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Exhibit 10.1
First Amendment to
Credit Agreement
 
This First Amendment to Credit Agreement (this “Amendment”) is dated as of
September 20, 2011 by and among Alliance Data Systems Corporation (the
“Borrower”), the Guarantors party hereto, the Banks party hereto, SunTrust Bank
and Bank of Montreal, as Co-Administrative Agents, and Bank of Montreal, as
Administrative Agent and Letter of Credit Issuer.
 
w i t n e s s e t h:
 
Whereas, the Borrower, the Guarantors, the Banks, and the Administrative Agent
have heretofore executed and delivered a Credit Agreement dated as of May 24,
2011 (the “Credit Agreement”; terms defined therein being used herein as so
defined unless otherwise defined herein); and
 
Whereas, the Borrower, the Guarantors, the Banks and the Administrative Agent
desire to amend certain provisions of the Credit Agreement as set forth herein;
 
Now, Therefore, for good and valuable consideration the receipt of which is
hereby acknowledged, the Borrower, the Guarantors, the Banks and the
Administrative Agent hereby agree as follows:

Article I
Amendments
 
1.1.Section 1.1 of the Credit Agreement is hereby amended by inserting the new
defined terms “Incremental Amendment” and “Incremental Term Loan” in proper
alphabetical order as follows:
 
“Incremental Amendment” has the meaning set forth in Section 2.16(c).
 
“Incremental Term Loan” has the meaning set forth in Section 2.16(a).
 
1.2Section 2.1(a) of the Credit Agreement is hereby amended by deleting the
penultimate sentence thereof and inserting in its place the following:  
 
Revolving Loans shall either be Base Rate Loans, Euro-Dollar Loans or
Euro-Canadian Dollar Loans, or, to the extent all Banks with a Revolving Credit
Commitment are able to fund such Revolving Loans, Canadian Base Rate Loans.
 
1.3Section 2.16 of the Credit Agreement is hereby amended in its entirety and as
so amended shall read as follows:

 
 

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Section 2.16. Increase in Commitments. (a) The Borrower, on behalf of the
Borrower and Guarantors, may, on any Business Day after the date hereof,
increase the aggregate amount of the Revolving Credit Commitments and/or
outstanding Term Loans and/or create one or more additional tranches of term
loans (each additional tranche of term loans, an “Incremental Term Loan”);
provided, however, that (i) any Commitment Amount Increase or Incremental Term
Loan that results in the sum of the aggregate Revolving Credit Commitments plus
the aggregate original principal amount of the Term Loans and Incremental Term
Loans to be in excess of $2,500,000,000 will require the approval of the
Required Banks, (ii) any Commitment Amount Increase or issuance of Incremental
Term Loans shall be in an amount not less than $50,000,000, (iii) no Default
shall have occurred and be continuing at the time of the request or  the
effective date of the Commitment Amount Increase or issuance of Incremental Term
Loans or will result therefrom, (iv) all representations and warranties
contained in Article 4 hereof shall be true and correct in all material respects
at the time of such request and on the effective date of such Commitment Amount
Increase or issuance of Incremental Term Loans (other than representations and
warranties that relate to a specific date, which shall be true and correct in
all material respects as of such date), (v) prior to approaching an additional
Bank, the Borrower shall have offered to the existing Banks the opportunity to
increase their respective Revolving Credit Commitments and/or outstanding Term
Loans, as applicable and (vi) the Administrative Agent and, in the case of an
increase in the Revolving Credit Commitment, each Letter of Credit Issuer and
the Swing Line Lender, shall have provided their written consent (which consents
shall not be unreasonably withheld).  
 
(b)In order to request an increase in the Revolving Credit Commitments and/or
outstanding Term Loans, the Borrower shall deliver a Commitment Amount Increase
Request to the Administrative Agent and the Co-Administrative Agents at least
five (5) Business Days (or such shorter period of time agreed by the
Administrative Agent) prior to the desired effective date of such increase (the
“Commitment Amount Increase”) identifying an additional Bank(s) (or additional
Revolving Credit Commitments and/or Term Loans for existing Bank(s)) and the
amount of its Revolving Credit Commitment and/or Term Loans (or additional
amount of its Revolving Credit Commitment(s) and/or Term Loans).  The Borrower,
the Administrative Agent, and each Bank and/or new Bank advancing an additional
Term Loan shall agree in the relevant Commitment Amount Increase Request as to
the amortization schedule of such additional Term Loan; provided that (i) such
additional Term Loans shall have a weighted average life to maturity no lower
than the remaining weighted average life to maturity of the outstanding Term
Loans and (ii) no such amortization schedule shall have the effect of reducing
the amortization payments scheduled to be made to the Banks that are not
increasing their Term Loans.  Upon the effectiveness thereof, the new Bank(s)
(or, if applicable, existing Bank(s)) (i) shall advance Loans in an amount
sufficient such that after giving effect

