**Exhibit 10.17 (ii)**

**MODIFICATION AND/OR EXTENSIONAGREEMENT**
| *Date:*     | April 30, 2001                                                                              |   |
|-------------|---------------------------------------------------------------------------------------------|--------|
|        |                                                                                        |   |   |
| *Borrower:* | Interactive Intelligence, Inc.                                                              |   |
|        |                                                                                        |   |   |
| *Lender:*   | KEYBANK NATIONAL ASSOCIATION                                                                |   |
|        |                                                                                        |   |
|        | Dated    December 21, 2000, in the principal  amount of  $5,000,000,00. |   |
|        |                                                                                        |   |   |   |   |
| Loan #:     | 0100429074/10001                                                                            |   |
|             |                                                                                             |        |  |  |  |  |  |  |

*            *FORVALUE RECIEVED, Borrower and Lender hereby agree to modify the above-referencedLoan and Promissory Note and/or Loan Agreement as follows:

| 1.     | MODIFICATION AND/OR EXTENSION PROVISIONS.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | •                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | The maturity date of the Loan is hereby  extended to April 29, 2002. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |
|   | •                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Effective April 30 2001 the covenant  entitled Total Senior Liabilities to Adjusted Capital Ratio, is hereby  changed to 1.50 to 1.00. |
|   |
| 2.     | CONDITIONS.  The  modifications and/or extension described above are subject to and conditioned  upon Borrower's full satisfaction of all of the following conditions on or  before the date first stated above, time being of the essence.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |
|   | A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | There shall be no uncured event of default  under the Loan, nor any event or condition which with notice or the passage  of time would be an event of default thereunder. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|   | B.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Borrower shall deliver to Lender a fully  executed original of this Modification and/or Extension Agreement. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|   | C.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | All expenses incurred by Lender in connection  with this Agreement (including without limitation, attorney fees, recording  charges, charges for title policy update(s), escrow charges, costs of  obtaining updated or additional appraisal(s) or collateral valuations, if  required by Lender) shall be paid by Borrower. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| 3.     | GENERAL PROVISIONS. Except as modified above, all other  provisions of the Promissory Note and any other documents securing or  relating to the Loan (the "Loan Documents") remain in full force  and effect.  All security given for  the Loan and all guarantees of the Loan (as applicable) shall continue in  full force.  Borrower warrants and  represents to Lender that it has full right, power and authority to enter  into this agreement and to perform all its obligations hereunder, and that  all information and materials submitted to Lender in connection with this  modification are accurate and complete. Borrower warrants that no default  exists under the Loan Documents. Borrower reaffirms its obligation to pay the  Loan in full and reaffirms the validity and enforceability of the Loan  Documents, without set-off, counterclaim or defense. |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |  |  |  |  |

 

 

| **LENDER:**                  |   | **BORROWER:**                               |
|------------------------------|--------|---------------------------------------------|
| KeyBank National Association |   | Interactive Intelligence, Inc.              |
|                              |   |                                             |
|                         |   |                                        |
| By:                          |   | By:   /s/ Donald E. Brown              |
|                              |   |                                             |
| Authorized Officer           |   | Donald E. Brown, M.D., President & CEO  |
|                         |   |                                        |
| By:                          |   | By:   /s/ Michael J. Tavlin            |
|                              |   |                                             |
|                         |   | Michael J. Tavlin, SVP, CFO & Secretary |

 

Indiana/Michigan