Document:

Exhibit 10.6

 Exhibit 10.6 
 AMERICAN CAPITAL AGENCY CORP. 
 EQUITY INCENTIVE PLAN FOR INDEPENDENT DIRECTORS 
 RESTRICTED STOCK AGREEMENT 
 This
Restricted Stock Agreement (this “Agreement”) is executed and delivered as of May     , 2008 (the “Grant Date”) by and between American Capital Agency Corp., a Delaware corporation (the
“Company”) and             , a director of the Company (the “Grantee”). The Grantee and the Company hereby agree as follows: 
  

	1.	Grant. Pursuant to the American Capital Agency Corp. Equity Incentive Plan for Independent Directors (the “Plan”), the Company hereby grants to the Grantee
             shares of the Company’s common stock, $0.01 par value (the “Shares”). 

  

	2.	Restrictions. Subject to Section 3 hereof, the Shares may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of and shall be subject to the
risk of forfeiture described in Section 4 hereof (the “Restrictions”) from the Grant Date until (i)              with respect to one-third of the Shares,
(ii)              with respect to an additional one-third of the Shares, and (iii)              with
respect to the remaining one-third of the Shares. 

  

	3.	Lapse of Restrictions. 

  

	 	(a)	Unless the Restrictions shall have been terminated pursuant to clauses (b), (c) or (d) of this Section 3, the Restrictions shall lapse with respect to one-third of
the Shares on             . 

  

	 	(b)	In the event of the Grantee’s death or disability, the Restrictions shall lapse with respect to all Shares subject to the Restrictions on the date of the Grantee’s death
or the occurrence of the Grantee’s disability. 

  

	 	(c)	In the event that the Grantee’s service as a director of the Company is terminated other than for any of the reasons set forth in Section 4 hereof, the Restrictions shall
lapse with respect to all Shares subject to the Restrictions on the date of such termination. 

  

	 	(d)	Upon a Change of Control (as defined in the Plan), the Restrictions shall lapse with respect to all Shares subject to the Restrictions on the date of the Change of Control.

  

	4.	Forfeiture Events. If (a) the Grantee terminates his service as a director of the Company, except for a termination due to the Grantee’s death or disability, or
(b) the Grantee’s service as a director is terminated pursuant to a Removal for Cause (as defined in the Plan), all Shares subject to the Restrictions as of the date of any such termination shall be forfeited on such date.

	5.	Certain Tax Matters. 

  

	 	(a)	Tax Consequences. The Grantee acknowledges that it shall recognize ordinary income at the times the Restrictions lapse with respect to the Shares in an amount equal to the
fair market value of the Shares on each such date and the Company shall be required to collect all applicable withholding taxes with respect to such income. The obligations of the Company under the Plan are conditioned on the Grantee making
arrangements for the payment of any such taxes. Notwithstanding anything herein to the contrary, the release of the Shares from the Restrictions shall be conditioned upon the Grantee making adequate provision for federal, state or other tax
withholding obligations, if any, which arise upon such release (unless the Section 83(b) election described in Section 5(b) hereof has been filed), whether by withholding, direct payment to the Company, or otherwise.

  

	 	(b)	Section 83(b) Election. The Grantee acknowledges that he has been informed that he may file with the Internal Revenue Service within 30 days of the Grant Date an
election, pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), to be taxed currently on the fair market value of the Shares on the Grant Date. The Grantee acknowledges that it is the Grantee’s
sole responsibility to file timely the election under Section 83(b) of the Code, even if the Grantee requests the Company or its representative to make this filing on the Grantee’s behalf. 

  

	 	(c)	No Tax Advice. By signing this Agreement, the Grantee represents that he has reviewed with his own tax advisors the federal, state, local and foreign tax consequences of the
transactions contemplated by this Agreement and that he is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Grantee understands and agrees that he (and not the Company) shall be
responsible for any tax liability that may arise as a result of the transactions contemplated by this Agreement. 

  

	6.	Restrictive Legend. The certificate representing the Shares subject to the Restrictions shall bear the following legend: 

 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS UPON TRANSFER SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE
STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE COMPANY. 
  

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 The Grantee shall be entitled to have such legend removed from such certificate upon the lapse of the
Restrictions on the Shares. 
  

