Exhibit 10.1

EXECUTION COPY

ALLIANCE DATA SYSTEMS CORPORATION

FIRST AMENDMENT TO

NOTE PURCHASE AGREEMENT

$500,000,000

Senior Notes

$250,000,000 6.00% Senior Notes, Series A, due May 16, 2009

$250,000,000 6.14% Senior Notes, Series B, due May 16, 2011

Dated as of October 22, 2007

To the Holders of the Senior Notes

of Alliance Data Systems Corporation

Named in the Attached Schedule I

Ladies and Gentlemen:

Reference is made to the Note Purchase Agreement dated as of May 1, 2006 (the
“Note Agreement”) between Alliance Data Systems Corporation, a Delaware
corporation (the “Company”), and you pursuant to which the Company issued
$500,000,000 aggregate principal amount of its Senior Notes, consisting of
$250,000,000 6.00% Senior Notes, Series A, due May 16, 2009 and $250,000,000
6.14% Senior Notes, Series B, due May 16, 2011 (collectively, the “Notes”). You
are referred to herein individually as a “Holder” and collectively as the
“Holders.” Capitalized terms used and not otherwise defined herein have the
meanings ascribed to them in the Note Agreement, as amended by this First
Amendment to Note Purchase Agreement (this “First Amendment”).

The Company has entered into an Agreement and Plan of Merger dated as of May 17,
2007 with Aladdin Holdco, Inc. and Aladdin Merger Sub, Inc. pursuant to which
Aladdin Merger Sub, Inc. will merge with and into the Company. After completion
of the Blackstone Merger, the Company will be an affiliate of The Blackstone
Group. The Company requests that the Holders consent to amendments to the Note
Agreement relating to the prepayment of the Notes in connection with the
Blackstone Merger.

In consideration of the premises and for good and valuable consideration, the
receipt and sufficiency of which are acknowledged, the Company and the Holders
agree as follows:

 

1. AMENDMENT OF NOTE AGREEMENT

1.1 Amendment of Section 8.2. The following Section 8.2(c) is added to the Note
Agreement to read in its entirety as follows:

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(c) Prepayment in Connection with the Blackstone Merger.

(i) Mandatory Prepayment. Having heretofore given notice to the holders of the
Control Event in respect of the pending Blackstone Merger, promptly after the
effective date of the First Amendment, and in any event within 5 days, the
Company shall give notice of prepayment of all Notes pursuant to Section 8.2(c),
which notice shall not be rescindable except in the event that the Company
provides a certificate from a Responsible Officer to each holder certifying that
efforts to effect the Blackstone Merger have ceased or been abandoned, with an
estimated prepayment date of November 14, 2007 or such other date as the
Blackstone Merger is scheduled to occur; provided such date is not later than
January 1, 2008 (the date on which prepayment is made, the “Blackstone
Prepayment Date”), and shall prepay all, but not less than all, of the Notes
held by each holder (in this case only, “holder” in respect of any Note
registered in the name of a nominee for a disclosed beneficial owner (any such
disclosed beneficial owner being identified on Schedule I to the First
Amendment) shall mean such beneficial owner) on the Blackstone Prepayment Date,
at 100% of the principal amount so prepaid, accrued and unpaid interest on the
Notes accrued to the date of prepayment and the Make-Whole Amount determined for
the prepayment date with respect to such principal amount (in aggregate, the
“Prepayment Amount”). Any prepayment made pursuant to this Section 8.2(c)(i)
shall be made in accordance with the provisions of Section 14.2, except that
payment by the Company to the holders will be made to The Bank of New York (or
such other bank as the Company shall so select with notice to the Holders (the
“Paying Agent”), which shall act as paying agent for the purposes of dispensing
payment to the holders in accordance with Schedule A to the Note Agreement. Upon
payment of the Prepayment Amount by the Company to the Paying Agent, the debt
represented by the Notes shall be satisfied and discharged and the provisions of
Sections 7, 8, 9 and 10 shall cease to have effect; provided that if the First
Amendment shall cease to be effective in accordance with Section 2 of the First
Amendment, the provisions of Section 7, 8, 9 and 10 shall automatically be
reinstated.

