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                                                                    EXHIBIT 10.1

                         COMMON STOCK PURCHASE AGREEMENT
                         -------------------------------

         THIS COMMON STOCK PURCHASE AGREEMENT (this "Agreement") is made as of
May 26, 2000, by and among ELOYALTY CORPORATION, a Delaware corporation (the
"Company"), and the investors listed on Exhibit A hereto, each of which is
herein referred to as an "Investor" and all of which are collectively referred
to herein as the "Investors."

                                    RECITALS
                                    --------

         WHEREAS, the Company desires to sell and the Investors desire to
purchase 2,000,000 shares of the Company's common stock, par value $0.01 per
share (the "Common Stock").

                                    AGREEMENT
                                    ---------

         NOW THEREFORE, in consideration of the mutual covenants and agreements
set forth herein and for other good and valuable consideration the receipt and
adequacy of which is hereby acknowledged, the parties hereto, intending to be
legally bound, hereby agree as follows:

         1. Purchase and Sale of Stock.

            1.1. Sale and Issuance of Common Stock. Subject to the terms and
conditions of this Agreement, each Investor agrees, severally but not jointly,
to purchase at the Closing, and the Company agrees to sell and issue to each
Investor at the Closing, that number of shares of the Company's Common Stock set
forth opposite each Investor's name on Exhibit A hereto at a purchase price of
$13.50 per share. The shares of Common Stock to be sold pursuant to this
Agreement are collectively referred to herein as the "Shares".

            1.2. Closing. The closing of the purchase and sale of the Shares
shall take place at the offices of Latham & Watkins, 135 Commonwealth Drive,
Menlo Park, California, at 9:00 a.m. on the tenth business day after the
satisfaction or waiver of the conditions set forth in Sections 4 and 5 hereof or
at such other time and place as the Company and Investors representing a
majority of the Shares mutually agree (which time and place are designated as
the "Closing"). At the Closing the Company shall deliver to each Investor a
certificate or certificates representing that number of Shares set forth
opposite such Investor's name on Exhibit A hereto against payment of the
purchase price therefor by wire transfer of immediately available funds;
provided; however, that TCV IV Strategic Partners, L.P. shall not be required to
deliver the purchase price for the number of Shares to be purchased by it until
the tenth business day following the Closing, and the Company shall not be
required to deliver the certificate representing such Shares until the day TCV
IV Strategic Partners, L.P. delivers such purchase price.

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         2. Representations and Warranties of the Company. Except as set forth
in the Schedule of Exceptions attached hereto as Exhibit B, the Company hereby
represents and warrants as of the date hereof:

            2.1. Organization, Good Standing and Qualification. The Company
is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware. The Company has the requisite corporate power and
authority to own and operate its properties and assets, and to carry on its
business as presently conducted and as proposed to be conducted. The Company is
duly qualified to do business as a foreign corporation in each other
jurisdiction in which the conduct of its business requires such qualification,
except where the failure to so qualify would not have a material adverse effect
on the condition, financial or otherwise, business or operations of the Company.

            2.2. Capitalization. As of the date hereof, the authorized
capital stock of the Company consists of 100,000,000 shares of Common Stock,
47,163,212 of which are issued and outstanding, and 10,000,000 shares of
Preferred Stock ("Preferred Stock"), par value $0.01 per share, none of which
are issued and outstanding. The Company has reserved an aggregate of 16,570,614
shares of Common Stock for issuance to employees, consultants and other service
providers as a result of the conversion of previously outstanding Technology
Solution Company stock options and pursuant to the Company's 1999 and 2000 stock
plans, of which options to purchase 14,976,464 shares are either presently
outstanding or have been specifically identified for grant. All issued and
outstanding shares of Common Stock have been duly authorized and validly issued
and are fully paid and nonassessable. There are no other outstanding rights,
options, warrants, preemptive rights, conversion rights, rights of first refusal
or similar rights for the purchase or acquisition from the Company of any
securities of the Company nor are there any commitments to issue or execute any
such rights, options, warrants, preemptive rights, conversion rights or rights
of first refusal other than as provided in the Investor Rights Agreement of even
date herewith in substantially the form attached hereto as Exhibit C (the
"Investor Rights Agreement").

            2.3. Authorization. All corporate action on the part of the
Company, its officers, directors and stockholders necessary for the
authorization, execution and delivery of this Agreement and the Investors Rights
Agreement, the performance of all obligations of the Company hereunder and
thereunder, and the authorization, issuance, sale and delivery of the Shares
being sold hereunder has been taken, and this Agreement and the Investor Rights
Agreement constitute valid and legally binding obligations of the Company,
enforceable against the Company in accordance with their respective terms,
subject to: (i) judicial principles limiting the availability of specific
performance, injunctive relief, and other equitable remedies; (ii) bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter in
effect generally relating to or affecting creditors' rights; and (iii)
limitations on the enforceability of any indemnification provisions.

            2.4. Valid Issuance of Common Stock. The Common Stock being
purchased by the Investors hereunder, when issued, sold and delivered in
accordance with the terms of this Agreement for the consideration expressed
herein, will be duly and validly issued, fully paid,

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nonassessable, free of pre-emptive rights and will be free of restrictions on
transfer other than under applicable state and federal securities laws.

            2.5. Governmental Consents. No consent, approval, order or
authorization of, or registration, qualification, designation, declaration or
filing with, any federal, state or local governmental authority on the part of
the Company is required in connection with the offer, sale or issuance of the
Shares or the consummation of any other transaction contemplated hereby, except
for the following: the filings under the Hart-Scott-Rodino Antitrust Improvement
Act of 1976, as amended (the "HSR Act") and under applicable state securities
laws, which filings will have occurred within the appropriate time periods
therefor. Assuming that the representations of the Investors set forth in
Section 3 below are true and correct, the offer, sale and issuance of the Shares
in conformity with the terms of this Agreement are exempt from the registration
requirements of Section 5 of the Securities Act of 1933, as amended (the
"Securities Act") and from qualification requirements under applicable state
securities laws.

            2.6. Litigation. There is no material action, suit, proceeding or
investigation (including without limitation any suit, proceeding or
investigation involving the prior employment of any of the Company's employees,
their use in connection with the Company's business of any information or
techniques allegedly proprietary to any of their former employers, or their
obligations under any agreements with prior employers) pending or, to the best
of the Company's knowledge, currently threatened before any court,
administrative agency or other governmental body (nor, to best of the Company's
knowledge, is there any reasonable basis for any such action, suit, proceeding
or investigation). The Company is not a party or subject to, and none of the
assets of the Company is bound by, the provisions of any material order, writ,
injunction, judgment or decree of any court or government agency or
instrumentality. There is no action, suit, proceeding or investigation by the
Company currently pending which the Company intends to initiate.

            2.7. Intellectual Property. To the best knowledge the Company
owns or has the right to use all material patents, trademarks, service marks,
trade names, copyrights, trade secrets, licenses, information, proprietary
rights and processes necessary for its business as now conducted. The Company
has not received any written communications alleging, nor to the best of the
Company's knowledge, has it violated or by the conduct of its business as
proposed, will it violate any of the patents, trademarks, service marks, trade
names, copyrights or trade secrets or other proprietary rights or processes of
any other person or entity, and to the best knowledge of the Company, its is not
infringing or violating such rights of any other person or entity, that would
individually or in the aggregate have a material adverse effect on the Company.
To the Company's knowledge, (i) none of the Company's employees are obligated
under any contract (including licenses, covenants or commitments of any nature)
or other agreement, or subject to any judgment, decree or order of any court or
administrative agency, that would interfere with the use of his or her best
efforts to promote the interests of the Company or that would conflict with the
Company's business as now conducted or as proposed to be conducted, (ii) neither
the execution nor delivery of this Agreement or the Investor Rights Agreement,
nor the carrying on of the Company's business by the employees of the Company,
nor the conduct of the Company's business as proposed, will conflict with or
result in a breach of the terms, conditions or provisions of, or constitute a
default under, any contract, covenant or instrument under which any

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of such employees is now obligated, and (iii) none of the Company's current
employees is, by virtue of such employee's activities in connection with the
Company's business, violating, infringing or misappropriating any patents,
trademarks, service marks, trade names, copyrights, trade secrets, licenses,
information, proprietary rights or processes of any former employer of such
employee, that individually or in the aggregate would have a material adverse
effect on the Company.

