Document:

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                                                                   EXHIBIT 10.16

[BANK OF AMERICA LOGO]                                   BUSINESS LOAN AGREEMENT
Bank of America, N.A.

This Agreement dated as of March             , 2000, is between BANK OF AMERICA,
N.A. (the "Bank") and eLOYALTY CORPORATION (the "Borrower").

1. LINE OF CREDIT AMOUNT AND TERMS

1.1 LINE OF CREDIT AMOUNT.

         (a) During the availability period described below, the Bank will
provide a line of credit to the Borrower. The amount of the line of credit (the
"Commitment") is Ten Million Dollars ($10,000,000).

         (b) This is a revolving line of credit providing for cash advances and
letters of credit. During the availability period, the Borrower may repay
principal amounts and reborrow them.

         (c) Each advance will be for at least One Hundred Thousand Dollars
($100,000), or for the amount of the remaining available line of credit, if
less.

         (d) The Borrower agrees not to permit the outstanding principal balance
of advances under the line of credit plus the outstanding amounts of any letters
of credit, including amounts drawn on letters of credit and not yet reimbursed,
to exceed the Commitment.

1.2 AVAILABILITY PERIOD. The line of credit is available between the date of
this Agreement and December 30, 2000 (the "Expiration Date") unless the Borrower
is in default.

1.3 INTEREST RATE.

         (a) Unless the Borrower elects the optional interest rate described
below, the interest rate is a per annum rate equal to the Reference Rate defined
below.

         (b) The Reference Rate is the rate of interest publicly announced from
time to time by the Bank in San Francisco, California, as its Reference Rate.
The Reference Rate is set by the Bank based on various factors, including the
Bank's costs and desired return, general economic conditions and other factors,
and is used as a reference point for pricing some loans. The Bank may price
loans to its customers at, above, or below the Reference Rate. Any change in the
Reference Rate will take effect at the opening of business on the day specified
in the public announcement of a change in the Bank's Reference Rate.

1.4 OPTIONAL INTEREST RATE. Instead of the interest rate based on the Bank's
Reference Rate, the Borrower may elect the optional interest rate listed below
during interest periods agreed to by the Bank and the Borrower. The optional
interest rate shall be subject to the terms and conditions described later in
this Agreement. Any principal amount bearing interest at an optional rate under
this Agreement is referred to as a "Portion." The following optional interest
rate is available: the IBOR Rate plus 0.75 percentage points.

1.5 REPAYMENT TERMS.

         (a) The Borrower will pay interest on April 30, 2000, and then monthly
thereafter until payment in full of any principal outstanding under this line of
credit.

         (b) The Borrower will repay in full all principal and any unpaid
interest or other charges outstanding under this line of credit no later than
the Expiration Date.

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1.6 LETTERS OF CREDIT. This line of credit may be used for financing:

         (i) standby letters of credit with a maximum maturity not to extend
more than one year beyond the Expiration Date.

         (ii) The amount of the letters of credit outstanding at any one time
(including amounts drawn on the letters of credit and not yet reimbursed) may
not exceed Three Million Dollars ($3,000,000) (the "L/C Sublimit").

The Borrower agrees:

         (a) any sum drawn under a letter of credit may, at the option of the
Bank, be added to the principal amount outstanding under this Agreement. The
amount will bear interest and be due as described elsewhere in this Agreement.

         (b) if there is a default under this Agreement, to immediately prepay
and make the Bank whole for any outstanding letters of credit.

         (c) the issuance of any letter of credit and any amendment to a letter
of credit is subject to the Bank's written approval and must be in form and
content satisfactory to the Bank and in favor of a beneficiary acceptable to the
Bank.

         (d) to sign the Bank's form Application and Agreement for Standby
Letter of Credit.

         (e) to pay any issuance and/or other fees that the Bank notifies the
Borrower will be charged for issuing and processing letters of credit for the
Borrower.

         (f) to allow the Bank to automatically charge its checking account for
applicable fees, discounts, and other charges.

2. OPTIONAL INTEREST RATE

2.1 OPTIONAL RATE. The optional interest rate is a rate per year. interest will
be paid on the last day of each interest period, and, if the interest period is
longer than 90 days, then on the last day of each quarter during the interest
period. At the end of any interest period, the interest rate will revert to the
rate based on the Reference Rate, unless the Borrower has designated another
optional interest rate for the Portion. No Portion will be converted to a
different interest rate during the applicable interest period. Upon the
occurrence of an event of default under this Agreement, the Bank may terminate
the availability of optional interest rates for interest periods commencing
after the default occurs.

2.2 IBOR RATE. The election of IBOR Rates shall be subject to the following
terms and requirements:

         (a) The interest period during which the IBOR Rate will be in effect
will be no shorter than 30 days and no longer than 180 days. The first day of
the interest period must be a Banking Day on which the Bank is also open for
business in California and dealing in offshore dollars. The last day of the
interest period will be determined by the Bank using the practices of the
offshore dollar inter-bank market.

         (b) Each IBOR Rate Portion will be for an amount not less than the
following:

              (i) for interest periods of 91 days or longer, Five Hundred
         Thousand Dollars ($500,000).

              (ii) for interest periods of between 31 and 90 days, One Million
         Dollars ($1,000,000).

         (c) The Borrower may not elect an IBOR Rate with respect to any
principal amount which is scheduled to be repaid before the last day of the
applicable interest period.

         (d) The "IBOR Rate" means the interest rate determined by the following
formula, rounded upward to the nearest 1/100 of one percent. (All amounts in
the calculation will be determined by the Bank as of the first day of the
interest period.)

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                      IBOR Rate =                     IBOR Base Rate
                                                ---------------------------
                                                (1.00 - Reserve Percentage)

         Where,

              (i) "IBOR Base Rate" means the interest rate at which the Bank's
         Grand Cayman Branch, Grand Cayman, British West Indies, would offer
         U.S. dollar deposits for the applicable interest period to other major
         banks in the offshore dollar inter-bank market.

              (ii) "Reserve Percentage" means the total of the maximum reserve
         percentages for determining the reserves to be maintained by member
         banks of the Federal Reserve System for Eurocurrency Liabilities, as
         defined in Federal Reserve Board Regulation D, rounded upward to the
         nearest 1/100 of one percent. The percentage will be expressed as a
         decimal, and will include, but not be limited to, marginal, emergency,
         supplemental, special, and other reserve percentages.

         (e) Each prepayment of an IBOR Rate Portion, whether voluntary, by
reason of acceleration or otherwise, will be accompanied by the amount of
accrued interest on the amount prepaid, and a prepayment fee as described below.
A "prepayment" is a payment of an amount on a date earlier than the scheduled
payment date for such amount as required by this Agreement. The prepayment fee
shall be equal to the amount (if any) by which:

              (i) the additional interest which would have been payable during
         the interest period on the amount prepaid had it not been prepaid,
         exceeds

              (ii) the interest which would have been recoverable by the Bank by
         placing the amount prepaid on deposit in the domestic certificate of
         deposit market, the eurodollar deposit market, or other appropriate
         money market selected by the Bank for a period starting on the date on
         which it was prepaid and ending on the last day of the interest period
         for such Portion (or the scheduled payment date for the amount prepaid,
         if earlier).

         (f) The Bank will have no obligation to accept an election for an IBOR
Rate Portion if any of the following described events has occurred and is
continuing:

              (i) Dollar deposits in the principal amount, and for periods equal
         to the interest period, of an IBOR Rate Portion are not available in
         the offshore Dollar inter-bank market; or

              (ii) the IBOR Rate does not accurately reflect the cost of an IBOR
         Rate Portion.

