Document:

exv10w1

 

Exhibit 10.1

SEPARATION AGREEMENT

     This Separation Agreement (hereinafter the “Agreement”) is made and entered into this 14th day
of October, 2005 between The TJX Companies, Inc. (hereinafter referred to collectively with its
subsidiaries and affiliates as “TJX”), and Peter Maich (hereinafter the “Executive”).

     1. Termination of Employment. The Executive hereby (i) resigns from all officerships
and directorships with TJX and its subsidiaries, effective immediately, and (ii) terminates his
employment with TJX, effective November 29, 2005, after giving effect to unused vacation that the
Executive will use beginning with the week of October 30, 2005. During the period from the date
hereof through November 29, 2005 the Executive shall be entitled to (A) use such office space and
secretarial support as TJX may specify, and (B) participate in the TJX employee benefit programs in
which he currently participates, subject to the terms and conditions of such programs.

     2. Base Salary. On or before December 9, 2005, TJX will pay to the Executive any base
salary (including vacation pay) owing but previously unpaid to the Executive for the period of his
employment through and including November 29, 2005.

     3. Other Benefits. Subject to and conditioned upon his compliance with the terms of
this Agreement, TJX shall provide to the Executive the following payments and benefits:

	 	(a)	 	Salary Continuation. TJX shall pay to the Executive $760,000 payable
as follows: (i) the sum of $380,000 on or within five (5) business days following June
1, 2006 (such payment date being herein referred to as the “Initial Payment Date”) and
(ii) $63,333 per month over the six-month period commencing on the Initial Payment Date
in accordance with TJX’s normal payroll practices for executive employees.
Notwithstanding the foregoing, amounts payable to the Executive under this Section 3(a)
shall be reduced by any earnings of the Executive from employment or self-employment
during the period commencing upon termination of the Executive’s employment and ending
on November 29, 2006. The Executive agrees to notify TJX immediately should he become
employed or self-employed during such twelve-month period, including in such notice
information concerning remuneration in respect of such employment or self-employment
sufficient to enable TJX to administer the offset provisions of this Section 3(a), and
to provide to TJX in writing such additional information, if any, regarding such
remuneration as TJX may reasonably request.

	 	(b)	 	MIP. At the same time as TJX pays other participants in its Management
Incentive Plan (“MIP”) in respect of awards for FYE 2006, TJX shall pay to the
Executive an amount equal to five-sixths (83.33%) of the MIP payment, if any, to which
the Executive would have been entitled with respect to FYE 2006 had he remained in
TJX’s employment until the payment date for such MIP awards, based on actual
performance as certified by the Executive Compensation Committee (“ECC”) of TJX’s Board
of Directors. The Executive shall not be entitled to any other payments under or in
respect of MIP.

 

 

	 	(c)	 	LRPIP. At the same times as TJX pays other participants in its
Long-Range Performance Incentive Plan (“LRPIP”) in respect of the FYE 2004 to FYE 2006
cycle, the FYE 2005 to FYE 2007 cycle, and the FYE 2006 to FYE 2008 cycle,
respectively, TJX shall pay to the Executive an amount equal to the following: (i) for
the FYE 2004 to FYE 2006 cycle, 34/36ths (94.44%) of the LRPIP payment, if any, to
which the Executive would have been entitled with respect to such cycle had he remained
in employment until the payment date for such cycle, based on actual performance for
such cycle as certified by the ECC; (ii) for the FYE 2005 to FYE 2007 cycle, 22/36ths
(61.11%) of the LRPIP payment, if any, to which the Executive would have been entitled
with respect to such cycle had he remained in employment until the payment date for
such cycle, based on actual performance for such cycle as certified by the ECC; and
(iii) for the FYE 2006 to FYE 2008 cycle, 10/36ths (27.78%) of the LRPIP payment, if
any, to which the Executive would have been entitled with respect to such cycle had he
remained in employment until the payment date for such cycle, based on actual
performance for such cycle as certified by the ECC. The Executive shall not be
entitled to any other payments under or in respect of LRPIP, including, without
limitation, in respect to the two-year-cycle LRPIP award opportunity awarded by the ECC
in September 2005.
	 
