Document:

Employment Agreement

 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (this “Agreement”) is entered into as of September 13, 2005 (the “Effective Date”) between Rewards Network
Inc., a Delaware corporation (the “Corporation”), and Ronald L. Blake (the “Executive”). In consideration of the premises and the mutual agreements contained herein, the Corporation and the Executive hereby agree as follows:

  
 1. Employment. The Executive has been employed
as the President and Chief Executive Officer of the Corporation since March 29, 2005. As of the Effective Date, the Corporation and the Executive hereby agree to continue such employment upon the terms and subject to the conditions contained in this
Agreement. The term of employment of the Executive by the Corporation pursuant to this Agreement shall commence on the Effective Date and, unless earlier terminated pursuant to Section 4 hereof, shall end on December 31, 2008 (the “Employment
Period”). If the Executive remains employed by the Corporation following the expiration of the Employment Period, such employment shall be “at will,” and may be terminated by the Corporation or the Executive at any time, for any
reason or for no reason; provided that Sections 4 through 12 of the Agreement shall remain in effect following the expiration of the Employment Period. 
  
 2. Position and Duties; Responsibilities. (a) Position and Duties. The Corporation shall continue to employ the Executive during the
Employment Period as its President and Chief Executive Officer. The Executive shall report to the Board of Directors of the Corporation (the “Board of Directors”); provided that after a Change in Control, as defined in Section 5, the
Executive may be required to report to the board of directors or an executive officer of the successor corporation. During the Employment Period, the Executive shall perform faithfully and loyally and to the best of the Executive’s abilities
the duties assigned to the Executive hereunder and shall devote the Executive’s full business time, attention and effort to the affairs of the Corporation and its subsidiaries and shall use the Executive’s reasonable best efforts to
promote the interests of the Corporation and its subsidiaries. The Executive may engage in charitable, civic or community activities, continue to serve as a director of VelociTel, Inc., as a trustee of Alverno College and as the Chairman and
director of the Foundation for Independent Higher Education and, with the prior approval of the Chairman and the Corporate Governance Committee of the Board of Directors, serve as a director of other business or not-for-profit corporations, provided
that such activities or service do not materially interfere with the Executive’s duties hereunder or violate the terms of any of the covenants contained in Sections 7 through 11 hereof. 
  
 (b) Responsibilities. As President and Chief Executive Officer, the
Executive shall have the authority and responsibilities as are provided for in the Bylaws of the Corporation and as may be assigned to him from time to time by the Board of Directors. 
  
 3. Compensation. (a) Base Salary. During the Employment Period, the Corporation shall pay to the
Executive a base salary at the rate of $540,000 per annum, payable in accordance with the Corporation’s executive payroll policy. Such base salary shall be reviewed annually by the Compensation Committee of the Board of Directors for possible
merit increases. The Executive’s annual base salary in effect from time to time under this Section 3(a) is hereinafter referred to as the Executive’s “Base Salary.” 
  
  

 (b) Annual Performance Bonus. Beginning with the 2005 fiscal year, the Executive shall be eligible
during the Employment Period for an annual performance bonus which upon the attainment of target performance objectives shall be equal to 100% of the Executive’s Base Salary; provided that for the 2005 fiscal year such bonus shall be prorated
for the period beginning March 29, 2005 through December 31, 2005. The actual performance bonus payable for 2005 and for any subsequent year shall be based upon performance criteria established and approved by the Compensation Committee of the Board
of Directors. 
  
 (c) Other Benefits. During the Employment
Period, the Executive shall be entitled to participate in the Corporation’s employee benefit plans generally available to executives of the Corporation (such benefits being hereinafter referred to as the “Employee Benefits”). The
Executive shall be entitled to take time off for vacation or illness in accordance with the Corporation’s policies and to receive all fringe benefits and perquisites as are from time to time made generally available to senior executives of the
Corporation, provided that beginning March 29, 2005 and throughout the Employment Period the Executive shall accrue vacation at a rate of not less than five weeks per year, which if unused shall not carry over to subsequent years. At the end of each
calendar month during the period beginning on the Effective Date and ending on the date on which the Executive becomes eligible to participate in the Corporation’s group health plan, the Corporation shall make a cash payment to the Executive in
an amount equal to $1,000, in lieu of coverage under the Corporation’s group health plan. 
  
 (d) Equity Compensation. During the Employment Period, the Executive shall be eligible for equity compensation awards under the Corporation’s 2004 Long-Term Incentive Plan, as amended (the “2004
LTIP”), or such other plans as may be maintained by the Corporation from time to time, in such amounts and subject to such terms as shall be commensurate with awards granted to senior executives of the Corporation. All equity compensation
awards granted to Executive shall become fully vested upon a Change in Control, as defined in Section 5. In connection with the Executive entering into this Agreement, the Corporation shall grant to the Executive the following equity compensation
awards: 
  

	 	(i)	As soon as administratively practicable after the Effective Date, the Corporation shall grant to the Executive stock options to purchase an aggregate of 250,000 shares of common
stock of the Corporation (“Common Stock”), at an exercise price of $7.50 per share (or, if higher, the fair market value of a share of Common Stock on the date of grant). Each such option shall become vested and exercisable (A) as of
December 31, 2006, with respect to 40% of the shares subject to such option, (B) as of December 31, 2007, with respect to 30% of the shares subject to such option and (C) as of December 31, 2008, with respect to 30% of the shares subject to such
option, provided the Executive remains in continuous employment with the Corporation through each respective vesting date. 

