Document:

Amendment No. 1 and Waiver to Credit Agreement

 Exhibit 10.1 
  
 AMENDMENT NO. 1 AND WAIVER TO CREDIT AGREEMENT 
  
 THIS AMENDMENT NO. 1 AND WAIVER TO CREDIT AGREEMENT (this “Amendment Agreement”) is made and entered
into as of July 19, 2005, by and among REWARDS NETWORK INC., a Delaware corporation (the “Borrower”), BANK OF AMERICA, N.A., a national banking association organized and existing under the laws of the United States
(“Bank of America”), in its capacity as administrative agent for the Lenders (as defined in the Credit Agreement (as defined below)) (in such capacity, the “Agent”) and as the L/C Issuer, each of the Lenders
signatory hereto, and each of the Guarantors (as defined in the Credit Agreement) signatory hereto. 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Agent, the lenders party thereto (collectively, the “Lenders” and individually each a “Lender”) and Borrower have entered into that certain Credit Agreement dated
as of November 3, 2004 (as from time to time amended, restated, amended and restated, extended, supplemented or modified, the “Credit Agreement”; capitalized terms used herein but not otherwise defined herein shall have the meanings
assigned to such terms in the Credit Agreement), pursuant to which the Lenders have agreed to make and have made available to the Borrower a revolving credit facility in an aggregate principal amount of $50,000,000; and 
  
 WHEREAS, each of the Guarantors has entered into a Guaranty pursuant
to which it has guaranteed the payment and performance of the obligations of the Borrower under the Credit Agreement and the other Loan Documents; and 
  
 WHEREAS, Borrower has requested, among other things, (i) certain amendments and modifications to the Credit Agreement and (ii) that Defaults or
Events of Default related to certain covenants under the Credit Agreement be waived, each in the manner set forth herein, and Agent and the Lenders party hereto, subject to the terms and conditions contained herein, are willing to effect such
amendments and modifications and waivers on the terms and conditions contained in this Amendment Agreement; 
  
 NOW, THEREFORE, in consideration of the premises and further valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereby agree as follows: 
  
 1. Waiver. Without
limiting the effect of the Waiver to Credit Agreement dated as of April 25, 2005, Agent and each Lender hereby waive any and all Defaults or Events of Default pursuant to Section 8.01(b) of the Credit Agreement having occurred or to occur as
a result of a breach of Sections 6.12(a) and 6.12(b) of the Credit Agreement for the quarterly accounting period of Borrower ended March 31, 2005, including, without limitation, for purposes of Section 4.02(b) of the Credit
Agreement with respect to any Credit Extension or Request for Credit Extension by Borrower. The waiver set forth in this Section 1 is limited to the extent specifically set forth above and shall in no way serve to waive compliance with

 
Section 6.12(a) or Section 6.12(b) of the Credit Agreement for any other accounting period or to waive any other terms, covenants or provisions
of the Credit Agreement or any other Loan Document, or any obligations of Borrower, other than as expressly set forth above. 
  
 2. Amendments to Credit Agreement. Subject to the terms and conditions set forth herein, the Credit Agreement is hereby amended as follows:

  
 (a) Section 1.01 of the Credit
Agreement is hereby amended to add the following definitions to such Section, in alphabetical order: 
  
 “Collateral” means all of the assets of the Loan Parties subject to a Lien in favor of Agent, for the benefit of the
Secured Parties, pursuant to any Security Instrument. 
  
 “Secured Parties” means, collectively, with respect to each of the Security Instruments, Agent, the Lenders and such other Persons for whose benefit the Lien thereunder is conferred, as therein provided. 
  
 “Security Agreement” means the Security
Agreement in form and substance reasonably acceptable to Agent and made by the Borrower and the Guarantors in favor of the Agent for the benefit of the Secured Parties, as supplemented from time to time by the execution and delivery of Security
Agreement Joinder Agreements pursuant to Section 6.13, as the same may be otherwise supplemented, amended, modified or amended and restated. 
  
 “Security Instruments” means, collectively or individually as the context may indicate, the Security Agreement (including
the Security Joinder Agreements) and all other agreements (including control agreements), instruments and other documents, whether now existing or hereafter in effect, pursuant to which Borrower or any other Person shall grant or convey to Agent,
for the benefit of the Secured Parties, a Lien in, or any other Person shall acknowledge any such Lien in, personal property as security for all or any portion of the Obligations, any other obligation under any Loan Document and any obligation or
liability arising under any Related Credit Arrangement, as any of them may be amended, modified or supplemented from time to time. 
  
 “Security Joinder Agreement” means each Security Joinder Agreement, substantially in the form thereof attached to the
Security Agreement, executed and delivered by a Guarantor or any other Person to Agent, for the benefit of the Secured Parties, pursuant to Section 6.13. 
  
