<SEC-DOCUMENT>0001193125-19-144720.txt : 20190513
<SEC-HEADER>0001193125-19-144720.hdr.sgml : 20190513
<ACCEPTANCE-DATETIME>20190513083203
ACCESSION NUMBER:		0001193125-19-144720
CONFORMED SUBMISSION TYPE:	DEFC14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20190513
DATE AS OF CHANGE:		20190513
EFFECTIVENESS DATE:		20190513

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Medley Capital Corp
		CENTRAL INDEX KEY:			0001490349
		IRS NUMBER:				274576073
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		DEFC14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	814-00818
		FILM NUMBER:		19816957

	BUSINESS ADDRESS:	
		STREET 1:		280 PARK AVENUE
		STREET 2:		6TH FLOOR EAST
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
		BUSINESS PHONE:		212-759-0777

	MAIL ADDRESS:	
		STREET 1:		280 PARK AVENUE
		STREET 2:		6TH FLOOR EAST
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Medley Capital BDC LLC
		DATE OF NAME CHANGE:	20100426

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NexPoint Advisors, L.P.
		CENTRAL INDEX KEY:			0001617621
		IRS NUMBER:				364728498
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEFC14A

	BUSINESS ADDRESS:	
		STREET 1:		300 CRESCENT COURT, SUITE 700
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75201
		BUSINESS PHONE:		972.628.4100

	MAIL ADDRESS:	
		STREET 1:		300 CRESCENT COURT, SUITE 700
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75201
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEFC14A
<SEQUENCE>1
<FILENAME>d748001ddefc14a.htm
<DESCRIPTION>DEFC14A
<TEXT>
<HTML><HEAD>
<TITLE>DEFC14A</TITLE>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SCHEDULE 14A </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">(Rule <FONT
STYLE="white-space:nowrap">14a-101)</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">INFORMATION REQUIRED IN PROXY STATEMENT </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">SCHEDULE 14A INFORMATION </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Proxy
Statement Pursuant to Section&nbsp;14(a) of The Securities Exchange Act of 1934 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">(Amendment No. ) </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Filed by the Registrant&nbsp;&nbsp;&#9744; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Filed by a Party other than the Registrant&nbsp;&nbsp;&#9746; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Check the appropriate box: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#9744;&nbsp;&nbsp;</P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify">Preliminary Proxy Statement </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#9744;&nbsp;&nbsp;</P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify">Confidential, for Use of the Commission Only (as permitted by Rule
<FONT STYLE="white-space:nowrap">14a-6(e)(2))</FONT> </P></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#9746;&nbsp;&nbsp;</P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify">Definitive Proxy Statement </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#9744;&nbsp;&nbsp;</P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify">Definitive Additional Materials </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#9744;&nbsp;&nbsp;</P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify">Soliciting Material Under Rule <FONT STYLE="white-space:nowrap">14a-12</FONT> </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:22pt; font-family:Times New Roman" ALIGN="center"><B>Medley Capital Corporation </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Name of Registrant as Specified In Its Charter) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NexPoint Advisors, L.P. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NexPoint Advisors GP, LLC </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Highland Global Allocation Fund </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Highland Capital Management Fund Advisors, L.P. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Strand Advisors XVI, Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Highland Select Equity Master Fund, L.P. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Highland Select Equity Fund GP, L.P. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Highland Select Equity GP, LLC </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Highland Capital Management, L.P. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Strand Advisors, Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>James D. Dondero </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Stephen
Mongillo </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Mark Goglia </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Name of Person(s) Filing Proxy Statement, if other than the Registrant) </B></P>
</DIV></Center>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Payment of Filing Fee (check the appropriate box): </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#9746;&nbsp;&nbsp;</P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify">No fee required. </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#9744;&nbsp;&nbsp;</P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify">Fee computed on table below per Exchange Act Rule <FONT STYLE="white-space:nowrap">14a-6(i)(4)</FONT> and <FONT
STYLE="white-space:nowrap">0-11.</FONT> </P></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="95%"></TD></TR>

<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">1)</P>
<P STYLE="font-size:8pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Title of each class of securities to which transaction applies:</P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt" align="left">&nbsp;</P> <P STYLE="margin-top:0pt;margin-bottom:1pt;border-bottom:1px solid #000000">&nbsp;</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">2)</P>