  

	 	(ii)	On or before January 31, 2006, the Corporation shall grant to the Executive a restricted stock unit award which shall entitle the Executive to 

  

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	 	    	receive an aggregate of 250,000 shares of Common Stock, to the extent such restricted stock units become vested. Such restricted stock units shall become vested with respect to
186,000 shares of Common Stock as of December 31, 2006, and 64,000 shares of Common Stock as of December 31, 2007, provided that (A) the Executive remains in continuous employment with the Corporation through each respective vesting date and (B) the
Corporation attains applicable performance goals established by the Compensation Committee of the Board of Directors for the periods prior to each respective vesting date. 

  

	 	(iii)	Subject to the annual grant limits under the Corporation’s 2004 LTIP, the Corporation shall endeavor to grant to the Executive as soon as practicable after June 1, 2006, but in
all events shall grant to the Executive on or before January 5, 2007, a restricted stock unit award which shall entitle the Executive to receive an aggregate of 215,000 shares of Common Stock, to the extent such restricted stock units become vested.
Such restricted stock units shall become vested with respect to 75,500 shares of Common Stock as of December 31, 2007, and 139,500 shares of Common Stock as of December 31, 2008, provided that (A) the Executive remains in continuous employment with
the Corporation through each respective vesting date and (B) the Corporation attains applicable performance goals established by the Compensation Committee of the Board of Directors for the periods prior to each respective vesting date.

  

	 	(iv)	The number of shares subject to each of the awards set forth in this Section 3(d), and the number of shares which are scheduled to become vested on each of the dates specified in
this Section 3(d), shall be adjusted in accordance with Section 4(c) of the 2004 LTIP to reflect any change in the capitalization of the Corporation. 

  
 (e) Annual Physical. During the Employment Period, the Corporation shall reimburse the Executive for the cost of an
annual physical examination, to the extent not covered by the Corporation’s group health plan. 
  
 (f) Expense Reimbursement. The Corporation shall reimburse the Executive, in accordance with the Corporation’s policies and procedures, for
all documented, reasonable expenses incurred by the Executive during the Employment Period in the performance of the Executive’s duties hereunder. 
  
 (g) Indemnification. Effective April 26, 2005, the Corporation and the Executive entered into the Rewards Network Inc. Indemnification Agreement
(the “Indemnification Agreement”). Nothing in this Agreement shall be construed to supersede the Indemnification Agreement. 
  
 4. Termination. (a) Death. Upon the death of the Executive while employed by the Corporation, all rights of the Executive and the
Executive’s heirs, executors and administrators to compensation and other benefits under this Agreement shall cease immediately, except that the Executive’s heirs, executors or administrators, as the case may be, shall be entitled to:

  

	 	(i)	accrued Base Salary through and including the Executive’s date of death; 

  

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	 	(ii)	the amount of any bonus earned and payable but not yet paid for the fiscal year prior to the year in which the Executive’s death occurs; and 

  

	 	(iii)	other Employee Benefits to which the Executive was entitled on the date of death in accordance with the terms of the plans and programs of the Corporation. 

 
 (b) Disability. The Corporation may, at its option, terminate the
Executive’s employment at any time upon written notice to the Executive if the Executive, because of physical or mental incapacity or disability, fails to perform the essential functions of the Executive’s position. The Executive shall be
deemed disabled for purposes of this Section 4(b) if he becomes eligible for benefits under the Corporation’s long-term disability plan. Upon such termination, the Executive’s entitlement to compensation and benefits shall cease
immediately, except that the Executive shall be entitled to: 
  

	 	(i)	accrued Base Salary through and including the effective date of the Executive’s termination of employment; 

  

	 	(ii)	the amount of any bonus earned and payable but not yet paid for the fiscal year prior to the year in which the Executive’s termination of employment occurs; and

  

	 	(iii)	other Employee Benefits to which the Executive is entitled upon termination of employment in accordance with the terms of the plans and programs of the Corporation.

  
 (c) Cause. The Corporation may, at its
option, terminate the Executive’s employment at any time for Cause (as hereinafter defined) upon written notice to the Executive. As used in this Agreement, the term “Cause” shall mean any one or more of the following: 
  

	 	(i)	any willful refusal by the Executive to follow lawful directives of the Board of Directors which are consistent with the scope and nature of the Executive’s duties and
responsibilities as set forth herein; provided that an isolated, insubstantial or inadvertent action or failure which is remedied by the Executive within 10 days after written notice from the Board of Directors shall not constitute Cause hereunder;

  

	 	(ii)	the Executive’s conviction of, or plea of guilty or nolo contendere to, a felony or of any crime involving moral turpitude, fraud or embezzlement; 

  

	 	(iii)	any gross negligence or willful misconduct of the Executive resulting in a material loss to the Corporation or any of its subsidiaries, or material damage to the reputation of the
Corporation or any of its subsidiaries; 

  

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	 	(iv)	any material breach by the Executive of any one or more of the covenants contained in Sections 7 through 11 hereof; or 

  

	 	(v)	any violation of any statutory or common law duty of loyalty to the Corporation or any of its subsidiaries. 

