Document:

<Page>

                                                                   Exhibit 10.31

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

                            STOCK PURCHASE AGREEMENT

                           dated as of October 1, 2001

                                  by and among

                         INTERACTIVE INTELLIGENCE, INC.

                                       and

                            Donald E. Brown, M.D. and
                                ROBERT A. COMPTON

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

<Page>

                            STOCK PURCHASE AGREEMENT

                  This STOCK PURCHASE AGREEMENT, dated as of October 1, 2001
(this "Agreement"), is by and among Donald E. Brown, M.D. ("Brown"), Robert A.
Compton ("Compton"; and together with Brown the "Sellers"), and Interactive
Intelligence, Inc., an Indiana corporation (the "Purchaser").

                  WHEREAS, the Sellers own all of the issued and outstanding
shares of capital stock of Interactive Portal, Inc., an Indiana corporation (the
"Company"), that are not owned by the Purchaser (the "Shares"). Brown desires to
sell all of his 3,643,423 shares to the Purchaser and Compton desires to sell
all of his 513,157 shares to the Purchaser, subject to the terms and conditions
set forth in this Agreement; and

                  WHEREAS, the Purchaser wishes to purchase the Shares on the
terms and subject to the conditions set forth in this Agreement;

                  NOW, THEREFORE, in consideration of the promises and the
mutual covenants contained in this Agreement, the parties agree as follows:

                                    ARTICLE I

                               PURCHASE OF SHARES

                  SECTION 1.01. PURCHASE AND SALE OF SHARES. Subject to the
terms and conditions hereof and on the basis of the representations and
warranties set forth herein, the Sellers agree to sell to the Purchaser, and the
Purchaser agrees to purchase from the Sellers, at the Closing (as hereinafter
defined), the Shares in consideration for the receipt by Sellers of the
aggregate number of shares of Purchaser's Common Stock, par value $0.01 per
share (the "Purchaser Common Stock") determined by dividing (x) the amount of
the Company's net book value (I.E., the Company's total assets less total
liabilities, each as set forth on the Closing Date Balance Sheet (as hereinafter
defined)), multiplied by 0.81, by (y) the closing price per share for Purchaser
Common Stock as reported on the Nasdaq National Market on the last trading day
that immediately precedes the Closing Date (as hereinafter defined).

                  The Sellers shall receive the following percentages of the
total number of shares of Purchaser Common Stock that is to be issued to Sellers
in accordance with the last sentence of the previous paragraph (each rounded to
the closest whole number of shares):

                     Brown            87.65%
                     Compton          12.35%

The foregoing percentages represent each Seller's pro rata ownership percentage
of the Shares.

<Page>

                  SECTION 1.02. CLOSING. The closing of the purchase and sale of
the Shares (the "Closing") shall take place at the offices of Purchaser, at
10:00 a.m., Indianapolis time, on October 1, 2001, or at such other location,
date and time as may be agreed on by the Purchaser and the Sellers (such date
and time being referred to herein as the "Closing Date"). At the Closing, each
Seller shall deliver to the Purchaser stock certificates endorsed in blank,
collectively representing the Shares. The calculation set forth in Section 1.01
to determine the number of shares of Purchaser Common Stock that are to be
received by each Seller shall be finalized within three (3) business days
following the Closing Date, at which time each Seller shall be notified of such
final amounts and of his right to receive a certificate evidencing his shares.

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES
                                   OF SELLERS

                  Sellers, jointly and severally, represent and warrant to the
Purchaser that, except as set forth in the Disclosure Schedule delivered
concurrently herewith by Sellers to Purchaser (the "Disclosure Schedule"):

                  SECTION 2.01. ORGANIZATION, QUALIFICATIONS AND POWER.

                  (a) The Company is a corporation duly organized and validly
         existing under the laws of the State of Indiana and is duly qualified
         as a foreign corporation and in good standing in each jurisdiction in
         which the nature of the business conducted by it or the character of
         the properties owned or leased by it makes such qualification necessary
         and in which failure to so qualify would have a materially adverse
         impact on its business.

                  (b) Sellers have previously delivered to the Purchaser copies
         of the Company's Articles of Incorporation and By-Laws, and such copies
         are true, correct and complete and contain all amendments through the
         Closing Date.

                  (c) Each Seller has all requisite power and authority to
         execute and deliver this Agreement and each other agreement, instrument
         or document to be executed and delivered by each Seller pursuant hereto
         (collectively, the "Seller Ancillary Documents"), to perform his
         obligations hereunder and thereunder and to consummate the transactions
         contemplated hereby and thereby. This Agreement has been duly executed
         and delivered by each Seller and constitutes the valid and binding
         obligation of each Seller, enforceable against each Seller in
         accordance with its terms. On its execution and delivery by a Seller,
         each Seller Ancillary Document will constitute the valid and binding
         obligation of the applicable Seller, enforceable against such Seller in
         accordance with its terms.

                                      -2-

<Page>

                  SECTION 2.02. CAPITALIZATION OF THE COMPANY; INVESTMENTS.

                  (a) The authorized capital stock of the Company consists of
         20,000,000 shares of common stock, of which 5,131,580 shares are issued
         and outstanding and owned beneficially and of record as follows:

                             Brown            3,643,423
                             Compton            513,157
                             Purchaser          975,000

         Except as set forth in Section 2.02 of the Disclosure Schedule, no
         shares of capital stock of the Company are reserved for future issuance
         pursuant to outstanding stock options, warrants, convertible securities
         or other rights or for any other purpose as of the Closing Date. Each
         of the issued and outstanding Shares has been duly authorized and
         validly issued and is fully paid and nonassessable.

                  (b) Sellers, collectively, are the true and lawful owners of,
         and own all right, title and interest in and to, all of the Shares,
         free and clear of all liens, charges, security interests, restrictions,
         claims, and encumbrances ("Liens"). On the sale of the Shares to
         Purchaser pursuant to this Agreement, all right, title and interest in
         and to all of the Shares, free and clear of all Liens, will pass to
         Purchaser on the Closing Date. No person has any right to assert any
         Lien in any amount against any of the Shares.

                  (c) Except as set forth in Section 2.02 of the Disclosure
         Schedule, there are no options, warrants or other rights (including
         registration rights), agreements, arrangements, contracts or other
         commitments of any character to which any person is a party relating to
         the issued or unissued capital stock or other equity interests of the
         Company to grant, issue or sell any shares of the capital stock or
         other equity interests of the Company by sale, lease, license or
         otherwise. There are no obligations, contingent or otherwise, of any
         person to (x) repurchase, redeem or otherwise acquire any shares of the
         capital stock or other equity interests of the Company, or (y) provide
         funds to, or make any investment in (in the form of a loan, capital
         contribution or otherwise), or provide any guarantee with respect to
         the obligations of the Company. The Company does not own, and has not
         agreed to purchase or otherwise acquire, the capital stock or other
         equity interests of, or any interest convertible into or exchangeable
         or exercisable for such capital stock or such equity interests, of any
         corporation, limited liability company, partnership, joint venture or
         other entity. There are no agreements, arrangements, contracts or other
         commitments of any character (contingent or otherwise) pursuant to
         which any person is or may become entitled to receive any payment based
         on the revenues or earnings, or calculated in accordance therewith, of
         the Company. There are no voting trusts, proxies or other agreements,
         arrangements, contracts or other commitments by which any person is
         bound with respect to the voting of any shares of capital stock or
         other equity interests of the Company.

