Document:

Exhibit 10.2

 

TAX MATTERS AGREEMENT

 

between

 

Alliance Data Systems Corporation,

on behalf of itself and the members of the ADS Group,

and

Loyalty Ventures Inc.,

on behalf of itself and the members of the Loyalty Ventures Group

 

Dated as of [·],
2021

 

     

     

    

 

TABLE OF CONTENTS

 

Page

 

	Section 1.	Definitions	3
	Section 2.	Sole Tax Sharing Agreement	9
	Section 3.	Allocation of Taxes	10
	Section 4.	Preparation and Filing of Tax Returns	12
	Section 5.	Apportionment of Earnings and Profits and Tax Attributes	14
	Section 6.	Utilization of Tax Attributes	15
	Section 7.	Deductions and Reporting for Certain Awards	16
	Section 8.	Tax Refunds	17
	Section 9.	Certain Representations and Covenants	17
	Section 10.	Tax Receivables Arrangements	22
	Section 11.	Indemnities	22
	Section 12.	Payments	24
	Section 13.	Guarantees	25
	Section 14.	Communication and Cooperation	25
	Section 15.	Audits and Contest	27
	Section 16.	Notices	28
	Section 17.	Costs and Expenses	29
	Section 18.	Effectiveness; Termination and Survival	29
	Section 19.	Specific Performance	29
	Section 20.	Construction	30
	Section 21.	Entire Agreement; Amendments and Waivers	31
	Section 22.	Governing Law	32
	Section 23.	WAIVER OF JURY TRIAL	32
	Section 24.	Dispute Resolution	32
	Section 25.	Counterparts; Effectiveness; Third-Party Beneficiaries	32
	Section 26.	Successors and Assigns	33
	Section 27.	Authorization	33
	Section 28.	Change in Tax Law	33
	Section 29.	Performance	33

 

     

     

    

 

TAX MATTERS AGREEMENT

 

This TAX MATTERS AGREEMENT (the “Agreement”)
is entered into as of [●], 2021 between Alliance Data Systems Corporation (“ADS”), a Delaware corporation, on
behalf of itself and the members of the ADS Group and Loyalty Ventures Inc. (“Loyalty Ventures”), a Delaware corporation,
on behalf of itself and the members of the Loyalty Ventures Group.

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the Tax laws of various jurisdictions,
certain members of the Loyalty Ventures Group presently file certain Tax Returns on an affiliated, consolidated, combined, unitary, fiscal
unity or other group basis (including as permitted by Section 1501 of the Internal Revenue Code of 1986, as amended, the “Code”)
with certain members of the ADS Group;

 

WHEREAS, ADS and Loyalty Ventures have entered
into a Separation and Distribution Agreement, dated as of the date hereof (the “Separation Agreement”), pursuant to
which the Contribution, the Distribution and other related transactions will be consummated;

 

WHEREAS, the Restructuring, together with the Contribution,
the Distribution, the Equity-for-Debt Exchange and the Boot Purge, are intended to qualify for the Intended Tax Treatment; and

 

WHEREAS, ADS and Loyalty Ventures desire to set
forth their agreement on the rights and obligations of ADS, Loyalty Ventures and the members of the ADS Group and the Loyalty Ventures
Group respectively, with respect to (a) the administration and allocation of federal, state, local and foreign Taxes incurred in Taxable
periods beginning prior to the Distribution Date, (b) Taxes resulting from the Distribution and transactions effected in connection with
the Distribution and (c) various other Tax matters.

 

NOW, THEREFORE, in consideration of the mutual
covenants and agreements hereinafter set forth, the parties agree as follows:

 

Section 1.         
Definitions. (a) As used in this Agreement:

 

“Active Trade or Business” means
the LoyaltyOne Business, the active conduct (as defined in Section 355(b)(2) of the Code, and taking into account Section 355(b)(3) of
the Code and the Treasury Regulations thereunder) of which the Loyalty Ventures Group was engaged in immediately prior to the Distribution.

 

“ADS” has the meaning ascribed
thereto in the preamble.

 

“ADS Business” has the meaning
set forth in the Separation Agreement.

 

“ADS Compensatory Equity Interests”
means any options, stock appreciation rights, restricted stock, stock units or other rights with respect to ADS stock that are granted
on or prior to the Distribution Date by any member of the ADS Group in connection with employee, independent contractor or director compensation
or other employee benefits (including, for the avoidance of doubt, options, stock appreciation rights, restricted stock, restricted stock
units, performance share units or other rights issued in respect of any of the foregoing by reason of the Distribution or any subsequent
transaction).

 

     

     

    

 

“ADS Group” has the meaning
set forth in the Separation Agreement.

 

“ADS Separate Tax Return” means
any Tax Return that is required to be filed by, or with respect to, a member of the ADS Group that is not a Combined Tax Return.

 

“Affiliate” has the meaning
set forth in the Separation Agreement.

 

“Agreement” has the meaning
set forth in the preamble.

 

“Applicable Law” (or “Applicable
Tax Law,” as the case may be) has the meaning of “Applicable Law” set forth in the Separation Agreement.

 

“Boot Purge” has the meaning
set forth in the Separation Agreement.

 

“Business Day” has the meaning
set forth in the Separation Agreement.

 

“Cash Proceeds” has the meaning
set forth in the Separation Agreement.

 

“Closing of the Books Method”
means the apportionment of items between Taxable periods (or portions of a Taxable period) based on a closing of the books and records
on the close of the Distribution Date (in the event that the Distribution Date is not the last day of the Taxable period, as if the Distribution
Date were the last day of the Taxable period), subject to adjustment for items accrued on the Distribution Date that are properly allocable
to the Taxable period following the Distribution, as determined by ADS in accordance with Applicable Law; provided that Taxes not
based upon or measured by net or gross income or specific events shall be apportioned between the Pre- and Post-Distribution Periods on
a pro rata basis in accordance with the number of days in each Taxable period.

 

“Code” has the meaning set forth
in the Preamble.

 

“Combined Group” means any group
consisting of at least two members that filed or was required to file (or will file or be required to file) a Tax Return on an affiliated,
consolidated, combined, unitary, fiscal unity or other group basis (including as permitted by Section 1501 of the Code) that includes
at least one member of the ADS Group and at least one member of the Loyalty Ventures Group.

 

“Combined Tax Return” means
a Tax Return filed in respect of U.S. federal, state, local or non-U.S. income Taxes for a Combined Group, or any other affiliated, consolidated,
combined, unitary, fiscal unity or other group basis (including as permitted by Section 1501 of the Code) Tax Return of a Combined Group.

 

    4

     

    

 

“Company” means ADS or Loyalty
Ventures (or the appropriate member of each of their respective Groups), as appropriate.

 

“Contribution” has the meaning
set forth in the Separation Agreement.

 

“Distribution” has the meaning
set forth in the Separation Agreement.

 

“Distribution Date” has the
meaning set forth in the Separation Agreement.

 

“Distribution Documents” has
the meaning set forth in the Separation Agreement.

 

“Distribution Time” has the
meaning set forth in the Separation Agreement.

 

“Equity-for-Debt Exchange” has
the meaning set forth in the Separation Agreement.

 

“Equity Interests” means any
stock or other securities treated as equity for Tax purposes, options, warrants, rights, convertible debt, or any other instrument or
security that affords any Person the right, whether conditional or otherwise, to acquire stock or to be paid an amount determined by reference
to the value of stock.

 

“Final Determination” means
(i) with respect to U.S. federal income Taxes, (A) a “determination” as defined in Section 1313(a) of the Code (including,
for the avoidance of doubt, an executed IRS Form 906) or (B) the execution of an IRS Form 870-AD (or any successor form thereto), as a
final resolution of Tax liability for any Taxable period, except that a Form 870-AD (or successor form thereto) that reserves the right
of the taxpayer to file a claim for refund or the right of the IRS to assert a further deficiency shall not constitute a Final Determination
with respect to the item or items so reserved; (ii) with respect to Taxes other than U.S. federal income Taxes, any final determination
of liability in respect of a Tax that, under Applicable Tax Law, is not subject to further appeal, review or modification through proceedings
or otherwise; (iii) with respect to any Tax, any final disposition by reason of the expiration of the applicable statute of limitations
(giving effect to any extension, waiver or mitigation thereof); or (iv) with respect to any Tax, the payment of such Tax by any member
of the ADS Group or any member of the Loyalty Ventures Group, whichever is responsible for payment of such Tax under Applicable Tax Law,
with respect to any item disallowed or adjusted by a Taxing Authority; provided, in the case of this clause (iv), that the provisions
of ‎Section 15 hereof have been complied with, or, if such section
is inapplicable, that the Company responsible under this Agreement for such Tax is notified by the Company paying such Tax that it has
determined that no action should be taken to recoup such disallowed item, and the other Company agrees with such determination.

 

“Governmental Authority” has
the meaning set forth in the Separation Agreement.

 

“Group” has the meaning set
forth in the Separation Agreement.

 

    5

     

    

 

“Indemnified Party” means the
party which is entitled to seek indemnification from another party pursuant to the provisions of ‎Section
11.

 

“Intended Tax Treatment” means
the qualification of (i) the Contribution and the Distribution, taken together, as a reorganization within the meaning of Section 368(a)(1)(D)
of the Code and each of ADS and Loyalty Ventures as a “party to reorganization” within the meaning of Section 368(b) of the
Code, (ii) the Distribution as a tax-free transaction under section 355(a) and 361(c) of the Code, (iii) the Equity-for-Debt Exchange
as a transfer of “qualified property” to ADS’s creditors in connection with the reorganization described in clause (i)
for purposes of Section 361(c) of the Code, (iv) the Boot Purge as money distributed to ADS’s creditors in connection with the reorganization
described in clause (i) for purposes of Section 361(b) of the Code, (v) the transactions described on Schedule A as set forth therein,
and (vi) such treatment as described in each of clauses (i)-(v) under the corresponding provisions of state law.

 

“IRS” has the meaning set forth
in the Separation Agreement.

 

“LoyaltyOne Business” has the
meaning set forth in the Separation Agreement.

 

“Loyalty Ventures Carried Item”
shall mean any Tax Attribute of the Loyalty Ventures Group that may or must be carried from one Taxable period to another prior Taxable
period under the Code or other Applicable Tax Law.

 

“Loyalty Ventures Common Stock”
has the meaning set forth in the Separation Agreement.

 

“Loyalty Ventures Compensatory Equity
Interests” means any options, stock appreciation rights, restricted stock, stock units or other rights with respect to the capital
stock of Loyalty Ventures that are granted following the Distribution Time by any member of the Loyalty Ventures Group in connection with
employee, independent contractor or director compensation or other employee benefits (including, for the avoidance of doubt, options,
stock appreciation rights, restricted stock, restricted stock units, performance share units or other rights issued in respect of any
of the foregoing by reason of the Distribution or any subsequent transaction).

 

“Loyalty Ventures Disqualifying Action”
means (a) any action (or the failure to take any action) by any member of the Loyalty Ventures Group after the Distribution Time (including
entering into any agreement, understanding or arrangement or any negotiations with respect to any transaction or series of transactions),
(b) any event (or series of events) after the Distribution Time involving the capital stock of Loyalty Ventures or any assets of any member
of the Loyalty Ventures Group or (c) any breach by any member of the Loyalty Ventures Group after the Distribution Time of any representation,
warranty or covenant made by it in this Agreement, that, in each case, would affect the Intended Tax Treatment; provided,
however, that the term “Loyalty Ventures Disqualifying Action” shall not include any action entered into pursuant
to any Distribution Document (other than this Agreement) or that is undertaken pursuant to the Restructuring (including the Contribution)
or the Distribution.

 

    6

     

    

 

“Loyalty Ventures Group” has
the meaning set forth in the Separation Agreement.

 

“Loyalty Ventures Separate Tax Return”
means any Tax Return that is required to be filed by, or with respect to, any member of the Loyalty Ventures Group that is not a Combined
Tax Return.

 

“Person” has the meaning set
forth in Section 7701(a)(1) of the Code.

 

“PLR” has the meaning set forth
in the Separation Agreement.

 

“PLR Request” means any letter
or other materials submitted by ADS to the IRS in connection with the PLR.

 

“Post-Distribution Period” means
any Taxable period (or portion thereof) beginning after the Distribution Date.

 

“Pre-Distribution Loyalty Ventures Separate
Tax Return” means any Loyalty Ventures Separate Tax Return that relates in whole or part to a Pre-Distribution Period.

 

“Pre-Distribution Period” means
any Taxable period (or portion thereof) ending on or before the Distribution Date.

 

“Restructuring” has the meaning
set forth in the Separation Agreement.

 

“Specified Event” means (i)
any failure of the Intended Tax Treatment with respect to (A) the Restructuring (including the Contribution) or (B) the Distribution,
the Equity-for-Debt Exchange or the Boot Purge or (ii) any other event, in the case of clause (i) or (ii), that results in (x) a liability
for Taxes with respect to a Pre-Distribution Period imposed on any member of the ADS Group and (y) a Tax Attribute with respect to any
member of the Loyalty Ventures Group.

 

“Separation Agreement” has the
meaning set forth in the recitals.

 

“Separation Taxes” means any
Taxes incurred solely as a result of the failure of the Intended Tax Treatment of the Restructuring (or any step or transaction that is
a part thereof, including the Contribution) or the Distribution, the Equity-for-Debt Exchange or the Boot Purge.

 

“Straddle Tax Returns” means
a Tax Return of a member of the Loyalty Ventures Group with respect to a taxable period that includes but does not end on the Distribution
Date.

 

“Tax” (and the correlative
meaning, “Taxes,” “Taxing” and “Taxable”) means (i) any tax, including any
net income, gross income, gross receipts, recapture, alternative or add-on minimum, sales, use, business and occupation,
value-added, trade, goods and services, ad valorem, franchise, profits, net wealth, license, business royalty, withholding, payroll,
employment, capital, excise, transfer, recording, severance, stamp, occupation, premium, property, asset, real estate acquisition,
environmental, custom duty, impost, obligation, assessment, levy, tariff or other tax, governmental fee or other like assessment or
charge of any kind whatsoever, together with any interest and any penalty, addition to tax or additional amount imposed by a Taxing
Authority; or (ii) any liability of any member of the ADS Group or the Loyalty Ventures Group for the payment of any amounts
described in clause (i) as a result of any express or implied obligation to indemnify any other Person.

 

    7

     

    

 

“Tax Attribute” means net operating
loss, net capital loss, unused investment credit, unused foreign tax credit, excess charitable contribution, unused general business credit,
alternative minimum tax credit or any other Tax Item that could reduce a Tax liability.

 

“Tax Advisor” means Davis Polk
 & Wardwell LLP.

 

“Tax Item” means any item of
income, gain, loss, deduction, credit, recapture of credit or any other item that can increase or decrease Taxes paid or payable.

 

“Tax Opinion” shall mean the
legal opinion or legal opinions delivered to ADS by the Tax Advisor with respect to certain U.S. federal income tax consequences of the
Restructuring, the Contribution and/or the Distribution, the Equity-for-Debt Exchange or the Boot Purge.

 

“Tax Proceeding” means any Tax
audit, dispute, examination, contest, litigation, arbitration, action, suit, claim, cause of action, review, inquiry, assessment, hearing,
complaint, demand, investigation or proceeding (whether administrative, judicial or contractual).

 

“Tax-Related Losses” means,
with respect to any Taxes imposed pursuant to any settlement, determination, judgment or otherwise, (i) all accounting, legal and other
professional fees, and court costs incurred in connection with such Taxes, as well as any other out-of-pocket costs incurred in connection
with such Taxes and (ii) all damages, costs, and expenses associated with stockholder litigation or controversies and any amount paid
by any member of the ADS Group or any member of the Loyalty Ventures Group in respect of the liability of shareholders, whether paid to
shareholders or to the IRS or any other Taxing Authority.

 

“Tax Refund” means any refund,
reimbursement, offset, credit, or other similar benefit in respect of Taxes (including any overpayment of Taxes that can be refunded or,
alternatively, applied against other Taxes payable), including any interest paid on or with respect to such refund of Taxes.

 

“Tax Representation Letters”
means the representations provided by Loyalty Ventures and ADS to the Tax Advisor in connection with the rendering by the Tax Advisor
of the Tax Opinion.

 

“Tax Return” means any Tax
return, statement, report, form, election, bill, certificate, claim or surrender (including estimated Tax returns and reports,
extension requests and forms, and information returns and reports), or statement or other document or written information filed or
required to be filed with any Taxing Authority, including any amendment thereof, appendix, schedule or attachment thereto.

 

    8

     

    

 

“Taxing Authority” means any
Governmental Authority (domestic or foreign), including, without limitation, any state, municipality, political subdivision or governmental
agency, responsible for the imposition, assessment, administration, collection, enforcement or determination of any Tax.

 

“Transfer Taxes” means all U.S.
federal, state, local or non-U.S. sales, use, privilege, value added, transfer, documentary, stamp, duties, real estate transfer, controlling
interest transfer, recording and similar Taxes and fees (including any penalties, interest or additions thereto) imposed upon any member
of the ADS Group or any member of the Loyalty Ventures Group in connection with the Restructuring (including the Contribution), the Distribution,
the Equity-for-Debt Exchange or the Boot Purge.

 

“Treasury Regulations” means
the regulations promulgated from time to time under the Code as in effect for the relevant taxable period.

 

(b)              
Each of the following terms is defined in the Section set forth opposite such term:

 

	
    Term
	
    Section

	Compensation Liability	‎Section 7(b)
	Compensation Tax Benefit	‎Section 7(b)
	Due Date	‎Section 12(a)
	Indemnified Party	‎‎Section 11(d)
	Past Practices	‎Section 4(f)(i)
	Proposed Acquisition Transaction	‎Section 9(b)(iv)
	PTI	‎Section 5(b)
	Section 336(e) Election	‎Section 10(a)
	Section 9(b)(iv)(F) Acquisition Transaction	‎‎‎Section 9(b)(iv)
	Tax Arbiter	‎Section 24
	Tax Materials	‎Section 9(a)
	Tax Refund Recipient	‎Section 8(c)

 

(c)              
All capitalized terms used but not defined herein shall have meanings set forth in the Separation Agreement. Any term used in this
Agreement which is not defined in this Agreement or the Separation Agreement shall, to the extent the context requires, have the meaning
assigned to it in the Code or the applicable Treasury Regulations thereunder (as interpreted in administrative pronouncements and judicial
decisions) or in comparable provisions of Applicable Tax Law.

 

Section 2.          Sole
Tax Sharing Agreement. Any and all existing Tax sharing agreements or arrangements, written or unwritten, between any member of
the ADS Group, on the one hand, and any member of the Loyalty Ventures Group, on the other hand, if not previously terminated, shall
be terminated as of the Distribution Date without any further action by the parties thereto. Following the Distribution, no member
of the Loyalty Ventures Group or the ADS Group shall have any further rights or liabilities thereunder, and this Agreement and the
Distribution Documents (to the extent such Distribution Documents reflect an agreement between the Parties as to Tax sharing) shall
be the sole Tax sharing agreement between the members of the Loyalty Ventures Group on the one hand, and the members of the ADS
Group, on the other hand.

 

    9

     

    

 

 

Section 3.         
Allocation of Taxes.