 (b) Section 1.01 of the Credit Agreement is hereby further amended to restate the definition of
“Consolidated EBITDA” in its entirety to read as follows: 
  
 “Consolidated EBITDA” means, for any period, for Borrower and its Subsidiaries on a consolidated basis, the sum of net income, less income or plus loss from, in either case, discontinued
operations and extraordinary items to the extent included in calculating net income, plus each of the following (without 

  

 - 2 - 

 
duplication), in each case to the extent deducted in calculating net income: (a) income taxes, (b) interest expense, (c) depreciation, depletion, and
amortization, (d) goodwill impairment charges and (e) restructuring charges; provided that the maximum amount permitted to be added back to net income pursuant to subsection (e) above, shall not exceed $8,500,000 for any period.

  
 (c) Section 1.01 of the Credit
Agreement is hereby further amended to restate the definition of “Loan Documents” in its entirety to read as follows: 
  
 “Loan Documents” means this Agreement, each Note, each Issuer Document, the Agent Fee Letter, the Guaranty and the
Security Instruments. 
  
 (d) Section 1.01
of the Credit Agreement is hereby further amended to restate the definition of “Maturity Date” in its entirety to read as follows: 
  
 “Maturity Date” means June 30, 2006. 
  
 (e) Section 1.01 of the Credit Agreement is hereby further amended to restate the definition of
“Related Credit Arrangements” in its entirety to read as follows: 
  
 “Related Credit Arrangements” means, collectively, with respect to any Security Instrument, Related Swap Contracts and Related Treasury Management Arrangements which provide that such Related Swap
Contracts and/or Related Treasury Management Arrangements are to be secured by such Security Instrument. 
  
 (f) Section 1.01 of the Credit Agreement is hereby further amended to restate the definition of “Related Swap Contracts”
in its entirety to read as follows: 
  
 “Related Swap Contracts” means all Swap Contracts which are entered into or maintained by any Loan Party with the Lender or Affiliate of the Lender and which are not prohibited by the express terms of the Loan Documents and
which provide by their terms that such Related Swap Contracts are to be secured by one or more Security Instruments. 
  
 (g) Section 1.01 of the Credit Agreement is hereby further amended to restate the definition of “Related Treasury Management
Arrangements” in its entirety to read as follows: 
  
 “Related Treasury Management Arrangements” means all arrangements for the delivery of treasury management services to or for the benefit of any Loan Party which are entered into or maintained with the Lender or Affiliate of
the Lender and which are not prohibited by the express terms of the Loan Documents and which provide by their terms that such Related Treasury Management Arrangements are to be secured by one or more Security Instruments. 
  

 - 3 - 

 (h) Section 2.08 of the Credit Agreement is hereby amended to restate the first
sentence of clause (c) thereof in its entirety to read as follows: 
  
 (c) Commitment Fee. Borrower shall pay to Agent for the account of each Lender in accordance with its Applicable Percentage a commitment fee equal to, (i) for the time period commencing on the Closing Date
through and including April 24, 2005, the Applicable Rate times the actual daily amount by which $50,000,000 exceeds the sum of (A) the Outstanding Amount of Loans and (B) the Outstanding Amount of L/C Obligations, and (ii) for the time
period commencing on the date of this Amendment Agreement and continuing thereafter, the Applicable Rate times the actual daily amount by which the Aggregate Commitments exceed the sum of (A) the Outstanding Amount of Loans and (B) the
Outstanding Amount of L/C Obligations. 
  
 (i)
Section 6.12 of the Credit Agreement is hereby amended to restate clause (a) thereof in its entirety to read as follows: 
  
 (a) Minimum Consolidated EBITDA. Maintain Consolidated EBITDA to be at least $10,000,000 as of the end of any period of four full
consecutive fiscal quarters of Borrower. 
  
 (j)
Section 6.12 of the Credit Agreement is hereby further amended to restate clause (b) thereof in its entirety to read as follows: 
  
 (b) Senior Debt to Consolidated EBITDA Ratio: Maintain the ratio of Senior Debt as of the last day of each fiscal quarter of
Borrower to Consolidated EBITDA for the most recently ended period of four fiscal quarters of Borrower not exceeding 1.50 to 1.00 for each fiscal quarter of Borrower commencing with the fiscal quarter ending June 30, 2005 and continuing thereafter.

