X0303 4 2009-10-28 0 0001089907 KANA SOFTWARE INC KANA 0001056973 CARLSON CAPITAL L P 2100 MCKINNEY AVENUE SUITE 1600 DALLAS TX 75201 0 0 1 0 0001404625 Carlson Clint Duane 2100 MCKINNEY AVENUE SUITE 1600 DALLAS TX 75201 0 0 1 0 0001404557 Asgard Investment Corp. 2100 MCKINNEY AVENUE SUITE 1600 DALLAS TX 75201 0 0 1 0 0001452364 Black Diamond Offshore Ltd. 2100 MCKINNEY AVENUE SUITE 1600 DALLAS TX 75201 0 0 1 0 0001404976 Double Black Diamond Offshore Ltd 2100 MCKINNEY AVENUE SUITE 1600 DALLAS TX 75201 0 0 1 0 Common Stock 2009-10-28 4 P 0 975133 0.75 A 10954921 I See Footnote Common Stock 2009-10-28 4 P 0 58290 0.75 A 694179 I See Footnote The shares of common stock of KANA Software, Inc. reported herein are directly beneficially owned by Double Black Diamond Offshore Ltd. and Black Diamond Offshore Ltd., (together, the "Funds"). Carlson Capital, L.P. ("Carlson Capital") is the investment manager of the Funds. Asgard Investment Corp. ("Asgard") is the general partner of Carlson Capital. Clint D. Carlson is the President of Asgard and the Chief Executive Officer of Carlson Capital. The Reporting Persons disclaim beneficial ownership of any and all such shares in excess of their pecuniary interest therein, and the filing of this Form 4 shall not be deemed an admission that any such person or entity is the beneficial owner of or has a pecuniary interest in any such shares for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, or any other purpose. Clint D. Carlson, President of Asgard Investment Corp., general partner of Carlson Capital, L.P. 2009-10-29