	7.	Entire Agreement; Plan Controls. This Agreement and the Plan contain the entire understanding and agreement of the parties concerning the subject matter hereof, and supersede
all earlier negotiations and understandings, written or oral, between the parties with respect thereto. This Agreement is made under and subject to the provisions of the Plan, and all of the provisions of the Plan are hereby incorporated by
reference into this Agreement. In the event of any conflict between the provisions of this Agreement and the provisions of the Plan, the provisions of the Plan shall govern. By signing this Agreement, the Grantee confirms that he has received a copy
of the Plan and has had an opportunity to review the contents thereof. 

  

	8.	Miscellaneous. 

 (a) Notices. Any notice
required or permitted under this Agreement shall be deemed given when delivered personally, or when deposited in a United States Post Office, postage prepaid, addressed, as appropriate, to the Grantee either at his address herein below set forth or
such other address as he may designate in writing to the Company, or to the Company to the attention of the Secretary, at the Company’s address or such other address as the Company may designate in writing to the Grantee. 
 (b) Failure to Enforce Not a Waiver. The failure of the Company or the Grantee to enforce at any time any provision of this Agreement shall in no
way be construed to be a waiver of such provision or of any other provision hereof. 
 (c) Governing Law. This Agreement shall be
governed by and construed according to the laws of the State of Delaware without giving effect to the choice of law principles thereof. 
 (d)
Amendments. This Agreement may be amended or modified at any time by an instrument in writing signed by the parties. 
 (e)
Agreement Not a Contract of Employment. Neither this Agreement nor any other action taken in connection herewith shall constitute or be evidence of any agreement or understanding, express or implied, that the Grantee is an employee of the
Company or any subsidiary of the Company. 
 (f) Captions. The captions and headings of the sections and subsections of this Agreement
are included for convenience only and are not to be considered in construing or interpreting this Agreement. 
 (g) Counterparts. This
Agreement may be executed in counterparts, each of which when signed by the Company or the Grantee will be deemed an original and all of which together will be deemed the same agreement. 
  

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 (h) Assignment. The Company may assign its rights and delegate its duties under this Agreement. If
any such assignment or delegation requires consent of any state securities authorities, the parties agree to cooperate in requesting such consent. This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to
the restrictions on transfer herein set forth, be binding upon the Grantee, his heirs, executors, administrators, successors and assigns. 
 (i) Severability. This Agreement will be severable, and the invalidity or unenforceability of any term or provision hereof will not affect the validity or enforceability of this Agreement or of any other term or provision hereof.
Furthermore, in lieu of any invalid or unenforceable term or provision, the parties intend that there be added as a part of this Agreement a valid and enforceable provision as similar in terms to such invalid or unenforceable provision as may be
possible. 
 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly authorized representative and the Grantee has
hereunto set his hand as of the Grant Date. 
  

			
	AMERICAN CAPITAL AGENCY CORP.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	GRANTEE
	
	  

	Name:	 	

  

 4Exhibit 10.7

 Exhibit 10.7 
 STOCK PURCHASE AGREEMENT 
 This STOCK PURCHASE AGREEMENT (this “Agreement”) is dated
as of May     , 2008, by and among American Capital Agency Corp., a Delaware corporation (the “Issuer”) and American Capital Strategies, Ltd., a Delaware corporation (the “Purchaser”).

 W I T N E S S E T H: 
 WHEREAS, the Issuer is entering into an underwriting agreement on the date hereof (the “Underwriting Agreement”), a copy of which is attached hereto as Annex I, with the underwriters named therein (the
“Underwriters”) pursuant to which the Issuer will, subject to the satisfaction of the terms and conditions set forth in the Underwriting Agreement, issue and sell to the Underwriters of
                     shares (the “IPO Shares”) of common stock, par value $0.01 per share, of the Issuer (the “Common
Stock”) in connection with an offering to the public (the “IPO”) of the IPO Shares for $20.00 per share (the “IPO Price”); and 
 WHEREAS, subject to the consummation of the Issuer’s agreement to issue and sell the IPO Shares to the Underwriters upon the satisfaction of the terms and conditions set forth in the Underwriting Agreement, the
Purchaser desires to purchase                      shares of Common Stock at the IPO Price and the Issuer desires to issue and sell such shares to
the Purchaser. 
 NOW THEREFORE, in consideration of the premises and of the mutual agreements, covenants and provisions herein contained and
for good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE I

