Exhibit 10.26


    Exhibit
      10.26

    Summary
      of Certain Director and Executive Compensation

    


    


    Executive
      Officers

    


    2006
      Compensation

    


    On
      February 16, 2006, the Compensation Committee of the Board of Directors of
      Interactive Intelligence, Inc. (the “Company”) approved compensation
      arrangements for the Company’s executive officers beginning January 1, 2006.
      Annual base salary for the Company’s executive officers are as follows: Donald
      E. Brown, President and Chief Executive Officer, $300,000; Gary R. Blough,
      Executive Vice President, Worldwide Sales, $200,000; Jeremiah J. Fleming,
      President - Vonexus, $200,000; Stephen R. Head, Chief Financial Officer,
      $200,000; Pamela J. Hynes, Vice President, Customer Services, $150,000; and
      Joseph A. Staples, Senior Vice President, Marketing, $200,000.

    


    Dr.
      Brown, Mr. Head, Ms. Hynes and Mr. Staples are also eligible for a Company
      Performance Bonus, which is dependent on the Company achieving certain levels
      of
      financial operating results and, if met, will be payable in the amount of
      $37,500, $10,000, $2,500 and $10,000 per quarter, respectively. 

    


    Messrs.
      Blough, Fleming and Head, Ms. Hynes and Mr. Staples are eligible for bonuses
      of
      $10,000, $10,000, $5,000, $7,500 and $10,000 per quarter, respectively. Mr.
      Blough’s bonus is based upon achieving quota targets in all regions. Mr.
      Fleming’s bonus is dependent on Vonexus achieving certain gross profit targets.
      Mr. Head’s bonus is based upon cash collection targets. Ms. Hynes’ bonus is
      based upon the revenue and operating income from the services over which she
      is
      responsible. Mr. Staples’ bonus is based on the dollar amount of orders for
      Interactive Intelligence and certain gross profit targets for
      Vonexus.

    


    Messrs.
      Blough and Fleming are also eligible for monthly, quarterly and/or annual
      commission and/or quota bonuses that are tied to the areas over which they
      are
      responsible. Mr. Blough is eligible to earn a commission based upon worldwide
      contracted licenses and services. Mr. Fleming is eligible to earn a commission
      based on Vonexus performance. 

    


    Certain
      executives are eligible for a Superior Achievement Bonus based on the Company
      exceeding its operating income targets. This bonus would be awarded as a
      percentage of the Company’s operating income achieved above the target. Dr.
      Brown is eligible for 5%, Mr. Head 2.5%, Ms. Hynes 1% and Mr. Staples 1%. The
      Company must reach certain annual revenue targets in addition to the operating
      income targets in order for Mr. Staples to be eligible for his Superior
      Achievement Bonus. Mr. Fleming is eligible for 4% of the gross profit of Vonexus
      orders exceeding its annual targets. 

    


    Dr.
      Brown, Messrs. Blough, Fleming and Head, Ms. Hynes and Mr. Staples are eligible
      to receive grants of incentive stock options on an annual basis of up to 45,000,
      10,000, 15,000, 25,000, 15,000, and 25,000 shares, respectively. These option
      grants are based on the Company’s performance, Vonexus performance and/or sales
      quotas, depending on the individual executive’s role within the Company. Messrs.
      Blough and Fleming are also eligible for quarterly stock options of 2,500 shares
      each, based upon achievement of sales quotas and Vonexus gross profit,
      respectively. They are also eligible for additional annual stock option grants
      based on the percentage each goes over their targets. Messrs. Blough and Fleming
      are eligible for total maximum options up to 30,000 and 35,000 each per year.
      


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    


    


    All
      options discussed above may be granted in full or in partial amounts according
      to the discretion of the Compensation Committee and the option exercise price
      equal to the closing price of the Company’s stock as of the date they are
      approved by the Compensation Committee.

    


    Board
      of Directors 

    


    2006
      Compensation

    


    Non-employees
      serving as members of the Company’s Board of Directors receive an annual
      retainer of $10,000, payable in quarterly installments, in connection with
      membership on the Company’s Board of Directors. In addition, each member
      receives $1,000 for attending in person and $500 for attending by telephone
      any
      meeting of the Board of Directors or any meeting of a committee of the Board
      of
      Directors that is not held in conjunction with a meeting of the full Board
      of
      Directors. An additional fee of $5,000 per year, payable in quarterly
      installments, is paid to the Chairman of the Audit Committee of the Board of
      Directors and $1,000 per year, payable in quarterly installments, is paid to
      each other member of the Audit Committee. Directors are entitled to
      reimbursement of expenses incurred in connection with attendance at Board and
      committee meetings.

    


    Non-employees
      serving as members of the Company’s Board of Directors are eligible to receive
      stock option grants under the Company’s Outside Directors Stock Option
      Plan.

    


    Full-time
      officers of the Company or its subsidiaries do not receive additional
      compensation for serving as members of the Boards of Directors of the Company
      or
      its subsidiaries. No additional compensation is paid if a full-time officer
      serves on any committee of such Boards of Directors.