any of
the Registrable Shares pursuant to the Registration Statement (or any prospectus
relating thereto). In the event the right of the selling Investors to use the
Registration Statement (and the prospectus relating thereto) is delayed or
suspended pursuant to Sections 5(c) or 11 hereof, the Company shall be required
to extend the Mandatory Registration Termination Date beyond the second
anniversary of the Closing by the same number of days as such delay or
Suspension Period (as defined in Section 11 hereof).

         (b) The offer and sale of the Registrable Shares pursuant to the
Registration Statement shall not be underwritten.

         (c) If the Registration Statement has not been filed on or prior to 20
days following the Closing, the Company shall pay to each Investor, as
stipulated damages intended by the parties to compensate the Investors in part
for the incremental costs and investment risks

                                       2

<PAGE>

associated with holding any of the Registrable Shares as restricted securities,
a fee (the "LATE REGISTRATION FEE") for each day of such delay equal to 0.0333%
of the purchase price paid by such Investor for all Shares held by such Investor
on such day. The Company shall pay to each Investor the Late Registration Fee in
cash on the earlier of either (a) the end of each 30-day period of such delay,
or (b) the effective date of the Registration Statement. Nothing herein shall
limit any Investor's right to pursue actual damages for the Company's failure to
file or delay in filing the Mandatory Registration Statement in accordance with
the terms of this Agreement.

         (d) The Company shall take all commercially reasonable action required
to meet the "registrant eligibility" requirements set forth in the general
instructions to Form S-3 under the Securities Act as expeditiously as reasonably
possible to enable the registration of the Registrable Shares. As soon as
practicable following the date on which the Company meets such requirements, the
Company shall file an amendment to the Registration Statement to cause such
Registration Statement to be on Form S-3.

     4.  "PIGGYBACK" REGISTRATION RIGHTS.

         (a) If, and provided that the Registration Statement is currently not
effective, and the Registrable Shares are not then tradeable without restriction
under Rule 144(k), the Company proposes to register any of its Common Stock
under the Securities Act, whether as a result of a primary or secondary offering
of Common Stock or pursuant to registration rights granted to holders of other
securities of the Company (but excluding in all cases any registrations to be
effected on Forms S-4 or S-8 or other applicable successor Forms), the Company
shall, each such time, give to the Investors holding Registrable Shares written
notice of its intent to do so. Upon the written request of any such Investor
given within 20 days after the giving of any such notice by the Company, the
Company shall use reasonable efforts to cause to be included in such
registration the Registrable Shares of such selling Investor, to the extent
requested to be registered; PROVIDED that (i) the number of Registrable Shares
proposed to be sold by such selling Investor is equal to at least seventy-five
percent (75%) of the total number of Registrable Shares then held by such
participating selling Investor, (ii) such selling Investor agrees to sell those
of its Registrable Shares to be included in such registration in the same manner
and on the same terms and conditions as the other shares of Common Stock which
the Company proposes to register, and (iii) if the registration is to include
shares of Common Stock to be sold for the account of the Company or any party
exercising demand registration rights pursuant to any other agreement with the
Company, the proposed managing underwriter does not advise the Company that in
its opinion the inclusion of such selling Investor's Registrable Shares (without
any reduction in the number of shares to be sold for the account of the Company
or such party exercising demand or piggyback registration rights) is likely to
affect materially and adversely the success of the offering or the price that
would be received for any shares of Common Stock offered, in which case the
rights of such selling Investor shall be as provided in Section 4(b) hereof.

         (b) If a registration pursuant to Section 4(a) hereof involves an
underwritten offering and the managing underwriter shall advise the Company in
writing that, in its opinion, the number of shares of Common Stock requested by
the Investors to be included in such registration is likely to affect materially
and adversely the success of the offering or the price that would be received
for any shares of Common Stock offered in such offering, then,

                                       3
<PAGE>

notwithstanding anything in Section 4(a) to the contrary, the Company shall only
be required to include in such registration, to the extent of the number of
shares of Common Stock which the Company is so advised can be sold in such
offering, (i) first, the number of shares of Common Stock proposed to be
included in such registration for the account of the Company and/or any
stockholders of the Company (other than the Investors) that have exercised
demand registration rights, in accordance with the priorities, if any, then
existing among the Company and/or such stockholders of the Company with
registration rights (other than the Investors), and (ii) second, the shares of
Common Stock requested to be included in such registration by stockholders of
the Company that have exercised piggyback registration rights, including the
Investors, PRO RATA among such holders on the basis of the number of shares of
Common Stock that each of them requested to be included in such registration.

