Document:

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                                                                   EXHIBIT 10.16

                               AMENDMENT NO. 8 TO
                                 LOAN AGREEMENT

            This Amendment No. 8 to Loan Agreement (the "Amendment") is dated as
of the 21st day of December, 2004 and is by and between LASALLE BANK NATIONAL
ASSOCIATION ("Lender") and eLOYALTY CORPORATION, a Delaware corporation (the
"Borrower").

                                   WITNESSETH:

            WHEREAS, Lender and Borrower are parties to that certain Loan
Agreement, dated as of December 17, 2001 (as amended or otherwise modified from
time to time, the "Loan Agreement"; capitalized terms used herein without
definition shall have the meanings ascribed to such terms in the Loan
Agreement); and

            WHEREAS, the Borrower has requested that the Loan Agreement be
amended in certain respects;

            NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, each of Lender and Borrower hereby agree as follows:

            1. Amendments to Loan Agreement. In reliance on the representations
and warranties set forth in Section 2 of this Amendment and subject to the
satisfaction of the conditions precedent set forth in Section 3 of this
Amendment, the Loan Agreement is hereby amended as follows:

            1.1. The definition of Maturity Date in Section 1.1 of the Loan
Agreement is hereby deleted in its entirety and replaced with the following:

            ""Maturity Date" shall mean December 31, 2005."

            1.2. The proviso in the first sentence of Section 2.5 of the Loan
Agreement is hereby deleted in its entirety and replaced with the following:

            "; provided, however, that Bank may issue Letters of Credit with an
            expiration date on or before June 30, 2007 in an aggregate face
            amount not to exceed $1,500,000."

            2. Representations and Warranties. To induce the Lender to enter
into this Amendment, the Borrower hereby represents and warrants to the Lender
that:

            2.1. the execution, delivery and performance by the Borrower of this
Amendment and each of the other agreements, instruments and documents
contemplated

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hereby are within its corporate power, have been duly authorized by all
necessary corporate action, have received all necessary governmental approval
(if any shall be required), and do not and will not contravene or conflict with
any provision of law applicable to the Borrower, the certificate of
incorporation and by-laws of the Borrower (as amended to date), any order,
judgment or decree of any court or governmental agency, or any agreement,
instrument or document binding upon the Borrower or any of its property;

            2.2. each of the Loan Agreement and the other Loan Documents, each
as amended by this Amendment, are the legal, valid and binding obligation of the
Borrower to the extent the Borrower is a party thereto, and the Loan Agreement
and such Loan Documents are enforceable against the Borrower in accordance with
their respective terms;

            2.3. the representations and warranties of Borrower contained in the
Loan Agreement and the Loan Documents, each as amended hereby, are true and
correct in all material respects as of the date hereof, with the same effect as
though made on the date hereof, except to the extent that such representations
and warranties expressly relate to an earlier date, in which case such
representations and warranties are true and correct as of such earlier date; and

            2.4. Borrower has performed in all material respects all of its
obligations under the Loan Agreement and the other Loan Documents to be
performed by it on or before the date hereof and as of the date hereof, Borrower
is in compliance with all applicable terms and provisions of the Loan Agreement
and each of the other Loan Documents to be observed and performed by it and,
assuming the effectiveness of the consents set forth herein, no Event of Default
has occurred and is continuing.

            3. Conditions. The effectiveness of the amendments and consents set
forth above is subject to the following conditions precedent:

            3.1. Borrower shall have executed and delivered to Lender, or shall
have caused to be executed and delivered to Lender, each in form and substance
satisfactory to Lender, this Amendment and such other documents, instruments and
agreements as Lender may reasonably request.

            3.2. Borrower shall have paid to Agent a fully earned,
non-refundable fee of $3,400.

            3.3. All proceedings taken in connection with the transactions
contemplated by this Amendment and all documents, instruments and other legal
matters incident thereto shall be satisfactory to Lender and its legal counsel.

            3.4. Assuming the effectiveness of the consents set forth herein, no
Event of Default shall have occurred and be continuing.

            4. References; Effectiveness. Each of the Lender and the Borrower
hereby agree that all references to the Loan Agreement which are contained in
any of the other Loan Documents shall refer to the Loan Agreement as amended by
this Amendment.

                                      -2-
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            5. Counterparts. This Amendment may be executed in any number of
counterparts and by the different parties on separate counterparts, and each
such counterpart shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same Amendment.