  
 The exercise of the right of the Corporation to terminate this Agreement pursuant to this
Section 4(c) shall not abrogate the rights or remedies of the Corporation in respect of the breach giving rise to such termination. If the Corporation terminates the Executive’s employment for Cause, the Executive’s entitlement to
compensation and benefits shall cease immediately, except that the Executive shall be entitled to the payments and benefits specified in Sections 4(b)(i), 4(b)(ii) and 4(b)(iii) hereof. 
  
 (d) Termination Without Cause. The Corporation may, at its option, terminate the Executive’s employment at any
time upon written notice to the Executive for a reason other than a reason set forth in Section 4(a), 4(b) or 4(c). Any such termination shall be authorized by the Board of Directors. If the Corporation terminates the Executive’s employment for
any such reason, the Executive’s entitlement to compensation and benefits shall cease immediately, except that the Executive shall be entitled to: 
  

	 	(i)	the payments and benefits specified in Sections 4(b)(i), 4(b)(ii) and 4(b)(iii) hereof; 

  

	 	(ii)	continuation of the Executive’s Base Salary for a period of 12 months after the effective date of the Executive’s termination of employment; provided that if the
termination of the Executive’s employment pursuant to this Section 4(d) occurs within 12 months after a Change in Control, as defined in Section 5, the Executive’s Base Salary payable pursuant to this clause (ii) shall continue for a
period of 18 months, rather than 12 months, after the effective date of the Executive’s termination of employment; 

  

	 	(iii)	continued coverage of the Executive and his spouse and dependents under the Corporation’s group health plan for 18 months after the effective date of the Executive’s
termination of employment, at no cost to the Executive but otherwise on the same basis as such plan is offered to active employees of the Corporation, and following the expiration of such period the right to elect continued coverage under such plan
pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”); and 

  

	 	(iv)	the continued right to exercise any outstanding vested options held by the Executive to purchase shares of Common Stock for a period of 90 days after the effective date of the
Executive’s termination of employment. 

  
 (e)
Voluntary Termination. Upon 60 days prior written notice to the Corporation (or such shorter period as may be permitted by the Board of Directors), the Executive may voluntarily terminate the Executive’s employment at any time for any
reason. If the Executive voluntarily terminates the Executive’s employment pursuant to this Section 4(e), 
  

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 the Executive’s entitlement to compensation and benefits shall cease immediately, except that the Executive shall be
entitled to the payments and benefits specified in Sections 4(b)(i), 4(b)(ii) and 4(b)(iii) hereof. 
  
 (f) Termination for Good Reason. Upon 30 days prior written notice to the Corporation (or such shorter period as may be permitted by the Board of
Directors), the Executive may voluntarily terminate the Executive’s employment at any time with Good Reason (as hereinafter defined). If the Executive voluntarily terminates the Executive’s employment pursuant to this Section 4(f), the
Executive’s entitlement to compensation and benefits shall cease immediately, except that the Executive shall be entitled to: 
  

	 	(i)	the payments and benefits specified in Sections 4(b)(i), 4(b)(ii) and 4(b)(iii) hereof; 

  

	 	(ii)	continuation of the Executive’s Base Salary for a period of 12 months after the effective date of the Executive’s termination of employment; provided that if the
termination of the Executive’s employment pursuant to this Section 4(f) occurs within 12 months after a Change in Control, as defined in Section 5, the Executive’s Base Salary payable pursuant to this clause (ii) shall continue for a
period of 18 months, rather than 12 months, after the effective date of the Executive’s termination of employment; 

  

	 	(iii)	continued coverage of the Executive and his spouse and dependents under the Corporation’s group health plan for 18 months after the effective date of the Executive’s
termination of employment, at no cost to the Executive but otherwise on the same basis as such plan is offered to active employees of the Corporation, and following the expiration of such period the right to elect continued coverage under such plan
pursuant to COBRA; and 

  

	 	(iv)	the continued right to exercise any outstanding vested options held by the Executive to purchase shares of Common Stock for a period of 90 days after the effective date of the
Executive’s termination of employment. 

  
 As used in this
Agreement, a termination of the Executive’s employment with “Good Reason” shall mean a termination by the Executive pursuant to a written notice delivered to the Corporation within 30 days after the occurrence of any one or more of
the following events, occurring without the written consent of the Executive, provided that an isolated, insubstantial or inadvertent action or failure which is remedied by the Corporation within 30 days after receipt of such notice given by the
Executive shall not constitute Good Reason: 
  

	 	(A)	a material diminution in the Executive’s duties and responsibilities that is inconsistent with his position as President and Chief Executive Officer of the Corporation, which
prior to a Change in Control shall include an adverse change in the Executive’s reporting responsibilities; 

  

	 	(B)	any requirement by the Corporation that the Executive’s principal office be located more than 50 miles outside of the greater Chicago metropolitan area; or

	

  

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	 	(C)	any material breach of this Agreement by the Corporation. 

  
 (g) Payments in Lieu of Other Severance Rights. The severance payments provided hereunder shall be made in lieu of any other severance payments
under any severance agreement, plan, program or arrangement of the Corporation applicable to the Executive. 
  
