Document:

Exhibit 4.1

 

DESCRIPTION OF CAPITAL STOCK

OF BARRETT BUSINESS SERVICES, INC.

 

The following is a
brief description of the securities of Barrett Business Services, Inc. (the “company,” “we,” “us”
and “our”), registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"). As of June 26, 2020, our common stock is the only class of our securities registered under Section 12 of the Exchange
Act. This description of the terms of our common stock does not purport to be complete and is subject to and qualified in its entirety
by reference to the applicable provisions of Maryland General Corporation Law (the "MGCL"), and the full text of our
charter and bylaws.

 

Common
Stock

 

Our charter provides
that we may issue up to 20,500,000 shares of common stock, par value $0.01 per share. Under Maryland law, stockholders generally
are not personally liable for corporate debts or obligations solely because of their status as stockholders. Our common stock is
listed on the Global Select Market of The Nasdaq Stock Market under the symbol "BBSI."

 

Subject to the preferential
rights of any other class or series of stock, holders of shares of our common stock are entitled to receive dividends on such stock
if, as and when authorized by our board of directors out of assets legally available therefor and declared by us and to share ratably
in the assets of our company legally available for distribution to our stockholders in the event of our liquidation, dissolution
or winding up after payment of or adequate provision for all debts and liabilities of our company.

 

Each outstanding share
of our common stock entitles the holder to one vote on all matters submitted to a vote of stockholders, including the election
of directors and, except as provided with respect to any other class or series of stock, the holders of such shares of common stock
will possess the exclusive voting power. There is no cumulative voting in the election of our board of directors, which means that
the holders of a majority of the outstanding shares of our common stock are entitled to elect all of the directors then standing
for election and the holders of the remaining shares will not be able to elect any directors.

 

Holders of shares of
our common stock have no preference, conversion, exchange, sinking fund or redemption rights, and have no preemptive rights to
subscribe for any of our securities. In addition, under the MGCL, our stockholders generally have no appraisal rights. Shares of
our common stock have equal dividend, liquidation and other rights.

 

Under the MGCL, a Maryland
corporation generally may not dissolve, amend its charter, merge, convert, sell all or substantially all of its assets, or engage
in a statutory share exchange unless such action is advised by its board of directors and approved by the affirmative vote of holders
of at least two-thirds of the votes entitled to be cast on the matter, unless a lesser percentage (but not less than a majority
of all of the votes entitled to be cast on the matter) is set forth in the corporation’s charter. Our charter provides that
the foregoing items may be approved by a majority of all the votes entitled to be cast on the matter.

 

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Preferred Stock

 

Our charter provides
that we may issue up to 500,000 shares of preferred stock, par value $0.01 per share. As of June 26, 2020, we have no outstanding
shares of preferred stock.

 

Our charter authorizes
our board of directors, without any vote or action of our stockholders, to classify, and reclassify from time to time, any unissued
shares of preferred stock into other classes or series of stock. Prior to issuance of shares of each class or series, our board
of directors is required by the MGCL to establish the number of shares in each class or series and to set the preferences, conversion,
or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications, and terms and
conditions of redemption for each such class or series. The issuance of shares of preferred stock could adversely affect the voting
power, dividend rights and other rights of holders of our common stock. Our board of directors could establish a series of preferred
stock that could, depending on the terms of the series, delay, defer, or prevent a transaction or a change in control of us that
might involve a premium price for our common stock or otherwise be in the best interest of the holders thereof. The specific terms
of a particular class or series of preferred stock will be described in a prospectus, prospectus supplement or other offering materials
relating to the sale or issuance of shares of that class or series.

 

Certain Provisions of Maryland Law and
of Our Charter and Bylaws 

 

The following summary
of certain provisions of the MGCL and of our charter and bylaws does not purport to be complete and is subject to and qualified
in its entirety by reference to Maryland law and our charter and bylaws.

 

Board of Directors; Election of Directors;
Quorum

 

Our charter provides
that the number of directors shall be set pursuant to our bylaws. Our bylaws provide that a majority of our entire board shall
fix the number of directors; provided that the number of directors may not be decreased to fewer than three, nor increased to more
than nine; and provided further that, if there are fewer than three stockholders, the number of directors may be fixed at fewer
than three but not fewer than the number of stockholders. Any and all vacancies on our board of directors may be filled by the
affirmative vote of a majority of the remaining directors, even if fewer than a quorum, except that a vacancy resulting from an
increase in the size of the board of directors must be filled by a majority vote of the entire board of directors, and any individual
elected to fill such vacancy will serve until the next annual meeting of stockholders and until a successor is duly elected and
qualifies.