 PURCHASE AND SALE 
 1.1
Purchase and Sale of Subject Shares. Subject to (a) the terms and conditions set forth in this Agreement and (b) the consummation of the Issuer’s agreement to issue and sell the IPO Shares to the Underwriters upon the
satisfaction of the terms and conditions set forth in the Underwriting Agreement (the “IPO Closing”), the Issuer agrees to issue the Purchaser
                     shares of Common Stock (the “Subject Shares”), and the Purchaser agrees to purchase the Subject Shares for $
                     (the “Subject Shares Purchase Price”). 
 1.2 Closing. Subject to the terms and conditions of this Agreement and the occurrence of the IPO Closing, the closing of the purchase and sale of
the Subject Shares (the “Closing”) shall take place on the date of the IPO Closing at the offices of counsel to the Issuer, Skadden, Arps, Slate, Meagher & Flom LLP located at Four Times Square, New York, New York 10036, or
at such other place as the applicable parties to such closing shall agree in writing. 
  

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 1.3 Delivery at Closing. At the Closing, (a) Purchase shall deliver to Issuer the Subject
Shares Purchase Price by wire transfer of immediately available funds to an account designated by the Issuer in writing by 10:00 a.m., and (b) the Issuer shall deliver certificates representing the Subject Shares to the Purchaser. 

ARTICLE II 
 REPRESENTATIONS AND WARRANTIES
OF THE ISSUER 
 The Issuer represents and warrants to the Purchaser as follows: 
 2.1 Formation and Good Standing. The Issuer is a corporation duly incorporated, validly existing and in good standing under the jurisdiction and
laws of the State of Delaware. 
 2.2 Authorization and Validity of Agreements. The Issuer has all requisite power and authority to
execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement, the performance by the Issuer of its obligations hereunder and the
consummation of the transactions contemplated hereby have been duly authorized by all requisite corporate action of the Issuer. This Agreement constitutes a legal, valid and binding obligation of the Issuer, enforceable against the Issuer in
accordance with its respective terms. 
 2.3 No Conflicts; Consents. The execution, delivery and performance of this Agreement by the
Issuer and the consummation by the Issuer of the transactions contemplated hereby do not and will not conflict with, contravene, result in a violation or breach of or default under (with or without the giving of notice or the lapse of time, or
both), permit any party to terminate, amend or accelerate the provisions of, or result in the imposition of any claim, lien, pledge, deed of trust, option, charge, security interest, hypothecation, encumbrance, right of first offer, voting trust,
proxy, right of third parties or other restriction or limitation of any nature whatsoever (each, a “Lien”), or any obligation to create any Lien, upon any of the property or assets of the Issuer under (a) any contract,
agreement, indenture, letter of credit, mortgage, security agreement, pledge agreement, deed of trust, bond, note, guarantee, surety obligation, warranty, license, franchise, permit, power of attorney, lease, instrument or other agreement (each, a
“Contract”) to which the Issuer is a party or by which any of its property or assets may be bound or (b) any provision of the organizational document of the Issuer. 
  

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 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER 
 The Purchaser represents and warrants to the Issuer as
follows: 
 3.1 Formation and Good Standing. The Purchaser is a corporation duly incorporated, validly existing and in good standing
under the jurisdiction and laws of the State of Delaware. 
 3.2 Authorization and Validity of Agreements. The Purchaser has all
requisite power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement, the performance by the Purchaser of its
obligations hereunder and the consummation of the transactions contemplated hereby have been duly authorized by all requisite corporate action of the Purchaser. This Agreement constitutes a legal, valid and binding obligation of the Purchaser,
enforceable against the Purchaser in accordance with its respective terms. 
 3.3 No Conflicts; Consents. The execution, delivery and
performance of this Agreement by the Purchaser and the consummation by the Purchaser of the transactions contemplated hereby do not and will not conflict with, contravene, result in a violation or breach of or default under (with or without the
giving of notice or the lapse of time, or both), permit any party to terminate, amend or accelerate the provisions of, or result in the imposition of any Lien (or any obligation to create any Lien) upon any of the property or assets of the Purchaser
under (a) any Contract to which the Purchaser is a party or by which any of its property or assets may be bound or (b) any provision of the organizational document of the Purchaser. 
 3.4 Investment Purpose; Accredited Purchaser; Access to Information. 
 (a) The Purchaser hereby acknowledges that the Subject Shares have not been registered under the Securities Act of 1933, as amended (the
“Securities Act”) and may not be offered or sold except pursuant to registration or to an exemption from the registration requirements of the Securities Act and that the certificates evidencing the Subject Shares will bear a legend
to that effect. The Subject Shares to be acquired by the Purchaser pursuant to this Agreement are being acquired for its own account and with no intention of distributing or reselling the Subject Shares or any part thereof in any transaction that
would be in violation of the securities laws of the United States, any state of the United States or any foreign jurisdiction. The Purchaser further agrees that it has not entered and prior to the Closing will not enter into any Contract with
respect to the distribution, sale, transfer or delivery of the Subject Shares. 
 (b) The Purchaser is an “accredited
investor” as such term is defined in Section 2(15) of the Securities Act and within the meaning of Rule 501 of Regulation D under the Securities Act, as presently in effect. 
  