<P STYLE="font-size:8pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Aggregate number of securities to which transaction applies:</P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt" align="left">&nbsp;</P> <P STYLE="margin-top:0pt;margin-bottom:1pt;border-bottom:1px solid #000000">&nbsp;</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">3)</P>
<P STYLE="font-size:8pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Per unit price or other underlying value of transaction computed pursuant to Exchange Act
<FONT STYLE="white-space:nowrap">Rule&nbsp;0-11</FONT> (set forth the amount on which the filing fee is calculated and state how it was determined):</P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt" align="left">&nbsp;</P>
<P STYLE="margin-top:0pt;margin-bottom:1pt;border-bottom:1px solid #000000">&nbsp;</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">4)</P>
<P STYLE="font-size:8pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Proposed maximum aggregate value of transaction:</P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt" align="left">&nbsp;</P> <P STYLE="margin-top:0pt;margin-bottom:1pt;border-bottom:1px solid #000000">&nbsp;</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">5)</P>
<P STYLE="font-size:8pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Total fee paid:</P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt" align="left">&nbsp;</P>
<P STYLE="margin-top:0pt;margin-bottom:1pt;border-bottom:1px solid #000000">&nbsp;</P></TD></TR></TABLE></DIV> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#9744;&nbsp;&nbsp;</P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify">Fee paid previously with preliminary materials. </P></TD></TR></TABLE>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#9744;&nbsp;&nbsp;</P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify">Check box if any part of the fee is offset as provided by Exchange Act Rule
<FONT STYLE="white-space:nowrap">0-11(a)(2)</FONT> and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
</P></TD></TR></TABLE> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">1)</P>
<P STYLE="font-size:8pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Amount Previously Paid:</P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt" align="left">&nbsp;</P>
<P STYLE="margin-top:0pt;margin-bottom:1pt;border-bottom:1px solid #000000">&nbsp;</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">2)</P>
<P STYLE="font-size:8pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Form, Schedule or Registration Statement No.:</P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt" align="left">&nbsp;</P> <P STYLE="margin-top:0pt;margin-bottom:1pt;border-bottom:1px solid #000000">&nbsp;</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">3)</P>
<P STYLE="font-size:8pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Filing Party:</P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt" align="left">&nbsp;</P>
<P STYLE="margin-top:0pt;margin-bottom:1pt;border-bottom:1px solid #000000">&nbsp;</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">4)</P>
<P STYLE="font-size:8pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Date Filed:</P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt" align="left">&nbsp;</P>
<P STYLE="margin-top:0pt;margin-bottom:1pt;border-bottom:1px solid #000000">&nbsp;</P></TD></TR>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">NEXPOINT ADVISORS, L.P. </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">300 Crescent Court, Suite 700 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Dallas, Texas 75201 </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">IMPORTANT:
PLEASE READ THESE MATERIALS </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">May&nbsp;13, 2019 </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Dear Fellow Stockholder: </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">NexPoint Advisors, L.P. (together with the other members of the NexPoint Group (as defined in the attached proxy statement))
are collectively the beneficial owners of an aggregate of 335,100 shares of common stock, par value $0.001 per share (the &#147;Common Stock&#148;), of Medley Capital Corporation (&#147;MCC&#148; or the &#147;Company&#148;). We are writing to you
regarding the Company&#146;s annual meeting of stockholders scheduled to be held on Tuesday, June&nbsp;4, 2019 at 12:00 p.m., Eastern time, at the offices of Eversheds Sutherland (US) LLP located at 1114&nbsp;Avenue of the Americas, 40th Floor, New
York, New York 10036, including any adjournments or postponements thereof and any meeting that may be called in lieu thereof by the Company (the &#147;Annual Meeting&#148;). </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">As you may know, the Company previously announced a series of transactions pursuant to which the Company would merge with
Sierra Income Corporation (&#147;Sierra&#148;) and by which Medley Management Inc. (&#147;MDLY&#148;) would merge with a wholly-owned subsidiary of Sierra (collectively, the &#147;Medley Mergers&#148;). On February&nbsp;11, 2019, FrontFour Capital
Group LLC and FrontFour Master Fund, Ltd. filed a stockholder class action complaint in the Court of Chancery of the State of Delaware against defendants Brook Taube, Seth Taube, Jeff Tonkel, Mark Lerdal, Karin Hirtler-Garvey, John E. Mack, Arthur
S. Ainsberg, MDLY, Sierra and the Company, alleging that the individuals named as defendants breached their fiduciary duties to the Company&#146;s stockholders in connection with the Medley Mergers, and that MDLY and Sierra aided and abetted those