 

(a)              
General Allocation Principles. Except as provided in ‎Section
3(c) or ‎Section 11, all Taxes shall be allocated as follows:

 

(i)                
Allocation of Taxes for Combined Tax Returns. Except as provided in ‎Section
3(b), ADS shall be allocated all Taxes reported, or required to be reported, on any Combined Tax Return that any member of the ADS Group
files or is required to file under the Code or other Applicable Tax Law; provided, however, that to the extent any such Combined
Tax Return includes any Tax Item attributable to (A) any member of the Loyalty Ventures Group or (B) the LoyaltyOne Business, in each
case, in respect of any Post-Distribution Period, Loyalty Ventures shall be allocated all Taxes attributable to such Tax Items as determined
by ADS in its reasonable discretion.

 

(ii)             
Allocation of Taxes Reflected on Separate Tax Returns.

 

(A)            
ADS shall be allocated all Taxes reported, or required to be reported, on (x) an ADS Separate Tax Return and (y) a Pre-Distribution
Loyalty Ventures Separate Tax Return; provided, however, that to the extent any such Pre-Distribution Loyalty Ventures Separate
Tax Return includes any Tax Item attributable to (A) any member of the Loyalty Ventures Group or (B) the LoyaltyOne Business, in each
case, in respect of any Post-Distribution Period, Loyalty Ventures shall be allocated all Taxes attributable to such Tax Items as determined
by ADS in its reasonable discretion.

 

(B)             
Loyalty Ventures shall be allocated all Taxes reported, or required to be reported, on a Loyalty Ventures Separate Tax Return other
than a Pre-Distribution Loyalty Ventures Separate Tax Return.

 

(iii)           
Taxes Not Reported on Tax Returns.

 

(A)            
ADS shall be allocated any Tax attributable to any member of the ADS Group that is not required to be reported on a Tax Return.

 

(B)             
Loyalty Ventures shall be allocated any Tax attributable to any member of the Loyalty Ventures Group that is not required to be
reported on a Tax Return.

 

(b)              
Allocation Conventions. Except as otherwise set forth in ‎Section
3(c):

 

    10

     

    

 

(i)                
 All Taxes allocated pursuant to ‎Section 3(a) shall be allocated
in accordance with the Closing of the Books Method; provided, however, that if a Loyalty Ventures Group member does not close its
Taxable year on the Distribution Date, the Tax attributable to the operations of the members of the Loyalty Ventures Group for any Pre-Distribution
Period shall be the Tax computed using a hypothetical closing of the books consistent with the Closing of the Books Method (except to
the extent otherwise agreed upon by ADS and Loyalty Ventures).

 

(ii)             
Any Tax Item of Loyalty Ventures or any member of the Loyalty Ventures Group arising from a transaction engaged in outside the
ordinary course of business on the Distribution Date after the Distribution Time shall be allocable to Loyalty Ventures and any such transaction
by or with respect to Loyalty Ventures or any member of the Loyalty Ventures Group occurring after the Distribution Time shall be treated
for all Tax purposes (to the extent permitted by Applicable Tax Law) as occurring at the beginning of the day following the Distribution
Date in accordance with the principles of Treasury Regulations Section 1.1502-76(b) (assuming no election is made under Treasury Regulations
Section 1.1502-76(b)(2)(ii) (relating to a ratable allocation of a year’s Tax Items)); provided that the foregoing shall
not include any action that is undertaken pursuant to the Restructuring (including the Contribution) or the Distribution.

 

(c)              
Special Allocation Rules. Notwithstanding any other provision in this ‎Section
3, the following Taxes shall be allocated as follows:

 

(i)                
Transfer Taxes. Transfer Taxes shall be allocated 50% to ADS and 50% to Loyalty Ventures, provided that with respect
to any such Transfer Tax that is recoverable, ADS or Loyalty Ventures, as applicable, shall use commercially reasonable efforts to recover,
all or a portion of, such Transfer Tax from the relevant Tax authority.

 

(ii)             
Taxes Relating to ADS Compensatory Equity Interests. Any Tax liability (including, for the avoidance of doubt, the satisfaction
of any withholding Tax obligation) relating to the issuance, exercise, vesting or settlement of any ADS Compensatory Equity Interest shall
be allocated in a manner consistent with ‎Section 7.

 

(iii)           
Section 965 Taxes. Liability for any installment payments required to be made pursuant to the election made by a member
of the ADS Group or a member of the Loyalty Ventures Group (that was a member of such Loyalty Ventures Group prior to the Distribution
Date) under Section 965(h) of the Code, and any adjustments thereto, shall be allocated to ADS.

 

(iv)            
Taxes Covered by Distribution Documents. Subject to the preceding clauses of this ‎Section
3(c) and ‎Section 11, any liability or other matter relating to
Taxes that is specifically addressed in any Distribution Document shall be allocated or governed as provided in such Distribution Document.

 

    11

     

    

 

Section 4.         
Preparation and Filing of Tax Returns.

 

(a)              
Combined Tax Returns.

 

(i)                
ADS shall prepare and file, or cause to be prepared and filed, Combined Tax Returns for which a member of a Combined Group is required
or, as provided in ‎Section 4‎(f)(iii),
elects to file a Combined Tax Return. Each member of any such Combined Group shall execute and file such consents, elections and other
documents as may be required, appropriate or otherwise requested by ADS in connection with the filing of such Combined Tax Returns.

 

(ii)             
To the extent the Combined Tax Return reflects operations of Loyalty Ventures Group for a Taxable period that includes the Distribution
Date, ADS shall include in such Combined Tax Return the results of such member of the Loyalty Ventures Group, as the case may be, on the
basis of the Closing of the Books Method to the extent permitted by Applicable Tax Law.

 

(b)              
Straddle Tax Returns and Pre-Distribution Loyalty Ventures Separate Tax Returns. Loyalty Ventures shall prepare, or cause
to be prepared, all Straddle Tax Returns and all Pre-Distribution Loyalty Ventures Separate Tax Returns. Loyalty Ventures shall submit
to ADS a copy of each Straddle Tax Return and each Pre-Distribution Loyalty Ventures Separate Tax Return no later than 30 days prior to
the date such Tax Return is required to be filed, and Loyalty Ventures shall reflect any reasonable comments on such Tax Returns with
respect to a Pre-Distribution Period provided by ADS no later than 10 days prior to the date such Tax Return is required to be filed.
Loyalty Ventures shall not file or cause to be filed any Straddle Tax Returns or Pre-Distribution Loyalty Ventures Separate Tax Returns
without the consent of ADS, which consent shall not be unreasonably withheld or delayed. The Parties shall work together to resolve any
issues arising out of the review of such Tax Returns pursuant to ‎Section
24. Loyalty Ventures shall file, or cause to be filed, any such Straddle Tax Returns and Pre-Distribution Loyalty Ventures Separate Tax
Returns required to be filed.

 

(c)              
Other Loyalty Ventures Separate Tax Returns. Loyalty Ventures shall prepare and file (or cause to be prepared and filed)
all Loyalty Ventures Separate Tax Returns other than Pre-Distribution Loyalty Ventures Separate Tax Returns.

 

(d)              
Provision of Information; Timing. Loyalty Ventures shall maintain all necessary information for ADS (or any of its Affiliates)
to file any Tax Return that ADS is required or permitted to file under this ‎Section
4, and shall provide to ADS all such necessary information in accordance with the ADS Group’s past practice. ADS shall maintain
all necessary information for Loyalty Ventures (or any of its Affiliates) to file any Tax Return that Loyalty Ventures is required or
permitted to file under this ‎Section 4, and shall provide Loyalty
Ventures with all such necessary information in accordance with the Loyalty Ventures Group’s past practice. Without limiting the
foregoing, the party that files, or causes to be filed, any Tax Return shall maintain contemporaneous transfer pricing documentation,
in compliance with all applicable laws, with respect to such Tax Returns.

 

    12

     

    

 

(e)              
 Review of Combined Tax Returns with Loyalty Ventures Tax Liability. ADS shall submit to Loyalty Ventures a draft of the
portions of any Combined Tax Returns that relate solely to any member of the Loyalty Ventures Group and that reflect a Tax liability allocated
to Loyalty Ventures pursuant to ‎Section 3(a)(i). ADS shall use
(x) commercially reasonable efforts to make such portions of a Tax Return available for review as required under this paragraph no later
than 30 days prior to the due date for filing of such Tax Return and (y) commercially reasonable efforts to have such Tax Return modified
to reflect any reasonable comments provided by Loyalty Ventures no later than 10 days prior to the due date for filing, taking into account
the party responsible for payment of the Tax (if any) reported on such Tax Return and the materiality of the Tax liability allocable to
the requesting party with respect to such Tax Return.

 

(f)               
Special Rules Relating to the Preparation of Tax Returns.

 

(i)                
General Rule. Except as provided in this ‎Section
4‎(f), Loyalty Ventures shall prepare (or cause to be prepared)
any Tax Return, with respect to Taxable periods (or portions thereof) ending prior to or on the Distribution Date, for which it is responsible
under this ‎Section 4 in accordance with past practices, accounting
methods, elections or conventions (“Past Practices”) used by the members of the ADS Group prior to the Distribution
Date with respect to such Tax Return to the extent permitted by Applicable Law, and to the extent any items, methods or positions are
not covered by Past Practices, as directed by ADS in its reasonable discretion to the extent permitted by Applicable Law.

 

(ii)             
Consistency with Intended Tax Treatment. All Tax Returns that include any member of the ADS Group or any member of the Loyalty
Ventures Group shall be prepared in a manner that is consistent with the Intended Tax Treatment.

 

(iii)           
Election to File Combined Tax Returns. ADS shall have the sole discretion to file any Combined Tax Return if the filing
of such Tax Return is elective under Applicable Tax Law. Each member of any such Combined Group shall execute and file such consents,
elections and other documents as may be required, appropriate or otherwise requested by ADS in connection with the filing of such Combined
Tax Returns.

 

(iv)            
Preparation of Transfer Tax Returns. The Company required under Applicable Tax Law to file any Tax Returns in respect of
Transfer Taxes shall prepare and file (or cause to be prepared and filed) such Tax Returns. If required by Applicable Tax Law, ADS and
Loyalty Ventures shall, and shall cause their respective Affiliates to, cooperate in preparing and filing, and join the execution of,
any such Tax Returns.

 

(v)              
Payment of Taxes. ADS shall pay (or cause to be paid) to the proper Taxing Authority the Tax shown as due on any Tax Return
for which a member of the ADS Group is responsible for filing under this ‎Section
4, and Loyalty Ventures shall pay (or cause to be paid) to the proper Taxing Authority the Tax shown as due on any Tax Return for which
a member of the Loyalty Ventures Group is responsible for filing under ‎Section
4. If any member of the ADS Group is required to make a payment to a Taxing Authority for Taxes allocated to Loyalty Ventures under ‎Section
3, Loyalty Ventures shall pay the amount of such Taxes to ADS in accordance with ‎Section
11 and ‎Section 12. If any member of the Loyalty Ventures Group
is required to make a payment to a Taxing Authority for Taxes allocated to ADS under ‎Section
3, ADS shall pay the amount of such Taxes to Loyalty Ventures in accordance with ‎Section
11 and ‎Section 12.

 

    13

     

    

 

Section 5.         
Apportionment of Earnings and Profits and Tax Attributes.

 

(a)              
Tax Attributes arising in a Pre-Distribution Period will be allocated to (and the benefits and burdens of such Tax Attributes will
inure to) the members of the ADS Group and the members of the Loyalty Ventures Group in accordance with ADS’s historical practice
as determined by ADS in its sole discretion (including historical methodologies for making corporate allocations), if any, the Code, Treasury
Regulations, and any applicable state, local and foreign law.

 

(b)              
Upon the reasonable request of Loyalty Ventures in writing, ADS shall in good faith, based on information reasonably available
to it, advise Loyalty Ventures in writing, as soon as reasonably practicable after the receipt of such request, of ADS’s estimate
of the portion, if any, of any earnings and profits, previously taxed earnings and profits (within the meaning of Section 959 of the Code
(“PTI”)), Tax Attributes, tax basis, overall foreign loss or other consolidated, combined or unitary attribute which
ADS determines is expected to be allocated or apportioned to the members of the Loyalty Ventures Group under Applicable Tax Law. In the
event of any adjustments to the previously delivered estimates of the portion of earnings and profits, Tax Attributes, Tax basis, overall
foreign loss or other consolidated, combined or unitary attribute determined by ADS, ADS shall promptly advise Loyalty Ventures in writing
of such adjustment. Loyalty Ventures shall reimburse ADS for all reasonable third-party costs and expenses actually incurred by the ADS
Group in connection with providing such estimation requested by Loyalty Ventures within forty-five (45) days after receiving an invoice
from ADS therefor. For the avoidance of doubt, ADS shall not be liable to any member of the Loyalty Ventures Group for any failure of
any determination under this ‎Section 5(b) to be accurate under
Applicable Tax Law, provided such determination was made in good faith. All members of the Loyalty Ventures Group shall prepare all Tax
Returns in accordance with the written notices provided by ADS to Loyalty Ventures pursuant to this ‎Section
5(b).

 

(c)               Except
as otherwise provided herein, to the extent that the amount of any earnings and profits, PTI, Tax Attributes, Tax basis, overall
foreign loss or other consolidated, combined or unitary attribute allocated to members of the ADS Group or the Loyalty Ventures
Group pursuant to ‎Section 5(b) is later reduced or increased
by a Taxing Authority or as a result of a Tax Proceeding, such reduction or increase shall be allocated to the Company to which such
earnings and profits, Tax Attributes, Tax basis, overall foreign loss or other consolidated, combined or unitary attribute was
allocated pursuant to this ‎Section 5, as determined by ADS in
good faith.

 

    14

     

    

 

Section 6.         
Utilization of Tax Attributes.

 

(a)              
Amended Returns. Any amended Tax Return or claim for a Tax Refund with respect to any member of the Loyalty Ventures Group
may be made only by the party responsible for preparing the original Tax Return with respect to such member of the Loyalty Ventures Group
pursuant to ‎Section 4.

 

(b)              
ADS Discretion. Loyalty Ventures hereby agrees that ADS shall be entitled to determine in its sole discretion whether to
(x) file or to cause to be filed any claim for a Tax Refund or adjustment of Taxes with respect to any Combined Tax Return in order to
claim in any Pre-Distribution Period any Loyalty Ventures Carried Item, (y) make or cause to be made any available elections to waive
the right to claim in any Pre-Distribution Period, with respect to any Combined Tax Return, any Loyalty Ventures Carried Item, and (z)
make or cause to be made any affirmative election to claim in any Pre-Distribution Period any Loyalty Ventures Carried Item, in each case,
to the extent such election or filing does not result in any increase in Tax allocated to a member of the Loyalty Ventures Group under
this Agreement (including, for the avoidance of doubt, any amounts allocated to Loyalty Ventures pursuant to ‎Section
3(c)). Subject to ‎Section 6(c), Loyalty Ventures shall submit a
written request to ADS in order to seek ADS’s consent with respect to any of the actions described in this ‎Section
6(b).

 

(c)              
Loyalty Ventures Carrybacks to Combined Tax Returns.

 

(i)                
Subject to ‎Section 6(b), each member of the Loyalty Ventures
Group shall elect, to the extent permitted by Applicable Tax Law, to forgo the right to carry back any Loyalty Ventures Carried Item from
a Post-Distribution Period to a Combined Tax Return.

 

(ii)             
If a member of the Loyalty Ventures Group determines that it is required by Applicable Tax Law to carry back any Loyalty Ventures
Carried Item to a Combined Tax Return, it shall notify ADS in writing of such determination at least 90 days prior to filing the Tax Return
on which such carryback will be reflected. Such notification shall include a description in reasonable detail of the basis for any expected
Tax Refund and the amount thereof. If ADS disagrees with such determination, the parties shall resolve their disagreement pursuant to
the procedures set forth in ‎Section 24.

 

(iii)            For
the avoidance of doubt, if a Loyalty Ventures Carried Item is carried back to a Combined Tax Return for any reason, unless ADS Group
consents otherwise, no member of the ADS Group shall be required to make any payment to, or otherwise compensate, any member of the
Loyalty Ventures Group in respect of such Loyalty Ventures Carried Item, which consent may be subject to such conditions as ADS
Group determines in its good faith discretion (including, for example, Loyalty Ventures bearing all associated costs and expenses
and retaining an accounting firm that is acceptable to ADS Group in connection therewith).

 

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(d)              
Carryforwards to Separate Tax Returns. If a portion or all of any Tax Attribute is allocated to a member of a Combined Group
pursuant to ‎Section 5 and (i) is carried forward or back to a Pre-Distribution
Loyalty Ventures Separate Tax Return, or (ii) is carried forward or back to a ADS Separate Tax Return, any Tax Refunds arising from such
carryforward or carryback shall be retained by the ADS Group.

 

Section 7.         
Deductions and Reporting for Certain Awards.

 

(a)              
Deductions. To the extent permitted by Applicable Tax Law, income Tax deductions with respect to the issuance, exercise,
vesting or settlement after the Distribution Date of any ADS Compensatory Equity Interests or Loyalty Ventures Compensatory Equity Interests
shall be claimed (A) in the case of an active officer or employee, solely by the Group that employs such Person at the time of such issuance,
exercise, vesting, or settlement, as applicable; (B) in the case of a former officer or employee, solely by the Group that was the last
to employ such Person; and (C) in the case of a director or former director (who is not an officer or employee or former officer or employee
of a member of either Group), by the Group that is the service recipient with respect to such director or former director with respect
to the ADS Compensatory Equity Interests or Loyalty Ventures Compensatory Equity Interests at issue (or, in the case of Loyalty Ventures
Compensatory Equity Interests that are issued in exchange for or in respect of ADS Compensatory Equity Interests, with respect to such
ADS Compensatory Equity Interests).

 

(b)              
ADS shall be entitled to the value of the overall net reduction in actual cash Taxes paid by the Loyalty Ventures Group (determined
on a “with and without” basis) (the “Compensation Tax Benefit”) resulting from the utilization by the Loyalty
Ventures Group under Applicable Tax Law of a Tax Attribute or a Tax deduction for a Taxable period ending after the Distribution Date
attributable to (i) the issuance, exercise, vesting or settlement after the Distribution
Date of any ADS Compensatory Equity Interests, or (ii) any liability with respect
to compensation required to be paid or satisfied by, or otherwise allocated to, any member of the ADS Group in accordance with any Distribution
Document (and not reimbursed or otherwise ultimately borne by a member of the Loyalty Ventures Group) (a “Compensation Liability”).
ADS shall be entitled to reduce any amount that would otherwise be payable to a member of the Loyalty Ventures Group in respect of a Compensation
Liability to reflect the Compensation Tax Benefit that would otherwise would result from such Compensation Liability. Any member of the
Loyalty Ventures Group that receives a Compensation Tax Benefit shall, promptly following the filing of the Tax Return that reflects such
Compensation Tax Benefit, pay to ADS an amount in cash equal to such benefit (except to the extent ADS has already been compensated for
such benefit pursuant to the immediately precedent sentence). If a Taxing Authority subsequently reduces or disallows the use of a Tax
Attribute or a Tax deduction that gave rise to a Compensation Tax Benefit by the Loyalty Ventures Group, ADS shall return an amount equal
to the overall net increase in Tax liability of the Loyalty Ventures Group owing to the Taxing Authority as a result thereof.