(ii) Notices. Two Business Days prior to the Blackstone Prepayment Date, the
Company will send to each holder notice under this Section 8.2(c) specifying the
proposed Blackstone Prepayment Date (which shall be a Business Day), the
aggregate principal amount of the Notes to be prepaid, the principal amount of
each Note held by such holder, and the interest to be paid on the proposed
Blackstone Prepayment Date with respect to such principal amount being prepaid,
and shall be accompanied by a certificate of a Senior Financial Officer as to
the estimated Make-Whole Amount due in connection with such prepayment
(calculated using the Reinvestment Yield on the date prior to such notice and
assuming that the Settlement Date in respect of the Notes will be the date of
the proposed Blackstone Prepayment Date set forth in such notice), setting forth
the details of such computation.

(iii) Deferral. The obligation of the Company to prepay Notes pursuant to
Section 8.2(c)(i) is subject to and conditioned upon the occurrence of the
Blackstone Merger and shall be void and of no force and effect in the event the
Blackstone Merger does not occur. In the event that the Blackstone Merger does
not occur on or prior to the proposed Blackstone Prepayment Date set forth in a
notice, the prepayment shall be

 

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deferred until and shall be made on the date on which the Blackstone Merger
occurs (and, so long as a new notice is not required pursuant to the terms of
the immediately following sentence, the Make-Whole Amount need not be
recalculated and shall be the same amount as set forth in the most recent notice
provided to holders of the Notes in accordance with Section 8.2(c)(ii)).
Notwithstanding the foregoing, in the event that the prepayment has not been
made within 5 Business Days after such proposed Blackstone Prepayment Date by
virtue of the deferral provided for in this Section 8.2(c)(iii), two Business
Days prior to any new proposed Blackstone Prepayment Date, the Company shall
deliver to each holder of Notes a new notice and certificate of a Senior
Financial Officer specifying the calculation of such Make-Whole Amount
(calculated as provided in Section 8.2(c)(ii)) and the interest to be paid as of
such new proposed Blackstone Prepayment Date. The Company may continue to defer
the Blackstone Prepayment Date as provided in this Section 8.2(c)(iii) for so
long as the First Amendment remains effective.

(iv) Deemed Change in Control Offer. A prepayment notice by the Company under
this Section 8.2(c) shall be deemed to satisfy the obligations of the Company
under Section 8.3 and rescind any previous offer made by the Company under
Section 8.3 with respect to the Blackstone Merger.

1.2 Defined Terms. The following new definitions are added to Schedule B, in the
appropriate alphabetical order:

“Blackstone Merger” means the merger of Aladdin Merger Sub, Inc. with and into
the Company with the Company continuing as the surviving corporation pursuant to
the terms of that certain Agreement and Plan of Merger dated as of May 17, 2007
by and among Aladdin Holdco, Inc., Aladdin Merger Sub, Inc. and the Company.

“Blackstone Prepayment Date” is defined in Section 8.2(c).

“First Amendment” means the First Amendment to Note Purchase Agreement, dated as
of October 22, 2007 among the Company and the holders of the Notes.

 

2. EFFECTIVE DATE

This First Amendment shall be deemed to be effective as of October 22, 2007 upon
Execution by each Holder of Notes outstanding and receipt by the Holders of a
counterpart of this First Amendment duly executed by the Company.
Notwithstanding the foregoing, the First Amendment shall cease to be effective
upon the occurrence of one or more of the following events:

2.1 Blackstone Merger. The Company shall have provided evidence to the Holders
that the Blackstone Merger has been abandoned or the Blackstone Merger has not
been consummated prior to January 1, 2008.

2.2 Blackstone Tender Offer. The Offer to Purchase and Consent Solicitation
dated as of October 15, 2007 has not been rescinded or revoked prior to
October 26, 2007 provided that each Holder of Notes shall have delivered a
signed counterpart of this First Amendment prior to October 23, 2007.

 

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2.3 Expenses. The Company has failed to pay all fees and expenses of Foley &
Lardner LLP, special counsel to the Holders, within 10 days after receipt of an
invoice.

 

3. MISCELLANEOUS

3.1 Representations of Holders. Each Holder represents and warrants to the
Company that it or its nominee is the registered holder of the aggregate
principal amount of Notes set forth opposite such Holder’s name on Schedule I to
this First Amendment, and that it has full power and authority to execute and
deliver this First Amendment with respect to the Notes set forth opposite such
Holder’s name on Schedule I to this First Amendment. Each Holder hereby confirms
the accuracy of the payment instructions set forth in Schedule A to the Note
Agreement unless such Holder shall have otherwise advised the Company in writing
after the date of this First Amendment and not less than two Business Days prior
to the Blackstone Prepayment Date.

