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Exhibit 10.8

(a) Prior to the Facility Increase Expiration
Date, $275,000,000, and (b) on and after the
Facility Increase Expiration
Date, $225,000,000; provided, however,
that the sum of the Commitments of
the Investors and the Lender shall not
exceed the Facility Amount.

March 31, 1999

AMENDED, RESTATED AND SUBSTITUTED
VFCC STRUCTURED NOTE

        THIS AMENDED, RESTATED AND SUBSTITUTED VFCC STRUCTURED NOTE (THE "VFCC
STRUCTURED NOTE") HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT") OR UNDER ANY STATE SECURITIES LAWS AND THE
BORROWER (AS DEFINED BELOW) HAS NOT BEEN REGISTERED UNDER THE INVESTMENT COMPANY
ACT OF 1940, AS AMENDED (THE "INVESTMENT COMPANY ACT"). THIS VFCC STRUCTURED
NOTE MAY NOT BE SOLD, OFFERED FOR SALE OR OTHERWISE TRANSFERRED WITHOUT
REGISTRATION UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS
EXCEPT IN A TRANSACTION THAT IS EXEMPTED UNDER THE SECURITIES ACT AND APPLICABLE
STATE SECURITIES LAWS.

        THIS VFCC STRUCTURED NOTE IS NOT PERMITTED TO BE TRANSFERRED, ASSIGNED,
EXCHANGED OR OTHERWISE PLEDGED OR CONVEYED EXCEPT IN COMPLIANCE WITH THE TERMS
OF THE LOAN FUNDING AND SERVICING AGREEMENT REFERRED TO HEREIN.

        IN NO EVENT SHALL THE BORROWER (DEFINED BELOW) BE ENTITLED TO HAVE
ADVANCES MADE TO IT UNDER THIS VFCC STRUCTURED NOTE AND THE FUNB STRUCTURED NOTE
IN AN AGGREGATE AMOUNT IN EXCESS OF THE FACILITY AMOUNT (AS DEFINED IN THE LOAN
FUNDING AND SERVICING AGREEMENT (AS DEFINED BELOW)).

        FOR VALUE RECEIVED, ACS FUNDING TRUST I, a Delaware business trust (the
"Borrower"), promises to pay to WACHOVIA SECURITIES, INC. (f/k/a First Union
Securities, Inc. and successor-in-interest to First Union Capital Markets
Corp.), as the deal agent for the Lenders (the "Deal Agent"), or the Lenders'
assigns, the principal sum of (a) prior to the Facility Increase Expiration
Date, TWO HUNDRED AND SEVENTY-FIVE MILLION DOLLARS ($275,000,000) and (b) on and
after the Facility Increase Expiration Date, TWO HUNDRED AND TWENTY-FIVE MILLION
DOLLARS ($225,000,000) or, if less, the unpaid principal amount of the aggregate
advances ("Advances") made by the Lenders (as defined below) to the Borrower
pursuant to the Loan Funding and Servicing Agreement (as defined below), as set
forth on the attached Schedule, on the dates specified in Section 2.6 of the
Loan Funding and Servicing Agreement, and to pay interest on the unpaid
principal amount of each Advance on each day that such unpaid principal amount
is outstanding at the Interest Rate related to such Advance as provided in the
Loan Funding and Servicing Agreement on each Payment Date and each other dates
specified in the Loan Funding and Servicing Agreement.

        This VFCC Structured Note is issued pursuant to the Loan Funding and
Servicing Agreement, dated as of March 31, 1999, as amended by Amendment No. 1,
dated as of June 30, 1999, Amendment No. 2, dated as of September 24, 1999,
Amendment No. 3, dated as of December 14, 1999, Amendment No. 4, dated as of
June 16, 2000, Amendment No. 5, dated as of December 20, 2000, Amendment No. 6,
dated as of March 29, 200 1, Amendment No. 7, dated as of April 19, 200 1,

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Amendment No. 8, dated as of January 15, 2002, Amendment No. 9, dated as of
March 29, 2002, Amendment No. 10, dated as of June 24, 2002 and Amendment
No. 11, dated as of December 30, 2002 (as amended, modified, waived,
supplemented, or restated from time to time, the "Loan Funding and Servicing
Agreement"), by and among the Borrower, American Capital Strategies, Ltd., as
servicer, Variable Funding Capital Corporation, as a lender, the Investors named
therein, Wells Fargo Bank Minnesota, National Association (f/k/a Norwest Bank
Minnesota, National Association), as backup servicer and as collateral
custodian, the Deal Agent, and Wachovia Bank, National Association (f/k/a First
Union National Bank), as a lender and as liquidity agent. Capitalized terms used
but not defined in this VFCC Structured Note are used with the meanings ascribed
to them in the Loan Funding and Servicing Agreement.

        Notwithstanding any other provisions contained in this VFCC Structured
Note, if at any time the Interest Rate payable by the Paying Agent on behalf of
the Borrower under this VFCC Structured Note, when combined with any and all
other charges provided for in this VFCC Structured Note, in the Loan Funding and
Servicing Agreement or in any other document (to the extent such other charges
would constitute interest for the purpose of any applicable law limiting
interest that may be charged on this VFCC Structured Note), exceeds the highest
rate of interest permissible under applicable law (the "Maximum Lawful Rate"),
then so long as the Maximum Lawful Rate would be exceeded the Interest Rate
under this VFCC Structured Note shall be equal to the Maximum Lawful Rate. If at
any time thereafter the Interest Rate payable under this VFCC Structured Note is
less than the Maximum Lawful Rate, the Paying Agent on behalf of the Borrower
shall continue to pay Interest under this VFCC Structured Note at the Maximum
Lawful Rate until such time as the total Interest paid by the Paying Agent on
behalf of the Borrower is equal to the total Interest that would have been paid
had applicable law not limited the Interest Rate payable under this VFCC
Structured Note. In no event shall the total Interest received by the Lenders
under this VFCC Structured Note exceed the amount which such Lenders could
lawfully have received had the Interest due under this VFCC Structured Note been
calculated since the date of this VFCC Structured Note at the Maximum Lawful
Rate.