 

Under our bylaws,
each of our directors will be elected by our stockholders to serve until the next annual meeting of stockholders and until
his or her successor is duly elected and qualifies. Our bylaws provide that in uncontested elections, a director will be
elected by the affirmative vote of a majority of the total votes cast for and votes cast against each director nominee. In
contested elections, directors will be elected by a plurality of the shares represented at the meeting and entitled to vote
on the election of directors. An election will be considered to be contested if the number of nominees exceeds the number of
directors to be elected. Under our bylaws, if in an uncontested election an incumbent director does not receive the
affirmative vote of a majority of the total votes cast for and votes cast against such director, the director is required to
submit his or her resignation to the board of directors. In that event, pursuant to our bylaws, the Nominating and Governance
Committee (the "Nominating Committee") of the board of directors would recommend to the board of directors whether
to accept or reject the resignation. Under our bylaws, the board of directors would then consider and act on the Nominating
Committee's recommendation, publicly disclosing its decision and the reasons supporting it within 90 days following the date
of receipt of the resignation.

 

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Our bylaws provide
that the presence in person or by proxy of stockholders entitled to cast a majority of all the votes entitled to be cast at a stockholders
meeting constitutes a quorum.

 

Removal of Directors

 

Under the MGCL, a director
may be removed, with or without cause, only by the affirmative vote of a majority of the votes entitled to be cast generally in
the election of directors.

 

Business Combinations

 

We are subject to the
business combination provisions of the MGCL. Under the MGCL, business combinations between a Maryland corporation and an interested
stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the
interested stockholder becomes an interested stockholder. These business combinations include, among other things, a merger, consolidation,
statutory share exchange or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity
securities.

 

An interested stockholder
is defined as:

 

		·	any person who beneficially owns ten percent or more of the voting power of the corporation’s
outstanding voting stock; or

 

		·	an affiliate or associate of the corporation who, at any time within the two-year period prior
to the date in question, was the beneficial owner of ten percent or more of the voting power of the then outstanding voting stock
of the corporation.

 

A person is not an
interested stockholder under the statute if the board of directors approved in advance the transaction by which such person otherwise
would have become an interested stockholder. However, in approving a transaction, the board of directors may make its approval
subject to compliance, at or after the time of approval, with any terms and conditions determined by the board of directors.

 

After the five-year
prohibition, the completion of any business combination between the Maryland corporation and an interested stockholder generally
requires that the transaction be recommended by the board of directors of the corporation and approved by the affirmative vote
of at least:

 

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		·	80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation;
and

 

		·	two-thirds of the votes entitled to be cast by holders of voting stock of the corporation, other
than shares (1) held by the interested stockholder with whom or with whose affiliate the business combination is to be effected
or (2) held by an affiliate or associate of the interested stockholder.

 

These super-majority
voting requirements do not apply if the corporation’s common stockholders receive a minimum price, as defined in the MGCL,
for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for
its shares.

 

Control Share Acquisitions

 

We are subject to the
provisions of the MGCL's control share acquisition statute. The control share acquisition statute provides that a holder of control
shares of a Maryland corporation acquired in a control share acquisition has no voting rights with respect to such shares, except
to the extent approved by at least two-thirds of the votes entitled to be cast by stockholders entitled to vote generally in the
election of directors, but excluding the acquiring person, officers of the corporation, and employees who are also directors of
the corporation. Control shares are voting shares of stock that, if aggregated with all other shares of stock owned by the acquiring
person or in respect of which the acquiring person is able to exercise or direct the exercise of voting power (except solely by
virtue of a revocable proxy), would entitle the acquiring person to exercise voting power in electing directors within one of the
following ranges of voting power:

 

		·	one-tenth or more but less than one-third;

 

		·	one-third or more but less than a majority; or

 

		·	a majority or more of all voting power.

 

Control shares do not
include shares that the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval
or shares acquired directly from the corporation. A control share acquisition means the direct or indirect acquisition of issued
and outstanding control shares, subject to certain exceptions.