            2.8. Compliance with Other Instruments. The Company is not in
violation or default of any provision of its Certificate of Incorporation or
By-laws, each as amended and in effect as of the Closing. To the Company's
knowledge, it is not in material violation or default (with or without notice or
passage of time, or both) of any provision of any instrument, mortgage, deed of
trust, loan, contract, commitment, judgment, decree, order or obligation to
which it is a party or by which it or any of its properties or assets are bound
which would materially adversely affect the condition (financial or otherwise),
business, property, assets or liabilities of the Company, taken as a whole, or,
to the best of the Company's knowledge, of any provision of any federal, state
or local statute, rule or governmental regulation which would materially
adversely affect the condition (financial or otherwise), business, property,
assets or liabilities of the Company, taken as a whole. The execution, delivery
and performance of and compliance with this Agreement and the Investor Rights
Agreement and the issuance, and sale of the Shares will not result in any such
violation, be in conflict with or constitute, with or without the passage of
time or giving of notice, a default under any such provision, require any
consent or waiver under any such provision (other than any consents or waivers
that have been obtained), or result in the creation of any material mortgage,
pledge, lien, encumbrance or charge upon any of the properties or assets of the
Company pursuant to any such provision.

            2.9. SEC Documents; Financial Statements. The Company has timely
filed all reports, schedules, forms, statements and other documents required to
be filed by it with the Securities and Exchange Commission (the "SEC") pursuant
to the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and has
filed all registration statements and other documents required to be filed by it
with the SEC pursuant to the Securities Act, including the Company's
registration statement on Form S-1 declared effective on February 8, 2000 (all
of the foregoing filed prior to the date hereof, and all exhibits included
therein and financial statements and schedules thereto and documents
incorporated by reference therein, being hereinafter referred to herein as the
"SEC Documents"). As of their respective dates, the SEC Documents complied in
all material respects with the requirements of the Exchange Act or the
Securities Act, as the case may be, and the rules and regulations of the SEC
promulgated thereunder applicable to the SEC Documents, and none of the SEC
Documents, at the time they were filed with the SEC, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading. Any statements
made in any such SEC Documents that are or were required to be updated or
amended under applicable law have been so updated or amended. As of their
respective dates, the financial statements of the Company included in the SEC
Documents complied in all material respects with applicable accounting
requirements and the published rules and regulations of the SEC applicable with
respect thereto. Such financial statements have been prepared in accordance with
United States generally accepted accounting principles, consistently applied,
during the periods involved (except (i) as may be otherwise

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indicated in such financial statements or the notes thereto, or (ii) in the case
of unaudited interim statements, to the extent they may not include footnotes or
may be condensed or summary statements) and fairly present in all material
respects the consolidated financial position of the Company as of the dates
thereof and the results of their operations and cash flows for the periods then
ended (subject, in the case of unaudited statements, to normal and recurring
year-end audit adjustments which are not material).

            2.10. Registration Rights. Except for that certain Registration
Rights Agreement dated August 13, 1999 among TSC and the stockholders named
therein and as contemplated by the Investor Rights Agreement, the Company has
not granted or agreed to grant any registration rights, including piggyback
rights, to any person or entity.

            2.11. Private Placement. Subject in part to the truth and
accuracy of the Investors' representations set forth in this Agreement, the
offer, sale and issuance of the Shares as contemplated by this Agreement is
exempt from the registration requirements of the Securities Act.

            2.12. Disclosure. The Company has fully provided the Investors
with all the information that the Investors or their counsel have requested for
deciding whether to acquire the Shares and all information that the Company
believes is reasonably necessary to enable the Investors to make such a
decision. No representation or warranty contained in this Agreement and the
exhibits attached hereto, any certificate furnished or to be furnished to
Investors at Closing, or the Company's Business Plan (when read together)
contains any untrue statement of a material fact or omits to state a material
fact necessary in order to make the statements contained herein or therein not
misleading in light of the circumstances under which they were made.

            2.13. Acknowledgment Regarding the Investors' Purchase of the
Shares. The Company acknowledges and agrees that the Investors are not acting as
a financial advisor or, acting as a fiduciary of the Company (or in any similar
capacity) with respect to this Agreement or the transactions contemplated
hereby, and the relationship between the Company and the Investors are "arms
length" and that any statement made by the Investors or any of their
representatives or agents in connection with this Agreement and the transactions
contemplated hereby is not advice or a recommendation and is merely incidental
to the Investors' purchase of Shares and has not been relied upon by the
Company, its officers or directors in any way. The Company further represents to
the Investors that the Company's decision to enter into this Agreement has been
based solely on an independent evaluation by the Company and its
representatives.

         3. Representations and Warranties of the Investors. Each Investor
hereby represents and warrants as of the date hereof and as of the Closing
as follows:

            3.1. Experience; Accredited Investor. Such Investor is
experienced in evaluating companies such as the Company, and has either
individually or through its current officers such knowledge and experience in
financial and business matters that such Investor is capable of evaluating the
merits and risks of such Investor's prospective investment in the

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Company, and has the ability to bear the economic risks of the investment. Such
Investor is an "accredited investor" within the meaning of Rule 501 of
Regulation D promulgated under the Securities Act.

            3.2. Purchase Entirely for Own Account. Such Investor is
acquiring the Shares for investment for such Investor's own account and not with
the view to, or for resale in connection with, any distribution thereof, except
for transfers to affiliated fund partnerships. Such Investor understands that
the Shares have not been registered under the Securities Act by reason of a
specific exemption from the registration provisions of the Securities Act which
depends upon, among other things, the bona fide nature of the investment intent
as expressed herein. Such Investor further represents that it does not have any
contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participation to any third person with respect to any of the
Shares. Such Investor understands and acknowledges that the offering of the
Shares pursuant to this Agreement will not be registered under the Securities
Act on the ground that the sale provided for in this Agreement and the issuance
of securities hereunder is exempt from the registration requirements of the
Securities Act.

            3.3. Rule 144. Such Investor acknowledges that the Shares must be
held indefinitely unless subsequently registered under the Securities Act or an
exemption from such registration is available. Such Investor is aware of the
provisions of Rule 144 promulgated under the Securities Act which permit limited
resale of shares purchased in a private placement subject to the satisfaction of
certain conditions. Such Investor understands and acknowledges that the
certificate evidencing its Shares will be imprinted with certain legends,
including but not limited to, the form of legend set forth in Section 1.3 of the
Investor Rights Agreement.

            3.4. Access to Data. Such Investor has received and reviewed
information about the Company and has had an opportunity to discuss the Company'
business, management and financial affairs with its management and to review the
Company's facilities. Nothing contained in this Section 3.4 shall limit in any
respect the Company's representations and warranties contained in this
Agreement.

            3.5. Authorization. This Agreement has been duly authorized,
executed and delivered by such Investor and constitutes a valid and legally
binding obligation of such Investor, enforceable against such Investor in
accordance with its terms subject to: (i) judicial principles limiting the
availability of specific performance, injunctive relief, and other equitable
remedies; (ii) bankruptcy, insolvency, reorganization, moratorium or other
similar laws now or hereafter in effect generally relating to or affecting
creditors' rights; and (iii) limitations on the enforceability of any
indemnification provisions.