	 	(d)	 	Restricted Stock. All shares of restricted stock (including
performance-based restricted stock) previously awarded to the Executive under TJX’s
Stock Incentive Plan, except to the extent, if any, previously vested, shall be
automatically forfeited upon termination of the Executive’s employment, notwithstanding
any requirement of notice or other conditions to forfeiture set forth in the terms of
the awards.
	 
	 	(e)	 	Stock Options. All stock options previously awarded to the Executive
under TJX’s Stock Incentive Plan, except to the extent previously exercised, expired or
forfeited, shall be treated as follows: (i) all such stock options that had not become
exercisable prior to the termination of the Executive’s employment shall thereupon be
immediately and automatically forfeited, and (ii) all such stock options that had
become exercisable prior the termination of the Executive’s employment shall continue
to be exercisable thereafter for such period or periods, if any, and subject to such
terms, as are contained in the award documentation relating thereto and in the Stock
Incentive Plan, and at the end of such exercise period(s) such stock options shall
promptly expire.
	 
	 	(f)	 	SERP. The Executive has an accrued benefit under TJX’s Supplemental
Executive Retirement Plan (“SERP”). TJX and the Executive agree that the benefit so
accrued will be recalculated using the pay history assumptions set forth in Exhibit A
hereto, which are based on an assumed continuation of base pay through December 31,
2005, and that the benefit as so recomputed (the “SERP Benefit”) will be paid in
accordance with this Agreement. With the intent that the payment provisions set forth
herein be determined consistent with the provisions of I.R.S. Notice 2005-1 and other
transitional guidance under Section 409A of the Internal Revenue Code of 1986, as

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	 	 	 	amended, (“Section 409A”), TJX and the Executive hereby agree that the actuarial
equivalent of the SERP Benefit shall be paid (in lieu of the form or forms of payment
that would otherwise be available under SERP) in the form of a single lump sum payment
on the Initial Payment Date, such lump sum payment to be in full satisfaction of TJX’s
liability under SERP. The amount of such lump sum payment shall be determined by
applying to the SERP Benefit the mortality and interest (discount) assumptions set forth
in Exhibit A.
	 
	 	(g)	 	General Deferred Compensation Plan; ESP. As of November 29, 2005 the
Executive will have accrued and vested balances under each of the TJX’s General
Deferred Compensation Plan (the “GDCP”) and its Executive Savings Plan (the “ESP”)
(such balances being herein referred to as the “Accrued Deferral Balances”). TJX shall
pay or cause to be paid to the Executive the Accrued Deferral Balances as follows: (i)
so much of the Accrued Deferral Balances as were earned and vested prior to January 1,
2005 (determined consistent with Section 409A and the guidance thereunder) shall be
paid in accordance with the terms of the GDCP and the ESP, as the case may be, and with
the terms of any elections made by the Executive in accordance with the provisions of
the applicable plan, and (ii) the remainder of the Accrued Deferral Balances shall be
paid on the Initial Payment Date.
	 
	 	(h)	 	Qualified Plans. As of November 29, 2005 the Executive will have
accrued and vested benefits under TJX’s Retirement Plan and its Savings/Profit Sharing
Plan (the “Qualified Plans”). The Executive shall be entitled to payment of his
benefits under the Qualified Plans in accordance with the terms thereof and applicable
law.
	 
	 	(i)	 	Payment in Lieu of Car Allowance. TJX shall pay to the Executive
following termination of his employment, in lieu of any auto allowance, (i) $17,375,
which shall be paid on the Initial Payment Date, plus (ii) an additional $17,375 paid
in substantially equal installments in accordance with TJX’s normal payroll practices
for executive employees over the six-month period commencing on the Initial Payment
Date.
	 
	 	(j)	 	Health Insurance, etc. The Executive, if he so elects in accordance
with the rules of TJX’s health plan and consistent with the so-called “COBRA” benefits
coverage continuation provisions of applicable law (the “COBRA coverage rules”), shall
be entitled following the termination of his employment to continued participation in
TJX’s health plan at his expense in accordance with and to the extent provided by the
COBRA coverage rules.
	 
	 	(k)	 	Rights Limited. Except as expressly set forth in subsections (a)
through (j) of this Section 3 or as may otherwise be required by applicable law, the
Executive shall not be entitled to any other payment or benefits from TJX following the
termination of his employment.

