ALLIANCE DATA SYSTEMS CORP
EXHIBIT 10.20
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<BR></FONT><FONT SIZE=2><B>Exhibit 10.20    <BR>    </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ma1088_amendment_no._1_to_alliance_da__ame03651"> </A>
<A NAME="toc_ma1088_2"> </A></FONT> <FONT SIZE=2><B>AMENDMENT NO. 1<BR>  TO<BR>  ALLIANCE DATA SYSTEMS CORPORATION<BR>  SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN    <BR>    </B></FONT></P>

<P><FONT SIZE=2>Alliance
Data Systems Corporation hereby adopts this Amendment No.&nbsp;1 to the Alliance Data Systems Corporation Supplemental Executive Retirement Plan (the "Plan"). The Amendment is effective
January&nbsp;1, 2003. </FONT></P>

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<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>Article&nbsp;II
is amended by adding new Section&nbsp;2.7 to read as follows, with the old Section&nbsp;2.7 renumbered to Section&nbsp;2.8 and the remaining Sections of
Article&nbsp;II renumbered accordingly: </FONT></DD></DL>
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<P><FONT SIZE=2><B>2.7. Code Section&nbsp;401(a)(4) Limit</B></FONT><FONT SIZE=2> means the limit on the amount of the Retirement Contribution a Participant may receive under the Qualified Plan
on account of the nondiscrimination requirements imposed under Code Section&nbsp;401(a)(4), as determined by the Benefits Administration Committee of the Qualified Plan in its discretion. </FONT></P>

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<DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>Section&nbsp;4.3
shall be amended in its entirety to read as follows: </FONT></DD></DL>
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<P><FONT SIZE=2><B>4.3. Restorative Contributions.</B></FONT><FONT SIZE=2> Whether or not a Participant elects to make Elective Contributions, the Employer shall allocate to each Participant an
amount equal to the amount of the Retirement Contribution, if any, that the Employer could not make to such Participant under the Qualified Plan because of either (i)&nbsp;the Code
Section&nbsp;401(a)(4) Limit, or (ii)&nbsp;the Code Section&nbsp;401(a)(17) Limit, reduced, if necessary, to take into account the $1&nbsp;million limit on Eligible Compensation. </FONT></P>

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<P><FONT SIZE=2>Adopted
this 7<SUP>th</SUP> day of April, 2003, but effective as provided above. </FONT></P>

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<TD COLSPAN=3><FONT SIZE=2><B>ALLIANCE DATA SYSTEMS CORPORATION</B></FONT></TD>
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&nbsp;</FONT></TD>
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Dwayne H. Tucker</FONT><HR NOSHADE></TD>
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By:</FONT></TD>
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<TD WIDTH="51%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>DWAYNE H. TUCKER</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
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<FONT SIZE=2><A HREF="#toc_ma1088_2">AMENDMENT NO. 1 TO ALLIANCE DATA SYSTEMS CORPORATION SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN</A></FONT><BR>

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