3. FEES AND EXPENSES

3.1 FEES.

         (a) LOAN FEE. The Borrower agrees to pay a loan fee in the amount of
Twenty Five Thousand Dollars ($25,000). This fee is due on or before the date of
this Agreement.

         (b) UNUSED COMMITMENT FEE. The Borrower agrees to pay a fee on any
difference between the Commitment and the amount of credit it actually uses,
determined by the weighted average credit outstanding during the specified
period. The fee will be calculated at 0.125% per year. The calculation of credit
outstanding will include the undrawn amount of letters of credit. This fee is
due on March 31, 2000 and on the last day of each quarter thereafter until the
expiration of the availability period.

3.2 EXPENSES. The Borrower agrees to reimburse the Bank upon demand, whether or
not any loan is made under this Agreement, for:

         (a) filing, recording and search fees, appraisal fees, title report
fees, documentation fees, and other similar fees, costs and expenses incurred by
the Bank.

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         (b) any expenses the Bank incurs in the preparation, negotiation and
execution of this Agreement and any agreement or instrument required by this
Agreement. Expenses include, but are not limited to, reasonable attorneys' fees,
including any allocated costs of the Bank's in-house counsel.

         (c) any stamp or other taxes which may be payable with respect to the
execution or delivery of this Agreement and any agreement or instrument required
by this Agreement.

4. DISBURSEMENTS, PAYMENTS AND COSTS

4.1 REQUESTS FOR CREDIT. Each request for an extension of credit will be made in
writing in a manner acceptable to the Bank, or by another means acceptable to
the Bank.

4.2 DISBURSEMENTS AND PAYMENTS. Each disbursement by the Bank will be made in
immediately available funds and will be evidenced by records kept by the Bank.
In addition, the Bank may, at its discretion, require the Borrower to sign one
or more promissory notes. Each payment made by the Borrower will be made without
set-off or counterclaim in immediately available funds not later than 2:00 p.m.,
Chicago time, on the date called for under this Agreement at the Bank's office
at 231 South LaSalle Street, Chicago, Illinois 60697. Funds received on any day
after such time will be deemed to have been received on the next Banking Day.
Whenever any payment to be made under this Agreement is stated to be due on a
day which is not a Banking Day, such payment will be made on the next succeeding
Banking Day and such extension of time will be included in the computation of
any interest.

4.3 TELEPHONE AND FACSIMILE AUTHORIZATION.

         (a) The Bank may honor telephone or facsimile instructions for advances
or repayments or for the designation of optional interest rates and facsimile
requests for the issuance of letters of credit given by any one of the
individuals authorized to sign loan agreements on behalf of the Borrower, or any
other individual designated by any one of such authorized signers.

         (b) Advances will be deposited in and repayments will be withdrawn from
the Borrowers account or such other of the Borrower's accounts with the Bank
as designated in writing by the Borrower.

         (c) Upon the Bank's request, the Borrower will provide written
confirmation to the Bank of any telephone or facsimile instructions within 2
days. if there is a discrepancy and the Bank has already acted on the
instructions, the telephone or facsimile instructions will prevail over the
written confirmation.

         (d) The Borrower indemnifies and excuses the Bank (including its
officers, employees, and agents) from all liability, loss, and costs in
connection with any act resulting from telephone or facsimile instructions the
Bank reasonably believes are made by any individual authorized by the Borrower
to give such instructions. This indemnity and excuse will survive this
Agreement.

4.4 DIRECT DEBIT.

         (a) The Borrower agrees that interest and any fees will be deducted
automatically on the due date from the Borrower's checking account number
         , or such other of the Borrower's accounts with the Bank as designated
in writing by the Borrower.

         (b) The Bank will debit the account on the dates the payments become
due. If a due date does not fall on a Banking Day, the Bank will debit the
account on the first Banking Day following the due date.

          (c) The Borrower will maintain sufficient funds in the account on the
dates the Bank enters debits authorized by this Agreement. If there are
insufficient funds in the account on the date the Bank enters any debit
authorized by this Agreement, the debit will be reversed.

4.5 BANKING DAYS. Unless otherwise provided in this Agreement, a "Banking Day"
is a day other than a Saturday or a Sunday on which the Bank is open for
business in Chicago, Illinois. All payments and disbursements which would be due
on a day which is not a Banking Day will be due on the next Banking Day.

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All payments received on a day which is not a Banking Day will be applied to the
credit on the next Banking Day.

4.6 ADDITIONAL COSTS. The Borrower will pay the Bank, on demand, for the Bank's
costs or losses arising from any statute or regulation, or any request or
requirement of a regulatory agency which is applicable to all national banks or
a class of all national banks. The costs and losses will be allocated to the
loan in a manner determined by the Bank, using any reasonable method. The costs
include the following:

         (a) any reserve or deposit requirements; and

         (b) any capital requirements relating to the Bank's assets and
commitments for credit.

4.7 INTEREST CALCULATION. Except as otherwise stated in this Agreement, all
interest and fees, if any, will be computed on the basis of a 360 day year and
the actual number of days elapsed. Installments of principal which are not paid
when due under this Agreement shall continue to bear interest until paid.

4.8 DEFAULT RATE. Upon the occurrence and during the continuation of any default
under this Agreement, principal amounts outstanding under this Agreement will at
the option of the Bank bear interest at a rate which is 2 percentage point(s)
higher than the rate of interest otherwise provided under this Agreement. This
will not constitute a waiver of any default.

5. CONDITIONS

The Bank must receive the following items, in form and content acceptable to the
Bank, before it is required to extend any credit to the Borrower under this
Agreement:

5.1 AUTHORIZATIONS. Evidence that the execution, delivery and performance by the
Borrower (and any guarantor) of this Agreement and any instrument or agreement
required under this Agreement have been duly authorized.

5.2 GOVERNING DOCUMENTS. A copy of the Borrower's articles of incorporation.

5.3 INSURANCE. Evidence of insurance coverage, as required in the "Covenants"
section of this Agreement.

5.4 GUARANTY. A continuing guaranty signed by Technology Solutions Company (the
"Guarantor").

5.5 PAYMENT OF FEES. Payment of all accrued and unpaid expenses incurred by the
Bank as required by the paragraph entitled "Expenses".

5.6 GOOD STANDING. Certificates of good standing for the Borrower and the
Guarantor from their state of formation and from any other state in which they
are required to qualify to conduct their business.

5.7 OTHER ITEMS. Any other items that the Bank reasonably requires.

6. REPRESENTATIONS AND WARRANTIES

When the Borrower signs this Agreement, and until the Bank is repaid in full,
the Borrower makes the following representations and warranties. Each request
for an extension of credit constitutes a renewed representation.

6.1 ORGANIZATION OF BORROWER. The Borrower is a corporation duly formed and
existing under the laws of the state where organized.

6.2 AUTHORIZATION. This Agreement, and any instrument or agreement required
hereunder, are within the Borrower's powers, have been duly authorized, and do
not conflict with any of its organizational papers.

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6.3 ENFORCEABLE AGREEMENT. This Agreement is a legal, valid and binding
agreement of the Borrower, enforceable against the Borrower in accordance with
its terms, and any instrument or agreement required hereunder, when executed and
delivered, will be similarly legal, valid, binding and enforceable.

6.4 GOOD STANDING. In each state in which the Borrower does business, it is
properly licensed, in good standing, and, where required, in compliance with
fictitious name statutes.