 
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to its Loans each Bank shall have outstanding its respective Percentage of all
Loans of the relevant Credit and (ii) in the case of the Revolving Credit, shall
acquire its Revolver Percentage of all participations in Letter of Credit
Outstandings and Swing Loans.  It shall be a condition to such effectiveness
that (i) no Euro-Dollar Loans or Euro-Canadian Dollar Loans be outstanding on
the date of such effectiveness and (ii) if such Commitment Amount Increase is to
the Revolving Credit Commitments, the Borrower shall not have terminated any
portion of the Revolving Credit Commitments pursuant to Section 2.8 hereof.  The
Borrower and each Guarantor agree to deliver to the Administrative Agent such
corporate due diligence documents as the Administrative Agent shall reasonably
request in connection with any Commitment Amount Increase.  Promptly upon the
effectiveness of any Commitment Amount Increase, the Borrower, if requested by
any new Bank, shall execute and deliver new Notes to each requesting Bank.  The
effective date of any Commitment Amount Increase shall be agreed upon by the
Borrower and the Administrative Agent.
 
(c)(A) The Incremental Term Loans (i) may be unsecured or may be secured by
liens on any or all assets of the Borrower and the Guarantors, as determined by
the Borrower and the lenders of the Incremental Term Loans (and if so secured,
the Term Loans and Revolving Loans shall be secured equally and ratably by liens
on the same assets; provided that, to the extent the Incremental Term Loans (and
any replacement financing) are paid and satisfied in full, or any liens granted
to secure the Incremental Term Loans (and any replacement financing) are
released, the ratable liens granted to secure the Term Loans and Revolving Loans
shall, so long as no Default or Event of Default exists, upon the Borrower’s
written request, also be released), (ii) shall rank pari passu in right of
payment and of security with the Term Loans and Revolving Loans and shall have
the same guarantors as the Term Loans and the Revolving Loans, (iii) shall not
mature earlier than the Maturity Date, (iv) shall not have a lower weighted
average life to maturity than the remaining weighted average life to maturity of
the outstanding Term Loans, (v) shall have an amortization schedule (subject to
clause (iv)), provisions relating to optional and, to the extent applied pro
rata to the Term Loans and the Incremental Term Loans, mandatory prepayments
(including mandatory repurchase offers), and a Base Rate Margin, a Eurodollar
Margin, rate floors, fees, premiums, funding discounts and other pricing terms
(including a “MFN clause” allowing for repricing upon incurrence of subsequent
Incremental Term Loans)

 
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for the Incremental Term Loans as determined by the Borrower and the lenders of
the Incremental Term Loans, and (vi) may not otherwise have terms and conditions
different from those of the Term Loans and Revolving Loans.  (B) Commitments in
respect of Incremental Term Loans shall become Commitments under this Agreement
pursuant to an amendment (an “Incremental Amendment”) to this Agreement and, as
appropriate, the other Credit Documents, executed by the Borrower, each
Guarantor, each Bank agreeing to provide such Commitment, if any, each new Bank,
if any, the Co-Administrative Agents and the Administrative Agent.  The
Incremental Amendment shall not, except as specified in the preceding sentence,
require the consent of any Bank, and may effect such amendments to this
Agreement and the other Credit Documents as may be necessary, in the reasonable
opinion of the Co-Administrative Agents, the Administrative Agent and the
Borrower, to effect the provisions of this Section.  The Banks hereby authorize
the Co-Administrative Agents and the Administrative Agent to execute such other
documents, instruments and agreements, including security agreements, as may be
necessary in the reasonable opinion of either Co-Administrative Agent to give
effect to the Incremental Amendment.  The effectiveness of any Incremental
Amendment shall be subject to the satisfaction on the date thereof of such
conditions as the parties thereto shall agree.  The Borrower will use the
proceeds of each Incremental Term Loan for any purpose permitted by Section 5.8.
 
(d)The Borrower agrees to pay any reasonable out-of-pocket expenses of the
Administrative Agent relating to any Commitment Amount Increase and any
Incremental Amendment.  Notwithstanding anything herein to the contrary, no Bank
shall have any obligation to increase its Revolving Credit Commitment or advance
additional Term Loans or Incremental Term Loans and no Bank’s Revolving Credit
Commitment shall be increased without its consent thereto, and each Bank may at
its option, unconditionally and without cause, decline to increase its Revolving
Credit Commitment or advance additional Term Loans or Incremental Term Loans.