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 (c) The Purchaser is sufficiently experienced in financial and business matters to be
capable of evaluating the merits and risks involved in purchasing the Subject Shares and to make an informed decision relating thereto. The Purchaser has been furnished with the materials relating to the business, operations, financial condition,
assets, liabilities of the Issuer and other matters relevant to Purchaser’s investment in the Subject Shares, which have been requested by the Purchaser. The Purchaser has had adequate opportunity to ask questions of, and receive answers from,
the officers, employees, agents, accountants, and representatives of the Issuer concerning the business, operations, financial condition, assets, liabilities of the Issuer and all other matters relevant to its investment in the Subject Shares.

 ARTICLE IV 
 COVENANTS

 4.1 Non-Sponsorship Covenant. Each of the parties hereto acknowledges that American Capital Agency Management, LLC (the
“Manager”) is a Purchaser Affiliate (as defined below) and will manage and advise the Issuer pursuant to that certain Management Agreement to be entered into by the Issuer and the Manager upon consummation of the IPO (the
“Management Agreement”). Subject to the occurrence of the IPO Closing and the Closing, the Purchaser hereby agrees that it will not sponsor an investment vehicle that invests predominantly in Agency Securities (as defined below)
which represent an undivided beneficial ownership interest in a group or pool of one or more mortgages, or “whole pool” Agency Securities (other than the Issuer) for so long as (1) the Manager or another Purchaser Affiliate serves as
the Company’s manager pursuant to the Management Agreement and (2) the Manager is a Purchaser Affiliate. For the purpose of this Article IV, (a) “Agency Securities” means single-family residential mortgage
pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by (i) a U.S. Government agency such as the Government National Mortgage Association, or (ii) a U.S.
Government-sponsored entity such as the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, and (b) “Purchaser Affiliate” is any natural person or legal entity which is directly or indirectly
controlling, controlled by, or under common control with the Purchaser. 
 4.2 Registration Rights. Subject to the occurrence of the
IPO Closing and the Closing, each of the parties hereto covenants to enter into that certain Registration Rights Agreement, a copy of which is attached hereto as Annex II, with respect to the Subject Shares. 
 4.3 Further Assurances. Each party hereto shall execute and deliver such instruments and take such other actions prior to or after the Closing as
any other party may reasonably request in order to carry out the intent of this Agreement, including without limitation obtaining any required consents or approvals from third parties. 
  