6.5 NO CONFLICTS. This Agreement does not conflict with any law, agreement, or
obligation by which the Borrower is bound.

6.6 FINANCIAL INFORMATION. All financial and other information that has been or
will be supplied to the Bank, including the Borrower's financial statement dated
as of September 30, 1999, and the guarantor's financial statement dated as of
September 30, 1999, is:

         (a) sufficiently complete to give the Bank accurate knowledge of the
Borrower's (and any guarantor's) financial condition, including all material
contingent liabilities.

         (b) in compliance with all government regulations that apply.

Since the date of the financial statement specified above, there has been no
material adverse change in the assets or the financial condition of the
Borrower.

6.7 LAWSUITS. There is no lawsuit, tax claim or other dispute pending or
threatened against the Borrower, which, if lost, would impair the Borrower's
financial condition or ability to repay the loan, except as have been disclosed
in writing to the Bank.

6.8 PERMITS, FRANCHISES. The Borrower possesses all permits, memberships,
franchises, contracts and licenses required and all trademark rights, trade name
rights, patent rights and fictitious name rights necessary to enable it to
conduct the business in which it is now engaged.

6.9 OTHER OBLIGATIONS. The Borrower is not in default an any obligation for
borrowed money, any purchase money obligation or any other material lease,
commitment, contract, instrument or obligation.

6.10 INCOME TAXES. The Borrower has filed all tax returns required to be filed
and has paid, or made adequate provisions for the payment of, all taxes due and
payable pursuant to such returns and pursuant to any assessments made against it
or any of its property. No tax liens have been filed and no material claims are
being asserted with respect to any such taxes. The reserves on the books of the
Borrower in respect of taxes are adequate. The Borrower is not aware of any
proposed assessment or adjustment for additional taxes (or any basis for any
such assessment) which might be material to the Borrower.

6.11 NO EVENT OF DEFAULT. There is no event which is, or with notice or lapse of
time or both would be, a default under this Agreement.

6.12 INSURANCE. The Borrower has obtained, and maintained in effect, the
insurance coverage required in the "Covenants" section of this Agreement.

6.13 ERISA PLANS.

         (a) Each Plan (other than a multiemployer plan) is in compliance in all
material respects with the applicable provisions of ERISA, the Code and other
federal or state law. Each Plan has received a favorable determination letter
from the IRS and to the best knowledge of the Borrower, nothing has occurred
which would cause the loss of such qualification. The Borrower has fulfilled its
obligations, if any, under the minimum funding standards of ERISA and the Code
with respect to each Plan, and has not incurred any liability with respect to
any Plan under Title IV of ERISA.

         (b) There are no claims, lawsuits or actions (including by any
governmental authority), and there has been no prohibited transaction or
violation of the fiduciary responsibility rules, with respect to any Plan which
has resulted or could reasonably be expected to result in a material adverse
effect.

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(c) With respect to any Plan subject to Title IV of ERISA:

              (i) No reportable event has occurred under Section 4043(c) of
         ERISA for which the PBGC requires 30 day notice.

              (ii) No action by the Borrower or any ERISA Affiliate to terminate
         or withdraw from any Plan has been taken and no notice of intent to
         terminate a Plan has been filed under Section 4041 of ERISA.

              (iii) No termination proceeding has been commenced with respect to
         a Plan under Section 4042 of ERISA, and no event has occurred or
         condition exists which might constitute grounds for the commencement of
         such a proceeding.

         (d) The following terms have the meanings indicated for purposes of
this Agreement:

              (i) "Code" means the Internal Revenue Code of 1986, as amended
         from time to time.

              (ii) "ERISA" means the Employee Retirement Income Security Act of
         1974, as amended from time to time.

              (iii) "ERISA Affiliate" means any trade or business (whether or
         not incorporated) under common control with the Borrower within the
         meaning of Section 414(b) or (c) of the Code.

              (iv) "PBGC" means the Pension Benefit Guaranty Corporation.

              (v) "Plan" means a pension, profit-sharing, or stock bonus plan
         intended to qualify under Section 401(a) of the Code, maintained or
         contributed to by the Borrower or any ERISA Affiliate, including any
         multiemployer plan within the meaning of Section 4001(a)(3) of ERISA.

6.14 YEAR 2000 COMPLIANCE. The Borrower has conducted a comprehensive review and
assessment of the Borrower's computer applications and made inquiry of the
Borrower's key suppliers, vendors and customers with respect to the "year 2000
problem" (that is, the inability of computers, as well as embedded microchips in
non-computing devices, to be able to properly perform date-sensitive functions
after December 31, 1999) and, based on that review and inquiry, the Borrower
does not believe the year 2000 problem will result in a material adverse change
in the Borrower's business condition (financial or otherwise), operations,
properties or prospects, or ability to repay the credit.

7. COVENANTS

The Borrower agrees, so long as credit is available under this Agreement and
until the Bank is repaid in full:

7.1 USE OF PROCEEDS. To use the proceeds of the credit only for general
corporate purposes and issuing letters of credit (up to the L/C Sublimit).

7.2 FINANCIAL INFORMATION. To provide the following financial information and
statements in form and content acceptable to the Bank, and such additional
information as requested by the Bank from time to time:

         (a) Within 90 days of the Borrower's fiscal year end, the Borrower's
annual financial statements. These financial statements must be audited by a
Certified Public Accountant acceptable to the Bank. The statements shall be
prepared on a consolidated basis.

         (b) Within 45 days of the period's end, the Borrower's quarterly
financial statements. These financial statements may be Borrower prepared. The
statements shall be prepared on a consolidated basis.

         (c) Within the period(s) provided in (a) and (b) above, a compliance
certificate of the Borrower signed by an authorized financial officer of the
Borrower setting forth (1) the information and computations (in sufficient
detail) to establish that the Borrower is in compliance with all financial
covenants at the end of the period

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covered by the financial statements then being furnished and (ii) whether there
existed as of the date of such financial statements and whether there exists as
of the date of the certificate, any default under this Agreement and, if any
such default exists, specifying the nature thereof and the action the Borrower
is taking and proposes to take with respect thereto.

7.3 TANGIBLE NET WORTH. To maintain on a consolidated basis tangible net worth
equal to at least the greater of the following:

         (a) Seventy Million Dollars ($70,000,000); or

         (b) 75% of closing Tangible Net Worth measured quarterly.

         "Tangible Net Worth" means the gross book value of the Borrower's
assets (excluding goodwill, patents, trademarks, trade names, organization
expense, treasury stock, unamortized debt discount and expense, capitalized or
deferred research and development costs, deferred marketing expenses, deferred
receivables, and other like intangibles, and monies due from affiliates,
officers, directors, employees, or shareholders, of the Borrower) plus
liabilities subordinated to the Bank in a manner acceptable to the Bank (using
the Bank's standard form) less total liabilities, including but not limited to
accrued and deferred income taxes, and any reserves against assets.

7.4 OTHER DEBTS. Not to have outstanding or incur any direct or contingent
liabilities or lease obligations (other than those to the Bank), or become
liable for the liabilities of others without the Bank's written consent.
This does not prohibit:

         (a) Acquiring goods, supplies, or merchandise on normal trade credit.

         (b) Endorsing negotiable instruments received in the usual course of
business.

7.5 OTHER LIENS. Not to create, assume, or allow any security interest or lien
(including judicial liens) on property the Borrower now or later owns, except:

         (a) Mortgages, deeds of trust and security agreements in favor of the
Bank.

         (b) Liens for taxes not yet due.

