ALLIANCE DATA SYSTEMS CORP
EXHIBIT 10.21
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NAME="mc1088_exhibit_10.21"> </A>
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<BR></FONT><FONT SIZE=2><B>Exhibit 10.21    <BR>    </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="mc1088_amendment_no._2_to_alliance_da__ame03652"> </A>
<A NAME="toc_mc1088_2"> </A></FONT> <FONT SIZE=2><B>AMENDMENT NO. 2<BR>  TO<BR>  ALLIANCE DATA SYSTEMS CORPORATION<BR>  SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alliance Data Systems Corporation hereby adopts this Amendment No.&nbsp;2 to the Alliance Data Systems Corporation Supplemental Executive Retirement Plan (the
"Plan"). The Amendment is effective January&nbsp;1, 2004. </FONT></P>

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<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>Section&nbsp;3.1
is amended to read as follows: </FONT></DD></DL>
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<P><FONT SIZE=2><B>3.1. Eligibility.</B></FONT><FONT SIZE=2> All full time Associates who are on the United States payroll of an Employer are eligible to participate in the SERP provided
(1)&nbsp;the Associate's Regular Compensation is at least $150,000 on an annual basis, or the Associate's Eligible Compensation was at least $170,000 as of December&nbsp;31<SUP>st</SUP>, 2003,
and has not fallen below that amount in any subsequent year, and (2)&nbsp;the Associate is a participant in the Qualified Plan. </FONT></P>

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<DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>Section&nbsp;3.2
shall be amended in its entirety to read as follows: </FONT></DD></DL>
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<P><FONT SIZE=2><B>3.2 Enrollment Procedure.</B></FONT><FONT SIZE=2> Each Participant shall be eligible for a Restorative Contribution and a Section&nbsp;415 Contribution without application.
To be eligible for Elective Contributions, a Participant must file an Enrollment Form, a model of which is attached as Exhibit&nbsp;A, prior to the beginning of the calendar year for which the
enrollment is to be effective or, in the first calendar year in which an Associate becomes eligible to participate in the Plan, no later than thirty (30)&nbsp;days after the first day of such
eligibility and effective for services to be performed subsequent to the election. </FONT></P>

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<DT style='margin-bottom:-11pt;'><FONT SIZE=2>3.</FONT></DT><DD><FONT SIZE=2>Section&nbsp;11.4
shall be amended by substituting the State of Delaware for the State of Ohio therein. </FONT></DD></DL>

<P><FONT SIZE=2>Adopted
this 12<SUP>th</SUP> day of December, 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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/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_mc1088_1">Exhibit 10.21</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_mc1088_2">AMENDMENT NO. 2 TO ALLIANCE DATA SYSTEMS CORPORATION SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN</A></FONT><BR>

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