                                      -3-

<Page>

                  SECTION 2.03. FINANCIAL STATEMENTS; LIABILITIES. The Company
has furnished to the Purchaser the unaudited balance sheet of the Company (the
"Balance Sheet") as of June 30, 2001 (the "Balance Sheet Date") and the related
unaudited statements of income and cash flows of the Company for the six-month
period ended on the Balance Sheet Date, as well as the unaudited balance sheet
and the related unaudited statements of income and cash flows of the Company for
the calendar year ending December 31, 2000 (the "Financial Information"). The
Financial Information (i) is in accordance with the books and records of the
Company, (ii) presents fairly the financial condition of the Company at the
respective dates indicated therein and the results of operations and cash flows
for the periods specified, and (iii) with the exception of a lack of footnote
disclosures, has been prepared in accordance with generally accepted accounting
principles consistently applied. The Balance Sheet reflects all liabilities of
the Company as of the Balance Sheet Date that are required, under generally
accepted accounting principles, to be reflected on a balance sheet. As of the
Balance Sheet Date, the Company had no contingent or unasserted liabilities
which are not disclosed in the Balance Sheet.

                  The Company has also furnished to the Purchaser an unaudited
balance sheet of the Company as of September 30 (the "Closing Date Balance
Sheet"), which has been prepared and presented on a basis consistent in all
respects (including the principles, practices and methods of accounting)
employed in the preparation of the Balance Sheet. The Closing Date Balance Sheet
reflects all liabilities of the Company as of the Closing Date that are
required, under generally accepted accounting principles, to be reflected on a
balance sheet. As of the Closing Date, the Company has no contingent or
unasserted liabilities which are not disclosed in the Closing Date Balance
Sheet. All reserves reflected on the Closing Date Balance Sheet are adequate and
consistent with the reserves customarily maintained by the Company with respect
to the matters covered thereby in the ordinary course of business. Except as set
forth on the Closing Date Balance Sheet or in Section 2.03 of the Disclosure
Schedule, the Company has no liabilities of any kind, whether accrued or
unaccrued, contractual, contingent or otherwise.

                  SECTION 2.04. EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE.
Since the Balance Sheet Date, the Company has conducted its business only in the
ordinary course and consistent with its past practices and has not:

                  (a) incurred any debts, obligations or liabilities, absolute,
         accrued or contingent and whether due or to become due, except (i)
         current liabilities incurred in the ordinary course of business which
         (individually or in the aggregate) will not materially and adversely
         affect the business or properties of the Company and (ii) transactions
         and obligations contemplated by this Agreement;

                  (b) paid any obligation or liability other than, or discharged
         or satisfied any liens or encumbrances other than those securing,
         current liabilities, in each case in the ordinary course of business;

                  (c) declared or made any payment or distribution to its
         shareholders, or purchased or redeemed any shares of its capital stock,
         or obligated itself to do so;

                                      -4-

<Page>
                  (d) mortgaged, pledged or subjected to any Lien any of its
         assets, tangible or intangible, except in the ordinary course of
         business;

                  (e) sold, transferred or leased any of its assets, except in
         the ordinary course of business;

                  (f) suffered any physical damage, destruction or loss (whether
         or not covered by insurance) materially and adversely affecting the
         properties, business or prospects of the Company;

                  (g) made any loans to any officers, directors or employees;

                  (h) entered into any transaction not in the ordinary course of
         business; or

                  (i) agreed to do any of the foregoing, other than pursuant to
         this Agreement.

                  SECTION 2.05. LITIGATION; COMPLIANCE.

                  (a) There is no claim, action, suit, proceeding, arbitration,
         investigation, hearing or notice of hearing pending or, to the
         knowledge of either Seller, threatened, by or before any court or
         governmental or administrative agency or authority or private
         arbitration tribunal, by, against or involving the Company or its
         properties, assets, business or personnel, nor, to the knowledge of
         either Seller, are there any facts that could give rise to any such
         claim, action, suit, proceeding, arbitration, investigation or hearing.

                  (b) The Company has all necessary permits, licenses and other
         authorizations required to conduct its business as conducted, and the
         Company has been operating its business pursuant to and in compliance
         with the terms of all such permits, licenses and other authorizations.

                  (c) The Company is not in violation of, and there is no basis
         for any claim that the Company is in violation of, any federal, state,
         local or foreign law, ordinance, rule, regulation, order or decree
         currently in effect or, to the knowledge of the Sellers, proposed to be
         adopted. The Company has not received notice from any governmental
         authority alleging noncompliance with, or any affirmative obligation to
         correct, either immediately or over a period of time, any state of
         facts under any law, ordinance, rule, regulation, order or decree, and,
         to the knowledge of the Sellers, there is no basis for the allegation
         of any such noncompliance.

                  SECTION 2.06. PROPRIETARY INFORMATION OF THIRD PARTIES. No
third party has claimed or has reason to claim that any person employed by or
affiliated with the Company has (a) violated or may be violating any of the
terms or conditions of his employment, non-competition

                                      -5-

<Page>

or nondisclosure agreement with such third party, (b) disclosed or may be
disclosing or utilized or may be utilizing any trade secret or proprietary
information or documentation of such third party or (c) interfered or may be
interfering in the employment relationship between such third party and any of
its present or former employees. No third party has requested information from
the Company which suggests that such a claim might be contemplated.