 

A person who has made
or proposes to make a control share acquisition may compel the board of directors of the corporation to call a special meeting
of stockholders to be held within 50 days of demand to consider the voting rights of the holder of the shares acquired or proposed
to be acquired. The right to compel the calling of a special meeting is subject to the satisfaction of certain conditions, including
an undertaking to pay the expenses of the meeting. If no request for a meeting is made, the corporation may present the question
at any stockholders meeting.

 

If voting rights
are not approved at the meeting or if the acquiring person does not deliver an acquiring person statement as required by the
statute, then the corporation may redeem for fair value any or all of the control shares, except those for which voting
rights have previously been approved. The right of our company to redeem control shares is subject to certain conditions and
limitations. Fair value is determined, without regard to the absence of voting rights for the control shares, as of the date
of the last control share acquisition by the acquiring person or, if a stockholders meeting is held to consider voting rights
for the control shares, as of the date of the meeting. If voting rights for the holder of the control shares are approved at
a stockholders meeting and the acquiring person becomes entitled to vote a majority of the shares entitled to vote, all other
stockholders may exercise appraisal rights. The fair value of the shares as determined for purposes of such appraisal rights
may not be less than the highest price per share paid by the acquiring person in the control share acquisition.

 

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The control share acquisition
statute does not apply (1) to shares acquired in a merger, consolidation or statutory share exchange if the corporation is
a party to the transaction, or (2) to acquisitions approved or exempted by the charter or bylaws of the corporation.

  

Amendment of our Charter and Bylaws

 

In general, our charter
may be amended if an amendment is declared advisable by our board of directors and approved by the affirmative vote of stockholders
entitled to cast a majority of the votes entitled to be cast on the matter. Our bylaws may
be amended by our stockholders at any annual or special meeting of stockholders by the affirmative vote of a majority of
all shares of any class of stock entitled to vote at such meeting. Our bylaws may also be amended by our board of directors by
the affirmative vote of a majority of the total number of directors then authorized, including vacancies, and subject to the power
of the stockholders to change or repeal such bylaws.

  

Advance Notice of Director Nominations
and New Business

 

Our bylaws provide
that nominations of individuals for election to our board of directors and proposals of other business to be considered at any
annual meeting of our stockholders (or in the case of election of directors, at a special meeting of stockholders held in lieu
of an annual meeting) may be made (1) pursuant to our proxy materials with respect to such meeting, (2) by or at
the direction of our board of directors, (3) by any stockholder or group of stockholders that has complied with the proxy access
requirements set forth in our bylaws and described under “Proxy Access” below, or (4) by any stockholder that
was a stockholder at the time of notice required by our bylaws, is entitled to vote at the meeting in the election of the individuals
so nominated or on such other proposed business, and has complied with the advance notice requirements of, and provided the information
and certifications required by, our bylaws. The foregoing clauses (3) and (4) are the exclusive means for a stockholder to
make nominations or propose business (other than matters included in our proxy materials pursuant to Rule 14a-8 under the
Exchange Act) at an annual meeting of stockholders.

  

Proxy Access

 

Our bylaws
provide that a stockholder or group of up to 20 stockholders that has maintained continuous qualifying ownership of 3% of
more of our outstanding common stock for at least the previous three years is permitted to nominate and include up to a
specified number of proxy access nominees in the company’s proxy materials for its annual meeting of stockholders,
provided that such stockholder or group of stockholders satisfies the applicable proxy access requirements of, and provides
the information and representations required by, our bylaws. Proxy access nominees are also required to submit certain
information, and are subject to certain exclusions and disqualifications, as set forth in our bylaws.

 

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The maximum number
of proxy access nominees that we are required to include in our proxy materials is the greater of (a) two and (b) 20% of the directors
in office at the time of nomination (rounded down to the nearest whole number). Any eligible stockholder that submits more than
one proxy access nominee is required to provide a ranking of its proposed proxy access nominees. If the number of proxy access
nominees exceeds the proxy access nominee limit, the highest ranking qualified individual from the list proposed by each eligible
stockholder, beginning with the eligible stockholder with the largest qualifying ownership and proceeding through the list of eligible
stockholders in descending order of qualifying ownership, will be selected for inclusion in the company’s proxy materials
until the proxy access nominee limit is reached.

 

Requests to include
proxy access nominees in the company’s proxy materials must be receive no earlier than 120 days and no later than 90 days
before the anniversary of the date that the company first mailed its proxy materials for the preceding year’s annual meeting
of stockholders, subject to adjustment in the event the annual meeting is held more than 30 days before or after the anniversary
of the date of the prior year’s annual meeting.

