Exhibit 10.8



 Exhibit 10.8 
 AMENDED AND RESTATED 
 EMPLOYMENT AGREEMENT 
 THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of immediately prior to January 1, 2009 (the
“Effective Date”), by and between AMERICAN CAPITAL, LTD., a Delaware corporation, formerly known as AMERICAN CAPITAL STRATEGIES, LTD (the “Company”), and Samuel A. Flax (the “Executive”). 
 W I T N E S S E T H: 
 WHEREAS, the
Executive is a Senior Vice President and General Counsel of the Company; and 
 WHEREAS, it is in the interests of the Company that the
Executive’s service continue to be available to the Company; and 
 WHEREAS, the Company and the Executive entered into an Employment
Agreement dated as of January 1, 2005 (such agreement being the “Original Agreement” and such date being the “Original Effective Date”); and 
 WHEREAS, the Company and the Executive wish to amend and restate the Original Agreement in its entirety to comply with Section 409A of the Internal Revenue Code of 1986, as amended, to the extent applicable and
to make such other changes as are provided herein. 
 NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties
and agreements contained herein, and for other valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree that the Original Agreement is amended and restated in its entirety as follows: 
 ARTICLE 1 
 DEFINITIONS AND
INTERPRETATIONS 
  

	1.1	Definitions 

 For purposes of this Agreement, except
as otherwise expressly provided or unless the context otherwise requires, the following terms shall have the following respective meanings: 
 “Base Salary” shall have the meaning specified in Section 3.1. 
 “Board of Directors” shall mean the Board
of Directors of the Company. 
 “Change of Control” shall mean the occurrence of any of the following events: (i) any person
or group of persons (as defined in Section 13(d) and 14(d) of the Exchange Act) together with its affiliates, excluding employee benefit plans of the Company, becomes, directly or indirectly, the “beneficial owner” (as defined in
Rule 13d-3 under the Exchange Act) of securities of the Company representing 25% or more of the combined voting power of the Company’s then outstanding securities; (ii) the stockholders of the Company approve a merger 








 
or consolidation of the Company with any other corporation or entity regardless of which entity is the survivor, other than a merger or consolidation that
would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or being converted into voting securities of the surviving entity) at least 51% of the combined
voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or (iii) the stockholders of the Company approve a plan of complete liquidation or winding-up of the
Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 “Compensation Committee” shall mean the
Compensation and Corporate Governance Committee of the Board of Directors or such other entity as may be designated by the Board of Directors. 
 “Confidential Information” shall have the meaning specified in Section 5.1(a). 
 “Disability” shall mean a
physical or mental condition of the Executive that, in the good faith judgment of not less than a majority of the Executive Committee, prevents the Executive from being able to perform the services required under this Agreement and that results in
the Executive becoming eligible for long-term disability benefits (if such benefits are provided by the Company). If any dispute arises as to whether a Disability has occurred, or whether a Disability has ceased and the Executive is able to resume
duties, then such dispute shall be referred to a licensed physician appointed by the president of the Medical Society or similar organization in Washington, D.C., at the request of either party. The Executive shall submit to such examinations and
provide information as such physician may request and the determination of such physician as to the Executive’s physical or mental condition shall be binding and conclusive on the parties. The Company shall pay the cost of any such physician
and examination. 
 “Dispute” shall have the meaning specified in Article VI. 
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 “Executive Committee” shall mean the Executive Committee of the Board of Directors or such other entity as may be designated for a particular
function by the Board of Directors. 
 “Expiration Date” shall have the meaning specified in Section 2.2. 
 “Good Reason” shall mean any of the following, which occur within the two months preceding or the 18 months following a Change of Control
and without the Executive’s express written consent: 
 (1) a material diminution of the Executive’s authority, duties or
responsibilities with the Company; 
 (2) a material breach by the Company of any material provision of this Agreement; or 
  

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 (3) any material change in the geographic location at which the Executive must perform services (in this
case, a material change means any location outside of the Washington, DC metropolitan area). 
 The Executive must provide written notice to the Company
within 90 days of the initial existence of a condition set forth in clauses (1) - (3) and the Company shall have 30 days after receipt of any such notice to remedy the condition. If the Company timely remedies such condition, such condition
shall not constitute Good Reason. The Executive may not terminate the Executive’s employment hereunder for Good Reason more than six months after the initial existence of one (or more) of the conditions set forth in clauses (1) - (3) which
constitutes Good Reason. 
 “Misconduct” shall mean one or more of the following: 
 (i) the willful and continued failure by the Executive to perform substantially the Executive’s duties described in Section 2.3 (other than any
such failure resulting from the Executive’s incapacity due to physical or mental illness) after two (2) written notices of such failure have been given to the Executive by the Company and the Executive has had a reasonable period (not to
exceed 15 days from the second notice) to correct such failure; 
 (ii) the commission by the Executive of acts that are dishonest and
demonstrably injurious to the Company (monetarily or otherwise) in any material respect; or 
 (iii) a material breach or violation by the
Executive of (a) any material provision of this Agreement or (b) any material Company employment policy, including its Code of Ethics, that the Company will publish from time to time, which, if capable of being remedied, remains unremedied
for more than 15 days after written notice thereof is given to the Executive by the Company. 
 For purposes of this definition, no act
or failure to act on the Executive’s part shall be considered “Misconduct” if done or omitted to be done by the Executive in good faith and in the reasonable belief that such act or failure to act was in the best interest the Company
or in furtherance of the Executive’s duties and responsibilities described in Section 2.3. 
 “Notice of Termination”
shall mean a notice purporting to terminate the Executive’s employment in accordance with Section 4.1 or 4.2. Such notice shall specify the effective date of such termination, which date shall not be less than 30 days (one (1) day in
the case of a termination by the Company for Misconduct) or more than 60 days after the date such notice is given. If such termination is by the Company for Disability or Misconduct or by the Executive for Good Reason, such notice shall set
forth in reasonable detail the reason for such termination and the facts and circumstances claimed to provide a basis therefor. 
 “Person” shall mean and include an individual, a partnership, a joint venture, a corporation, a trust and an unincorporated organization. 
 “Target Bonus Plan” shall have the meaning specified in Section 3.2. 
 “Term” shall
have the meaning specified in Section 2.2. 
  