            6. Continued Effectiveness. Except as specifically set forth herein,
the Loan Agreement and each of the other Loan Documents shall continue in full
force and effect according to their respective terms.

            7. Governing Law. This Amendment shall be a contract made under and
governed by the internal laws of the State of Illinois.

            8. Costs and Expenses. Borrower hereby agrees that all expenses
incurred by the Lender in connection with the preparation, negotiation and
closing of the transactions contemplated hereby, including without limitation
reasonable attorneys' fees and expenses, shall be part of the Obligations.

                                      -3-
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            IN WITNESS WHEREOF, this Amendment has been executed as of, and is
effective as of, the day and year first written above.

                                      eLOYALTY CORPORATION, a Delaware
                                      corporation, as Borrower

                                      By Kelly D. Conway
                                      Its CEO

                                      LASALLE BANK NATIONAL ASSOCIATION,
                                      as Lender

                                      By June Courtney
                                      Its SVP

                                      -4-<PAGE>
                                                                   Exhibit 10.23

                             RESTRICTED STOCK AWARD

         eLoyalty Corporation, a Delaware corporation (the "Company"), hereby
grants to the individual whose name appears below (the "Participant"), pursuant
to the provisions of the ELOYALTY CORPORATION _______ STOCK INCENTIVE PLAN (the
"Plan"), a Restricted Stock Award (this "Award") of shares of its Common Stock,
$0.01 par value per share (the "Restricted Shares"), as set forth below but only
upon and subject to the terms and conditions set forth herein, in the Plan, and
in Annex I hereto.

         All terms and conditions set forth in Annex I and the Plan are deemed
to be incorporated herein in their entirety. All capitalized terms used in this
Award and not otherwise defined herein have the respective meanings assigned to
them in Annex I or the Plan.

         PARTICIPANT'S NAME:                             _______________________
         NUMBER OF RESTRICTED SHARES SUBJECT TO AWARD:   ______________
         DATE OF AWARD GRANT ("AWARD DATE"):             ______________

         VESTING PROVISIONS:

                  (a) The Participant's Restricted Shares will become vested in
         __________________ quarterly increments ______________________,
         beginning ________________ and ending __________________; provided that
         the Participant is employed by the Company on such dates. If the
         application of this paragraph (a) would result in the Participant
         vesting in a fraction of a share of Common Stock, such fractional share
         of Common Stock shall be rounded up to the next whole share, in which
         case adjustments may be made to future vesting increments to prevent
         exceeding the total number of Restricted Shares subject to the Award,
         as provided above.

                  (b) If the Participant's employment or service with the
         Company terminates for any reason other than death, Disability or
         Retirement before all of the Participant's Restricted Shares have
         become vested under this Award, the Participant's Restricted Shares
         that have not become vested will be forfeited on and after the
         effective date of the termination.

                  (c) If the Participant's employment or service with the
         Company is terminated on account of the Participant's death or
         Disability, all Restricted Shares that have not otherwise vested under
         this Award will then become fully vested as of the date of such event.
         For purposes of this Award, "Disability" means a physical or mental
         condition of a Participant resulting from a bodily injury, disease or
         mental disorder that renders the Participant eligible for benefits
         under the Company's long-term disability plan (as in effect as of the
         date of the Participant's termination of employment and regardless of
         whether the Participant is otherwise eligible for benefits under such
         plan), as determined by the Company in its sole discretion.

                  (d) If the Participant's employment or service with the
         Company terminates by reason of the Participant's retirement with the
         Company's approval at age 55 or greater and with at least 5 years of
         continuous service with the Company, or with the Company and its
         predecessor on a combined and uninterrupted basis ("Retirement"), an
         additional 20% of the Restricted Shares subject to this Award (but not
         in excess of the remaining number of Restricted Shares not yet vested
         under this Award) will then become fully vested as of the date of the
         Participant's Retirement.

                  (e) Notwithstanding the foregoing, if the Participant
         terminates employment or service with the Company because he or she has
         become employed by an affiliate or subsidiary of the Company, the
         Participant shall continue to vest in the Restricted Shares in
         accordance with the vesting schedule set forth in the preceding
         paragraph, and the Participant's cessation of employment or service
         with the Company shall not be deemed a forfeiture event hereunder.

                  (f) The Board of Directors will have the right to determine,
         in its sole discretion, how a Participant's leave of absence will
         affect the terms of this Award, including the vesting of Shares
         hereunder.

                  (g) The Company will not have any further obligations to the
         Participant under this Award if the Participant's Restricted Shares are
         forfeited as provided herein.