                  SECTION 2.07. INTELLECTUAL PROPERTY. The Company owns or
possesses adequate licenses or other valid rights to use, free and clear of all
liens, claims and restrictions, without the obligation to make any payment to
others (or the obligation to grant rights to others in exchange), all of the
Intellectual Property (as defined herein) used in the conduct of its business,
without infringing on or otherwise acting adversely to the right or claimed
right of any person under or with respect to the Intellectual Property. Section
2.07 of the Disclosure Schedule sets forth a true and correct list of all of the
Intellectual Property of the Company. The conduct of the business of the Company
as currently being conducted does not infringe, conflict with, misappropriate or
otherwise misuse any rights to Intellectual Property of others. The validity of
and title to the Intellectual Property owned by or licensed to the Company has
not been questioned in any litigation to which the Company is a party, nor is
any such litigation threatened. Neither Seller knows of any unauthorized use,
infringement, misappropriation or other misuse by others of any Intellectual
Property owned by or licensed to the Company. "Intellectual Property" means (i)
all inventions (whether patentable or unpatentable and whether or not reduced to
practice), all improvements thereto, and all patents, patent applications and
patent disclosures, together with all reissuances, continuations,
continuations-in-part, revisions, extensions and reexaminations thereof, (ii)
all trademarks, service marks, trade dress, logos, slogans, trade names and
corporate names, together with all translations, adaptations, derivations and
combinations thereof, and including all goodwill associated therewith, and all
applications, registrations and renewals in connection therewith, (iii) all
copyrightable works, all copyrights and all applications, registrations and
renewals in connection therewith, (iv) all trade secrets and confidential
business information (including ideas, research, know-how, technical data,
customer lists, and business and marketing plans and proposals), (v) all
computer software (including data and related documentation), (vi) all other
proprietary rights and (vii) all copies and tangible embodiments thereof (in
whatever form or medium).

                  SECTION 2.08. TITLE TO PROPERTIES. The Company has good, clear
and marketable title to its properties and assets, real or personal, tangible or
intangible, and has good title to all leasehold interests, and all such
properties and assets are free and clear of mortgages, leases, pledges, security
interests, liens, charges, claims, restrictions and other encumbrances
(including without limitation, easements and licenses), except for (i) liens for
current taxes not yet due and payable, (ii) minor imperfections of title, if
any, not material in nature or amount and not materially detracting from the
value or impairing the use of the property subject thereto or impairing the
operations or proposed operations of the Company and (iii) those which are shown
on the Closing Date Balance Sheet.

                  SECTION 2.09. LEASEHOLD INTERESTS. Each lease or agreement, as
each may be amended as of the date hereof, to which the Company is a party under
which it is a lessee of any property, real or personal, is a valid and
subsisting agreement, duly authorized and entered into,

                                      -6-

<Page>

without any default of the Company thereunder and, to the knowledge of the
Sellers, without any default thereunder of any other party thereto. No event has
occurred and is continuing which, with due notice or lapse of time or both,
would constitute a default or event of default by the Company under any such
lease or agreement or, to the knowledge of the Sellers, by any other party
thereto. The Company's possession of such property has not been disturbed and no
claim has been asserted against the Company adverse to its rights in such
leasehold interests.

                  SECTION 2.10. CONTRACTS. Each agreement, lease, license,
contract, note, mortgage, indenture, arrangement or other obligation
(collectively, "Contracts") to which the Company is a party is valid, binding
and enforceable in accordance with its terms and there is not any existing
default or event of default, or any event which, with or without notice or lapse
of time or both, would constitute a default under any of such Contracts by the
Company or, to the knowledge of Sellers, by any other party thereto. Section
2.10 of the Disclosure Schedule lists all Contracts to which the Company is a
party that are not terminable by the Company upon not more than 30 days' notice
without any liability to the Company. Sellers have delivered to Purchaser true
and complete copies of all such listed Contracts.

                  SECTION 2.11. TAXES. The Company has filed all tax returns,
federal, state, county and local, required to be filed by it, and such returns
are true, correct and complete in all material respects. The Company has paid
all taxes shown to be due by such returns as well as all other taxes,
assessments and governmental charges which have become due or payable (except
those contested by it in good faith that are listed in the Disclosure Schedule),
including, without limitation, all taxes that the Company is obligated to
withhold from amounts owing to employees, creditors and third parties. The
Company has established adequate reserves (as reflected on the Closing Date
Balance Sheet) for all taxes accrued but not yet payable, and there are no
material unresolved questions or claims concerning the Company's tax liability.
None of the Company's federal income tax returns and none of its state income or
franchise tax or sales or use tax returns has ever been audited by governmental
authorities. The Company has never had any tax deficiency proposed or assessed
against it with respect to the Company's federal, state, county or local taxes
and has not executed any waiver of any statute of limitations on the assessment
or collection of any tax or governmental charge. No deficiency assessment or
proposed adjustment is pending or, to the knowledge of the Sellers, threatened.
There is no tax lien, whether imposed by any federal, state, county or local
taxing authority, outstanding against the assets, properties or business of the
Company. The Company is not now, and never has been, an "S corporation" within
the meaning of Section 1362 of the Internal Revenue Code of 1986, as amended
(the "Code").

                  SECTION 2.12. ASSUMPTIONS, GUARANTIES, ETC. OF INDEBTEDNESS OF
OTHER PERSONS. The Company has not assumed, guaranteed, endorsed or otherwise
become directly or contingently liable on any indebtedness of any other person
(including, without limitation, liability by way of agreement, contingent or
otherwise, to purchase, to provide funds for payment, to supply funds to or
otherwise invest in, the debtor, or otherwise to assure the creditor against
loss).

                                      -7-

<Page>

                  SECTION 2.13. TRANSACTIONS WITH AFFILIATES. The Company has no
obligations to its officers, directors, shareholders or employees other than
compensation payments for services rendered, reimbursement for reasonable
expenses and other standard employee benefits provided in the ordinary course of
business. None of the officers, directors or shareholders of the Company or any
members of their immediate families are indebted to the Company.

                  SECTION 2.14. BENEFIT PLANS.

                  (a) As used in this Agreement:

                           (i) "Employees" means the employees or former
                  employees of the Company.

                           (ii) "Employee Plans" means any pension, retirement,
                  profit-sharing, deferred compensation, stock purchase, stock
                  option, bonus or other incentive plan, any program,
                  arrangement, agreement or understanding relating to or
                  otherwise providing medical, dental or other health benefits
                  to or for the benefit of Employees, any life insurance,
                  accident, disability, workers' compensation, severance or
                  separation plan, or any other employee benefit plan,
                  including, without limitation, any Plan, and, with respect to
                  all of the above, to which the Company (or any ERISA Affiliate
                  (as hereinafter defined) on behalf of the Company) contributes
                  or is a party or is bound or under which it may have liability
                  and under which Employees are eligible to participate or
                  derive a benefit.

                           (iii) "ERISA" means the Employee Retirement Income
                  Security Act of 1974, as amended from time to time, or any
                  successor statute.

                           (iv) "Plan" means any employee benefit plan (as
                  defined in Section 3(3) of ERISA) maintained, contributed to
                  or required to be contributed to by the Company, or any ERISA
                  Affiliate on behalf of the Employees.