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 “Termination Date” shall mean the effective date of the Executive’s termination of
employment and shall be the date specified in a Notice of Termination delivered in accordance with this Agreement. If earlier, the date of the Executive’s death shall be the Termination Date. 
  

	1.2	Interpretations 

 (a) In this Agreement, unless a
clear contrary intention appears, (i) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other
subdivision, (ii) reference to any Article or Section, means such Article or Section hereof, (iii) the words “including” (and with correlative meaning “include”) means including, without limiting the generality of any
description preceding such term, and (iv) where any provision of this Agreement refers to action to be taken by either party, or which such party is prohibited from taking, such provision shall be applicable whether such action is taken
directly or indirectly by such party. 
 (b) The Article and Section headings herein are for convenience only and shall not affect the
construction hereof. 
 (c) References herein to a termination of employment shall be interpreted to mean a “separation from
service” within the meaning of Section 409A of the Code. 
 ARTICLE 2 
 EMPLOYMENT: TERM, POSITIONS AND DUTIES, ETC. 
  

	2.1	Employment 

 The Company agrees to employ the
Executive and the Executive agrees to accept employment with the Company, in each case on the terms and conditions set forth in this Agreement. 
  

	2.2	Term of Employment 

 Unless sooner terminated
pursuant to Article IV, the term of the Executive’s employment under this Agreement (the “Term”) shall commence on the Original Effective Date and shall continue until the first anniversary of the Original Effective Date (the
“Expiration Date”); provided, however, that on each date during the Term, the Expiration Date shall be reset to the date one year after the date thereof, except that either party may terminate this Agreement by giving written notice that
such daily extensions of the Term shall be discontinued in which case the Expiration Date shall be the date one year after the delivery of such notice. 
  

	2.3	Positions and Duties 

 (a) While employed hereunder,
the Executive shall serve as a Senior Vice President and General Counsel of the Company. As such, the Executive shall have the responsibilities and authorities designated to him by the Chief Executive Officer (“CEO”) of the Company.

  

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 (b) While employed hereunder, the Executive shall (i) report directly to the CEO of the Company or
such other person designated by the CEO or the Board of Directors and (ii) observe and comply with all lawful policies, directions and instructions of the CEO or other person so designated that are consistent with the foregoing provisions of
this paragraph 2.3. 
 (c) While employed hereunder, the Executive shall (i) devote substantially all of the Executive’s
business time, attention, skill and efforts to the faithful and efficient performance of the Executive’s duties hereunder and (ii) not accept employment with any Person other than with the Company. Notwithstanding the foregoing, the
Executive may engage in the following activities so long as they do not interfere in any material respect with the performance of the Executive’s duties and responsibilities hereunder: (i) serve on corporate, civic, religious, educational
or charitable boards or committees and (ii) manage the Executive’s personal investments. 
 (d) While employed hereunder, the
Executive shall not knowingly prejudice, in any material respect, the reputation of the Company in the fields of business in which it is engaged or with the investment community or the public at large. 
 ARTICLE 3 
 COMPENSATION AND BENEFITS

  

	3.1	Base Salary 

 (a) For services rendered by the
Executive under this Agreement, the Company shall pay to the Executive an annual base salary (“Base Salary”) of $540,000 evenly paid twice a month or on such other schedule as salaried employees of the Company are generally and regularly
compensated. Subject to paragraph (b) below, the Compensation Committee may adjust the amount of the Base Salary at any time as he or she may deem appropriate in his or her sole discretion. 
 (b) The amount of the Base Salary may not be decreased without the prior written approval of the Executive except that if the CEO or the Compensation
Committee increases the Base Salary as provided in the last sentence of paragraph (a) above, the Compensation Committee may thereafter decrease the Base Salary, provided that in no event shall any such decrease cause the Executive’s Base
Salary to fall below $540,000. 
  