7.6 LEASES. Not to permit the aggregate payments due in any fiscal year under
all leases (including capital and operating leases for real or personal
property) to exceed Ten Million Dollars ($10,000,000).

7.7 LOANS AND INVESTMENTS. Not to make any extensions of credit, or make any
investments in, or make any capital contributions or other transfers of assets
to, any individual or entity, except the following:

         (a) extensions of credit in the nature of accounts receivable or notes
receivable arising from the sale or lease of goods or services in the ordinary
course of business.

         (b) investments in any of the following:

                 (i)   U.S. treasury bills and other obligations of the federal
                       government;

                 (ii)  stock of its subsidiaries.

         (c) investments in venture capital funds, with others, created to
invest in companies in loyalty technology, provided, however, such investment
capital must come from the proceeds of a secondary public offering.

7.8 NOTICES TO BANK. To promptly notify the Bank in writing of:

         (a) any lawsuit over Ten Million Dollars ($10,000,000) against the
Borrower.

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         (b) any substantial dispute between the Borrower and any government
authority.

         (c) any event of default under this Agreement, or any event which, with
notice or lapse of time or both, would constitute an event of default.

         (d) any material adverse change in the Borrower's business condition
(financial or otherwise), operations, properties or prospects, or ability to
repay the credit.

         (e) any change in the Borrower's name, legal structure, place of
business, or chief executive office if the Borrower has more than one place of
business.

         (f) any actual contingent liabilities of the Borrower, and any such
contingent liabilities which are reasonably foreseeable, where such liabilities
are in excess of Five Million Dollars ($5,000,000) in the aggregate.

7.9 BOOKS AND RECORDS. To maintain adequate books and records,

7.10 AUDITS. To allow the Bank and its agents to inspect the Borrower's
properties and examine, audit and make copies of books and records at any
reasonable time. If any of the Borrower's properties, books or records are in
the possession of a third party, the Borrower authorizes that third party to
permit the Bank or its agents to have access to perform inspections or audits
and to respond to the Bank's requests for information concerning such
properties, books and records.

7.11 COMPLIANCE WITH LAWS. To comply with the laws (including any fictitious
name statute), regulations, and orders of any government body with authority
over the Borrower's business.

7.12 PRESERVATION OF RIGHTS. To maintain and preserve all rights, privileges,
and franchises the Borrower now has.

7.13 MAINTENANCE OF PROPERTIES. To make any repairs, renewals, or replacements
to keep the Borrower's properties in good working condition.

7.14 PERFECTION OF LIENS. To help the Bank perfect and protect its security
interests and liens, and reimburse it for related costs it incurs to protect its
security interests and liens.

7.15 COOPERATION. To take any action reasonably requested by the Bank to carry
out the intent of this Agreement.

7.16 INSURANCE.

         (a) GENERAL BUSINESS INSURANCE. To maintain insurance as is usual for
the business it is in.

         (b) EVIDENCE OF INSURANCE. Upon the request of the Bank, to deliver to
the Bank a copy of each insurance policy, or, if permitted by the Bank, a
certificate of insurance listing all insurance in force.

7.17 ADDITIONAL NEGATIVE COVENANTS. Not to, without the Bank's written consent:

         (a) engage in any business activities substantially different from the
Borrower's present business.

         (b) liquidate or dissolve the Borrower's business.

         (c) enter into any consolidation, merger, pool, joint venture,
syndicate, or other combination, or become a partner in a partnership, a member
of a joint venture, or a member of a limited liability company.

         (d) sell, assign, lease, transfer or otherwise dispose of any assets
for less than fair market value, or enter into any agreement to do so.

         (e) enter into any sale and leaseback agreement covering any of its
fixed or capital assets.

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         (f) acquire or purchase a business or its assets.

         (g) voluntarily suspend its business for more than 7 days in any 30 day
period.

7.18 BANK AS PRINCIPAL DEPOSITORY. To maintain the Bank as its principal
depository bank, including for the maintenance of business, cash management,
operating and administrative deposit accounts.

7.19 ERISA PLANS. With respect to a Plan subject to Title IV of ERISA, to give
prompt written notice to the Bank of:

         (a) The occurrence of any reportable event under Section 4043(c) of
ERISA for which the PBGC requires 30 day notice.

         (b) Any action by the Borrower or any ERISA Affiliate to terminate or
withdraw from a Plan or the filing of any notice of intent to terminate under
Section 4041 of ERISA.

         (c) The commencement of any proceeding with respect to a Plan under
Section 4042 of ERISA.

8. DEFAULT

If any of the following events occurs, the Bank may do one or more of the
following: declare the Borrower in default, stop making any additional credit
available to the Borrower, and require the Borrower to repay its entire debt
immediately and without prior notice. If an event of default occurs under the
paragraph entitled "Bankruptcy" below, with respect to the Borrower, then the
entire debt outstanding under this Agreement will automatically be due
immediately.

8.1 FAILURE TO PAY. The Borrower fails to make a payment under this Agreement
when due.

8.2 FALSE INFORMATION. The Borrower has given the Bank false or misleading
information or representations.

8.3 BANKRUPTCY. The Borrower files a bankruptcy petition, a bankruptcy petition
is filed against the Borrower, or the Borrower makes a general assignment for
the benefit of creditors.

8.4 RECEIVERS; TERMINATION. A receiver or similar official is appointed for the
Borrower's business, or the business is terminated, or any guarantor is
liquidated or dissolved.

8.5 LAWSUITS. Any lawsuit or lawsuits are filed on behalf of one or more trade
creditors against the Borrower in an aggregate amount of Ten Million Dollars
($10,000,000) or more in excess of any insurance coverage.

8.8 JUDGMENTS. Any judgments or arbitration awards are entered against the
Borrower, or the Borrower enters into any settlement agreements with respect to
any litigation or arbitration, in an aggregate amount of Ten Million Dollars
($10,000,000) or more in excess of any insurance coverage.

8.7 GOVERNMENT ACTION. Any government authority takes action that the Bank
believes materially adversely affects the Borrower's financial condition or
ability to repay.

8.8 MATERIAL ADVERSE CHANGE. A material adverse change occurs in the Borrower's
business condition (financial or otherwise), operations, properties or
prospects, or ability to repay the credit.

8.9 CROSS-DEFAULT. Any default occurs under any agreement in connection with any
credit the Borrower or any of the Borrower's related entities or affiliates has
obtained from anyone else or which the Borrower or any of the Borrower's related
entities or affiliates has guaranteed if the default consists of failing to make
a payment when due or gives the other lender the right to accelerate the
obligation.

8.10 DEFAULT UNDER RELATED DOCUMENTS. Any guaranty, subordination agreement,
security agreement, mortgage, deed of trust, or other document required by this
Agreement is violated or no longer in effect.

                                      -10-

<PAGE>   11
8.11 OTHER BANK AGREEMENTS. The Borrower fails to meet the conditions of, or
fails to perform any obligation under any other agreement the Borrower has with
the Bank or any affiliate of the Bank, or demand is made by the Bank or any
affiliate of the Bank on any obligation owing to the Bank or such affiliate
under any other agreement the Borrower has with the Bank or any affiliate of the
Bank.

8.12 ERISA PLANS. The occurrence of any one or more of the following events with
respect to a Plan subject to Title IV of ERISA, provided such event or events
could reasonably be expected, in the judgment of the Bank, to subject the
Borrower to any tax, penalty or liability (or any combination of the foregoing)
which, in the aggregate, could have a material adverse effect on the financial
condition of the Borrower:

         (a) A reportable event shall occur under Section 4043(c) of ERISA with
respect to a Plan.