         (c) In connection with any offering involving an underwriting of
shares, the Company shall not be required under Section 4 hereof or otherwise to
include the Registrable Shares of any Investor therein unless such Investor
accepts and agrees to the terms of the underwriting, which shall be reasonable
and customary, as agreed upon between the Company and the underwriters selected
by the Company.

     5.  OBLIGATIONS OF THE COMPANY. In connection with the Company's obligation
under Section 3 and 4 hereof to file the Registration Statement with the SEC and
to use its best efforts to cause the Registration Statement to become effective
as soon as practicable, the Company shall, as expeditiously as reasonably
possible:

         (a) Prepare and file with the SEC such amendments and supplements to
the Registration Statement and the prospectus used in connection therewith as
may be necessary to comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Shares covered by the Registration
Statement;

         (b) Furnish to the selling Investors such number of copies of a
prospectus, including a preliminary prospectus, in conformity with the
requirements of the Securities Act, and such other documents (including, without
limitation, prospectus amendments and supplements as are prepared by the Company
in accordance with Section 5(a) above) as the selling Investors may reasonably
request in order to facilitate the disposition of such selling Investors'
Registrable Shares;

         (c) Notify the selling Investors, at any time when a prospectus
relating to the Registration Statement is required to be delivered under the
Securities Act, of the happening of any event as a result of which the
prospectus included in or relating to the Registration Statement contains an
untrue statement of a material fact or omits any fact necessary to make the
statements therein not misleading; and, thereafter, the Company will promptly
prepare (and, when completed, give notice to each selling Investor) a supplement
or amendment to such prospectus so that, as thereafter delivered to the
purchasers of such Registrable Shares, such prospectus will not contain an
untrue statement of a material fact or omit to state any fact necessary to make
the statements therein not misleading; PROVIDED that upon such notification by
the Company, the selling Investors will not offer or sell Registrable Shares
until the Company has notified the selling Investors that it has prepared a
supplement or amendment to such prospectus and delivered copies of such
supplement or amendment to the selling Investors (it being understood

                                       4

<PAGE>

and agreed by the Company that the foregoing proviso shall in no way diminish or
otherwise impair the Company's obligation to promptly prepare a prospectus
amendment or supplement as above provided in this Section 5(c) and deliver
copies of same as above provided in Section 5(b) hereof); and

         (d) Use commercially reasonable efforts to register and qualify the
Registrable Shares covered by the Registration Statement under such other
securities or Blue Sky laws of such jurisdictions as shall be reasonably
appropriate in the opinion of the Company and the managing underwriters, if any,
PROVIDED that the Company shall not be required in connection therewith or as a
condition thereto to qualify to do business or to file a general consent to
service of process in any such states or jurisdictions, and PROVIDED FURTHER
that (notwithstanding anything in this Agreement to the contrary with respect to
the bearing of expenses) if any jurisdiction in which any of such Registrable
Shares shall be qualified shall require that expenses incurred in connection
with the qualification therein of any such Registrable Shares be borne by the
selling Investors, then the selling Investors shall, to the extent required by
such jurisdiction, pay their PRO RATA share of such qualification expenses.