 (h) Payments Contingent on Release. Notwithstanding anything to the contrary, no amount shall be payable to the Executive (or the Executive’s
executor or other legal representative in the case of the Executive’s death or disability) pursuant to Section 4, other than the payments and benefits described in Sections 4(b)(i), 4(b)(ii) and 4(b)(iii), unless and until eight days after the
Executive (or the Executive’s executor or other legal representative in the case of the Executive’s death or disability) executes and delivers to the Corporation, in accordance with Section 15, a general waiver and release of claims
against the Corporation and its affiliates (other than any claims related to the enforcement of the Executive’s rights under this Agreement) in a form prescribed by the Corporation; provided such release (A) is executed and delivered to
the Corporation within 22 days of the Executive’s cessation of employment, or such longer period of time permitted by the Board of Directors in its sole discretion and (B) and is not revoked by the Executive (or the Executive’s executor or
other legal representative in the case of the Executive’s death or disability) within the revocation period, if any, made available by the Corporation with respect to such release. 
  
 (i) Compliance with Section 409A. The timing of the payments or benefits provided herein shall be modified as
necessary to comply with Section 409A of the Internal Revenue Code of 1986, as amended. 
  
 5. Definition of Change in Control. For purposes of this Agreement, a “Change in Control” shall be deemed to have occurred if: 
  
 (a) any person (as defined in Sections 3(a)(9) and 13(d)(3) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)), other than the Corporation, Equity Group Investments, L.L.C. (“EGI”), an affiliate of the Corporation or EGI or an employee benefit plan of the Corporation, acquires directly or indirectly the beneficial
ownership (within the meaning of Rule 13d-3 promulgated pursuant to the Exchange Act) of any voting security of the Corporation and immediately after such acquisition such person is, directly or indirectly, the beneficial owner of voting securities
representing 50 percent or more of the total voting power of all of the then-outstanding voting securities of the Corporation; 
  
 (b) the individuals (i) who constitute the Board of Directors as of the Effective Date (the “Original Directors”) or (ii) who thereafter are
elected to the Board of Directors and whose election, or nomination for election, to the Board of Directors was approved by a vote of a majority of the Original Directors then still in office (such directors becoming “Additional Original
Directors” immediately following their election) or (iii) who are elected to the Board of Directors and whose election, or nomination for election, to the Board of Directors was approved by a vote of a majority of the Original Directors and
Additional Original Directors then still in 
  

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 office (such directors also becoming “Additional Original Directors” immediately following their election)
(such individuals being the “Continuing Directors”), cease for any reason to constitute a majority of the members of the Board of Directors; 
  
 (c) the stockholders of the Corporation shall approve a merger, consolidation, recapitalization, or reorganization of the Corporation, a reverse stock
split of outstanding voting securities, or consummation of any such transaction if stockholder approval is not sought or obtained, other than any such transaction which would result in at least 50 percent of the total voting power represented by the
voting securities of the surviving entity outstanding immediately after such transaction being beneficially owned (within the meaning of Rule 13d-3 promulgated pursuant to the Exchange Act) by the holders of outstanding voting securities of the
Corporation immediately prior to the transaction, with the voting power of each such continuing holder relative to other such continuing holders not substantially altered in the transaction; or 
  
 (d) the stockholders of the Corporation shall approve a plan of complete
liquidation of the Corporation or an agreement for the sale or disposition by the Corporation of all or a substantial portion of the Corporation’s assets (i.e., 50 percent or more of the total assets of the Corporation). 
  
 6. Federal and State Withholding. The Corporation shall deduct
from the amounts payable to the Executive pursuant to this Agreement the amount of all required federal, state and local withholding taxes in accordance with the Executive’s Form W-4 on file with the Corporation, and all applicable federal
employment taxes. 
  
 7. Return of Corporation
Property. Immediately upon the effective date of the termination of the Executive’s employment for any reason (the “Termination Date”), the Executive shall return to the Corporation all property of the Corporation or any of
its affiliates in the Executive’s possession, custody or control, whether at the office or off premises, including, but not limited to, confidential information of the Corporation or any of its affiliates, computer equipment, and software.

  
 8. Protection of Proprietary Interests. (a) The
Executive agrees that for a period of 12 months after the Termination Date or, if longer, the period following a Change in Control during which the Executive is entitled to receive severance pay pursuant to Section 4(d) or 4(f) (the “Restricted
Period”), the Executive will not, directly or indirectly, on behalf of the Executive or any other person, company or entity, solicit or participate in soliciting, products or services competitive with or similar to products or services offered
by, manufactured by, designed by or distributed by the Corporation or any of its subsidiaries to any person, company or entity which was customer, merchant, member or partner of the Corporation or any of its subsidiaries for such products or
services at any time during the last 12 months of the Executive’s employment with the Corporation. 
  
 (b) The Executive agrees that during the Restricted Period, the Executive will not directly or indirectly, in any capacity, provide products or services
competitive with or similar to products or services offered by the Corporation or any of its subsidiaries to any person, company or entity which was a customer, merchant, member or partner of the Corporation or any of its subsidiaries for such
products or services at any time during the last 12 months of the Executive’s employment with the Corporation. 
  

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 (c) The Executive agrees that during the Restricted Period, the Executive will not in any capacity sell,
manage, supervise or offer products or services competitive with or similar to the merchant marketing, restaurant financing or merchant rewards business of the Corporation or any of its subsidiaries in any territory in which the Corporation has at
any time engaged in or contemplated any business activities. 
  