  
 (k) Section 6.13 of the Credit
Agreement is hereby amended to restate such Section in its entirety to read as follows: 
  
 6.13 Security Agreement; Additional Guarantors.  
  
 (a) Promptly, but in any event no later than 60 days, after the first Credit Extension made pursuant to the
terms of this Agreement (the “Security Effective Date”), Borrower shall, and shall cause each Guarantor to, deliver to Agent each of the following: 
  
 (i) a Security Agreement duly executed by Borrower and each Guarantor (with all schedules thereto
appropriately completed); 
  
 (ii) Uniform
Commercial Code financing statements for filing in all places required by applicable law to perfect the Liens of Agent for the benefit of the Secured Parties under the Security Instruments as a first priority Lien as to items of Collateral in which
a security interest may be perfected by the filing of financing statements, and such other documents and/or evidence of other actions as may be necessary under applicable law to perfect the Liens of Agent for the benefit of the Secured Parties under
the Security Instruments as a first priority Lien in and to such other Collateral as Agent may reasonably require; and 
  

 - 4 - 

 (iii) unless Agent expressly waives such requirement, an opinion or opinions of counsel
to each Loan Party and addressed to Agent and each Lender as to the matters set forth concerning the Loan Parties and the Security Agreement (but excluding priority of the Liens granted therein) in form and substance reasonably acceptable to Agent.

  
 (b) Notify Agent at the time that any
Person becomes a Domestic Subsidiary, and promptly thereafter (and in any event within 30 days or such longer period as may be agreed to by Agent in its discretion), cause such Person to (i) become a Guarantor by executing and delivering to Agent a
Guaranty Joinder Agreement or such other document as Agent shall deem appropriate for such purpose, (ii) if such notice is given after the Security Effective Date, deliver to Agent a Security Joinder Agreement or such other document as Agent shall
deem appropriate for such purpose, and (iii) deliver to Agent documents of the types referred to in clauses (iii) and (iv) of Section 4.01(a) and favorable opinions of counsel to such Person (which shall cover, among other
things, the legality, validity, binding effect and enforceability of the documentation referred to in clauses (a) and (b)), all in form, content and scope reasonably satisfactory to Agent. 
  
 (l) Article VI is hereby further amended by adding a
new Section 6.15 to the end thereof, to read as follows: 
  
 6.15 Collateral. At any time after the Security Effective Date, promptly upon request by Agent (and in any event within 30 days of any such request), execute, acknowledge, deliver, record, re-record, file,
re-file, register and re-register, any and all such further acts, deeds, conveyances, security agreements, financing statements and continuations thereof, termination statements, notices of assignment, transfers, certificates, assurances and other
instruments as may reasonably require from time to time in order (a) to create and perfect a Lien on any personal tangible or intangible property of Borrower that is not subject to a Lien under the Security Instruments; (b) to carry out more
effectively the purposes of this Agreement or any other Loan Document, (c) to subject to the Liens created by any of the Security Instruments any of the properties, rights or interests covered by any of the Security Instruments, (d) to perfect and
maintain the validity, effectiveness and priority of any of the Security Instruments and the Liens intended to be created thereby, and (e) to better assure, convey, grant, assign, transfer, preserve, protect and confirm to the Secured Parties the
rights granted or now or hereafter intended to be granted to the Secured Parties under the Security Instruments or under any other document executed in connection therewith. 
  

 - 5 - 

 (m) Section 7.03 of the Credit Agreement is hereby amended to restate clause
(c) thereof in its entirety to read as follows: 
  
 (c) other Indebtedness in an aggregate amount outstanding not to exceed $5,000,000 at any one time; 
  
 (n) Section 7.06 of the Credit Agreement is hereby amended to delete clause (e) thereof in its entirety, with appropriate
punctuation changes in such Section. 
  
 (o)
Section 7.10 of the Credit Agreement is hereby amended to restate such Section in its entirety to read as follows: 
  
 7.10 Acquisitions. Enter into any agreement, contract, binding commitment or other arrangement providing for any Acquisition, or
take any action to solicit the tender of securities or proxies in respect thereof in order to effect any Acquisition. 
  
 (p) Section 7.12 of the Credit Agreement is hereby amended to restate such Section in its entirety to read as follows: 

 
 7.12 Payment of Subordinated Indebtedness. Make,
directly or indirectly, any payment or other distribution (whether in cash, securities or other property) of or in respect of, or otherwise satisfy, any Subordinated Liability, including on account of any purchase, redemption, retirement,
acquisition, cancellation or termination thereof, except (a) to the extent (i) required by and in accordance with the terms of the Subordinated Note Indenture and the Subordinated Notes and (ii) Borrower is allowed to make payments in the form of
junior securities pursuant to Section 5.8 of the Subordinated Note Indenture, and (b) so long as no Default exists or will exist immediately thereafter, (x) regularly scheduled payments of interest in respect of any other Subordinated Liability and
(y) redemptions of up to $10,000,000 in aggregate principal amount of Subordinated Notes; provided, in the case of this clause (y), upon giving pro forma effect to such action as of the last day of the most recently ended fiscal
quarter, no Default would have occurred as a result thereof. 
  