 

Special Meetings of Stockholders

 

Our president or board
of directors may call special meetings of our stockholders. Additionally, our bylaws provide that a special meeting of our stockholders
must also be called by our secretary upon the written request of the stockholders entitled to cast not less than 25% of all the
votes entitled to be cast on such matter at the meeting. Our secretary will inform the requesting stockholders of the reasonably
estimated cost of preparing and mailing the notice of meeting, and the requesting stockholders must pay such estimated cost before
our secretary is required to prepare and mail the notice of the special meeting. A special meeting need not be called by our secretary
to consider any matter that is substantially the same as a matter voted on at any special meeting of our stockholders held during
the preceding 12 months unless requested by stockholders entitled to cast a majority of all votes entitled to be cast at the meeting.

 

Subtitle 8

 

Subtitle 8 of Title
3 of the MGCL permits a Maryland corporation with a class of equity securities registered under the Exchange Act and at least three
independent directors, to elect to be subject, by provision in its charter or bylaws or a resolution of its board of directors,
and notwithstanding any contrary provision in such charter or bylaws, to any or all of five provisions of Subtitle 8, which provide
for:

 

		·	a classified board;

 

		·	a requirement that removal of a director be approved by the affirmative vote of two-thirds of all the votes entitled
to be cast by stockholders generally in the election of directors;

 

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		·	a requirement that the number of directors be fixed only by vote of the directors;

 

		·	a requirement that a vacancy on the board be filled only by the remaining directors and for the
remainder of the full term of the class of directors in which the vacancy occurred; and

 

		·	a requirement that a written request by stockholders for the calling of a special meeting of stockholders
be submitted by stockholders entitled to cast a majority of all the votes entitled to be cast at the meeting.

 

Through provisions
in our charter and bylaws unrelated to Subtitle 8, we already vest in our board of directors the exclusive power, subject to the
limitations described above, to fix the number of directors, by vote of a majority of the entire board of directors. In the future,
our board of directors may elect, without stockholder approval, to be subject to any of the other provisions of Subtitle 8.

 

Limitation
of Liability and Indemnification of Directors and Officers

 

Maryland
law permits a Maryland corporation to include in its charter a provision limiting the liability of its directors and officers to
the corporation and its stockholders for money damages except for liability resulting from (1) actual receipt of an improper
benefit or profit in money, property or services or (2) active and deliberate dishonesty which is established by a final judgment
and which is material to the cause of action. Our charter contains such a provision eliminating directors’ and officers’
liability to the maximum extent permitted by Maryland law.

 

Our
charter obligates us, to the maximum extent permitted by Maryland law, to indemnify any present or former director or officer or
any individual who, while a director or officer of our company and at our request, serves or has served another corporation, partnership,
joint venture, trust, employee benefit plan or other enterprise as a director, officer, partner, trustee, employee or agent, from
and against any claim or liability to which that individual may become subject or which that individual may incur by reason of
his or her service in such capacity. Our charter also permits us to indemnify any employee or agent of the company.

 

The
MGCL requires a corporation (unless its charter provides otherwise, which our charter does not) to indemnify a director or
officer who has been successful in the defense of any proceeding to which he or she is made or threatened to be made a party
by reason of his or her service in that capacity. The MGCL permits a corporation to indemnify its present and former
directors and officers, among others, against judgments, penalties, fines, settlements and reasonable expenses actually
incurred by them in connection with any proceeding to which they may be made or threatened to be made a party by reason of
their service in those or other capacities unless it is established that (1) the act or omission of the director or
officer was material to the matter giving rise to the proceeding and was committed in bad faith or was the result of active
and deliberate dishonesty, (2) the director or officer actually received an improper personal benefit in money, property
or services, or (3) in the case of any criminal proceeding, the director or officer had reasonable cause to believe that
the act or omission was unlawful. However, under the MGCL, a Maryland corporation may not indemnify for an adverse judgment
in a suit by or in the right of the corporation or for a judgment of liability on the basis that personal benefit was
improperly received, unless in either case a court orders indemnification, and then only for expenses.

 

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In
addition, the MGCL permits a corporation to advance reasonable expenses to a director or officer upon the corporation’s receipt
of (1) a written affirmation by the director or officer of his or her good faith belief that he or she has met the standard
of conduct necessary for indemnification by the corporation and (2) a written undertaking by him or her or on his or her behalf
to repay the amount paid or reimbursed by the corporation if it is ultimately determined that the standard of conduct was not met.