                  (b) Section 2.14 of the Disclosure Schedule sets forth a true,
         correct and complete list of all of the Employee Plans. Sellers have
         delivered to Purchaser true and complete copies of all of the Employee
         Plans, each as amended and in full force and effect. Sellers have also
         delivered to Purchaser true and complete copies of the summary plan
         descriptions, trust agreements, annual reports, communications to
         Employees, insurance contracts, investment management agreements,
         administration agreements, actuarial reports, financial statements, and
         determination letters of each Employee Plan. Except as set forth in
         Section 2.14 of the Disclosure Schedule, each such Employee Plan covers
         only current employees who are employed by the Company (or former
         employees or beneficiaries with respect to service with the Company).
         None of the Plans that are welfare plans, within the meaning of Section
         3(1) of ERISA, provides for any retiree benefits, and the Company has
         no obligation to provide health care coverage for any former Employees
         or dependents, relatives or beneficiaries of former Employees, other
         than continuation coverage mandated under Section 4980B of the Code or
         any

                                      -8-

<Page>

         comparable law.

                  (c) Neither the Company nor any entity which is under common
         control with the Company within the meaning of Section 4001(b) of ERISA
         (each, an "ERISA Affiliate"), contributes to, is obligated to
         contribute to, has ever contributed to, or has ever been obligated to
         contribute to, and none of the Employees is a participant in, any
         Employee Plan subject to Title IV of ERISA.

                  (d) Neither the Company nor any ERISA Affiliate contributes
         to, is obligated to contribute to, has ever contributed to, or has ever
         been obligated to contribute to, and none of the Employees is a
         participant in, any multiemployer plan, within the meaning of Section
         4001(a)(3) or Section 3(37) of ERISA.

                  (e) Each Employee Plan intended to be qualified under Section
         401(a) of the Code has received a favorable determination letter as to
         such qualification, has been amended to meet the requirements of such
         section applicable since such determination or remains within the
         remedial amendment period for such amendments, and has been operated in
         compliance with the requirements of Section 401(a) of the Code. Each
         Employee Plan subject to or intended to meet the requirements of
         Section 401(k), Section 125 or Section 4980B of the Code is in
         compliance with all requirements of such Sections as are applicable to
         such Plan.

                  (f) All contributions and other payments required to be made
         to any Employee Plan have been made, or reserves adequate for such
         contributions or other payments have been set aside therefor on the
         Closing Date Balance Sheet. The Company has paid all liabilities for
         insurance premiums for benefits provided on or prior to the Closing
         Date under the insured Employee Plans and has paid all amounts due
         prior to the Closing Date as contributions under each Employee Plan
         that is a pension plan within the meaning of Section 3(2) of ERISA.
         There are no outstanding liabilities under any Employee Plan other than
         liabilities for benefits to be paid in the ordinary course to
         participants in such Plan and their beneficiaries. The Company has
         complied in all respects with all obligations required to be performed
         under all Employee Plans.

                  (g) No event has occurred, and there exists no condition or
         set of circumstances in connection with any Employee Plan, under which
         the Company could be subject to any risk of liability under ERISA
         Sections 409, 502(i), or 502(l), ERISA Title IV, or Section 4975 of the
         Code.

                  (h) There are no pending or, to the knowledge of Sellers or
         the Company, threatened claims by or on behalf of any Employee Plan, by
         any person covered thereby or otherwise, which allege violations of law
         which could reasonably be expected to result in liability of any
         Employee Plan or any fiduciary thereof, nor is there any basis for such
         a claim. Other than routine claims for benefits, there is no pending or
         threatened assessment, complaint, proceeding, claim, audit or
         investigation of any kind in any court or governmental agency with
         respect to any Employee Plan.

                                      -9-

<Page>

                  (i) Each Employee Plan may be amended or terminated by the
         Company on or at any time prior to or after the Closing Date and the
         Company has made no commitments that would limit its or the Purchaser's
         right to terminate or amend any Employee Plan at any time without the
         consent of any person or entity and without incurring material
         liability to the Sellers, the Company or the Purchaser.

                  (j) The Company is not currently, and at no time has the
         Company been, a member of a controlled group, as defined in Section
         412(n)(6)(B) of the Code, with any other enterprise.

                  SECTION 2.15. LABOR MATTERS.

                  (a) Except as set forth in Section 2.15 of the Disclosure
         Schedule, there are (1) no employment contracts or agreements for a
         specified duration, agreements providing for severance or other
         benefits in the event of termination, or agreements establishing a
         standard of just cause for dismissal between the Company and any of the
         current or former Employees; and (2) no agreements with any
         professional employer organizations or other payroll, human resources
         or employment agencies or organizations relating to the employment of
         the Employees or under which the Company could have any liability or
         obligation. The Company has never been a party to or bound by any
         collective bargaining or similar agreement with any labor organization.

                  (b) Sellers have delivered to Purchaser a true and complete
         copy of the Company's severance policies applicable to the Employees.
         Except as set forth in such severance policies, on termination of the
         employment of any of the Employees prior to the Closing Date, in
         conjunction with the matters contemplated by this Agreement or
         otherwise, neither the Company nor Purchaser will be liable, directly
         or indirectly, to any of the terminated Employees for severance pay or
         other severance benefits, whether by policy, benefit plan, practice or
         contract.

                  (c) The Company has never undergone an event that would be
         considered a "plant closing" or "mass layoff" under the WARN Act or
         trigger application of any similar state or local law, and the
         termination of all Company employees in conjunction with this
         transaction will not be considered such an event or trigger such
         application.

                  SECTION 2.16. ENVIRONMENTAL PROTECTION. The Company has not
caused or allowed, or contracted with any party for, the generation, use,
transportation, treatment, storage or disposal of any Hazardous Substances (as
hereinafter defined) in connection with the operation of its business or
otherwise. The Company, the operation of its business, and any real property
that the Company leases or otherwise occupies or uses (the "Premises") are in
compliance with all applicable Environmental Laws (as hereinafter defined) and
orders or directives of any governmental authorities having jurisdiction under
such Environmental Laws, including, without limitation, any Environmental Laws
or orders or directives with respect to any use, cleanup or remediation of
Hazardous Substances. The Company has not received any

                                      -10-

<Page>

citation, directive, letter or other communication, written or oral, or any
notice of any proceeding, claim or lawsuit, from any person arising out of the
ownership or occupation of the Premises, or the conduct of its operations, and
neither of the Sellers is aware of any basis therefor. The Company has not
caused or allowed a release, or a threat of release, of any Hazardous Substance
onto, at or near the Premises, except as permitted or allowed by Environmental
Laws, and, to the knowledge of the Sellers, neither the Premises nor any
property at or near the Premises has ever been subject to a release, or a threat
of release, of any Hazardous Substance, except as permitted or allowed by
Environmental Laws. For the purposes of this Agreement, the term "Environmental
Laws" shall mean any federal, state or local law or ordinance or regulation
pertaining to the protection of human health, safety or the environment,
including, without limitation, the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. Sections 9601, ET SEQ., the Emergency
Planning and Community Right-to-Know Act, 42 U.S.C. Sections 11001, ET SEQ., the
Resource Conservation and Recovery Act, 42 U.S.C. Sections 6901, ET SEQ., the
Clean Air Act, 42 U.S.C. Sections 7401, ET SEQ., the Clean Water Act, 33 U.S.C.
Sections 1251, ET SEQ., and the Toxic Substances Control Act, 15 U.S.C. Sections
2601, ET SEQ.; and the term "Hazardous Substances" shall include oil and
petroleum products, asbestos, polychlorinated biphenyls, urea formaldehyde and
any other materials classified as hazardous or toxic under any Environmental
Laws.