_______________                      Page 1               Restricted Stock Award

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GENERAL:

         This Award is subject to the provisions of the Plan, and will be
interpreted in accordance therewith. In the event of a discrepancy between this
Award, or any other material describing this Award or the Restricted Shares
awarded hereunder, and the actual terms of the Plan, the Plan will govern in all
respects. A copy of the Plan is available upon request by contacting the Legal
Department at the Company's Lake Forest, Illinois office.

         IN WITNESS WHEREOF, this Award has been executed as of the Award Date
set forth above.

                                     ELOYALTY CORPORATION

                                     By:
                                        ---------------------------------------
                                                   Kelly D. Conway
                                     Its: President and Chief Executive Officer

_______________                      Page 2               Restricted Stock Award

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                                     ANNEX I
                                       TO
                             RESTRICTED STOCK AWARD

         1. Meaning of Certain Terms. As used herein, the following terms have
the meanings set forth below. "Board" means the Company's Board of Directors.
"Code" means the Internal Revenue Code of 1986, as amended. References to this
"Award," the "Restricted Shares" and "herein" are deemed to include the
Restricted Stock Award and this Annex I to the Restricted Stock Award taken as a
whole. This Annex I and the Restricted Stock Award are deemed to be one and the
same instrument. The term "employment" shall have the meanings set forth in
Section 1.4 of the Plan. Other capitalized terms used herein without definition
shall have the respective meanings set forth in the Restricted Stock Award or
the Plan, as appropriate.

         2. Stock Certificates. The Company will issue certificates, or cause
its transfer agent to maintain a book entry, for the Restricted Shares in the
Participant's name. The Secretary of the Company, or the Company's transfer
agent, will hold the certificates for the Restricted Shares, or such Restricted
Shares will be maintained in a book entry, until the Restricted Shares are
either: (i) forfeited; or (ii) vested. Any certificates that are issued for
Restricted Shares will bear a legend in accordance with Section 5 hereof. The
Participant's right to receive this Award hereunder is contingent upon the
Participant's execution and delivery to the Company of all stock powers or other
instruments of assignment (including a power of attorney), each endorsed in
blank with a guarantee of signature if deemed necessary or appropriate by the
Company, which would permit transfer to the Company of all or a portion of the
Restricted Shares in the event such Restricted Shares are forfeited in whole or
in part. The Company, or its transfer agent, will release the Restricted Shares,
as and when provided by Section 4 hereof.

         3. Rights as Stockholder. On and after the Award Date, and except to
the extent provided in Section 8 hereof, the Participant will be entitled to all
of the rights of a stockholder with respect to the Restricted Shares, including
the right to vote the Restricted Shares, the right to receive dividends and
other distributions payable with respect to the Restricted Shares, and the right
to participate in any capital adjustment applicable to all holders of Common
Stock; provided, however, that a distribution with respect to shares of Common
Stock, other than a regular cash dividend, will be deposited with the Company
and will be subject to the same restrictions as the Restricted Shares. If the
Participant forfeits any rights he or she may have under this Award, the
Participant shall, on the day following the event of forfeiture, no longer have
any rights as a stockholder with respect to the forfeited portion of the
Restricted Shares or any interest therein (or with respect to any Restricted
Shares not then vested), and the Participant shall no longer be entitled to
receive dividends on such stock or vote the Restricted Shares as of any record
date occurring thereafter.

         4. Terms and Conditions of Distribution. The Company, or its transfer
agent, will transfer the vested portion of the Restricted Shares to a brokerage
account established by the Company on behalf of the Participant as soon as
practicable after the Restricted Shares become vested. If the Participant dies
before the Company has distributed any portion of vested Restricted Shares, the
Company will transfer that portion of the vested Restricted Shares to a
brokerage account established by the Company on behalf of the beneficiary
designated by the Participant on a form provided by the Company for this
purpose. If the Participant failed to designate a beneficiary, the Company will
distribute certificates for the Restricted Shares in accordance with the
Participant's will or, if the Participant did not have a will, the Restricted
Shares will be distributed in accordance with the laws of descent and
distribution. The Company will distribute certificates for any undistributed
portion of vested Restricted Shares no later than six months after the
Participant's death.