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     4. Restricted Activities. The Executive agrees that some restrictions on his
activities during and after his employment are necessary to protect the goodwill, Confidential
Information (as defined in Section 6 below) and other legitimate business interests of TJX:

	 	(a)	 	During the period starting with the date hereof and ending November 30, 2006
(the “Non-Competition Period”), the Executive will not, directly or indirectly, be a
partner or investor in, or be engaged in any employment, consulting, or
fees-for-services arrangement with, any business which is a competitor of TJX, nor
shall the Executive undertake any planning to engage in any such business. A business
shall be deemed a competitor of TJX if and only if (i) it shall then be so regarded by
retailers generally, or (ii) it shall operate an off-price apparel, off-price footwear,
off-price jewelry, off-price accessories, off-price home furnishings and/or off-price
home fashions business, including any such business that is store-based,
catalogue-based, or an on-line, “e-commerce” or other off-price internet-based
business. The Executive agrees that if, at any time, pursuant to action of any court,
administrative or governmental body or other arbitral tribunal, the operation of any
part of this Section 4(a) shall be determined to be unlawful or otherwise
unenforceable, then the coverage of this paragraph shall be deemed to be restricted as
to duration, geographical scope or otherwise, as the case may be, to the extent, and
only to the extent, necessary to make this paragraph lawful and enforceable in the
particular jurisdiction in which such determination is made.
	 
	 	(b)	 	The Executive agrees that, during the Non-Competition Period, the Executive
will not hire or retain, or attempt to hire or retain, any employee of TJX or any
individual who was an employee of TJX during the six-month period preceding such hiring
or retention or attempt to hire, assist in such hiring by any Person, encourage any
such employee to terminate his or her relationship with TJX, or solicit or encourage
any supplier, vendor, contractor or agent of TJX to terminate or diminish his, her or
its relationship with TJX. As used in this Agreement, “Person” means an individual, a
corporation, a limited liability company, an association, a partnership, an estate, a
trust and any other entity or organization, other than TJX.

     5. Notification Requirement. Until the conclusion of the Non-Competition Period, the
Executive shall give notice to TJX of each new business activity he has agreed or plans to
undertake, at least fifteen (15) days prior to commencing any such activity. Such notice shall
state the name and address of the Person for whom such activity is undertaken and the nature of the
Executive’s business relationship(s) and position(s) with such Person. The Executive shall provide
TJX with such other pertinent information concerning such business activity as TJX may reasonably
request in order to determine the Executive’s continued compliance with his obligations under
Sections 4 and 6 hereof.

     6. Confidential Information. The Executive agrees that, except as required by
applicable law, rule, regulation or legal process, he will never, directly or indirectly, use or
disclose any Confidential Information belonging to TJX. For purposes of this Agreement,

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“Confidential Information” means any and all proprietary or confidential information of TJX
contained in documents or writings (the term “documents or writings” for purposes of this Section 6
includes actual documents and writings as well as email and other electronically formulated or
transmitted writing and data) that is not generally known by others with whom it competes or does
business, including but not limited to documents and writings relating to (a) products and
services, technical data, financial information, methods, processes, trade secrets, know-how,
developments, inventions, and formulae of TJX, (b) the development, research, testing, marketing,
financial activities and strategic plans of TJX, (c) the manner in which TJX operates, (d) TJX’s
actual and projected financial performance, and (e) the substance of the relationships with the
people and organizations with whom TJX has business relationships. Confidential Information also
includes documents and writings that TJX has received from investors, business partners or others
with any understanding, express or implied, that the information would not be publicly disclosed.
Notwithstanding the foregoing, “Confidential Information” does not include any documents or
writings (i) that are currently or become publicly available or a matter of public knowledge or
domain through no wrongful act or omission by the Executive, or (ii) that are received by the
Executive from a third party who is not known by the Executive to be bound by an obligation of
confidentiality to TJX not to disclose that information. Upon execution of this Agreement, the
Executive shall immediately return all writings and documents, including all copies, relating to
TJX’s business, and shall execute a certificate certifying that he has returned all such items in
his possession or under his control.