         (e) On or before the tenth trading day after the date of this
Agreement, the Company shall secure the listing of the Shares upon each national
securities exchange or automated quotation system, if any, upon which shares of
Common Stock are then listed (subject to official notice of issuance) and, so
long as any Investor owns any of the Shares, will maintain such listing of the
Shares. The Company shall use its best efforts to obtain and, so long as any
Investor owns any of the Shares, maintain the listing and trading of its Common
Stock on the Nasdaq National Market and shall comply in all respects with the
Company's reporting, filing and other obligations under the bylaws or rules of
the National Association of Securities Dealers, Inc. and such exchanges, as
applicable. Until an Investor transfers, assigns or sells all of the Shares
owned by it, the Company will promptly provide to such Investor copies of any
notices it receives regarding the continued eligibility of the Common Stock for
listing on Nasdaq or other principal exchange or quotation system on which the
Common Stock is listed or traded.

         (f) The Company shall not make any offers or sales of any security
(other than the Shares) under circumstances that would cause the offering of the
Shares to be integrated with any other offering of securities by the Company (i)
for purpose of any stockholder approval provision applicable to the Company or
its securities or (ii) for purposes of any registration requirement under the
Securities Act.

         (g) The Company shall make available for inspection by Investors, any
underwriter participating in any disposition pursuant to the Registration
Statement and any attorney, accountant or other agent retained by any Investor
or any such underwriter, all financial and other records, pertinent corporate
documents and properties of the Company, and cause the Company's officers,
employees and independent accountants to supply all information reasonably
requested by any Investor or any such underwriter, attorney, accountant or agent
in connection with the Registration Statement.

         (h) The Company shall permit counsel to any Investor to review the
Registration Statement and all amendments and supplements thereto (as well as
all requests for acceleration or effectiveness thereof) a reasonable period of
time prior to their filing with the

                                       5
<PAGE>

SEC, and not file any document in a form to which such counsel reasonably
objects, unless otherwise required by law in the opinion of the Company's
counsel. The sections of any such Registration Statement including information
with respect to the Investors, the Investors' beneficial ownership of securities
of the Company or the Investors' intended method of disposition of Registrable
Securities must conform to the information provided to the Company by the
Investors.

     6.  FURNISH INFORMATION. It shall be a condition precedent to the
obligations of the Company to take any action pursuant to this Agreement that
the selling Investors shall furnish to the Company such information regarding
them and the securities held by them as the Company shall reasonably request and
as shall be required in order to effect any registration by the Company pursuant
to this Agreement.

     7.  EXPENSES OF REGISTRATION. All expenses incurred in connection with the
registration of the Registrable Shares pursuant to this Agreement (excluding
underwriting, brokerage and other selling commissions and discounts), including
without limitation all registration and qualification and filing fees, printing,
and fees and disbursements of one counsel for the Investors and counsel for the
Company, shall be borne by the Company.

     8.  DELAY OF REGISTRATION. The Investors shall not take any action to
restrain, enjoin or otherwise delay any registration as the result of any
controversy which might arise with respect to the interpretation or
implementation of this Agreement.

     9.  INDEMNIFICATION AND CONTRIBUTION.

         (a) To the extent permitted by law, the Company will indemnify and hold
harmless each selling Investor, any investment banking firm acting as an
underwriter for the selling Investors, any broker/dealer acting on behalf of any
selling Investors and each officer and director of such selling Investor, such
underwriter, such broker/dealer and each person, if any, who controls such
selling Investor, such underwriter or broker/dealer within the meaning of the
Securities Act, against any losses, claims, damages or liabilities, joint or
several, to which they may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue or alleged untrue statement
of any material fact contained in the Registration Statement, in any preliminary
prospectus or final prospectus relating thereto or in any amendments or
supplements to the Registration Statement or any such preliminary prospectus or
final prospectus, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein, or
necessary to make the statements therein not misleading; and will reimburse such
selling Investor, such underwriter, broker/dealer or such officer, director or
controlling person for any legal or other expenses reasonably incurred by them
in connection with investigating or defending any such loss, claim, damage,
liability or action; PROVIDED, HOWEVER, that the indemnity agreement contained
in this Section 9(a) shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without
the consent of the Company (which consent shall not be unreasonably withheld),
nor shall the Company be liable in any such case for any such loss, damage,
liability or action to the extent that it arises out of or is based upon an
untrue statement or alleged untrue statement or omission made in connection with
the Registration Statement, any preliminary prospectus or

                                       6
<PAGE>

final prospectus relating thereto or any amendments or supplements to the
Registration Statement or any such preliminary prospectus or final prospectus,
in reliance upon and in conformity with written information furnished expressly
for use in connection with the Registration Statement or any such preliminary
prospectus or final prospectus by the selling Investors, any underwriter for
them or controlling person with respect to them.