 
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Article II
Conditions Precedent
 
2.1Article I of this Amendment shall become effective upon satisfaction of the
following conditions precedents:
 
(a)the Administrative Agent shall have received counterparts hereof executed by
the Borrower, the Guarantors and the Required Banks;
 
(b)the Administrative Agent shall have received a Secretary or Assistant
Secretary Certificate indicating the Borrower and Guarantors’ authorized signers
of this Amendment and the specimen signatures of such signers; and
 
(c)the Borrower shall have paid the fees as agreed between the Borrower and the
Co-Lead Arrangers in the Fee Letter dated September 12, 2011.
 
Article III
Miscellaneous
 
3.1.To induce the Administrative Agent, Co-Administrative Agents and the Banks
to enter into this Amendment, the Borrower represents and warrants to the
Administrative Agent, Co-Administrative Agents and the Banks that:  (a) the
representations and warranties contained in the Credit Agreement are true and
correct in all material respects as of the date hereof with the same effect as
though made on the date hereof (it being understood and agreed that any
representation or warranty which by its terms is made as of a specified date
shall be required to be true and correct in all material respects only as of
such specified date); (b) no Default or Event of Default exists; (c) this
Amendment has been duly authorized by all necessary corporate proceedings and
duly executed and delivered by the Borrower and each other Credit Party and the
Credit Agreement, as amended by this Amendment, is the legal, valid and binding
obligation of the Borrower and each other Credit Party, enforceable against the
Borrower and each other Credit Party in accordance with its terms; and (d) no
consent, approval, authorization, order, registration or qualification with any
Governmental Authority is required for, and the absence of which would
materially adversely affect, the legal and valid execution and delivery or
performance by the Borrower or any other Credit Party of this Amendment or the
performance by the Borrower or any other Credit Party of the Credit Agreement,
as amended by this Amendment.
 
3.2.This Amendment may be executed in any number of counterparts and by the
different parties on separate counterparts and each such counterpart shall be
deemed to be an original, but all such counterparts shall together constitute
but one and the same Amendment.

 
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3.3.Except as specifically provided above, the Credit Agreement shall remain in
full force and effect and is hereby ratified and confirmed in all respects.  The
execution, delivery, and effectiveness of this Amendment shall not, except as
expressly provided herein, operate as a waiver of any right, power, or remedy of
the Administrative Agent, the Co-Administrative Agents or any Bank under the
Credit Agreement or any Note, nor constitute a waiver or modification of any
provision of any of the Credit Agreement or any Note.
 
3.4.This Amendment and the rights and obligations of the parties hereunder shall
be construed in accordance with and be governed by the laws of the State of New
York.
 
[Signature Pages follow]

 
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In Witness Whereof, the parties hereto have caused this Amendment to be executed
by their respective officers thereunto duly authorized as of the day and year
first above written.
 
 
Alliance Data Systems Corporation, as Borrower

 
 
By /s/ Charles L. Horn

 
Name  Charles L. Horn

 
Title  Executive Vice President and CFO

 
 
ADS Alliance Data Systems, Inc., as a Guarantor

 
 
By /s/ Charles L. Horn

 
Name  Charles L. Horn

 
Title  Executive Vice President and CFO

 
 
 
Epsilon Marketing Services, LLC, as a Guarantor

 
 
By /s/ Charles L. Horn

 
Name  Charles L. Horn

 
Title  Vice President

 
 
 
Epsilon Data Management, LLC, as a Guarantor

 
 
By /s/ Charles L. Horn

 
Name  Charles L. Horn

 
Title  Vice President

 
 
 
Alliance Data Foreign Holdings, Inc., as a Guarantor

 
 
By /s/ Charles L. Horn

 
Name  Charles L. Horn

 
Title  Vice President

 
 
 
ADS Foreign Holdings, Inc., as a Guarantor

 
 
By /s/ Charles L. Horn

 
Name  Charles L. Horn

 
Title  Vice President

 

 
[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-1

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Comenity LLC, as a Guarantor

 
 
By/s/ Leigh Ann K. Epperson

 
Name  Leigh Ann K. Epperson

 
Title  Vice President

 
 
Alliance Data FHC, Inc., as a Guarantor

 
 
By /s/ Charles L. Horn

 
Name  Charles L. Horn

 
Title  Vice President

 
 