     7. Remedies. TJX and the Executive agree without reservation that the restraints set
forth in Sections 4 and 6 hereof are necessary for the reasonable and proper protection of TJX;
that each and every one of the restraints is reasonable with respect to subject matter, length of
time, and geographic area; and that these restraints will not prevent the Executive from obtaining
other suitable employment, if he wishes to do so, during the Non-Competition Period. The Executive
further agrees that, were he to breach any of the covenants contained in Section 4 or Section 6,
the damage to TJX would be irreparable. The Executive therefore agrees that TJX, in addition to
any other remedies available to it, shall be entitled to preliminary and permanent injunctive
relief against any breach or threatened breach by the Executive of any of those covenants. TJX
shall also be entitled to recover all attorney’s fees and expenses reasonably incurred by TJX
relating to any successful effort to enforce the terms of this Agreement. It is expressly agreed
that TJX will not have to post bond in connection with any injunction it secures, and that the
Executive will not take, and will not permit anyone else to take on his behalf, any position in a
court or any other forum inconsistent with any of his covenants and agreements herein. In addition
to the foregoing, TJX and the Executive agree that, in the event of any breach of the Executive’s
covenants hereunder, the Executive shall immediately forfeit any and all rights or interests in the
compensation, retirement benefits and other benefits described in Section 3 hereof, to the fullest
extent permitted by law, and shall promptly pay over to TJX all amounts previously paid to him
thereunder. TJX and the Executive further agree that, in the event that any provision of Section 4
or Section 6 of this Agreement is determined by any court of competent jurisdiction to be
unenforceable by reason of its being extended over too great a time, too large a geographic area,
or too great a range of activities, that provision shall be

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deemed to be modified to permit its enforcement to the maximum extent permitted by law.
Further, TJX and the Executive agree that the period of restriction described in Section 4 shall be
tolled, and shall not run, during any period of time in which the Executive is in breach of the
terms of Section 4 or Section 6 of this Agreement.

     8. The Executive’s Release of Claims. In consideration of the benefits to be provided
the Executive hereunder, which benefits the Executive acknowledges are not otherwise due, the
Executive hereby releases, waives and forever discharges TJX and all those persons, employees,
directors, agents and entities (including benefit plans) affiliated with it from and against any
and all claims, rights and causes of action now existing, both known and unknown, including but not
limited to all claims for breach of contract or misrepresentation, wrongful discharge, breach of
fiduciary duty, and claims of alleged violations of Title VII of the Civil Rights Act of 1964, the
Age Discrimination in Employment Act, the Fair Labor Standards Act, the Employee Retirement Income
Security Act, the Americans With Disabilities Act, Massachusetts G.L. c. 151B, Massachusetts G.L.
c. 149, § 148, and any other local, state, or federal law, regulation or other requirement or any
other claim relating to or arising out of the Executive’s employment with TJX and/or his ownership
of TJX stock. The Executive hereby covenants that he will not institute any charge, complaint, or
lawsuit to challenge the validity of this release or to otherwise assert claims against TJX that
have been waived hereunder.

     9. Entire Agreement. This Agreement, together with all other plans, agreements and
documents referred to herein and as modified hereby, constitute the entire agreement between TJX
and the Executive, and supersede any other contracts or commitments with respect to the Executive’s
employment with TJX, and/or the termination of his employment, except to the extent expressly
provided for herein.

     10. Modification of Agreement. This Agreement may only be amended, modified or waived
by a writing signed by parties duly authorized to do so.

     11. Successors and Assigns; Death Benefits. It is agreed and understood that this
Agreement shall inure to the benefit of and be binding upon the parties’ successors and assigns.
If the Executive dies prior to the payment of all remuneration specified in Section 3(a), the
balance shall be paid to his estate. If the Executive dies prior to the payment of other benefits
hereunder, the heirs or beneficiaries of the Executive or the executors, personal representatives
or administrators of the Executive’s estate shall be entitled only to such death benefits and other
rights and benefits, if any, as are provided under the terms of the applicable plan or program.

