Document:

Exhibit 10.16

                             SPLIT DOLLAR AGREEMENT

         This SPLIT DOLLAR AGREEMENT (this "Agreement") is entered into as of
September 7, 1999, by and between ROLAND CLINE (the "Owner") and AMERICAN
CAPITAL STRATEGIES, LTD., a Delaware corporation (the "Employer").

                                 R E C I T A L S

         WHEREAS, the Owner and the Employer have entered into a Stock Option
Exercise Agreement of event date herewith (the "Exercise Agreement") pursuant to
which they have agreed to enter into and consummate this Agreement; and

         WHEREAS, Owner will be the owner and possessor of the Policy (as
defined herein) and will assign an interest in the Policy's death benefit and
cash value to the Employer as collateral to secure repayment of Employer's
premium payments with respect to the Policy pursuant to the Exercise Agreement;
and

         WHEREAS, it is the intent of the Employer and Owner to define the
extent of the Employer's security interest in the Policy;

         NOW, THEREFORE, the parties hereto, in consideration of the foregoing
and intending to be legally bound hereby, agree as follows:

         1. Interests in the Policy. The Policy that is the subject of this
Split Dollar Agreement is Security Life of Denver Insurance Company (the
"Insurer") Policy Number 610014589 on the life of the Owner (the "Policy"). The
Employer's interest in the cash value and death benefits of the Policy (the
"Employer's Interest") as of any date, shall be equal to the Unamortized Premium
Payment (as defined herein) as of such date with interest accumulated at a rate
of 4.5% per annum. The Owner's interest in the cash value and death benefits of
the Policy (the "Owner's Interest") shall be equal to the remaining cash value

                                                               A:\Exh. 10.16.doc
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and death benefits of the Policy, if any, in excess of the Employer's Interest,
reduced by any distributions made to the Owner prior to such date.

         2. Premium Payments. The Employer will, on or as of the date hereof and
on each of the first four anniversaries of the date hereof, make cash payments
on the Policy in the amount of $96,315 (each payment being an "Annual Premium
Payment" and collectively, the "Aggregate Premium Payments"). The Owner shall
have imputed income each year in an amount equal to (a) the annual cost of
current death benefit protection on the life of the Owner, measured by the lower
of (i) the PS 58 rate, as set forth in Revenue Ruling 55-747 (or the
corresponding applicable provision of any future Revenue Ruling), or (ii) the
Insurer's current published premium rate for annually renewable term insurance
for standard risks plus, without duplication, (b) one-tenth of the Aggregate
Premium Payments. The "Unamortized Premium Payment" as of any date shall be the
aggregate Annual Premium Payments made through such date reduced by 2.5% of the
Aggregate Premium Payments on each October 1, January 1, March 1 and July 1
during the term of this Agreement.

         3. Death Benefit Amounts.

                  a. In the event of Owner's death prior to the termination of
this Agreement, the death benefit payable to the Employer (or the Employer's
designated beneficiaries) under this Agreement shall be equal to the Employer's
Interest in the Policy at the time of Owner's death.

                  b. In the event of the Owner's death prior to the termination
of this Agreement, the death benefit payable to the Owner (or the Owner's
designated beneficiaries) shall be the excess of the total death proceeds under

                                     - 2 -
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the Policy less the amount payable to the Employer (or the Employer's designated
beneficiaries). Following the termination of this Agreement and upon the
satisfaction of the Employer's Interest in the Policy, the Owner's death benefit
will be equal to the total death benefit provided by the Policy.

                  c. Owner understands that sufficiency of cash value in the
Policy to provide expected amounts of death benefit under this Agreement may
vary as a result of Policy performance and duration of premium payments and this
is in no event guaranteed by the Employer or the Insurer.

         4. Ownership and Rights in the Policy.

                  a. The Policy will be owned exclusively by the Owner. While
this Agreement is in effect, the Employer has a security interest in the Policy
under this Agreement limited exclusively to the Employer's Interest in the
Policy; provided, however, this paragraph 4 shall not in any way limit or affect
the obligations or rights of the parties under that Exercise Agreement.

                  b. The Owner shall have the right to make any investment
choices permitted by the Policy and that appear on Exhibit A hereto with respect
to the cash value of the Policy. Any other investment choices will require the
consent of the Employer.

                  c. The Owner's rights shall also include the right to select
and change beneficiaries to receive Owner's death benefits. The Owner will not
be permitted to borrow against, or partially or totally surrender the Policy as
long as the Collateral Assignment remains in force, except as provided in the
Exercise Agreement. Any other rights in the Policy other than those specifically

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mentioned in this Agreement must be exercised with the written consent of both
the Owner and the Employer.

                  d. Notwithstanding anything to the contrary in this Agreement,
Owner shall have the right to assign ownership of the Policy to an insurance
trust created by the Owner, provided that any such assignment shall be made
expressly subject to the rights and interests of the Employer to the Policy
created under this Agreement and under the Exercise Agreement and the trustee
thereof shall have executed such instrument as the Employer may reasonably
request confirming such rights and interests of the Employer.

         5. Assignment of Policy to Secure Employer's Payments. To secure
Employer's Interest in the Policy under this Agreement, Owner will collaterally
assign the Policy to the Employer by signing the separate Collateral Assignment.
The Collateral Assignment cannot be altered without the Employer's, Owner's and
Insurer's consent.

         6. Termination of Split Dollar Agreement. This Agreement will terminate
upon the earliest to occur of the following:

                  a. Death of the Owner and the payment to Employer of all
amounts due it hereunder;

                  b. Written agreement of both the Owner and the Employer to
terminate this Agreement;

                  c. Termination of Owner's employment; provided however, that
if the Employer and Owner are parties to a Supplemental Employment Agreement
substantially in the form of Exhibit 4.11 to the Second Amended and Restated
Employment Agreement dated as of June 7, 1999, between Employer and Owner, Owner

                                     - 4 -
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shall be deemed to be employed by Employer only if Employee has elected to be
bound by Section 5.2(a) thereof; or

                  d. A release of the Collateral Assignment pursuant to Section
7 herein. Upon termination of this Agreement, the Employer shall receive the
Employer's Interest in the Policy as soon as is practical, but in no event shall
receipt be later than sixty (60) days from the earliest of the dates listed
above. In the event of termination of this Agreement for reason other than the
death of the Owner, the payment of the Employer's Interest in the Policy and
under this Agreement shall be satisfied either directly from the cash value of
the Policy or by direct payment by the Owner, at the discretion of the Owner. In
this event, the recovery of the Employer's Interest shall be limited to the cash
value of the Policy at that time. In the event of termination of this Agreement
by reason of the death of the Owner, the Employer's Interest in the Policy and
under this Agreement shall be satisfied through direct payment from the Insurer
from the Policy proceeds.