3.2 Ratification. Except as amended hereby, the Note Agreement, including the
representations and warranties contained therein, shall remain in full force and
effect and is ratified, approved and confirmed in all respects as of the date
hereof.

3.3 Reference to and Effect on the Note Amendment. Upon the final effectiveness
of this First Amendment, each reference in the Note Agreement and in other
documents describing or referencing the Note Agreement to the “Agreement,” “Note
Agreement,” “hereunder,” “hereof,” “herein,” or words of like import referring
to the Note Agreement, shall mean and be a reference to the Note Agreement, as
amended hereby.

3.4 Binding Effect. This First Amendment shall be binding upon and inure to the
benefit of the respective successors and assigns of the parties hereto.

3.5 Governing Law. This First Amendment shall be governed by and construed in
accordance with New York law.

3.6 Counterparts; Facsimile. This First Amendment may be executed in any number
of counterparts, each executed counterpart constituting an original, but
altogether only one instrument. Further, this First Amendment may be executed by
facsimile signatures and such facsimile signatures shall be deemed to be the
original signatures of the parties.

 

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IN WITNESS WHEREOF, the Company and the Holders have caused this First Amendment
to be executed and delivered by their respective officer or officers thereunto
duly authorized.

 

ALLIANCE DATA SYSTEMS CORPORATION By:  

/s/ Michael D. Kubic

Name:   Michael D. Kubic Title:  

Senior Vice President, Controller and

Chief Accounting Officer

 

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[Signature page to First Amendment to Note Purchase Agreement]

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AIG ANNUITY INSURANCE COMPANY THE VARIABLE ANNUITY LIFE INSURANCE COMPANY By:  
AIG Global Investment Corp., investment adviser By:  

/s/ Ted Etlinger

Name:   Ted Etlinger Title:   Vice President

 

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[Signature page to First Amendment to Note Purchase Agreement]

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METROPOLITAN LIFE INSURANCE COMPANY

            /s/ Frank Monfalcone            

Name:   Frank Monfalcone Title:   Director METLIFE INSURANCE COMPANY OF
CONNECTICUT

            /s/ Frank Monfalcone            

Name:   Frank Monfalcone Title:   Director

 

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[Signature page to First Amendment to Note Purchase Agreement]

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AMERICAN STATES LIFE INSURANCE
COMPANY, an Indiana corporation By:   Principal Global Investors, LLC  

a Delaware limited liability company,

its authorized signatory

  By:  

/s/ Joellen J. Watts

  Its:  

Joellen J. Watts,

Counsel

  By:  

/s/ Alan P. Kress

  Its:  

Alan P. Kress,

Counsel

PRINCIPAL LIFE INSURANCE COMPANY,
ON BEHALF OF ONE OR MORE SEPARATE ACCOUNTS By:   Principal Global Investors, LLC
 

a Delaware limited liability company,

its authorized signatory

  By:  

/s/ Joellen J. Watts

  Its:  

Joellen J. Watts,

Counsel

  By:  

/s/ Alan P. Kress

  Its:  

Alan P. Kress,

Counsel

PRINCIPAL LIFE INSURANCE COMPANY By:   Principal Global Investors, LLC  

a Delaware limited liability company,

its authorized signatory

  By:  

/s/ Joellen J. Watts

  Its:  

Joellen J. Watts,

Counsel

  By:  

/s/ Alan P. Kress

  Its:  

Alan P. Kress,

Counsel

 

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[Signature page to First Amendment to Note Purchase Agreement]

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SYMETRA LIFE INSURANCE COMPANY,

a Washington corporation

By:   Principal Global Investors, LLC  

a Delaware limited liability company,

its authorized signatory

  By:  

/s/ Christopher J. Henderson

  Its:  

Christopher J. Henderson,

Vice President and Associate General Counsel

  By:  

/s/ Colin Pennycooke

  Its:  

Colin Pennycooke,

Counsel

VANTISLIFE INSURANCE COMPANY,

a Connecticut company

By:   Principal Global Investors, LLC  

a Delaware limited liability company,

its authorized signatory

  By:  

/s/ Christopher J. Henderson

  Its:  

Christopher J. Henderson,

Vice President and Associate General Counsel

  By:  

/s/ Colin Pennycooke

  Its:  

Colin Pennycooke,

Counsel

 

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[Signature page to First Amendment to Note Purchase Agreement]

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ALLSTATE LIFE INSURANCE COMPANY By:  

/s/ Robert B. Bodett

Name:   Robert B. Bodett By:  