         (b) Any Plan termination (or commencement of proceedings to terminate a
Plan) or the full or partial withdrawal from a Plan by the Borrower or any ERISA
Affiliate.

8.13 OTHER BREACH UNDER AGREEMENT. The Borrower fails to meet the conditions of,
or fails to perform any obligation under, any term of this Agreement not
specifically referred to in this Article. This includes any failure or
anticipated failure by the Borrower to comply with any financial covenants set
forth in this Agreement, whether such failure is evidenced by financial
statements delivered to the Bank or is otherwise known to the Borrower or the
Bank.

9. ENFORCING THIS AGREEMENT; MISCELLANEOUS

9.1 GAAP. Except as otherwise stated in this Agreement, all financial
information provided to the Bank and all financial covenants will be made under
generally accepted accounting principles, consistently applied.

9.2 ILLINOIS LAW. THIS AGREEMENT IS GOVERNED BY THE INTERNAL LAWS OF THE STATE
OF ILLINOIS.

9.3 SUCCESSORS AND ASSIGNS. This Agreement is binding on the Borrower's and the
Bank's successors and assignees. The Borrower agrees that it may not assign this
Agreement without the Bank's prior consent. The Bank may sell participations in
or assign this loan, and may exchange financial information about the Borrower
with actual or potential participants or assignees; provided that such actual or
potential participants or assignees agree to treat all financial information
exchanged as confidential.

9.4 SEVERABILITY; WAIVERS. If any part of this Agreement is not enforceable, the
rest of the Agreement may be enforced. The Bank retains all rights, even if it
makes a loan after default. If the Bank waives a default, it may enforce a later
default. Any consent or waiver under this Agreement must be in writing.

9.5 ADMINISTRATION COSTS. The Borrower will pay the Bank for all reasonable
costs incurred by the Bank in connection with administering this Agreement.

9.6 ATTORNEYS' FEES. The Borrower shall reimburse the Bank for any reasonable
costs and attorneys' fees incurred by the Bank in connection with the
enforcement or preservation of any rights or remedies under this Agreement and
any other documents executed in connection with this Agreement, and in
connection with any amendment, waiver, "workout" or restructuring under this
Agreement. In the event of a lawsuit or arbitration proceeding, the prevailing
party is entitled to recover costs and reasonable attorneys' fees incurred in
connection with the lawsuit or arbitration proceeding, as determined by the
court or arbitrator. In the event that any case is commenced by or against the
Borrower under the Bankruptcy Code (Title 11, United States Code) or any similar
or successor statute, the Bank is entitled to recover costs and reasonable
attorneys' fees incurred by the Bank related to the preservation, protection, or
enforcement of any rights of the Bank in such a case. As used in this paragraph,
"attorneys' fees" includes the allocated costs of the Bank's in-house counsel.

9.7 ONE AGREEMENT. This Agreement and any related security or other agreements
required by this Agreement, collectively;

                                      -11-

<PAGE>   12

         (a) represent the sum of the understandings and agreements between the
Bank and the Borrower concerning this credit; and

         (b) replace any prior oral or written agreements between the Bank and
the Borrower concerning this credit; and

         (c) are intended by the Bank and the Borrower as the final, complete
and exclusive statement of the terms agreed to by them.

In the event of any conflict between this Agreement and any other agreements
required by this Agreement, this Agreement will prevail.

9.8 INDEMNIFICATION. The Borrower will indemnify and hold the Bank harmless from
any loss, liability, damages, judgments, and costs of any kind relating to or
arising directly or indirectly out of (a) this Agreement or any document
required hereunder, (b) any credit extended or committed by the Bank to the
Borrower hereunder, and (c) any litigation or proceeding related to or arising
out of this Agreement, any such document, or any such credit. This indemnity
includes but is not limited to attorneys' fees (including the allocated cost of
in-house counsel). This indemnity extends to the Bank, its parent, subsidiaries
and all of their directors, officers, employees, agents, successors, attorneys,
and assigns. This indemnity will survive repayment of the Borrower's obligations
to the Bank. All sums due to the Bank hereunder shall be obligations of the
Borrower, due and payable immediately without demand.

9.9 NOTICES. All notices required under this Agreement will be in writing and
will be transmitted by personal delivery, first class mail, overnight courier,
or facsimile to the addresses or facsimile numbers on the signature page of this
Agreement, or to such other addresses or facsimile numbers as the Bank and the
Borrower may specify from time to time in writing.

9.10 HEADINGS. Article and paragraph headings are for reference only and do not
affect the interpretation or meaning of any provisions of this Agreement.

9.11 COUNTERPARTS. This Agreement may be executed in as many counterparts as
necessary or convenient, and by the different parties on separate counterparts
each of which, when so executed, will be deemed an original but all such
counterparts will constitute but one and the same agreement.

9.12 CONSENT TO JURISDICTION. To induce the Bank to accept this Agreement, the
Borrower irrevocably agrees that, subject to the Bank's sole and absolute
election, ALL ACTIONS OR PROCEEDINGS IN ANY WAY ARISING OUT OF OR RELATED TO
THIS AGREEMENT WILL BE LITIGATED IN COURTS HAVING SITUS IN CHICAGO, ILLINOIS.
THE BORROWER HEREBY CONSENTS AND SUBMITS TO THE JURISDICTION OF ANY COURT
LOCATED WITHIN CHICAGO, ILLINOIS, WAIVES PERSONAL SERVICE OF PROCESS UPON THE
BORROWER, AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED
MAIL DIRECTED TO THE BORROWER AT THE ADDRESS STATED ON THE SIGNATURE PAGE HEREOF
AND SERVICE SO MADE WILL BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT.

9.13 WAIVER OF JURY TRIAL. THE BORROWER AND THE BANK EACH WAIVES ANY RIGHT TO A
TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS (a)
UNDER THIS AGREEMENT OR ANY RELATED AGREEMENT OR UNDER ANY AMENDMENT,
INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE
DELIVERED IN CONNECTION WITH THIS AGREEMENT OR (b) ARISING FROM ANY BANKING
RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY
SUCH ACTION OR PROCEEDING WILL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.
THE BORROWER AGREES THAT IT WILL NOT ASSERT ANY CLAIM AGAINST THE BANK OR ANY
OTHER PERSON INDEMNIFIED UNDER THIS AGREEMENT ON ANY THEORY OF LIABILITY FOR
SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES.

                                      -12-

<PAGE>   13

This Agreement is executed as of the date stated at the top of the first page.

BANK OF AMERICA, N.A.                     eLOYALTY CORPORATION

By:                                       By:  Timothy J. Cunningham
   ----------------------------              ----------------------------
Title:                                    Title:
      -------------------------                 -------------------------

Address and facsimile number              Address and facsimile number
where notices to the Bank are             where notices to the Borrower
to be sent:                               are to be sent:

231 South LaSalle Street                  205 North Michigan Avenue
Chicago, Illinois 60697                   Chicago, Illinois 60601
Attention: Upper MW Strategies II         Attention: Timothy Cunningham

FAX: (312) 974-2109                       FAX: (312) 228-4501

                                      -13-<PAGE>   1
                                                                   EXHIBIT 10(p)

                         TERMINATION BENEFITS AGREEMENT

This Termination Benefits Agreement ("Agreement") is made and entered into as of
December 15, 1999, by and between National City Bancshares, Inc., an Indiana
corporation (hereinafter referred to as the "Corporation") and James E. Adams
(hereinafter referred to as "Employee").