 (d) The Executive agrees that during the Restricted Period, the Executive will not directly or indirectly hire, solicit or attempt to persuade any employee of the Corporation or any of its subsidiaries, or any person who was an employee of
the Corporation or any of its subsidiaries within the two months preceding contact between the Executive and that person, to leave the employ of the Corporation or any of its subsidiaries or otherwise interfere with the performance of his or her
duties for the Corporation or any of its subsidiaries. General solicitations in media outlets shall not be considered improper solicitations under this subsection. 
  
 (e) The Executive agrees that during the Restricted Period, the Executive will not directly or indirectly, on behalf of the
Executive or any other person, company or entity, participate in the development of any products or services similar to or competitive with products or services of the Corporation or any of its subsidiaries with which the Executive had product or
service research or development responsibilities during the last 12 months of the Executive’s employment with the Corporation. 
  
 9. Future Cooperation. After the Termination Date, the Executive will cooperate with, and assist the Corporation in any investigations,
proceedings or actions relating to any matters in which he was involved or had knowledge while employed by the Corporation, subject to reimbursement for approved expenses and continued indemnification pursuant to the Corporation’s
directors’ and officers’ liability insurance policy for liabilities resulting from such cooperation and assistance (to the same extent the Corporation provides such coverage for its directors and executive officers). 
  
 10. Nondisparagement. The Executive shall not make any
disparaging public statements about the Corporation, its affiliates or their management, directors, employees, agents, businesses or business practices. The Corporation shall not make any disparaging public statements about the Executive.

  
 11. Disclosure of Confidential Information. The
Executive will not, without the Corporation’s prior permission, directly or indirectly disclose to anyone outside of the Corporation any trade secrets or other confidential information of the Corporation or any of its affiliates, or any
information received in confidence from third parties by the Corporation or any of its affiliates or about third parties by the Corporation or any of its affiliates, as long as such matters remain trade secrets or confidential. Trade secrets and
other confidential information shall include any information or material which has not been made available generally to the public and which (a) is generated or collected by or utilized in the operations of the Corporation or any of its affiliates
and relates to the actual or anticipated business or research or development of the Corporation or any of its affiliates; or (b) is suggested by or results from any task assigned to the Executive by the Corporation or work performed by the Executive
for or on behalf of the Corporation. 
  

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 12. Enforcement. The parties hereto agree that the Corporation and its affiliates would be
damaged irreparably in the event that any provision of Sections 7 through 11 of this Agreement were not performed in accordance with its terms or were otherwise breached and that money damages would be an inadequate remedy for any such
nonperformance or breach. Accordingly, the Corporation and its successors and permitted assigns shall be entitled, in addition to other rights and remedies existing in their favor, to seek an injunction or injunctions to prevent any breach or
threatened breach of any of such provisions and to enforce such provisions specifically (without posting a bond or other security). The Executive agrees that the Executive will submit to the personal jurisdiction of the courts of the State of
Illinois in any action by the Corporation to obtain interim injunctive or other relief. 
  
 13. Representations. The Executive represents and warrants to the Corporation that (a) the execution, delivery and performance of this Agreement by the Executive does not and will not conflict with,
breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which the Executive is a party or by which the Executive is bound, (b) the Executive is not a party to or bound by any employment agreement,
noncompetition agreement or confidentiality agreement with any other person or entity that would interfere with the execution, delivery or performance of this Agreement by the Executive, and (c) upon the execution and delivery of this Agreement by
the Corporation, this Agreement shall be the valid and binding obligation of the Executive, enforceable in accordance with its terms. 
  
 14. Survival. (a) Section 4 and Sections 7 through 12 of this Agreement shall survive and continue in full force and effect in accordance
with their terms, notwithstanding any termination of the Employment Period. 
  
 (b) The vesting of equity awards upon a Change in Control pursuant to Section 3(d) shall continue, notwithstanding any termination of the Employment Period, to the extent the Executive is employed immediately prior to
such Change in Control. 
  
 15. Notices. All notices
and other communications required or permitted hereunder shall be in writing and shall be deemed given when (a) delivered personally or by overnight courier to the following address of the other party hereto (or such other address for such party as
shall be specified by notice given pursuant to this Section) or (b) sent by facsimile to the following facsimile number of the other party hereto (or such other facsimile number for such party as shall be specified by notice given pursuant to this
Section), with the confirmatory copy delivered by overnight courier to the address of such party pursuant to this Section 15: 
  
 If to the Corporation, to: 
  
 Rewards Network Inc. 
 Attention: General Counsel 
 2 North Riverside Plaza, Suite 950 
 Chicago, IL 60606 
  

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 If to the Executive, to the last known mailing address for the Executive contained in the records of the
Corporation. 
  
 16. Severability. Whenever
possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under applicable
law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of any other provision of this Agreement or the validity, legality or enforceability of such provision in any
other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein. 
  
 17. Entire Agreement. This Agreement constitutes the entire
agreement and understanding between the parties with respect to the subject matter hereof and, except for the Indemnification Agreement, supersedes and preempts any prior understandings, agreements or representations by or between the parties,
written or oral, which may have related in any manner to the subject matter hereof. 
  
 18. No Mitigation. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions
of this Agreement, and such amounts shall not be reduced whether or not the Executive obtains other employment. 
  
 19. Successors and Assigns. This Agreement shall be enforceable by the Executive and the Executive’s heirs, executors, administrators
and legal representatives, and by the Corporation and its successors and assigns. 
  