/s/ Breege A. Farrell

Name:   Breege A. Farrell Authorized Signatories ALLSTATE INSURANCE COMPANY By:
 

/s/ Robert B. Bodett

Name:   Robert B. Bodett By:  

/s/ Breege A. Farrell

Name:   Breege A. Farrell Authorized Signatories

 

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[Signature page to First Amendment to Note Purchase Agreement]

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THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

 

By:  

/s/ Howard Stern

Name:   Howard Stern Title:   Its Authorized Representative

 

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[Signature page to First Amendment to Note Purchase Agreement]

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TRANSAMERICA LIFE INSURANCE COMPANY By:  

/s/ Mark E. Dunn

Name:   Mark E. Dunn Title:   Vice President

 

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[Signature page to First Amendment to Note Purchase Agreement]

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HARTFORD LIFE INSURANCE COMPANY By:   Hartford Investment Management Company
Its:   Agent and Attorney-in-Fact By:  

/s/ Eva Konopka

Name:   Eva Konopka Title:   Senior Vice President PHYSICIANS LIFE INSURANCE
COMPANY By:   Hartford Investment Management Company Its:   Investment Advisor
By:  

/s/ Eva Konopka

Name:   Eva Konopka Title:   Senior Vice President

 

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[Signature page to First Amendment to Note Purchase Agreement]

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NEW YORK LIFE INSURANCE COMPANY     By:  

/s/ R. Edward Ferguson

  Name:   R. Edward Ferguson   Title:   Vice President   NEW YORK LIFE INSURANCE
AND ANNUITY CORPORATION   By:  

New York Life Investment Management LLC,

its Investment Manager

  By:  

/s/ R. Edward Ferguson

  Name:   R. Edward Ferguson   Title:   Managing Director  

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

INSTITUTIONALLY OWNED LIFE INSURANCE SEPARATE ACCOUNT

  By:   New York Life Investment Management LLC, its Investment Manager   By:  

/s/ R. Edward Ferguson

  Name:   R. Edward Ferguson   Title:   Managing Director  

 

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[Signature page to First Amendment to Note Purchase Agreement]

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NATIONWIDE LIFE INSURANCE COMPANY NATIONWIDE MULTIPLE MATURITY SEPARATE ACCOUNT

    /s/ Thomas S. Leggett            

Thomas S. Leggett Authorized Signatory

 

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[Signature page to First Amendment to Note Purchase Agreement]

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THE PRUDENTIAL INSURANCE COMPANY OF AMERICA By:  

/s/ Brian Lemons

  Vice President PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY By:  

Prudential Investment Management, Inc.,

as investment manager

  By:  

/s/ Brian Lemons

    Vice President FARMERS NEW WORLD LIFE INSURANCE COMPANY By:  

Prudential Private Placement Investors,

L.P. (as Investment Advisor)

By:   Prudential Private Placement Investors, Inc.   (as its General Partner)  
By:  

/s/ Brian Lemons

    Vice President

 

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[Signature page to First Amendment to Note Purchase Agreement]

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THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA     By:  

/s/ Ellen I. Whittaker

  Name:   Ellen I Whittaker   Title:   Director, Fixed Income Investments   THE
GUARDIAN INSURANCE & ANNUITY COMPANY, INC.   By:  

/s/ Ellen I Whittaker

  Name:   Ellen I Whittaker   Title:   Director, Fixed Income Investments  

 

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[Signature page to First Amendment to Note Purchase Agreement]

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TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA

 

By:  

/s/ Brian Noecke

Name:   Brian Noecke Title:   Director

 

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[Signature page to First Amendment to Note Purchase Agreement]

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THRIVENT FINANCIAL FOR LUTHERANS

 

By:  

/s/ Glen J. Vanic

Name:   Glen J. Vanic Title:   Sr. Managing Director

 

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[Signature page to First Amendment to Note Purchase Agreement]

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ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA

By:       Allianz of America, Inc. as the authorized signatory and investment
manager

 

By:  

/s/ Gary Brown

Name:   Gary Brown Title:   Assistant Treasurer

 

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[Signature page to First Amendment to Note Purchase Agreement]

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PACIFIC LIFE INSURANCE COMPANY By:  

/s/ Diane W. Dales

Name:   Diane W. Dales Title:   Assistant Vice President By:  

/s/ Cathy Schwartz

Name:   Cathy Schwartz Title:   Assistant Secretary

 

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[Signature page to First Amendment to Note Purchase Agreement]