                  SECTION 2.17. BOOKS AND RECORDS. The books, records and
accounts of the Company (a) are true and complete in all material respects, (b)
have been maintained in accordance with good business practices and in
compliance with all laws, ordinances, rules, regulations, orders and decrees
applicable to the Company's business, (c) accurately present and reflect
material transactions to which the Company is or has been a party and (d) are
accurately reflected in the Financial Information. The minute books of the
Company contain accurate records of all official meetings, and accurately
reflect all other corporate proceedings, of the shareholders and the directors
of the Company.

                  SECTION 2.18. INVESTMENT REPRESENTATIONS. Each Seller (a) is
an "accredited investor" within the meaning of Rule 501 promulgated under the
Securities Act of 1933, as amended (the "Securities Act") and was not organized
for the specific purpose of acquiring the Purchaser Common Stock; (b) is
domiciled in the State of Indiana; (c) is acquiring the Purchaser Common Stock
for his own account for the purpose of investment and not with a view to or for
sale in connection with any distribution thereof; and (d) understands that (i)
the Purchaser Common Stock has not been registered under the Securities Act by
reason of its issuance in a transaction exempt from the registration
requirements of the Securities Act, and (ii) the Purchaser Common Stock must be
held indefinitely unless a subsequent disposition thereof is registered under
the Securities Act or is exempt from such registration.

                  SECTION 2.19. DISCLOSURE. Sellers have not knowingly withheld
from the Purchaser any material facts relating to the assets, business,
operations, financial condition or prospects of the Company. No representation
or warranty in this Agreement, the Disclosure Schedule, or any Seller Ancillary
Document contains or will contain any untrue statement of a material fact or
omits or will omit to state any material fact required to be stated herein or
therein or necessary to make the statements herein or therein not misleading.

                                      -11-

<Page>

                                   ARTICLE III

                 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

                  The Purchaser hereby represents and warrants to Sellers that:

                  SECTION 3.01. AUTHORIZATION OF AGREEMENTS, ETC. The execution
and delivery by the Purchaser of this Agreement and the Purchaser Ancillary
Documents to be delivered by the Purchaser, and the performance by the Purchaser
of its obligations hereunder and thereunder, have been duly authorized by all
requisite corporate action of the Purchaser and will not violate the Articles of
Incorporation or By-Laws of the Purchaser or any provision of any agreement or
other instrument to which the Purchaser is bound.

                  SECTION 3.02. VALIDITY. This Agreement has been duly executed
and delivered by the Purchaser and constitutes the legal, valid and binding
obligation of the Purchaser, enforceable against the Purchaser in accordance
with its terms. Each Purchaser Ancillary Document to which the Purchaser is a
party, when executed and delivered in accordance with this Agreement, will
constitute the legal, valid and binding obligation of the Purchaser, enforceable
against the Purchaser in accordance with its terms. The Purchaser Common Stock
to be issued to Sellers has been duly authorized and will be validly issued,
fully paid and nonassessable.

                  SECTION 3.03. PERIODIC REPORTS. Purchaser files periodic
reports under Section 13 of the Exchange Act with the Securities and Exchange
Commission ("SEC") (such reports are collectively referred to herein as the
"Purchaser Reports"). As of their respective dates, the Purchaser Reports
previously filed with the SEC did not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they
were made, not misleading.

                                   ARTICLE IV

                                    COVENANTS

                  SECTION 4.01. FURTHER ASSURANCES. Sellers shall execute and
deliver such other instruments and take such other actions as Purchaser
reasonably may request in order to better effect the transactions contemplated
by this Agreement and to satisfy each of the conditions set forth in Section
5.01.

                  SECTION 4.02. BENEFITS. Effective as of the Closing Date,
Sellers shall cause the Company to terminate participation in and sponsorship of
all Plans, Employee Plans and all other arrangements sponsored, offered,
maintained or contributed to by the Company for the benefit of the Employees,
and shall assist Purchaser with all steps necessary or appropriate to wind down
the operations of any such plan or arrangement. Prior to the Closing Date,
Sellers

                                      -12-

<Page>

shall take all necessary steps to cause the Company to terminate the Company's
stock option plan and to cause all outstanding stock options issued under that
plan to be terminated or cancelled. In addition, Sellers also agree to assist
Purchaser in winding down the business and affairs of the Company after the
Closing, to the extent requested by Purchaser.

                  For notices, payments and benefits related to events occurring
on or prior to the Closing Date, Sellers shall be responsible for ensuring that
the insurers, professional employer organizations or other providers of health
and other employee benefits coverage (including coverage provided pursuant to
agreements with professional employer organizations or other payroll or human
resources-related entities) offered to Employees prior to the Closing Date
(whether through the Employee Plans or otherwise) provide all notices required
to be given to Employees pursuant to Section 4980B of the Code ("COBRA"), and/or
Section 402(f) of the Code ("Rollover Notice") and provide any payments or
benefits required pursuant to such laws or on account of violation of the
requirements of such laws.

                  Notwithstanding anything herein to the contrary, Sellers shall
retain responsibility for, and indemnify, defend and hold the Purchaser harmless
from, any liability for violations of any legal requirements applicable to any
Employee Plans occurring on or prior to the Closing Date, including without
limitation the plan qualification requirements of the Code, the fiduciary
responsibility rules of ERISA, applicable reporting and disclosure requirements,
the prohibited transaction rules of ERISA and the Code, the requirements of
COBRA and HIPAA, and the requirements for tax-favored treatment applicable to
any self-insured medical plan, dependent care assistance plan and Section 125
cafeteria plan. The provisions of this paragraph shall not be subject to the
limitations set forth in Section 6.03.

                  SECTION 4.03. EMPLOYMENT MATTERS. Effective no later than the
close of business on the final business day prior to the Closing Date, Sellers
shall cause the Company to terminate the employment of all Employees. In
addition, Sellers shall cause the Company, prior to the Closing Date, to
terminate any agreements with other entities with regard to the employment of
those Employees, including but not limited to agreements with any professional
employer organizations or other payroll, human resources or employment agencies
or organizations relating to the employment of the Employees or under which the
Company could have any liability or obligation. The Closing Date Balance Sheet
shall contain accruals for all payments to be made after the Closing Date to all
Employees for any wages, salaries, commissions, bonuses or other direct
compensation for any services performed for the Company up through their date of
termination from employment and any amounts required to be reimbursed to such
Employees after the Closing Date.