 

We
have entered into indemnification agreements with each of our directors who is not also an employee. These agreements require us
to indemnify these individuals to the fullest extent permitted under Maryland law against liabilities that may arise by reason
of their service to us, and to advance expenses incurred as a result of any proceeding against them as to which they could be indemnified.
Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended, may be permitted to directors
or executive officers, we have been informed that in the opinion of the Securities and Exchange Commission such indemnification
is against public policy and is therefore unenforceable.

 

    - 8 -Exhibit 10.1

    

    

    

    

    

    

    SEPARATION AGREEMENT

    

    

    BETWEEN:

    

    

    

    

    

    

    LOYALTYONE, CO., and ALLIANCE DATA SYSTEMS CORPORATION

    

    

     (collectively, the “Company”)

    

    

    - and –

    

    

    

    

    

    

    BRYAN A. PEARSON

    

    

    (the “Employee”)

    

    

    

    

    

    

    WHEREAS the Employee has been
      employed by LoyaltyOne, Co. (“L1”) since July 17, 1995 in various capacities and under various corporate name and entities;

    

    

    AND WHEREAS as of the Termination
      Date (as defined below) the Employee was employed as an Executive Vice President of Alliance Data Systems Corporation (“Alliance Data”) and the President of L1;

    

    

    AND WHEREAS the Employee entered
      into a Commuter Agreement dated April 3, 2017 (the “Commuter Agreement”) which provided that effective May 1, 2017, the Employee would be assigned
      to the Netherlands;

    

    

    AND WHEREAS the Employee and the
      Company wish to conclude their relationship in an orderly fashion and are both desirous of resolving all claims, demands, liabilities and issues arising out of the Employee’s employment and termination of such employment;

    

    

    NOW THEREFORE in consideration of
      the foregoing and the mutual agreements contained herein (the receipt and adequacy of which are acknowledged), the Employee and the Company agree as follows:

    

    

    	1.	
            The Employee’s employment was terminated effective August 9, 2019 (the “Termination Date”).

          

    

    

    
      
        	 

        

        

      

      
        

      
        2

        

        

      

    

    

    

    

    

    

    

    	2.	
            Following the Termination Date, the Company will provide the Employee with the following:

          

    

    

    	

          	(a)	
            an amount equal to $1,978,844.16 to be paid in equal installments over a period of twenty four months (the “Severance Period”) in the form of salary of continuation in accordance with L1’s regular payroll practices.  In the event that the Employee commences comparable alternate employment during
              the Severance Period, the salary continuation payments shall cease.  The Employee will be entitled to the difference between (A) the amount he would have received from the Company for the remainder of the Severance Period and (B) the amount
              he receives from his new employer for the length of the remainder of the Severance Period.  On the next payroll following the execution of this Separation Agreement, the Company will pay any top up amounts owing since the Termination Date in
              a lump sum, and characterize such lump sum as a retiring allowance and taxed at a rate of 30% in accordance with the Income Tax Act.  The
              Employee acknowledges and agrees that any top up amount shall be less the amounts already paid to the Employee since the Termination Date;

          

    

    

    	

          	(b)	
            continued participation in L1’s group insurance medical and dental benefits, to the extent permitted by Sunlife insurer and in accordance with the terms and conditions
              of such policies, until the earlier of (i) the completion of Severance Period; and (ii) the date the Employee commences comparable alternate employment (the “Salary Continuation Period”) with the exception of AD&D, long term and short term disability benefits and extended life insurance, all provided by SunLife which ceased on March 24, 2020.  The Employee’s
              participation in the Company’s Executive Plan shall continue for the length of the Salary Continuation Period.  The Company and the Employee shall pay their respective share of any applicable premiums in accordance with past practice.  The
              Employee may convert his life insurance coverage to an individual policy by contacting the relevant insurer immediately;

          

    

    

    	

          	(c)	
            a lump sum payment of $204,960.93 which represents the Employee’s pro-rated cash bonus for 2019 which is based on the average of the last three years of cash bonus. 
              The payment of this amount will be withheld by the Company as per paragraph 5 of this Agreement; and,

          

    

    

    	

          	(d)	
            continued participation in L1’s group registered retirement savings plan, deferred profit sharing plan and supplemental executive retirement plan for the length of the
              Salary Continuation Period in accordance with terms and conditions of the relevant plans and policies.