[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-2

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Bank of Montreal, as Administrative Agent and Co-Administrative Agent

 
 
By /s/ Mark W. Piekos

 
Name  Mark W. Piekos

 
Title  Managing Director

[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-3

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Bank of Montreal, individually as a Bank, as Letter of Credit Issuer and as
Swing Lender

 
 
By /s/ Mark W. Piekos

 
Name  Mark W. Piekos

 
Title  Managing Director

 

 

[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-4

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SunTrust Bank, individually as a Bank and as Co-Administrative Agent

 
 
By /s/ David A. Bennett

 
Name  David A. Bennett

 
Title  Vice President

 

[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-5

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Bank of America, N.A.

 
 
By /s/ Allison W. Connally

 
Name  Allison W. Connally

 
Title  Senior Vice President

 

 
[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-6

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Barclays Bank PLC

 
 
By /s/ Alicia Borys

 
Name  Alicia Borys

 
Title  Vice President

 

[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-7

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JPMorgan Chase Bank, N.A.

 
 
By /s/ Tina Ruyter

 
Name  Tina Ruyter

 
Title  Executive Director

 

 
[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-8

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Royal Bank of Canada

 
 
By /s/ Scott Umbs

 
Name  Scott Umbs

 
Title  Authorized Signatory

 

 
[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-9

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Wells Fargo Bank, N.A.

 
 
By /s/ Marguerite Burtzlaff

 
Name  Marguerite Burtzlaff

 
Title  Director

 

 
[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-10

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Credit Suisse AG, Cayman Islands Branch

 
 
By /s/ Ari Bruger

 
Name  Ari Bruger

 
Title  Vice President

 
 
By /s/ Rahul Parmar

 
Name  Rahul Parmar

 
Title  Associate

 

 
[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-11

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The Bank of Nova Scotia

 
 
By /s/ David Schwartzbard

 
Name  David Schwartzbard

 
Title  Director

 

 
[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-12

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Scotiabanc Inc.

 
 
By /s/ J.F. Todd

 
Name  J.F. Todd

 
Title  Managing Director

 

 
[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-13

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Sumitomo Mitsui Banking Corporation

 
 
By /s/ Shuji Yabe

 
Name  Shuji Yabe

 
Title  General Manager

 

 
[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-14

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CIBC, Inc.

 
 
By /s/ Eoin Roche

 
Name  Eoin Roche

 
Title  Executive Director

 
 
By /s/ Dominic Sorresso

 
Name  Dominic Sorresso

 
Title  Executive Director

 

 
[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-15

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Mizuho Corporate Bank, Ltd.

 
 
By /s/ Bertram H. Tang

 
Name  Bertram H. Tang

 
Title  Authorized Signatory

 

[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-16

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The Royal Bank of Scotland plc

 
 
By /s/ Karen Beatty

 
Name  Karen Beatty

 
Title  Vice President

 

[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-17

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The Huntington National Bank

 
 
By /s/ Amanda M. Sigg

 
Name  Amanda M. Sigg

 
Title  Vice President

 

 
[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-18

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KeyBank National Association

 
 
By /s/ Matthew A. Lambes

 
Name  Matthew A. Lambes

 
Title  Vice President

 

[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-19

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The Northern Trust Company

 
 
By /s/ Morgan A. Lyons

 
Name  Morgan A. Lyons

 
Title  Senior Vice President

 

[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-20

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Union Bank, N.A.

 
 
By /s/ Katie Cunningham

 
Name  Katie Cunningham

 
Title  Assistant Vice President

 

[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-21

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PNC Bank National Association

 
 
By /s/ Thomas E. Redmond

 
Name  Thomas E. Redmond

 
Title  Senior Vice President

 

[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-22

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Raymond James Bank FSB

 
 
By /s/ Scott G. Axelrod

 
Name  Scott G. Axelrod

 
Title  Vice President

 

[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-23

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Manufacturers Bank

 
 
By /s/ Sean Walker

 
Name  Sean Walker

 
Title  Vice President

 
[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-24

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Modern Bank, N.A.

 
 
By /s/ Vera C. McVey

 
Name  Vera C. McVey

 
Title  Chief Credit Officer and

 
          Senior Vice President

 

[First Amendment to Alliance Data Systems Corporation Credit Agreement]
 
S-25

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Macquarie Bank Limited

 
 
By /s/ Mark Wong

 
Name  Mark Wong

 
Title  Executive Director

[First Amendment to Alliance Data Systems Corporation Credit Agreement]
S-26
 
 

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