 20. Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Illinois without regard to principles of conflict of laws.

  
 21. Amendment and Waiver. The provisions of this
Agreement may be amended or waived only by the written agreement of the Corporation and the Executive, and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement. 
  
 22.
Counterparts. This Agreement may be executed in two counterparts, each of which shall be deemed to be an original and both of which together shall constitute one and the same instrument. 
  
 23. Attorney’s Fees. The Corporation shall reimburse the
Executive for reasonable legal fees incurred by the Executive in the review and negotiation of this Agreement, in an amount not to exceed $10,000. 
  

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

  

			
	REWARDS NETWORK INC.
		
	By:	 	 /s/ Bryan R. Adel

	Name:	 	Bryan R. Adel
	Title:	 	 Senior Vice President, General Counsel,
 Corporate
Secretary and Chief Privacy Officer

	
	EXECUTIVE
		
	 	 	 /s/ Ronald L. Blake

	 	 	Ronald L. Blake

  

 12Form of Chaparral Steel Company 10% Senior Exchange Note

 Exhibit 4.6 
  

[Face of Note] 
  
 [INSERT APPROPRIATE LEGENDS] 

	
	CUSIP [                    ]
	**$                    **

  
 CHAPARRAL STEEL COMPANY

  
 10% Senior Exchange Notes due 2013 
  
 Issue Date: 
  
 Chaparral Steel Company, a Delaware corporation (the “Company”, which term includes any successor under the
Indenture hereinafter referred to), for value received, promises to pay to CEDE & CO., or its registered assigns, the principal sum of [Amount of Note] ($            ) on July
15, 2013. 
  
 Interest Payment Dates: January 15 and July 15, commencing January
15, 2006. 
  
 Record Dates: January 1 and July 1. 
  
 Reference is hereby made to the further provisions of this Note set forth on
the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
  
 [ATTACH NOTATION OF GUARANTEE FOR EACH GUARANTOR] 

 IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by its duly authorized
officers. 
  

			
	 CHAPARRAL STEEL COMPANY

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  
 (Trustee’s
Certificate of Authentication) 
  
 This is one of the 10% Senior Exchange Notes
due 2013 described in the within-mentioned Indenture. 
  
 Dated: 
  

			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,

	 as Trustee

		
	 By:
	 	  

	 	 	Authorized Signatory

 [Reverse Side of Note] 
  
 CHAPARRAL STEEL COMPANY 
  
 10% Senior Exchange Notes due 2013 
  
 Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 
  
 1. Interest. The Company promises to pay interest on the principal
amount of this Note at 10% per annum from the date hereof until maturity and shall pay the Liquidated Damages, if any, payable pursuant to Section 5 of the Registration Rights Agreement referred to below. The Company shall pay interest and
Liquidated Damages, if any, semi-annually in arrears on January 15 and July 15 of each year, or if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest Payment Date”). Interest on the Notes
shall accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of original issuance; provided that if there is no existing Default in the payment of interest, and if this Note is
authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date; provided further that the first Interest Payment Date
shall be January 15, 2006. The Company shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at a rate that is 1% per annum in excess of
the rate then in effect; it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Liquidated Damages (without regard to any applicable grace periods) from time to
time on demand at the same rate to the extent lawful. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. 
  
 2. Method of Payment. The Company shall pay interest on the Notes (except defaulted interest) and Liquidated Damages, if any, to the Persons who
are registered Holders of Notes at the close of business on the record date immediately preceding the Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in
Section 2.13 of the Indenture with respect to defaulted interest. The Notes shall be payable as to principal, premium and Liquidated Damages, if any, and interest at the office or agency of the Company maintained for such purpose in The City of New
York, or, at the option of the Company, payment of interest and Liquidated Damages, if any, may be made by check mailed to the Holders at their addresses set forth in the register of Holders, and provided that payment by wire transfer of
immediately available funds shall be required with respect to principal of and interest, premium and Liquidated Damages, if any, on, all Global Notes and to any Holder of $1.0 million or more of Notes which shall have provided wire transfer
instructions to the Company or the Paying Agent. Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 
  
 3. Paying Agent and Registrar. Initially, the Trustee under the
Indenture shall act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar without notice to any Holder. The Company or any of its Subsidiaries may act in any such capacity. 
  
 4. Indenture. The Company issued the Notes under an Indenture dated as
of July 6, 2005 (“Indenture”) among the Company, the Guarantors and the Trustee. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended. The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions
of the Indenture shall govern and be controlling. The Indenture pursuant to which this Note is issued provides that an unlimited aggregate principal amount of Additional Notes may be issued thereunder. 
  
 5. Optional Redemption. Except as otherwise set forth in this
paragraph, the Company shall not have the option to redeem any Notes prior to July 15, 2009. Thereafter, the Company shall have the option to redeem the Notes, in whole or in part, upon not less than 30 nor more than 60 days’ prior notice, at
the redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest and Liquidated Damages, if any, thereon to the applicable redemption date, if redeemed during the twelve-month period 

 beginning on July 15, of the years indicated below (subject to the right of Holders on the relevant record date to
receive interest due on the related interest payment date): 
  

				
	 Year

	  	Percentage

	 
	 2009
	  	105.000	%
	 2010
	  	102.500	%
	 2011 and thereafter
	  	100.000	%

  
 Notwithstanding the
foregoing, at any time prior to July 15, 2008, the Company may redeem up to 35% of the aggregate principal amount of Notes originally issued under the Indenture (including any Additional Notes) at a redemption price of 110.000% of the principal
amount thereof, plus accrued and unpaid interest and Liquidated Damages, if any, to the redemption date, with the net cash proceeds of one or more Equity Offerings of the Company; provided that (A) at least 65% of the aggregate principal amount of
the Notes originally issued under the Indenture (including any Additional Notes) remains outstanding immediately after the occurrence of such redemption, excluding Notes held by the Company and its Subsidiaries; and (B) the redemption must occur
within 90 days of the date of the closing of such Equity Offering. 
  