         (b) To the extent permitted by law, each selling Investor will
severally and not jointly indemnify and hold harmless the Company, each of its
directors, each of its officers who have signed the Registration Statement, each
person, if any, who controls the Company within the meaning of the Securities
Act, any investment banking firm acting as underwriter for the Company or the
selling Investors, or any broker/dealer acting on behalf of the Company or any
selling Investors, and all other selling Investors against any losses, claims,
damages or liabilities to which the Company or any such director, officer,
controlling person, underwriter, or broker/dealer or such other selling Investor
may become subject to, under the Securities Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereto) arise out
of or are based upon any untrue or alleged untrue statement of any material fact
contained in the Registration Statement or any preliminary prospectus or final
prospectus, relating thereto or in any amendments or supplements to the
Registration Statement or any such preliminary prospectus or final prospectus,
or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, in each case to the extent and only to the
extent that such untrue statement or alleged untrue statement or omission or
alleged omission was made in the Registration Statement, in any preliminary
prospectus or final prospectus relating thereto or in any amendments or
supplements to the Registration Statement or any such preliminary prospectus or
final prospectus, in reliance upon and in conformity with written information
furnished by the selling Investor expressly for use in connection with the
Registration Statement, or any preliminary prospectus or final prospectus; and
such selling Investor will reimburse any legal or other expenses reasonably
incurred by the Company or any such director, officer, controlling person,
underwriter, broker/dealer or other selling Investor in connection with
investigating or defending any such loss, claim, damage, liability or action,
PROVIDED, HOWEVER, that the liability of each selling Investor hereunder shall
be limited to the proceeds (net of underwriting discounts and commissions, if
any) received by such selling Investor from the sale of Registrable Shares
covered by the Registration Statement, and PROVIDED, FURTHER, HOWEVER, that the
indemnity agreement contained in this Section 9(b) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of those selling Investor(s) against
which the request for indemnity is being made (which consent shall not be
unreasonably withheld).

         (c) Promptly after receipt by an indemnified party under this Section 9
of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against any indemnifying party under this
Section 9, notify the indemnifying party in writing of the commencement thereof
and the indemnifying party shall have the right to participate in and, to the
extent the indemnifying party desires, jointly with any other indemnifying party
similarly noticed, to assume at its expense the defense thereof with counsel
mutually satisfactory to the indemnifying parties with the consent of the
indemnified party which consent will not be unreasonably withheld, conditioned
or delayed. In the event that the indemnifying party assumes any such defense,
the indemnified party may participate in such

                                       7
<PAGE>

defense with its own counsel and at its own expense, PROVIDED, HOWEVER, that the
counsel for the indemnifying party shall act as lead counsel in all matters
pertaining to such defense or settlement of such claim and the indemnifying
party shall only pay for such indemnified party's expenses for the period prior
to the date of its participation on such defense. The failure to notify an
indemnifying party promptly of the commencement of any such action, if
prejudicial to his ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section
9, but the omission so to notify the indemnifying party will not relieve him of
any liability which he may have to any indemnified party otherwise other than
under this Section 9.

         (d) Notwithstanding anything to the contrary herein, the indemnifying
party shall not be entitled to settle any claim, suit or proceeding unless in
connection with such settlement the indemnified party receives an unconditional
release with respect to the subject matter of such claim, suit or proceeding and
such settlement does not contain any admission of fault by the indemnified
party.