	3.2	Target Bonus Plan 

 During the Term, the Company
shall maintain and the Executive shall be entitled to participate in an annual incentive bonus plan open to senior employees and certain other employees of the Company (the “Target Bonus Plan”), which will provide for the payment of lump
sum cash bonuses to participants after the end of the calendar year to which such cash bonuses relate (and in any event no later than March 15 of the year following the calendar year to which such cash bonuses relate). Under the Target Bonus
Plan, the Executive will be eligible to earn a target bonus (the “Target Bonus”) each year of not less than 150% of the Executive’s Base Salary for such year. Criteria for earning the Target Bonus will be established by the
Compensation Committee based on the Company’s financial performance, the Executive’s contributions to the Company and other appropriate factors. The amount of the Target Bonus 

  

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earned will be based on the performance of the Company and the Executive against such criteria as well as other factors deemed relevant by the Compensation
Committee. The establishment of such criteria and the necessary standards of performance for partial or full earning of the Target Bonus shall be at the sole discretion of the Compensation Committee. 
  

	3.3	Vacation 

 While employed hereunder, the Executive
shall be entitled to vacation benefits in accordance with the vacation policy adopted by the Company from time to time for senior employees. Unless changed by the CEO or the Compensation Committee in a manner generally applicable to senior employees
of the Company, the Executive shall be entitled to four weeks per year. The Executive shall not be entitled to accumulate and carry over unused vacation time from year to year. 
  

	3.4	Other Benefits 

 The Executive shall be entitled to
receive all employee benefits, fringe benefits and other perquisites that may be offered by the Company to its senior employees as a group, including, without limitation, participation by the Executive and, where applicable, the Executive’s
dependents, in the various employee benefit plans or programs (including, without limitation, pension plans, profit sharing plans, stock plans, health plans, life insurance, parking and disability insurance) generally provided to senior employees of
the Company, subject to meeting the eligibility requirements with respect to each of such benefit plans or programs. However, nothing in this Section 3.4 shall be deemed to prohibit the Company from making any changes in any of the plans,
programs or benefits described herein, provided such changes apply to all similarly situated senior employees. 
 ARTICLE 4 

TERMINATION OF EMPLOYMENT 
  

	4.1	Termination by the Executive 

 The Executive may, at
any time prior to the Expiration Date, terminate the Executive’s employment hereunder for any reason by delivering a Notice of Termination to the CEO. Unless such termination is for Good Reason, upon such termination, the Executive shall be
entitled only to those rights and payments payable under Section 4.3. 
  

	4.2	Termination by the Company 

 The CEO or the Board of
Directors may, at any time prior to the Expiration Date, terminate the Executive’s employment hereunder for any reason by delivering a Notice of Termination to the Executive. 
  

	4.3	Payment of Accrued Base Salary, Vacation Pay, etc. 

 (a) Promptly upon the Executive’s Termination Date in the event of the termination of the Executive’s employment for any reason (including death and Disability), and in no event later than 60 days following the Executive’s
Termination Date, as applicable, the Company shall 

  

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pay to the Executive (or the Executive’s estate) a lump sum amount equal to the sum of all (i) unpaid Base Salary earned hereunder prior to the
Termination Date and (ii) unused vacation time accrued by the Executive as of the Termination Date in accordance with Section 3.4. All unpaid benefits earned or vested, as the case may be, by the Executive as of the Termination Date under
any and all incentive or deferred compensation plans or programs of the Company shall be paid to the Executive in accordance with the terms of such plans or programs. 
 (b) A termination of the Executive’s employment in accordance with this Agreement shall not alter or impair any of the Executive’s accrued rights or benefits as of the Termination Date under any employee
benefit plan or program maintained by the Company, in each case except as provided therein or in any written agreement entered into between the Company and the Executive pursuant thereto. 
  

	4.4	Additional Rights in Connection With Disability 

 In
the event that the Company terminates the Executive by reason of Disability by delivering a Notice of Termination to the Executive, the Executive shall be entitled to the benefits and payments set forth in this Section 4.4. 
 (a) Base Salary and Target Bonus. 
 (i) The Company shall pay to the Executive an amount equal to 12 months of Base Salary, at the rate in effect as of the Termination Date, in 12 substantially equal monthly installment payments beginning with the first calendar month which
begins at least 60 days after the Termination Date. Such amount shall be reduced dollar for dollar by any “bona fide disability pay” (within the meaning of Treas. Reg. § 1.409A-1(a)(5)) payable to the Executive under any disability
plan maintained by the Company to the extent permitted by Section 409A of the Code. Each monthly installment shall be treated as a separate payment for purposes of Section 409A of the Code. 
 (ii) The Executive shall be entitled to receive a prorated Target Bonus for the calendar year in which the Executive’s Termination Date occurs, in
an amount equal to the highest Target Bonus that the Executive could have earned in such year multiplied by a fraction, the numerator of which is the number of days from the first day of such calendar year through the Executive’s Termination
Date and the denominator of which is 365. This prorated Target Bonus shall be paid in a single lump sum no later than March 15 of the calendar year following the calendar year in which the Termination Date occurs. 
 (iii) The Executive shall be entitled to receive an additional severance payment in an amount equal to the highest Target Bonus that could have been
earned by the Executive in the year in which the Termination Date occurred. This additional severance payment shall be paid not later than March 15 of the year following the calendar year in which the Termination Date occurs. 
 (b) Insurance Benefits, etc. The Company shall at all times during the 12 month period following the Termination Date (the “Benefits
Continuation Period”) cause the Executive and the Executive’s eligible dependents to be covered by and to participate in all life, accidental death and dismemberment and health insurance plans that are offered to the senior employees of