 

    16

     

    

 

(c)              
 Withholding and Reporting. All applicable withholding and reporting responsibilities (including all income, payroll or
other Tax reporting related to income to any current or former employee) with respect to the issuance, exercise, vesting or settlement
of such ADS Compensatory Equity Interests or Loyalty Ventures Compensatory Equity Interests shall be the responsibility of the Party to
which such responsibility has been prescribed by Section 9.02 of the Employee Matters Agreement. ADS and Loyalty Ventures acknowledge
and agree that the parties shall cooperate with each other and with third-party providers to effectuate withholding and remittance of
Taxes, as well as required Tax reporting, in a timely manner.

 

Section 8.         
Tax Refunds.

 

(a)              
ADS Tax Refunds. Except as provided by ‎Section 8(b),
ADS shall be entitled to all Tax Refunds received by any member of the ADS Group or any member of the Loyalty Ventures Group, including
but not limited to Tax Refunds resulting from the matters set forth on Schedule C. Loyalty Ventures shall not be entitled to any Tax Refunds
received by any member of the ADS Group or the Loyalty Ventures Group, except as set forth in ‎Section
8(b).

 

(b)              
Loyalty Ventures Tax Refunds. Loyalty Ventures shall be entitled to any Tax Refunds received by any member of the ADS Group
or any member of the Loyalty Ventures Group after the Distribution Date with respect to any Tax allocated to a member of the Loyalty Ventures
Group under this Agreement.

 

(c)              
A Company (a “Tax Refund Recipient”) receiving (or realizing) a Tax Refund to which another Company is entitled
hereunder shall pay over the amount of such Tax Refund (including interest received from the relevant Taxing Authority, but net of any
Taxes imposed with respect to such Tax Refund or the payment of such Tax Refund and any other reasonable costs associated therewith incurred
after the Distribution Time, including third-party expenses incurred after the Distribution Time in connection with the application for
or any Tax Proceeding with respect to such Tax Refund) within thirty (30) days of receipt thereof (or from the due date for payment of
any Tax reduced thereby); provided, however, that the other Company, upon the request of such Tax Refund Recipient, shall repay
the amount paid to the other Company (plus any penalties, interest or other charges imposed by the relevant Taxing Authority) in the event
that, as a result of a subsequent Final Determination, a Tax Refund that gave rise to such payment is subsequently disallowed.

 

Section 9.         
Certain Representations and Covenants.

 

(a)              
Representations.

 

(i)                
ADS, on behalf of itself and all other members of the ADS Group, hereby represents and warrants that (i) it has examined the PLR,
the PLR Request, the Tax Opinion, the Tax Representation Letters and any other materials delivered or deliverable in connection with
the issuance of the PLR, the PLR Request, the Tax Opinion and the Tax Representation Letters (collectively, the “Tax Materials”)
and (ii) the facts presented and representations that have been or will be made therein, to the extent descriptive of or otherwise relating
to ADS or any member of the ADS Group or the ADS Business, were or will be, at the time presented or represented and from such time until
and including the Distribution Date, true, correct, and complete in all material respects. ADS, on behalf of itself and all other members
of the ADS, hereby confirms and agrees to comply with any and all covenants and agreements in the Tax Materials applicable to ADS or
any member of the ADS Group or the ADS Business.

 

    17

     

    

 

(ii)             
Loyalty Ventures, on behalf of itself and all other members of the Loyalty Ventures Group, hereby represents and warrants that
(i) it has examined the Tax Materials and (ii) the facts presented and representations that have been or will be made therein, to the
extent descriptive of or otherwise relating to Loyalty Ventures or any member of the Loyalty Ventures Group or the LoyaltyOne Business,
were or will be, at the time presented or represented and from such time until and including the Distribution Date, true, correct, and
complete in all material respects. Loyalty Ventures, on behalf of itself and all other members of the Loyalty Ventures Group, hereby confirms
and agrees to comply with any and all covenants and agreements in the Tax Materials applicable to Loyalty Ventures or any member of the
Loyalty Ventures Group or the LoyaltyOne Business.

 

(iii)           
Each of ADS, on behalf of itself and all other members of the ADS Group, and Loyalty Ventures, on behalf of itself and all other
members of the Loyalty Ventures Group, represents and warrants that it knows of no fact (after due inquiry) that may cause the treatment
of the Reorganization or the Distribution to be other than the Intended Tax Treatment.

 

(iv)            
Each of ADS, on behalf of itself and all other members of the ADS Group, and Loyalty Ventures, on behalf of itself and all other
members of the Loyalty Ventures Group, represents and warrants that it has no plan or intent to take any action which is inconsistent
with any statements or representations made in the Tax Materials.

 

(v)              
Loyalty Ventures and each other member of the Loyalty Ventures Group represents that as of the date hereof, and covenants that
as of the Distribution Date, there is no plan or intention to:

 

(A)            
liquidate Loyalty Ventures or to merge or consolidate any member of the Loyalty Ventures Group with any other Person subsequent
to the Distribution, other than liquidation of entities listed in Schedule B;

 

(B)             
sell, transfer or otherwise dispose of any material asset of any member of the Loyalty Ventures Group, except in the ordinary course
of business;

 

    18

     

    

 

(C)             
 repurchase stock of Loyalty Ventures other than in a manner that satisfies the requirements of Section 4.05(1)(b) of IRS Revenue
Procedure 96-30 (as in effect prior to the amendment of such Revenue Procedure by IRS Revenue Procedure 2003-48) and consistent with any
representations made in the Tax Materials;

 

(D)            
take or fail to take any action in a manner that management of Loyalty Ventures knows, or should know, is reasonably likely to
contravene any agreement with a Taxing Authority entered into prior to the Distribution Date to which any member of the Loyalty Ventures
Group or the ADS Group is a party; or

 

(E)             
enter into any negotiations, agreements, or arrangements with respect to transactions or events (including stock issuances, pursuant
to the exercise of options or otherwise, option grants, the adoption of, or authorization of shares under, a stock option plan, capital
contributions, or acquisitions, but not including the Distribution) that could reasonably be expected to cause the Distribution to be
treated as part of a plan (within the meaning of Section 355(e) of the Code) pursuant to which one or more Persons acquire directly or
indirectly Loyalty Ventures stock representing a 50% or greater interest within the meaning of Section 355(d)(4) of the Code.

 

(b)              
Covenants.

 

(i)                
Loyalty Ventures shall not, and shall not permit any other member of the Loyalty Ventures Group to, take or fail to take any action
that constitutes a Loyalty Ventures Disqualifying Action.

 

(ii)             
Loyalty Ventures shall not, and shall not permit any other member of the Loyalty Ventures Group to, take or fail to take any action
that is inconsistent with the information and representations set forth in the Tax Materials.

 

(iii)           
Loyalty Ventures shall not, and shall not permit any other member of the Loyalty Ventures Group to, take or fail to take any action
in a manner that management of Loyalty Ventures knows, or should know, is reasonably likely to contravene any agreement with a Taxing
Authority entered into prior to the Distribution Date to which any member of the Loyalty Ventures Group or the ADS Group is a party.

 

(iv)            
During the two-year period following the Distribution Date:

 

(A)            
Loyalty Ventures shall (v) maintain its status as a company engaged in the Active Trade or Business for purposes of Section 355(b)(2)
of the Code, (w) not engage in any transaction that would result in it ceasing to be a company engaged in the Active Trade or Business
for purposes of Section 355(b)(2) of the Code, (x) cause each other member of the Loyalty Ventures Group whose Active Trade or Business
is relied upon for purposes of qualifying the Distribution for the Intended Tax Treatment to maintain its status as a company engaged
in such Active Trade or Business for purposes of Section 355(b)(2) of the Code and any such other Applicable Tax Law, (y) not engage
in any transaction or permit any other member of the Loyalty Ventures Group to engage in any transaction that would result in a member
of the Loyalty Ventures Group described in clause (x) hereof ceasing to be a company engaged in the relevant Active Trade or Business
for purposes of Section 355(b)(2) of the Code or such other Applicable Tax Law, taking into account Section 355(b)(3) of the Code for
purposes of each of clauses (v) through (y) hereof; and (z) not dispose of or permit a member of the Loyalty Ventures Group to dispose
of, directly or indirectly, any interest in a member of the Loyalty Ventures Group described in clause (x) hereof;

 

    19

     

    

 

(B)             
Loyalty Ventures shall not repurchase stock of Loyalty Ventures in a manner contrary to the requirements of Section 4.05(1)(b)
of IRS Revenue Procedure 96-30 (as in effect prior to the amendment of such Revenue Procedure by IRS Revenue Procedure 2003-48) or inconsistent
with any representations in the Tax Materials;

 

(C)             
Loyalty Ventures shall not, and shall not agree to, merge, consolidate or amalgamate with any other Person;

 

(D)            
Loyalty Ventures shall not, and shall not permit any other member of the Loyalty Ventures Group to, or to agree to, sell or otherwise
issue to any Person, any Equity Interests of Loyalty Ventures or of any other member of the Loyalty Ventures Group; provided, however,
that Loyalty Ventures may issue Equity Interests to the extent such issuances satisfy Safe Harbor VIII (relating to acquisitions in connection
with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury
Regulations Section 1.355-7(d);

 

(E)              Loyalty
Ventures shall not, and shall not permit any other member of the Loyalty Ventures Group to (I) solicit any Person to make a tender
offer for, or otherwise acquire or sell, the Equity Interests of Loyalty Ventures or any member of the Loyalty Ventures Group, (II)
participate in or support any unsolicited tender offer for, or other acquisition, issuance or disposition of, the Equity Interests
of Loyalty Ventures or any member of the Loyalty Ventures Group or (III) approve or otherwise permit any proposed business
combination or any transaction which, in the case of clauses (I), (II) or (III), individually or in the aggregate, together with (x)
the Debt-for Equity Exchange and (y) any other transaction occurring within the four-year period beginning on the date which is two
years before the Distribution Date and any other transaction which is part of a plan or series of related transactions (within the
meaning of Section 355(e) of the Code) that includes the Distribution, could result in one or more Persons acquiring (except for
acquisitions that otherwise satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s performance of
services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section
1.355-7(d)) directly or indirectly stock representing a 40% or greater interest, by vote or value, in Loyalty Ventures (or any
successor thereto) (any such transaction, a “Proposed Acquisition Transaction”); provided further that any
clarification of, or change in, the statute or regulations promulgated under Section 355(e) of the Code shall be incorporated in the
restrictions in this clause (iv) and the interpretation thereof;

 

    20

     

    

 

 

(F)             
if any member of the Loyalty Ventures Group proposes to enter into any transaction or series of transactions that is not a Proposed
Acquisition Transaction but would be a Proposed Acquisition Transaction if the percentage reflected in the definition of Proposed Acquisition
Transaction were 25% instead of 40% (a “‎Section
9(b)(iv)(F) Acquisition Transaction”), Loyalty Ventures shall provide ADS, no later than 10 Business Days following the signing
of any written agreement with respect to the Section 9(b)(iv)(F) Acquisition Transaction, a written description of such transaction (including
the type and amount of Equity Interests of Loyalty Ventures to be issued or sold in such transaction) and a certificate of the board of
directors of Loyalty Ventures to the effect that the Section 9(b)(iv)(F) Acquisition Transaction is not a Proposed Acquisition Transaction;
and

 

(G)            
Loyalty Ventures shall not, and shall not permit any other member of the Loyalty Ventures Group to, amend its certificate of incorporation
(or other organizational documents), or take any other action, whether through a stockholder vote or otherwise, affecting the voting rights
of the Equity Interests of Loyalty Ventures (including, without limitation, through the conversion of one class of Equity Interests of
Loyalty Ventures into another class of Equity Interests of Loyalty Ventures).

 

(v)              
Loyalty Ventures shall not take or fail to take, or permit any other member of the Loyalty Ventures Group to take or fail to take,
any action which prevents or could reasonably be expected to result in Tax treatment that is inconsistent with the Intended Tax Treatment.

 

(c)              
Loyalty Ventures Covenants Exceptions. Notwithstanding the provisions of ‎Section
9(b), Loyalty Ventures and the other members of the Loyalty Ventures Group may take any action that would reasonably be expected to be
inconsistent with the covenants contained in ‎Section 9(b), if
either: (i) Loyalty Ventures notifies ADS of its proposal to take such action and Loyalty Ventures and ADS obtain a ruling from the IRS
to the effect that such action will not affect the Intended Tax Treatment, provided that Loyalty Ventures agrees in writing to
bear any expenses associated with obtaining such a ruling and, provided further that the Loyalty Ventures Group shall not be relieved
of any liability under ‎Section 11(a) of this Agreement by reason
of seeking or having obtained such a ruling; or (ii) Loyalty Ventures notifies ADS of its proposal to take such action and obtains an
unqualified opinion of counsel (A) from a Tax advisor recognized as an expert in federal
income Tax matters and acceptable to ADS in its sole discretion, (B) on which ADS may rely and (C)
to the effect that such action “will” not affect the Intended Tax Treatment, provided that the Loyalty Ventures Group
shall not be relieved of any liability under ‎Section 11(a) of
this Agreement by reason of having obtained such an opinion.

 

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Section 10.     
Tax Receivables Arrangements.

 

(a)              
Section 336(e) Election. Pursuant to Treasury Regulations Sections 1.336- 2(h)(1)(i) and 1.336-2(j), ADS and Loyalty Ventures
agree that, in ADS’s discretion, a timely protective election under Section 336(e) of the Code and the Treasury Regulations issued
thereunder and under any comparable provisions of state, local or non-U.S. law for each member of the Loyalty Ventures Group that is a
domestic corporation for U.S. federal income Tax purposes with respect to the Distribution (a “Section 336(e) Election”)
will be made, and, in such case, ADS and Loyalty Ventures shall take all necessary or helpful actions to facilitate the Section 336(e)
Election. It is intended that a Section 336(e) Election will have no effect unless the Distribution is a “qualified stock disposition,”
as defined in Treasury Regulations Section 1.336(e)-1(b)(6), by reason of the application of Treasury Regulations Section 1.336-1(b)(5)(i)(B)
or Treasury Regulations Section 1.336-1(b)(5)(ii), or under any comparable provisions of state, local or non-U.S. law in any other jurisdiction.

 

(b)              
ADS TRA. If any Specified Event results in the imposition of a liability on the part of a member of the ADS Group for Taxes
(including any Taxes attributable to the Section 336(e) Election) that are not allocated to Loyalty Ventures pursuant to ‎Section
3 or ‎Section 11, (i)
ADS shall be entitled to periodic payments from Loyalty Ventures equal to the product of (x) 85% of the Tax savings attributable to Tax
Attributes arising from such Specified Event and (y) the percentage of Taxes arising from such Specified Event that are not allocated
to Loyalty Ventures pursuant to ‎Section 3 or ‎Section
11, and (ii) the Parties shall negotiate in good faith the terms of a tax receivable
agreement to govern the calculation of such payments; provided that any such tax savings in clause (i) shall be determined using
a “with and without” methodology (treating any Tax Attribute arising from any Specified Event as the last items claimed for
any Taxable year, including after the utilization of any carryforwards). Notwithstanding the foregoing, ADS may, at its sole discretion,
waive its right to receive any and all payments pursuant to this ‎Section
10(b).

 

Section 11.     
Indemnities.

 

(a)               Loyalty
Ventures Indemnity to ADS. Subject to the limitations set forth in ‎Section
11(c), except in the case of any liabilities described in ‎Section
11(b), Loyalty Ventures and each other member of the Loyalty Ventures Group shall jointly and severally indemnify ADS and the other
members of the ADS Group against, and hold them harmless, without duplication, from:

 

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(i)                
any Tax liability allocated to Loyalty Ventures pursuant to ‎Section
3;

 

(ii)             
any Tax liability and Tax-Related Losses attributable to a breach, after the Distribution Time by Loyalty Ventures or any other
member of the Loyalty Ventures Group of any representation, covenant or provision contained in this Agreement (including, for the avoidance
of doubt, any Taxes and Tax-Related Losses resulting from any breach for which the conditions set forth in ‎Section
9(c) are satisfied);

 

(iii)           
any Separation Taxes and Tax-Related Losses attributable to a Loyalty Ventures Disqualifying Action (including, for the avoidance
of doubt, any Taxes and Tax-Related Losses resulting from any action for which the conditions set forth in ‎Section
9(c) are satisfied); and

 

(iv)            
all liabilities, costs, expenses (including, without limitation, reasonable expenses of investigation and attorneys’ fees
and expenses), losses, damages, assessments, settlements or judgments arising out of or incident to the imposition, assessment or assertion
of any Tax liability or damage described in (i), (ii) or (iii), including those incurred in the contest in good faith in appropriate proceedings
relating to the imposition, assessment or assertion of any such Tax, liability or damage.

 

(b)              
ADS Indemnity to Loyalty Ventures. Subject to the limitations set forth in ‎Section
11(c), except in the case of any liabilities described in ‎Section
11(a), ADS and each other member of the ADS Group will jointly and severally indemnify Loyalty Ventures and the other members of the Loyalty
Ventures Group against, and hold them harmless, without duplication, from:

 

(i)                
any Tax liability allocated to ADS pursuant to ‎Section 3;

 

(ii)             
any Tax liability and Tax-Related Losses attributable to a breach, after the Distribution Time by ADS or any other member of the
ADS Group of any representation, covenant or provision contained in this Agreement; and

 

(iii)           
all liabilities, costs, expenses (including, without limitation, reasonable expenses of investigation and attorneys’ fees
and expenses), losses, damages, assessments, settlements or judgments arising out of or incident to the imposition, assessment or assertion
of any Tax liability or damage described in (i) or (ii), including those incurred in the contest in good faith in appropriate proceedings
relating to the imposition, assessment or assertion of any such Tax, liability or damage.

 

(c)               Cross
Indemnity. To the extent that any Tax or Tax-Related Loss is subject to indemnity pursuant to both Sections 11(a) and 11(b),
responsibility for such Tax or Tax-Related Loss shall be shared by ADS and Loyalty Ventures according to relative fault.

 

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(d)              
For purposes of this ‎Section 11, the term “Indemnified
Party” means (x) the relevant member of the ADS Group in the event any member of the ADS Group is entitled to indemnity under
‎Section 11(a) and (y) the relevant member of the Loyalty Ventures
Group in the event any member of the Loyalty Ventures Group is entitled to indemnity under ‎Section
11(b).

 

(e)              
Discharge of Indemnity. Loyalty Ventures, ADS and the members of their respective Groups shall discharge their obligations
under ‎Section 11(a) or ‎Section
11(b) hereof, respectively, by paying the relevant amount in accordance with ‎Section
12, within thirty (30) Business Days of demand therefor or, to the extent such amount is required to be paid to a Taxing Authority prior
to the expiration of such thirty (30) Business Days, at least ten (10) Business Days prior to the date by which the demanding party is
required to pay the related Tax liability. Any such demand shall include a statement showing the amount due under ‎Section
11(a) or ‎Section 11(b), as the case may be. Notwithstanding the
foregoing, if any member of the Loyalty Ventures Group or any member of the ADS Group disputes in good faith the fact or the amount of
its obligation under ‎Section 11(a) or ‎Section
11(b), then no payment of the amount in dispute shall be required until any such good faith dispute is resolved in accordance with ‎Section
24 hereof; provided, however, that any amount not paid within thirty (30) Business Days of demand therefor shall bear interest
as provided in ‎Section 12.