 (q) Section 8.01 of the Credit Agreement is hereby amended to restate clause (j) thereof in its entirety to read as follows: 
  
 (j) Invalidity of Loan Documents. Any Loan Document or any provision thereof, at any time after its
execution and delivery and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or any Loan Party contests in any manner the validity or
enforceability of any Loan Document or any provision thereof; or any Loan Party denies that it has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any Loan Document or any provision
thereof; or any Security Instrument shall for any reason fail or cease to create a valid and enforceable first priority Lien (subject to the Liens permitted by Section 7.01) on any Collateral purported to be covered thereby, except as
permitted by the terms of any Loan Document; or 
  

 - 6 - 

 (r) Section 9.10 of the Credit Agreement is hereby amended to restate such Section
in its entirety to read as follows: 
  
 9.10
Collateral and Guaranty Matters. Each Lender and the L/C Issuer hereby irrevocably authorizes Agent, at its option and in its discretion, 
  
 (a) to enter into, amend, restate, supplement or otherwise modify each of the Loan Documents to which it is a party (including, without
limitation, the Security Instruments and the Guaranty (if necessary)) and to take all action contemplated by such documents. Each Lender agrees that no Secured Party (other than Agent) shall have the right individually to seek to realize upon the
security granted by any Security Instruments or enforce its rights under the Guaranty, it being understood and agreed that such rights and remedies may be exercised solely by Agent for the benefit of the Secured Parties upon the terms of the
Security Instruments; 
  
 (b) in the event that
any Collateral is hereafter pledged by any Person as collateral security for the Obligations, to execute and deliver on behalf of the Secured Parties any Loan Document necessary or appropriate to grant and perfect a Lien on such Collateral in favor
of Agent on behalf of the Secured Parties; 
  
 (c) to release any Lien on any property granted to or held by Agent under any Loan Document (i) upon termination of the Aggregate Commitments and payment in full of all Obligations (other than contingent indemnification obligations) and the
expiration or termination of all Letters of Credit, (ii) that is sold or to be sold as part of or in connection with any sale permitted hereunder or under any other Loan Document, or (iii) subject to Section 10.01, if approved, authorized or
ratified in writing by the Required Lenders; and 
  
 (d) to release any Guarantor from its obligations under the Guaranty if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder. 
  
 Upon request by Agent at any time, each Lender and the L/C Issuer will confirm in writing Agent’s
authority to release its interest in particular types or items of property, or to release any Guarantor from its obligations under the Guaranty pursuant to this Section 9.10. 
  
 (s) Section 10.01 is hereby amended by adding a new clause (h) thereof, with appropriate
punctuation changes, to read as follows: 
  
 (h)
release all or substantially all of the Collateral without the written consent of each Lender; 
  
 3. Amendments to Schedule. Subject to the terms and conditions set forth herein, Schedule 2.01 to the Credit Agreement is hereby amended by replacing such Schedule in its entirety with Schedule 2.01
attached hereto. 
  

 - 7 - 

 4. Conditions to Effectiveness. The effectiveness of this Amendment Agreement and the amendments
and waivers provided herein is subject to the satisfaction of the following conditions precedent: 
  
 (a) Agent shall have received each of the following documents or instruments in form and substance reasonably acceptable to the Agent:

  
 (i) four (4) original counterparts of this
Amendment Agreement, duly executed by the Borrower, each Guarantor, the Agent and the Required Lenders; 
  
 (ii) an amendment fee payable to each Lender, such amendment fee for each Lender’s own account, equal to $25,000 multiplied
by each such Lender’s Applicable Percentage; and 
  
 (iii) such other documents, instruments, opinions, certifications, undertakings, further assurances and other matters as the Agent shall reasonably request; and 
  
 (b) all fees and expenses payable to Agent and the Lenders
(including the fees and expenses of counsel to Agent) estimated to date shall have been paid in full (without prejudice to final settling of accounts for such fees and expenses). 
  
 Upon satisfaction of the conditions set forth in this Section 4, this Amendment Agreement shall be effective as of the date hereof.

  
 5. Consent of the Guarantors. Each Guarantor hereby
consents, acknowledges and agrees to the amendments and the waivers set forth herein and hereby confirms and ratifies in all respects the Guaranty to which such Guarantor is a party (including without limitation the continuation of such
Guarantor’s payment and performance obligations thereunder upon and after the effectiveness of this Amendment Agreement and the amendments and waivers contemplated hereby) and the enforceability of such Guaranty against such Guarantor in
accordance with its terms. 
  