  

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the Company (or to be covered by and participate in alternative arrangements that are substantially similar to such plans), to the fullest extent allowable
under the terms thereof, and to the extent coverage under such plans does not violate Section 409A of the Code, so that the Executive will receive, at all times during the Benefits Continuation Period, substantially identical benefits under
such plans or arrangements as the Executive would have been entitled to receive had the Executive remained a senior employee of the Company and the Executive’s costs for coverage under such plans or arrangements shall be not greater than if the
Executive had remained a senior employee of the Company. For purposes of this Section 4.4(b): (i) the Company shall provide the required health insurance coverage through one or more third party insurance policies or shall pay or reimburse
the Executive for the cost of individual health insurance coverage for the Executive and his eligible dependents, provided that such coverage shall in all events qualify as an “accident or health plan” under Sections 105 or 106 of the
Code, and (ii) the life insurance coverage provided during one year shall not affect the life insurance coverage provided in any other year. In no event shall the Executive’s continuation period for purposes of Part 6 of Title I of
the Executive Retirement Income Security Act of 1974, as amended (“COBRA”), begin prior to the end of the Executive’s receipt of the Continued Benefits (as defined herein). The Executive shall cooperate with the Company with respect
to obtaining any individual coverage. The benefits provided by this Section 4.4(b) and 4.4(c) are herein referred to as the “Continued Benefits.” 
 (c) In the event that any life insurance coverage provided pursuant to Section 4.4(b) is required to be delayed pursuant to Section 4.7 hereof, the Executive shall be required to pay the full cost of such
coverage during the six-month period immediately following the Executive’s Termination Date. In such case, on the first day of the seventh month following the Executive’s Termination Date, the Company shall pay to the Executive a lump sum
cash payment equal to the amount paid by the Executive pursuant this paragraph 4.4(c). Beginning on the first day of the seventh month, for the remainder of the Benefits Continuation Period, and for any additional period set forth in
Section 4.5 hereof, the Company shall resume paying the employer paid portion of the premium for the life insurance coverage so that the Executive’s costs for such life insurance coverage are not greater than if the Executive had remained
a senior employee of the Company. 
 (d) Should the Executive’s Disability end during the pendency of the Benefits Continuation Period,
the Company may discontinue the payments contemplated by this Section 4.4 if it offers to reemploy the Executive under the terms of this Agreement. 
  

	4.5	Additional Rights in Connection With Termination by the Executive with Good Reason or by the Company for Other than Misconduct or Disability 

 In the event that the Executive terminates the Executive’s employment with the Company pursuant to Section 4.1 for Good Reason or the Company
terminates the Executive’s employment with the Company pursuant to Section 4.2 for other than Misconduct or Disability, the Executive shall be entitled to the payments and benefits set forth in this Section 4.5. 
  

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 (a) Severance Payment and Target Bonus. 
 (i) (A) The Company shall pay to the Executive an amount equal to 12 months of Base Salary, at the highest rate in effect during the 24 months preceding
the date of the Notice of Termination (the “Severance Computation Period”) in 12 substantially equal monthly installment payments beginning with the first calendar month which begins at least 60 days after the Termination Date. (B) In
addition, the Executive shall be entitled to an additional payment in an amount equal to six times the amount of a single installment payment under (A), which payment shall be paid in six equal monthly installment payments beginning with the first
month after the last installment payment in (A) is payable. Each monthly installment shall be treated as a separate payment for purposes of Section 409A of the Code. 
 (ii) The Executive shall be entitled to receive a prorated Target Bonus for the calendar year in which the Executive’s Termination Date occurs, in
an amount equal to the highest Target Bonus that the Executive could have earned in such year multiplied by a fraction, the numerator of which is the number of days from the first day of such calendar year through the Executive’s Termination
Date and the denominator of which is 365. This prorated Target Bonus shall be paid in a single lump sum no later than March 15 of the calendar year following the calendar year in which the Termination Date occurs. 
 (iii) The Executive shall be entitled to receive an additional severance payment in an amount equal to 1.5 (the “Multiplier”) multiplied by the
greater of: (A) the highest Target Bonus that could have been earned for the calendar year in which the Termination Date occurred or (B) the highest Target Bonus actually paid to the Executive for any of the three calendar years ending
prior to the Termination Date. This additional severance payment shall be paid not later than March 15 of the year following the calendar year in which the Termination Date occurs. 
 (b) Insurance Benefits, etc. 
 (i) (A)
The Executive shall receive the Continued Benefits for the Benefits Continuation Period. (B) In addition, the Executive shall receive the Continued Benefits for an additional six months beginning immediately after the Continued Benefits
provided under (A) end. 
 (ii) In the event that the Executive does not satisfy
the irrevocable release requirement of Section 4.5(d) hereof prior to the 60th day following the Executive’s Termination Date, the
benefits continuation provided for by this Section 4.5 shall immediately terminate (with the exception of the Executive’s rights to elect COBRA continuation coverage, as required by law) as of immediately prior to such 60th day. 
 (c) Special Rule on Change of
Control. In the event that a termination of employment subject to this Section 4.5 shall occur within the two months preceding or the 18 months following a Change of Control, (i) the Severance Computation Period in
Section 4.5(a)(i) shall be 36 months, (ii) the Executive shall be entitled an additional payment in an amount equal to six times the amount of a single installment payment under 4.5(a)(i), which payment shall be paid in six equal
monthly installment payments beginning with the first month after the last installment payment in 4.5(a)(i) is payable (each such installment shall be treated as 