     12. Notices. All notices and other communications hereunder shall be in writing and
shall be deemed to have been given three days after having been mailed by first-class mail or
registered or certified mail, or twelve hours after having been delivered or sent by facsimile, to
(a) in the case of the Executive, to his address as shown in the records of TJX (or such other
address as he may specify by notice given in accordance with this Section), and (b) in the case of
TJX, to The TJX Companies, Inc., Attn: Chief Executive Officer, 770 Cochituate Road, Framingham,
MA 01701.

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     13. Miscellaneous.

	 	(a)	 	All payments to the Executive and all benefits, entitlements and accruals of
the Executive are conditioned upon the payment by the Executive of the employee’s
portion of applicable required tax withholdings, including, without limitation, FICA
(including Medicare) tax withholdings. TJX may reduce any payments to or for the
benefit of the Executive by the amount of any such applicable tax withholdings.
	 
	 	(b)	 	The provisions of this Agreement shall survive any termination if so provided
herein or if necessary or desirable to accomplish the purposes of other surviving
provisions, including, without limitation, the obligations of the Executive under
Sections 4 and 6 hereof. The obligations of TJX under Section 3 of the Agreement or
otherwise (including under MIP, LRPIP, the Incentive Plan or SERP) to make payments to
or on behalf of the Executive are expressly conditioned upon the Executive’s continued
full performance of all of his obligations under Sections 4 and 6 hereof.
	 
	 	(c)	 	The parties hereto acknowledge that certain provisions hereof could be required
to be amended, following the issuance of additional guidance by the Internal Revenue
Service with respect to Section 409A, to avoid the acceleration of tax and the possible
imposition of additional tax under Section 409A with respect to certain payments and
benefits under Section 3 of this Agreement. TJX agrees that it will not unreasonably
withhold its consent to any such amendments which in its determination are (i) feasible
and necessary to avoid adverse tax treatment under Section 409A for the Executive, and
(ii) not adverse to the interests of TJX.
	 
	 	(d)	 	In order to be certain that this Agreement will resolve any and all concerns
that the Executive might have, TJX requests that he carefully consider its terms,
including the general release of claims set forth above. For a period of seven days
following his execution of this Agreement, the Executive may revoke his acceptance
hereof as to the release of claims under the Age Discrimination in Employment Act, and
this Agreement shall not become effective or enforceable as to the release of such
claims until after that seven-day revocation period has expired.
	 
	 	(e)	 	In signing this Agreement, the Executive acknowledges that he understands its
provisions; that his agreement is knowing and voluntary; that he has been afforded a
full and reasonable opportunity of at least 21 days to consider its terms and consult
with or seek advice from an attorney of his choosing; and that he has been advised to
seek counsel from an attorney.

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	 	(f)	 	The parties’ substantive and procedural rights with respect to this Agreement
shall be governed by the laws of the Commonwealth of Massachusetts, without resort to
choice of law or conflict of law principles.
	 
	 	(g)	 	This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original, and which together shall be deemed to be one and the same
instrument.

	 	 	 	 	 
	ACCEPTED AND AGREED TO:	 	ACCEPTED AND AGREED TO:
	 
	 	 	 	 
	/s/ Peter Maich	 	The TJX Companies, Inc.
	 

	 	 	 	 
	Peter Maich
	 	 	 	 
	 

	 	By:
	 	/s/ Bernard Cammarata
	 

	 	 	 	 
	 

	 	Title:
	 	Acting CEO

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Exhibit A

SERP Factors

Date of Birth: 11-22-47

Date of Hire: 3-11-85

Pay History (Includes Assumed Pay Through Year-End Calendar 2005)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Calendar	 	Base	 	 	MIP	 	 	Total	 
	2000 
	 	$	612,083	 	 	$	274,613	 	 	$	886,696	 
	2002 
	 	 	650,000	 	 	 	211,088	 	 	 	861,088	 
	2003 
	 	 	705,416	 	 	 	256,422	 	 	 	961,838	 
	2004 
	 	 	750,000	 	 	 	317,475	 	 	 	1,067,475	 
	2005 
	 	 	760,000	 	 	 	330,637	 	 	 	1,080,637	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Final 5 yr. avg:	 	$	973,547	 
	 
	 	 	 	 	 	 	 	 	 	 	x 50	%
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	$	486,773	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Target Benefit at age 65:
	 	 	 	 	 	$	486,773	 	 	 	 	 
	- Pension
	 	 	 	 	 	 	49,000	 	 	 	 	 
	- 401(k)-ER annuity.
	 	 	 	 	 	 	11,603	 	 	 	 	 
	- Social Security
	 	 	 	 	 	 	23,268	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	SERP @ age 65:
	 	 	 	 	 	$	402,902	 	 	 	 	 
	 
	 	 	 	 	 	x.6000 (ERF)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 
	Annual SERP @ age 58:

	 	$241,741 (payments delayed to 6-1-06)

	 
	 	 	 	 
	Lump Sum Present Value on 6-1-06 @ 4.25%:

	 	$	3,592,294	 

Note: Target benefit is subject to offsets. All offsets shown are estimates; actual
offsets will be determined at time of payment. Accordingly, both the SERP value at age 58 and the
lump sum present value are estimates only. Once all inputs, including the discount rate, are
finalized, the lump sum will be determined using the mortality assumptions used under the SERP
(1983 Group Annuity Mortality Table (Unisex)) and, as a discount factor, the interest rate being
credited to accounts in calendar 2006 under TJX’s General Deferred Compensation Plan.

-9-Exhibit
10.1

AMENDMENT NO. 1 dated as of
October 13, 2005 (the "Amendment")
with respect to that certain CREDIT AGREEMENT dated as of May 18, 2005
(the "Credit Agreement") by and
among TECHNOLOGY INVESTMENT CAPITAL CORP., a corporation organized
under the laws of the State of Maryland (the
"Borrower"), each of the financial
institutions initially a signatory hereto together with their assignees
pursuant to Section 12.5(d) of the Agreement (each a
"Lender" and collectively, the
"Lenders") and BAYERISCHE HYPO-UND
VEREINSBANK AG, NEW YORK BRANCH, as Administrative Agent (the
"Agent").

WHEREAS, on May 18,
2005, the Borrower, the Agent and Bayerische Hypo-Und Vereinsbank AG,
New York Branch ("HVB"), in the
capacity of a Lender, entered into the Credit Agreement; and

WHEREAS, the Borrower has requested the amendment of the Credit
Agreement as provided hereunder; and

WHEREAS, the Agent and the
Lenders are willing to so amend the Credit Agreement, subject to the
terms and conditions contained herein;

NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties hereto, the parties hereto agree as
follows:

ARTICLE I

DEFINITIONS

Capitalized terms used herein and not otherwise defined herein shall
have the meanings specified in the Credit Agreement.

ARTICLE II

AMENDMENTS

2.1    Amendments.

(a)    New defined
terms are hereby added to Section 1.1 of the Credit Agreement in the
appropriate alphabetical order as follows:

		
	 	"Amendment No.
1" shall mean that certain Amendment No. 1 dated as
of October 13, 2005 by and among the Borrower, the Agent and the
Lenders with respect to the Agreement.

		
	 	"Amendment No. 1 Effective
Date" shall mean the date as of which the Agent shall
have confirmed to the Borrower and Lenders in writing that the
conditions precedent to the effectiveness of Amendment No. 1 have been
satisfied.

(b)     The definition of
"Commitment" is hereby amended by
deleting the word "obligation" and replacing
it with the word "option".

(c)     The "Commitment
Amount" specified with respect to HVB on its
signature pages with respect to the Credit Agreement is hereby amended
to read "$100,000,000".

(d)     The definition of "Maturity
Date" is hereby amended and restated in its entirety
to read as follows:

		
	 	"Maturity
Date" means, (i) with respect to each Loan advanced
to the Borrower prior to the Amendment No. 1 Effective Date, the date
one year after the date on which the initial advance of such Loan was
made, and (ii) with respect to all Loans advanced to the Borrower from
and after the Amendment No. 1 Effective Date, the date specified as the
"Maturity Date" on the Notice of Borrowing
pursuant to which such Loan is advanced, provided that if, (A) after
giving effect to any Borrowing the aggregate outstanding principal
amount of all the Loans is $35,000,000 or less, the Maturity Date for
such 

1

		
	 	
Borrowing  shall  be one year
after the making of such Borrowing, and (B) after giving effect to any
Borrowing the aggregate outstanding principal amount of all the Loans
exceeds $35,000,000 the portion of such Loans in excess of $35,000,000
shall mature no later than February 10, 2006, provided, however, that
the Maturity Date may never extend beyond the Termination
Date."