         7. Release of Collateral Assignment. Upon receipt of the Employer's
Interest in the Policy, as provided above, either whether from the Policy, or
from the Owner, the Employer will release the Collateral Assignment. Upon
satisfaction of the Employer's Interest in the Policy, the Owner shall have
unrestricted ownership to the Policy, subject to the terms of the Exercise
Agreement.

         8. Miscellaneous.

                  a. Not an Employment Agreement. This Agreement does not in any
way constitute an employment agreement, and the Employer reserves the right to
terminate Owner's employment to the same extent as though this Agreement did not

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exist. This Agreement may be amended at any time by written agreement signed on
behalf of the Employer and by the Owner.

                  b. Binding Effect. This Agreement shall be binding upon and
inure to the benefit of the Employer and its successors and assigns, and to the
Owner and the Owner's heirs, executor or personal representative and
beneficiaries.

                  c. Notices. Any notice, consent or demand required or
permitted under this Agreement shall be made in writing and shall be signed by
the party making the notice, consent, or demand. Such notice shall be sent by
United States certified mail, postage pre-paid and shall be sent to the other
party's last known address as shown on the records of the Employer. The date of
such mailing shall be deemed to be the date of such notice, consent or demand.

                  d. Governing Law. This Agreement shall be governed by and be
construed in accordance with the laws of the State of Maryland, without
reference to the conflicts of laws provisions thereof.

         9. Claims Procedures.

                  a. Claimants. Any person or entity claiming a benefit,
requesting an interpretation or ruling under the Plan (hereinafter referred to
as "Claimant") shall present the request in writing to the Employer, which shall
respond in writing as soon as practicable. If the claim or request is denied,
the written notice of denial shall state the reason for denial, with specific
reference to the provisions on which the denials is based, a description of any
additional material or information required and an explanation of why it is
necessary, and an explanation of the program's claims review procedure.

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                  b. Review of Claim. Any Claimant whose claim or request is
denied or who has not received a response within sixty (60) days may request a
review by notice given in writing to the Employer. Such request must be made
within sixty (60) days after receipt by the Claimant of the written notice of
denial, or in the event Claimant has not received a response sixty (60) days
after receipt by the Employer of Claimant's claim or request. The claim or
request shall be reviewed by the Employer which may, but shall not be required
to, grant the Claimant a hearing. On review, the Claimant may have
representation, examine pertinent documents, and submit issues and comments in
writing.

                  c. Final Decision. The decision or review shall normally be
made within sixty (60) days after the Employer's receipt of Claimant's claim or
request. If an extension of time is required for a hearing or other special
circumstances, the Claimant shall be notified and the time limit shall be one
hundred twenty (120) days. The decision shall be in writing and shall state the
reason and the relevant provisions. All decisions on review shall be final and
bind all parties concerned.

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         IN WITNESS WHEREOF, the Employer and the Owner have executed and
delivered this Split Dollar Agreement, which is effective as of the effective
date of the Policy described herein.

                                             AMERICAN CAPITAL STRATEGIES. LTD.

                                             By:
                                                 -------------------------------
                                                 Name:
                                                        ------------------------
                                                 Title:
                                                        ------------------------

                                             OWNER

                                             -----------------------------------

-----------------------------
         Witness

                                     - 8 -Exhibit 10.19

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                                                                  EXECUTION COPY
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                               AMENDMENT NO. 3 TO
                      LOAN FUNDING AND SERVICING AGREEMENT

                  THIS AMENDMENT NO. 3 TO LOAN FUNDING AND SERVICING AGREEMENT,
dated as of December 14, 1999 (this "Amendment"), is entered into by and among
ACS FUNDING TRUST I ("Borrower"), as Borrower, AMERICAN CAPITAL STRATEGIES, LTD.
("Servicer"), as Servicer, certain INVESTORS, VARIABLE FUNDING CAPITAL
CORPORATION ("VFCC"), as a Lender, FIRST UNION SECURITIES, INC.
(successor-in-interest to First Union Capital Markets Corp.), as Deal Agent,
FIRST UNION NATIONAL BANK ("First Union"), as a Lender and as Liquidity Agent
and NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, as Collateral Custodian and
the Backup Servicer. Capitalized terms used and not otherwise defined herein are
used as defined in the Agreement (as defined below).

                  WHEREAS, the parties hereto entered into that certain Loan
Funding and Servicing Agreement, dated as of March 31, 1999 as amended by that
Amendment No. 1, dated as of June 30, 1999, and that Amendment No. 2, dated as
of September 24, 1999 (as amended, the "Agreement");

                  WHEREAS, the parties hereto desire to amend the Agreement in
certain respects as provided herein;

                  NOW THEREFORE, in consideration of the premises and the other
mutual covenants contained herein, the parties hereto agree as follows:

                  SECTION 1. Amendments.

                  (a) The definition of "Facility Amount" contained in Section
1.1 of the Agreement is hereby amended and restated to read in its entirety as
follows:

                  "Facility Amount: At any time, $225,000,000.00; provided,
                  however, on or after the Termination Date, the Facility Amount
                  shall be zero."

                  (b) The second sentence of Section 2.5(a) of the Agreement is
hereby amended and restated in its entirety as follows:

                  "The Notes shall be dated the Closing Date and shall be in a
                  maximum principal amount equal to (i) $225,000,000 in the case
                  of VFCC Note, (ii) $225,000,000 in the case of the Investor
                  Note, and (iii) $10,000,000 in the case of the FUNB Note;
                  provided, however, that anything to the contrary

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                  notwithstanding, the indebtedness of the Borrower evidenced by
                  the Notes shall not in the aggregate exceed the Facility
                  Amount."

         (c) The Commitment of First Union National Bank as an Investor set
forth on the signature pages of the Agreement is hereby amended and restated to
be "$225,000,000."