          

    
      
        	 

        

        

      

      
        

      
        3

        

        

      

    

    

    

    	3.	
            Employee shall be eligible to participate in outplacement services provided by Feldman Daxon.  Details of this benefit were provided to the Employee under separate
              cover.

          

    

    

    	4.	
            Employee acknowledges and agrees that any restricted stock units granted pursuant to the 2015 Omnibus Incentive Plan that are unvested as of the Termination Date shall
              be forfeited and no further vesting shall occur beyond the Termination Date.

          

    

    

    	5.	
            In accordance with the terms of the Commuter Agreement, for the tax years up to and including, if applicable, 2020, the Company agrees to continue providing tax
              equalization services to the Employee.  Such services include providing tax preparation services with an accounting firm of the Company’s choice for the purpose of equalizing the Employee’s tax responsibility between the Netherlands and
              Canada. Employee agrees to continue to abide by the tax equalization policy and procedure previously provided to him pursuant to the Commuter Assignment.  The Employee agrees that the following amounts shall be deducted from the payment
              provided for in Section 2(c) above:  $91,287.52 in respect of taxes owing for 2017 and any further amounts owing for 2018, 2019 and 2020.  Employee acknowledges and agrees that any amounts owing in respect of these taxes that are not
              satisfied by the amounts in Section 2(c) shall be deducted from the amounts provided in Section 2(a) above.  Additionally, Employees agrees that all foreign tax credits that arise as a result of the tax equalization exercise will belong to
              the Company for its use in addressing the Netherlands portion of the tax requirement.  Within 30 days of payment of the taxes owing, any portion of the lump sum payment set out in paragraph 2(c) that remains shall be paid to the Employee.

          

    

    

    	6.	
            The Company shall reimburse the Employee up to $5,000 (plus HST) for any amounts paid to his accountant in respect of assessing the Employee’s tax responsibility
              between the Netherlands and Canada.

          

    

    

    	7.	
            The Employee agrees that his eligibility for all other perquisites and/or benefits ceased as of the Termination Date. Any claims the Employee may have in respect of any
              other perquisites and benefits are deemed to be satisfied by the consideration set out in the Separation Agreement.

          

    

    

    	8.	
            The amounts provided in this Separation Agreement are in Canadian dollars and are inclusive of any and in full satisfaction of amounts owing pursuant to the ESA or any
              other contract or agreement between the parties.   Employee acknowledges that he has received all amounts owing to him in respect of outstanding expenses and vacation pay.

          

    

    

    	9.	
            The Employee further agrees to return to the Company on or before the Termination Date all equipment, electronics, correspondence, documents, software and other
              property belonging to the Company, and agrees to delete copies of all confidential information of the Company stored electronically on his computer or

          

    
      
        	 

        

        

      

      
        

      
        4

        

        

      

    

    other device owned or controlled by the Employee.  The Employee further agrees that he will not reproduce any such property.  
      Notwithstanding the above, the Employee may retain the Company phone and laptop in his possession.

    

    

    	10.	
            The Company will provide the Employee with a confirmation of employment letter which will set out his years of service and last position with the Company.

          

    

    

    	11.	
            The Employee acknowledges that he remains bound by the terms and conditions as contained in the Employee Confidentiality & Non-Solicitation Agreement dated March
              21, 2011 (the “Agreement”).

          

    

    

    	12.	
            The Employee agrees that he will not make, disseminate or publish in any form directly or indirectly any statement critical of the Company or their respective parent or
              affiliated companies, directors, shareholders, officers or employees, or otherwise defame, disparage, or in any way criticize the reputation or conduct of the Company or any such persons other than truthful communications directly required by
              applicable laws or judicial or administrative process.  The Company will advise Joseph Motes, Charles Horn and Mitchell Merowtiz not to make, disseminate or publish in any form directly or indirectly any statement critical of the Employee, or
              otherwise defame, disparage, or in any way criticize the reputation or conduct of the Employee other than truthful communications directly required by applicable laws or judicial or administrative process.