alleged breaches of fiduciary duties. As we discuss in more detail in the attached proxy statement, the Delaware Chancery Court issued a Memorandum Opinion on March&nbsp;11, 2019 (the &#147;Opinion&#148;) holding, in part, that the Company&#146;s
directors violated their fiduciary duties in approving the Medley Mergers. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">As a result of these recent events, we believe
meaningful changes to the composition of the Board are necessary in order to ensure that the Company is being run in a manner consistent with your best interests. While we were pleased that the Board appointed David A. Lorber and Lowell W. Robinson
on April&nbsp;15, 2019 to fill the vacancies resulting from the resignations of Mark Lerdal and John E. Mack, we believe two additional independent directors are necessary to protect your interests and your investment in the Company. As such, we
urge you to act now to: </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:7%; margin-right:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>Vote FOR our competing slate of two director nominees, nominated by Highland
Select Equity Master Fund, L.P., a member of the NexPoint Group, and named in the attached proxy statement and proxy card, to serve on the Board for the terms specified in the attached proxy statement. </B></P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">We believe that the Board will greatly benefit from the addition of directors with relevant skill sets and a shared objective
of enhancing value for the benefit of all MCC stockholders. The individuals that we have nominated are highly-qualified, capable and ready to serve the stockholders of MCC. Even though we are seeking to become the Company&#146;s external investment
adviser, we believe our nominees &#150; who are unaffiliated with any members of the NexPoint Group &#150; will act solely in the best interests of all MCC stockholders. We further believe that electing our two director nominees will deliver an
appropriate message to the remaining directors who approved the Medley Mergers regarding their obligations to the Company&#146;s stockholders. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">While we make no recommendation with respect to the ratification of the appointment of Ernst&nbsp;&amp; Young LLP to serve as
the Company&#146;s independent registered public accounting firm for the fiscal year ending September&nbsp;30, 2019, we intend to vote our shares FOR this proposal. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">To assist you with your decision, we have provided a set of questions and answers beginning on page 4 of the attached proxy
statement (the &#147;Q&amp;A&#148;). The NexPoint Group urges you to carefully consider the Q&amp;A </P>
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together with the other information contained in the attached proxy statement and then support its efforts by voting your shares today by signing, dating and returning the enclosed BLUE proxy
card in the postage paid envelope provided or vote through the Internet (which is an option for voting on behalf of beneficial owners but not for voting by stockholders of record of shares of Common Stock). The attached proxy statement and BLUE
proxy card are first being furnished to the stockholders on or about May&nbsp;13, 2019. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Your vote is important. Please
DISCARD any WHITE proxy card you have received from the Company. If you have already sent a proxy card furnished by the Company&#146;s management to the Company, we urge you to revoke it and change your vote by signing, dating and returning today
the enclosed BLUE proxy card in the postage paid envelope provided. ONLY YOUR LATEST DATED PROXY CARD COUNTS! </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Thank you for your support,</P></TD></TR>
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<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">NexPoint Advisors, L.P.</P></TD></TR>
</TABLE></DIV> <P STYLE="font-size:24pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000">&nbsp;</P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">If you have any questions or need assistance voting your shares of Common Stock, please call: </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">D.F. King&nbsp;&amp; Co., Inc. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">48
Wall Street, 22<SUP STYLE="font-size:85%; vertical-align:top">nd</SUP> Floor </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">New York, NY&nbsp;10005 </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Stockholders Call Toll&#150;Free at: <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">866-342-2676</FONT></FONT> </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Email: <U>MCC@dfking.com</U> </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">You
may also contact the NexPoint Group via email at <U>Medley@NexPointAdvisors.com</U>. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PROXY STATEMENT OF THE NEXPOINT GROUP </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>IN CONNECTION WITH </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>THE
2019 ANNUAL MEETING OF STOCKHOLDERS OF </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>MEDLEY CAPITAL CORPORATION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>TO BE HELD ON JUNE&nbsp;4, 2019 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>12:00 P.M., EASTERN TIME </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>DATED MAY&nbsp;13, 2019 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">This Proxy Statement (the &#147;Proxy Statement&#148;) is being furnished to stockholders of Medley Capital Corporation