         (e) In order to provide for just and equitable contribution, if a claim
for indemnification pursuant to this Section 9 is made but it is found in a
final judgment of a court of competent jurisdiction (not subject to further
appeal) that such indemnification my not be enforced in such case, even though
the express provisions hereof provided for indemnification in such case, then
the Company, on the one hand, and any Investor, on the other hand, shall
contribute to the losses, claims, damages, liabilities or costs to which the
indemnified persons may be subject (i) in such proportion as in appropriate to
reflect the relative benefits received by the indemnifying party and the
indemnified parties in connection with the offering of the Registrable Shares,
and (ii) if the allocation provided by the foregoing clause (i) is not permitted
by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of
the indemnifying party and the indemnified parties in connection with the
actions which resulted in any such losses, claims, liabilities or costs, as well
as any other relevant equitable considerations. The benefits received by the
Company in connection with the offering of the Registrable Shares shall be
deemed to be the net proceeds (before deducting expenses) from the offering of
the Registrable Shares received by the Company and the benefits received by each
Investor from the offering of the Registrable Shares shall be deemed to be the
difference between (x) the net amount of proceeds received by such Investor from
the sale of Registrable Shares pursuant to the Registration Statement, MINUS (y)
the purchase price paid by such Investor for such Registrable Shares. The
relative fault of such indemnifying party and indemnified parties shall be
determined with reference to, among other things, whether any action in
question, including any untrue or alleged untrue statement of a material fact or
omission or alleged omission to state a material fact, has been made by, or
relates to information supplied by, such indemnifying party or indemnifed
parties, and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such action. The amount paid or payable by a
party as a result of the losses, claims, damages, liabilities or costs referred
to above shall be deemed to include any legal or other fees or expenses
reasonably incurred by such party in connection with any investigation or
proceedings. Notwithstanding the foregoing, in no event shall any Investor's
aggregate liability under this Section 9 exceed the difference between (x) the
net amount of proceeds received by such Investor from the sale of Registrable
Shares pursuant to the Registration Statement, MINUS (y) the purchase price paid
by such Investor for such Registrable Shares.

                                       8
<PAGE>

     10.  REPORTS UNDER THE EXCHANGE ACT. With a view to making available to
the Investors the benefits of Rule 144 and any other rule or regulation of the
SEC that may at any time permit the Investors to sell the Purchased Shares to
the public without registration, the Company agrees to use commercially
reasonable efforts: (i) to make and keep public information available, as those
terms are understood and defined in the General Instructions to Form S-3, or any
successor or substitute form, and in Rule 144, (ii) to file with the SEC in a
timely manner all reports and other documents required to be filed by an issuer
of securities registered under the Securities Act or the Exchange Act, (iii) as
long as any Investor owns any Purchased Shares, to furnish in writing upon such
Investor's request a written statement by the Company that it has complied with
the reporting requirements of Rule 144 and of the Securities Act and the
Exchange Act, and to furnish to such Investor a copy of the most recent annual
or quarterly report of the Company, and such other reports and documents so
filed by the Company as may be reasonably requested in availing such Investor of
any rule or regulation of the SEC permitting the selling of any such Purchased
Shares without registration and (iv) undertake any additional actions reasonably
necessary to maintain the availability of the Registration Statement or the use
of Rule 144.

     11.  DEFERRAL AND LOCK-UP.

         (a) Notwithstanding anything in this Agreement to the contrary, if the
Company shall furnish to the selling Investors a certificate signed by the
President or Chief Executive Officer of the Company stating that the Board of
Directors of the Company has made the good faith determination (i) that
continued use by the selling Investors of the Registration Statement for
purposes of effecting offers or sales of Registrable Shares pursuant thereto
would require, under the Securities Act, premature disclosure in the
Registration Statement (or the prospectus relating thereto) of material,
nonpublic information concerning the Company, its business or prospects or any
proposed material transaction involving the Company, (ii) that such premature
disclosure would be materially adverse to the Company, its business or prospects
or any such proposed material transaction or would make the successful
consummation by the Company of any such material transaction significantly less
likely and (iii) that it is therefore essential to suspend the use by the
Investors of such Registration Statement (and the prospectus relating thereto)
for purposes of effecting offers or sales of Registrable Shares pursuant
thereto, then the right of the selling Investors to use the Registration
Statement (and the prospectus relating thereto) for purposes of effecting offers
or sales of Registrable Shares pursuant thereto shall be suspended for a period
(the "Suspension Period") of not more than 75 days in any 12 month period after
delivery by the Company of the certificate referred to above in this Section 11.
During the Suspension Period, none of the Investors shall offer or sell any
Registrable Shares pursuant to or in reliance upon the Registration Statement
(or the prospectus relating thereto).