                                      -13-

<Page>

                                    ARTICLE V

                                   CONDITIONS

                  SECTION 5.01. CONDITIONS TO PURCHASER'S OBLIGATIONS. The
obligation of the Purchaser to purchase and pay for the Shares is subject to the
satisfaction, on or before the Closing Date, of each of the following
conditions, each of which may be waived at the option of the Purchaser:

                  (a) REPRESENTATIONS AND WARRANTIES TO BE TRUE AND CORRECT. The
         representations and warranties contained in Article II and in any
         Seller Ancillary Document shall be true, complete and correct on and as
         of the Closing Date with the same effect as though such representations
         and warranties had been made on and as of such date.

                  (b) PERFORMANCE. The Sellers shall have performed all
         obligations and agreements and complied with all covenants to be
         performed or complied with by them on or before the Closing Date
         pursuant to this Agreement or any Seller Ancillary Document.

                  (c) CLOSING CERTIFICATES. The Purchaser shall have received a
         certificate of each Seller, dated the Closing Date, in form and
         substance reasonably satisfactory to the Purchaser and its counsel,
         certifying that (i) the conditions set forth in Section 5.01(a) and
         5.01(b) have been satisfied.

                  (d) PROCEEDINGS SATISFACTORY. All actions, proceedings,
         instruments and documents required to carry out the transactions
         contemplated by this Agreement or incidental hereto, and all other
         related legal matters, shall be reasonably satisfactory to counsel to
         the Purchaser, and such counsel shall have been furnished with such
         other instruments and documents as they shall have reasonably
         requested.

                  (e) APPROVAL OF THE SPECIAL COMMITTEE AND BOARD. Purchaser
         shall have obtained the approval of the Special Committee of the Board
         of Directors, and the Board of Directors, of Purchaser to enter into
         this Agreement and the Purchaser Ancillary Documents.

                  (f) OTHER APPROVALS. All consents, authorizations and
         approvals, waivers or exemptions, and filings and registrations,
         required to be obtained from or made with any person in connection with
         the execution, delivery and performance by the Sellers of this
         Agreement and the Seller Ancillary Documents and the consummation by
         the Sellers of the transactions contemplated hereby and thereby shall
         have been obtained or made.

                                      -14-

<Page>

                  (g) ROYALTY AGREEMENTS. Each Seller shall have entered into a
         royalty agreement with the Purchaser (collectively, the "Royalty
         Agreements") for the payment of royalties on certain future sales of
         certain products of the Purchaser, upon terms and conditions that are
         satisfactory to the applicable Seller and to the Purchaser.

                  (h) REPURCHASE OF SHARES BY BROWN. Brown shall have
         repurchased all of the shares of stock of the Company that he
         previously gifted to various family members so that he holds 3,624,738
         shares immediately prior to the Closing.

                  SECTION 5.02. CONDITIONS TO OBLIGATIONS OF THE SELLERS. The
obligations of the Sellers to consummate the transactions contemplated hereby
are subject to the satisfaction, on or before the Closing Date, of each of the
following conditions, each of which may be waived at the option of the Sellers:

                  (a) REPRESENTATIONS AND WARRANTIES TO BE TRUE AND CORRECT. The
         representations and warranties contained in Article III and any
         Purchaser Ancillary Document shall be true, complete and correct on and
         as of the Closing Date with the same effect as though such
         representations and warranties had been made on and as of such date.

                  (b) PERFORMANCE. The Purchaser shall have performed all
         obligations and agreements and complied with all covenants to be
         performed or complied with by it on or before the Closing Date pursuant
         to this Agreement or any Purchaser Ancillary Document.

                  (c) ROYALTY AGREEMENT. Each Seller and the Purchaser shall
         have entered into a Royalty Agreement.

                                   ARTICLE VI

                                 INDEMNIFICATION

                  SECTION 6.01. INDEMNIFICATION BY SELLERS. Subject to Section
6.3, each Seller, jointly and severally, hereby agrees to indemnify Purchaser
and its respective affiliates, officers, directors, employees, shareholders,
agents and representatives against, and agrees to hold them harmless from, any
out-of-pocket loss, liability, claim, damage or expense (including reasonable
legal fees and expenses) (collectively, "Damages"), as incurred, for or on
account of or arising from or in connection with or otherwise with respect to:

                  (a) Any breach on the part of either Seller of any
         representation or warranty contained in this Agreement or any Seller
         Ancillary Document;

                  (b) Any breach of any covenant of either Seller contained in
         this Agreement or

                                      -15-

<Page>

         any Seller Ancillary Document;

                  (c) Any deficiency in or underpayment of any Company taxes
         attributable to any pre-Closing tax period;

                  (d) Any and all liabilities associated with any failure to
         provide COBRA coverage to any Employee who incurs a qualifying event on
         or prior to the Closing Date, and any other failure to perform their
         obligations under this Agreement or other applicable law in relation to
         any Employee Plan;

                  (e) Any and all liabilities and obligations of the Company
         arising out of the pre-Closing operation of the Company, including
         without limitation all liabilities for outstanding Company stock
         options and liabilities under Contracts not terminable on not more than
         30 days' notice without liability to the Company, except to the extent
         accrued on the Closing Date Balance Sheet; and

                  (f) Any and all reasonable costs, expenses and all other
         Damages (including any reasonably foreseeable consequential Damages)
         incurred by Purchaser in remedying any breach, misrepresentation,
         deficiency, underpayment, nonperformance or inaccuracy described above,
         including, by way of illustration and not limitation, all legal and
         accounting fees, other professional fees or expenses, and all filing
         fees and collection costs incident thereto and all such fees, costs and
         expenses incurred in connection with investigating and defending claims
         which, if successfully prosecuted, would have resulted in Damages.

                  SECTION 6.02. INDEMNIFICATION BY PURCHASER. Subject to Section
6.3, Purchaser hereby agree to indemnify Sellers and Sellers' agents and
representatives against, and agrees to hold them harmless from, any Damages, as
incurred, for or on account of or arising from or in connection with or
otherwise with respect to:

                  (a) Any breach on the part of Purchaser of any representation
         or warranty contained in this Agreement or any Purchaser Ancillary
         Document;

                  (b) Any breach of any covenant of Purchaser contained in this
         Agreement or any Purchaser Ancillary Document; and

                  (c) Any and all reasonable costs, expenses and all other
         Damages (including reasonably foreseeable consequential Damages)
         incurred by either Seller in remedying any breach, misrepresentation,
         nonperformance or inaccuracy described above, including, by way of
         illustration and not limitation, all legal and accounting fees, other
         professional fees or expenses, and all filing fees and collection costs
         incident thereto, and all such fees, costs and expenses incurred in
         connection with investigating and in defending claims which, if
         successfully prosecuted, would have resulted in Damages.