         4. Conditions of Investor's Obligations at Closing. The obligation
of each Investor to purchase Shares at the Closing is subject to the fulfillment
or waiver by the Investor on or before the Closing of each of the following
conditions, the waiver of which shall not be effective against any Investor who
does not consent in writing thereto:

            4.1. Representations and Warranties. The representations and
warranties of the Company contained in Section 2 shall be true and correct in
all material respects on and as of the

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Closing with the same effect as though such representations and warranties had
been made on and as of the date of such Closing.

            4.2.  Performance. The Company shall have performed and complied
in all material respects with all covenants, agreements, obligations and
conditions contained in this Agreement that are required to be performed or
complied with by it on or before the Closing.

            4.3.  Compliance Certificate. The Company shall deliver to each
Investor at the Closing a certificate of the President of the Company dated the
date of the Closing stating that the conditions specified in Sections 4.1 and
4.2 have been fulfilled.

            4.4.  Blue Sky. The Company shall have obtained all necessary
permits and qualifications, if any, or secured an exemption therefrom, required
by any state for the offer and sale of the Shares.

            4.5.  Investor Rights Agreement. The Company and each Investor
shall have entered into the Investor Rights Agreement.

            4.6.  Opinion of Company Counsel. The Company shall have provided
an opinion addressed to the Investors rendered by its legal counsel in form
and substance reasonably satisfactory to the Investors.

            4.7.  Listing. The Shares shall have been approved for listing,
subject only to notice of issuance, on the NASDAQ National Market.

            4.8.  Regulatory Approvals. All consent, approvals, filings and
registrations with, and notifications to all federal, state, local and foreign
governmental or regulatory agencies, authorities, instrumentalities or other
bodies having jurisdiction over the parties hereto required for the consummation
of the transactions contemplated hereby have been obtained or made and shall be
in full force and effect and the waiting period under the HSR Act, shall have
expired or been terminated.

            4.9.  Legal Proceedings. No court or governmental or regulatory
authority of competent jurisdiction shall have enacted, issued, promulgated,
enforced or enacted any law of order (whether temporary, preliminary or
permanent) or taken any other action which prohibits or makes illegal
consummation of the transactions contemplated by this Agreement, and there shall
be no suit, claim, action, proceeding or investigation pending against the
Company which seeks to challenge the transactions contemplated by this
Agreement.

            4.10. Opinion of Financial Advisor. The Company shall have
delivered to the Investors a copy of an opinion of Credit Suisse First Boston
Corporation to the effect that, as of April 18, 2000, the sale of the Shares
pursuant to the terms of this Agreement were fair from a financial point of view
to the Company. Each Investor acknowledges that it is not an addressee to such
fairness opinion and has no third party beneficiary rights to any of the matters
set forth therein.

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            4.11. Material Adverse Change. Since December 31, 1999, there
shall have been no change, event or development which has had or could
reasonably be expected to have, individually or in the aggregate, a material
adverse effect in the business, financial condition, results of operation,
assets, liabilities or prospects of the Company and its subsidiaries, taken as a
whole;

         5. Conditions of the Company's Obligations at Closing. The
obligations of the Company to sell Shares to each Investor at the Closing are
subject to the fulfillment, or waiver by the Company, on or before the Closing
of each of the following conditions by that Investor:

            5.1.  Representations and Warranties. The representations and
warranties of the Investors contained in Section 3 shall be true and correct in
all material respects on and as of the Closing with the same effect as though
such representations and warranties had been made on and as of the Closing.

            5.2  Performance. The Investors shall have performed and complied in
all material respects with all covenants, agreements, obligations and conditions
contained in this Agreement that are required to be performed or complied with
by it on or before the Closing.

            5.3.  Blue Sky. The Company shall have obtained all necessary
permits and qualifications, if any, or secured an exemption therefrom, required
by any state for the offer and sale of the Shares.

            5.4.  Investor Rights Agreement. The Company and each Investor
shall have entered into the Investor Rights Agreement.

            5.5.  Regulatory Approvals. All consent, approvals, filings and
registrations with, and notifications to all federal, state, local and foreign
governmental or regulatory agencies, authorities, instrumentalities or other
bodies having jurisdiction over the parties hereto required for the consummation
of the transactions contemplated hereby have been obtained or made and shall be
in full force and effect and the waiting period under the HSR Act, shall have
expired or been terminated.

            5.6.  Legal Proceedings. No court or governmental or regulatory
authority of competent jurisdiction shall have enacted, issued, promulgated,
enforced or enacted any law of order (whether temporary, preliminary or
permanent) or taken any other action which prohibits or makes illegal
consummation of the transactions contemplated by this Agreement, and there shall
be no suit, claim, action, proceeding or investigation pending against the
Company which seeks to challenge the transactions contemplated by this
Agreement.

            5.7.  Opinion of Financial Advisor. The Company shall have
received an opinion of Credit Suisse First Boston Corporation to the effect
that, as of April 18, 2000, the sale of the Shares pursuant to the terms of this
Agreement were fair from a financial point of view to the Company.

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         6. Covenants.

            6.1. Satisfaction of Conditions. The parties shall use reasonable
best efforts to satisfy in a timely manner each of the conditions set forth in
Section 4 and Section 5 of this Agreement.

            6.2. Listing. The Company shall prepare and file with NASDAQ as
promptly as practicable after the date hereof, a Notification of Additional
Listing with respect to the Shares, and the Company shall give all notices and
make all filings with NASDAQ required in connection with the transactions
contemplated herein.

            6.3. Antitrust Notification; Consent of Regulatory Authority. To
the extent required by the HSR Act, each party hereto which is so required, will
as promptly as practicable after the date hereof, file with the United State
Federal Trade Commission and the United States Department of Justice the
notification and report form required for the transactions contemplated hereby,
will promptly file any supplemental or additional information which may
reasonably be required in connection therewith pursuant to the HSR Act, and will
comply in all material respects with the requirements of the HSR Act.

            6.4. Market Purchases. The Company acknowledges that the
Investors currently intend to acquire up to an additional 1,500,000 shares of
Common Stock, subject to market conditions and compliance with applicable
securities laws, in the open market or through privately negotiated transactions
with existing stockholders of the Company (the "Market Purchases"). The Company
represents that its Board of Directors has approved the Market Purchases by the
Investors, including approval for purposes of Section 203 of the Delaware
General Corporation Code. The Company acknowledges that the Investors have no
obligation or commitment to purchase any shares of Common Stock in the Market
Purchases.

         7. Miscellaneous.

            7.1. Governing Law. This Agreement shall be governed in all
respects by the laws of the State of Illinois without regard to choice of laws
or conflict of laws provisions thereof.

            7.2. Survival. The representations, warranties, covenants and
agreements made herein shall survive any investigation made by any Investor and
shall survive to the first anniversary of the Closing. All statements of the
Company as to factual matters contained in any certificate or exhibit delivered
by or on behalf of the Company pursuant hereto shall be deemed to be the
representations and warranties of the Company hereunder as of such date of such
certificate or exhibit.

            7.3. Successors and Assigns. Except as otherwise provided herein,
this Agreement and the rights and obligations of the parties hereunder shall
inure to the benefit of and be binding upon the respective successors and
assigns of the parties hereto; provided, however, that prior to the Closing the
rights of an Investor to purchase Shares shall not be assignable without the
consent of the Company.