(&#147;MCC&#148; or the &#147;Company&#148;) by the NexPoint Group (as defined below), who beneficially own, in the aggregate, 335,100 shares of the Company&#146;s common stock, par value $0.001 per share (&#147;Common Stock&#148;). <B>We are
writing to you because we believe that, for the reasons described herein, the Company&#146;s current board of directors (the &#147;Board&#148;) (aside from the recently appointed directors) has failed to act in your best interest.</B> As a result,
to protect your interests and your investment in the Company, we urge you to elect new directors for the Company at the upcoming annual meeting of stockholders scheduled to be held on June&nbsp;4, 2019, at 12:00&nbsp;p.m., Eastern time, at the
offices of Eversheds Sutherland (US) LLP located at 1114 Avenue of the Americas, 40th Floor, New York, New York 10036, including any adjournments or postponements thereof and any meeting that may be called in lieu thereof by the Company (the
&#147;Annual Meeting&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">We encourage you to vote your shares by attending the Annual Meeting, through the Internet
(which is an option for voting on behalf of beneficial owners but not for voting by stockholders of record of shares of Common Stock), or by granting a proxy (i.e., authorizing someone to vote your shares). If you properly sign and date the
accompanying BLUE proxy card, or authorize your proxy through the Internet (which is an option for voting on behalf of beneficial owners but not for voting by stockholders of record of shares of Common Stock), and your vote is received in time for
voting at the Annual Meeting, the persons named as proxies will vote your shares in the manner that you specify. This Proxy Statement and the enclosed BLUE proxy card are first being furnished to stockholders on or about May&nbsp;13, 2019. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">This Proxy Statement and the enclosed BLUE proxy card are being furnished to stockholders of the Company by the NexPoint Group
in connection with the solicitation of proxies from the Company&#146;s stockholders for the following proposals: </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="8%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">1.</P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify">To vote FOR a competing slate of two (2)&nbsp;director nominees, nominated by the NexPoint Group and named
in this Proxy Statement and in the proxy card, to serve on the Board each for a term expiring in 2022; </P></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="8%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">2.</P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify">To vote FOR the ratification of the appointment of Ernst&nbsp;&amp; Young LLP to serve as the Company&#146;s
independent registered public accounting firm for the fiscal year ending September&nbsp;30, 2019; and </P></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="8%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">3.</P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify">To transact such other business as may properly come before the Annual Meeting. </P></TD></TR></TABLE>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The Company has set the close of business on April&nbsp;9, 2019 as the record date (the &#147;Record Date&#148;) for
determining stockholders entitled to notice of and to vote at the Annual Meeting. The principal executive offices of the Company are located at 280 Park Avenue, 6th Floor East, New York, NY 10017. Stockholders of record at the close of business on
the Record Date will be entitled to vote at the Annual Meeting. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">According to the Company, as of the Record Date there
were 54,474,211 shares (&#147;Shares&#148;) of Common Stock outstanding and entitled to vote. Holders of the Shares are entitled to one vote per Share. As of the Record Date, the NexPoint Group beneficially owned, in the aggregate, 335,100 Shares.
The NexPoint Group intends to vote such Shares for the election of the slate of director nominees nominated by the NexPoint Group. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The NexPoint Group (or &#147;we&#148;) consists of NexPoint Advisors, L.P. (&#147;NexPoint&#148;), NexPoint Advisors GP, LLC
(&#147;NexPoint Advisors GP&#148;), Highland Global Allocation Fund (&#147;Global Fund&#148;), Highland Capital </P>
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Management Fund Advisors, L.P. (&#147;Highland Fund Advisors&#148;), Strand Advisors XVI, Inc. (&#147;Strand XVI&#148;), Highland Select Equity Master Fund, L.P. (&#147;Select Fund&#148;),
Highland Select Equity Fund GP, L.P. (&#147;Select GP&#148;), Highland Select Equity GP, LLC (&#147;Select LLC&#148;), Highland Capital Management, L.P. (&#147;Highland Capital&#148;), Strand Advisors, Inc. (&#147;Strand&#148;) and
Mr.&nbsp;James&nbsp;D. Dondero. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">THIS SOLICITATION IS BEING MADE BY THE NEXPOINT GROUP AND NOT ON BEHALF OF THE BOARD OR
MANAGEMENT OF THE COMPANY. THE NEXPOINT GROUP IS NOT AWARE OF ANY OTHER MATTERS TO BE BROUGHT BEFORE THE ANNUAL MEETING EXCEPT AS DISCUSSED HEREIN OR IN THE COMPANY&#146;S PROXY STATEMENT. SHOULD OTHER MATTERS, OF WHICH THE NEXPOINT GROUP IS NOT
MADE AWARE OF WITHIN A REASONABLE TIME BEFOREHAND, BE BROUGHT BEFORE THE ANNUAL MEETING, THE PERSONS NAMED AS PROXIES IN THE ENCLOSED BLUE PROXY CARD WILL VOTE ON SUCH MATTERS IN THEIR DISCRETION. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">IF YOU HAVE ALREADY GIVEN A PROXY TO THE COMPANY&#146;S MANAGEMENT, YOU MAY REVOKE THAT PROXY AND VOTE IN FAVOR OF THE