                  SECTION 6.03. LIMITATION ON INDEMNIFICATION OBLIGATIONS.
Notwithstanding the

                                      -16-

<Page>

other provisions of this Article VI,

                 (a) Sellers shall not be liable to indemnify Purchaser for its
         Damages unless Purchaser notifies Sellers in writing of its claim or
         potential claim for indemnification not later than the date which is 18
         months after the Closing Date.

                 (b) Purchaser shall not be liable to indemnify either Seller
         for his Damages unless such Seller notifies Purchaser in writing of his
         claim or potential claim for indemnification not later than the date
         which is 18 months after the Closing Date.

                  SECTION 6.04 RIGHT OF OFFSET. Purchaser shall have the right
to offset against any payments under the Royalty Agreements any amounts due from
Sellers under this Article VI.

                                   ARTICLE VI

                                  MISCELLANEOUS

                  SECTION 7.01. PARTIES IN INTEREST. All representations,
covenants and agreements contained in this Agreement by or on behalf of any of
the parties hereto shall bind and inure to the benefit of the respective
successors and assigns of the parties hereto whether so expressed or not.
Without limiting the generality of the foregoing, all representations, covenants
and agreements benefiting the Purchaser shall inure to the benefit of any and
all subsequent holders from time to time of Shares.

                  SECTION 7.02. SURVIVAL OF AGREEMENTS. All covenants,
agreements, representations and warranties of the parties made in this
Agreement, any Seller Ancillary Document or any Purchaser Ancillary Document
shall survive the execution and delivery of this Agreement, any investigation at
any time made by the Purchaser or on its behalf, the issuance, sale and delivery
of the Shares. All statements made by any party in this Agreement, any Seller
Ancillary Document or any Purchaser Ancillary Document shall be deemed to
constitute representations and warranties made by the party making such
statement.

                  SECTION 7.03. NOTICES. All notices and other communications
that are required or permitted to be given under this Agreement shall be in
writing and shall be delivered personally, mailed by certified or registered
mail, return receipt requested, sent by reputable overnight courier or sent by
confirmed telecopier, addressed as follows:

                  (a) if to Brown, at 832 Alverna Drive, Indianapolis, Indiana
         46260;

                  (b) if to Compton, at 2847 Kessler Circle West, Germantown,
         Tennessee 38139;

                                      -17-

<Page>

                  (c) if to the Purchaser, at 8909 Purdue Road, Indianapolis,
         Indiana 46268, Attention: Chief Financial Officer;

or to such other address and/or such other addressee as any of the above shall
have specified by notice hereunder. Each notice or other communication that
shall be delivered personally, mailed, sent by overnight courier or telecopied
in the manner described above shall be deemed sufficiently given, served, sent,
received or delivered for all purposes at such time as it is delivered to the
addressee (with the return receipt, the delivery receipt or the affidavit of
messenger being deemed conclusive, but not exclusive, evidence of such delivery)
or at such time as delivery is refused by the addressee upon presentation.

                  SECTION 7.04. ASSIGNMENT. Neither Seller may assign any of his
rights or obligations hereunder without the express written consent of the
Purchaser.

                  SECTION 7.05. REMEDIES. If any party to this Agreement obtains
a judgment against any party hereto by reason of any breach of this Agreement or
the failure of such other party to comply with the provisions hereof, a
reasonable attorneys' fee as fixed by the court shall be included in such
judgment. No remedy conferred upon any party to this Agreement is intended to be
exclusive of any other remedy herein or by law provided or permitted, but each
such remedy shall be cumulative or shall be in addition to every other remedy
given hereunder or now or hereafter existing at law or in equity or by statute.

                  SECTION 7.06. WAIVER. None of the terms of this Agreement
shall be deemed to have been waived by any party hereto, unless such waiver is
in writing and signed by that party. No action taken pursuant to this Agreement,
including any investigation by or on behalf of any party hereto, shall be deemed
to constitute a waiver by the party taking such action of compliance with any
representation, warranty, covenant or agreement contained herein. The waiver by
any party hereto of a breach of any provision of this Agreement shall not
operate or be construed as a waiver of any other provision of this Agreement or
of any further breach of the provision so waived or of any other provision of
this Agreement. No extension of time for the performance of any obligation or
act hereunder shall be deemed an extension of time for the performance of any
other obligation or act. The waiver by any party of any of the conditions
precedent to its obligations under this Agreement shall not preclude it from
seeking redress for breach of this Agreement.

                  SECTION 7.07. GOVERNING LAW. This Agreement shall be governed
by and construed in accordance with the laws of the State of Indiana, without
giving effect to its conflicts of law rules.

                  SECTION 7.08. ENTIRE AGREEMENT. This Agreement, including the
Disclosure Schedule, the Seller Ancillary Documents, the Purchaser Ancillary
Documents and the Royalty Agreements constitute the entire agreement of the
parties with respect to the subject matter hereof.

                                      -18-

<Page>

                  SECTION 7.09. COUNTERPARTS. This Agreement may be executed in
the original or by facsimile in any number of counterparts, each of which shall
be effective only upon delivery and thereafter shall be deemed to be an
original, and all of which shall be taken to be one and the same instrument with
the same effect as if each of the parties hereto had signed the same signature
page. Any signature page of this Agreement may be detached from any counterpart
of this Agreement without impairing the legal effect of any signature thereon
and may be attached to another counterpart of this Agreement identical in form
hereto and having attached to it one or more additional signature pages.

                  SECTION 7.10. AMENDMENTS. This Agreement may not be amended,
modified or changed in any respect without the written consent of the Company
and the approval of the Purchaser.

                  SECTION 7.11. SEVERABILITY. Whenever possible, each provision
of this Agreement shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Agreement shall be
unenforceable or invalid under applicable law, such provision shall be
ineffective only to the extent of such unenforceability or invalidity, and the
remaining provisions of this Agreement shall continue to be binding and in full
force and effect.

                  SECTION 7.12. HEADINGS. The section and other headings
contained in this Agreement are for convenience only and shall not be deemed to
limit, characterize or interpret any provision of this Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -19

<Page>

                  IN WITNESS WHEREOF, the Sellers and the Purchaser have
executed this Agreement as of the day and year first above written.

                                     /s/ Donald E. Brown
                                     ------------------------------------
                                     Donald E. Brown, M.D.

                                     /s/ Robert A. Compton
                                     ------------------------------------
                                     Robert A. Compton

                                     INTERACTIVE INTELLIGENCE, INC.