         (d) The Commitment of First Union National Bank as a Lender set forth
on the signature pages of the Agreement is hereby amended and restated to be
"$10,000,000."

                  SECTION 2. Increase in Facility Amount and Amount of Notes.
Effective on the date of this Amendment, the Facility Amount shall be increased
to $225,000,000; provided, that First Union shall first have received executed
versions of the Notes referenced in clauses (i), (ii) and (iii) of the
succeeding sentence. In connection with such increase, the Borrower agrees to
execute and deliver to First Union, on behalf of the holders of the Notes, (i)
an amended, restated and substituted VFCC Note in the maximum principal amount
of $225,000,000, (ii) an amended, restated and substituted Investor Note in the
maximum principal amount of $225,000,000, and (iii) an amended, restated and
substituted FUNB Note in the maximum principal amount of $10,000,000
(collectively the "New Notes"). Such New Notes shall replace and supersede any
note or notes previously executed by the Borrower pursuant to the Agreement
(collectively, the "Replaced Notes"). Such New Notes evidence the same
indebtedness, and are secured by the same Collateral as the Replaced Notes.

                  SECTION 3. Agreement in Full Force and Effect as Amended.
Except as specifically amended hereby, the Agreement shall remain in full force
and effect. All references to the Agreement shall be deemed to mean the
Agreement as modified hereby. This Amendment shall not constitute a novation of
the Agreement, but shall constitute an amendment thereof. The parties hereto
agree to be bound by the terms and conditions of the Agreement, as amended by
this Agreement, as though such terms and conditions were set forth herein.

                  SECTION 4. Representations. Each of the Borrower and Servicer
represent and warrant as of the date of this Amendment as follows:

                  (i) it is duly incorporated or organized, validly existing and
         in good standing under the laws of its jurisdiction of incorporation or
         organization;

                  (ii) the execution, delivery and performance by it of this
         Amendment are within its powers, have been duly authorized, and do not
         contravene (A) its charter, by-laws, or other organizational documents,
         or (B) any Applicable Law;

                  (iii) no consent, license, permit, approval or authorization
         of, or registration, filing or declaration with any governmental
         authority, is required in connection with the execution, delivery,
         performance, validity or enforceability of this Amendment by or against
         it;

                  (iv) this Amendment has been duly executed and delivered by
         it;

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                  (v) this Amendment constitutes its legal, valid and binding
         obligation enforceable against it in accordance with its terms, except
         as enforceability may be limited by applicable bankruptcy, insolvency,
         reorganization, moratorium or similar laws affecting the enforcement of
         creditors' rights generally or by general principles of equity;

                  (vi) it is not in default under the Agreement; and

                  (vii) there is no Termination Event, Unmatured Termination
         Event, or Servicer Termination Event;

                  SECTION 5. Expenses. In connection with the execution of this
Amendment, the Borrower agrees to pay all reasonable and actual costs and
expenses (including without limitation the reasonable fees and expenses of legal
counsel) of Canadian Imperial Bank of Commerce ("CIBC") and VFCC, respectively,
incurred in connection with the review and negotiation of this Amendment.

                  SECTION 6. Conditions Precedent. The effectiveness of this
Amendment is subject to the following conditions precedent: (i) execution and
delivery to First Union of the New Notes; (ii) delivery to the Deal Agent and
CIBC of a copy of this Amendment duly executed by each of the parties hereto;
(iii) delivery to the Deal Agent and CIBC (in a form acceptable to the Deal
Agent) of a due authorization, execution and enforceability opinion with respect
to this Amendment; and (iv) such other documents, agreements, certification, or
legal opinions as the Deal Agent, may reasonably require.

                  SECTION 7. Miscellaneous.

                  (a) This Amendment may be executed in any number of
counterparts, and by the different parties hereto on the same or separate
counterparts, each of which shall be deemed to be an original instrument but all
of which together shall constitute one and the same agreement.

                  (b) The descriptive headings of the various sections of this
Amendment are inserted for convenience of reference only and shall not be deemed
to affect the meaning or construction of any of the provisions hereof.

                  (c) This Amendment may not be amended or otherwise modified
except as provided in the Agreement.

                  (d) First Union certifies by execution hereof that it is an
Investor with Commitments in excess of 66-2/3% of the Facility Amount, and
therefore is a Required Investor pursuant to the Agreement.

                  (e) The failure or unenforceability of any provision hereof
shall not affect the other provisions of this Amendment.

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                  (f) Whenever the context and construction so require, all
words used in the singular number herein shall be deemed to have been used in
the plural, and vice versa, and the masculine gender shall include the feminine
and neuter and the neuter shall include the masculine and feminine.

                  (g) This Amendment represents the final agreement between the
parties and may not be contradicted by evidence of prior, contemporaneous or
subsequent oral agreements between the parties. There are no unwritten oral
agreements between the parties.

                  (h) THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS
CONFLICT OF LAWS PROVISIONS.

                  [Remainder of Page Intentionally Left Blank]

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<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

THE BORROWER:                             ACS FUNDING TRUST I

                                          By:
                                                 ------------------------------
                                          Name:
                                                 ------------------------------
                                          Title:
                                                 ------------------------------

                                          ACS Funding Trust I
                                          c/o American Capital Strategies, Ltd.
                                          3 Bethesda Metro Center, Suite 860
                                          Bethesda, Maryland 20814
                                          Attention: President
                                          Facsimile No.: (301) 654-6714
                                          Confirmation No.: (301) 951-6122

THE SERVICER:                             AMERICAN CAPITAL STRATEGIES, LTD.

