Summary of PATRIOT CAPITAL FUNDING, INC.

Item 1.01 Entry into a Material Definitive Agreement.

On January 5, 2009, each of Richard P. Buckanavage, President and Chief Executive Officer, Timothy W. Hassler, Chief Investment Officer, and Matthew R. Colucci, Executive Vice President, entered into employment agreements with Patriot Capital Funding, Inc. (the "Company"), each with a two-year term ending on January 5, 2011 (each a "2009 employment agreement"). The 2009 employment agreements are attached hereto as exhibits 10.1, 10.2 and 10.3 and are incorporated herein by reference. The 2009 employment agreements are substantially similar to the prior employment agreements except for the items noted below. A summary of each of the 2009 employment agreements follows.

Richard P. Buckanavage

Mr. Buckanavage initially entered into a three-year employment agreement with the Company on July 27, 2005. The July 27, 2005 employment agreement was filed as Exhibit (k)(4) to the Registration Statement on Form N-2 filed with the SEC on July 13, 2005. The 2009 employment agreement provides for an initial base salary of $412,500. In addition, the 2009 employment agreement provides for an Annual Bonus, as defined therein, of up to 250% of Mr. Buckanavage's Base Salary if certain performance objectives are met, as determined by the Board of Directors and the Compensation Committee of the Board of Directors. Further, the 2009 employment agreement provides for the issuance of restricted stock awards with a value up to 150% of Mr. Buckanavage's base salary during 2009 and 2010. The value of the restricted stock at the time of grant shall be at least $400,000 and $475,000 during the years 2009 and 2010, respectively. Any restricted shares issued to Mr. Buckanavage will vest upon his severance by the Company without cause, upon his termination for good reason or the occurrence of a change in control of the Company, as defined by the 2009 employment agreement.

Timothy W. Hassler

Mr. Hassler initially entered into a three-year employment agreement with the Company on July 27, 2005. The July 27, 2005 employment agreement was filed as Exhibit (k)(5) to the Registration Statement on Form N-2 filed with the SEC on July 13, 2005. The 2009 employment agreement provides for an initial base salary of $375,000. In addition, the 2009 employment agreement provides for an Annual Bonus, as defined therein, of up to 200% of Mr. Hassler's Base Salary if certain performance objectives are met, as determined by the Board of Directors and the Compensation Committee of the Board of Directors. Further, the 2009 employment agreement provides for the issuance of restricted stock awards with a value of up to 125% of Mr. Hassler's Base Salary during the years 2009 and 2010. The value of the restricted stock at the time of grant shall be at least $300,000 and $350,000 during the years 2009 and 2010, respectively. Any restricted shares issued to Mr. Hassler will vest upon his severance by the Company without cause, upon his termination for good reason or the occurrence of a change in control of the Company, as defined by the 2009 employment agreement.

Matthew R. Colucci

Mr. Colucci initially entered into a three-year employment agreement with the Company on December 16, 2005. The December 16, 2005 employment agreement was filed as Exhibit 10.3 to the Current Report on Form 8-K filed with the SEC on December 21, 2005. The 2009 employment agreement provides for an initial base salary of $275,000. In addition, the 2009 employment agreement provides for an Annual Bonus, as defined therein, of up to 200% of Mr. Colucci's Base Salary if certain performance objectives are met, as determined by the Board of Directors and the Compensation Committee of the Board of Directors. Further, the 2009 employment agreement provides for the issuance of restricted stock awards with a value of up to 100% of Mr. Colucci's Base Salary during the years 2009 and 2010. The value of the restricted stock at the time of grant shall be at least $225,000 and $275,000 during the years 2009 and 2010, respectively. Any restricted shares issued to Mr. Colucci will vest upon his severance by the Company without cause, upon his termination for good reason or the occurrence of a change in control of the Company, as defined by the 2009 employment agreement.