        Payments of the principal of, and Interest on, the Advances by the
Lenders and represented by this VFCC Structured Note shall be made by the Paying
Agent on behalf of the Borrower to the holder or holders hereof by wire transfer
of immediately available funds in the manner and at the address specified for
such purpose as provided in the Loan Funding and Servicing Agreement, or in such
manner or at such other address as the holder or holders of this VFCC Structured
Note shall have specified in writing to the Borrower for such purpose, without
the presentation or surrender of this VFCC Structured Note or the making of any
notation on this VFCC Structured Note.

        If any payment under this VFCC Structured Note falls due on a day that
is not a Business Day, then such due date shall be extended to the next
succeeding Business Day and Interest shall be payable on any principal so
extended at the applicable Interest Rate.

        If all or a portion of (i) the principal amount hereof or (ii) any
Interest payable thereon or (iii) any other amounts payable hereunder shall not
be paid when due (whether at maturity, by acceleration or otherwise), such
overdue amount shall bear Interest at a rate per annum that is equal to the Base
Rate plus 1.0%, in each case from the date of such non-payment to (but
excluding) the date such amount is paid in full.

        Portions or all of the principal amount of the VFCC Structured Note
shall become due and payable at the time or times set forth in the Loan Funding
and Servicing Agreement. Any portion or all of the principal amount of this VFCC
Structured Note may be prepaid, together with Interest thereon (and, as set
forth in the Loan Funding and Servicing Agreement, certain costs and expenses of
the Lenders) at the time and in the manner set forth in, but subject to the
provisions of, the Loan Funding and Servicing Agreement.

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        The Borrower expressly waives presentment, demand, diligence, protest
and all notices of any kind whatsoever with respect to this VFCC Structured
Note.

        All amounts evidenced by this VFCC Structured Note, the Advances,
Advances Outstanding and all payments and prepayments of the principal hereof
and the respective dates and maturity dates thereof shall be endorsed by the
Deal Agent, as agent for the Lenders, on the Schedule attached hereto and made a
part hereof or on a continuation thereof, which shall be attached hereto and
made a part hereof or otherwise recorded in its internal books or records or
computer system; provided, however, that the failure of the Deal Agent to make
such a notation or recordation shall not in any way limit or otherwise affect
the obligations of the Borrower under this VFCC Structured Note as provided in
the Loan Funding and Servicing Agreement.

        The holder or holders hereof may sell, assign, transfer, negotiate,
grant participations in or otherwise dispose of all or any portion of any
Advance, Advances Outstanding or the Commitment represented by this VFCC
Structured Note. All transfers and pledges of this VFCC Structured Note must be
done in compliance with the Securities Act, applicable state securities laws and
Article 8 of the UCC.

        This VFCC Structured Note is secured by the security interests granted
pursuant to Section 2.9 of the Loan Funding and Servicing Agreement. The holder
or holders of this VFCC Structured Note are entitled to the benefits of the Loan
Funding and Servicing Agreement and may enforce the agreements of the Borrower
contained in the Loan Funding and Servicing Agreement and exercise the remedies
provided for by, or otherwise available in respect of, the Loan Funding and
Servicing Agreement, all in accordance with, and subject to the restrictions
contained in, the terms of the Loan Funding and Servicing Agreement. If a
Termination Event shall occur and the Termination Date has been declared or has
otherwise occurred, the unpaid balance of the principal of all Advances,
together with accrued Interest thereon, shall be declared, and become, due and
payable in the manner and with the effect provided in the Loan Funding and
Servicing Agreement.

        This VFCC Structured Note is one of the "Structured Notes" referred to
in Section 2.5 of the Loan Funding and Servicing Agreement. THIS VFCC STRUCTURED
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE
OF NEW YORK.

        This VFCC Structured Note is intended to be and is a replacement of the
VFCC Structured Note, dated March 31, 1999, in the maximum principal amount of,
prior to the Facility Increase Expiration Date, $275,000,000, and on and after
the Facility Increase Expiration Date, $225,000,000 (the "Replaced Note"). This
VFCC Structured Note evidences the same indebtedness and is secured by the same
Collateral securing the Replaced Note and is not intended to constitute a
novation in any manner.

[Remainder of Page Intentionally Left Blank]

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        IN WITNESS WHEREOF, the undersigned has executed this VFCC Structured
Note as on the date first written above.

    ACS FUNDING TRUST I

 
 
By:
 

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    Name:  

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    Title:  

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Schedule attached to Amended, Restated and Substituted VFCC Structured Note
dated March 31, 1999 of ACS Funding Trust I payable to the order of First Union
Securities, Inc., as the Deal Agent

Advances Outstanding as of December 30, 2002
(Date of Amendment No. 11)
  $                  

Date of
Advance or
Repayment

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Principal
Amount of
Advance

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Principal
Amount of
Repayment

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Advances
Outstanding

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Exhibit 10.8

AMENDED, RESTATED AND SUBSTITUTED VFCC STRUCTURED NOTE