          

    

    

    	13.	
            The Employee agrees that he will make himself available to assist the Company as reasonably requested, taking into account the Employee’s other professional
              obligations, regarding prior business arrangements or pending litigation or litigation which may arise in the future concerning matters about which he has or had personal knowledge or which were within the purview of his responsibilities. 
              Employee agrees to reasonably assist in the prosecution or defense of such claims involving the Company or any of its and their respective officers, directors, employees or agents, whether or not such claims involve litigation.  This
              assistance may include but is not limited to participation in interviews, development of factual matters and the giving of documentation and/or testimony, whether by oral testimony, affidavit, at trial or otherwise.  The Employee shall be
              compensated on a reasonable basis for the time that he spends providing assistance.

          

    

    

    	14.	
            The offer as set out above is conditional upon the Employee:

          

    

    

    	

          	(a)	
            executing the Final Release attached hereto as Schedule “A”;

          

    

    

    	

          	(b)	
            not disclosing the terms of this Separation Agreement to anyone except her spouse, legal and/or financial advisors (only in strictest confidence in their professional
              capacity) and/or as may be required by law; and,

          

    
      
        	 

        

        

      

      
        

      
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          	(c)	
            abiding by the terms in this Separation Agreement including the restrictive covenants contained in the Agreement.

          

    

    

    	15.	
            This Separation Agreement shall be governed and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein.

          

    

    

    	16.	
            The Employee acknowledges that he has received independent legal advice with respect to the matters addressed in this Separation Agreement and the attached Final
              Release.  The Company shall contribute an amount of up to $15,000 (inclusive of HST) to the Employee’s legal fees subject to an invoice from counsel.

          

    

    

    	17.	
            The wording in this Separation Agreement was reviewed and accepted by the parties after reasonable time to review with legal counsel and no party shall be entitled to
              have any of this Separation Agreement construed against any other party as the drafter of the Separation Agreement in the event of any dispute in connection with this Separation Agreement.

          

    

    

    	18.	
            This Separation Agreement shall be binding upon and the benefits shall inure to the Employee and the Employee’s heirs and to the Company and their respective successors
              and assigns.

          

    

    

    	19.	
            This Separation Agreement contains the entire agreement of the parties with respect to the subject matter hereof and may be amended or superseded only by an agreement
              in writing signed by the Employee and the Company.  For clarity, the provisions of the Agreement shall remain in full force and affect.

          

    

    

    	20.	
            This Separation Agreement may be executed in one or more counterparts (by facsimile or electronic transmission), each of which shall be deemed an original, but all of
              which together shall constitute one and the same agreement.

          

    

    

    IN WITNESS WHEREOF the Separation Agreement has been
      executed by the parties hereto.

    

    

    DATED this 22nd day of June, 2020.

    

    

    

    

    

    

    LOYALTYONE, CO.

    

    

      /s/ Mitchell Merowitz 

    Mitchell Merowitz

      

    SVP, Corporate and Legal Affairs and 

    Secretary

    
      
        	 

        

        

      

      
        

      
        6

        

        

      

    

    ALLIANCE DATA SYSTEMS CORPORATION

    

    

      /s/ Joseph Motes

      Joseph Motes

      

    EVP, Chief Administrative Officer,

    General Counsel and Secretary            

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    	
            SIGNED, SEALED AND DELIVERED

          	 	
            )

          	 	 
	
            IN THE PRESENCE OF:

          	 	
            )

          	 	 
	 	 	
            )

          	 	 
	
              /s/ Sally Peterson

          	 	
            )

          	 	
               /s/ Bryan A. Pearson

          
	
            Signature of Witness

          	 	
            )

          	 	
             BRYAN A. PEARSON

          
	 	 	
            )

          	 	 
	
              Sally Peterson

          	 	
            )

          	 	 
	
            Name of Witness

          	 	
            )

          	 	 
	 	 	
            )

          	 	 
	
              Withheld

          	 	
            )

          	 	 
	
            Address

          	 	
            )

          	 	 

    
      
        	 

        

        

      

      
        

      
        7

        

        

      

    

    

    

    FINAL RELEASE

    

    