     12.  TRANSFER OF REGISTRATION RIGHTS. None of the rights of any Investor
under this Agreement shall be transferred or assigned to any person unless (i)
such person is a Qualifying Holder (as defined below), and (ii) such person
agrees to become a party to, and bound by, all of the terms and conditions of,
this Agreement by duly executing and delivering to the Company an Instrument of
Adherence in the form attached as EXHIBIT B hereto. For purposes of this Section
12, the term "QUALIFYING HOLDER" shall mean, with respect to any Investor, (i)
any partner thereof, (ii) any corporation, partnership controlling, controlled
by, or under common

                                       9
<PAGE>

control with, such Investor or any partner thereof, or (iii) any other direct
transferee from such Investor of at least 50% of those Registrable Shares held
or that may be acquired by such Investor. None of the rights of any Investor
under this Agreement shall be transferred or assigned to any Person (including,
without limitation, a Qualifying Holder) that acquires Registrable Shares in the
event that and to the extent that such Person is eligible to resell such
Registrable Shares pursuant to Rule 144(k) of the Securities Act or may
otherwise resell such Registrable Shares pursuant to an exemption from the
registration provisions of the Securities Act.

     13.  ENTIRE AGREEMENT. This Agreement constitutes and contains the entire
agreement and understanding of the parties with respect to the subject matter
hereof, and it also supersedes any and all prior negotiations, correspondence,
agreements or understandings with respect to the subject matter hereof.

     14.  MISCELLANEOUS.

         (a) This Agreement may not be amended, modified or terminated, and no
rights or provisions may be waived, except with the written consent of the
Majority Holders and the Company.

         (b) This Agreement shall be governed by and construed and enforced in
accordance with the laws of California, and shall be binding upon and inure to
the benefit of the parties hereto and their respective heirs, personal
representatives, successors or assigns, PROVIDED that the terms and conditions
of Section 12 hereof are satisfied. This Agreement shall also be binding upon
and inure to the benefit of any transferee of any of the Purchased Shares
PROVIDED that the terms and conditions of Section 12 hereof are satisfied.
Notwithstanding anything in this Agreement to the contrary, if at any time any
Investor shall cease to own any Purchased Shares, all of such Investor's rights
under this Agreement shall immediately terminate.

         (c) (i) Any notices, reports or other correspondence (hereinafter
collectively referred to as "CORRESPONDENCE") required or permitted to be given
hereunder shall be sent by courier (overnight or same day) or telecopy or
delivered by hand to the party to whom such correspondence is required or
permitted to be given hereunder. The date of giving any notice shall be the date
of its actual receipt.

             (ii) All correspondence to the Company shall be addressed as
follows:

                                    Kana Communications, Inc.
                                    740 Bay Road
                                    Redwood City, CA  94063
                                    Attention:  General Counsel
                                    Telecopier: (650) 474-8507

               with a copy to:

                                    Brobeck, Phleger & Harrison LLP
                                    Two Embarcadero Place
                                    2200 Geng Road

                                       10
<PAGE>
                                    Palo Alto, CA  94303
                                    Attention:  David A. Makarechian, Esq.
                                    Telecopier:  (650) 496-2885

             (iii) All correspondence to any Investor shall be sent to such
Purchaser at the address set forth in EXHIBIT A.

         (d) Any entity may change the address to which correspondence to it is
to be addressed by notification as provided for herein.

         (e) The parties acknowledge and agree that in the event of any breach
of this Agreement, remedies at law may be inadequate, and each of the parties
hereto shall be entitled to seek specific performance of the obligations of the
other parties hereto and such appropriate injunctive relief as may be granted by
a court of competent jurisdiction.

         (f) This Agreement may be executed in a number of counterparts, an of
which together shall for all purposes constitute one Agreement, binding on all
the parties hereto notwithstanding that all such parties have not signed the
same counterpart.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       11
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Registration
Rights Agreement as of the date and year first above written.