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            7.4. Entire Agreement; Amendment. This Agreement and the other
documents delivered pursuant hereto constitute the full and entire understanding
and agreement among the parties with regard to the subjects hereof and thereof.
Any prior agreements, understanding or representations with respect to the
subject matter hereof, including specifically the Letter of Intent, dated April
18, 2000, between the Company and TCV IV, L.P., are superseded by this Agreement
shall have no further force or effect. Neither this Agreement nor any term
hereof may be amended, waived, discharged or terminated other than by a written
instrument signed by the party against whom enforcement of any such amendment,
waiver, discharge or termination is sought. Notwithstanding the foregoing,
holders of a majority of the outstanding Shares may waive or amend, on behalf of
all Investors and other holders of Shares, any provisions hereof benefiting the
Investors so long as the effect thereof will be that all such Investors and
other holders of Shares will be treated equally.

            7.5. Notices, Etc. All notices and other communications required
or permitted hereunder shall be in writing and shall be (a) mailed by registered
or certified mail, postage prepaid, return receipt requested, (b) delivered by a
nationally recognized overnight courier, (c) sent by confirmed facsimile or (d)
otherwise delivered by hand or by messenger, addressed (i) if to an Investor, at
such Investor's address set forth on Exhibit A, or at such other address as such
Investor shall have furnished to the Company in writing, (ii) if to any other
holder of any Shares, at such address as such holder shall have furnished the
Company in writing, or, until any such holder so furnishes an address to the
Company, then to and at the address of the last holder of such Shares who has so
furnished an address to the Company, or (iii) if to the Company, at its address
set forth on the signature page of this Agreement addressed to the attention of
the Corporate Secretary, or at such other address as the Company shall have
furnished to the Investors. If notice is provided by mail, notice shall be
deemed to be given 48 hours after proper deposit in a mailbox; if by overnight
courier, notice shall be deemed to be given 24 hours after deposit; if by
facsimile, upon completion of such facsimile transmission as conclusively
evidenced by the transmission receipt; and if by hand or messenger, upon
receipt.

            7.6. Delays or Omissions. No delay or omission to exercise any
right, power or remedy accruing to any holder of any Shares upon any breach or
default of the Company under this Agreement shall impair any such right, power
or remedy of such holder, nor shall it be construed to be a waiver of any such
breach or default, or an acquiescence therein, or of or in any similar breach or
default thereafter occurring; nor shall any waiver of any single breach or
default be deemed a waiver of any other breach or default theretofore or
thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any holder of any breach or default under this
Agreement, or any waiver on the part of any holder of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to
the extent specifically set forth in such writing or as provided in this
Agreement. All remedies, either under this Agreement or by law or otherwise
afforded to any holder, shall be cumulative and not alternative.

            7.7. Finder's Fee. The Company shall indemnify and hold each of
the Investors harmless and each Investor shall, severally and not jointly,
indemnify and hold the Company harmless from any liability for any commission or
compensation in the nature of a finder's fee in connection with the sale of the
Shares (including the costs, expenses and legal fees of defending

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against such liability) for which the Company or such Investor, or any of their
respective partners, employees, or representatives, as the case may be, is
responsible.

            7.8.  Counterparts. This Agreement may be executed in any number
of counterparts and signatures may be delivered by facsimile, each of which may
be executed by less than all Investors, each of which shall be enforceable
against the parties actually executing such counterparts, and all of which
together shall constitute one instrument.

            7.9.  Severability. If any provision of this Agreement becomes or
is declared by a court of competent jurisdiction to be illegal, unenforceable or
void, portions of such provision, or such provision in its entirety, to the
extent necessary, shall be severed from this Agreement and the balance of this
Agreement shall be enforceable in accordance with its terms.

            7.10. Titles and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

            7.11. Legal Fees. If any action at law or in equity (including
arbitration) is necessary to enforce or interpret the terms of this Agreement,
the prevailing party shall be entitled to reasonable attorneys' fees, costs and
necessary disbursements in addition to any other relief to which such party may
be entitled.

            7.12. Expenses. The Company shall reimburse the Investors for the
reasonable fees and expenses (including fees and expenses of its legal counsel
and any filing fees paid in connection with required notifications under the HSR
Act) incurred by the Investors in connection with the transactions contemplated
by this Agreement.

                                       11

<PAGE>   12

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                     THE COMPANY:

                                     ELOYALTY CORPORATION

                                     By:  /s/ Timothy J. Cunningham
                                          -------------------------------------
                                     Name:  Timothy J. Cunningham
                                     Title: SVP & CFO

                                     Address: 205 North Michigan Avenue
                                              Suite 1500
                                              Chicago, Illinois  60601

<PAGE>   13

THE INVESTORS:

         TCV IV, L.P.
         By:  Technology Crossover Management IV, L.L.C.
         Its: General Partner

         By: /s/ Robert C. Bensky
             ----------------------------------------------
             Name:  Robert C. Bensky
             Title: Attorney in Fact

         TCV IV STRATEGIC PARTNERS, L.P.
         a Delaware Limited Partnership
         By:  Technology Crossover Management IV, L.L.C.,
         Its: General Partner

         By: /s/ Robert C. Bensky
             ----------------------------------------------
             Name:  Robert C. Bensky
             Title: Attorney in Fact

         TCV III (GP)
         a Delaware General Partnership
         By:  Technology Crossover Management III, L.L.C.,
         Its: General Partner

         By: /s/ Robert C. Bensky
             ----------------------------------------------
             Name:  Robert C. Bensky
             Title: Chief Financial Officer

         TCV III, L.P.
         a Delaware Limited Partnership
         By:  Technology Crossover Management III, L.L.C.,
         Its: General Partner

         By: /s/ Robert C. Bensky
             ----------------------------------------------
             Name:  Robert C. Bensky
             Title: Chief Financial Officer

         TCV III (Q), L.P.
         a Delaware Limited Partnership
         By:  Technology Crossover Management III, L.L.C.,
         Its: General Partner

         By: /s/ Robert C. Bensky
             ----------------------------------------------
             Name:  Robert C. Bensky
             Title: Chief Financial Officer

         TCV III STRATEGIC PARTNERS, L.P.
         a Delaware Limited Partnership
         By:  Technology Crossover Management III, L.L.C.,
         Its: General Partner

         By: /s/ Robert C. Bensky
             ----------------------------------------------
             Name:  Robert C. Bensky
             Title: Chief Financial Officer

<PAGE>   14

                                    EXHIBIT A

                              SCHEDULE OF INVESTORS

-------------------------------------------------------------------------------
                                                                 AGGREGATE
                 INVESTOR               NUMBER OF SHARES      PURCHASE PRICE
-------------------------------------------------------------------------------
TCV IV, L.P.                                 1,830,516        $24,711,966.00
575 High Street, Suite 400
Palo Alto, California 94301

56 Main Street, Suite 210
Millburn, New Jersey 07041
-------------------------------------------------------------------------------
TCV IV Strategic Partners, L.P.                 69,484        $   938,034.00
575 High Street, Suite 400
Palo Alto, California 94301

56 Main Street, Suite 210
Millburn, New Jersey 07041
-------------------------------------------------------------------------------
TCV III (GP)
575 High Street, Suite 400                         726        $     9,801.00
Palo Alto, California 94301

56 Main Street, Suite 210
Millburn, New Jersey 07041
-------------------------------------------------------------------------------
TCV III, L.P.
575 High Street, Suite 400                       3,449        $    46,561.50
Palo Alto, California 94301

56 Main Street, Suite 210
Millburn, New Jersey 07041
-------------------------------------------------------------------------------
TCV III, L.P.
575 High Street, Suite 400                      91,673        $ 1,237,585.50
Palo Alto, California 94301

56 Main Street, Suite 210
Millburn, New Jersey 07041
-------------------------------------------------------------------------------
TCV III STRATEGIC PARTNERS, L.P.
575 High Street, Suite 400                       4,152        $    56,052.00
Palo Alto, California 94301

56 Main Street, Suite 210
Millburn, New Jersey 07041
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
TOTAL                                        2,000,000        $   27,000,000
-------------------------------------------------------------------------------

<PAGE>   15

                                    EXHIBIT B
                                    ---------

                             SCHEDULE OF EXCEPTIONS

                                      None

<PAGE>   16

                                    EXHIBIT C
                                    ---------

                            INVESTOR RIGHTS AGREEMENT<PAGE>   1
                                                                    EXHIBIT 10.2
                            INVESTOR RIGHTS AGREEMENT
                            -------------------------

         THIS INVESTOR RIGHTS AGREEMENT (the "Agreement") is entered into as of
May 26, 2000, by and among eLoyalty Corporation, a Delaware corporation (the
"Company"), and the persons set forth on the Schedule of Investors attached
hereto as Exhibit A (the "Investors").