                                          By:
                                                 ------------------------------
                                          Name:
                                                 ------------------------------
                                          Title:
                                                 ------------------------------

                                          American Capital Strategies, Ltd.
                                          3 Bethesda Metro Center, Suite 860
                                          Bethesda, Maryland 20814
                                          Attention: President
                                          Facsimile No.: (301) 654-6714
                                          Confirmation No.: (301 951-6122

                    [SIGNATURES CONTINUED ON FOLLOWING PAGE]

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<PAGE>

THE INVESTORS:                  FIRST UNION NATIONAL BANK

                                By:
                                       -----------------------------------------
                                Name:
                                       -----------------------------------------
                                Title:
                                       -----------------------------------------

                                Commitment: $225,000,000.00

                                First Union National Bank
                                One First Union Center, TW-9
                                Charlotte, North Carolina 28288
                                Attention: Capital Markets Credit Administration
                                Facsimile No.: (704) 374-3254
                                Confirmation No: (704) 374-4001

LENDER:                         VARIABLE FUNDING CAPITAL
                                CORPORATION

                                By First Union Securities, Inc.
                                (successor-in-interest to First Union
                                Capital Markets Corp.), as attorney-in-fact

                                By:
                                       -----------------------------------------
                                Name:
                                       -----------------------------------------
                                Title:
                                       -----------------------------------------

                                Variable Funding Capital Corporation
                                c/o First Union Securities, Inc.
                                One First Union Center, TW-9
                                Charlotte, North Carolina 28288
                                Attention: Conduit Administration
                                Facsimile No.: (704) 383-6036
                                Confirmation No.: (704) 383-9343

                                With a copy to:

                                Lord Securities Corp.
                                2 Wall Street, 19th Floor
                                Attention: Vice President
                                Facsimile No.: (212) 346-9012
                                Confirmation No.: (212) 346-9008

                    [SIGNATURES CONTINUED ON FOLLOWING PAGE]

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<PAGE>

THE BACKUP SERVICER:            NORWEST BANK MINNESOTA,
                                NATIONAL ASSOCIATION

                                By:
                                       -----------------------------------------
                                Name:
                                       -----------------------------------------
                                Title:
                                       -----------------------------------------

                                Norwest Bank Minnesota, National Association
                                Sixth Street and Marquette Avenue
                                Minneapolis, MN  55479-0070
                                Attention:  Corporate Trust Services
                                            Asset-Backed Administration
                                Facsimile No.:  (612) 667-3464
                                Confirmation No.:  (612) 667-8058

THE COLLATERAL CUSTODIAN:       NORWEST BANK MINNESOTA,
                                NATIONAL ASSOCIATION

                                By:
                                       -----------------------------------------
                                Name:
                                       -----------------------------------------
                                Title:
                                       -----------------------------------------

                                Norwest Bank Minnesota, National Association
                                Sixth Street and Marquette Avenue
                                Minneapolis, MN  55479-0070
                                Attention:  Corporate Trust Services
                                            Asset-Backed Administration
                                Facsimile No.: (612) 667-3464
                                Confirmation No.: (612) 667-8058

                  [SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

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<PAGE>

THE DEAL AGENT:                FIRST UNION SECURITIES, INC.
                               (successor-in-interest to First Union
                               Capital Markets Corp.)

                               By:
                                      -----------------------------------------
                               Name:
                                      -----------------------------------------
                               Title:
                                      -----------------------------------------

                               First Union Capital Markets Corp.
                               One First Union Center, TW-9
                               Charlotte, North Carolina 28288
                               Attention:  Conduit Administration
                               Facsimile No.: (704) 383-6036
                               Telephone No.: (704) 383-9343

LENDER AND LIQUIDITY AGENT     FIRST UNION NATIONAL BANK

                               By:
                                      -----------------------------------------
                               Name:
                                      -----------------------------------------
                               Title:
                                      -----------------------------------------

                               First Union National Bank
                               One First Union Center, TW-9
                               Charlotte, North Carolina 28288
                               Attention:  Capital Markets Credit Administration
                               Facsimile No.: (704) 374-3254
                               Telephone No.: (704) 374-4001

                               Lender Commitment: $10,000,000

                    [SIGNATURES CONTINUED ON FOLLOWING PAGE]

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<PAGE>

CONSENTED TO:

CANADIAN IMPERIAL BANK OF COMMERCE

By:
       -----------------------------------------
Name:
       -----------------------------------------
Title:
       -----------------------------------------

Canadian Imperial Bank of Commerce
425 Lexington Avenue, 7th Floor
New York, New York 10017
Attention:  Asset Securitization Group -
            Credit Administration
            Reference:  American Capital Strategies
Facsimile No.: (212) 856-3643
Confirmation No.: (212) 856-3753

                                      S-5
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<PAGE>

                                                                  --------------
                                                                  EXECUTION COPY
                                                                  --------------

                               AMENDMENT NO. 2 TO
                      LOAN FUNDING AND SERVICING AGREEMENT

                  THIS AMENDMENT NO. 2 TO LOAN FUNDING AND SERVICING AGREEMENT,
dated as of September 24, 1999 (this "Amendment"), is entered into by and among
ACS FUNDING TRUST I ("Borrower"), as Borrower, AMERICAN CAPITAL STRATEGIES, LTD.
("Servicer"), as Servicer, certain Investors, VARIABLE FUNDING CAPITAL
CORPORATION ("VFCC"), as a Lender, FIRST UNION CAPITAL MARKETS CORP., as Deal
Agent, FIRST UNION NATIONAL BANK ("First Union"), as a Lender and as Liquidity
Agent and NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, as Collateral Custodian
and the Backup Servicer. Capitalized terms used and not otherwise defined herein
are used as defined in the Agreement (as defined below).

                  WHEREAS, the parties hereto entered into that certain Loan
Funding and Servicing Agreement, dated as of March 31, 1999 (the "Agreement");

                  WHEREAS, the parties amended the Agreement pursuant to
Amendment No. 1 to Loan Funding and Servicing Agreement, dated as of June 30,
1999 (the Agreement as amended shall be referred to herein as the "Agreement");
and

                  WHEREAS, the parties hereto desire to amend the Agreement in
certain respects as provided herein.

                  NOW THEREFORE, in consideration of the premises and the other
mutual covenants contained herein, the parties hereto agree as follows:

                  SECTION 8.  Amendments.

                  (a) The definition of "Commitment Termination Date" in Section
1.1 of the Agreement is hereby amended and restated to read in its entirety as
follows:

                           "Commitment Termination Date: March 31, 2001 or such
                  later date to which the Commitment Termination Date may be
                  extended (if extended) in the sole discretion of VFCC and each
                  Investor in accordance with the terms of Section 2.2(b);
                  provided, however in the event that the Borrower fails to
                  deliver or fails to cause the Servicer to deliver (i) a draft
                  of its Credit and Collection Policy and revised loan grading
                  system in a form satisfactory to the Deal Agent (in its sole
                  discretion) on or before September 30, 1999, or (ii) a final
                  version of its Credit and Collection Policy and revised loan
                  grading system in a form satisfactory to the Deal Agent (in
                  its sole discretion) on or before October 30, 1999, the
                  Commitment Termination Date shall be March 29, 2000."