                                  THE COMPANY:

                                  KANA COMMUNICATIONS, INC.
                                  a Delaware corporation

                                  By: /S/ MICHAEL J. MCCLOSKEY
                                     ------------------------------------------
                                     Name: MICHAEL J. MCCLOSKEY
                                     Title:  CHIEF EXECUTIVE OFFICER

                                       12
<PAGE>

                                   THE INITIAL INVESTORS:

                                   GALLEON TECHNOLOGY PARTNERS I, L.P.

                                   By:  /S/  THOMAS E. FERNANDEZ
                                      -----------------------------------------
                                      Name:    THOMAS E. FERNANDEZ
                                      Title:   CHIEF OPERATING OFFICER

                                   GALLEON TECHNOLOGY PARTNERS II, L.P.

                                   By:  /S/  THOMAS E. FERNANDEZ
                                      -----------------------------------------
                                      Name:    THOMAS E. FERNANDEZ
                                      Title: CHIEF OPERATING OFFICER

                                   GALLEON TECHNOLOGY OFFSHORE, LTD.

                                   By:  /S/  THOMAS E. FERNANDEZ
                                      -----------------------------------------
                                      Name:    THOMAS E. FERNANDEZ
                                      Title: CHIEF OPERATING OFFICER

                                   GALLEON NEW MEDIA PARTNERS, L.P.

                                   By:  /S/  THOMAS E. FERNANDEZ
                                      -----------------------------------------
                                      Name:    THOMAS E. FERNANDEZ
                                      Title: CHIEF OPERATING OFFICER

                                   GALLEON NEW MEDIA OFFSHORE, LTD.

                                   By:  /S/  THOMAS E. FERNANDEZ
                                      -----------------------------------------
                                      Name:    THOMAS E. FERNANDEZ
                                      Title: CHIEF OPERATING OFFICER

                                       13
<PAGE>

                                   PUTNAM VOYAGER FUND II
                                   PUTNAM FUNDS TRUST - PUTNAM NEW
                                     CENTURY GROWTH FUND
                                   PUTNAM INVESTMENT FUNDS - PUTNAM
                                     WORLDWIDE EQUITY FUND
                                   PUTNAM OTC AND EMERGING GROWTH FUND
                                   PUTNAM VARIABLE TRUST - PUTNAM VT OTC
                                     AND EMERGING GROWTH FUND
                                   PUTNAM NEW OPPORTUNITIES FUND
                                   PUTNAM VARIABLE TRUST - PUTNAM VT NEW
                                     OPPORTUNITIES FUND

                                   BY PUTNAM INVESTMENT MANAGEMENT, INC.

                                   By:  /S/  JOHN R. VERANI
                                      -----------------------------------------
                                      Name:   JOHN R. VERANI
                                      Title:  SENIOR VICE PRESIDENT

                                   PUTNAM WORLD TRUST II-PUTNAM EMERGING
                                     INFORMATION SCIENCES TRUST
                                   CISALPINA/PUTNAM USA OPPORTUNITIES FUND
                                   PUTNAM WORLD TRUST II-PUTNAM NEW
                                     OPPORTUNITIES
                                     (U.S. AGGRESSIVE GROWTH EQUITY FUND)

                                   BY THE PUTNAM ADVISORY COMPANY, INC.

                                   By:  /S/  JOHN R. VERANI
                                      -----------------------------------------
                                      Name:  JOHN R. VERANI
                                      Title:  SENIOR VICE PRESIDENT

                                   DWS INVESTMENTS

                                   By:  /S/  ANDREAS KRAFT
                                      -----------------------------------------
                                   Name:  ANDREAS KRAFT
                                   Title:   SENIOR FUND MANAGER

                                       14

<PAGE>

                                   METZLER INVESTMENTS

                                   By:  /S/  KLAUS HAGEDORN
                                      -----------------------------------------
                                      Name:  KLAUS HAGEDORN
                                      Title:  DIRECTOR

                                       15

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