NEXPOINT GROUP&#146;S NOMINEES BY SIGNING, DATING AND RETURNING THE ENCLOSED BLUE PROXY CARD TODAY. THE LATEST DATED PROXY IS THE ONLY ONE THAT COUNTS. ANY PROXY MAY BE REVOKED AT ANY TIME BY (1)&nbsp;DELIVERING A WRITTEN NOTICE OF REVOCATION AT ANY
TIME PRIOR TO 12:00 A.M. EASTERN TIME, ON JUNE&nbsp;3, 2019, TO THE NEXPOINT GROUP, C/O D.F. KING&nbsp;&amp; CO., INC. (&#147;D.F.&nbsp;KING&#148;), 48 WALL STREET, 22ND FLOOR, NEW YORK, NY 10005, WHICH IS ASSISTING THE NEXPOINT GROUP IN THIS
SOLICITATION, OR BY DELIVERING A WRITTEN NOTICE OF REVOCATION TO ALLIANCE ADVISORS, LLC, THE COMPANY&#146;S PROXY SOLICITOR, AT ALLIANCE ADVISORS, LLC, ATTN: TABULATION DEPARTMENT, 200 BROADACRES DRIVE, 3RD&nbsp;FLOOR, BLOOMFIELD, NEW JERSEY 07003,
(2) SUBMITTING A PROPERLY EXECUTED, LATER-DATED PROXY CARD, OR BY VOTING VIA INTERNET OR TELEPHONE (IF AVAILABLE) AT A LATER TIME OR (3)&nbsp;ATTENDING THE ANNUAL MEETING IN PERSON AND VOTING YOUR SHARES AT THE ANNUAL MEETING. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">YOUR VOTE IS IMPORTANT, NO MATTER HOW MANY OR HOW FEW SHARES YOU OWN. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">If you are a &#147;stockholder of record&#148; (i.e., you hold Shares directly in your name), you may vote your Shares, by
signing, dating and mailing the enclosed BLUE proxy card to the NexPoint Group, c/o D.F. King, in the enclosed postage-paid envelope today. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>Your vote is important. Please DISCARD any WHITE proxy card you have received from the Company. If you have already sent a
proxy card furnished by the Company&#146;s management to the Company, we urge you to change your vote by signing, dating and returning the enclosed BLUE proxy card or, if your Shares are held by a brokerage firm or bank, by following the
instructions in the enclosed BLUE voting form provided by your broker or bank. Only your latest dated proxy card counts! </B></P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Any stockholder of record participating in the Annual Meeting may vote at such time whether or not he or she has previously
voted his or her Shares. If your Shares are registered in your own name, please vote your Shares today by signing, dating and returning the BLUE proxy card in the postage paid envelope provided. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">If any of your Shares were held in the name of a brokerage firm, bank, bank nominee or other institution on the Record Date,
you are considered the beneficial owner of the Shares, and these proxy materials, together with a BLUE voting form, are being forwarded to you by your broker or bank. As a beneficial owner, you must instruct your broker, trustee or other
representative how to vote. Your broker cannot vote your Shares on your behalf without your instructions. Accordingly, please provide your broker or bank with voting instructions by following the instructions on the enclosed BLUE voting form. In
addition, if you hold your Shares in a brokerage or bank account, your broker or bank may allow you to provide your voting instructions by telephone or through the Internet. Please follow the instructions on the enclosed BLUE voting form. The
NexPoint Group urges you to confirm your instructions in writing to the person responsible for your account and to provide a copy of such instructions to the NexPoint Group, c/o D.F. King at the address and telephone numbers set forth below, and on
the back cover of this Proxy Statement, so that we may be aware of all instructions and can attempt to ensure that such instructions are followed. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of
Stockholders to Be Held on June&nbsp;4, 2019. </B></P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">This Proxy Statement may be viewed online at www.MedleyCapitalVote.com, together with
any additional soliciting materials relating to the Annual Meeting issued by the NexPoint Group. Such materials, including this Proxy Statement, will be available to stockholders at www.MedleyCapitalVote.com through the conclusion of the Annual
Meeting. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">If you have any questions or need assistance voting your Shares, please call: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">D.F. King&nbsp;&amp; Co., Inc. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">48
Wall Street, 22<SUP STYLE="font-size:85%; vertical-align:top">nd</SUP> Floor </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">New York, NY&nbsp;10005 </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Stockholders Call Toll&#150;Free at: <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">866-342-2676</FONT></FONT> </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Email: <U>MCC@dfking.com</U> </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">You
may also contact the NexPoint Group via email at <U>Medley@NexPointAdvisors.com</U>. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">REASONS FOR SOLICITATION: Q&amp;A </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B><I>Why is the NexPoint Group sending me this Proxy Statement? </I></B></P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Pursuant to the Company&#146;s charter and bylaws, the Board is divided into three classes, designated Class&nbsp;I,
Class&nbsp;II, and Class&nbsp;III. Directors are elected for a staggered term of three years each, with a term of office of one of the three classes of directors expiring each year. At the Annual Meeting, two Class&nbsp;II directors will be elected
for a three year term. Mr.&nbsp;Seth Taube and Mr.&nbsp;Arthur&nbsp;S. Ainsberg, current directors on the Board whose terms are expiring at the Annual Meeting, have been nominated by the Company for