                                       1

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                                                              Amendment No. 3 to
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<PAGE>

                  (b) Section 6.25(a)(xi) of the Agreement is hereby amended by
deleting the "or" at the end thereof;

                  (c) Section 6.25(a)(xii) of the Agreement is hereby amended
and restated in its entirety as follows:

                           "(xii) on or before September 30, 1999, a draft of
                  its Credit and Collection Policy and revised loan grading
                  system are not delivered to the Deal Agent by the Borrower and
                  the Servicer in a form acceptable to the Deal Agent; or"

                  (d) Section 6.25(a)(xiii) of the Agreement is hereby amended
by adding the following:

                           "(xiii) on or before October 29, 1999, a final
                  version of its Credit and Collection Policy and revised loan
                  grading system are not delivered to the Deal Agent and
                  Borrower and Servicer in a form acceptable to the Deal Agent."

                  SECTION 9. Agreement in Full Force and Effect as Amended.
Except as specifically amended hereby, the Agreement shall remain in full force
and effect. All references to the Agreement shall be deemed to mean the
Agreement as modified hereby. This Amendment shall not constitute a novation of
the Agreement, but shall constitute an amendment thereof. The parties hereto
agree to be bound by the terms and conditions of the Agreement, as amended by
this Agreement, as though such terms and conditions were set forth herein.

                  SECTION 10. Representations. The Borrower and Servicer
represent and warrant that, as of the effective date of this Amendment (i) they
are not in default under the Agreement and (ii) there are no Termination Events,
Unmatured Termination Events or Servicer Termination Events under the Agreement.

                  SECTION 11. Miscellaneous.

                  (a) This Amendment may be executed in any number of
counterparts, and by the different parties hereto on the same or separate
counterparts, each of which shall be deemed to be an original instrument but all
of which together shall constitute one and the same agreement.

                  (b) The descriptive headings of the various sections of this
Amendment are inserted for convenience of reference only and shall not be deemed
to affect the meaning or construction of any of the provisions hereof.

                  (c) This Amendment may not be amended or otherwise modified
except as provided in the Agreement.

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                                                              Amendment No. 2 to
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<PAGE>

                  (d) First Union certifies by execution hereof that it is an
Investor with Commitments in excess of 66-2/3% of the Facility Amount, and
therefore is a Required Investor pursuant to the Agreement.

                  (e) The failure or unenforceability of any provision hereof
shall not affect the other provisions of this Amendment.

                  (f) Whenever the context and construction so require, all
words used in the singular number herein shall be deemed to have been used in
the plural, and vice versa, and the masculine gender shall include the feminine
and neuter and the neuter shall include the masculine and feminine.

                  (g) This Amendment represents the final agreement between the
parties and may not be contradicted by evidence of prior, contemporaneous or
subsequent oral agreements between the parties. There are no unwritten oral
agreements between the parties.

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                                                              Amendment No. 2 to
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<PAGE>

                  (h) THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS
CONFLICT OF LAWS PROVISIONS.

                  [Remainder of Page Intentionally Left Blank]

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                                                              Amendment No. 2 to
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<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

THE BORROWER:                  ACS FUNDING TRUST I

                               By
                                 ---------------------------------
                                  Title:

                               ACS Funding Trust I
                               c/o American Capital Strategies, Ltd.
                               3 Bethesda Metro Center, Suite 860
                               Bethesda, Maryland  20814
                               Attention: President
                               Facsimile No.: (301) 654-6714
                               Confirmation No.: (301) 951-6122

THE SERVICER:                  AMERICAN CAPITAL STRATEGIES, LTD.

                               By
                                 ---------------------------------
                                  Title:

                               American Capital Strategies, Ltd.
                               3 Bethesda Metro Center, Suite 860
                               Bethesda, Maryland  20814
                               Attention: President
                               Facsimile No.: (301) 654-6714
                               Confirmation No.: (301 951-6122

                    [SIGNATURES CONTINUED ON FOLLOWING PAGE]

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<PAGE>

THE INVESTORS:                 FIRST UNION NATIONAL BANK

                               By
                                 ---------------------------------
                                  Title:

                               Commitment:  $125,000,000.00

                               First Union National Bank
                               One First Union Center, TW-9
                               Charlotte, North Carolina 28288
                               Attention:  Capital Markets Credit Administration
                               Facsimile No.: (704) 374-3254
                               Confirmation No: (704) 374-4001

LENDER:                        VARIABLE FUNDING CAPITAL
                               CORPORATION

                               By First Union Capital Markets Corp., as
                                    attorney-in-fact

                               By
                                 ---------------------------------
                                  Title:

                               Variable Funding Capital Corporation
                               c/o First Union Capital Markets Corp.
                               One First Union Center, TW-9
                               Charlotte, North Carolina 28288
                               Attention: Conduit Administration
                               Facsimile No.: (704) 383-6036
                               Confirmation No.: (704) 383-9343

       With a copy to:

                               Lord Securities Corp.
                               2 Wall Street, 19th Floor
                               Attention:  Vice President
                               Facsimile No.: (212) 346-9012
                               Confirmation No.: (212) 346-9008

                    [SIGNATURES CONTINUED ON FOLLOWING PAGE]

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<PAGE>

THE BACKUP SERVICER:           NORWEST BANK MINNESOTA,
                               NATIONAL ASSOCIATION

                               By
                                 ---------------------------------
                                  Title:

                               Norwest Bank Minnesota, National Association
                               Sixth Street and Marquette Avenue
                               MAC N9311-161
                               Minneapolis, MN 55479
                               Attention: Corporate Trust Services
                                          Asset-Backed Administration
                               Facsimile No.: (612) 667-3464
                               Confirmation No.: (612) 667-8058

THE COLLATERAL CUSTODIAN:      NORWEST BANK MINNESOTA,
                               NATIONAL ASSOCIATION

                               By
                                 ---------------------------------
                                  Title:

                               Norwest Bank Minnesota, National Association
                               Sixth Street and Marquette Avenue
                               MAC N9311-161
                               Minneapolis, MN 55479
                               Attention: Corporate Trust Services
                                          Asset-Backed Administration
                               Facsimile No.: (612) 667-3464
                               Confirmation No.: (612) 667-8058

                  [SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

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<PAGE>

THE DEAL AGENT:                           FIRST UNION CAPITAL MARKETS CORP.

