On October 22, 2009, American Capital, Ltd. (the "Company") entered into indemnification agreements (each, an "Indemnification Agreement" and collectively, the "Indemnification Agreements") with each member of its Board of Directors. As required by the Company's Certificate of Incorporation, the Indemnification Agreements are intended to provide the directors with the maximum protection available under Delaware law in connection with their services to the Company. The form of Indemnification Agreement is filed herewith as Exhibit 10.1.

The Indemnification Agreements provide, among other things, that subject to the procedures and conditions set forth therein, the Company will, to the fullest extent permitted by Delaware law, indemnify an indemnitee against expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by indemnitee or on indemnitee's behalf if, by reason of such indemnitee's status as a director or officer of the Company, such indemnitee was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative. The Indemnification Agreements also provide for the advancement of expenses incurred by an indemnitee, subject to certain conditions and exceptions, in connection with any proceeding covered by the Indemnification Agreements.

The description of the Indemnification Agreements set forth under this Item 1.01 is qualified in its entirety by reference to the complete terms and conditions of the form of Indemnification Agreement, which is filed as Exhibit 10.1 hereto and is incorporated herein by reference.

(d)Exhibits

                   Exhibit    Description
                    Number
                       10.1   Form of Indemnification Agreement