                                    RECITALS

         1. The Company is entering into a Common Stock Purchase Agreement of
even date hereof (the "Common Purchase Agreement") with each of the Investors
identified therein pursuant to which the Company has sold or desires to sell to
the Investors and the Investors have purchased or desire to purchase from the
Company shares of the Company's Common Stock.

         2. As a condition to each of the Investors' obligations under the
Common Purchase Agreement, the Company and the Investors will enter into this
Agreement for the purpose of granting certain registration and other rights to
the Investors.

         NOW, THEREFORE, in consideration of the covenants and promises set
forth herein, and for other good and valuable consideration, intending to be
legally bound hereby the parties agree as follows:

SECTION 1 Certain Definitions. As used in this Agreement, the capitalized terms
identified in the Preamble and the Recitals shall have the meanings identified
therein and the following terms shall have the following respective meanings:

            "Commission" shall mean the Securities and Exchange Commission or
any other federal agency at the time administering the Securities Act.

            "Common Stock" shall mean the Common Stock, par value $0.01
per share, of the Company.

            "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended, or any similar successor federal statute, and the rules and
regulations thereunder, all as the same shall be in effect from time to time.

            "Holder" shall mean (i) any Investor holding Registrable Securities
and (ii) any person holding Registrable Securities to whom the rights under this
Agreement have been transferred in accordance with Section 13 hereof.

            The terms "register", "registered" and "registration" refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement.

            "Registration Expenses" shall mean all expenses incurred by the
Company in complying with Sections 5 and 6 hereof, including, without
limitation, all registration, qualification, listing and filing fees, printing
expenses, escrow fees, fees and disbursements of

                                       1

<PAGE>   2

counsel for the Company, blue sky fees and expenses, and the expense of any
special audits incident to or required by any such registration (but excluding
the compensation of regular employees of the Company which shall be paid in any
event by the Company).

            "Registrable Securities" shall mean (i) the Shares and any
Common Stock of the Company issued or issuable in respect of the Shares or other
securities issued or issuable with respect to the Shares upon any stock split,
stock dividend, recapitalization, or similar event, or any Common Stock
otherwise issued or issuable with respect to the Shares; provided, however, that
shares of Common Stock or other securities shall only be treated as Registrable
Securities if and so long as they (A) have not been sold to or through a broker
or dealer or underwriter in a public distribution or a public securities
transaction, (B) have not been transferred in a transaction pursuant to which
the registration rights are not also assigned in accordance with Section 13
hereof, or (C) are not eligible for public sale pursuant to Rule 144(k).

            "Restricted Securities" shall mean the Shares required to bear
the legend set forth in Section 3 hereof.

            "Securities Act" shall mean the Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder or any similar
federal statute and the rules and regulations of the Commission thereunder, all
as the same shall be in effect at the time.

            "Selling Expenses" shall mean all underwriting discounts,
selling commissions and stock transfer taxes applicable to the securities
registered by the Holders.

            "Shares" shall mean all shares of Common Stock purchased by
the Investors pursuant to the Common Purchase Agreement.

SECTION 2   Restrictions. The Shares shall not be sold, assigned, transferred
or pledged except upon the conditions specified in Section 4, which conditions
are intended to ensure compliance with the provisions of the Securities Act.

SECTION 3   Restrictive Legend. Each certificate representing the Shares
(unless otherwise permitted by the provisions of Section 4 below) shall be
stamped or otherwise imprinted with a legend in the following form (in addition
to any legend required under applicable state securities laws):

         "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
         INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED. SUCH SHARES MAY NOT BE SOLD, TRANSFERRED OR PLEDGED
         IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION FROM SUCH
         REGISTRATION."

            Each Investor consents to the Company making a notation on its
records and giving instructions to any transfer agent of the Restricted
Securities in order to implement the restrictions on transfer established in
Section 4.

                                       2

<PAGE>   3

SECTION 4   Notice of Proposed Transfers. The holder of each certificate
representing Restricted Securities, by acceptance thereof, agrees to comply in
all respects with the provisions of this Section 4. Prior to any proposed sale,
assignment, transfer or pledge of any Restricted Securities, unless there is in
effect a registration statement under the Securities Act covering the proposed
transfer, the holder thereof shall give written notice to the Company of such
holder's intention to effect such transfer, sale, assignment or pledge. Each
such notice shall describe the manner and circumstances of the proposed
transfer, sale, assignment or pledge in sufficient detail, and shall be
accompanied at such Holder's expense by either (i) an unqualified written
opinion of legal counsel who shall, and whose legal opinion shall, be
satisfactory to the Company, addressed to the Company, to the effect that the
proposed transfer of the Restricted Securities may be effected without
registration under the Securities Act, or (ii) a "no action" letter from the
Commission to the effect that the transfer of such securities without
registration will not result in a recommendation by the staff of the Commission
that action be taken with respect thereto, or (iii) any other evidence
satisfactory to counsel to the Company, whereupon the holder of such Restricted
Securities shall be entitled to transfer such Restricted Securities in
accordance with the terms of the notice delivered by the holder to the Company.
The Company will not require such a notice or legal opinion or "no action"
letter (a) in any customary transaction in compliance with Rule 144, (b) in any
transaction in which a Holder which is a corporation distributes Restricted
Securities solely to its majority owned subsidiaries or affiliates for no
consideration, or (c) in any transaction in which a Holder which is a
partnership or limited liability company distributes Restricted Securities
solely to its affiliates (including affiliated fund partnerships), partners or
members thereof for no consideration. Each certificate evidencing the Restricted
Securities transferred as above provided shall bear the appropriate restrictive
legend set forth in Section 3 above, except that such certificate shall not bear
such restrictive legend if, in the opinion of counsel for such holder and the
Company, such legend is not required in order to establish compliance with any
provisions of the Securities Act.

SECTION 5   Requested Registration.

         The Company shall register the sale or distribution by the Holders,
on a delayed or continuous basis, of all of the Registrable Securities on a Form
S-3 registration statement (or any successor form to Form S-3) (the "Shelf
Registration") by February 15, 2001 (including, without limitation, the
execution of an undertaking to file post-effective amendments, appropriate
qualification under applicable blue sky or other state securities laws and
appropriate compliance with applicable regulations issued under the Securities
Act and any other governmental requirements or regulations). Once declared
effective, the Company shall cause (x) the Shelf Registration to be effective
until the later of (i) one year from the effectiveness of such registration
statement, or (ii) the second anniversary of the purchase of the Shares by the
Investors, and (y) the Shelf Registration to be useable by the Holders during
such entire period, except that the Shelf Registration may be unuseable
(including by way of notice sent pursuant to Section 10(d)) for an aggregate of
90 days less the number of days the effectiveness of the Shelf Registration was
delayed pursuant to clause (2) below of this Section. The Company shall not be
obligated to take any action to effect the Shelf Registration; (1) in any
particular jurisdiction in which the Company would be required to execute a
general consent to service of process in effecting such registration,
qualification or compliance unless the Company is already subject to

                                       3

<PAGE>   4

service in such jurisdiction and except as may be required by the Securities
Act; or (2) if the Company shall furnish to such Holders a certificate, signed
by the President or Chief Executive Officer of the Company, stating that in the
good faith judgment of the Board of Directors it would be seriously detrimental
to the Company for a registration statement to be declared effective in the near
future, then the date by which the Company shall have the Shelf Registration
effective may be extended from February 15, 2001 by up to 90 days.