                               By
                                 ---------------------------------
                                  Title:

                               First Union Capital Markets Corp.
                               One First Union Center, TW-9
                               Charlotte, North Carolina 28288
                               Attention:  Conduit Administration
                               Facsimile No.: (704) 383-6036
                               Telephone No.: (704) 383-9343

LENDER AND LIQUIDITY AGENT     FIRST UNION NATIONAL BANK

                               By
                                 ---------------------------------
                                  Title:

                               First Union National Bank
                               One First Union Center, TW-9
                               Charlotte, North Carolina 28288
                               Attention:  Capital Markets Credit Administration
                               Facsimile No.: (704) 374-3254
                               Telephone No.: (704) 374-4001

                               Lender Commitment: $30,000,000 until the
                               Swingline Reduction Date, and then $10,000,000
                               thereafter.

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                                                              Amendment No. 2 to
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<PAGE>

                               Consented and Agreed to this 24thday of
                               September, 1999:

                               CANADIAN IMPERIAL BANK OF COMMERCE

                               By
                                 ---------------------------------
                                  Title:

                               Canadian Imperial Bank of Commerce
                               425 Lexington Avenue, 7th Floor
                               New York, New York 10017
                               Attention: Asset Securitization Group-Credit
                                          Administration-American Capital
                                          Strategies
                               Facsimile No.: (212) 856-3643
                               Confirmation No.: (212) 856-3753

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                                       S-5
                                                              Amendment No. 2 to
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                                                   (American Capital Strategies)

<PAGE>

                                                                  --------------
                                                                  EXECUTION COPY
                                                                  --------------

                               AMENDMENT NO. 1 TO
                      LOAN FUNDING AND SERVICING AGREEMENT

                  THIS AMENDMENT NO. 1 TO LOAN FUNDING AND SERVICING AGREEMENT,
dated as of June 30, 1999 (this "Amendment"), is entered into by and among ACS
FUNDING TRUST I ("Borrower"), as Borrower, AMERICAN CAPITAL STRATEGIES, LTD.
("Servicer"), as Servicer, certain Investors, VARIABLE FUNDING CAPITAL
CORPORATION ("VFCC"), as a Lender, FIRST UNION CAPITAL MARKETS CORP., as Deal
Agent, FIRST UNION NATIONAL BANK ("First Union"), as a Lender and as Liquidity
Agent and NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, as Collateral Custodian
and the Backup Servicer. Capitalized terms used and not otherwise defined herein
are used as defined in the Agreement (as defined below).

                  WHEREAS, the parties hereto entered into that certain Loan
Funding and Servicing Agreement, dated as of March 31, 1999 (the "Agreement");

                  WHEREAS, the parties hereto desire to amend the Agreement in
certain respects as provided herein;

                  NOW THEREFORE, in consideration of the premises and the other
mutual covenants contained herein, the parties hereto agree as follows:

                  SECTION 12. Amendments.

                  (a) The definition of "Concentration Limits" contained in
Section 1.1 of the Agreement is hereby amended and restated to read in its
entirety as follows:

                           "Concentration Limits: On any date of determination,
                  each of the following (calculated on the basis of Aggregate
                  Outstanding Loan Balance):

                           (a) the sum of the Outstanding Loan Balances of
                  Eligible Loans the Obligors of which are residents of any one
                  state shall not exceed 35%;

                           (b) the sum of the Outstanding Loan Balances of
                  Eligible Loans the Obligors of which are in the same Industry
                  shall not exceed 10%;

                           (c) the Outstanding Loan Balance of any Eligible Loan
                  shall not exceed the Large Loan Limit;

                           (d) the sum of the Outstanding Loan Balances of
                  Eligible Loans the Obligors of which are Grade 2 Obligors
                  shall not exceed 10%;

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                                                              Amendment No. 1 to
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<PAGE>

                           (e) the sum of the Outstanding Loan Balances of
                  Eligible Loans that have interest due and payable monthly
                  shall not be less than 50%;

                           (f) the sum of the Outstanding Loan Balances of
                  Eligible Loans that are secured by a security interest in all
                  assets of the related Obligor shall not be less than 75%;

                           (g) the sum of the Outstanding Loan Balance of
                  Eligible Loans that are PIK Loans shall not exceed 30%; and

                           (h) with respect to each PIK Loan included as a part
                  of the Collateral, at least a portion of the monthly or
                  quarterly interest that is due under the PIK Loan must be
                  payable by Obligor thereof in cash or such Obligor shall have
                  another Loan included as part of the Collateral that pays
                  current monthly or quarterly interest in cash."

                  (b) The definition of "Facility Amount" contained in Section
1.1 of the Agreement is hereby amended and restated to read in its entirety as
follows:

                           "Facility Amount: At any time, $125,000,000.00;
                  provided, however, on or after the Termination Date, the
                  Facility Amount shall be zero."

                  (c) Section (ii) of the definition of "Grade 1 Obligor"
contained in Section 1.1 of the Agreement is hereby amended and restated to read
in its entirety as follows:

                           "(ii) an Obligor designated by the Servicer, prior to
                  delivery of the Credit and Collection Policy, as a `Grade 1
                  Obligor' with the prior written consent of the Deal Agent."

                  (d) Section (ii) of the definition of "Grade 2 Obligor"
contained in Section 1.1 of the Agreement is hereby amended and restated to read
in its entirety as follows:

                           "(ii) an Obligor designated by the Servicer, prior to
                  delivery of the Credit and Collection Policy, as a `Grade 2
                  Obligor' with the prior written consent of the Deal Agent."

                  (e) Section (ii) of the definition of "Grade 3 Obligor"
contained in Section 1.1 of the Agreement is hereby amended and restated to read
in its entirety as follows:

                           "(ii) an Obligor designated by the Servicer, prior to
                  delivery of the Credit and Collection Policy, as a `Grade 3
                  Obligor' with the prior written consent of the Deal Agent."

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                                                              Amendment No. 1 to
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<PAGE>

                  (f) Section (ii) of the definition of "Grade 4 Obligor"
contained in Section 1.1 of the Agreement is hereby amended and restated to read
in its entirety as follows:

                           "(ii) an Obligor designated by the Servicer, prior to
                  delivery of the Credit and Collection Policy, as a `Grade 4
                  Obligor' with the prior written consent of the Deal Agent."