(e)    The definition of
"Requisite Lenders" is hereby amended by
deleting therefrom the words "and Letter of Credit
Liabilities".

(f)     The definition of
"Transaction Assets" is hereby amended by
adding the following proviso at the end of the current text:

		
	 	"provided that, in the event that
the principal amount of obligations arising pursuant to all Transaction
Assets with respect to a single Obligor and its Affiliates exceeds
$15,000,000 (excluding therefrom the amount of any capitalized payment
in kind interest), the amount of such Transaction Assets in excess of
$15,000,000 shall be excluded for the purposes of determination of the
amount of Transaction Assets."

(g)    The text of subsection 9.1(c) is hereby deleted
and replaced with the words
"[RESERVED]".

(h)     Section 10.3(c) of the Credit Agreement is
hereby amended by replacing the words "sixty
(60)" as they appear therein with the words
"thirty (30)".

(i)    
Section 10.3(i) of the Credit Agreement is hereby amended by replacing
the number "60" as it appears therein with
the number "30".

(j)    Section 10.3(j) of the Credit Agreement is hereby
amended by replacing the number "60" as it
appears therein with the number "30".

(k)    A new Section 10.3(m) is inserted immediately
following Section 10.3(l) reading as follows:

		
	 	"(m)    Each of Saul Rosenthal
and Jonathan Cohen cease to be engaged in the day-to-day senior
management of the Borrower;"

(l)    The
penultimate sentence of Section 11.8 is hereby deleted.

(m)    Clauses (b) and (c) of Section 12.10 are hereby
deleted, and clause (d) is relettered as clause (b).

(n)    Exhibit B of the Credit Agreement is hereby
amended and restated in its entirety to read as set forth in the form
attached as Exhibit B hereto.

ARTICLE
III

CONDITIONS PRECEDENT AND SUBSEQUENT TO
EFFECTIVENESS OF THIS AMENDMENT

3.1    Conditions
Precedent to Effectiveness of this Amendment.

(a)    This Amendment shall become effective as of the
date on which the following conditions have been satisfied and the
Agent has confirmed in writing the satisfaction thereof to the Borrower
and the Lenders:

(i)    the Agent shall have
received counterparts of this Amendment executed by each of the parties
hereto;

(ii)    the execution and delivery by Royal
Bank of Canada, HVB, the Agent and the Borrower of an Assignment and
Acceptance Agreement substantially in the form of Exhibit A
hereto pursuant to which, inter alia, there shall
become effective, concurrent with the effective date of this Amendment,
the assignment to Royal Bank of Canada by HVB of a $40,000,000
commitment pursuant to the Credit Agreement; and

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(iii)    the Agent shall have
received for the account of Royal Bank of Canada a Revolving Note
payable to Royal Bank of Canada executed by the Borrower;

(iv)    the Agent shall have received such other
documents, agreements and instruments as the Agent on behalf of the
Lenders may reasonably request.

3.2    Conditions
Subsequent to Effectiveness of this Amendment.

(a)     The Borrower shall cause to be delivered to the
Agent, on or prior to the date no later than ten (10) Business Days
after the date hereof:

(i)     a certificate of
incumbency signed by the Secretary or Assistant Secretary of the
Borrower specifying each of the officers of the Borrower authorized to
execute and deliver the Loan Documents to which the Borrower is a party
and the officers of the Borrower then authorized to deliver Notices of
Borrowing, Notices of Continuation and Notices of Conversion; and

(ii)     copies, certified by the Secretary or
Assistant Secretary of the Borrower, of all corporate (or comparable)
action taken by the Borrower to authorize the execution, delivery and
performance of the Loan Documents to which the Borrower is a party,
including, without limitation, evidence of the written consent of the
Borrower's Board of Directors (which consent shall be dated on or
close to the date hereof) to the terms and conditions of this
Amendment.

The failure by the Borrower
to deliver the documents noted above shall give rise to an immediate
Event of Default pursuant to the Credit Agreement.