 

(f)               
Tax Benefits. If an indemnification obligation of any Indemnifying Party under this ‎Section
11 arises in respect of an adjustment that makes allowable to an Indemnitee any Tax benefit which would not, but for such adjustment,
be allowable, then any such indemnification obligation shall be an amount equal to (i)
the amount otherwise due but for this ‎Section 11(f), minus (ii)
the reduction in actual cash Taxes payable by the Indemnitee in the Taxable year such indemnification obligation arises, determined on
a “with and without” basis.

 

Section 12.     
Payments.

 

(a)               Timing.
All payments to be made under this Agreement (excluding, for the avoidance of doubt, any payments to a Taxing Authority described
herein) shall be made in immediately available funds. Except as otherwise provided, all such payments will be due thirty (30)
Business Days after the receipt of notice of such payment or, where no notice is required, thirty (30) Business Days after the
fixing of liability or the resolution of a dispute (the “Due Date”). Payments shall be deemed made when received.
Any payment that is not made on or before the Due Date shall bear interest at the rate equal to the “prime” rate as
published on such Due Date in the Wall Street Journal, Eastern Edition, for the period from and including the date immediately
following the Due Date through and including the date of payment. With respect to any payment required to be made under this
Agreement, ADS shall make such payment directly to Loyalty Ventures and Loyalty Ventures to ADS; provided, however, ADS has the
right to designate, by written notice to Loyalty Ventures, which member of the ADS Group will make or receive such payment, and vice
versa (unless such designation will result in unreimbursed costs for the non-designating party that cannot be mitigated with
commercially reasonable efforts). All indemnification payments shall be treated in the manner described in ‎Section
12(b).

 

    24

     

    

 

(b)              
Treatment of Payments. To the extent permitted by Applicable Tax Law, any payment made by ADS or any member of the ADS Group
to Loyalty Ventures or any member of the Loyalty Ventures Group, or by Loyalty Ventures or any member of the Loyalty Ventures Group to
ADS or any member of the ADS Group, pursuant to this Agreement, the Separation Agreement or any other Distribution Document that relates
to Taxable periods (or portions thereof) ending on or before the Distribution Date shall be treated by the parties hereto for all Tax
purposes as a distribution by Loyalty Ventures to ADS, or a capital contribution from ADS to Loyalty Ventures, as the case may be; provided,
however, that notwithstanding anything to the contrary in this ‎Section
12(b), any payment made pursuant to Section 2.08(c) of the Separation Agreement shall instead be treated as if the party required to make
a payment of received amounts had received such amounts as agent for the other party; provided further that any payment made pursuant
to (i) Section 4 of the Transition Services Agreement and (ii) other commercial arrangements, if any, between members of the ADS Group,
on the one hand, and members of the Loyalty Ventures Group, on the other hand, that will continue to be in effect following the Distribution
Date shall instead be treated as a payment for services or as required in light of the nature of such commercial arrangements. ADS and
Loyalty Ventures shall, and shall cause their Affiliates to, use commercially reasonable efforts to cooperate and take reasonable actions
to minimize any Tax liability in connection with a payment under this ‎Section
12(b). In the event that a Taxing Authority asserts that a party’s treatment of a payment described in this ‎Section
12(b) should be other than as required herein, such party shall use its reasonable best efforts to contest such assertion in a manner
consistent with ‎Section 15 of this Agreement.

 

(c)              
No Duplicative Payment. It is intended that the provisions of this Agreement shall not result in a duplicative payment of
any amount required to be paid under the Separation Agreement or any other Distribution Document, and this Agreement shall be construed
accordingly.

 

Section 13.     
Guarantees. ADS and Loyalty Ventures, as the case may be, each hereby guarantees and agrees to otherwise perform the obligations
of each other member of the ADS Group or the Loyalty Ventures Group, respectively, under this Agreement.

 

Section 14.     
Communication and Cooperation.

 

(a)              
Consult and Cooperate. ADS and Loyalty Ventures shall consult and cooperate (and shall cause each other member of their
respective Groups to consult and cooperate) fully at such time and to the extent reasonably requested by the other party in connection
with all matters subject to this Agreement. Such cooperation shall include, without limitation:

 

    25

     

    

 

(i)                
 the retention, and provision on reasonable request, of any and all information including all books, records, documentation or
other information pertaining to Tax matters relating to the Loyalty Ventures Group (or, in the case of any Tax Return of the ADS Group,
the portion of such return that relates to Taxes for which the Loyalty Ventures Group may be liable pursuant to this Agreement), any necessary
explanations of information, and access to personnel, until one year after the expiration of the applicable statute of limitation (giving
effect to any extension, waiver or mitigation thereof);

 

(ii)             
the execution of any document that may be necessary (including to give effect to ‎Section
15) or helpful in connection with any required Tax Return or in connection with any audit, proceeding, suit or action; and

 

(iii)           
the use of the parties’ commercially reasonable efforts to obtain any documentation from a Governmental Authority or a third
party that may be necessary or helpful in connection with the foregoing.

 

(b)              
Provide Information. Except as set forth in ‎Section
15, ADS and Loyalty Ventures shall keep each other reasonably informed with respect to any material development relating to the matters
subject to this Agreement.

 

(c)              
Tax Attribute Matters. ADS and Loyalty Ventures shall promptly advise each other with respect to any proposed Tax adjustments
that are the subject of an audit or investigation, or are the subject of any proceeding or litigation, and that may affect any Tax liability
or any Tax Attribute (including, but not limited to, basis in an asset or the amount of earnings and profits) of any member of the Loyalty
Ventures Group or any member of the ADS Group, respectively.

 

(d)               Confidentiality
and Privileged Information. Any information or documents provided under this Agreement shall be kept confidential by the party
receiving the information or documents, except as may otherwise be necessary in connection with the filing of required Tax Returns
or in connection with any audit, proceeding, suit or action. Without limiting the foregoing (and notwithstanding any other provision
of this Agreement or any other agreement), (i) no member of the ADS Group or Loyalty Ventures Group, respectively, shall be required
to provide any member of the Loyalty Ventures Group or ADS Group, respectively, or any other Person access to or copies of any
information or procedures other than information or procedures that relate solely to Loyalty Ventures, the business or assets of any
member of the Loyalty Ventures Group, or matters for which Loyalty Ventures or ADS Group, respectively, has an obligation to
indemnify under this Agreement, and (ii) in no event shall any member of the ADS Group or the Loyalty Ventures Group, respectively,
be required to provide any member of the Loyalty Ventures Group or ADS Group, respectively, or any other Person access to or copies
of any information if such action could reasonably be expected to result in the waiver of any privilege. Notwithstanding the
foregoing, in the event that ADS or Loyalty Ventures, respectively, determines that the provision of any information to any member
of the Loyalty Ventures Group or ADS Group, respectively, could be commercially detrimental or violate any law or agreement to which
ADS or Loyalty Ventures, respectively, is bound, ADS or Loyalty Ventures, respectively, shall not be required to comply with the
foregoing terms of this ‎Section 14(d) except to the extent
that it is able, using commercially reasonable efforts, to do so while avoiding such harm or consequence (and shall promptly provide
notice to ADS or Loyalty Ventures, to the extent such access to or copies of any information is provided to a Person other than a
member of the ADS Group or Loyalty Ventures Group (as applicable)).

 

    26

     

    

 

Section 15.     
Audits and Contest.

 

(a)              
Notice. Each of ADS or Loyalty Ventures shall promptly notify the other in writing upon the receipt of any notice of Tax
Proceeding from the relevant Taxing Authority or upon becoming aware of an actual or potential Tax Proceeding by a Taxing Authority that
may affect the liability of any member of the Loyalty Ventures Group or the ADS Group, respectively, for Taxes under Applicable Law or
this Agreement; provided, that a party’s right to indemnification under this Agreement shall not be limited in any way by
a failure to so notify, except to the extent that the Indemnifying Party is prejudiced by such failure.

 

(b)              
ADS Control. Notwithstanding anything in this Agreement to the contrary but subject to ‎Section
15(d), ADS shall have the right to control all matters relating to Separation Taxes, any ADS Separate Tax Return and any Tax Return,
or any Tax Proceeding, with respect to any Tax matters of a Combined Group or any member of a Combined Group (as such). ADS shall have
absolute discretion with respect to any decisions to be made, or the nature of any action to be taken, with respect to any Tax matter
described in the preceding sentence; provided, however, that to the extent that any Tax Proceeding relating to such a Tax matter
is reasonably likely to give rise to an indemnity obligation of Loyalty Ventures under ‎Section
11 hereof, (i) ADS shall keep Loyalty Ventures informed of all material developments and events relating to any such Tax Proceeding described
in this proviso and (ii) at its own cost and expense, Loyalty Ventures shall have
the right to participate in (but not to control) the defense of any such Tax Proceeding.

 

(c)              
Loyalty Ventures Assumption of Control; Non-Separation Taxes. If ADS determines that the resolution of any matter pursuant
to a Tax Proceeding described in ‎Section 15(b) (other than a Tax
Proceeding relating to Separation Taxes) is reasonably likely to have an adverse effect on the Loyalty Ventures Group with respect to
any Post-Distribution Period, ADS, in its sole discretion, may permit Loyalty Ventures to elect to assume control over disposition of
such matter at Loyalty Ventures’ sole cost and expense; provided, however, that if Loyalty Ventures so elects, it will (i)
be responsible for the payment of any liability arising from the disposition of such matter notwithstanding any other provision of this
Agreement to the contrary and (ii) indemnify the ADS Group for the creation of or
any increase in any liability, and any reduction of a Tax asset, of the ADS Group arising from such matter.

 

    27

     

    

 

(d)               Loyalty
Ventures Control. Loyalty Ventures shall have the right to control any Tax Proceeding relating to Loyalty Ventures Separate Tax
Returns, provided that to the extent that any Tax Proceeding relating to such a Tax matter is reasonably likely to give rise
to an indemnity obligation of ADS under ‎‎Section 11
hereof or a Tax Refund to which ADS in entitled pursuant to ‎Section
8 hereof, (i) Loyalty Ventures shall keep ADS informed of all material developments and events relating to any such Tax Proceeding,
(ii) at its own cost and expense, ADS shall have the right to participate in the defense of any such Tax Proceeding, (iii) Loyalty
Ventures shall not settle or compromise any such Tax Proceedings described in this proviso without ADS’s prior written
consent, which consent shall not be unreasonably withheld, conditioned or delayed, (iv) Loyalty Ventures shall prosecute all
elements of such Tax Proceeding, including by making commercially reasonable efforts to minimize any Tax liability and maximize any
Tax Refund at issue in such Tax Proceeding, irrespective of the Party liable for or entitled to such liability or Tax Refund; and
(v) in the event Loyalty Ventures is not complying with its obligations pursuant to Section 15(d)(iv), ADS shall have the right to
assume control of such Tax Proceeding and Loyalty Ventures shall cooperate in all respects to facilitate such assumption of control
and the subsequent prosecution of such Tax Contest (and, in such event, Loyalty Ventures shall have the rights set forth in this
proviso that ADS had prior to such assumption of control by ADS, mutatis mutandis).

 

Section 16.     
Notices. Any notice, instruction, direction or demand under the terms of this Agreement required to be in writing shall
be duly given upon delivery, if delivered by hand, facsimile transmission, email transmission, or mail, to the following addresses:

 

if to ADS or the ADS Group, to:

 

Alliance Data Systems Corporation

7500 Dallas Parkway, Suite 700

Plano, Texas 75024

Attention: General Counsel

Email: generalcounsel@alliancedata.com

 

with a copy (which shall not constitute notice) to:

 

Davis Polk & Wardwell LLP

450 Lexington Avenue

New York, New York 10017 Attention: William A. Curran

Email: william.curran@davispolk.com

 

if to Loyalty Ventures or the Loyalty Ventures
Group,

 

to:

 

Loyalty Ventures Inc.

7500 Dallas Parkway, Suite 700

Plano, Texas 75024

Attention: General Counsel

Email: generalcounsel@loyalty.com

 

    28

     

    

 

or such other address or facsimile number as such party may hereafter
specify for the purpose by notice to the other party hereto. All such notices, requests and other communications shall be deemed received
on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a Business Day
in the place of receipt. Otherwise, any such notice, request or communication shall be deemed not to have been received until the next
succeeding Business Day in the place of receipt.

 

Section 17.     
Costs and Expenses. The party that prepares any Tax Return shall bear the costs and expenses incurred in the preparation
of such Tax Return. Except as expressly set forth in this Agreement or the Separation Agreement, (i)
each party shall bear the costs and expenses incurred pursuant to this Agreement to the extent the costs and expenses are directly allocable
to a liability or obligation allocated to such party and (ii) to the extent a cost
or expense is not directly allocable to a liability or obligation, it shall be borne by the party incurring such cost or expense. For
purposes of this Agreement, costs and expenses shall include, but not be limited to, reasonable attorneys’ fees, accountants’
fees and other related professional fees and disbursements.

 

Section 18.     
Effectiveness; Termination and Survival. Except as expressly set forth in this Agreement, as between ADS and Loyalty Ventures,
this Agreement shall become effective upon the consummation of the Distribution. All rights and obligations arising hereunder shall survive
until they are fully effectuated or performed; provided that, notwithstanding anything in this Agreement to the contrary, this
Agreement shall remain in effect and its provisions shall survive for one year after the full period of all applicable statutes of limitation
(giving effect to any extension, waiver or mitigation thereof) and, with respect to any claim hereunder initiated prior to the end of
such period, until such claim has been satisfied or otherwise resolved. This agreement shall terminate without any further action at any
time before the Distribution upon termination of the Separation Agreement.

 

Section 19.     
Specific Performance. Each party to this Agreement acknowledges and agrees that damages for a breach or threatened breach
of any of the provisions of this Agreement would be inadequate and irreparable harm would occur. In recognition of this fact, each party
agrees that, if there is a breach or threatened breach, in addition to any damages, the other nonbreaching party to this Agreement, without
posting any bond, shall be entitled to seek and obtain equitable relief in the form of specific performance, temporary restraining order,
temporary or permanent injunction, attachment, or any other equitable remedy which may then be available to obligate the breaching party
(i) to perform its obligations under this Agreement or (ii)
if the breaching party is unable, for whatever reason, to perform those obligations, to take any other actions as are necessary, advisable
or appropriate to give the other party to this Agreement the economic effect which comes as close as possible to the performance of those
obligations (including transferring, or granting liens on, the assets of the breaching party to secure the performance by the breaching
party of those obligations).

 

    29

     

    

 

Section 20.     
Construction. In this Agreement, unless the context clearly indicates otherwise:

 

(a)              
 words used in the singular include the plural and words used in the plural include the singular;

 

(b)              
references to any Person include such Person’s successors and assigns but, if applicable, only if such successors and assigns
are permitted by this Agreement;

 

(c)              
except as otherwise clearly indicated, reference to any gender includes the other gender;

 

(d)              
the words “include,” “includes” and “including” shall be deemed to be followed by the words
 “without limitation”;

 

(e)              
reference to any Article, Section, Exhibit or Schedule means such Article or Section of, or such Exhibit or Schedule to, this Agreement,
as the case may be, and references in any Section or definition to any clause means such clause of such Section or definition;

 

(f)               
the words “herein,” “hereunder,” “hereof,” “hereto” and words of similar import
shall be deemed references to this Agreement as a whole and not to any particular Section or other provision hereof;

 

(g)              
reference to any agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented
and modified from time to time to the extent permitted by the provisions thereof and by this Agreement;

 

(h)              
reference to any law (including statutes and ordinances) means such law (including all rules and regulations promulgated thereunder)
as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability;

 

(i)                
relative to the determination of any period of time, “from” means “from and including,” “to”
means “to and including” and “through” means “through and including”;

 

(j)                
the titles to Articles and headings of Sections contained in this Agreement have been inserted for convenience of reference only
and shall not be deemed to be a part of or to affect the meaning or interpretation of this Agreement;

 

(k)              
unless otherwise specified in this Agreement, all references to dollar amounts herein shall be in respect of lawful currency of
the United States; and

 

(l)                
any capitalized term used in an Exhibit or Schedule but not otherwise defined therein shall have the meaning set forth in this
Agreement.

 

    30

     

    

 

 

Section 21.     
Entire Agreement; Amendments and Waivers.

 

(a)              
Entire Agreement.

 

(i)                
 This Agreement and the other Distribution Documents constitute the entire understanding of the parties with respect to the subject
matter hereof and thereof and supersede all prior agreements, understandings and negotiations, both written and oral, between the parties
with respect to the subject matter hereof and thereof. No representation, inducement, promise, understanding, condition or warranty not
set forth or incorporated by reference herein or in the other Distribution Documents has been made or relied upon by any party hereto
or any member of their Group with respect to the transactions contemplated by the Distribution Documents. This Agreement is an “Ancillary
Agreement” as such term is defined in the Separation Agreement and shall be interpreted in accordance with the terms of the
Separation Agreement in all respects, provided that in the event of any conflict or inconsistency between the terms of this Agreement,
the Separation Agreement or any other Distribution Document, the terms of this Agreement shall control in all respects.

 

(ii)             
THE PARTIES ACKNOWLEDGE AND AGREE THAT NO REPRESENTATION, WARRANTY, PROMISE, INDUCEMENT, UNDERSTANDING, COVENANT OR AGREEMENT HAS
BEEN MADE OR RELIED UPON BY ANY PARTY OTHER THAN THOSE EXPRESSLY SET FORTH OR INCORPORATED BY REFERENCE IN THIS AGREEMENT AND IN THE OTHER
DISTRIBUTION DOCUMENTS. WITHOUT LIMITING THE GENERALITY OF THE DISCLAIMER SET FORTH IN THE PRECEDING SENTENCE, NEITHER ADS NOR ANY OF
ITS AFFILIATES HAS MADE OR SHALL BE DEEMED TO HAVE MADE ANY REPRESENTATIONS OR WARRANTIES IN ANY PRESENTATION OR WRITTEN INFORMATION RELATING
TO THE LOYALTYONE BUSINESS GIVEN OR TO BE GIVEN IN CONNECTION WITH THE CONTEMPLATED TRANSACTIONS OR IN ANY FILING MADE OR TO BE MADE BY
OR ON BEHALF OF ADS OR ANY OF ITS AFFILIATES WITH ANY GOVERNMENTAL AUTHORITY, AND NO STATEMENT MADE IN ANY SUCH PRESENTATION OR WRITTEN
MATERIALS (OTHER THAN IN THE TAX MATERIALS), MADE IN ANY SUCH FILING OR CONTAINED IN ANY SUCH OTHER INFORMATION SHALL BE DEEMED A REPRESENTATION
OR WARRANTY HEREUNDER OR OTHERWISE EXCEPT AS EXPRESSLY INCORPORATED BY REFERENCE. LOYALTY VENTURES ACKNOWLEDGES THAT ADS HAS INFORMED
IT THAT NO PERSON HAS BEEN AUTHORIZED BY ADS OR ANY OF ITS AFFILIATES TO MAKE ANY REPRESENTATION OR WARRANTY IN RESPECT OF THE LOYALTYONE
BUSINESS OR IN CONNECTION WITH THE CONTEMPLATED TRANSACTIONS, UNLESS IN WRITING AND CONTAINED OR INCORPORATED BY REFERENCE IN THIS AGREEMENT
OR IN ANY OF THE OTHER DISTRIBUTION DOCUMENTS TO WHICH THEY ARE A PARTY.