 6. Representations and
Warranties. In order to induce Agent and the Lenders to enter into this Amendment Agreement, Borrower represents and warrants to Agent and the Lenders as follows: 
  
 (a) The representations and warranties of Borrower and each other Loan Party contained in Article V
or any other Loan Document shall be true and correct on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects
as of such earlier date, and except that for purposes of this Section 4(a), the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the
most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement; 
  
 (b) Since the date of the most recent financial reports of Borrower delivered pursuant to Section 6.01 of the Credit Agreement, no
act, event, condition or 

  

 - 8 - 

 
circumstance has occurred or arisen which, singly or in the aggregate with one or more other acts, events, occurrences or conditions (whenever occurring or
arising), has had or could reasonably be expected to have a Material Adverse Effect; 
  
 (c) The Persons appearing as Guarantors on the signature pages to this Amendment Agreement constitute all Persons who are required to be
Guarantors pursuant to the terms of the Credit Agreement and the other Loan Documents, including without limitation all Persons who became Subsidiaries or were otherwise required to become Guarantors after the Closing Date, and each of such Persons
has become and remains a party to a Guaranty as a Guarantor; 
  
 (d) This Amendment Agreement has been duly authorized, executed and delivered by Borrower and Guarantors party hereto and constitutes a legal, valid and binding obligation of such parties, except as may be limited by
general principles of equity or by the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally; and 
  
 (e) After giving effect hereto, no Default or Event of Default exists or would result from the amendments
provided herein. 
  
 7. Entire Agreement. This Amendment
Agreement, together with all the Loan Documents (collectively, the “Relevant Documents”), sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior
negotiations and agreements among the parties relating to such subject matter. No promise, condition, representation or warranty, express or implied, not set forth in the Relevant Documents shall bind any party hereto, and no such party has relied
on any such promise, condition, representation or warranty. Each of the parties hereto acknowledges that, except as otherwise expressly stated in the Relevant Documents, no representations, warranties or commitments, express or implied, have been
made by any party to the other in relation to the subject matter hereof or thereof. None of the terms or conditions of this Amendment Agreement may be changed, modified, waived or canceled orally or otherwise, except in writing and in accordance
with Section 10.01 of the Credit Agreement. 
  
 8. Full
Force and Effect of Agreement. Borrower hereby acknowledges and agrees that, notwithstanding the waivers provided herein, the Credit Agreement and all of the other Loan Documents are hereby confirmed and ratified in all respects and shall remain
in full force and effect according to their respective terms. 
  
 9. Counterparts. This Amendment Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
  
 10. Governing Law. This Amendment Agreement shall in all respects be
governed by, and construed in accordance with, the internal laws, including 735 ILCS Section 105/5-1 et seq., but otherwise without regard to the conflict of laws provisions, of the State of Illinois applicable to contracts executed
and to be performed entirely within such State, and shall be further subject to the provisions of Sections 10.14 and 10.15 of the Credit Agreement. 
  

 - 9 - 

 11. Enforceability. Should any one or more of the provisions of this Amendment Agreement be
determined to be illegal or unenforceable as to one or more of the parties hereto, all other provisions nevertheless shall remain effective and binding on the parties hereto. 
  
 12. Successors and Assigns. This Amendment Agreement shall be binding upon and inure to the benefit of Borrower,
Agent and each of the Guarantors and Lenders, and their respective successors, legal representatives, and assignees to the extent such assignees are permitted assignees as provided in Section 10.06 of the Credit Agreement. 
  
 13. Expenses. Without limiting the provisions of Section 10.04
of the Credit Agreement, Borrower agrees to pay all reasonable out of pocket costs and expenses (including without limitation reasonable legal fees and expenses) incurred before or after the date hereof by the Agent and its Affiliates in connection
with the preparation, negotiation, execution, delivery and administration of this Amendment Agreement. 
  
 [Signature pages follow.] 
  

 - 10 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 and Waiver to Credit
Agreement to be duly executed by their duly authorized officers, all as of the day and year first above written. 
  

			
	BORROWER:
	
	REWARDS NETWORK INC.
		
	 By:
	 	 /s/ Kenneth R. Posner

	 Name:
	 	Kenneth R. Posner
	 Title:
	 	Senior Vice President, Finance and Administration, and Chief Financial Officer

  

 Rewards Network Inc. 

			
	GUARANTORS:
	
	IDINE MEDIA GROUP INC.
		
	 By:
	 	 /s/ Kenneth R. Posner

	 Name:
	 	Kenneth R. Posner
	 Title:
	 	Treasurer
	
	REWARDS NETWORK ESTABLISHMENT SERVICES INC.
		
	 By:
	 	 /s/ Kenneth R. Posner

	 Name:
	 	Kenneth R. Posner
	 Title:
	 	Senior Vice President and Treasurer
	
	REWARDS NETWORK INTERNATIONAL, INC.
		
	 By:
	 	 /s/ Kenneth R. Posner

	 Name:
	 	Kenneth R. Posner
	 Title:
	 	Treasurer
	
	REWARDS NETWORK SERVICES INC.
		
	 By:
	 	 /s/ Kenneth R. Posner

	 Name:
	 	Kenneth R. Posner
	 Title:
	 	Senior Vice President and Treasurer
	
	TMNI INTERNATIONAL INCORPORATED
		
	 By:
	 	 /s/ Kenneth R. Posner

	 Name:
	 	Kenneth R. Posner
	 Title:
	 	Treasurer
	
	RTR FUNDING LLC
		
	 By:
	 	 /s/ Kenneth R. Posner

	 Name:
	 	Kenneth R. Posner
	 Title:
	 	Treasurer

  

 Rewards Network Inc. 