                  (g) The definition of "Large Loan Limit" contained in Section
1.1 of the Agreement is hereby amended and restated to read in its entirety as
follows:

                           "Large Loan Limit: (i) $10,000,000.00, provided the
                  Aggregate Outstanding Loan Balance is less than
                  $200,000,000.00, (ii) $13,000,000.00, provided by the
                  Aggregate Outstanding Loan Balance is at least $200,000,000.00
                  but less than $300,000,000.00, and (iii) $15,000,000.00,
                  provided the Aggregate Outstanding Loan Balance is at least
                  $300,000,000.00.

                  (h) The first line of Section 2.2(d) of the Agreement is
hereby amended and restated to read in its entirety as follows:

                           "No later than 12:00 p.m. (New York City time) on the
proposed Funding Date, the".

                  (i) The second sentence of Section 2.5(a) of the Agreement is
hereby amended and restated in its entirety as follows:

                           "The Notes shall be dated the Closing Date and shall
                  be in a maximum principal amount equal to (i) $125,000,000 in
                  the case of VFCC Note, (ii) $125,000,000 in the case of the
                  Investor Note, and (iii) (a) $30,000,000 from the date of this
                  Amendment through and including July 30, 1999 (the "Swingline
                  Reduction Date") and (b) $10,000,000 after July 30, 1999, in
                  the case of the FUNB Note; provided, however, that anything to
                  the contrary notwithstanding, the indebtedness of the Borrower
                  evidenced by the Notes shall not in the aggregate exceed the
                  Facility Amount; provided, further, on the Swingline Reduction
                  Date, the Borrower shall reduce the amount of FUNB Advances
                  outstanding to an amount not to exceed the maximum principal
                  amount of the FUNB Note and shall execute and deliver to First
                  Union a second amended, restated and substituted FUNB Note in
                  the maximum principal amount of $10,000,000."

                  (j) Section 3.2 of the Agreement is hereby amended as follows:

                           (i) Section 3.2(a)(ii) is hereby amended and restated
                  to read in its entirety as follows:

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                                                              Amendment No. 1 to
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<PAGE>

                           "(ii) No event has occurred, or would result from
                  such Advance or from the application of proceeds therefrom,
                  that constitutes a Termination Event or an Unmatured
                  Termination Event;";

                           (ii) Section 3.2(g) is amended by deleting the word
                  "and" at the end thereof;

                           (iii) Section 3.2(h) is amended by deleting the
                  period at the end thereof and substituting in its place the
                  following: "; and"; and

                           (iv) The following new Section 3.2(i) is hereby added
                  to the end of Section 3.2:

                           "(i) After giving effect to the Advance or
                           reinvestment of Available Collections, the weighted
                           average life of the Aggregate Outstanding Loan
                           Balance will not exceed eight (8) years."

                  (k) The second sentence of Section 4.1(v) of the Agreement is
hereby amended and restated to read in its entirety as follows:

                           "The Deal Agent, as agent for the Secured Parties,
                  has a first priority perfected security interest in the
                  Collateral."

                  (l) The first sentence of Section 6.9(g) is hereby amended and
restated to read in its entirety as follows:

                           "The Servicer will (a) comply in all material
                  respects with the Credit and Collection Policy in regard to
                  each Loan and (b) furnish to the Deal Agent and any Lender,
                  prior to its effective date, prompt notice of any change in
                  the Credit and Collection Policy."

                  (m) Section 7.1(n) of the Agreement is hereby amended and
restated to read in its entirety as follows:

                           "(n) the Borrower or the Servicer agrees or consents
                  to, or otherwise permits to occur, any amendment,
                  modification, change, supplement or recession of or to the
                  Credit and Collection Policy in whole or in part that could
                  have a material adverse effect upon the Loans or interest of
                  any Lender, without the prior written consent of the Deal
                  Agent and the other Lenders; or".

                  (n) Section 9.6 of the Agreement is hereby amended by deleting
therefrom all references to "VFCC."

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                                                              Amendment No. 1 to
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<PAGE>

                  (o) The following new Section 9.9 is added to the end of
Section 9:

                           "The Deal Agent shall provide to Canadian Imperial
                  Bank of Commerce a copy of the Monthly Report and the credit
                  report and transaction summary referenced to in Section 2.2(c)
                  within two (2) Business Days following the Deal Agent's
                  receipt of same."

                  (p) The Commitment of First Union National Bank as an Investor
set forth on the signature pages of the Agreement is hereby amended and restated
to be "$125,000,000."

                  (q) The Commitment of First Union National Bank as a Lender
set forth on the signature pages of the Agreement is hereby amended and restated
to be "$30,000,000 until the Swingline Reduction Date, and $10,000,000
thereafter."

                  SECTION 13. Increase in Facility Amount and Amount of Notes.
Effective on the date of this Amendment, the Facility Amount shall be increased
to $125,000,000; provided, that First Union shall first have received executed
versions of the Notes referenced in clauses (i), (ii) and (iii)(a) of the
succeeding sentence. In connection with such increase, the Borrower agrees to
execute and deliver to First Union, on behalf of the holders of the Notes, (i)
an amended, restated and substituted VFCC Note in the maximum principal amount
of $125,000,000, (ii) an amended, restated and substituted FUNB Note in the
maximum principal amount of $125,000,000, and (iii) (a) an amended, restated and
substituted FUNB Note in the maximum principal amount of $30,000,000, and (b) on
the Swingline Reduction Date, a second amended and restated FUNB Note in the
maximum principal amount of $10,000,000 (collectively the "New Notes"). Such New
Notes shall replace and supersede any note or notes previously executed by the
Borrower pursuant to the Agreement (collectively, the "Replaced Notes"). Such
New Notes evidence the same indebtedness, and are secured by the same Collateral
as the Replaced Notes.

                  SECTION 14. Agreement in Full Force and Effect as Amended.
Except as specifically amended hereby, the Agreement shall remain in full force
and effect. All references to the Agreement shall be deemed to mean the
Agreement as modified hereby. This Amendment shall not constitute a novation of
the Agreement, but shall constitute an amendment thereof. The parties hereto
agree to be bound by the terms and conditions of the Agreement, as amended by
this Agreement, as though such terms and conditions were set forth herein.

