X0202 4 2007-07-18 0 0000003906 ALLIED CAPITAL CORP ALD 0001205621 BINDER SCOTT S 1919 PENNSYLVANIA AVENUE, NW 3RD FLOOR WASHINGTON DC 20006 0 1 0 0 Chief Valuation Officer Common Stock 2007-07-18 4 A 0 116680 31.75 A 192700 D Common Stock 2209 I by 401K Common Stock 273 I by IRA Common Stock 20000 I by Trust Non-Qualified Stock Option (right to buy) 16.813 2007-07-18 4 D 0 275000 D 2010-05-26 Common Stock 275000 0 D Non-Qualified Stock Option (right to buy) 17.75 2007-07-18 4 D 0 25820 D 2009-12-30 Common Stock 25820 0 D Non-Qualified Stock Option (right to buy) 17.875 2007-07-18 4 D 0 8217 D 2008-12-08 Common Stock 8217 0 D Non-Qualified Stock Option (right to buy) 21.375 2007-07-18 4 D 0 163637 D 2008-01-08 Common Stock 163637 0 D Non-Qualified Stock Option (right to buy) 21.52 2007-07-18 4 D 0 30354 D 2012-12-13 Common Stock 30354 0 D Non-Qualified Stock Option (right to buy) 21.59 2007-07-18 4 D 0 80489 D 2011-09-20 Common Stock 80489 0 D The canceled options, granted on May 26, 2000, provided for vesting in three annual installments commencing one year from date of grant. On July 18, 2007, the issuer canceled, pursuant to the issuer's tender offer, options previously granted to the reporting person. In exchange for the options, the reporting person received an option cancellation payment ("OCP") which was paid one-half in cash and one-half in unregistered shares of the issuer's common stock. The value of the OCP was equal to the difference between the weighted average market price of $31.75, less the exercise price of the option, multiplied by the number options canceled. The canceled options, granted on December 30,1999, provided for vesting in six annual installments commencing on grant date. The canceled options, granted on December 8, 1998, provided for vesting in six annual installments commencing on grant date The canceled options, granted on January 8, 1998, provided for vesting in six equal annual installments commencing on grant date. The canceled options, granted on December 13, 2002, provided for vesting in three equal installments commencing on June 30, 2003. The canceled options, granted on September 20, 2001, provided for vesting in three equal annual installments commencing one year from grant date. 401(k) Plan holdings adjusted for routine non-reportable transactions. s/ Scott S. Binder 2007-07-19