         The Committee may require the Participant, or the alternate recipient
identified in the preceding paragraph, will be required to satisfy any potential
federal, state, local or other tax withholding liability. Such liability must be
satisfied at the time the Restricted Shares become "substantially vested" (as
defined in the regulations issued under Section 83 of the Code). In order to
satisfy the withholding, the Company shall withhold whole shares of Common Stock
which would otherwise be delivered having an aggregate Fair Market Value,
determined as of the Tax Date in an amount necessary to satisfy the amount of
applicable taxes required to be withheld; provided, however, that in the event
the Participant is subject to Section 16 of the Exchange Act, the Committee may
require that the method of satisfying such an obligation be in compliance with
Section 16 and the rules and regulations thereunder.

         The Company will not make any distribution under this Section 4 before
the first date any portion of the Restricted Shares may be distributed to the
Participant without penalty or forfeiture under federal or state laws or
regulations governing short swing trading of securities. In determining whether
a distribution would result in such a penalty or forfeiture, the Company and

_______________                      Page 1               Restricted Stock Award

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the Committee may rely upon information reasonably available to them or upon
representations of the Participant's legal or personal representative.

         5. Legend on Stock Certificates. If certificates for Restricted Shares
are issued in the Participant's name under this Award before that portion of
Restricted Shares becomes vested, the certificates shall bear the following
legend, or any alternate legend that counsel to the Company believes is
necessary or desirable to facilitate compliance with applicable securities laws:

         "The securities represented by this Certificate No. are subject to
certain restrictions on transfer specified in the Restricted Stock Award dated
as of, _____, between the issuer (the "Company") and _________, and the Company
reserves the right to refuse the transfer of such securities until such
conditions have been fulfilled with respect to such transfer. A copy of such
conditions shall be furnished by the Company to the holder hereof upon written
request and without charge."

         The foregoing legend will be removed from the certificates evidencing
the Restricted Shares after the conditions set forth in Section 4 hereof and the
other vesting provisions of this Award have been satisfied.

         6. Delivery of Certificates. Despite the provisions of Section 2
hereof, the Company is not required to issue or deliver any certificates for
vested Restricted Shares if at any time the Company determines that the listing,
registration or qualification of the Restricted Shares upon any securities
exchange or under any law, or the consent or approval of any governmental body,
or the taking of any other action is necessary or desirable as a condition of,
or in connection with, the delivery of the Restricted Shares thereunder, unless
such listing, registration, qualification, consent, approval or other action has
been effected or obtained, free of any conditions not acceptable to the Company.

         7. No Right to Continue Employment or Service. Nothing in the Plan or
this Award will be construed as creating any right in the Participant to
continued employment or service with the Company, or as altering or amending the
existing terms and conditions of the Participant's employment or service.

         8. Nontransferability. No interest of the Participant or any designated
beneficiary in or under this Award will be assignable or transferable by
voluntary or involuntary act or by operation of law, other than as set forth in
Section 4 hereof. Distribution of Restricted Shares will be made only to the
Participant; or, if the Committee has been provided with evidence acceptable to
it that the Participant is legally incompetent, the Participant's personal
representative; or, if the Participant is deceased, to the designated
beneficiary or other appropriate recipient in accordance with Section 4 hereof.
The Committee may require personal receipts or endorsements of a Participant's
personal representative, designated beneficiary or an alternate recipient. Any
effort to otherwise assign or transfer the rights under this Award will be
wholly ineffective, and will be grounds for termination by the Committee of all
rights of the Participant and his or her beneficiary in and under this Award.

         9. Administration. The Compensation Committee (the "Committee") of the
Board of Directors of the Company has the authority to manage and supervise the
administration of the Plan. The Participant's rights under this Award are
expressly subject to the terms and conditions of the Plan, including any
required continued shareholder approval of the Plan, and to any guidelines the
Committee adopts from time to time that are not inconsistent with the Plan.

         10. Interpretation; Governing Law. Any interpretation by the Committee
of the terms and conditions of the Plan, this Award or any guidelines adopted as
described in Section 9 hereof will be final. This Award and all determinations
made and actions taken pursuant hereto, to the extent not otherwise governed by
the Code or the laws of the United States, will be governed by the laws of the
State of Delaware and construed in accordance therewith without giving effect to
the principles of conflicts of law.

         11. Binding Effect. This Award will be binding upon and will inure to
the benefit of the Company and the Participant and their respective heirs,
executors, administrators, legal representatives, successors and assigns.

         12. Amendment and Waiver. The provisions of this Award may be amended
or waived only with the prior written consent of the Company and the
Participant, and no course of conduct or failure or delay in enforcing the
provisions of this Award will affect the validity, binding effect or
enforceability of this Award.

_______________                      Page 2               Restricted Stock Award

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