SECTION 6   Company Registration.

            (a) Notice of Registration. If at any time or from time to time,
the Company shall determine to register any of its equity securities, either for
its own account or the account of a security holder or holders other than (i) a
registration relating solely to employee benefit plans, (ii) a registration
relating solely to a Commission Rule 145 transaction, or (iii) a registration on
any registration form that does not permit secondary sales (such as a "universal
shelf" Form S-3), the Company will:

                (i)  promptly give to each Holder written notice thereof; and

                (ii) subject to Section 6(b) below, include in such
registration (and any related qualification under blue sky laws or other
compliance), and in any underwriting involved therein, all the Registrable
Securities specified in a written request or requests made within 15 days after
receipt of such written notice from the Company by any Holder.

            (b) Underwriting. If the registration of which the Company gives
notice is for a registered public offering involving an underwriting, the
Company shall so advise the Holders as a part of the written notice given
pursuant to Section 6(a)(i). In such event, the right of any Holder to
registration pursuant to Section 6 shall be conditioned upon such Holder's
participation in such underwriting and the inclusion of Registrable Securities
in the underwriting to the extent provided herein. All Holders proposing to
distribute their securities through such underwriting shall (together with the
Company and the other holders distributing their securities through such
underwriting) enter into and perform its obligations under an underwriting
agreement in customary form with the managing underwriter selected for such
underwriting by the Company (or by the holders who have demanded such
registration). Notwithstanding any other provision of this Section 6, if the
managing underwriter provides written notice to the Holders that it has
determined that the inclusion of all of the shares requested to be included in
the offering would adversely effect the price at which the shares can be sold,
the managing underwriter shall include in the offering the maximum number of
shares that may be included in the offering without such adverse effect as
follows (i) first, the shares requested to be sold by the Company or the holder
of securities initiating the registration, (ii) second, the shares requested to
be included in the offering by the Holders, and (iiii) third, any other shares
requested to be included. To facilitate the allocation of shares in accordance
with the above provisions, the Company or the underwriters may round the number
of shares allocated to any Holder or other holder to the nearest 100 shares. If
any Holder or other holder disapproves of the terms of any such underwriting, he
or she may elect to withdraw therefrom by written notice to the Company and

                                       4

<PAGE>   5

the managing underwriter. Any securities excluded or withdrawn from such
underwriting shall be withdrawn from such registration.

            (c) Right to Terminate Registration. The Company shall have the
right to terminate or withdraw any registration initiated by it under this
Section 6 prior to the effectiveness of such registration, whether or not any
Holder has elected to include securities in such registration.

SECTION 7   [Intentionally Omitted].

SECTION 8   Limitations on Subsequent Registration Rights. From and after the
date hereof, the Company shall not enter into any agreement granting any holder
or prospective holder of any securities of the Company registration rights with
respect to such securities that are inconsistent with the rights granted to the
Holders herein, without the consent of Holders of at least a majority of the
Registrable Securities.

SECTION 9   Expenses of Registration. All Registration Expenses incurred in
connection with any registration pursuant to Sections 5 and 6 and the reasonable
cost of one special legal counsel to represent all of the Holders together in
any such registration (not to exceed $10,000) shall be borne by the Company. All
Selling Expenses relating to securities registered on behalf of the Holders
shall be borne by the Holders of the registered securities included in such
registration pro rata on the basis of the number of shares so registered.

SECTION 10  Registration Procedures. In the case of each registration,
qualification or compliance effected by the Company pursuant to Section 5 and 6,
the Company will keep each Holder advised in writing as to the initiation of
each registration, qualification and compliance and as to the completion thereof
and, at its expense, the Company will:

            (a) Prepare and file with the Commission a registration statement
with respect to such securities;

            (b) Furnish to the Holders participating in such registration and
to the underwriters of the securities being registered such reasonable number of
copies of the registration statement, preliminary prospectus, final prospectus
and such other documents as such underwriters may reasonably request in order to
facilitate the public offering of such securities;

            (c) Prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus used in connection
with such registration statements as may be necessary to comply with the
provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement;

            (d) Notify each seller of Registrable Securities covered by such
registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event
as a result of which the prospectus included in such registration statement, as
then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statements therein not

                                       5

<PAGE>   6

misleading or incomplete in the light of the circumstances then existing, and at
the request of any such seller, prepare promptly and furnish to such seller a
reasonable number of copies of a supplement to or an amendment of such
prospectus as may be necessary so that, as thereafter delivered to the purchaser
of such shares, such prospectus shall not include an 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 not misleading or incomplete in the
light of the circumstances then existing;

            (e) Use reasonable efforts to register and qualify the securities
covered by such registration statement under such other securities or blue sky
laws of such jurisdictions as shall be reasonably requested by the Holders,
provided that the Company shall not be required in connection therewith or as a
condition thereto to qualify to do business or to file a general consent to
service of process in any such states or jurisdictions;

            (f) Make available for inspection by any Holder participating
in such registration, any underwriter participating in any disposition pursuant
to such registration, and any attorney or accountant retained by any such Holder
or underwriter, all financial and other records, pertinent corporate documents
and properties of the Company, and cause the Company's officers and directors to
supply all information reasonably requested by any such Holder, underwriter,
attorney or accountant in connection with such registration statement; provided,
however, that such Holder, underwriter, attorney or accountant shall agree to
hold in confidence and trust all information so provided; and

            (g) Use reasonable efforts to furnish, on the date that such
Registrable Securities are delivered to the underwriters for sale, if such
securities are being sold through underwriters, (i) an opinion, dated as of such
date, of the counsel representing the Company for the purposes of such
registration, in form and substance as is customarily given to underwriters in
an underwritten public offering, addressed to the underwriters, if any, and (ii)
a letter dated as of such date, from the independent certified public
accountants of the Company, in form and substance as is customarily given by
independent certified public accountants to underwriters in an underwritten
public offering, addressed to the underwriters.

SECTION 11  Indemnification.

            (a) The Company will indemnify each Holder, each of its current
and former officers and directors and partners, and each person controlling such
Holder within the meaning of Section 15 of the Securities Act, with respect to
which registration, qualification or compliance has been effected pursuant to
this Agreement, and each underwriter, if any, and each person who controls any
underwriter within the meaning of Section 15 of the Securities Act, against all
expenses, claims, losses, damages or liabilities (or actions in respect thereof)
arising out of or based on any untrue statement (or alleged untrue statement) of
a material fact contained in any registration statement, prospectus, offering
circular or other document, or any amendment or supplement thereto, incident to
any such registration, qualification or compliance, or based on any omission (or
alleged omission) to state therein a material fact required to be stated therein
or