  

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a separate payment for purposes of Section 409A), (iii) the Multiplier in Section 4.5(a)(iii) shall be 2, and (iv) the Executive shall
receive the Continued Benefits for an additional six months beginning immediately after the Continued Benefits provided under Section 4.5(b)(i). 
 (d) Release. Notwithstanding anything in this Section 4.5 to the contrary, as a
condition to the receipt of any payment under this Section 4.5 (and as a condition to receiving the Continued Benefits under Section 4.5(b) hereof from and beyond the 60th day following the Executive’s Termination Date), the Executive must first execute and deliver to the Company, within 45 days following the Executive’s Termination Date, an effective release in the form set
out in Exhibit 4.5(d) hereto, that becomes irrevocable prior to the 60th day following the Executive’s Termination Date, releasing the
Company, its officers, Board of Directors, employees and agents from any and all claims and from any and all causes of action of any kind or character that the Executive may have arising out of the Executive’s employment with the Company or the
termination of such employment, but excluding any claims and causes of action that the Executive may have arising under or based upon this Agreement. 
  

	4.6	Additional Rights in the Event of Death 

 In the
event that the Executive’s employment is terminated as a result of the Executive’s death, the Executive’s estate or beneficiaries shall be entitled to the payments and benefits set forth in this Section 4.6: 
 (a) Target Bonus. The Executive’s estate shall be entitled to receive a prorated Target Bonus for the calendar year in which the
Executive’s death occurs, equal to the highest Target Bonus that the Executive could have earned in such year multiplied by a fraction, the numerator of which is the number of days from the first day of such calendar year through date of the
Executive’s death and the denominator of which is 365. This prorated Target Bonus shall be paid in a single lump sum no later than March 15 of the calendar year following the calendar year in which the Termination Date occurs. 

(b) Insurance Benefits, etc. The Company shall pay the cost for dependents of the Executive for group insurance coverage that they are entitled
to obtain from the Company following the Executive’s death pursuant to COBRA for a period equal to two months multiplied by the number of full years (not to exceed nine) during which the Executive was employed by the Company. 
  

	4.7	Specified Employees 

 (a) Notwithstanding anything
to the contrary herein, if a payment or benefit under this Agreement is due to a “separation from service” for purposes of the rules under Treas. Reg. § 1.409A-3(i)(2) (payments to specified employees upon a separation from service)
and the Executive is determined to be a “specified employee” (as determined under Treas. Reg. § 1.409A-1(i) and the related Company procedures), such payment shall, to the extent necessary to comply with the requirements of
Section 409A of the Code, be made on the later of the date specified by the foregoing provisions of this Agreement or the date that is six months after the date of the Executive’s separation from service. Any installment payments that are
delayed pursuant to this Section 4.7 shall be accumulated and paid in a lump sum on the first day of the 

  

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seventh month following the date of the Executive’s Termination Date, and the remaining installment payments shall begin on such date in accordance with
the schedule provided in this Agreement. 
 ARTICLE 5 
 CONFIDENTIAL INFORMATION AND NON-COMPETITION 
  

	5.1	Confidential Information 

 (a) The Executive
recognizes that the services to be performed by the Executive hereunder are special, unique, and extraordinary and that, by reason of such employment with the Company, the Executive may acquire Confidential Information concerning the operation of
the Company, the use or disclosure of which would cause the Company substantial loss and damages which could not be readily calculated and for which no remedy at law would be adequate. Accordingly, the Executive agrees that the Executive will not
(directly or indirectly) at any time, whether during or after the Executive’s employment hereunder, (i) knowingly use for an improper personal benefit any Confidential Information that the Executive may learn or has learned by reason of
the Executive’s employment with the Company or (ii) disclose any such Confidential Information to any Person except (A) in the performance of the Executive’s obligations to the Company hereunder, (B) as required by
applicable law, (C) in connection with the enforcement of the Executive’s rights under this Agreement, (D) in connection with any disagreement, dispute or litigation (pending or threatened) between the Executive and the Company or
(E) with the prior written consent of the Board of Directors. As used herein, “Confidential Information” includes information with respect to the operation and performance of the Company, its investments, portfolio companies,
products, services, facilities, product methods, research and development, trade secrets and other intellectual property, systems, patents and patent applications, procedures, manuals, confidential reports, product price lists, customer lists,
financial information, business plans, prospects or opportunities (including, as applicable, all of the foregoing information regarding the Company’s past, current and prospective portfolio companies); provided, however, that such term, shall
not include any information that (x) is or becomes generally known or available other than as a result of a disclosure by the Executive or (y) is or becomes known or available to the Executive on a nonconfidential basis from a source
(other than the Company) that, to the Executive’s knowledge, is not prohibited from disclosing such information to the Executive by a legal, contractual, fiduciary or other obligation to the Company. 
 (b) The Executive confirms that all Confidential Information is the exclusive property of the Company. All business records, papers and documents kept or
made by the Executive while employed by the Company relating to the business of the Company shall be and remain the property of the Company at all times. Upon the request of the Company at any time, the Executive shall promptly deliver to the
Company, and shall retain no copies of, any written materials, records and documents made by the Executive or coming into the Executive’s possession while employed by the Company concerning the business or affairs of the Company other than
personal materials, records and documents (including notes and correspondence) of the Executive not containing proprietary information relating to such business or affairs. Notwithstanding the foregoing, the Executive shall be permitted to retain
copies of, or have access to, all such materials, records and documents relating to any disagreement, dispute or litigation (pending or threatened) between the Executive and the Company. 
  