 

    31

     

    

 

(b)              
Amendments and Waivers.

 

(i)                
 Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and is signed,
in the case of an amendment, by ADS and Loyalty Ventures, or in the case of a waiver, by the party against whom the waiver is to be effective.

 

(ii)             
No failure or delay by any party (or the applicable member of such party’s Group) in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof
or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive
of any rights or remedies provided by Applicable Law.

 

Section 22.     
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without
regard to the conflicts of law rules of such state.

 

Section 23.     
WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 24.     
Dispute Resolution. In the event of any dispute relating to this Agreement, the parties shall work together in good faith
to resolve such dispute within thirty (30) days. In the event that such dispute is not resolved, upon written notice by a party after
such thirty (30)-day period, the matter shall be referred to a U.S. Tax counsel or other Tax advisor of recognized national standing (the
 “Tax Arbiter”) that will be jointly chosen by the ADS and Loyalty Ventures; provided, however, that, if the
ADS and Loyalty Ventures do not agree on the selection of the Tax Arbiter after five (5) days of good faith negotiation, the Tax Arbiter
shall consist of a panel of three U.S. Tax counsel or other Tax advisors of recognized national standing with one member chosen by the
ADS, one member chosen by Loyalty Ventures, and a third member chosen by mutual agreement of the other members within the following ten
(10)-day period. Each decision of a panel Tax Arbiter shall be made by majority vote of the members. The Tax Arbiter may, in its discretion,
obtain the services of any third party necessary to assist it in resolving the dispute. The Tax Arbiter shall furnish written notice to
the parties to the dispute of its resolution of the dispute as soon as practicable, but in any event no later than ninety (90) days after
acceptance of the matter for resolution. Any such resolution by the Tax Arbiter shall be binding on the parties, and the parties shall
take, or cause to be taken, any action necessary to implement such resolution. All fees and expenses of the Tax Arbiter shall be shared
equally by the parties to the dispute.

 

Section 25.      Counterparts;
Effectiveness; Third-Party Beneficiaries. This Agreement may be signed in any number of counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become
effective when each party hereto shall have received a counterpart hereof signed by the other party hereto. Until and unless each
party has received a counterpart hereof signed by the other party hereto, this Agreement shall have no effect and no party shall
have any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication). Except for ‎Section
14(d) and the indemnification and release provisions of ‎Section
11, neither this Agreement nor any provision hereof is intended to confer any rights, benefits, remedies, obligations, or
liabilities hereunder upon any Person other than the parties hereto and their respective successors and permitted assigns.

 

    32

     

    

 

Section 26.     
Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns; provided that neither party may assign, delegate or otherwise transfer
any of its rights or obligations under this Agreement without the consent of the other party hereto. If any party or any of its successors
or permitted assigns (i) shall consolidate with or merge into any other Person and shall not be the continuing or surviving corporation
or entity of such consolidation or merger or (ii) shall transfer all or substantially
all of its properties and assets to any Person, then, and in each such case, proper provisions shall be made so that the successors and
assigns of such party shall assume all of the obligations of such party under the Distribution Documents.

 

Section 27.     
Authorization. Each of ADS and Loyalty Ventures hereby represents and warrants that it has the power and authority to execute,
deliver and perform this Agreement, on its behalf and on behalf of each member of its Group, that this Agreement has been duly authorized
by all necessary corporate action on the part of such party and each member of its Group, that this Agreement constitutes a legal, valid
and binding obligation of each such party and each member of its Group, and that the execution, delivery and performance of this Agreement
by such party and each member of its Group does not contravene or conflict with any provision or law or of its charter or bylaws or any
agreement, instrument or order binding on such party or member of its Group.

 

Section 28.     
Change in Tax Law. Any reference to a provision of the Code, Treasury Regulations or any other Applicable Tax Law shall
include a reference to any applicable successor provision of the Code, Treasury Regulations or other Applicable Tax Law.

 

Section 29.     
Performance. Each party shall cause to be performed all actions, agreements and obligations set forth herein to be performed
by any member of such party’s Group.

 

[SIGNATURE PAGE FOLLOWS]

 

    33

     

    

 

IN WITNESS WHEREOF,
the parties have executed and
delivered this Agreement as of
the day and year first written
above.

 

	 	ADS on its own behalf and on behalf of the members of the ADS Group
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[SIGNATURE PAGE TO TAX MATTERS AGREEMENT]

 

     

     

    

 

	 	Loyalty Ventures on its own behalf and on behalf of the members of the Loyalty Ventures Group
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[SIGNATURE PAGE TO TAX MATTERS AGREEMENT]Exhibit 10.3

 

FORM OF EMPLOYEE MATTERS AGREEMENT

 

by and between

 

ALLIANCE DATA SYSTEMS CORPORATION

 

and

 

LOYALTY VENTURES INC.

 

Dated as of [—]

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	Article 1
	Definitions
	 
	Section 1.01.	Definitions	1
	Article 2
	General Allocation of Liabilities; Indemnification
	 
	Section 2.01.	Allocation of Employee-Related Liabilities	7
	Section 2.02.	Indemnification	9
	 	 	 
	Article 3
	Employees and Contractors; and Employment
	 
	Section 3.01.	Transfers of Employment	9
	Section 3.02.	Employment Agreements	11
	Section 3.03.	Contractors	12
	Section 3.04.	Assignment of Specified Rights	12
	 	 	 
	Article 4
	Plans
	 
	Section 4.01.	Plan Participation	12
	Section 4.02.	Service Credit	13
	 	 	 
	Article 5
	Retirement Plans
	 
	Section 5.01.	401(k) Plan	13
	Section 5.02.	ADS EDCP	15
	Section 5.03.	Section 409A	15
	 	 	 
	Article 6
	Health and Welfare Plans; Paid Time Off and Vacation
	 
	Section 6.01.	Cessation of Participation in ADS H&W Plans; Participation in Loyalty Ventures H&W Plans	15
	Section 6.02.	Assumption of Health and Welfare Plan Liabilities	15
	Section 6.03.	Flexible Spending Account Plan Treatment	16
	Section 6.04.	Workers’ Compensation Liabilities	16
	Section 6.05.	Vacation and Paid Time Off	16
	Section 6.06.	COBRA and HIPAA	17

 

    i 

     

    

 

	Article 7
	Incentive Compensation
	 
	Section 7.01.	Incentive Compensation	17
	 	 	 
	Article 8
	Treatment of Outstanding Equity Awards
	 
	Section 8.01.	RSUs	18
	Section 8.02.	PSUs	19
	Section 8.03.	Special LTIP RSU	20
	Section 8.04.	Special Achievement RSUs	21
	Section 8.05.	Miscellaneous Terms and Actions; Tax Reporting and Withholding	21
	Section 8.06.	Employee Stock Purchase Plan	22
	 	 	 
	Article 9
	Personnel Records; Payroll and Tax Withholding
	 
	Section 9.01.	Personnel Records	22
	Section 9.02.	Payroll; Tax Reporting and Withholding	22
	 	 	 
	Article 10
	Non-U.S. Employees and Employee Plans
	 
	Section 10.01.	Special Provisions for Employees and Employee Plans Outside of the United States	23
	 	 	 
	Article 11
	General and Administrative
	 
	Section 11.01.	Sharing of Participant Information	23
	Section 11.02.	Cooperation	24
	Section 11.03.	Vendor Contracts	24
	Section 11.04.	Data Privacy	24
	Section 11.05.	Notices of Certain Events	25
	Section 11.06.	No Third Party Beneficiaries	25
	Section 11.07.	Fiduciary Matters	25
	Section 11.08.	Consent of Third Parties	26
	Section 11.09.	Sponsored Employees	26
	 	 	 
	Article 12
	Non-Solicit and No-Hire
	 
	Section 12.01.	No-Hire/Non-Solicitation of Employees	27

 

    ii 

     

    

 

	Article 13
	Miscellaneous
	 
	Section 13.01.	General	28

 

    iii 

     

    

 

SCHEDULES

 

		Schedule 8.03	Special LTIP RSUs

		Schedule 8.04	Special Achievement RSUs

 

    iv 

     

    

 

EMPLOYEE MATTERS AGREEMENT

 

EMPLOYEE MATTERS AGREEMENT
dated as of [●], 2021 (as the same may be amended from time to time in accordance with its terms, this “Agreement”),
between Alliance Data Systems Corporation, a Delaware corporation (“ADS”), and Loyalty Ventures Inc., a Delaware corporation
(“Loyalty Ventures”) (each, a “Party” and together, the “Parties”). Capitalized
terms used in this Agreement but not otherwise defined in this Agreement shall have the respective meanings ascribed to such terms in
the Separation and Distribution Agreement dated as of [•], 2021 by and between the Parties, to which this Agreement is Exhibit [•]
(the “Separation Agreement”).

 

W I T N E S E T H:

 

WHEREAS, the board of directors
of ADS (the “ADS Board”) has determined that it is in the best interests of ADS and its stockholders to separate the
Loyalty Ventures Business from the ADS Business;

 

WHEREAS, Loyalty Ventures
is a wholly owned Subsidiary of ADS that has been incorporated for the sole purpose of, and has not engaged in activities except in preparation
for, the Distribution and the transactions contemplated by this Agreement, the Separation Agreement and the other Ancillary Agreements;

 

WHEREAS, pursuant to the Separation
Agreement, ADS and Loyalty Ventures have agreed to enter into this Agreement for the purpose of allocating between them assets, liabilities
and responsibilities with respect to certain employee matters, including employee compensation and benefit plans and programs; and

 

WHEREAS, ADS and Loyalty Ventures
have agreed that, except as otherwise expressly provided herein, the general approach and philosophy underlying this Agreement is to (a) allocate
assets, Liabilities and responsibilities to the Loyalty Ventures Group (as opposed to the ADS Group) to the extent they relate to current
or former employees and other service providers primarily related to the Loyalty Ventures Business and (b) allocate assets, Liabilities
and responsibilities (other than those described in clause (a) above) to the ADS Group (as opposed to the Loyalty Ventures Group).

 

NOW, THEREFORE, in consideration
of the mutual promises contained herein and in the Separation Agreement, the Parties hereby agree as follows:

 

Article 1

Definitions

 

Section 1.01.     Definitions.
(a)  For purposes of this Agreement, the following terms shall have the following meanings:

 

“Adjusted ADS Awards”
means, collectively, the Adjusted ADS PSUs and the Adjusted ADS RSUs.

 

     

     

    

 

“Adjusted ADS PSU”
means any ADS PSU adjusted pursuant to ‎Section 8.02(b) hereto.

 

“Adjusted ADS RSU”
means any ADS RSU adjusted pursuant to ‎Section 8.01(b) hereto.

 

“ADS 401(k) Plan”
means any ADS Plan that is a defined contribution plan intended to qualify under Section 401(a) of the Code.

 

“ADS Common Stock”
has the meaning set forth in the Separation Agreement.

 

“ADS Compensation
Committee” means the compensation committee of the ADS Board.

 

“ADS Contractor”
means each individual independent contractor or consultant (other than a Loyalty Ventures Contractor) of any member of the ADS Group.

 

“ADS Director”
means a member of the ADS Board.

 

“ADS EDCP”
means the Alliance Data Systems Corporation Executive Deferred Compensation Plan, amended and restated effective January 1, 2018.

 

“ADS Employee”
means each individual who, following the Distribution Date, is (a) not a Loyalty Ventures Employee and (b) either (i) actively
employed by any member of the ADS Group or (ii) an inactive employee located in the U.S. (including any employee on short- or long-term
disability leave or other authorized leave of absence).

 

“ADS Equity Plans”
means, collectively, (a) the Alliance Data Systems Corporation 2020 Omnibus Incentive Plan, and (b) the Alliance Data Systems
Corporation 2015 Omnibus Incentive Plan (in each case, together with any successor plans thereto).

 

“ADS ESPP”
means the Alliance Data Systems Corporation 2015 Employee Stock Purchase Plan.

 

“ADS FSA”
means any ADS Plan that is a flexible spending account for health and dependent care expenses.

 

“ADS Group”
has the meaning set forth in the Separation Agreement.

 

“ADS H&W Plan”
means any ADS Plan that is an “employee welfare benefit plan” or “welfare plan” (as defined under Section 3(1) of
ERISA). For the avoidance of doubt, ADS FSAs are ADS H&W Plans and the ADS 401(k) Plan is not an ADS H&W Plan.

 

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“ADS Participant”
means any individual who is an ADS Employee or ADS Contractor, and any beneficiary, dependent, or alternate payee of such individual,
as the context requires.

 

“ADS Plan”
means any Employee Plan (other than a Loyalty Ventures Plan) sponsored, maintained, administered, contributed to or entered into by any
member of the ADS Group. For the avoidance of doubt, no Loyalty Ventures Plan is an ADS Plan.

 

“ADS Post-Distribution
Stock Value” means the volume weighted average trading price per share of ADS Common Stock, trading “regular way”,
during the five trading days immediately following the Distribution Date.

 

“ADS Pre-Distribution
Stock Value” means the volume weighted average trading price per share of ADS Common Stock, trading “regular way”
with “due bills”, during the five trading days immediately prior to the Distribution Date.

 

“ADS PSU”
means each award of restricted stock units with respect to ADS Common Stock granted under the ADS Equity Plan subject to performance-based
vesting conditions.

 

“ADS RSU”
means each award of restricted share units with respect to ADS Common Stock granted under the ADS Equity Plan (other than ADS PSUs).

 

“ADS Specified Rights”
means any and all rights to enjoy, benefit from or enforce any and all restrictive covenants, including covenants relating to non-disclosure,
non-solicitation, non-competition, confidentiality or Intellectual Property, pursuant to any Employee Plan including any Associate Confidentiality
Agreements, covering or with any Loyalty Ventures Employee, Loyalty Ventures Contractor, ADS Employee or ADS Contractor and to which any
member of the Loyalty Ventures Group or ADS Group is a party (other than Loyalty Ventures Specified Rights).

 

“COBRA”
means the continuation coverage requirements for “group health plans” under Title X of the Consolidated Omnibus Budget Reconciliation
Act of 1985, as codified in Section 4980B of the Code and Sections 601 through 608 of ERISA.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Distribution”
has the meaning set forth in the Separation Agreement.

 

“Distribution Date”
has the meaning set forth in the Separation Agreement.

 

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“Employee Plan”
means any (a) “employee benefit plan” as defined in Section 3(3) of ERISA, (b) compensation, employment,
consulting, severance, termination protection, change in control, transaction bonus, retention or similar plan, agreement, arrangement,
program or policy or (c) other plan, agreement, arrangement, program or policy providing for compensation, bonuses, profit-sharing,
equity or equity-based compensation or other forms of incentive or deferred compensation, vacation benefits, insurance (including any
self-insured arrangement), medical, dental, vision, prescription or fringe benefits, life insurance, relocation or expatriate benefits,
perquisites, disability or sick leave benefits, employee assistance program, supplemental unemployment benefits or post-employment or
retirement benefits (including compensation, pension, health, medical or insurance benefits), in each case whether or not written.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, together with the rules and regulations promulgated thereunder.

 

“Former ADS Employee”
means each individual who, as of immediately prior to the Distribution Date, is a former employee of any member of the ADS Group.

 

“H&W Plan”
means any ADS H&W Plan or Loyalty Ventures H&W Plan.

 

“HIPAA”
means the health insurance portability and accountability requirements for “group health plans” under the Health Insurance
Portability and Accountability Act of 1996, as amended, together with the rules and regulations promulgated thereunder.

 

“Liabilities”
has the meaning set forth in the Separation Agreement.

 

“Loyalty Ventures
401(k) Plan” means any Loyalty Ventures Plan that is a defined contribution plan intended to qualify under Section 401(a) of
the Code.

 

“Loyalty Ventures
Active Employee” means any individual actively employed primarily with respect to the Loyalty Ventures Business or employed
by any member of the Loyalty Ventures Group.

 

“Loyalty Ventures
Assets” has the meaning set forth in the Separation Agreement.

 

“Loyalty Ventures
Awards” means, collectively, the Loyalty Ventures PSUs and the Loyalty Ventures RSUs.

 

“Loyalty Ventures
Board” means the board of directors for Loyalty Ventures.

 

“Loyalty Ventures
Common Stock” has the meaning set forth in the Separation Agreement.

 

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“Loyalty Ventures
Compensation Committee” means the compensation committee of the Loyalty Ventures Board.

 

“Loyalty Ventures
Contractor” means each individual independent contractor or consultant who, as of the Distribution Date, primarily provides
or provided services with respect to the Loyalty Ventures Business.

 

“Loyalty Ventures
Director” means a member of the Loyalty Ventures Board.

 

“Loyalty Ventures
Employee” means each (a) individual who, as of immediately following the Distribution Date, is (i) a Loyalty Ventures
Active Employee or (ii) an inactive employee (including any Loyalty Ventures Inactive Employee) primarily employed with respect to
the Loyalty Ventures Business by any member of the Loyalty Ventures Group, but not including any Transferred Loyalty Ventures Employees,
or (b) a Transferred Loyalty Ventures Employee.

 

“Loyalty Ventures
Group” has the meaning set forth in the Separation Agreement.

 

“Loyalty Ventures
H&W Plan” means any Loyalty Ventures Plan that is (a) an “employee welfare benefit plan” or “welfare
plan” (as defined under Section 3(1) of ERISA) or (b) a similar plan that is sponsored, maintained, administered,
contributed to or entered into outside of the United States. For the avoidance of doubt, Loyalty Ventures FSAs are Loyalty Ventures H&W
Plans and the Loyalty Ventures 401(k) Plan (once adopted) is not a Loyalty Ventures H&W Plan.

 

“Loyalty Ventures
Inactive Employee” means any individual who is (i) on an approved leave of absence and (ii) receiving long-term or
short-term disability benefits under an ADS H&W Plan who is employed primarily with respect to the Loyalty Ventures Business or employed
by any member of the Loyalty Ventures Group.

 

“Loyalty Ventures
Participant” means any individual who is a Loyalty Ventures Employee or Loyalty Ventures Contractor, and any beneficiary, dependent,
or alternate payee of such individual, as the context requires.

 

“Loyalty Ventures
Plan” means any Employee Plan that (a) is or was sponsored, maintained, administered, contributed to or entered into by
any member of the Loyalty Ventures Group, whether before, as of or after the Distribution Date or (b) for which Liabilities transfer
to any member of the Loyalty Ventures Group under this Agreement or pursuant to applicable Law as a result of the Distribution.