                                       6

<PAGE>   7

necessary to make the statements therein, in light of the circumstances in
which they were made, not misleading, or any violation by the Company of any
rule or regulation promulgated under the Securities Act, Exchange Act or state
securities laws applicable to the Company in connection with any such
registration, qualification or compliance, and the Company will reimburse each
such Holder, each of its current and former officers and directors, and each
person controlling such Holder, each such underwriter and each person who
controls any such underwriter, for any legal and any other expenses reasonably
incurred in connection with investigating, preparing or defending any such
claim, loss, damage, liability or action, as such expenses are incurred,
provided that the Company will not be liable in any such case to the extent that
any such claim, loss, damage, liability or expense arises out of or is based on
any untrue statement or omission or alleged untrue statement or omission, made
in reliance upon and in conformity with written information furnished to the
Company by such Holder, controlling person or underwriter and stated to be
specifically for use therein. The indemnity agreement contained in this section
shall not apply to amounts paid in settlement of any loss, claim, damage,
liability or action if such settlement is effected without the consent of the
Company (which consent shall not be unreasonably withheld), nor shall the
Company be liable to a Holder in any such case for any such loss, claim, damage,
liability or action (1) to the extent that it arises our of or is based upon a
violation of any state or federal law which occurs in reliance upon and in
conformity with written information furnished expressly for use in connection
with such registration by or on behalf of such Holder, or (2) in the case of a
sale directly by a Holder of Registrable Securities (including a sale of such
Registrable Securities through any underwriter retained by such Holder engaging
in a distribution solely on behalf of such Holder), such untrue statement or
alleged untrue statement or omission or alleged omission was contained in a
preliminary prospectus and corrected in a final or amended prospectus, and such
Holder failed to deliver a copy of the final or amended prospectus at or prior
to the confirmation of the sale of the Registrable Securities to the person
asserting any such loss, claim, damage or liability in any case in which such
delivery is required by the Securities Act.

            (b) Each Holder will, if Registrable Securities held by such
Holder are included in the securities as to which such registration,
qualification or compliance is being effected, indemnify the Company, each of
its directors, officers and partners, each underwriter, if any, of the Company's
securities covered by such a registration statement, each person who controls
the Company or such underwriter within the meaning of Section 15 of the
Securities Act, and each other such Holder, each of its officers and directors
and each person controlling such Holder within the meaning of Section 15 of the
Securities Act, against all claims, losses, damages and liabilities (or actions
in respect thereof) arising out of or based on any untrue statement (or alleged
untrue statement) of a material fact contained in any such registration
statement, prospectus, offering circular or other document, or any omission (or
alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, and will reimburse
the Company, such Holders, such directors, officers, persons, underwriters or
control persons for any legal or any other expenses reasonably incurred in
connection with investigating or defending any such claim, loss, damage,
liability or action, as such expenses are incurred, in each case to the extent,
but only to the extent, that such untrue statement (or alleged untrue statement)
or omission (or alleged omission) is made in such registration statement,
prospectus, offering circular or other document in reliance upon and in

                                       7

<PAGE>   8

conformity with written information furnished to the Company by such Holder and
stated to be specifically for use therein; provided that in no event shall any
indemnity under this subparagraph 11(b) exceed the net proceeds received by such
Holder from the sale of Registrable Securities included in such registration.

            (c) Each party entitled to indemnification under this Section 11
(the "Indemnified Party") shall give notice to the party required to provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom, provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or litigation, shall be
approved by the Indemnified Party (whose approval shall not unreasonably be
withheld), and the Indemnified Party may participate in such defense at such
party's expense; provided, however, that an Indemnified Party (together with all
other Indemnified Parties which may be represented without conflict by one
counsel) shall have the right to retain one separate counsel, with the fees and
expenses to be paid by the Indemnifying Party, if representation of such
Indemnified Party by the counsel retained by the Indemnifying Party would be
inappropriate due to actual or potential differing interests between such
Indemnified Party and any other party represented by such counsel in such
proceeding. The failure of any Indemnified Party to give notice as provided
herein shall relieve the Indemnifying Party of its obligations under this
Section 11 only to the extent that the failure to give such notice is materially
prejudicial to an Indemnifying Party's ability to defend such action. No
Indemnifying Party, in the defense of any such claim or litigation, shall,
except with the consent of each Indemnified Party, consent to entry of any
judgment or enter into any settlement which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party
of a release from all liability in respect to such claim or litigation. The
indemnity agreements contained in this Section 11 shall not apply to amounts
paid in settlement of any loss, claim, damage, liability or action if such
settlement is effected without the consent of the Indemnifying Party, which
consent shall not be unreasonably withheld.

            (d) If the indemnification provided for in this Section 11 is
held by a court of competent jurisdiction to be unavailable to an Indemnified
Party, other than pursuant to its terms, with respect to any claim, loss,
damage, liability or action referred to therein, then the Indemnifying Party, in
lieu of indemnifying such Indemnified Party hereunder, shall contribute to the
amount paid or payable by such Indemnified Party as a result of such claim,
loss, damage, liability or action in such proportion as is appropriate to
reflect the relative fault of the Indemnifying Party on the one hand and the
Indemnified Party on the other in connection with the actions that resulted in
such claims, loss, damage, liability or action, as well as any other relevant
equitable considerations. The relative fault of the Indemnifying Party and of
the Indemnified Party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact related to information supplied by the
Indemnifying Party or by the Indemnified Party and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company and the Holders agree that it would not be
just and equitable if contribution pursuant to this Section 11(d) were based
solely upon the number of

                                       8

<PAGE>   9

entities from whom contribution was requested or by any other method of
allocation which does not take account of the equitable considerations referred
to above in this Section 11(d). In no event shall any Holder's contribution
obligation under this subparagraph 11(d) exceed the net proceeds received by
such Holder from the sale of Registrable Securities included in such
registration.

            (e) The amount paid or payable by an Indemnified Party as a result
of the losses, claims, damages and liabilities referred to above in this Section
11 shall be deemed to include any legal or other expenses reasonably incurred by
such Indemnified Party in connection with investigating or defending any such
action or claim, subject to the provisions of Section 11 hereof. Notwithstanding
the provisions of this Section 11, no Holder shall be required to contribute any
amount or make any other payments under this Agreement which in the aggregate
exceed the net proceeds (after selling expenses) received by such Holder. No
person guilty of fraudulent misrepresentation (within the meaning of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.

SECTION 12  Information by Holder. The Holder or Holders of Registrable
Securities included in any registration, shall furnish to the Company such
information regarding such Holder or Holders, the Registrable Securities held by
them and the distribution proposed by such Holder or Holders as the Company may
request in writing and as shall be required in connection with any registration,
qualification or compliance referred to in this Agreement.

      12.1. Rule 144 Reporting. With a view to making available the benefits of
certain rules and regulations of the Commission which may at any time permit the
sale of the Restricted Securities to the public without registration, Company
agrees to use its best efforts to:

            (a) Make and keep public information available, as those terms
are understood and defined in Rule 144 under the Securities Act, at all times
after the effective date that the Company becomes subject to the reporting
requirements of the Securities Act or the Exchange Act;

            (b) File with the Commission in a timely manner all reports and
other documents required of the Company under the Securities Act and the
Exchange Act (at any time after it has become subject to such reporting
requirements); and

            (c) So long as a Holder owns any Restricted Securities, to
furnish to the Holder forthwith upon request a written statement by the Company
as to its compliance with the reporting requirements of said Rule 144 (at any
time after ninety (90) days after the effective date of the first registration
statement filed by the Company for an offering of its securities to the general
public), and of the Securities Act and the Exchange Act (at any time after it
has become subject to such reporting requirements), a copy of the most recent
annual or quarterly report of the Company, and such other reports and documents
of the Company and other information in the possession of or reasonably
obtainable by the Company as a Holder may reasonably request in availing itself
of any rule or regulation of the Commission allowing a Holder to sell any such
securities without registration.

                                       9

<PAGE>   10

SECTION 13  Transfer of Registration Rights. The rights to cause the Company to
register securities granted to any party hereto under this Agreement may be
assigned to a transferee or assignee in connection with any transfer or
assignment of Registrable Securities by such party; provided that (a) such
transfer may otherwise be effected in accordance with applicable securities
laws, (b) notice of such assignment is given to the Company, and (c) such
transferee or assignee (i) is a subsidiary, affiliated partnership, affiliate or
partner or limited liability company member (including limited partners, retired
partners, spouses and ancestors, lineal descendants and siblings of such
partners or spouses who acquire Registrable Securities by gift, will or
intestate succession) of such party, or (ii) acquires from such party at least
250,000 Registrable Securities.