 In addition, at any time prior to July 15, 2009, the Company may redeem all or part of the Notes upon not less than 30 days nor more than 60 days’ notice at a redemption price equal to the sum of (i) the principal amount thereof, plus
(ii) accrued and unpaid interest, if any, to the applicable date of redemption, plus (iii) the Make-Whole Premium. 
  
 6. Repurchase at Option of Holder. (a) If a Change of Control occurs, each Holder of Notes shall have the right to require the Company to
repurchase all or any part (equal to $1,000 or an integral multiple thereof) of that Holder’s Notes pursuant to an offer by the Company (a “Change of Control Offer”). In the Change of Control Offer, the Company shall offer payment (a
“Change of Control Payment”) in cash of 101% of the aggregate principal amount of Notes repurchased plus accrued and unpaid interest and Liquidated Damages, if any, thereon, to the date of repurchase (the “Change of Control Payment
Date”, which date shall be no earlier than the date of such Change of Control). Within 30 days following any Change of Control, the Company shall mail a notice to each Holder describing the transaction or transactions that constitute the Change
of Control and offering to repurchase Notes on the Change of Control Payment Date specified in such notice, which shall be no earlier than 30 days and no later than 60 days from the date such notice is mailed, pursuant to the procedures required by
the Indenture and described in such notice. 
  
 (b) Within 360
days after the receipt of any Net Proceeds from an Asset Sale, the Company may apply such Net Proceeds at its option: (i) to repay Indebtedness under the Credit Facilities or Unsubordinated Indebtedness secured by such assets and, if the
Indebtedness repaid is revolving credit Indebtedness, to correspondingly reduce commitments with respect thereto; or (ii) to purchase Replacement Assets (or enter into a binding agreement to purchase such Replacement Assets; provided that (x) such
purchase is consummated within 90 days after the date of such binding agreement and (y) if such purchase is not consummated within the period set forth in subclause (x), the Net Proceeds not so applied will be deemed to be Excess Proceeds (as
defined below)). Pending the final applications of any such Net Proceeds, the Company may temporarily reduce revolving credit borrowings or otherwise invest such Net Proceeds in any manner that is not prohibited by the Indenture. Any Net Proceeds
from Asset Sales that are not applied or invested as provided in the next preceding sentence will constitute “Excess Proceeds.” Within ten days after the aggregate amount of Excess Proceeds exceeds $10.0 million, the Company shall make an
offer (an “Asset Sale Offer”) to all Holders of Notes and all holders of other Unsubordinated Indebtedness containing provisions similar to those set forth in the Indenture with respect to offers to purchase with the proceeds of sales of
assets, to purchase the maximum principal amount of Notes and such other Unsubordinated Indebtedness that may be purchased out of the Excess Proceeds. The offer price in any Asset Sale Offer shall be equal to 100% of the principal amount thereof
plus accrued and unpaid interest and Liquidated Damages, if any, to the date of purchase and shall be payable in cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Company may use such Excess Proceeds for any purpose
not otherwise prohibited by the Indenture. If the aggregate principal amount of Notes and such other Unsubordinated Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds, Notes and such other Unsubordinated
Indebtedness to be purchased shall be selected on a pro rata basis based on the principal amount of Notes and such other Unsubordinated Indebtedness tendered. Upon completion of each Asset Sale Offer, the amount of Excess Proceeds shall be reset at
zero. 

 7. Denominations, Transfer, Exchange. The Notes are in registered form without coupons in
denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Company is not required to transfer or exchange any Note selected for redemption. Also, the Company
is not required to transfer or exchange any Note for a period of 15 days before a selection of Notes to be redeemed. Transfer may be restricted as provided in the Indenture. 
  
 8. Persons Deemed Owners. The registered Holder of a Note will be treated as its owner for all purposes. 

 
 9. Amendment, Supplement and Waiver. Subject to certain exceptions,
the Indenture or the Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the then outstanding Notes (including, without limitation, consents obtained in connection with a purchase of, or
tender offer or exchange offer for, the Notes), and any existing default or compliance with any provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority in principal amount of the then outstanding Notes
(including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, the Notes). Without the consent of any Holder of a Note, the Indenture or the Notes may be amended or supplemented to, among
other things, cure any ambiguity, defect or inconsistency, or to make any change that does not adversely affect the legal rights under the Indenture of any such Holder. 
  