 

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“Loyalty Ventures
Specified Rights” means any and all rights to enjoy, benefit from or enforce any and all restrictive covenants, including covenants
relating to non-disclosure, non-solicitation, non-competition, confidentiality or Intellectual Property, applicable or related, in whole
or in part, to the Loyalty Ventures pursuant to any Employee Plan, including any Associate Confidentiality Agreements, covering or with
any Loyalty Ventures Employee or Loyalty Ventures Contractor and to which any member of the Loyalty Ventures Group or ADS Group is a party;
provided that, with respect to any Intellectual Property existing, conceived, created, developed or reduced to practice prior to
the Distribution Date, the foregoing rights to enjoy, benefit from or enforce any restrictive covenants related to Intellectual Property
is limited to those restrictive covenants related to Intellectual Property included in the Loyalty Ventures Assets.

 

“Loyalty Ventures
Stock Value” means the volume weighted average trading price per share of Loyalty Ventures Common Stock, trading “regular
way”, during the five trading days immediately following the Distribution Date.

 

“Non-U.S. Loyalty
Ventures Active Employee” means any Loyalty Ventures Active Employee who is not a U.S. Loyalty Ventures Active Employee.

 

“Non-U.S. Loyalty
Ventures Participant” means any Loyalty Ventures Participant who is not a U.S. Loyalty Ventures Participant.

 

“Record Date”
has the meaning set forth in the Separation Agreement.

 

“Restricted Period”
means the period beginning on [the Distribution Date and ending on the date that the Transition Services Agreement is terminated].

 

“Special Achievement
RSUs” means the ADS RSUs listed on Schedule 8.04.

 

“Sponsored Employee”
means any Loyalty Ventures Employee set forth on Schedule 1.01(a)(ii) who is working on a visa or work permit sponsored by ADS or
an ADS Group member as of immediately prior to the Distribution Date.

 

“Transferred Loyalty
Ventures Employee” means any individual who, upon mutual agreement of the Parties, transfers employment from the ADS Group to
the Loyalty Ventures Group following the Distribution Date (whether in connection with any Ancillary Agreement or otherwise).

 

“U.S. Loyalty Ventures
Active Employee” means any Loyalty Ventures Active Employee employed or engaged in the United States.

 

“U.S. Loyalty Ventures
Inactive Employee” means any Loyalty Ventures Inactive Employee employed or engaged in the United States.

 

“U.S. Loyalty Ventures
Participant” means any Loyalty Ventures Participant employed or engaged in the United States.

 

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(b)            Each
of the following terms is defined in the Section set forth opposite such term:1

 

	Term	Section
	ADS	Preamble
	ADS Board	Preamble
	ADS Bonus Plan	‎Section 7.01
	ADS Retained Employee Liabilities	‎Section 2.01(a)
	2021 ADS Cash Bonuses	‎Section 7.01
	2021 Loyalty Ventures Cash Bonuses	‎Section 7.01
	Delayed Transfer Period	‎Section 3.01(b)
	Estimated Prorated Bonus Amount	‎Section 7.01
	Final Liquidation Date	‎Section 5.01(c)
	Loyalty Ventures	Preamble
	Loyalty Ventures Assumed Employee Liabilities	‎Section 2.01(b)
	Loyalty Ventures Bonus Plan	‎Section 7.01
	Loyalty Ventures Equity Plan	‎Section 8.05(a)
	Loyalty Ventures FSAs	‎Section 6.03
	Loyalty Ventures PSU	‎Section 8.02(c)(i)(B)
	Loyalty Ventures PSU Replacement Award	‎Section 8.02(a)
	Loyalty Ventures RSU	‎Section 8.01(a)
	Loyalty Ventures RSU Replacement Award	‎Section 8.01(a)
	Loyalty Ventures Special Awards	Section 8.04
	Personnel Records	‎Section 9.01
	Retirement Eligible Employee	‎Section 8.03
	Special LTIP RSU	‎Section 8.03
	Transition Date	‎Section 6.01(a)
	Vendor Contract	‎Section 11.03

 

Article 2

General Allocation of Liabilities; Indemnification

 

Section 2.01.     Allocation
of Employee-Related Liabilities.

 

(a)            Subject
to the terms and conditions of this Agreement, effective as of the Distribution Date, ADS shall, or shall cause the applicable member
of the ADS Group to, assume and retain, and no member of the Loyalty Ventures Group shall have any further obligation with respect to,
any and all Liabilities (i) relating to, arising out of or in respect of any ADS Participant or any ADS Plan, in each case, other
than any Loyalty Ventures Assumed Employee Liabilities (as defined below), or (ii) attributable to actions expressly specified to
be taken by any member of the ADS Group under this Agreement, in each case, (x) whether arising before, on or after the Distribution
Date, (y) whether based on facts occurring before, on or after the Distribution Date and (z) irrespective of which Person such
Liabilities are asserted against or which Person such Liabilities attached to as a matter of applicable Law or contract or (iii) expressly
assumed or retained, as applicable, by any member of the ADS Group pursuant to this Agreement (collectively, “ADS Retained Employee
Liabilities”). For the avoidance of doubt, all ADS Retained Employee Liabilities are ADS Liabilities for purposes of the Separation
Agreement.

 

 

1 Note to Draft: To be updated.

 

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(b)            Subject
to the terms and conditions of this Agreement, effective as of the Distribution Date, Loyalty Ventures shall, or shall cause the applicable
member of the Loyalty Ventures Group to, assume, and no member of the ADS Group shall have any further obligation with respect to, any
and all Liabilities (i) relating to, arising out of or in respect of any Loyalty Ventures Participant or any Loyalty Ventures Plan
or (ii) attributable to actions expressly specified to be taken by any member of the Loyalty Ventures Group under this Agreement,
in each case, (x) whether arising before, on or after the Distribution Date, (y) whether based on facts occurring before, on
or after the Distribution Date and (z) irrespective of which Person such Liabilities are asserted against or which Person such Liabilities
attached to as a matter of applicable Law or contract (collectively, “Loyalty Ventures Assumed Employee Liabilities”),
including without limitation:

 

(i)            employment,
separation or retirement agreements or arrangements to the extent applicable to any Loyalty Ventures Participant;

 

(ii)          wages,
salaries, incentive compensation, commissions, bonuses and other compensation payable to any Loyalty Ventures Participants, without regard
to when such wages, salaries, incentive compensation, equity compensation, commissions, bonuses and other compensation are or may have
been earned;

 

(iii)          severance
or similar termination-related pay or benefits applicable to any Loyalty Ventures Participant relating to the termination or alleged termination
of any Loyalty Ventures Participant’s employment or service with the Loyalty Ventures Group or ADS Group that occurs prior to, at
or after the Distribution;

 

(iv)          workers’
compensation and unemployment compensation benefits for all Loyalty Ventures Participants;

 

(v)           change
in control, transaction bonus, retention and stay bonuses payable to any Loyalty Ventures Participants;

 

(vi)          any
applicable Law (including ERISA and the Code) to the extent related to participation by any Loyalty Ventures Participant in any Employee
Plan;

 

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(vii)            any
Actions, allegations, demands, assessments, settlements or judgments relating to or involving any Loyalty Ventures Participant (including,
without limitation, those relating to labor and employment, wages, hours, overtime, employee classification, hostile workplace, civil
rights, discrimination, harassment, affirmative action, work authorization, immigration, safety and health, information privacy and security,
workers’ compensation, continuation coverage under group health plans, wage payment, hiring practice and the payment and withholding
of Taxes);

 

(viii)            any
costs or expenses incurred in designing, establishing and administering any Loyalty Ventures Plans or payroll or benefits administration
for Loyalty Ventures Participants;

 

(ix)            the
employer portion of any employment, payroll or similar Taxes relating to any of the foregoing for any Loyalty Ventures Participant; and

 

(x)            any
Liabilities expressly assumed or retained, as applicable, by any member of the Loyalty Ventures Group pursuant to this Agreement.

 

For the avoidance of doubt, all Loyalty Ventures Assumed Employee Liabilities
are Loyalty Ventures Liabilities for purposes of the Separation Agreement.

 

Section 2.02.     Indemnification.
For the avoidance of doubt, the provisions of Article 5 of the Separation Agreement shall apply to and govern the indemnification
rights and obligations of the parties with respect to the matters addressed by this Agreement.

 

Article 3

Employees and Contractors; and Employment

 

Section 3.01.     Transfers
of Employment.

 

(a)            Effective
as of the Distribution Date, (i) the employment of each Non-U.S. Loyalty Ventures Active Employee, to the extent employed at such
time, will be continued by a member of the Loyalty Ventures Group, (ii) the employment of each ADS Employee, to the extent employed
at such time, will be continued by a member of the ADS Group and (iii) each U.S. Loyalty Ventures Active Employee shall remain employed
by a member of the ADS Group through the Distribution Date, and, immediately following the Distribution Date, shall terminate employment
with the ADS Group and shall immediately commence employment with a member of the Loyalty Ventures Group and shall be treated as a Loyalty
Ventures Employee for all purposes pursuant to this Agreement. Before the Distribution Date, ADS and Loyalty Ventures shall cooperate
in good faith to transfer the employment of each Non-U.S. Loyalty Ventures Employee from the ADS Group to the Loyalty Ventures Group,
and the parties shall use their reasonable best efforts to cause all such transfers of employment to occur no later than the Distribution
Date; provided however, that the parties agree to mutually cooperate to transfer the employment of any Transferred Loyalty Ventures
Employees to the Loyalty Ventures Group as soon as possible following the Distribution Date and, unless as otherwise contemplated in connection
with the Transition Services Agreement, in no event later than the expiration of the Delayed Transfer Period.

 

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(b)            Notwithstanding
anything to the contrary in this Agreement, each Loyalty Ventures Employee who, as of the Distribution Date, is a U.S. Loyalty Ventures
Inactive Employee will continue to be employed by a member of the ADS Group until such individual returns to active service. Upon a U.S.
Loyalty Ventures Inactive Employee’s return to active service, Loyalty Ventures will make an offer of employment to such U.S. Loyalty
Ventures Inactive Employee on terms and conditions of employment consistent with (A) this Agreement and (B) the terms and conditions
of employment applicable to such U.S. Loyalty Ventures Inactive Employee at such time; provided, that such U.S. Loyalty Ventures
Inactive Employee returns to active service within 18 months following the Distribution Date (such period, the “Delayed Transfer
Period”). For the avoidance of doubt, (x) immediately following the Distribution Date, the employment of each Loyalty Ventures
Employee located in the U.S. (other than any U.S. Loyalty Ventures Inactive Employee) who is on an approved leave of absence (including
parental, military or other authorized leave of absence) will continue with or be transferred to, as applicable, the Loyalty Ventures
Group in accordance with ‎Section 3.01(a) and (y) all costs relating to
any compensation, benefits, severance or other employment-related costs in respect of U.S. Loyalty Ventures Inactive Employees will constitute
Loyalty Ventures Assumed Employee Liabilities.

 

(c)            When
required, each of the parties hereto agrees to execute, and to use their reasonable best efforts to have the applicable employees execute,
any such documentation or consents as may be necessary or desirable to reflect or effectuate any such assignments or transfers contemplated
by this ‎Section 3.01.

 

(d)            Except
as otherwise provided under the Transition Services Agreement, effective as of the Distribution Date, (i) Loyalty Ventures shall
adopt or maintain, and shall cause each member of the Loyalty Ventures Group to adopt or maintain, leave of absence programs and (ii) Loyalty
Ventures shall honor, and shall cause each member of the Loyalty Ventures Group to honor, all terms and conditions of authorized leaves
of absence which have been granted to any Loyalty Ventures Participant before the Distribution Date, including such leaves that are to
commence on or after the Distribution Date.

 

Except as provided in Section 8.05(i), with
respect to any Delayed Transfer Employee, references to the “Distribution Date” in this Agreement, as applicable, shall
in each case be deemed to refer to the date such Delayed Transfer Employee commences employment with the Loyalty Ventures Group, mutatis
mutandis, if later.

 

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Section 3.02.     Employment
Agreements.

 

(a)            With
respect to any employment, retention, severance, restrictive covenant or similar agreements with Loyalty Ventures Employees to which a
member of the Loyalty Ventures Group is not a party, or which do not otherwise transfer to a Loyalty Ventures Group member by operation
of applicable Law, the Parties shall use reasonable best efforts to assign, effective on or before the Distribution Date (or, with respect
to Delayed Transfer Employee, effective as of the applicable Delayed Transfer Date) the applicable employment, retention, severance, restrictive
covenant or similar agreement, as applicable, to a member of the Loyalty Ventures Group in the applicable jurisdiction, and Loyalty Ventures
shall, or shall cause a member of the Loyalty Ventures Group to assume and perform such agreements in accordance with their terms, in
each case as if originally entered into by such applicable member of the Loyalty Ventures Group, and the ADS Group shall cease to have
any Liabilities or responsibilities with respect thereto; provided, however, that this ‎Section 3.02(a) shall
not apply to any employment, retention, severance, restrictive covenant or similar agreements with any Loyalty Ventures Employees who
are employed in a jurisdiction outside of the United States in which the Parties do not intend for such agreements to be transferred to
the Loyalty Ventures Group.

 

(b)            With
respect to any employment, retention, severance, restrictive covenant or similar agreements with ADS Employees to which a member of the
ADS Group is not a party, or which do not otherwise transfer to an ADS Group member by operation of applicable Law, the Parties shall
use reasonable best efforts to assign, effective on or before the Distribution Date (or, with respect to Delayed Transfer Employee, effective
as of the applicable Delayed Transfer Date) the applicable employment, retention, severance, restrictive covenant or similar agreement,
as applicable, to a member of the ADS Group in the applicable jurisdiction, and ADS shall, or shall cause a member of the ADS Group to
assume and perform such agreements in accordance with their terms, in each case as if originally entered into by such applicable member
of the ADS Group, and the Loyalty Ventures Group shall cease to have any Liabilities or responsibilities with respect thereto; provided,
however, that this ‎Section 3.02(b) shall not apply to any employment,
retention, severance, restrictive covenant or similar agreements with any ADS Employees who are employed in a jurisdiction outside of
the United States in which the Parties do not intend for such agreements to be transferred to the ADS Group.

 

(c)            From
and after the Distribution Date (or, if applicable, the Delayed Transfer Date), each of ADS and Loyalty Ventures hereby agrees to comply
with and honor any employment, services, retention or severance agreement between any member of the ADS Group or the Loyalty Ventures
Group, as the case may be, on the one hand, and any ADS Employee or ADS Contractor or Loyalty Ventures Employee or Loyalty Ventures Contractor,
respectively, on the other hand, and assumes responsibility for, and, to the extent applicable, Loyalty Ventures or the relevant member
of the Loyalty Ventures Group and ADS or the relevant member of the ADS Group, respectively, shall cease to be responsible for or to otherwise
have any Liability in respect of, such agreements.

 

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Section 3.03.     Contractors.
With respect to any independent contractor or consulting agreements with Loyalty Ventures Contractors or ADS Contractors to which a Loyalty
Ventures Group member or an ADS Group member, respectively, is not a party, or which do not otherwise transfer to a Loyalty Ventures Group
member or an ADS Group member, respectively, by operation of applicable Law, the parties shall use reasonable best efforts to assign the
applicable agreements to a member of the Loyalty Ventures Group or a member of the ADS Group, as applicable, in the applicable jurisdiction,
and Loyalty Ventures or ADS, as applicable, shall, or shall cause a member of the Loyalty Ventures Group or a member of the ADS Group,
respectively, to assume and perform any obligations under such independent contractor and consulting agreements.

 

Section 3.04.     Assignment
of Specified Rights. To the extent permitted by applicable Law and the applicable agreement, if any, effective as of the Distribution
Date, (i) ADS hereby assigns, to the maximum extent possible, on behalf of itself and the ADS Group, the Loyalty Ventures Specified
Rights, to Loyalty Ventures and (ii) Loyalty Ventures hereby assigns, to the maximum extent possible, on behalf of itself and the
Loyalty Ventures Group, the ADS Specified Rights, to ADS.

 

Article 4

Plans

 

Section 4.01.     Plan
Participation.

 

(a)            Except
as otherwise expressly provided in this Agreement and subject to any provisions of the Transition Services Agreement, effective as of
immediately following the Distribution Date, (i) (x) all Loyalty Ventures Participants shall cease any participation in, and
benefit accrual under, ADS Plans other than the ADS H&W Plans (where participation will continue until the Transition Date), and (y) to
the extent applicable, all members of the Loyalty Ventures Group shall cease to be participating employers under the ADS Plans and, (ii) to
the extent applicable, (x) all ADS Participants shall cease any participation in, and benefit accrual under, Loyalty Ventures Plans
and (y) all members of the ADS Group shall cease to be participating employers under the Loyalty Ventures Plans. Prior to the Distribution
Date, ADS and Loyalty Ventures shall take all actions necessary to effectuate the actions contemplated by this ‎Section 4.01
and to cause (A) except as otherwise set forth in the Transition Services Agreement, the applicable Loyalty Ventures Group member
to have in effect such corresponding Loyalty Ventures Plan as of the Distribution Date, (B) the applicable Loyalty Ventures Group
Member to assume or retain all Liabilities with respect to each Loyalty Ventures Plan and the applicable ADS Group member to assume or
retain all Liabilities with respect to each ADS Plan, in each case, effective as of the Distribution Date and (C) all assets of any
Loyalty Ventures Plan to be transferred to or retained by the applicable Loyalty Ventures Group member in the applicable jurisdiction
and all assets of any ADS Plan to be transferred to or retained by the applicable ADS Group member in the applicable jurisdiction, in
each case, effective as of the Distribution Date. Effective as of the Distribution Date, ADS shall not be considered a fiduciary for any
Loyalty Ventures Plans.

 

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(b)            The
Parties agree that, to the extent the terms of this Agreement do not expressly prescribe the treatment of any specific compensation or
benefits matter (including, without limitation, regarding the treatment of participation in any Employee Plans or the allocation of any
Liabilities hereunder) applicable to any Delayed Transfer Employee, as the case may be, the Parties will reasonably cooperate in good
faith to cause such matter to be treated in a manner consistent with the corresponding treatment provided under this Agreement of such
matter as applicable to any Delayed Transfer Employee, respectively (or, if no such corresponding treatment is provided under the terms
of this Agreement, then such matter shall otherwise be treated in accordance with the general approach and philosophy regarding the allocation
of assets and Liabilities under the terms of this Agreement, as expressly set forth in the recitals to this Agreement).

 

Section 4.02.     Service
Credit. From and after the Distribution Date, for purposes of determining eligibility to participate, vesting and benefit accrual
under any Loyalty Ventures Plan in which a Loyalty Ventures Employee is eligible to participate on and following the Distribution Date,
such Loyalty Ventures Employee’s service with any member of the ADS Group or the Loyalty Ventures Group, as the case may be, prior
to the Distribution Date shall be treated as service with the Loyalty Ventures Group, to the extent recognized by the ADS Group or the
Loyalty Ventures Group, as applicable, under an analogous ADS Plan or Loyalty Ventures Plan, as applicable, prior to the Distribution
Date; provided, however, that such service shall not be recognized to the extent that such recognition would result in any
duplication of benefits.

 

Article 5

Retirement Plans

 

Section 5.01.     401(k) Plan.