                                     By: /s/ Michael J. Tavlin
                                         --------------------------------
                                     Printed: Michael J. Tavlin
                                              ---------------------------
                                     Title: Senior VP & CEO
                                            -----------------------------

                                     -20-<Page>

                                                                   Exhibit 10.32

                                ROYALTY AGREEMENT

         THIS ROYALTY AGREEMENT ("Royalty Agreement") is made as of October 1,
2001, by and between INTERACTIVE INTELLIGENCE, INC., an Indiana corporation (the
"Company"), and Donald E. Brown, M.D. ("Brown").

                                    RECITALS

         1. Company and Brown are parties to that certain Stock Purchase
Agreement by and among Brown, Robert A. Compton ("Compton") and the Company,
dated of even date herewith (the "Purchase Agreement"), pursuant to which the
Company is purchasing all shares of stock of Interactive Portal, Inc. ("Portal")
owned by Compton and Brown.

         2. Compton and Brown are the only shareholders of Portal other than the
Company. The Company's purchase pursuant to the Purchase Agreement will make
Portal a wholly-owned subsidiary of the Company.

         3. Pursuant to the Purchase Agreement, Company has agreed to pay Brown
certain royalties on future sales of the "Service Interaction Center" and
"Communite" products (the "Products") by the Company.

                                    AGREEMENT

         In consideration of the mutual covenants and conditions set forth in
the Purchase Agreement and of the foregoing Recitals and the mutual undertakings
herein, the sufficiency of such consideration being hereby acknowledged, Company
and Brown agree as follows:

         1. The term of this Royalty Agreement shall commence on October 1, 2001
and shall continue until December 31, 2004 (the "Term").

         2. Company shall have the exclusive right to produce or have produced,
market, distribute, and/or sell the Products at Company's sole discretion.

         3. Company shall pay Brown a royalty in the amount equal to the sum of
four and thirty-eight hundredths percent (4.38%) of the gross revenues to the
Company, net of reseller discounts, from sales or licenses of the Products
during the Term of this Royalty Agreement. Sales or licenses among Company, its
affiliates and its subsidiaries shall be disregarded for purposes of computing
any royalties under this Royalty Agreement. In the event the Company sells or
licenses the Products together with other products of the Company, the portion
of the total sales price or license fee received by the Company shall be
allocated between the Products and the other products of the Company based on
their respective list prices. Royalties shall be paid in thirteen quarterly
payments on February 1, May 1, August 1 and November 1 of each year, commencing
February 1, 2002 for sales of Products during the Term of this Agreement. For
purpose of this Royalty Agreement, a "sale" or "license" shall be deemed to be
made on receipt of cash payment by the Company from a customer. Any unpaid
royalty payments which are not paid shall thereafter bear interest at the rate
of eight percent (8%) per year. All amounts due hereunder shall be payable in
United States Dollars. When the Products are sold or licensed for monies other
than

                                      1

<Page>

United States Dollars, the earned royalties will first be determined in the
foreign currency of the country in which the Products were sold or licensed and
then converted into equivalent United States Dollars. The exchange rate will be
the United States Dollar buying rate quoted in the Wall Street Journal on the
day of sale or license. Company shall be responsible for any and all taxes,
fees, or other charges imposed by the government of any country outside the
United States on the remittance of royalty income for sales or licenses
occurring in any such country.

         4. During the Term of this Royalty Agreement, Company will provide
quarterly reports to Brown within thirty (30) days of the end of each quarter
reporting sales or licenses of the Products. Each such report shall cover
Company's most recently completed calendar quarter and will show (a) the units
of each of the Products sold or licensed along with the price per unit; (b) the
royalties, in U.S. dollars, payable hereunder with respect to such sales or
licenses; (c) the method used to calculate the royalty; and (d) the exchange
rates used, if any.

         5. Company shall keep books and records in accordance with generally
accepted accounting principles accurately showing all sales, licenses and
information relating to this Royalty Agreement. Such books and records shall be
preserved for at least two (2) years following the date of termination of this
Royalty Agreement.

         6. Brown may inspect all of Company's books and records pertaining to
sales and licenses of the Products at the Company's office during normal
business hours upon giving Company reasonable notice. The fees and expenses of
Brown's representatives performing such an examination shall be borne by Brown.
However, if an error in royalties of more than five percent (5%) of the total
royalties due for any year is discovered, then the fees and expenses of these
representatives shall be borne by the Company.

         7. This Royalty Agreement shall be binding on, inure to the benefit of,
and may be enforced by, both Company and its successors and assigns, and Brown
and his successors and assigns. The rights and obligations under this Royalty
Agreement are nontransferable and nonassignable by Brown without prior written
consent of the Company, which consent shall not be unreasonably withheld. The
Company may freely transfer or assign its rights and obligations under this
Royalty Agreement.

         8. Any written notices and/or royalty payments shall be deemed duly
given and effective: (i) on the date of delivery, if delivered personally or by
courier or overnight mail; (ii) on the earlier of the fourth (4th) day after
mailing or the date of the return receipt acknowledgment, if mailed, postage
prepaid, by certified or registered mail, return receipt requested; or (iii) on
the date of transmission, if sent by facsimile or similar telegraphic
communications equipment; to such party at the following address or, as
applicable, facsimile number:

         If to Company:             Interactive Intelligence, Inc.
                                    8909 Purdue Road
                                    Indianapolis, Indiana 46268
                                    Attention:  Controller
                                    Facsimile: (317) 715-8135

                                      2

<Page>

         If to Brown:               Donald E. Brown, M.D.
                                    832 Alverna Drive
                                    Indianapolis, IN 46260
                                    Facsimile: (317) 715-8101

or to such other address as either party may specify by notice to the other.

         9. This Royalty Agreement may not be amended, supplemented, or modified
except by a written document which references this Royalty Agreement and which
is signed by both Company and Brown.

         10. If any provision of this Royalty Agreement is determined by a court
of competent jurisdiction to be invalid, all other provisions shall remain in
full force and effect.

         11. Waiver by either party of any breach of any provision of this
Royalty Agreement shall not operate or be construed as a waiver of any
subsequent or other breach.

         12. This Royalty Agreement shall be governed by and construed in
accordance with the laws of the State of Indiana applicable to agreements made
and performed in Indiana and any legal action or proceeding between Company or
Brown relating to or arising out of this Royalty Agreement shall be brought
exclusively in a federal or state court of competent jurisdiction sitting in
Marion County, Indiana.

         13. This Royalty Agreement may be executed in two or more counterparts,
each of which shall constitute an original, but all of which when taken together
shall constitute but one agreement.

         IN WITNESS WHEREOF, Company has submitted its signature through its
authorized representative, and Brown has submitted his signature in his
individual capacity.

INTERACTIVE INTELLIGENCE, INC.

By    /s/ Michael J. Tavlin                             /s/ Donald E. Brown
   ----------------------------------                -------------------------
                                                        Donald E. Brown, M.D.

Its:       Senior VP & CFO                                  "Brown"
    ----------------------------
            ("Company")

                                       3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]