			
	FFA ACQUISITION CORP.
		
	 By:
	 	 /s/ Kenneth R. Posner

	 Name:
	 	Kenneth R. Posner
	 Title:
	 	Treasurer

  

 Rewards Network Inc. 

			
	BANK OF AMERICA, N.A., as Agent
		
	 By:
	 	 /s/ David A. Johanson

	 Name:
	 	David A. Johanson
	 Title:
	 	Vice President

  

 Rewards Network Inc. 

			
	BANK OF AMERICA, N.A., as a Lender and L/C Issuer
		
	 By:
	 	 /s/ Chris D. Buckner

	 Name:
	 	Chris D. Buckner
	 Title:
	 	Senior Vice President

  

 Rewards Network Inc. 

			
	LASALLE BANK NATIONAL ASSOCIATION,
as a Lender
		
	 By:
	 	 /s/ Michael Perry

	 Name:
	 	Michael Perry
	 Title:
	 	Vice PresidentEmployment and Transition Agreement

 Exhibit 10.1 
  
 EMPLOYMENT AND TRANSITION AGREEMENT 
  
 THIS EMPLOYMENT AND TRANSITION AGREEMENT (the “Agreement”) is entered into as of July 14, 2005, between Old
Dominion Electric Cooperative, a Virginia utility aggregation cooperative (the “Cooperative”), and Daniel M. Walker (the “Executive”). 
  
 IN CONSIDERATION FOR the mutual promises set forth below, the parties agree as follows: 
  
 1. Term. Subject to earlier termination as provided
in Sections 2.5, 2.6 and 2.7 below, the Executive’s employment under the terms of this Agreement shall be for a term commencing on the effective date hereof and continuing through May 1, 2007 (the “Term”). 
  
 2. Employment and Transition. 
  
 2.1. Employment as Chief Financial Officer. Subject
to earlier termination as hereafter provided, the Executive shall continue to serve the Cooperative as its Chief Financial Officer from the effective date of this Agreement through December 31, 2005, and the Cooperative shall continue to pay the
Executive for his services as Chief Financial Officer a salary in the amount of $16,935.50 per month (the “Current Salary”). The Current Salary shall be payable in accordance with the Cooperative’s standard payroll practices and shall
be reduced by all required withholdings. The Executive’s duties as Chief Financial Officer shall be identical to those for which he was responsible immediately prior to the execution of this Agreement. 
  
 2.2. Transition to Senior Advisor to President.
Subject to earlier termination as hereafter provided, the Executive shall serve the Cooperative as Senior Advisor to the President commencing on January 1, 2006 (the “Transition Date”) and continuing through May 1, 2007 (the
“Retirement Date”). 
  
 (i) The
Cooperative shall pay the Executive for his services as Senior Advisor to the President a salary in the amount of $17,511.00 per month (the “Advisor’s Salary”). The Advisor’s Salary shall be payable in accordance with the
Cooperative’s standard payroll practices, beginning on the Cooperative’s next regular payday following the Transition Date, and shall be reduced by all required withholdings. The Advisor’s Salary shall not be subject to normal
employee salary adjustments at any time during the Term. 
  
 (ii) As Senior Advisor to the President, the Executive’s duties shall be to make himself available to advise and consult with the President of the Cooperative on financial, accounting, management and/or
administrative matters during regular business hours and upon reasonable prior notice given 

 
to the Executive. The Cooperative shall provide the Executive an office at an executive office center in the area known as the “West-End” of the
Richmond metropolitan area during such time that he serves as Senior Advisor to the President. 
  
 2.3. Benefit Plans and Programs. At all times during the Term, the Executive shall be entitled to participate in the following
employee benefit plans and programs maintained by or at the direction of the Cooperative, in each case to the extent he was participating in, or eligible to participate in, such plan or program immediately prior to the time of execution of this
Agreement: the Cooperative’s 401k Plan, Retirement and Security Program, 2002 Option Plan, Medical Plan, Dental Plan, and Group Life Insurance (each, a “Benefit Plan” and together, the “Benefit Plans”). The Executive’s
participation in each Benefit Plan shall be subject to (i) the terms and conditions of the plan documents for such Benefit Plan, as the same may be amended from time to time, (ii) generally applicable policies of the Cooperative and (iii) the
discretion of the Board of Directors of the Cooperative (the “Board”) or any administrative or other committee provided for in or contemplated by such Benefit Plan. If, at the expiration of the Term, the Executive elects to continue his
participation and that of his eligible dependents in the Cooperative’s group health plan under the federal law known as “COBRA” by signing and returning the election form that is provided, then, for a period of 12 months from
Retirement Date or, if earlier, until the Executive ceases to be eligible for participation under COBRA or the terms of the plan, the Cooperative will contribute the full premium cost of the Executive’s coverage and that of his eligible
dependents under such plan. 
  