SECTION 14  Termination of Rights. The rights of any particular Holder to cause
the Company to register securities under Section 6 shall terminate with respect
to such Holder after the earlier of (a) the three year anniversary of this
Agreement, or (b) such time as Rule 144 or another similar exemption under the
Securities Act is available for the sale of all such Holder's shares to the
public in any and all three-month periods (other than pursuant to Rule 144(k)).

SECTION 15  Third Parties. Nothing in this Agreement, express or implied, is
intended to confer upon any party, other than the parties hereto, and their
respective successors and assigns, any rights, remedies, obligations or
liabilities under or by reason of this Agreement, except as expressly provided
herein.

SECTION 16  Governing Law. This Agreement shall be governed by and construed
under the laws of the State of Illinois without regard to choice of laws or
conflict of laws' provisions thereof.

SECTION 17  Counterparts. This Agreement may be executed in two or more
counterparts and signature pages may be delivered by facsimile, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument.

SECTION 18  Notices. All notices and other communications required or permitted
hereunder shall be in writing and shall be (A) mailed by registered or certified
mail, postage prepaid, return receipt requested, (B) delivered by a nationally
recognized overnight courier, (C) sent by confirmed telecopy or (D) otherwise
delivered by hand or by messenger, addressed (i) if to an Investor, at such
Investor's address set forth on Exhibit A, or at such other address as such
Investor shall have furnished to the Company in writing; or (ii) if to the
Company, at its address set forth on the signature page of this Agreement
addressed to the attention of the Corporate Secretary, or at such other address
as the Company shall have furnished to the Investors. If notice is provided by
mail, notice shall be deemed to be given 48 hours after proper deposit in a
mailbox; if by overnight courier, notice shall be deemed to be given 24 hours
after deposit; if by facsimile, upon completion of such facsimile transmission
as conclusively evidenced by the transmission receipt; and if by hand or
messenger, upon receipt by the addressee.

SECTION 19  Severability. If one or more provisions of this Agreement are held
to be unenforceable under applicable law, portions of such provisions, or such
provisions in their entirety, to the extent necessary, shall be severed from
this Agreement, and the balance of this Agreement shall be enforceable in
accordance with its terms.

                                       10

<PAGE>   11

SECTION 20  Amendment and Waiver. Any provision of this Agreement may be
amended or waived with the written consent of the Company and the holders of at
least a majority of the outstanding Registrable Securities provided that (i) no
such amendment shall impose or increase any liability or obligation on a holder
without the consent of such Holder and (ii) no such amendment having a
disproportionately adverse effect on any Holder in relation to the other holders
may be made without consent of such Holder. Any amendment or waiver effected in
accordance with this paragraph shall be binding upon each Holder and the
Company. In addition, the Company may waive performance of any obligation owing
to it, as to some or all of the holders, or agree to accept alternatives to such
performance, without obtaining the consent of any holder. In the event that an
underwriting agreement is entered into between the Company and any Holder, and
such underwriting agreement contains terms differing from this Agreement, as to
any such Holder the terms of such underwriting agreement shall govern.

SECTION 21  Rights of Holders. Each party to this Agreement shall have the
absolute right to exercise or refrain from exercising any right or rights that
such party may have by reason of this Agreement, including, without limitation,
the right to consent to the waiver or modification of any obligation under this
Agreement, and such party shall not incur any liability to any other party or
other Holder of any securities of the Company as a result of exercising or
refraining from exercising any such right or rights.

SECTION 22  Delays or Omissions. No delay or omission to exercise any right,
power or remedy accruing to any party to this Agreement, upon any breach or
default of the other party, shall impair any such right, power or remedy of such
non-breaching party nor shall it be construed to be a waiver of any such breach
or default, or an acquiescence therein, or of or in any similar breach or
default thereafter occurring; nor shall any waiver of any single breach or
default be deemed a waiver of any other breach or default theretofor or
thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any party of any breach or default under this
Agreement, or any waiver on the part of any party of any provisions or
conditions of this Agreement, must be made in writing and shall be effective
only to the extent specifically set forth in such writing. All remedies, either
under this Agreement, or by law or otherwise afforded to any holder, shall be
cumulative and not alternative.

SECTION 23  Titles and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

SECTION 24  Legal Fees. If any action at law or in equity (including
arbitration) is necessary to enforce or interpret the terms of this Agreement,
the prevailing party shall be entitled to reasonable attorneys' fees, costs and
necessary disbursements, including on appeal, in addition to any other relief to
which such party may be entitled.

                                       11

<PAGE>   12

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                  THE COMPANY:

                                  ELOYALTY CORPORATION

                                  By:  /s/ Timothy J. Cunningham
                                       ----------------------------------------
                                  Name:  Timothy J. Cunningham
                                  Title:  SVP & CFO

                                  Address: 205 North Michigan Avenue
                                           Suite 1500
                                           Chicago, Illinois  60601

<PAGE>   13

                                 THE INVESTORS:

         TCV IV, L.P.
         a Delaware Limited Partnership
         By:   Technology Crossover Management IV, L.L.C.,
         Its:  General Partner

         By: /s/ Robert C. Bensky
             -----------------------------------------------
             Name:  Robert C. Bensky
             Title: Attorney in Fact

         TCV IV STRATEGIC PARTNERS, L.P.
         a Delaware Limited Partnership
         By:   Technology Crossover Management IV, L.L.C.,
         Its:  General Partner

         By: /s/ Robert C. Bensky
             -----------------------------------------------
             Name:  Robert C. Bensky
             Title: Attorney in Fact

         TCV III (GP)
         a Delaware General Partnership
         By:   Technology Crossover Management III, L.L.C.,
         Its:  General Partner

         By: /s/ Robert C. Bensky
             -----------------------------------------------
             Name:  Robert C. Bensky
             Title: Chief Financial Officer

         TCV III, L.P.
         a Delaware Limited Partnership
         By:   Technology Crossover Management III, L.L.C.,
         Its:  General Partner

         By: /s/ Robert C. Bensky
             -----------------------------------------------
             Name:  Robert C. Bensky
             Title: Chief Financial Officer

         TCV III (Q), L.P.
         a Delaware Limited Partnership
         By:   Technology Crossover Management III, L.L.C.,
         Its:  General Partner

         By: /s/ Robert C. Bensky
             -----------------------------------------------
             Name:  Robert C. Bensky
             Title: Chief Financial Officer

         TCV III STRATEGIC PARTNERS, L.P.
         a Delaware Limited Partnership
         By:   Technology Crossover Management III, L.L.C.,
         Its:  General Partner

         By: /s/ Robert C. Bensky
             -----------------------------------------------
             Name:  Robert C. Bensky
             Title: Chief Financial Officer

<PAGE>   14

                                    EXHIBIT A
                                    ---------

                              SCHEDULE OF INVESTORS

         TCV IV, L.P.
         TCV IV STRATEGIC PARTNERS, L.P.
         TCV III (GP)
         TCV III, L.P.
         TCV III (Q), L.P.
         TCV III STRATEGIC PARTNERS, L.P.

Mailing Address:
         Technology Crossover Ventures
         575 High Street, Suite 400
         Palo Alto, CA 94301
         Attention:  Jay C. Hoag
         Phone:  (650) 614-8210
         Fax:    (650) 614-8222

with a copy to:
         Technology Crossover Ventures
         56  Main Street, Suite 210
         Millburn, NJ 07041
         Attention:  Robert C. Bensky
         Phone:  (973) 467-5320
         Fax:    (973) 467-5323

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