 

(a)            Effective
as of the Distribution Date, each Loyalty Ventures Participant who participates in the ADS 401(k) Plan immediately prior to the Distribution
Date (i) will cease active participation in the ADS 401(k) Plan as of the Distribution Date, (ii) will be treated as a
terminated participant for purposes of the ADS 401(k) Plan and (iii) upon the establishment of the Loyalty Ventures 401(k) Plan
following the Distribution Date, will become eligible to participate in the Loyalty Ventures 401(k) Plan.

 

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(b)            From
and after the Distribution Date, the applicable member of the Loyalty Ventures Group shall be responsible for the administration of the
Loyalty Ventures 401(k) Plan, and no member of the ADS Group shall have any Liability or obligation (including any administration
or fiduciary obligation) with respect to the Loyalty Ventures 401(k) Plan.

 

(c)            Effective
as of the Distribution Date, other than as a result of the Distribution, participants in the ADS 401(k) Plan shall not be permitted
to purchase additional shares of Loyalty Ventures Common Stock under the ADS 401(k) Plan. Participants shall be permitted to sell
shares of Loyalty Ventures Common Stock received as a result of the Distribution at their discretion until October 27, 2022. The
remaining shares of Loyalty Ventures Common Stock received as a result of the Distribution shall be liquidated on the earlier of (i) November 1,
2022, (ii) the date the Loyalty Ventures Common Stock ceases to be readily tradable on an established securities market and (iii) the
applicable effective date for the liquidation set forth in a ruling by the Supreme Court of the United States, or by any other court of
applicable jurisdiction, to the effect that the ERISA duty of diversification would require the diversification of each investment option
offered under a defined contribution plan or otherwise require the divestiture of any single-stock fund other than a fund of employer
stock (the “Final Liquidation Date”). Proceeds from the sale of shares of Loyalty Ventures Common Stock in accordance
with the immediately preceding sentence will be invested pro rata according to the Participant’s investment election on file for
new contributions to the ADS 401(k) Plan. If the participant has no investment election on file, the ADS Investment Committee shall
direct the plan recordkeeper to direct proceeds to the ADS 401(k) Plan’s Qualified Default Alternative Investment (QDIA). In
the event that Loyalty Ventures posts a dividend during the period between the Distribution and Final Liquidation Date, the ADS 401(k) Plan
will not purchase additional shares of Loyalty Ventures Common Stock, and any cash amounts received in respect of such dividends will
follow the participant investment elections for new contributions to the ADS 401(k) Plan. If the participant has no investment election
on file, the ADS Investment Committee shall direct the plan recordkeeper to direct proceeds to the ADS 401(k) Plan’s Qualified
Default Alternative Investment (QDIA). ADS shall assume sole responsibility for ensuring that the ADS 401(k) Plan is maintained in
compliance with applicable Laws with respect to holding Loyalty Ventures Common Stock and shares of ADS Common Stock. Shares of Loyalty
Ventures Common Stock shall not be permitted to be distributed in-kind, in a lump sum or through periodic distributions of Loyalty Ventures
Common Stock, and will only be permitted to be paid in cash; provided that direct rollovers will be permitted as allowed by the
ADS 401(k) plan in the form of payment in cash.

 

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Section 5.02.     ADS
EDCP. Effective as of the Distribution Date, each Loyalty Ventures Participant who participates in the ADS EDCP as of immediately
prior to the Distribution Date will cease active participation in the ADS EDCP. For the avoidance of doubt, from and after the Distribution
Date, each Loyalty Ventures Participant shall not actively participate in the ADS EDCP, but will continue to accrue additional interest
for the duration of any waiting period prior to distribution of the applicable account balance. To the maximum extent permitted by Section 409A
of the Code, a Loyalty Ventures Participant shall be considered to have undergone a “separation from service” for purposes
of Section 409A of the Code and the ADS EDCP in connection with the Distribution, and, following the Distribution Date, any amounts
deferred pursuant to the ADS EDCP shall be treated as prescribed by the terms of the ADS EDCP, including with respect to a “separation
from service”.

 

Section 5.03.     Section 409A.
The parties shall cooperate in good faith so that the transactions contemplated by this Agreement and the Separation Agreement will not
result in adverse tax consequences under Section 409A of the Code to any Loyalty Ventures Participant, in respect of their benefits
under any Employee Plan.

 

Article 6

Health and Welfare Plans; Paid Time Off and Vacation

 

Section 6.01.     Cessation
of Participation in ADS H&W Plans; Participation in Loyalty Ventures H&W Plans.

 

(a)            Notwithstanding
anything to the contrary in ‎Section 4.01, Loyalty Ventures Participants in the United
States shall continue to participate in ADS H&W Plans pursuant to the terms of a Transition Services Agreement and Loyalty Ventures
Participants shall cease to participate in ADS H&W Plans following December 31, 2021 (the “Transition Date”).

 

(b)            Effective
as of the Transition Date, Loyalty Ventures shall cause Loyalty Ventures Participants who participate in an ADS H&W Plan immediately
prior to the Transition Date to be eligible to enroll in a corresponding Loyalty Ventures H&W Plan.

 

(c)            Subject
to the terms of the applicable Loyalty Ventures H&W Plan and applicable Law, Loyalty Ventures shall use its reasonable best efforts
to waive all limitations as to preexisting conditions, exclusions and waiting periods with respect to participation and coverage requirements
applicable to Loyalty Ventures Participants under any Loyalty Ventures H&W Plan in which any such Loyalty Ventures Participant may
be eligible to participate on or after the Transition Date to the extent that such conditions, exclusions and waiting periods are not
applicable to or had been previously satisfied by any such Loyalty Ventures Participant under the corresponding ADS H&W Plans.

 

Section 6.02.     Assumption
of Health and Welfare Plan Liabilities. Subject to ‎Section 6.01, effective as of the Transition Date, all Liabilities
relating to, arising out of, or resulting from health and welfare coverage or claims incurred on or after the Transition Date by each
Loyalty Ventures Participant under the ADS H&W Plans shall be Liabilities of the ADS Group. Notwithstanding anything to the contrary
contained herein, subject to ‎Section 6.01, any and all costs, expenses or Liabilities relating to participation by Loyalty
Ventures Participants in the ADS H&W Plans during the Delayed Transfer Period shall be reimbursed by Loyalty Ventures to the ADS Group
in accordance with the terms of the Transition Services Agreement and all costs, expenses or Liabilities relating to Loyalty Ventures
Participants located primarily in the U.S. shall be retained by the ADS Group during the period covered by the Transition Services Agreement.
For the avoidance of doubt, subject to ‎‎Section 6.03, (a) all Liabilities arising under (i) any ADS H&W
Plan with respect to Loyalty Ventures Participants or (ii) any Loyalty Ventures H&W Plan and (b) all Liabilities arising
out of, relating to or resulting from the cessation of a Loyalty Ventures Participant’s participation in any ADS H&W Plan and
transfer to a Loyalty Ventures H&W Plan as set forth herein (including any Actions or claims by any Loyalty Ventures Participants
related thereto) shall, in each case, be Loyalty Ventures Assumed Employee Liabilities.

 

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Section 6.03.     Flexible
Spending Account Plan Treatment. Each Loyalty Ventures Participant shall continue to participate in the ADS FSA in accordance with
its existing terms as contemplated by the Transition Services Agreement through December 31, 2021 (the grace period permitted by
plan design shall end on March 31, 2022 for service dates through December 31, 2021). The Loyalty Ventures Participants shall
continue to make contributions during 2021 in accordance with their elections as of the Distribution Date and shall otherwise participate
on the same terms and conditions as of prior to the Distribution Date. Effective as of January 1, 2022, Loyalty Ventures intends
to establish a flexible spending account plan for health and dependent care expenses (“Loyalty Ventures FSA”).

 

Section 6.04.     Workers’
Compensation Liabilities. Unless as otherwise expressly provided in the Separation Agreement, effective as of the Distribution Date,
all workers’ compensation Liabilities relating to, arising out of, or resulting from any claim by any Loyalty Ventures Participant
that result from an accident or from an occupational disease, regardless of whether incurred before, on or after the Distribution Date,
shall be assumed by Loyalty Ventures and shall constitute Loyalty Ventures Assumed Employee Liabilities. The parties shall cooperate with
respect to any notification to appropriate governmental agencies of the disposition and the issuance of new, or the transfer of existing,
workers’ compensation insurance policies and contracts governing the handling of claims.

 

Section 6.05.     Vacation
and Paid Time Off. Effective as of the Distribution Date, the applicable Loyalty Ventures Group member shall recognize and assume
all Liabilities with respect to vacation, holiday, sick leave, paid time off, floating holidays, personal days and other paid time off
with respect to Loyalty Ventures Participants accrued on or prior to the Distribution Date, and Loyalty Ventures shall credit each such
Loyalty Ventures Participant with such accrual; provided, that if any such vacation or paid time off is required under applicable
Law to be paid out to the applicable Loyalty Ventures Participant in connection with the Distribution, such payment will be made by Loyalty
Ventures as of the Distribution Date, and Loyalty Ventures will credit such Loyalty Ventures Participant with unpaid vacation time or
paid time off in respect thereof; it being understood that any amount of vacation or paid time off required to be paid out in connection
with the Distribution shall constitute Loyalty Ventures Assumed Employee Liabilities.

 

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Section 6.06.     COBRA
and HIPAA.

 

(a)            The
ADS Group shall administer the ADS Group’s compliance with the health care continuation coverage requirements of COBRA, the certificate
of creditable coverage requirements of HIPAA and the corresponding provisions of the ADS H&W Plans with respect to Loyalty Ventures
Participants who incur a COBRA “qualifying event” occurring on or before the Transition Date; provided that, for the
avoidance of doubt, any Liabilities related thereto shall constitute Loyalty Ventures Assumed Employee Liabilities.

 

(b)            Loyalty
Ventures shall be solely responsible for all Liabilities incurred pursuant to COBRA and for administering, at Loyalty Ventures’
expense, compliance with the health care continuation coverage requirements of COBRA, the certificate of creditable coverage requirements
of HIPAA, and the corresponding provisions of the Loyalty Ventures H&W Plans with respect to Loyalty Ventures Participants who incur
a COBRA “qualifying event” that occurs at any time after the Transition Date.

 

(c)            The
parties agree that neither the Distribution nor any assignment or transfer of the employment or services of any employee or individual
independent contractor as contemplated under this Agreement shall constitute a COBRA “qualifying event” for any purpose of
COBRA.

 

Article 7

Incentive Compensation

 

Section 7.01.     Incentive
Compensation. Each Loyalty Ventures Participant participating in any ADS Plan that is a cash bonus or cash incentive plan (each, an
 “ADS Bonus Plan”) as of immediately prior to the Distribution Date shall, as of the Distribution Date, transfer to
a Loyalty Ventures Plan that is a cash bonus or cash incentive plan (each, a “Loyalty Ventures Bonus Plan”) relating
to the Loyalty Ventures 2021 fiscal year (the “2021 Loyalty Ventures Cash Bonuses”), but shall be credited with service
for any time the Loyalty Ventures Participant provided services to ADS or the ADS Group between January 1, 2021 and the Distribution
Date. Any 2021 Loyalty Ventures Cash Bonuses that are earned and payable to Loyalty Ventures Participants under such Loyalty Ventures
Bonus Plans will be paid by Loyalty Ventures in accordance with the terms of the applicable Loyalty Ventures Bonus Plan (including terms
relating to the timing of payment); provided that at or following the Distribution Date, ADS shall determine the amount that would
be payable to Loyalty Ventures Participants pursuant to the terms of an ADS Bonus Plan for the period beginning on January 1, 2021
and ending on the Distribution Date and, within thirty (30) days following the Distribution Date, will pay such amount to Loyalty Ventures
(the “Estimated Prorated Bonus Amount”). To the extent that following the end of the Loyalty Ventures 2021 fiscal year
it is determined that the amount of the 2021 Loyalty Ventures Cash Bonuses attributable to the period prior to the Distribution Date is
(i) greater than the Estimated Prorated Bonus Amount, ADS shall reimburse Loyalty Ventures for any such excess amount and (ii) less
than the Estimated Prorated Bonus Amount, Loyalty Ventures shall reimburse ADS for any such amount.

 

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Article 8

Treatment of Outstanding Equity Awards

 

Section 8.01.     RSUs.

 

(a)            Loyalty
Ventures Participants.

 

(i)            ADS
RSUs Granted More Than a Year Prior. Effective as of three (3) Business Days prior to the Record Date, each ADS RSU
that (i) is outstanding as of three (3) Business Days prior to the Record Date, (ii) was granted more than one
year prior to such date and (iii) held by a Loyalty Ventures Participant shall immediately vest and be settled in shares of ADS
Common Stock to be credited to such Loyalty Ventures Participant’s account prior to the Record Date .

 

(ii)            ADS
RSUs Granted Less Than a Year Prior. Effective as of the Distribution Date, each ADS RSU (other than the Special Equity RSUs or Special
Cash LTIP RSUs (each as defined below)) that (i) is outstanding immediately prior to the Distribution Date, (ii) was granted
less than one year prior to such date and (iii) held by a Loyalty Ventures Participant, shall be forfeited and, as soon as reasonably
practicable following the Distribution Date, shall be replaced with (A) a new award (the “Loyalty Ventures RSU Replacement
Award”) with a grant date fair value (as determined by the Loyalty Ventures Compensation Committee) equal to 75% of the value
of the ADS RSU, with (x) one half of such Loyalty Ventures RSU Replacement Award to be granted as a restricted stock unit award with
respect to Loyalty Ventures Common Stock (the “Loyalty Ventures RSU”) that has a grant date fair value (as determined
by the Loyalty Ventures Compensation Committee) equal to 50% of the value of the Loyalty Ventures RSU Replacement Award, with the number
of shares of Loyalty Ventures Common Stock relating to such Loyalty Ventures RSU to be determined by the Loyalty Ventures Compensation
Committee, taking the ADS Pre-Distribution Stock Value multiplied by the number of ADS RSUs and divided by the Loyalty Ventures Stock
Value, with any fractional shares rounded up to the nearest whole number of shares and (y) a long-term cash incentive award equal
to 50% of the value of the Loyalty Ventures RSU Replacement Award to be determined by the Loyalty Ventures Compensation Committee, taking
the ADS Pre-Distribution Stock Value multiplied by the number of ADS RSUs and (B) a cash payment equal to 25% of the aggregate value
of such ADS RSUs valued at the ADS Pre-Distribution Stock Value.  The Loyalty Ventures RSU Replacement Awards shall be subject to
the same terms and conditions (including vesting and payment schedules) as applicable to the corresponding ADS RSUs as of immediately
prior to the Distribution Date and the cash payment pursuant to clause ‎(B) above
shall be paid by the ADS Group, subject to any applicable withholding, as soon as practicable following the Distribution Date by the ADS
Group, and in no event more than thirty (30) days following the Distribution Date.

 

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(b)            ADS
Participants. Effective as of the Distribution Date, each ADS RSU that is outstanding immediately prior to the Distribution Date and
held by an ADS Participant shall be adjusted to reflect the Distribution and become an Adjusted ADS RSU.  The number of shares of
ADS Common Stock subject to such Adjusted ADS RSU shall be determined by the ADS Compensation Committee in a manner intended to preserve
the value of such ADS RSU by multiplying the aggregate number of ADS RSUs in each grant by the ADS Pre-Distribution Stock Value divided
by the ADS Post-Distribution Stock Value, with any fractional shares rounded up to the nearest whole number of shares and provided that
in no case will such ADS RSUs result in a reduction of such ADS RSUs.  Each such Adjusted ADS RSU shall be subject to the same terms
and conditions (including vesting and payment schedules) as applicable to the corresponding ADS RSU as of immediately prior to the Distribution
Date.

 

Section 8.02.          PSUs.

 

(a)            Loyalty
Ventures Participants. Effective as of the Distribution Date, each ADS PSU that is (i) outstanding immediately prior to the Distribution
Date and (ii) held by a Loyalty Ventures Participant, shall be forfeited and, as soon as practicable following the Distribution Date,
replaced with (A) a new award (the “Loyalty Ventures PSU Replacement Award”) with a grant date fair value (as
determined by the Loyalty Ventures Compensation Committee) equal to 75% of the value of the ADS PSU based on the performance-based vesting
conditions with respect to each such ADS PSU being deemed to have been achieved at target performance level, with (x) one half of
such Loyalty Ventures PSU Replacement Award to be granted as a Loyalty Ventures RSU that has a grant date fair value (as determined by
the Loyalty Ventures Compensation Committee) equal to 50% of the value of the Loyalty Ventures PSU Replacement Award, with the number
of shares of Loyalty Ventures Common Stock relating to such Loyalty Ventures RSU to be determined by the Loyalty Ventures Compensation
Committee, multiplying the ADS Pre-Distribution Stock Value by the number of ADS PSUs and divided by the Loyalty Ventures Stock Value,
with any fractional shares rounded up to the nearest whole number of shares and (y) a long-term cash incentive award equal to 50%
of the value of the Loyalty Ventures PSU Replacement Award to be determined by the Loyalty Ventures Compensation Committee, multiplying
the ADS Pre-Distribution Stock Value by the number of ADS PSUs and (B) a cash payment equal to 25% of the aggregate value of such
ADS PSUs valued at the ADS Pre-Distribution Stock Value; in the case of each ADS PSU, as of the Distribution Date the performance-based
vesting conditions with respect to each such ADS PSU will be deemed to have been achieved at target performance level by the ADS Group.
The Loyalty Ventures PSU Replacement Awards shall be subject to the same terms and conditions (including time vesting and payment schedules
after taking into account deemed target performance) as applicable to the corresponding ADS PSU as of immediately prior to the Distribution
Date and the cash payment pursuant to clause ‎(B) above shall be paid by the ADS
Group, subject to any applicable withholding, as soon as practicable following the Distribution Date, and in no event more than thirty
(30) days following the Distribution Date.

 

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(b)            ADS
Participants. Effective as of the Distribution Date, each ADS PSU that is outstanding immediately prior to the Distribution Date and
held by an ADS Participant shall be adjusted to reflect the Distribution and become an Adjusted ADS PSU. The number of shares of ADS Common
Stock subject to such Adjusted ADS PSU shall be determined by the ADS Compensation Committee in a manner intended to preserve the value
of such ADS PSU by multiplying the aggregate number of ADS PSUs in each grant by the ADS Pre-Distribution Stock Value divided by the ADS
Post-Distribution Stock Value, with any fractional shares rounded up to the nearest whole number of shares. Each such Adjusted ADS PSU
shall be subject to the same terms and conditions (including performance-based metrics, vesting and payment schedules) as applicable to
the corresponding ADS PSU immediately prior to the Distribution Date, provided that, the performance-based metrics underlying each
such Adjusted ADS PSU may be adjusted, as determined by the ADS Compensation Committee in its sole discretion, to reflect the Distribution.