                               W I T N E S S E T H

WHEREAS, Employee is an at-will employee of the Corporation and has been
appointed an executive officer of the Corporation; and

WHEREAS, the Corporation believes that Employee will make valuable contributions
to the productivity and profitability of the Corporation; and

WHEREAS, the Corporation desires to encourage Employee to continue to make such
contributions and not to seek or accept employment elsewhere; and

WHEREAS, the Corporation, therefore, desires to assure Employee of certain
benefits in case of any termination or significant redefinition of the terms of
his employment with the Corporation in connection with to any Change in Control
of the Corporation;

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants
herein contained and the mutual benefits herein provided, the Corporation and
Employee hereby agree as follows:

1. The term of this Agreement shall be from the date hereof through December 31,
2001; provided, however, that such term shall be automatically extended for an
additional year on December 31, 1999, and on December 31 of each year thereafter
unless either party hereto gives written notice to the other party not to so
extend prior to November 30 of the year for which notice is given, in which case
no further automatic extension shall occur and the term of this Agreement shall
end on December 31 two (2) years subsequent to the date of the latest preceding
automatic extension. Notwithstanding the foregoing, if a Change in Control of
the Corporation (as defined in Section 2 below) shall occur prior to the
expiration of the original term or any extensions of the term of this Agreement,
then the term of this Agreement shall automatically become a term of two (2)
years commencing on the date of any such Change in Control.

2. As used in this Agreement, "Change in Control" of the Corporation means:

(A) The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended
(the "Exchange Act") (a "Person") of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act as in effect from time to time) of
twenty-five percent (25%) or more of either (i) the then outstanding shares of
common stock of the Corporation or (ii) the combined voting power of the then
outstanding voting securities of the Corporation entitled to vote generally in
the election of directors; provided, however, that the following acquisitions
shall not constitute an acquisition of control: (i) any acquisition directly
from the Corporation (excluding an acquisition by virtue of the exercise of a
conversion privilege), (ii) any acquisition by the Corporation, (iii) any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Corporation or any corporation controlled by the Corporation,
or (iv) any acquisition by any corporation pursuant to a reorganization, merger
or consolidation, if, following such reorganization, merger or consolidation,
the conditions described in clauses (i), (ii) and (iii) of subsection (C) of
this Section 2 are satisfied;

<PAGE>   2

(B) Individuals who, as of the date hereof, constitute the Board of Directors of
the Corporation (the "Incumbent Board") cease for any reason to constitute at
least a majority of the Board of Directors of the Corporation (the "Board");
provided, however, that any individual becoming a director subsequent to the
date hereof whose election, or nomination for election by the Corporation's
shareholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of either an actual or threatened election contest (as such terms are
used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or
other actual or threatened solicitation of proxies or consents by or on behalf
of a Person other than the Board; or

(C) Approval by the shareholders of the Corporation of a reorganization, merger
or consolidation, in each case, unless, following such reorganization, merger or
consolidation, (i) more than sixty percent (60%) of, respectively, the then
outstanding shares of common stock of the corporation resulting from such
reorganization, merger or consolidation and the combined voting power of the
then outstanding voting securities of such corporation entitled to vote
generally in the election of directors is then beneficially owned, directly or
indirectly, by all or substantially all of the individuals and entities who were
the beneficial owners, respectively, of the outstanding Corporation common stock
and outstanding Corporation voting securities immediately prior to such
reorganization, merger or consolidation in substantially the same proportions as
their ownership, immediately prior to such reorganization, merger or
consolidation, of the outstanding Corporation stock and outstanding Corporation
voting securities, as the case may be, (ii) no Person (excluding the
Corporation, any employee benefit plan or related trust of the Corporation or
such corporation resulting from such reorganization, merger or consolidation and
any Person beneficially owning, immediately prior to such reorganization, merger
or consolidation, directly or indirectly, twenty-five percent (25%) or more of
the outstanding Corporation common stock or outstanding voting securities, as
the case may be) beneficially owns, directly or indirectly, twenty-five percent
(25%) or more of, respectively, the then outstanding shares of common stock of
the corporation resulting from such reorganization, merger or consolidation or
the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors and (iii) at
least a majority of the members of the board of directors of the corporation
resulting from such reorganization, merger or consolidation were members of the
Incumbent Board at the time of the execution of the initial agreement providing
for such reorganization, merger or consolidation; or

(D) Approval by the shareholders of the Corporation of (i) a complete
liquidation or dissolution of the Corporation or (ii) the sale or other
disposition of all or substantially all of the assets of the Corporation, other
than to a corporation with respect to which following such sale or other
disposition (a) more than sixty percent (60%) of, respectively, the then
outstanding shares of common stock of such corporation and the combined voting
power of the then outstanding voting securities of such corporation entitled to
vote generally in the election of directors is then beneficially owned, directly
or indirectly, by all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the outstanding Corporation common
stock and outstanding Corporation voting securities immediately prior to such
sale or other disposition in substantially the same proportion as their
ownership, immediately prior to such sale or other disposition, of the
outstanding Corporation common stock and outstanding Corporation voting
securities, as the case may be, (b) no Person (excluding the Corporation and any
employee benefit plan or related trust of the Corporation or such corporation
and any Person beneficially owning, immediately prior to such sale or other
disposition, directly or indirectly, twenty-five percent (25%) or more of the
outstanding Corporation common stock or outstanding Corporation voting
securities, as the case may be) beneficially owns, directly or indirectly,
twenty-five percent (25%) or more of, respectively, the then outstanding shares
of common stock of such corporation and the combined voting power of the then
outstanding voting securities of such corporation entitled to vote generally in
the election of directors and (c) at least a majority of the members of the
board of directors of such corporation were members of the Incumbent Board at
the time of the execution of the initial agreement or action of the Board
providing for such sale or other disposition of assets of the Corporation.

3. The Corporation shall provide Employee with the benefits set forth in
Section 6 of this Agreement upon any termination of Employee's employment by the
Corporation following a Change in Control during the term of this Agreement for
any reason except the following:

<PAGE>   3

(A) Termination by reason of Employee's death.

(B) Termination by reason of Employee's "disability." For purposes hereof,
"disability" shall be defined as Employee's inability by reason of illness or
other physical or mental disability to perform the duties required by his
employment for any consecutive One Hundred Eighty (180) day period, provided
that notice of any termination by the Corporation because of Employee's
"disability" shall have been given to Employee prior to the resumption by him of
the performance of such duties.

(C) Termination upon Employee reaching his normal retirement date, which for
purposes of this Agreement shall be deemed to be the end of the month during
which employee reaches sixty-five (65) years of age.

(D) Termination for "cause." As used in this Agreement, the term "cause" means
fraud, dishonesty, theft of corporate assets, or other gross misconduct by
Employee. Notwithstanding the foregoing, Employee shall not be deemed to have
been terminated for cause unless and until there shall have been delivered to
him a copy of a resolution duly adopted by the affirmative vote of not less than
a majority of the entire membership of the Corporation's Board at a meeting
called and held for the purpose (after reasonable notice to him and an
opportunity for him, together with his counsel, to be heard before such Board),
finding that, in the good faith opinion of such Board, Employee was guilty of
conduct constituting "cause" and specifying the particulars thereof in detail.

