Amendment No. 14 to Loan Agreement



 Exhibit 10.24 
 AMENDMENT NO. 14 TO 
 LOAN AGREEMENT 
 This Amendment No. 14 to Loan Agreement (the “Amendment”) is dated as of the 15th day of December, 2008 and is by and
between BANK OF AMERICA, N.A., a national banking association, as successor by merger to LaSalle Bank National Association (“Lender”), and eLOYALTY CORPORATION, a Delaware corporation (the “Borrower”). 
 W I T N E S S E T H: 
 WHEREAS, Lender and Borrower are parties to that certain Loan Agreement, dated as of December 17, 2001 (as amended or otherwise
modified from time to time, the “Loan Agreement”; capitalized terms used herein without definition shall have the meanings ascribed to such terms in the Loan Agreement); and 
 WHEREAS, the Borrower has requested that the Loan Agreement be amended in certain respects; 
 NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, each of Lender and Borrower hereby agree as follows: 
 1. Amendments to Loan Agreement. In
reliance on the representations and warranties set forth in Section 2 of this Amendment and subject to the satisfaction of the conditions precedent set forth in Section 3 of this Amendment, the Loan Agreement is hereby amended as follows:

 1.1. The following definition of “Farnam Lease” is hereby added to Section 1.1 of the Loan Agreement,
inserted in appropriate alphabetical order: 
 “Farnam Lease” shall mean that certain Lease Agreement between
Borrower and Farnam Street Financial, Inc. dated as of July 30, 2007.” 
 1.2. The definition of Maturity Date in
Section 1.1 of the Loan Agreement is hereby deleted in its entirety and replaced with the following: 
 ““Maturity Date” shall mean December 31, 2009.” 
 1.3. The first sentence of
Section 2.5 of the Loan Agreement is hereby deleted in its entirety and replaced with the following: 
 “Subject to
the terms and conditions of this Agreement and upon the execution by the Borrower and the Bank of a Master Letter of Credit Agreement and, the upon the execution and delivery by the Borrower, and the acceptance by the Bank of an application for
letter of credit, the Bank agrees to issue for the account of the Borrower such Letters of Credit in the standard 










 
form of the Bank and otherwise in form and substance acceptable to the Bank, from time to time during the term of this Agreement, provided that (i) the
Letter of Credit Obligations may not at any time exceed the Maximum Letter of Credit Obligation, (ii) the Letter of Credit Obligations may not at any time exceed the Borrowing Base Amount less the aggregate outstanding principal amount of the
Revolving Loans, and (iii) no Letter of Credit shall have an expiration date later than December 31, 2010.” 
 1.4. Section 8.1(f) of the Loan Agreement is amended and restated in its entirety as follows: 
 “(f)
obligations arising under (i) that certain Systems Integrator Agreement dated as of May 18, 2006 by and between the Borrower and Cisco Systems, Inc. (“Cisco”) as the same may be amended, restated or otherwise modified from time
to time; provided, however, that the amount owing by Borrower pursuant to such agreement shall at no time exceed $12,000,000 in the aggregate, (ii) the Farnam Lease as the same may be amended, restated or otherwise modified from time to time;
provided, however, that the lease amounts previously paid and to be paid by Borrower pursuant to the Farnam Lease shall not exceed $7,000,000 in the aggregate during the term of the Farnam Lease (iii) Capital Leases (other than the Farnam
Lease) or purchase money financing for fixed assets acquired (or deemed to be acquired) by the Borrower, so long as the aggregate outstanding amount of such obligations (whether or not described on Schedule 8.2) at any time does not
exceed $1,000,000;” 
 2. Representations and Warranties. To induce the Lender to enter into this Amendment, the
Borrower hereby represents and warrants to the Lender that: 
 2.1. the execution, delivery and performance by the Borrower
of this Amendment and each of the other agreements, instruments and documents contemplated hereby are within its corporate power, have been duly authorized by all necessary corporate action, have received all necessary governmental approval (if any
shall be required), and do not and will not contravene or conflict with any provision of law applicable to the Borrower, the certificate of incorporation and by-laws of the Borrower (as amended to date), any order, judgment or decree of any court or
governmental agency, or any agreement, instrument or document binding upon the Borrower or any of its property; 
 2.2. each
of the Loan Agreement and the other Loan Documents, each as amended by this Amendment, are the legal, valid and binding obligation of the Borrower to the extent the Borrower is a party thereto, and the Loan Agreement and such Loan Documents are
enforceable against the Borrower in accordance with their respective terms; 
  

 -2- 








 2.3. the representations and warranties of Borrower contained in the Loan Agreement and
the Loan Documents, each as amended hereby, are true and correct in all material respects as of the date hereof, with the same effect as though made on the date hereof, except to the extent that such representations and warranties expressly relate
to an earlier date, in which case such representations and warranties are true and correct as of such earlier date; and 
 2.4. Borrower has performed in all material respects all of its obligations under the Loan Agreement and the other Loan Documents to be performed by it on or before the date hereof and as of the date hereof, Borrower is in compliance with
all applicable terms and provisions of the Loan Agreement and each of the other Loan Documents to be observed and performed by it and, assuming the effectiveness of the consents set forth herein, no Event of Default has occurred and is continuing.

 3. Conditions. The effectiveness of the amendments and consents set forth above is subject to the following
conditions precedent: 
 3.1. Borrower shall have executed and delivered to Lender, or shall have caused to be executed and
delivered to Lender, each in form and substance satisfactory to Lender, this Amendment, a Second Amended and Restated Revolving Note and such other documents, instruments and agreements as Lender may reasonably request. 
 3.2. Borrower shall have paid to Lender the annual renewal fee for the extension of the Maturity Date in the amount of $15,000 which
shall be fully earned and non-refundable. 
 3.3. All proceedings taken in connection with the transactions contemplated by
this Amendment and all documents, instruments and other legal matters incident thereto shall be satisfactory to Lender and its legal counsel. 
 3.4. Assuming the effectiveness of the consents set forth herein, no Event of Default shall have occurred and be continuing. 
 4. References; Effectiveness. Each of the Lender and the Borrower hereby agree that all references to the Loan Agreement which are contained in any of the other Loan Documents shall refer
to the Loan Agreement as amended by this Amendment. 
 5. Counterparts. This Amendment may be executed in any number
of counterparts and by the different parties on separate counterparts, and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Amendment. 
 6. Continued Effectiveness. Except as specifically set forth herein, the Loan Agreement and each of the other Loan Documents shall
continue in full force and effect according to their respective terms. 
  

 -3- 








 7. Governing Law. This Amendment shall be a contract made under and governed by
the internal laws of the State of Illinois. 
 8. Costs and Expenses. Borrower hereby agrees that all expenses
incurred by the Lender in connection with the preparation, negotiation and closing of the transactions contemplated hereby, including without limitation reasonable attorneys’ fees and expenses, shall be part of the Obligations. 
 [Signature page to follow] 
  

 -4- 








 IN WITNESS WHEREOF, this Amendment has been executed as of, and is effective as of, the
day and year first written above. 
  

			
	eLOYALTY CORPORATION, a Delaware corporation, as Borrower
		
	 By 
	 	 /s/ William B. Noon

	 Its
	 	 VP, Controller

	
	BANK OF AMERICA, N.A., a national banking association, as successor by merger to LaSalle Bank National Association, as Lender
		
	 By 
	 	 /s/ Erin M. Frey

	 Its
	 	 VP



  

 -5-