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	5.2	Non-Competition 

 (a) While employed hereunder and
(i) if the Executive’s employment is terminated and the Executive is entitled to receive compensation and benefits under Section 4.5, during the time the Executive is receiving payments pursuant to either Section 4.5(a)(i) or
Section 4.5(c), if applicable, or (ii) if the Executives employment is otherwise terminated, for a period of one (1) year thereafter (such applicable period being the “Restricted Period”), the Executive shall not, unless the
Executive receives the prior written consent of the Board of Directors, own a material interest in, manage, operate, join, control, lend money or render financial or other assistance to or participate in or be connected with, as an officer,
employee, partner, stockholder, consultant or otherwise, (A) any Person (x) that competes with the Company in investing or consulting with small and medium sized businesses in the United States with regard to change of control transactions
in which the transaction utilizes employee stock ownership plans, or (y) that provides or proposes to provide services to or owns an investment in or proposes to make an investment in any Person that is a client of the Company as of the
Termination Date or to which the Company has outstanding loans or in which the Company then has investments (including warrants or options), or (B) any potential customer of the Company with which the Company has discussed a client, loan or
investment relationship within 12 months prior to, as applicable, the end of the Executive’s employment or the Termination Date. 
 (b) The Executive has carefully read and considered the provisions of this Section 5.2 and, having done so, agrees that the restrictions set forth in this Section 5.2 (including the Restricted Period, scope of activity to be
restrained and the geographical scope) are fair and reasonable and are reasonably required for the protection of the interests of the Company, its officers, directors, employees, creditors and shareholders. The Executive understands that the
restrictions contained in this Section 5.2 may limit the Executive’s ability to engage in a business similar to the Company’s business, but acknowledges that the Executive will receive sufficiently high remuneration and other benefits
from the Company hereunder to justify such restrictions. 
 (c) During the Restricted Period, the Executive shall not, whether for the
Executive’s own account or for the account of any other Person (excluding the Company), intentionally (i) solicit, endeavor to entice or induce any employee of the Company to terminate the Executive’s employment with the Company or
accept employment with anyone else or (ii) interfere in a similar manner with the business of the Company. 
 (d) In the event that any
provision of this Section 5.2 relating to the Restricted Period or the areas of restriction shall be declared by a court of competent jurisdiction to exceed the maximum time period or areas such court deems reasonable and enforceable, the
Restricted Period or areas of restriction deemed reasonable and enforceable by the court shall become and thereafter be the maximum time period and/or areas. 
  

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	5.3	Injunctive Relief 

 The Executive acknowledges that
a breach of any of the covenants contained in this Article V may result in material irreparable injury to the Company for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and
that, in the event of such a breach, any payments remaining under the terms of this Agreement shall cease and the Company shall be entitled to obtain a temporary restraining order or a preliminary or permanent injunction restraining the Executive
from engaging in activities prohibited by this Article V or such other relief as may be required to specifically enforce any of the covenants contained in this Article V. The Executive agrees to and hereby does submit to in personam
jurisdiction before each and every such court for that purpose. 
 ARTICLE 6 
 DISPUTE RESOLUTION 
 In the event a dispute shall arise between the parties as
to whether the provisions of this Agreement have been complied with (a “Dispute”), the parties agree to resolve such Dispute in accordance with the following procedure: 
 (a) A meeting shall be held promptly between the parties, attended (in the case of the Company) by one or more individuals with decision-making authority
regarding the Dispute, to attempt in good faith to negotiate a resolution of the Dispute. 
 (b) If, within 10 days after such meeting,
the parties have not succeeded in negotiating a resolution of the Dispute, the parties agree to submit the Dispute to mediation in accordance with the Commercial Mediation Rules of the American Arbitration Association except that Disputes with
regard to the existence of a Disability shall be resolved in accordance with the definition of the term “Disability” above. 
 (c)
The parties will jointly appoint a mutually acceptable mediator, seeking assistance in such regard from the American Arbitration Association if they have been unable to agree upon such appointment within 10 days following the 10-day period
referred to in clause (b) above. 
 (d) Upon appointment of the mediator, the parties agree to participate in good faith in the
mediation and negotiations relating thereto for 15 days. 
 (e) If the parties are not successful in resolving the Dispute through
mediation within such 15-day period, the parties agree that the Dispute shall be settled by arbitration in accordance with the Expedited Procedures of the Commercial Arbitration Rules of the American Arbitration Association. 
 (f) The fees and expenses of the mediator/arbitrators shall be borne solely by the non-prevailing party or, in the event there is no clear prevailing
party, as the mediator/arbitrators deem appropriate. 
 (g) Except as provided above, each party shall pay its own costs and expenses
(including, without limitation, attorneys’ fees) relating to any mediation/arbitration proceeding conducted under this Article VI. 
  