4. The Corporation shall also provide Employee with the benefits set forth in
Section 6 of this Agreement upon any termination of Employee's employment with
the Corporation at Employee's option if any one of the following events occurs
within six (6) months prior to or within two (2) years following a Change in
Control:

(A) Without Employee's express written consent, the assignment of Employee to
any duties which, in Employee's reasonable judgment, are materially inconsistent
with his positions, duties, responsibilities or status with the Corporation
immediately prior to the earlier of termination of employment or the Change in
Control or a substantial reduction of his duties or responsibilities which, in
Employee's reasonable opinion, does not represent a promotion from his position,
duties or responsibilities immediately prior to the earlier of termination of
employment or the Change in Control.

(B) A reduction by the Corporation in Employee's salary from the level of such
salary immediately prior to the earlier of termination of employment or the
Change in Control or the Corporation's failure to increase (within twelve (12)
months of Employee's last increase in base salary) Employee's base salary after
a Change in Control in an amount which at least equals, on a percentage basis,
the average percentage increase in base salary for all executive and senior
officers of the Corporation effected in the preceding twelve (12) months.

(C) The failure by the Corporation to continue in effect any incentive, bonus or
other compensation plan in which Employee participates, including but not
limited to the Corporation's stock option plans, unless an equitable arrangement
(embodied in an ongoing substitute or alternative plan), with which Employee has
consented, has been made with respect to such plan in connection with the Change
in Control, or the failure by the Corporation to continue Employee's
participation therein, or any action by the Corporation which would directly or
indirectly materially reduce Employee's participation therein.

(D) The failure by the Corporation to continue to provide Employee with benefits
substantially similar to those enjoyed by Employee or to which Employee was
entitled under any of the Corporation's principal pension, profit sharing, life
insurance, medical, dental, health and accident, or disability plans in which
Employee was participating immediately prior to the earlier of the termination
of employment or the Change in Control, the taking of any action by the
Corporation which would directly or indirectly materially reduce any of such
benefits or deprive Employee of any material fringe benefit enjoyed by Employee
or to which Employee was entitled immediately prior to the earlier of the
termination of employment or the Change in Control, or the failure by the
Corporation to provide Employee with the number of paid vacation and sick leave
days to which Employee is entitled on the basis of years of service or position
with the Corporation in accordance with the Corporation's normal vacation policy
in effect on the date hereof.

(E) The Corporation's requiring Employee to be based anywhere other than the
metropolitan area where the Corporation office at which he was based immediately
prior to the earlier of the termination of employment or the

<PAGE>   4
Change in Control was located, except for required travel on the Corporation's
business in accordance with the Corporation's past management practices.

(F) Any failure of the Corporation to obtain the assumption of the obligation to
perform this Agreement by any successor as contemplated in Section 10 hereof.

(G) Any failure by the Corporation or its shareholders, as the case may be, to
reappoint or reelect Employee to a corporate office held by him immediately
prior to the earlier of the termination of employment or the Change in Control
or his removal from any such office including any seat held at such time on the
Corporation's Board of Directors.

(H) The effectiveness of a resignation, tendered at any time, either before or
after a Change in Control and regardless of whether formally characterized as
voluntary or otherwise, by Employee of any corporate office held by him
immediately prior to the Change in Control or of any seat held at such time on
the Corporation's Board of Directors, at the request of the Corporation or at
the request of the person obtaining control of the Corporation in such Change in
Control.

(I) Any purported termination of the Employee's employment which is not effected
pursuant to a Notice of Termination satisfying the requirements of Section 5
hereof (and, if applicable, Section 3(D) hereof); and for purposes of this
Agreement, no such purported termination shall be effective.

(J) Any request by the Corporation that Employee participate in an unlawful act
or take any action constituting a breach of Employee's professional standard of
conduct.

(K) Any breach by the Corporation of any of the provisions of this Agreement or
any failure by the Corporation to carry out any of its obligations hereunder.

Notwithstanding anything in this Section 4 to the contrary, Employee's right to
terminate Employee's employment pursuant to this Section 4 shall not be affected
by Employee's incapacity due to physical or mental illness.

5. Any termination of Employee's employment with the Corporation as contemplated
by Section 3 hereof (except subsection 3(A) and 3(C)) or by Employee as
contemplated by Section 4 hereof shall be communicated by written "Notice of
Termination" to the other party hereto. Any "Notice of Termination" given by
Employee pursuant to Section 4 or given by the Corporation in connection with a
termination as to which the Corporation believes it is not obligated to provide
Employee with benefits set forth in Section 6 hereof shall indicate the specific
provisions of this Agreement relied upon and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for such
termination.

6. Subject to the conditions and exceptions set forth in Section 3 and Section 4
hereof, the following benefits, less any amounts required to be withheld
therefrom under any applicable federal, state or local income tax, other tax, or
social security laws or similar statutes, shall be paid to Employee upon any
termination of his employment within six (6) months before or within two (2)
years after any Change in Control:

(A) Within thirty (30) days following such a termination or, if later, such a
Change in Control, Employee shall be paid, at his then-effective salary, for
services performed through the date of his termination. In addition, any earned
but unpaid amount of any bonus or incentive payment (which, for purposes of this
Agreement, shall mean that amount computed in a fashion consistent with the
manner in which Employee's bonus or incentive plan for the year preceding the
year of termination was computed, if Employee received a bonus or incentive
payment during such preceding year in accordance with a plan or program of the
Corporation, or, if not, then the total bonus or incentive payment received by
the Employee during such preceding year, in either case prorated through the
date of termination) shall be paid to Employee within thirty (30) days following
the termination of his employment or, if later, such a Change in Control.

(B) Within thirty (30) days following such a termination, Employee shall be paid
a lump sum payment of an amount equal to two and nine-tenths (2.9) times
Employee's "Base Amount." For purposes hereof, Base Amount is defined as
Employee's average includable salary, bonus, incentive payments and similar
compensation paid by the

<PAGE>   5

Corporation for the five (5) most recent taxable years ending before the date on
which the Change in Control occurs (or such shorter period of time that the
Employee has been employed by the Corporation). The definition, interpretation
and calculation of the dollar amount of Base Amount shall be in a manner
consistent with and as required by the provisions of Section 280G of the
Internal Revenue Code of 1986, as amended ("Code"), and the regulations and
rulings of the Internal Revenue Service promulgated thereunder. The payments to
the Employee under this Section 6(B) shall be reduced by the full amount that
such payment, when added to all other payments or benefits of any kind to the
Employee by reason of the Change in Control, constitutes an "excess parachute
payment" within the meaning of Section 280G of the Code.

(C) Employee acknowledges and agrees that payment in accordance with subsections
6(A), 6(B) and 6(C) shall be deemed to constitute a full settlement and
discharge of any and all obligations of the Corporation to Employee arising out
of his employment with the Corporation and the termination thereof, except for
any vested rights Employee may then have under any insurance, pension,
supplemental pension, thrift, employee stock ownership, or stock option plans
sponsored or made available by the Corporation.