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 ARTICLE V 
 CONDITIONS PRECEDENT TO THE OBLIGATIONS 
 5.1 Mutual Conditions. The obligations of the Issuer and
the Purchaser to consummate the purchase and sale of the Subject Shares contemplated hereby are subject to the following conditions: (a) the occurrence of the IPO Closing, (b) the absence of any order, decree, judgment or injunction of a
court of competent jurisdiction or other governmental or regulatory authority precluding the consummation of the purchase and sale of the Subject Shares contemplated hereby, and (c) there shall not have been any action taken or any statute,
rule or regulation enacted, promulgated or deemed applicable to, the purchase and sale of the Subject Shares contemplated hereby by any court, governmental agency or regulatory or administrative authority that makes consummation of such transactions
illegal. 
 5.2 Conditions to the Obligations of the Issuer. The obligations of the Issuer under this Agreement to consummate the
purchase and sale of the Subject Shares contemplated hereby are subject to the fulfillment (or waiver by the Issuer) of the conditions that (a) the representations and warranties of the Purchaser contained in or made pursuant to this Agreement
shall be deemed to have been made again at and as of the Closing and shall then be true and accurate, and (b) the Purchaser shall have performed and complied in all material respects with all agreements required by this Agreement to be
performed or complied with by it prior to or at the Closing. 
 5.3 Conditions to the Obligations of the Purchaser. The obligations of
the Purchaser under this Agreement to consummate the purchase and sale of the Subject Shares contemplated hereby are subject to the fulfillment (or waiver in writing by the Purchaser) of the condition that (a) all representations and warranties
of the Issuer shall be deemed to have been made again at and as of the Closing and shall then be true and accurate, and (b) the Issuer shall have performed and complied in all material respects with all agreements required by this Agreement to
be performed or complied with by it prior to or at the Closing. 
 ARTICLE VI 
 MISCELLANEOUS 
 6.1 Termination. This Agreement shall be terminated prior to the
consummation of the transactions contemplated hereby if, prior to the consummation of the IPO Closing, the Underwriting Agreement is terminated pursuant to its terms. In the event of any termination of this Agreement, this Agreement shall become
void and have no effect, without any liability to any person in respect hereof on the part of any party hereto, except for any liability resulting from such party’s breach of this Agreement prior to such termination. 
 6.2 Survival. Each of the representations and warranties contained in this Agreement shall survive indefinitely. Each of the covenants contained
in this Agreement shall survive the Closing until performed in accordance with their terms. 
  

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 6.3 Amendments; Waivers. The provisions of this Agreement may not be amended or modified except by
a writing signed by each of the parties. No waiver of any term or condition hereof or obligation hereunder shall be valid unless made in writing and signed by the party to which performance is due. 
 6.4 Severability of Provisions. Each provision of this Agreement shall be considered severable and if for any reason any provision or provisions
herein are determined to be invalid, unenforceable or illegal under any existing or future law, such invalidity, unenforceability or illegality shall not impair the operation of or affect those portions of this Agreement which are valid, enforceable
and legal. 
 6.5 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New
York, without giving effect to any conflict of laws principles thereof that would cause the application of the laws of another jurisdiction. 
 6.6 Waiver of Trial By Jury. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR
ANY MATTER ARISING HEREUNDER. 
 6.7 Remedies and Waivers. No delay or omission on the part of any Party to this Agreement in
exercising any right, power or remedy provided by law or under this agreement shall (i) impair such right, power or remedy; or (ii) operate as a waiver thereof. The single or partial exercise of any right, power or remedy provided by law
or under this Agreement shall not preclude any other or further exercise of any other right, power or remedy. The rights, powers and remedies provided in this Agreement are cumulative and not exclusive of any rights, powers and remedies provided by
law. 
 6.8 Notices. All notices, requests, demands, waivers and other communications to be given by either party hereunder shall be
in writing and shall be (i) mailed by first-class, registered or certified mail, postage prepaid, (ii) sent by hand delivery or reputable overnight delivery service or (iii) transmitted by fax (provided that a copy is also sent by
reputable overnight delivery service) addressed to the Secretary of the Issuer or the Secretary of the Purchaser, as applicable, in each case at 2 Bethesda Metro Center, 14th Floor, Bethesda, Maryland 20814, or such other address as may be specified
in writing to the other party hereto. All such notices, requests, demands, waivers and other communications shall be deemed to have been given and received (i) if by personal delivery or fax, on the day of such delivery, (ii) if by
first-class, registered or certified mail, on the fifth business day after the mailing thereof, or (iii) if by reputable overnight delivery service, on the day delivered. 
 6.9 Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all
such counterparts shall together constitute but one and the same instrument. 
  

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 6.10 Headings. The Article and Section headings contained herein are for the convenience of the
parties only and shall not affect the construction or interpretation of this Agreement. 
 6.11 Entire Agreement. This Agreement,
including the Exhibits hereto, contains the entire understanding of the parties with respect to the subject matter hereof, and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject
matter hereof. 
  

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 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date first written
above. 
  

			
	ISSUER:
	
	AMERICAN CAPITAL AGENCY CORP.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	PURCHASER:
	
	AMERICAN CAPITAL STRATEGIES, LTD.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

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 Annex I 

 Annex II

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