 2.4. Review of
Option Plan and Agreement. The parties hereto acknowledge that the Internal Revenue Service is expected to issue additional guidance in the early fall of 2005 concerning 409(a) plans (the “Additional Guidance”). Accordingly, the
Cooperative agrees to undertake a review of its 2002 Option Plan (the “Option Plan”) and the Option Agreement in favor of the Executive dated March 1, 2002 (the “Option Agreement”) in order to determine the need to amend, restate
or terminate the Option Plan and/or the Option Agreement in light of existing authority and the Additional Guidance, which review will be completed on or before December 31, 2005 or, if later, the 60th day after the Additional Guidance is issued. If the Cooperative determines that any amendment, restatement or termination of the Option Plan and/or the Option
Agreement is necessary or appropriate, (i) the Cooperative agrees to seek to implement any such amendment, restatement or termination so as to minimize the tax liability to the Executive and to the Cooperative; and (ii) the Executive agrees that, if
his consent or agreement is required with respect to any such amendment, restatement or termination, he will not unreasonably withhold his consent or agreement. The Cooperative further agrees that if the Option Plan or the Option Agreement is
amended, restated or terminated, the Cooperative will seek to provide the Executive with a benefit that is no less valuable than the benefit to which he would have been entitled under the Option Plan and the Option 

  

 - 2 - 

 
Agreement, assuming that the Option Plan and the Option Agreement had remained in effect, unchanged, through the date when the Executive attained age sixty
two (62) and his employment with the Cooperative terminated. 
  
 2.5. Death. In the event of the Executive’s death prior to the expiration of the Term hereof, the Executive’s employment and all of his rights hereunder shall terminate, and no further payments of any
kind shall be made to him except for base salary earned and unpaid through the date of death; provided, however, that the Executive shall be entitled to any and all benefits provided under the Benefit Plans under such circumstances, subject to the
terms and conditions of the plan documents for each such Benefit Plan, as the same may be amended from time to time. 
  
 2.6. Disability. In the event of the Executive’s Disability, as defined below, prior to the expiration of the Term hereof, the
Cooperative shall thereafter have the right, upon written notice to the Executive, to terminate the employment of the Executive, in which case the date of termination shall be the date of such written notice to the Executive.
“Disability” shall mean a physical or mental disability of the Executive that prevents the Executive from substantially performing the essential functions of his position notwithstanding the provision of any reasonable
accommodation. In the event of termination of the Executive’s employment pursuant to this Section 2.6, all of the Executive’s rights hereunder shall terminate and no further payments of any kind shall be made to him except for base salary
earned and unpaid through the termination date; provided, however, that the Executive shall be entitled to any and all benefits provided under Section 2.3 under such circumstances, subject to the terms and conditions of the plan documents for each
Benefit Plan, as the same may be amended from time to time. 
  
 2.7. With Cause. If the Cooperative terminates the Executive’s employment hereunder prior to the Retirement Date with Cause (as defined below), all of the Executive’s rights hereunder shall terminate
and no further payments of any kind shall be made except for base salary earned and unpaid through the termination date; provided, however, that the Executive shall be entitled to any and all benefits provided under the Benefit Plans under such
circumstances, subject to the terms and conditions of the plan documents for each such Benefit Plan, as the same may be amended from time to time. As used herein, “Cause” shall mean (i) conviction of a felony, a crime or moral
turpitude or commission of an act of embezzlement or fraud against the Cooperative or any subsidiary or affiliate of the Cooperative or its members, (ii) deliberate dishonesty of the Executive with respect to the Cooperative or any subsidiary or
affiliate of the Cooperative or its members, (iii) willful or persistent failure of Executive to follow the direction of the Board after notice detailing the specific failure and the Executive’s failure to cure within 30 days, or (iv) material
breach by the Executive of any term or terms of this Agreement. 
  

 - 3 - 

 2.8. Surrender of Books and Records. The Executive shall upon the termination of
this Agreement for any reason, or at any other time as required by the Cooperative, immediately surrender to the Cooperative all lists, books, records, documents and other information incident to the Cooperative’s business and all other
property belonging to the Cooperative, it being distinctly understood that all such lists, books, records, documents and all such other information are the property of the Cooperative. 
  