ARTICLE IV

REPRESENTATIONS AND
WARRANTIES

4.1    Representations and Warranties.

		
	 	The Borrower represents and warrants to the
Agent and each Lender as follows:

(a)    Authorization of Amendment, Etc. The
Borrower has the right and power, and has taken all necessary action to
authorize it, to execute and deliver this Amendment and to perform the
Credit Agreement as amended hereby (the "Amended
Agreement"). This Amendment has been duly executed
and delivered by the duly authorized officers of the Borrower and the
Amended Agreement is a legal, valid and binding obligation of the
Borrower, enforceable against the Borrower in accordance with its terms
except as the same may be limited by bankruptcy, insolvency, and other
similar laws affecting the rights of creditors generally and the
availability of equitable remedies for the enforcement of certain
obligations (other than the payment of principal) contained herein or
therein may be limited by equitable principles generally.

(b)     Compliance of Amendment with Laws,
Etc. The execution and delivery of this Amendment and the
performance of the Amended Agreement by the Borrower does not and will
not, by the passage of time, the giving of notice, or both: (i) require
any Governmental Approval not previously obtained or violate any
Applicable Law (including all Environmental Laws) relating to the
Borrower; (ii) conflict with, result in a breach of or constitute a
default under the organizational documents of the Borrower, or any
material provision of any indenture, material agreement or other
material instrument to which the Borrower is a party or by which it or
any of its respective properties may be bound; or (iii) result in or
require the creation or imposition of any Lien upon or with respect to
any property now owned or hereafter acquired by the Borrower (except in
favor of the Agent and Lenders).

4.2    Ratification
of Representations and Warranties in the Credit Agreement.

All representations and warranties made under the Credit
Agreement are hereby made on and as of the Amendment No. 1 Effective
Date, provided that if such representation and warranty relates to an
earlier date, it shall be true and correct as of such earlier
date.

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4.3    Ratification of Credit
Agreement; Confirmation of Amended Commitments.

All
other terms and conditions of the Credit Agreement are otherwise
ratified and confirmed. The respective Commitments of the Lenders, from
and after the Amendment No. 1 Effective Date, are set forth on
Schedule I hereto.

ARTICLE
V

MISCELLANEOUS

5.1    Governing
Law.     The validity, construction and performance of this
Amendment will in all respects be governed by the laws of the State of
New York.

5.2    Successors and Assigns.     All
the terms and provisions of this Amendment shall inure to the benefit
of the parties hereto and their respective successors and permitted
assigns.

5.3    Headings and Table of Contents.    
The headings in this Amendment are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

5.4    Counterparts.     This Amendment may be executed
in any number of counterparts, each of which shall be an original, but
all of which shall together constitute one and the same instrument.

[REMAINDER OF PAGE INTENTIONALLY BLANK]

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IN WITNESS WHEREOF, the undersigned parties
have executed this Amendment as of the date set forth above.

		BORROWER:

		TECHNOLOGY
INVESTMENT CAPITAL CORP., as Borrower

			
		By: 	/s/ Saul B.
Rosenthal                                        

Name: Saul B. Rosenthal
 Title: President

		ADMINISTRATIVE AGENT:

		BAYERISCHE HYPO-UND VEREINSBANK AG, NEW YORK
BRANCH,
 as Administrative Agent

			
		By: 	/s/ Debra L.
Laskowski                                    

Name: Debra L. Laskowski
 Title: Managing
Director

			
		By: 	/s/ Craig
M.
Pinsly                                            

Name: Craig M. Pinsly, CFA

Title: Director

		LENDER:

		BAYERISCHE HYPO-UND VEREINSBANK AG, NEW YORK
BRANCH,
 as Lender

			
		By: 	/s/ Debra L.
Laskowski                                    

Name: Debra L. Laskowski
 Title: Managing
Director

			
		By: 	/s/ Craig
M.
Pinsly                                            

Name: Craig M. Pinsly, CFA

Title: Director

5

SCHEDULE I

							
	Lender		Commitment
Amount
	Bayerische Hypo-Und
Vereinsbank AG, New York
Branch		$60,000,000
	Royal Bank of
Canada		$40,000,000
	

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