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Fidelity Life Association By:   Advantus Capital Management, Inc. By:  

/s/ Theodore R. Hoxmeier

Name:   Theodore R. Hoxmeier Title:   Vice President MTL Insurance Company By:  
Advantus Capital Management, Inc. By:  

/s/ Theodore R. Hoxmeier

Name:   Theodore R. Hoxmeier Title:   Vice President Great Western Insurance
Company By:   Advantus Capital Management, Inc. By:  

/s/ Theodore R. Hoxmeier

Name:   Theodore R. Hoxmeier Title:   Vice President The Catholic Aid
Association By:   Advantus Capital Management, Inc. By:  

/s/ Theodore R. Hoxmeier

Name:   Theodore R. Hoxmeier Title:   Vice President American Fidelity Assurance
Company By:   Advantus Capital Management, Inc. By:  

/s/ Theodore R. Hoxmeier

Name:   Theodore R. Hoxmeier Title:   Vice President American Republic Insurance
Company By:   Advantus Capital Management, Inc. By:  

/s/ Theodore R. Hoxmeier

Name:   Theodore R. Hoxmeier Title:   Vice President

 

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[Signature page to First Amendment to Note Purchase Agreement]

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Trustmark Insurance Company By:   Advantus Capital Management, Inc. By:  

/s/ Joseph Gogola

Name:   Joseph Gogola Title:   Vice President GuideOne Property & Casualty
Insurance Company By:   Advantus Capital Management, Inc. By:  

/s/ Joseph Gogola

Name:   Joseph Gogola Title:   Vice President Security National Life Insurance
Company By:   Advantus Capital Management, Inc. By:  

/s/ Joseph Gogola

Name:   Joseph Gogola Title:   Vice President Fort Dearborn Life Insurance
Company By:   Advantus Capital Management, Inc. By:  

/s/ Joseph Gogola

Name:   Joseph Gogola Title:   Vice President Blue Cross and Blue Shield of
Florida, Inc. By:   Advantus Capital Management, Inc. By:  

/s/ Joseph Gogola

Name:   Joseph Gogola Title:   Vice President

 

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[Signature page to First Amendment to Note Purchase Agreement]

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CUNA MUTUAL LIFE INSURANCE COMPANY     By:   MEMBERS Capital Advisors, Inc.,
acting as Investment Advisor:   By  

/s/ James E. McDonald, Jr.

  Name:   James E. McDonald, Jr.   Title:   Director, Private Placements   CUNA
MUTUAL INSURANCE SOCIETY   By:   MEMBERS Capital Advisors, Inc., acting as
Investment Advisor:   By  

/s/ James E. McDonald, Jr.

  Name:   James E. McDonald, Jr.   Title:   Director, Private Placements   CUMIS
INSURANCE SOCIETY, INC.   By:   MEMBERS Capital Advisors, Inc., acting as
Investment Advisor:   By  

/s/ James E. McDonald, Jr.

  Name:   James E. McDonald, Jr.   Title:   Director, Private Placements  
MEMBERS LIFE INSURANCE COMPANY   By:   MEMBERS Capital Advisors, Inc., acting as
Investment Advisor:   By  

/s/ James E. McDonald, Jr.

  Name:   James E. McDonald, Jr.   Title:   Director, Private Placements  

 

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[Signature page to First Amendment to Note Purchase Agreement]

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American Equity Investment Life Insurance Co.

 

By:  

/s/ Rachel Stauffer

Name:   Rachel Stauffer Title:   Vice President

 

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[Signature page to First Amendment to Note Purchase Agreement]

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American Investors Life Insurance Company

 

By:  

Aviva Capital Management, Inc.,

its authorized attorney-in-fact

  By:  

/s/ Roger D. Tors

  Name:   Roger D. Tors   Title:   VP Private Placements

 

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[Signature page to First Amendment to Note Purchase Agreement]

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AMERICAN FAMILY LIFE INSURANCE COMPANY

 

By:  

/s/ Phillip Hannifan

Name:   Phillip Hannifan Title:   Investment Director

 

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[Signature page to First Amendment to Note Purchase Agreement]

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OHIO NATIONAL LIFE ASSURANCE CORPORATION

THE OHIO NATIONAL LIFE INSURANCE COMPANY

 

By:  

/s/ Jed R. Martin

Name:   Jed R. Martin Title:   Vice President, Private Placements

 

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[Signature page to First Amendment to Note Purchase Agreement]