 

Section 8.03.          Special
LTIP RSU. Effective as of the Distribution Date, each ADS RSU that (i) is outstanding immediately prior to the Distribution Date,
(ii) was granted less than one year prior to such date and (iii) held by a Loyalty Ventures Participant located in each jurisdiction
set forth on Schedule 8.03 (each, a “Special LTIP RSU”), shall be forfeited and, as soon as practicable following the
Distribution Date, replaced with (A) a long-term cash incentive award equal to 75% of the value of the Special LTIP RSU to be determined
by the Loyalty Ventures Compensation Committee, multiplying the ADS Pre-Distribution Stock Value by the number of Special LTIP RSUs, that
is subject to the same vesting and payment schedules as applicable to the corresponding Special LTIP RSU as of immediately prior to the
Distribution Date and (B) a cash payment equal to 25% of the aggregate value of such Special LTIP RSUs valued at the ADS Pre-Distribution
Stock Value that is paid by the ADS Group, subject to any applicable withholding, as soon as practicable following the Distribution Date
and in no event more than thirty (30) days following the Distribution Date.

 

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Section 8.04.          Special
Achievement RSUs. Effective as of the Distribution Date, each ADS RSU identified as a Special Achievement RSU shall be forfeited in
exchange for the right to receive an amount in cash equal to the value of the Special Achievement RSU (as determined by the ADS Compensation
Committee), multiplying the ADS Pre-Distribution Stock Value by the number of Special Achievement RSUs, with such cash payment to be made
by the ADS Group, subject to any applicable withholding as soon as practicable following the Distribution Date, and in no event more than
thirty (30) days following the Distribution Date.

 

Section 8.05.          Miscellaneous
Terms and Actions; Tax Reporting and Withholding.

 

(a)            Effective
as of the Distribution Date, Loyalty Ventures shall adopt an equity incentive compensation plan for the benefit of eligible participants
(the “Loyalty Ventures Equity Plan”). Prior to the Distribution Date, each of ADS and Loyalty Ventures shall take any
actions necessary to give effect to the transactions contemplated by this Article 8‎,
including, in the case of Loyalty Ventures, the reservation and application for listing of shares of Loyalty Ventures Common Stock as
is necessary to effectuate the transactions contemplated by this ‎Article 8. From
and after the Distribution Date, (i) Loyalty Ventures shall retain the Loyalty Ventures Equity Plan, and all Liabilities thereunder
shall constitute Loyalty Ventures Assumed Employee Liabilities, and (ii) ADS shall retain the ADS Equity Plan, and all Liabilities
thereunder shall constitute ADS Retained Employee Liabilities. From and after the Distribution Date, all Adjusted ADS Awards, regardless
of by whom held, shall be granted under and subject to the terms of the ADS Equity Plan and shall be settled by ADS, and all Loyalty Ventures
Awards, regardless of by whom held, shall be granted under and subject to the terms of the Loyalty Ventures Equity Plan and shall be settled
by Loyalty Ventures.

 

(b)            Unless
otherwise required by applicable Law, (i) the applicable member of the Loyalty Ventures Group shall be responsible for all applicable
income, payroll, employment and other similar tax withholding, remittance and reporting obligations in respect of Loyalty Ventures Participants
relating to any Loyalty Ventures Awards and (ii) the applicable member of the ADS Group shall be responsible for all applicable income,
payroll, employment and other similar tax withholding, remittance and reporting obligations in respect of ADS Participants relating to
any Adjusted ADS Awards and any ADS RSUs in accordance with ‎Section 8.01(a). For
the avoidance of doubt, the Distribution shall not, in and of itself, be treated as a Change in Control (as defined in the ADS Equity
Plan or the Loyalty Ventures Equity Plan, as applicable).

 

(c)            Loyalty
Ventures shall prepare and file with the SEC a registration statement on an appropriate form with respect to the shares of Loyalty Ventures
Common Stock subject to the Loyalty Ventures Awards pursuant to this Article 8 and shall use its reasonable best efforts to have
such registration statement declared effective as soon as practicable following the Distribution Date and to maintain the effectiveness
of such registration statement covering such Loyalty Ventures Awards (and to maintain the current status of the prospectus contained therein)
for so long as any Loyalty Ventures Awards remain outstanding.

 

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(d)            Prior
to the Distribution Date, each party shall take all such steps as may be required to cause any dispositions of ADS Common Stock (including
Adjusted ADS Awards or any other derivative securities with respect to ADS Common Stock) or acquisitions of Loyalty Ventures Common Stock
(including Loyalty Ventures Awards or any other derivative securities with respect to Loyalty Ventures Common Stock) resulting from the
Distribution or the transactions contemplated by this Agreement or the Separation Agreement by each individual who is subject to the
reporting requirements of Section 16(a) of the Exchange Act with respect to ADS or who are or will become subject to such reporting
requirements with respect to Loyalty Ventures to be exempt under Rule 16b-3 promulgated under the Exchange Act.

 

Section 8.06.          Employee
Stock Purchase Plan. Effective as of the Distribution Date (or, if applicable, the Delayed Transfer Date), each Loyalty Ventures Participant
shall cease participation in the ADS ESPP.

 

Article 9

Personnel Records; Payroll and Tax Withholding

 

Section 9.01.          Personnel
Records. To the extent permitted by applicable Law, each of the Loyalty Ventures Group and the ADS Group shall be permitted by the
other to access and retain copies of such records, data and other personnel-related information in any form (“Personnel Records”)
as may be necessary or appropriate to carry out their respective obligations under applicable Law, the Separation Agreement or any of
the Ancillary Agreements, and for the purposes of administering their respective employee benefit plans and policies. All Personnel Records
shall be accessed, retained, held, used, copied and transmitted in accordance with all applicable Laws, policies and agreements between
the parties hereto.

 

Section 9.02.          Payroll;
Tax Reporting and Withholding.

 

(a)            Subject
to the obligations of the parties as set forth in the Transition Services Agreement, effective as of no later than the Distribution Date,
(i) the members of the Loyalty Ventures Group shall be solely responsible for providing payroll services (including for any payroll
period already in progress) to the Loyalty Ventures Employees and for any Liabilities with respect to garnishments of the salary and wages
thereof and (ii) the members of the ADS Group shall be solely responsible for providing payroll services (including for any payroll
period already in progress) to the ADS Employees and for any Liabilities with respect to garnishments of the salary and wages thereof.

 

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(b)            To
the extent consistent with the terms of the Tax Matters Agreement, the party that is responsible for making a payment hereunder shall
be responsible for (i) making the appropriate withholdings, if any, attributable to such payments and (ii) preparing and filing
all related required forms and returns with the appropriate Governmental Authority.

 

Article 10

Non-U.S. Employees and Employee Plans

 

Section 10.01.          Special
Provisions for Employees and Employee Plans Outside of the United States.

 

(a)            From
and after the date hereof, to the extent not addressed in this Agreement, the parties shall reasonably cooperate in good faith to effect
the provisions of this Agreement with respect to employees and employee-, compensation- and benefits-related matters outside of the United
States (including Employee Plans covering non-U.S. ADS Participants and Non-U.S. Loyalty Ventures Participants), which in all cases shall
be consistent with the general approach and philosophy regarding the allocation of assets and Liabilities (as expressly set forth in the
recitals to this Agreement).

 

(b)            Without
limiting the generality of Section 3.03(a), to the extent required by applicable Law, Loyalty Ventures or a member of the Loyalty
Ventures Group, as applicable, shall become a party to the applicable collective bargaining, works council, or similar arrangements with
respect to Loyalty Ventures Employees or Loyalty Ventures Contractors located outside of the United States and shall comply with all obligations
thereunder from and after the Distribution Date.

 

Article 11

General and Administrative

 

Section 11.01.          Sharing
of Participant Information. To the maximum extent permitted under applicable Law, ADS and Loyalty Ventures shall share, and shall
cause each member of its respective Group to reasonably cooperate with the other party hereto to (i) share, with each other and
their respective agents and vendors all participant information reasonably necessary for the efficient and accurate administration of
each of the ADS Plans and the Loyalty Ventures Plans, (ii) provide prompt written notification regarding the termination of employment
or service of any Loyalty Ventures Participant or ADS Participant to the extent relevant to the administration of an ADS Plan or Loyalty
Ventures Plan, but in no event later than 30 days following such termination of employment or service, (iii) facilitate the transactions
and activities contemplated by this Agreement and (iv) resolve any and all employment-related claims regarding Loyalty Ventures
Participants. Loyalty Ventures and its respective authorized agents shall, subject to applicable Laws, be given reasonable and timely
access to, and may make copies of, all information relating to the subjects of this Agreement in the custody of the ADS Group, to the
extent reasonably necessary for such administration. ADS Group members shall be entitled to retain copies of all Loyalty Ventures Books
and Records relating to the subjects of this Agreement in the custody of the ADS Group, subject to the terms of the Separation Agreement
and applicable Law.

 

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Section 11.02.          Cooperation.
Following the date of this Agreement, the parties shall, and shall cause their respective Subsidiaries to, cooperate in good faith
with respect to any employee compensation or benefits matters that either party reasonably determines require the cooperation of the other
party in order to accomplish the objectives of this Agreement (including, without limitation, relating to any audits by any Governmental
Authorities).

 

Section 11.03.          Vendor
Contracts. Prior to the Distribution Date, ADS and Loyalty Ventures will cooperate in good faith and use reasonable best efforts
to (a) negotiate with the current third-party providers to separate and assign to the Loyalty Ventures Group or Loyalty Ventures
Plan or the ADS Group or ADS Plan, as applicable, the applicable rights and obligations under each group insurance policy, health maintenance
organization, administrative services contract, third-party administrator agreement, letter of understanding or arrangement that pertains
to one or more ADS Plans or Loyalty Ventures Plans, respectively (each, a “Vendor Contract”), to the extent that such
rights or obligations pertain to Loyalty Ventures Participants or ADS Participants, respectively, or, in the alternative, to negotiate
with the current third-party providers to provide substantially similar services to a Loyalty Ventures Plan or ADS Plan, respectively,
on substantially similar terms under separate contracts with a member of the Loyalty Ventures Group or the Loyalty Ventures Plans or
ADS Group or the ADS Plans, respectively, as applicable and (b) to the extent permitted by the applicable third-party provider,
obtain and maintain pricing discounts or other preferential terms under the applicable Vendor Contracts.

 

Section 11.04.          Data
Privacy. Notwithstanding anything to the contrary herein, the Parties agree that any applicable data privacy laws and any other obligations
of the ADS Group and the Loyalty Ventures Group to maintain the confidentiality of any employee information held by any member of the
ADS Group or the Loyalty Ventures Group, as applicable, or any information held in connection with any Employee Plans in accordance with
applicable Law will govern the disclosure of employee information between the Parties under this Agreement. Each of ADS and Loyalty Ventures
will ensure that it has in place appropriate technical and organizational security measures to protect the personal data of the ADS Participants
and Loyalty Ventures Participants, respectively.

 

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Section 11.05.          Notices
of Certain Events. Each of Loyalty Ventures and ADS shall promptly notify and provide copies to the other of: (a) written notice
from any Person alleging that the approval or consent of such Person is or may be required in connection with the transactions contemplated
by this Agreement; (b) any written notice or other communication from any Governmental Authority in connection with the transactions
contemplated by this Agreement or the Separation Agreement; and (c) any actions, suits, claims, investigations or proceedings commenced
or, to its knowledge, threatened against, relating to or involving or otherwise affecting the Loyalty Ventures Group or the ADS Group,
as the case may be, that relate to the consummation of the transactions contemplated by this Agreement or the Separation Agreement; provided
that the delivery of any notice pursuant to this ‎Section 11.05
shall not affect the remedies available hereunder to the party receiving such notice.

 

Section 11.06.          No
Third Party Beneficiaries. Notwithstanding anything to the contrary herein, nothing in this Agreement shall: (a) create any
obligation on the part of any member of the Loyalty Ventures Group or any member of the ADS Group to retain the employment or services
of any current or former employee, director, independent contractor or other service provider; (b) be construed to create any right,
or accelerate entitlement, to any compensation or benefit whatsoever on the part of any future, present, or former employee or service
provider of any member of the ADS Group or the Loyalty Ventures Group (or any beneficiary or dependent thereof) under this Agreement,
the Separation Agreement, any ADS Plan or Loyalty Ventures Plan or otherwise; (c) preclude Loyalty Ventures or any Loyalty Ventures
Group member (or, in each case, any successor thereto), at any time after the Distribution Date, from amending, merging, modifying, terminating,
eliminating, reducing, or otherwise altering in any respect any Loyalty Ventures Plan, any benefit under any Loyalty Ventures Plan or
any trust, insurance policy, or funding vehicle related to any Loyalty Ventures Plan (in each case in accordance with the terms of the
applicable arrangement); (d) other than as required to comply with the terms of the Transition Services Agreement, preclude ADS
or any ADS Group member (or, in each case, any successor thereto), at any time after the Distribution Date, from amending, merging, modifying,
terminating, eliminating, reducing, or otherwise altering in any respect any ADS Plan, any benefit under any ADS Plan or any trust, insurance
policy, or funding vehicle related to any ADS Plan (in each case in accordance with the terms of the applicable arrangement); or (e) confer
any rights or remedies (including any third-party beneficiary rights) on any current or former employee or service provider of any member
of the ADS Group or the Loyalty Ventures Group or any beneficiary or dependent thereof or any other Person.

 

Section 11.07.          Fiduciary
Matters. ADS and Loyalty Ventures each acknowledge that actions required to be taken pursuant to this Agreement may be subject to
fiduciary duties or standards of conduct under ERISA or other applicable Law, and no party shall be deemed to be in violation of this
Agreement if it fails to comply with any provisions hereof based upon its good faith determination (as supported by advice from counsel
experienced in such matters) that to do so would violate such a fiduciary duty or standard. Each party shall be responsible for taking
such actions as are deemed necessary and appropriate to comply with its own fiduciary responsibilities and shall fully release and indemnify
the other party for any Liabilities caused by the failure to satisfy any such responsibility.

 

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Section 11.08.          Consent
of Third Parties. If any provision of this Agreement is dependent on the consent of any third party (such as a vendor or Governmental
Authority), the parties shall cooperate in good faith and use reasonable best efforts to obtain such consent, and if such consent is
not obtained, to implement the applicable provisions of this Agreement to the full extent practicable. If any provision of this Agreement
cannot be implemented due to the failure of such third party to consent, the parties shall negotiate in good faith to implement the provision
in a mutually satisfactory manner. A party’s obligation to use its “reasonable best efforts” shall not require such
party to take any action to the extent it would reasonably be expected to (i) jeopardize, or result in the loss or waiver of, any
attorney-client or other legal privilege, (ii) contravene any applicable Law or fiduciary duty, (iii) result in the loss of
protection of any Intellectual Property or other proprietary information or (iv) incur any non-routine or unreasonable cost or expense.

 

Section 11.09.          Sponsored
Employees. The parties shall, and shall cause their respective Group members to, cooperate in good faith with each other and the applicable
Governmental Authorities with respect to the process of obtaining work authorization for each Sponsored Employee to work with Loyalty
Ventures or a Loyalty Ventures Group member, including but not limited to, petitioning the applicable Governmental Authorities for the
transfer of each Sponsored Employee’s (as well as any spouse or dependent thereof, as applicable) visa or work permit, or the grant
of a new visa or work permit, to any Loyalty Ventures Group member. Any costs or expenses incurred with the foregoing shall constitute
Loyalty Ventures Assumed Employee Liabilities. In the event that it is not legally permissible for a Sponsored Employee to continue work
with the Loyalty Ventures Group from and after the Distribution Date, the parties shall reasonably cooperate to provide for the services
of such Sponsored Employee to be made available exclusively to the Loyalty Ventures Group under an employee secondment or similar arrangement,
which any costs incurred by the ADS Group (including those relating to compensation and benefits in respect of such Sponsored Employee)
shall constitute Loyalty Ventures Assumed Employee Liabilities.

 

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Article 12

Non-Solicit and No-Hire

 

Section 12.01.          No-Hire/Non-Solicitation
of Employees.

 

(a)            During
the applicable Restricted Period, Loyalty Ventures shall not, and shall cause each member of the Loyalty Ventures Group not to, (i) solicit
or induce, or attempt to solicit or induce, any ADS Employee to terminate his or her employment or service relationship with any member
of the ADS Group or (ii) hire any ADS Employee who is or was employed by any member of the ADS Group at any time prior to the expiration
of the applicable Restricted Period (other than, for the avoidance of doubt, a Loyalty Ventures Employee); provided that (A) the
restrictions set forth in clause ‎(i) of this ‎Section 12.01(a) shall
not prohibit any member of the Loyalty Ventures Group from placing public advertisements or conducting any other form of general solicitation
that is not specifically targeted toward an ADS Employee (provided that nothing in this proviso shall permit the hiring of an ADS
Employee who responds to any such public advertisement or general solicitation which would otherwise be restricted by clause ‎(ii) of
this ‎Section 12.01(a), (B) the restrictions in clause ‎(ii) of
this ‎Section 12.01(a) shall not apply to hiring (1) any ADS Employee who
has ceased employment with the ADS Group for a period of at least (x) six months, in the case of such employees who are at the level
of Senior Vice President or above, and (y) three months, in the case of such employees who are at the level of Vice President or
(2) any ADS Employee whose employment was involuntarily terminated by a member of the ADS Group.

 

(b)            During
the applicable Restricted Period, ADS shall not, and shall cause each member of the ADS Group not to, (i) solicit or induce, or
attempt to solicit or induce, any Loyalty Ventures Employee to terminate his or her employment or service relationship with any member
of the Loyalty Ventures Group or (ii) hire any Loyalty Ventures Employee who is or was employed by any member of the Loyalty Ventures
Group at any time prior to the expiration of the applicable Restricted Period (other than, for the avoidance of doubt, any ADS Employee);
provided that (A) the restrictions set forth in clause ‎(i) of this
‎Section 12.01(b) shall not prohibit any member of the ADS Group from placing
public advertisements or conducting any other form of general solicitation that is not specifically targeted toward a Loyalty Ventures
Employee (provided that nothing in this proviso shall permit the hiring of a Loyalty Ventures Employee who responds to any such
public advertisement or general solicitation which would otherwise be restricted by clause ‎(ii) of
this ‎Section 12.01(b), (B) the restrictions in clause ‎(ii) of
this ‎Section 12.01(b) shall not apply to hiring (1) any Loyalty Ventures
Employee who has ceased employment with the Loyalty Ventures Group for a period of at least (x) six months, in the case of such
employees who are at the level of Senior Vice President or above, and (y) three months, in the case of such employees who are at
the level of Vice President or (2) Loyalty Ventures Employee whose employment was involuntarily terminated by a member of the Loyalty
Ventures Group.

 

(c)            The
Parties acknowledge and agree that one or more exceptions may be made to the provisions of this ‎Article 12
at the sole discretion, and with the written consent of, the General Counsel of ADS and Loyalty Ventures, as applicable. Any exception
made shall not be used as a precedent to compel or allow any further exception(s).

 

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Article 13

Miscellaneous

 

Section 13.01.     General.
The provisions of Article 6 of the Separation Agreement (other than ‎Section 6.06
as it relates to Third-Party Beneficiaries of the Separation Agreement) are hereby incorporated by reference into and deemed part of this
Agreement and shall apply, mutatis mutandis, as if fully set forth in this Agreement.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties
have caused this Agreement to be executed by their duly authorized representatives as of the date first above written.

 

	 	ALLIANCE DATA SYSTEMS CORPORATION
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	 	LOYALTY VENTURES INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Employee Matters Agreement]

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