 10. Defaults and Remedies. In the case of an Event of Default arising from certain events of bankruptcy or
insolvency, with respect to the Company or any Significant Subsidiary of the Company (or any Restricted Subsidiaries that together would constitute a Significant Subsidiary), all outstanding Notes will become due and payable immediately without
further action or notice. If any other Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately by notice in
writing to the Company specifying the Event of Default. Holders of the Notes may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain limitations, Holders of a majority in principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of the Notes notice of any Default or Event of Default (except a Default or Event of Default relating to the payment of principal,
premium, interest or Liquidated Damages) if it determines that withholding notice is in their interest. Holders of a majority in principal amount of the then outstanding Notes, by notice to the Trustee may, on behalf of the Holders of all of the
Notes, rescind and annul a declaration of acceleration pursuant to Section 6.02 of the Indenture, and its consequences, and waive any related existing Default or Event of Default if certain conditions are satisfied. 
  
 With respect to periods after July 15, 2009, in the case of any Event of
Default occurring by reason of any willful action or inaction taken or not taken by or on behalf of the Company with the intention of avoiding payment of the premium that the Company would have had to pay if the Company then had elected to redeem
the Notes pursuant to Section 3.07(a) of the Indenture, an equivalent premium shall also become and be immediately due and payable to the extent permitted by law upon the acceleration of the Notes. With respect to periods prior to July 15, 2009, if
an Event of Default occurs during any time that the Notes are outstanding, by reason of any willful action (or inaction) taken (or not taken) by or on behalf of the Company with the intention of avoiding the prohibition on redemption of the Notes,
then the premium specified in Section 3.07(c) of the Indenture that would have been payable upon redemption at the time the Event of Default occurs shall also become immediately due and payable to the extent permitted by law upon the acceleration of
the Notes. 
  
 11. Trustee Dealings with Company. The
Trustee, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the Trustee. 

 12. No Recourse Against Others. No director, officer, employee, incorporator or stockholder of the
Company or any Guarantor, as such, shall have any liability for any obligations of the Company or the Guarantors under the Notes, the Indenture, the Note Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. The waiver may not be effective to waive liabilities under the federal
securities laws. 
  
 13. Authentication. This Note shall
not be valid until authenticated by the manual signature of the Trustee or an authenticating agent. 
  
 14. Additional Rights of Holders of Restricted Global Notes and Restricted Definitive Notes. In addition to the rights provided to Holders under
the Indenture, Holders of Restricted Global Notes and Restricted Definitive Notes shall have all then applicable rights set forth in the Registration Rights Agreement dated as of July 6, 2005, between the Company, the Guarantors and the parties
named on the signature pages thereof or, in the case of Additional Notes, Holders of Restricted Global Notes and Restricted Definitive Notes shall have the rights set forth in one or more registration rights agreements, if any, between the Company,
the Guarantors and the other parties thereto, relating to rights given by the Company and the Guarantors to the purchasers of Additional Notes (the “Registration Rights Agreement”). 
  
 15. CUSIP Numbers. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to the
accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 
  
 16. Guarantee. The Company’s obligations under the Notes are fully and unconditionally guaranteed, jointly and
severally, by the Guarantors. 
  
 17. Copies of Documents.
The Company shall furnish to any Holder upon written request and without charge a copy of the Indenture and/or the Registration Rights Agreement. Requests may be made to: 
  
 Chaparral Steel Company 
 300 Ward Road 
 Midlothian, TX 76065 
  
 Facsimile: 972-779-1944 
 Attention: General
Counsel 

 ASSIGNMENT FORM 
  
 To assign this Note, fill in the form below: 
  
 (I) or (we) assign and transfer this Note to:
                                       
                                        
                                        
                        
 (Insert assignee’s legal name)                             
  
 ____________________________________________________________________________________________________________ 
 (Insert
assignee’s social security or tax identification
number)                                       
                                      
  
 ____________________________________________________________________________________________________________ 
  
 ____________________________________________________________________________________________________________ 
  
 ____________________________________________________________________________________________________________ 
  
 ____________________________________________________________________________________________________________ 
  
 (Print or type assignee’s name, address and zip
code)                                       
                                      
  
 and irrevocably appoint
                                       
                                        
                                        
                                        
                  to transfer this Note on the books of the Company. The agent may substitute another to act for him. 
  
 Date:
                     
  

			
	Your Signature:	 	  

	 (Sign exactly as your name appears on the face of this Note)

  

			
	Signature Guarantee*: 	 	  

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

 OPTION OF HOLDER TO ELECT PURCHASE 
  
 If you elect to have this Note purchased by the Company pursuant to Section 4.10 or 4.14 of the Indenture, check the
appropriate box below: 
  
  ̈  Section 4.10             ̈  Section 4.14 
  
 If
you elect to have only part of the Note purchased by the Company pursuant to Section 4.10 or Section 4.14 of the Indenture, state the amount you elect to have purchased: 
  
 $                     
  
 Date:                      
  

					
	 	 	 Your Signature:
	 	  

	 (Sign exactly as your name appears on the face of this Note)

			
	 	 	 Tax Identification No.:
	 	  

  

			
	Signature Guarantee*: 	 	  

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  
  

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE 
  
 The following exchanges of a part of this Global Note for an interest in
another Global Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an interest in this Global Note, have been made: 
  

									
	 Date of Exchange

	 	 Amount of Decrease in
 Principal Amount at
Maturity
 of this Global Note

	 	 Amount of Increase in
 Principal Amount at
Maturity
 of this Global Note

	  	 Principal Amount at
Maturity
 of this Global Note
 following such
 Decrease (or Increase)

	  	 Signature of
 Authorized Officer
 of Trustee or
 Note Custodian

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