<FONT STYLE="white-space:nowrap">re-election</FONT> for a three year term expiring in 2022. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">We have nominated
Mr.&nbsp;Stephen&nbsp;A. Mongillo and Mr.&nbsp;Mark&nbsp;T. Goglia for election to the Board for a three year term expiring in 2022. We are seeking representation on the Board because we believe that the Board will benefit from the addition of
directors with relevant skill sets and a shared objective of enhancing value for the benefit of all MCC stockholders. While we were pleased that the Board appointed David A. Lorber and Lowell W. Robinson on April&nbsp;15, 2019 to fill the vacancies
resulting from the resignations of Mark Lerdal and John E. Mack, we believe two additional independent directors are necessary to protect your interests and your investment in the Company. The individuals that we have nominated are highly-qualified,
capable and ready to serve the stockholders of MCC. Even though we are seeking to become the Company&#146;s external investment adviser, we believe our nominees &#150; who are unaffiliated with any members of the NexPoint Group &#150; will act
solely in the best interests of all MCC stockholders. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The election of a director requires the affirmative vote of a
plurality of the votes cast by holders of Common Stock as of the Record Date present or represented by proxy at the Annual Meeting. This means that if there are more candidates for election than there are positions on the Board to be filled, the two
candidates receiving the most votes will be elected. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Stockholders may not cumulate their votes. A stockholder can vote
for or withhold his or her vote from each nominee. If you vote &#147;Withhold Authority&#148; with respect to a nominee, your Shares will not be voted with respect to the person indicated. Abstentions and &#147;broker
<FONT STYLE="white-space:nowrap">non-votes&#148;</FONT> are not considered votes cast for purposes of the election of directors and, therefore, will have no effect on the outcome of such election. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B><I>Why is the NexPoint Group nominating directors? </I></B></P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The NexPoint Group believes that the Board, aside from the recently appointed directors, has failed to act in your best
interests by, among many other things, failing to negotiate on your behalf and succumbing to the interests of Brook and Seth Taube. We further believe the Medley Mergers (as defined below) would enrich Medley Management Inc. (particularly its <FONT
STYLE="white-space:nowrap">co-CEOs</FONT> Messrs. Brook and Seth Taube), at the expense of MCC stockholders. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">On
August&nbsp;9, 2018, MCC, Sierra Income Corporation (&#147;Sierra&#148;), and Medley Management Inc. (&#147;MDLY&#148;) jointly announced the execution of: (1)&nbsp;an Agreement and Plan of Merger (the &#147;MCC Merger Agreement&#148;) by and
between MCC and Sierra, pursuant to which MCC will, on the terms and subject to the conditions set forth in the MCC Merger Agreement, merge with and into Sierra, with Sierra as the surviving company in the merger (the &#147;MCC/Sierra Merger&#148;);
and (2)&nbsp;an Agreement and Plan of Merger (the &#147;MDLY Merger Agreement&#148;) by and among MDLY, Sierra, and Sierra Management Inc., a wholly-owned subsidiary of Sierra (&#147;Sierra Management&#148;), pursuant to which MDLY will, on the
terms and subject to the conditions set forth in the MDLY Merger Agreement, merge with and into Sierra Management, with Sierra Management as the surviving company in the merger (the &#147;MDLY/Sierra Merger&#148; and together with the MCC/Sierra
Merger, the &#147;Medley Mergers&#148;). </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Subject to the terms and conditions of the MCC Merger Agreement and the MDLY
Merger Agreement, the Medley Mergers will result in the formation of a combined BDC (the &#147;Surviving Company&#148;) which will in turn wholly own a registered investment adviser. In the MCC/Sierra Merger, shares of MCC Common Stock would be
converted into the right to receive 0.8050 shares of Sierra Common Stock. In the MDLY/Sierra </P>
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Merger, each share of MDLY Class&nbsp;A Common Stock issued and outstanding immediately prior to the effective time of the MDLY/Sierra Merger (other than Dissenting Shares and Excluded Shares (as
defined in the MDLY Merger Agreement)) would be converted into the right to receive (A) 0.3836 shares of Sierra Common Stock; plus (B)&nbsp;cash in an amount equal to $3.44 per share. In addition, the holders of MDLY Class&nbsp;A Common Stock issued
and outstanding on the applicable record dates would have the right to receive $0.35 per share of the First Special Dividend (as defined in the MDLY Merger Agreement) (or other payments) and $0.30 per share of the Second Special Dividend (as defined
in the MDLY Merger Agreement) (or other payments), as well as regularly scheduled dividends through closing of the MDLY/Sierra Merger. Each share of MDLY Class&nbsp;B Common Stock issued and outstanding immediately prior to the effective time of the
MDLY/Sierra Merger (other than Dissenting Shares) would be canceled without consideration therefor. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">The Medley Mergers siphon over $100&nbsp;million of cash from the Surviving Company in favor of the MDLY