 13 








 (h) All mediation/arbitration conferences and hearings will be held in the greater Washington, D.C. area.

 (i) In the event there is any disputed question of law involved in any arbitration proceeding, such as the proper legal interpretation of
any provision of this Agreement, the arbitrators shall make separate and distinct findings of all facts material to the disputed question of law to be decided and, on the basis of the facts so found, express their conclusion of the question of law.
The facts so found shall be conclusive and binding on the parties, but any legal conclusion reached by the arbitrators from such facts may be submitted by either party to a court of law for final determination by initiation of a civil action in the
manner provided by law. Such action, to be valid, must be commenced within 20 days after receipt of the arbitrators’ decision. If no such civil action is commenced within such 20-day period, the legal conclusion reached by the arbitrators
shall be conclusive and binding on the parties. Any such civil action shall be submitted, heard and determined solely on the basis of the facts found by the arbitrators. Neither of the parties shall, or shall be entitled to, submit any additional or
different facts for consideration by the court. In the event any civil action is commenced under this paragraph (i), the party who prevails or substantially prevails (as determined by the court) in such civil action shall be entitled to recover
from the other party all costs, expenses and reasonable attorneys’ fees incurred by the prevailing party in connection with such action and on appeal. 
 (j) Except as limited by paragraph (i) above, the parties agree that judgment upon the award rendered by the arbitrators may be entered in any court of competent jurisdiction. In the event legal proceedings are
commenced to enforce the rights awarded in an arbitration proceeding, the party who prevails or substantially prevails in such legal proceeding shall be entitled to recover from the other party all costs, expenses and reasonable attorneys’ fees
incurred by the prevailing party in connection with such legal proceeding and on appeal. 
 (k) Except as provided above, (i) no legal
action may be brought by either party with respect to any Dispute and (ii) all Disputes shall be determined only in accordance with the procedures set forth above. 
 ARTICLE 7 
 MISCELLANEOUS 
  

	7.1	No Mitigation or Offset 

 The provisions of this
Agreement are not intended to, nor shall they be construed to, require that the Executive mitigate the amount of any payment provided for in this Agreement by seeking or accepting other employment, nor shall the amount of any payment provided for in
this Agreement be reduced by any compensation earned by the Executive as the result of employment by another employer or otherwise. Without limitation of the foregoing, the Company’s obligations to make the payments to the Executive required
under this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set off, counterclaim, recoupment, defense or other claim, right or action that the Company may have against the Executive, except that the Company
may deduct from any amount required to be reimbursed to the Company by the Executive under Article VI the amount of any payment which the Company is then required to make to the Executive hereunder. 
  

 14 









	7.2	Indemnification 

 Except as would not materially
adversely affect the Executive’s right to indemnification from the Company, no provision of the Company’s Certificate of Incorporation or by-laws may be amended, modified or repealed. 
  

	7.3	Assignability 

 The obligations of the Executive
hereunder are personal and may not be assigned or delegated by the Executive or transferred in any manner whatsoever, nor are such obligations subject to involuntary alienation, assignment or transfer. The Company shall have the right to assign this
Agreement and to delegate all rights, duties and obligations hereunder as provided in Section 7.6. 
  

	7.4	Notices 

 All notices and all other communications
provided for in the Agreement shall be in writing and addressed (i) if to the Company, at its principal office address or such other address as it may have designated by written notice to the Executive for purposes hereof, directed to the
attention of the CEO with a copy to the Secretary of the Company and (ii) if to the Executive, at the Executive’s residence address on the records of the Company or to such other address as the Executive may have designated to the Company
in writing for purposes hereof. Each such notice or other communication shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, except that any notice of change of
address shall be effective only upon receipt. 
  

	7.5	Severability 

 The invalidity or unenforceability of
any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 
  

	7.6	Successors: Binding Agreement 

 (a) The Company will
require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, by agreement in form and substance reasonably acceptable to the Executive,
expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain such agreement prior to the
effectiveness of any such succession shall be a breach of this Agreement. As used herein, the term “Company” shall include any successor to its business and/or assets as aforesaid which executes and delivers the Agreement provided for in
this Section 7.6 or which otherwise becomes bound by all terms and provisions of this Agreement by operation of law. 
 (b) This
Agreement and all rights of the Executive hereunder shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributes, devisees and legatees. If the
Executive should die 

  

 15 








 
while any amounts would be payable to the Executive hereunder if the Executive had continued to live, all such amounts, unless otherwise provided herein,
shall be paid in accordance with the terms of this Agreement to the Executive’s devisee, legatee, or other designee or, if there be no such designee, to the Executive’s estate. 
  

	7.7	Tax Matters 

 The Company shall withhold from all
payments hereunder all applicable taxes (federal, state or other) that it is required to withhold therefrom unless the Executive has otherwise paid (or made other arrangements satisfactory) to the Company the amount of such taxes. 
  