    In consideration of the terms set out in the
      attached Separation Agreement, dated June 22, 2020 (the “Separation Agreement”), I, BRYAN A. PEARSON, on behalf of my heirs, administrators and assigns, hereby release and forever discharge LOYALTYONE, CO. and ALLIANCE DATA SYSTEMS CORPORATION, their parents, subsidiaries and affiliates and each of its
      respective officers, directors, employees, servants and agents, and its successors and assigns (hereinafter collectively referred to as the “Releasee”)
      jointly and severally from any and all actions, causes of action, complaints, contracts and covenants, whether express or implied, claims and demands for damages, indemnity, costs, interest, loss or injury of every nature and kind whatsoever arising,
      which I may heretofore have had, may now have or may hereinafter have in any way relating to my hiring by, my employment with or the termination of my employment by Releasee, which specifically includes but is not limited to any claims for salary,
      wages, commission, notice, pay in lieu of notice, termination pay, severance pay, wrongful dismissal, bonus, overtime pay, equity, incentive compensation, interest, vacation pay, holiday pay, or benefits, or any other claims at common law, in equity,
      contractually or pursuant to the 2015 Omnibus Incentive Plan, statute, including applicable employment standards or human rights legislation.

    

    

    

    

    I hereby declare that I am aware of my rights under
      the Human Rights Code that I have discussed or otherwise canvassed any and all human rights complaints, concerns or issues arising out of or with
      respect to my employment with Releasee, and that I am not asserting such rights or advancing any human rights claim or compliant.

    

    

    For the said consideration, I further agree not to
      make any claim, initiate or continue any proceeding against any other individual, partnership, association, trust, unincorporated organization or corporation with respect to the matters dealt with by this Final Release who may claim contribution or
      indemnity or any other relief from Releasee, or any one of them, by virtue of said claim or proceeding.

    

    

    And for the said consideration I further covenant
      and agree to save harmless and indemnify Releasee from and against all claims, charges, taxes or penalties and demands which may be made by the appropriate taxing authorities in Canada and Ontario requiring Releasee, or any one of them, to pay income
      tax, charges or penalties under applicable statutes and regulations in respect of income tax payable by me for services I rendered to Releasee; and in respect of any and all claims, charges, taxes, or penalties and demands which may be found payable
      by Releasee in respect of myself relating to governmentally regulated or other employment insurance or pension plan programs.

    

    

    I expressly declare, except as set out in the
      Separation Agreement, that I have no claim of any nature or kind to any entitlement whatsoever arising under or from any group health or welfare insurance policy maintained by Releasee for the benefit of its employees including disability or life
      insurance plans.

    
      
        	 

        

        

      

      
        

      
        8

        

        

      

    

    

    

    And for the consideration, I further agree not to
      discuss or disclose the terms of the Separation Agreement and this Final Release except to my counsel, immediate family, financial advisor, or as required by law.

    

    

    I hereby declare and agree that if I make any claim,
      demand or complaint or take any action or proceeding against Releasee, or any one of them, arising out of the matters described in this Final Release, that this Final Release shall be deemed to be a complete defense and bar to any such claim, demand,
      complaint, action or proceeding. Provided, however, that nothing in this Release affects or prevents me from bringing a claim or proceeding against the Releasee in the event of the breach of any term or condition of the Separation Agreement.

    

    

    It is understood and agreed that the giving of the
      aforementioned consideration is deemed to be no admission of liability on the part of Releasee, said liability in fact being denied.

    

    

    I hereby declare and agree that I have had the
      opportunity to seek independent legal advice with respect to the execution of this Final Release. I further confirm that I have read and understood this Final Release and that I am executing this Final Release in a free and voluntary manner and that
      I am under no duress or undue influence in so doing. I hereby voluntarily accept the terms of this Final Release for the purpose of making full and final compromise, adjustment and settlement of all claims as aforesaid.

    

    

    This release will be deemed to have been made in and
      shall be construed in accordance with the laws of the province of Ontario.

    

    

    IN WITNESS WHEREOF I have executed this Final Release on the 22nd day of June, 2020.

    

    

    

    

    	
            SIGNED, SEALED AND DELIVERED

          	 	
            )

          	 	 
	
            IN THE PRESENCE OF:

          	 	
            )

          	 	 
	 	 	
            )

          	 	 
	
              /s/ Sally Peterson

          	 	
            )

          	 	
               /s/ Bryan A. Pearson

          
	
            Signature of Witness

          	 	
            )

          	 	
             BRYAN A. PEARSON

          
	 	 	
            )

          	 	 
	
              Sally Peterson

          	 	
            )

          	 	 
	
            Name of Witness

          	 	
            )

          	 	 
	 	 	
            )

          	 	 
	
              Withheld

          	 	
            )

          	 	 
	
            Address

          	 	
            )

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00310-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00310-of-00352.parquet"}]]