                  SECTION 15. Representations. The Borrower and Servicer
represent and warrant that, as of the effective date of this Amendment (i) they
are not in default under the Agreement and (ii) there are no Termination Events,
Unmatured Termination Events or Servicer Termination Events under the Agreement.

                  SECTION 16. Expenses. In connection with the execution of this
Amendment, the Borrower agrees to pay all reasonable and actual costs and
expenses (including without

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                                                              Amendment No. 1 to
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<PAGE>

limitation the reasonable fees and expenses of legal counsel) of CIBC and First
Union, respectively, incurred in connection with the negotiation and preparation
of the Participation Agreement, dated as of even date with this Amendment,
between CIBC and First Union.

                  SECTION 17. Miscellaneous.

                  (a) This Amendment may be executed in any number of
counterparts, and by the different parties hereto on the same or separate
counterparts, each of which shall be deemed to be an original instrument but all
of which together shall constitute one and the same agreement.

                  (b) The descriptive headings of the various sections of this
Amendment are inserted for convenience of reference only and shall not be deemed
to affect the meaning or construction of any of the provisions hereof.

                  (c) This Amendment may not be amended or otherwise modified
except as provided in the Agreement.

                  (d) First Union certifies by execution hereof that it is an
Investor with Commitments in excess of 66-2/3% of the Facility Amount, and
therefore is a Required Investor pursuant to the Agreement.

                  (e) The failure or unenforceability of any provision hereof
shall not affect the other provisions of this Amendment.

                  (f) Whenever the context and construction so require, all
words used in the singular number herein shall be deemed to have been used in
the plural, and vice versa, and the masculine gender shall include the feminine
and neuter and the neuter shall include the masculine and feminine.

                  (g) This Amendment represents the final agreement between the
parties and may not be contradicted by evidence of prior, contemporaneous or
subsequent oral agreements between the parties. There are no unwritten oral
agreements between the parties.

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                                                              Amendment No. 1 to
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<PAGE>

                  (h) THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS
CONFLICT OF LAWS PROVISIONS.

                  [Remainder of Page Intentionally Left Blank]

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                                                              Amendment No. 1 to
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<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

THE BORROWER:                  ACS FUNDING TRUST I

                               By
                                 ---------------------------------
                                  Title:

                               ACS Funding Trust I
                               c/o American Capital Strategies, Ltd.
                               3 Bethesda Metro Center, Suite 860
                               Bethesda, Maryland  20814
                               Attention: President
                               Facsimile No.: (301) 654-6714
                               Confirmation No.: (301) 951-6122

THE SERVICER:                  AMERICAN CAPITAL STRATEGIES, LTD.

                               By
                                 ---------------------------------
                                  Title:

                               American Capital Strategies, Ltd.
                               3 Bethesda Metro Center, Suite 860
                               Bethesda, Maryland  20814
                               Attention: President
                               Facsimile No.: (301) 654-6714
                               Confirmation No.: (301 951-6122

                    [SIGNATURES CONTINUED ON FOLLOWING PAGE]

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<PAGE>

THE INVESTORS:                 FIRST UNION NATIONAL BANK

                               By
                                 ---------------------------------
                                  Title:

                               Commitment:  $125,000,000.00

                               First Union National Bank
                               One First Union Center, TW-9
                               Charlotte, North Carolina 28288
                               Attention: Capital Markets Credit Administration
                               Facsimile No.: (704) 374-3254
                               Confirmation No: (704) 374-4001

LENDER:                        VARIABLE FUNDING CAPITAL
                               CORPORATION

                               By First Union Capital Markets Corp., as
                                    attorney-in-fact

                               By
                                 ---------------------------------
                                  Title:

                               Variable Funding Capital Corporation
                               c/o First Union Capital Markets Corp.
                               One First Union Center, TW-9
                               Charlotte, North Carolina 28288
                               Attention:  Conduit Administration
                               Facsimile No.: (704) 383-6036
                               Confirmation No.: (704) 383-9343

       With a copy to:

                               Lord Securities Corp.
                               2 Wall Street, 19th Floor
                               Attention:  Vice President
                               Facsimile No.: (212) 346-9012
                               Confirmation No.: (212) 346-9008

                    [SIGNATURES CONTINUED ON FOLLOWING PAGE]

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<PAGE>

THE BACKUP SERVICER:           NORWEST BANK MINNESOTA,
                               NATIONAL ASSOCIATION

                               By
                                 ---------------------------------
                                  Title:

                               Norwest Bank Minnesota, National Association
                               Sixth Street and Marquette Avenue
                               Minneapolis, MN  55479-0070
                               Attention: Corporate Trust Services
                                          Asset-Backed Administration
                               Facsimile No.: (612) 667-3464
                               Confirmation No.: (612) 667-8058

THE COLLATERAL CUSTODIAN:      NORWEST BANK MINNESOTA,
                               NATIONAL ASSOCIATION

                               By
                                 ---------------------------------
                                  Title:

                               Norwest Bank Minnesota, National Association
                               Sixth Street and Marquette Avenue
                               Minneapolis, MN 55479-0070
                               Attention: Corporate Trust Services
                                          Asset-Backed Administration
                               Facsimile No.: (612) 667-3464
                               Confirmation No.: (612) 667-8058

                  [SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

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<PAGE>

THE DEAL AGENT:                FIRST UNION CAPITAL MARKETS CORP.

                               By
                                 ---------------------------------
                                  Title:

                               First Union Capital Markets Corp.
                               One First Union Center, TW-9
                               Charlotte, North Carolina 28288
                               Attention:  Conduit Administration
                               Facsimile No.: (704) 383-6036
                               Telephone No.: (704) 383-9343

LENDER AND LIQUIDITY AGENT     FIRST UNION NATIONAL BANK

                               By
                                 ---------------------------------
                                  Title:

                               First Union National Bank
                               One First Union Center, TW-9
                               Charlotte, North Carolina 28288
                               Attention:  Capital Markets Credit Administration
                               Facsimile No.: (704) 374-3254
                               Telephone No.: (704) 374-4001

                               Lender Commitment: $30,000,000 until the
                               Swingline Reduction Date, and then $10,000,000
                               thereafter.

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                                       S-4
                                                              Amendment No. 1 to
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