	7.8	Section 409A of the Code 

 This Agreement is
intended to comply with the requirements of Code Section 409A (including the exceptions thereto), to the extent applicable, and the Company shall administer and interpret this Agreement in accordance with such requirements. Notwithstanding any
other provision hereof, if any provision of this Agreement conflicts with the requirements of Code Section 409A, the requirements of Code Section 409A shall supersede any such provision. 
 In no event whatsoever shall the Company be liable for any additional tax, interest or penalties that may be imposed on the Executive by
Section 409A of the Code or any damages for failing to comply with Section 409A of the Code. 
  

	7.9	Amendments and Waivers 

 No provision of this
Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Executive and the Company. No waiver by either party hereto at any time of any breach by the other party hereto
of, or in compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 
  

	7.10	Entire Agreement, Termination of Other Agreements 

 This Agreement is an integration of the parties’ agreement and no agreement or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party that are not set forth
expressly in this Agreement. 
  

	7.11	Governing Law 

 THE VALIDITY, INTERPRETATION,
CONSTRUCTION AND PERFORMANCE OF THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF MARYLAND, WITHOUT REGARD TO ITS CONFLICT OF LAWS PROVISIONS. 
  

	7.12	Counterparts 

 This Agreement may be executed in or
more counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same instrument. 
  

 16 








 IN WITNESS WHEREOF, the parties have executed this Agreement on December 23, 2008, effective as of
the date first above written. 
  

			
	AMERICAN CAPITAL, LTD.
		
		 	 /s/ Malon Wilkus

	By:	 	Malon Wilkus, Chief Executive Officer
	
	THE EXECUTIVE:
	
	 /s/ Samuel A. Flax



  

 17 








 EXHIBIT 4.5(d) 
 RELEASE AGREEMENT 
 THIS RELEASE AGREEMENT
(the “Agreement”), is made as of the      day of             ,             , by and between
AMERICAN CAPITAL, LTD., a Delaware corporation with its principal place of business at 2 Bethesda Metro Center, 14th Floor, Bethesda, Maryland
(the “Corporation”), and                     , an individual (the “Executive”). 
 W I T N E S S E T H: 
 WHEREAS, the
parties hereto are parties to a certain Amended and Restated Employment Agreement entered into as of immediately prior to January 1, 2009 (the “Employment Agreement”); and 
 WHEREAS, the execution and delivery of this Release Agreement as of the date hereof is a requirement of Section 4.5(d) thereof. 
 NOW, THEREFORE, in consideration of the foregoing and of the mutual agreements and covenants herein contained, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 1. Mutual Release.

 (a) The Executive, on his own behalf and on behalf of his heirs, representatives and assigns, hereby waives, releases, and forever and
irrevocably discharges the Corporation, and its agents, attorneys, officers, directors, employees, successors and assigns (collectively, the “Corporation Released Parties”) from any and all obligations, debts, demands, claims and
liabilities of every kind and nature, either in law or in equity, that the Executive may now have, may in the future have or may ever have had, against the Corporation Released Parties arising in any manner from or in any manner related, directly or
indirectly, to the Executive’s service or employment as a director, officer and/or an employee of the Corporation including, without limitation, the circumstances relating to the termination thereof, except for such obligations as shall
specifically survive the termination of the Executive’s employment under the terms of the Employment Agreement. 
 (b) The Corporation,
on its own behalf and on behalf of its successors and assigns, hereby waives, releases, and forever and irrevocably discharges the Executive, and his agents, attorneys, heirs, representatives and assigns (collectively, the “Executive Released
Parties”) from any and all obligations, debts, demands, claims and liabilities of every kind and nature, either in law or in equity, that the Corporation may now have, may in the future have or may ever have had against the Executive Released
Parties arising in any manner from or in any manner related to, directly or indirectly, the Executive’s service or employment as a director, officer and/or an employee of the Corporation including, without limitation, the circumstances relating
to the termination thereof, except for such obligations as shall specifically survive the termination of the Executive’s employment under the terms of the Employment Agreement. 
 2. Miscellaneous. This Agreement constitutes the entire agreement between the parties hereto with regard to the subject matter hereof and
supersedes all prior negotiations, 

  

 Exh. 4.5(d) - 1 








 
representations and agreements, either written or oral, between them except for the Surviving Agreements. There are no conditions, agreements, or
representations between the parties except those expressed herein. This Agreement may be altered, modified, amended, or repealed only by a duly executed written instrument signed by the parties hereto. This Agreement shall be governed by the law of
the State of Maryland, without giving effect to the conflicts of laws provisions thereof. Each party binds himself or itself and his or its heirs, successors, legal representatives and assigns in respect to all covenants and agreements contained
herein. Except as specifically contemplated herein, nothing herein shall be construed as giving any right or benefit hereunder to anyone other than the parties hereto. 
 IN WITNESS WHEREOF, the parties have executed this Agreement under seal as of the date first hereinabove written. 
  

							
	WITNESS:	 	THE EXECUTIVE:	 	
			
		 	  
	 	
		 		 	(Seal)
			
		 	 AMERICAN CAPITAL, LTD.
 A
Delaware Corporation
	 	
				
		 		 	  
	 	
		 	By:	 	Name:	 	(Seal)
		 		 	Title	 	

  

 Exh. 4.5(d) - 2