stockholders;<SUP STYLE="font-size:85%; vertical-align:top">1</SUP> </P></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Under the Medley Mergers, more than $75&nbsp;million of that cash is being paid to Messrs. Brook and Seth
Taube, MDLY&#146;s <FONT STYLE="white-space:nowrap">co-CEOs;</FONT> </P></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">We believe the Medley Mergers significantly undervalue MCC and thus dilute MCC&#146;s stockholders; and
</P></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">We believe the valuation determination in the Medley Mergers is particularly unfair to MCC stockholders
because they are contributing tangible assets with audited market values at a steep discount in exchange for MDLY&#146;s management contract contribution at an enormous premium (a questionable intangible asset that NexPoint believes is likely to
drop precipitously in value <FONT STYLE="white-space:nowrap">post-MCC/Sierra</FONT> Merger). </P></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">On
January&nbsp;24, 2019, NexPoint privately submitted an alternative transaction proposal (the &#147;January 24 NexPoint Proposal&#148;) to the Special Committee of the Board of Directors of MCC (the &#147;MCC Special Committee&#148;). No one from MCC
(including the Special Committee) responded to or even acknowledged receipt of the January&nbsp;24 NexPoint Proposal. Despite the MCC Special Committee&#146;s failure to acknowledge the January&nbsp;24 NexPoint Proposal, NexPoint privately submitted
an updated proposal to the MCC Special Committee, as well as the Special Committee of the Sierra Board (&#147;Sierra Special Committee&#148;) on January&nbsp;31, 2019 (the &#147;January 31 NexPoint Proposal&#148;). In the January&nbsp;31 NexPoint
Proposal, NexPoint expressed its willingness to be the external manager of the combined company in the MCC/Sierra Merger. NexPoint went public with the January&nbsp;31 NexPoint Proposal on February&nbsp;1, 2019. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">On February&nbsp;11, 2019, a stockholder class action lawsuit was commenced in the Delaware Chancery Court by FrontFour
Capital Group LLC and FrontFour Master Fund, Ltd. (<I>FrontFour Capital Group LLC, et al. v. Brook Taube, et al.</I>, Case No.&nbsp;2019-0100) (the &#147;Delaware Action&#148;), against defendants Brook Taube, Seth Taube, the other members of the
Board of Directors of MCC, MDLY and others alleging (among other things) that members of the Board of Directors breached their fiduciary duties in connection with the approval of the Medley Mergers as well as their fiduciary duty of disclosure. On
March&nbsp;11, 2019, the Delaware Chancery Court issued a Memorandum Opinion (&#147;Opinion&#148;), holding (among other things) that MCC&#146;s directors violated their fiduciary duties in entering into the Medley Mergers and requiring MCC to issue
corrective disclosures in accordance with the Opinion and to permit the stockholders sufficient time in advance of any stockholder vote to digest the information. </P>
<P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><SUP
STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;&nbsp;NexPoint determined this value based on the following: (i)&nbsp;aggregate cash per share from Sierra to MDLY of $4.09 to unaffiliated MDLY stockholders and $3.79 to affiliated MDLY
stockholders, as disclosed in the Company&#146;s Proxy Statement filed December&nbsp;21, 2018; MDLY Class&nbsp;A shares outstanding of 5,693,814, as disclosed in MDLY&#146;s Form <FONT STYLE="white-space:nowrap">10-Q</FONT> filed November&nbsp;14,
2018; plus an additional 24,839,302 MDLY shares to be issued immediately preceding the MDLY/Sierra Merger, resulting in total MDLY shares of 30,533,116 eligible to receive the $4.09 per share cash to unaffiliated MDLY stockholders and $3.79 to
affiliated MDLY stockholders from Sierra and total cash to MDLY stockholders of $117,428,654. The number of additional MDLY shares to be issued in connection with the MDLY/Sierra Merger is found on page 237 of the Company&#146;s Proxy Statement
filed December&nbsp;21, 2018. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">In its Opinion, we believe the Delaware Chancery Court provided a perfect
summary of the actions (and inactions) of this Board, which includes Mr.&nbsp;Seth Taube and Mr.&nbsp;Arthur&nbsp;S. Ainsberg, the two MCC directors up for <FONT STYLE="white-space:nowrap">re-election</FONT> at the Annual Meeting: </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:7%; margin-right:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B><I>[T]he Taube brothers [dominated] the process</I></B> by: setting the deal structure; controlling the
flow of information; withholding information; withholding details about [MDLY]&#146;s own value and the existence of offers from third-parties; and locking out &#147;interlopers&#148; through standstill agreements, deal protections, and an
aggressive timeline; rushing the committee&#146;s deliberations. <B><I>In the end, the Special Committee allowed [MDLY] to extract a huge premium while Medley Capital stockholders received none.</I></B> </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:7%; margin-right:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The Special Committee deferred to the Taube brothers although the committee had ample negotiating
leverage&#151;the ability to terminate the Management Agreement or simply reject the deal, <B><I>either of which would have had devastating consequences for [MDLY]</I></B>. Terminating the Management Agreement would trigger Fortress&#146;s rights
under the joint venture. Rejecting the deal would foreclose [MDLY]&#146;s only viable solution to the enormous financial pressure they labored under. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">&#133; </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:7%; margin-right:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">[T]he timing, structure, initiation, and negotiation of<B><I> the Proposed Transactions</I></B> <B><I>were