<PAGE>   6

7. The Corporation is aware that upon the occurrence of a Change in Control the
Board of Directors or a shareholder of the Corporation may then cause or attempt
to cause the Corporation to refuse to comply with its obligations under this
Agreement, or may cause or attempt to cause the Corporation to institute, or may
institute, litigation seeking to have this Agreement declared unenforceable, or
may take or attempt to take other action to deny Employee the benefits intended
under this Agreement. In these circumstances, the purpose of this Agreement
could be frustrated. It is the intent of the Corporation that Employee not be
required to incur the expenses associated with the enforcement of his rights
under this Agreement by litigation or other legal action, nor be bound to
negotiate any settlement of his rights hereunder, because the cost and expense
of such legal action or settlement would substantially detract from the benefits
intended to be extended to Employee hereunder. Accordingly, if following a
Change in Control it should appear to Employee that the Corporation has failed
to comply with any of its obligations under this Agreement or in the event that
the Corporation or any other person takes any action to declare this Agreement
void or unenforceable, or institutes any litigation or other legal action
designed to deny, diminish or to recover from Employee the benefits entitled to
be provided to the Employee hereunder, and that Employee has complied with all
of his obligations under this Agreement, the Corporation irrevocably authorizes
Employee from time to time to retain counsel of his choice, at the expense of
the Corporation as provided in this Section 7, to represent Employee in
connection with the initiation or defense of any litigation or other legal
action, whether such action is by or against the Corporation or any director,
officer, shareholder, or other person affiliated with the Corporation, in any
jurisdiction. Notwithstanding any existing or prior attorney-client relationship
between the Corporation and such counsel, the Corporation irrevocably consents
to Employee entering into an attorney-client relationship with such counsel, and
in that connection the Corporation and Employee agree that a confidential
relationship shall exist between Employee and such counsel. The reasonable fees
and expenses of counsel selected from time to time by Employee as hereinabove
provided shall be paid or reimbursed to Employee by the Corporation on a
regular, periodic basis upon presentation by Employee of a statement or
statements prepared by such counsel in accordance with its customary practices,
up to a maximum aggregate amount of One Hundred Thousand Dollars ($100,000). Any
legal expenses incurred by the Corporation by reason of any dispute between the
parties as to enforceability of or the terms contained in this Agreement as
provided by this Section 7, notwithstanding the outcome of any such dispute,
shall be the sole responsibility of the Corporation, and the Corporation shall
not take any action to seek reimbursement from Employee for such expenses.
Notwithstanding any limitation contained in this Section 7 to the contrary,
Employee shall be entitled to payment or reimbursement of legal expenses in
excess of One Hundred Thousand Dollars ($100,000) if the expenses were incurred
as a result of a dispute under this Agreement in which Employee obtains a final
judgment in his favor from a court of competent jurisdiction or his claim is
settled by the Corporation prior to the rendering of a judgment by such a court.

8. Employee is not required to mitigate the amount of benefit payments to be
made by the Corporation pursuant to this Agreement by seeking other employment
or otherwise, nor shall the amount of any benefit payments provided for in this
Agreement be reduced by any compensation earned by Employee as a result of
employment by another employer or which might have been earned by Employee had
Employee sought such employment, after the date of termination of his employment
with the Corporation or otherwise.

9. In order to induce the Corporation to enter into this Agreement, Employee
hereby agrees as follows:

(A) He agrees that his employment with the Corporation is terminable at will by
the Corporation and that this Agreement does not alter that relationship in any
way.

(B) He will keep confidential and not improperly divulge for the benefit of any
other party any of the Corporation's confidential information and business
secrets including, but not limited to, confidential information and business
secrets relating to such matters as the Corporation's finances and operations.
All of the Corporation's confidential information and business secrets shall be
the sole and exclusive property of the Corporation.

<PAGE>   7

(C) For a period of two years after Employee's employment with the Corporation
ceases, Employee shall not either on his own account or for any other person,
firm or company solicit or endeavor to cause any employee of the Corporation to
leave his employment or to induce or attempt to induce any such employee to
breach any employment agreement with the Corporation.

In the event of a breach or threatened breach by Employee of the provisions of
this Section 9, the Corporation shall be entitled to an injunction restraining
Employee from committing or continuing such breach. Nothing herein contained
shall be construed as prohibiting the Corporation from pursuing any other
remedies available to it for such breach or threatened breach including the
recovery of damages from Employee. The covenants of this Section 9 shall run not
only in favor of the Corporation and its successors and assigns, but also in
favor of its subsidiaries and their respective successors and assigns and shall
survive the termination of this Agreement.

10. The Corporation shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Corporation, by agreement in form and substance
satisfactory to Employee, to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Corporation would
be required to perform it if no such succession had taken place. Failure of the
Corporation to obtain such agreement prior to the effectiveness of any such
succession shall be a breach of this Agreement and shall entitle Employee to
compensation from the Corporation in the same amount and on the same terms as
Employee would be entitled hereunder if he were to terminate his employment
pursuant to Section 4 hereof, except that for purposes of implementing the
foregoing, the date on which succession becomes effective shall be deemed the
date of termination of Employee's employment with the Corporation. As used in
this Agreement, "Corporation" shall mean the Corporation as hereinbefore defined
and any successor to the business or assets of it as aforesaid which executes
and delivers the agreement provided for in this Section 10 or which otherwise
becomes bound by all of the terms and provisions of this Agreement by operation
of law.

11. Should Employee die while any amounts are payable to him hereunder, this
Agreement shall inure to the benefit of and be enforceable by Employee's
executors, administrators, heirs, distributees, devisees and legatees and all
amounts payable hereunder shall be paid in accordance with the terms of this
Agreement to Employee's devisee, legatee or other designee or if there be no
such designee, to his estate.

12. For purposes of this Agreement, notices and all other communications
provided for herein shall be in writing and shall be deemed to have been given
when delivered or mailed by United States registered or certified mail, return
receipt requested, postage prepaid, addressed as follows:

If to Employee:

------------------------------

------------------------------

------------------------------

------------------------------
If to the Corporation:

National City Bancshares, Inc.
227 Main Street
P. O. Box 868
Evansville, Indiana  47705-0868
Attention: Chief Executive Officer

or to such other address as any party may have furnished to the other party in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

<PAGE>   8

13. The validity, interpretation, and performance of this Agreement shall be
governed by the laws of the State of Indiana. The parties agree that all legal
disputes regarding this Agreement will be resolved in Evansville, Indiana, and
irrevocably consent to service of process in such City for such purpose.

14. No provision of this Agreement may be modified, waived or discharged unless
such waiver, modification or discharge is agreed to in writing signed by
Employee and the Corporation. No waiver by any party hereto at any time of any
breach by any other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or any
prior or subsequent time. No agreements or representation, oral or otherwise,
express or implied, with respect to the subject matter hereof have been made by
any party which are not set forth expressly in this Agreement.

15. The invalidity or unenforceability of any provisions of this Agreement shall
not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect.

16. This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original but all of which together will constitute one and
the same Agreement.

17. This Agreement is personal in nature and neither of the parties hereto
shall, without the consent of the other, assign or transfer this Agreement or
any rights or obligations hereunder, except as provided in Section 10 and
Section 11 above. Without limiting the foregoing, Employee's right to receive
payments hereunder shall not be assignable or transferable, whether by pledge,
creation of a security interest or otherwise, other than a transfer by his will
or by the laws of descent and distribution as set forth in Section 11 hereof,
and in the event of any attempted assignment or transfer contrary to this
Section 17, the Corporation shall have no liability to pay any amount so
attempted to be assigned or transferred.

Any benefits payable under this Agreement shall be paid solely from the general
assets of the Corporation. Neither Employee nor Employee's beneficiary shall
have interest in any specific assets of the Corporation under the terms of this
Agreement. This Agreement shall not be considered to create an escrow account,
trust fund or other funding arrangement of any kind or a fiduciary relationship
between Employee and the Corporation.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and
delivered as of the day and year first above set forth.

                                            NATIONAL CITY BANCSHARES, INC.
                                            ("Corporation")

                                        By: /s/ Michael T. Vea
                                            ------------------------------------
                                            Michael T. Vea
                                            Chairman of the Board and Chief
                                            Executive Officer

                                            /s/ James E. Adams
                                            ------------------------------------
                                            James E. Adams
                                            "Employee"

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