 3. Confidential Information. The Executive agrees to comply with the policies and procedures of the
Cooperative for protecting Confidential Information and shall not, without the written consent of the Board, during or after the Term of this Agreement, disclose to any person or entity (other than a person or entity to which disclosure is required
by law or in connection with the proper performance of his duties as an officer of the Cooperative), any Confidential Information obtained by the Executive incident to his employment with the Cooperative. As used herein, Confidential Information
means any and all information of the Cooperative that is not generally known by others with whom it competes or does business, or with whom it plans to compete or do business and any and all information, publicly known in whole or in part or not,
which, if disclosed by the Cooperative would assist in competition against them; provided, however, that Confidential Information shall not include information that is generally known to the public other than as a result of unauthorized disclosure
by the Executive. The Executive hereby acknowledges that Confidential Information constitutes a unique and valuable asset of the Cooperative acquired at great time and expense by the Cooperative, and that any disclosure or other use of such
information other than for the sole benefit of the Cooperative would be wrongful and would cause irreparable harm to the Cooperative. 
  
 4. Cooperation. The Executive agrees to cooperate with the Cooperative through the Transition Date, and for up to 45 days
thereafter, to effect a smooth transition to any new Chief Financial Officer. The Executive further agrees to reasonably cooperate with the Cooperative during the Term with respect to matters arising during or related to Executive’s employment,
including without limitation all matters in connection with any governmental investigation, litigation or regulatory or other proceeding which may have arisen or which may arise during Executive’s employment. 
  
 5. Waiver of Breach. The failure of the Cooperative
at any time to require performance by the Executive of any provision hereof shall in no way affect the Cooperative’s right thereafter to enforce the same, nor shall the waiver by the Cooperative of any breach of any provision hereof be taken or
held to be a waiver of any succeeding breach of any provision or as a waiver of the provision itself. 
  
 6. Enforcement of Covenants. The Executive acknowledges that he has carefully read and considered all of the terms and conditions
of this Agreement, including the restraints imposed upon him by Section 3 hereof. The Executive agrees that such restraints are necessary for the reasonable and proper protection of the Cooperative and that each and every one is reasonable in
respect to subject matter and length of time. The 

  

 - 4 - 

 
Executive further acknowledges that the violation of any provision of Section 3 of this Agreement would cause substantial and irreparable injury to the
Cooperative and that the Cooperative would not have entered into this Agreement without such restrictions. 
  
 7. Entire Agreement; Termination of 2000 Executive Severance Agreement and Other Agreements. This Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof, and supersedes any and all prior negotiations, written or oral agreements, understandings and employment relationships, including without limitation (i) the Old Dominion
Electric Cooperative Executive Severance Agreement between the Cooperative and the Executive dated January 1, 2000 (the “2000 Executive Severance Agreement”), and (ii) any and all prior employment and employment-related agreements between
the Cooperative and the Executive. For avoidance of doubt, each of the Cooperative and the Executive hereby acknowledges and agrees that this Agreement terminates and supersedes the 2000 Executive Severance Agreement, and that the 2000 Executive
Severance Agreement is null and void and of no further force or effect. 
  
 8. Miscellaneous. No rights or obligations hereunder may be assigned by either party without the prior written consent of the other, except that the Cooperative may assign its rights and obligations hereunder
to any purchaser of all or substantially all of the assets of the Cooperative or any successors or assigns of the Cooperative by way of acquisition, merger or consolidation of the Cooperative by, with or into any other corporation or other entity.
This Agreement shall inure to the benefit of and be binding upon any successors and assigns of the Cooperative, including without limitation pursuant to any acquisition, merger or consolidation of the Cooperative by or with a new entity. If any
provision of this Agreement shall to any extent be declared invalid or legally unenforceable by a court of competent jurisdiction, the same shall not affect in any respect whatsoever the validity and enforceability of the remainder of this
Agreement, and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. This Agreement cannot be amended, modified or supplemented in any respect except by an agreement in writing signed by the
Executive and an expressly authorized representative of the Cooperative. This Agreement shall be governed by, and construed in accordance with, the internal laws of the Commonwealth of Virginia, without resort to choice-of-law principles.

  
 9. Legal Counsel. LeClair Ryan, a
Professional Corporation, has acted as counsel to the Cooperative in the preparation and negotiation of this Agreement. Cantor Arkema, P.C. has acted as counsel to Executive in the preparation and negotiation of his Agreement. The Executive
acknowledges that neither the Cooperative nor its counsel has made representations or given any advice with respect to the tax or other consequences of this Agreement or any transactions contemplated by this Agreement to him, and that he has been
advised solely by Cantor Arkema, P.C. with respect to such consequences. Each party agrees that he or it has been actively advised by its respective independent counsel and that in any construction or interpretation of this Agreement the same shall
not be construed against any party on the basis that the party was the drafter or any other basis. 
  

 - 5 - 

 IN WITNESS WHEREOF, the undersigned have executed this Employment and Transition Agreement effective as
of the date first set forth above. 
  

					
	 EXECUTIVE
	 	 OLD DOMINION ELECTRIC COOPERATIVE

			
	 /s/ Daniel M. Walker

	 	 By:
	 	 /s/ Jackson E. Reasor

	 Daniel M. Walker
	 	 Its:
	 	 President and Chief Executive Officer

  

 - 6 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]