conceived for the purpose of&#151;and did&#151;advance the Taubes&#146; interest at the expense of Medley Capital&#146;s other stockholders</I></B>. In the events leading up to the Proposed Transactions, the Taube brothers created an informational
vacuum, which they then exploited. The Special Committee was not truly independent and did not negotiate at arm&#146;s length. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:7%; margin-right:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><I>FrontFour Capital Grp. LLC, et al. v. Taube, et al.</I>, C.A. No. 2019-0100-KSJM, at <FONT
STYLE="white-space:nowrap">63-64,</FONT> 66 (Del. Ch. Mar. 11, 2019) (emphasis added). </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">In summary, we believe the Medley
Mergers were designed to, and indeed would, enrich MDLY (particularly its <FONT STYLE="white-space:nowrap">co-CEOs,</FONT> Messrs. Brook and Seth Taube), at the expense of MCC stockholders. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B><I>What are NexPoint&#146;s competing proposals? </I></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">NexPoint has made two separate proposals to the MCC Special Committee: (i)&nbsp;to become the external manager of MCC (the
&#147;MCC Stand Alone Proposal&#148;) and (ii)&nbsp;in the event the Board prefers to merge MCC and Sierra, to become the external manager of the combined MCC and Sierra (the &#147;Combined MCC and Sierra Proposal&#148; and together with the MCC
Stand Alone Proposal, the &#147;NexPoint Proposals&#148;). </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The MCC Stand Alone Proposal (described in more detail below)
provides nearly $68.5&nbsp;million of consideration that inures directly to the benefit of MCC&#146;s stockholders, including $10&nbsp;million of immediate cash, $30&nbsp;million in share purchases and over $28.5&nbsp;million of aggregate fee and
expense savings over the next five years. In addition, the MCC Stand Alone Proposal eliminates the inappropriate valuation disparity present in the MCC/Sierra Merger. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The Combined MCC and Sierra Proposal (also described in more detail below) provides nearly $130&nbsp;million of consideration
that inures directly to the benefit of MCC&#146;s stockholders, including $25&nbsp;million of immediate cash, $50&nbsp;million in share purchases and over $55&nbsp;million of aggregate fee and expense savings over the next five years. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Finally, both the MCC Stand Alone Proposal and the Combined MCC and Sierra Proposal also ensure that more than
$100&nbsp;million of cash is properly retained by MCC and Sierra as opposed to being paid as merger consideration to MDLY&#146;s stockholders. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B><I>What are the terms of the MCC Stand Alone Proposal? </I></B></P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The MCC Stand Alone Proposal consists of the following terms, all of which NexPoint remains willing to negotiate with the
Board: </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>1.</I></P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><I><U>An External Investment Advisory Agreement between MCC and NexPoint:</U> </I></P></TD></TR></TABLE>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Reduced annualized management fee of 1.25% on the gross assets of the Company. </P></TD></TR></TABLE>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Reduced incentive fee of 15% on income and capital gains (with retention of the current hurdle rate of
2.1875%). </P></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Implementation of an expense cap of 0.50%, meaning that NexPoint will pay, absorb or reimburse the ordinary
operating expenses of the Company (the &#147;Ordinary Operating Expenses&#148;), to the extent necessary so that, for any fiscal year, the Company&#146;s Ordinary Operating Expenses do not exceed 0.50% per annum of the Company&#146;s average daily
gross assets. </P></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">We expect these terms to result in an aggregate annual savings to the Company&#146;s stockholders of
approximately $5.7&nbsp;million, or $28.5&nbsp;million over the next five years (based on assets as of September&nbsp;30, 2018), over the Company&#146;s current fee arrangement and expense reimbursement. </P></TD></TR></TABLE>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Replaces underperforming management with NexPoint management, whose qualifications are described below.
</P></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#149;</P></TD>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Ensures that Company cash is not paid to MDLY in the Medley Mergers. </P></TD></TR></TABLE>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">These savings would inure directly to the benefit of the Company&#146;s stockholders, and we believe will help eliminate some
of the discount in the Company&#146;s shares (we believe a large part of the remaining discount results simply from MDLY being the Company&#146;s manager, which the MCC Stand Alone Proposal also addresses). </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Finally, we believe that remaining an externally managed Business Development Company (&#147;BDC&#148;) mitigates potential
conflicts of interest in a manner that benefits stockholders and is responsive to the concerns voiced by the Delaware Chancery Court and many large stockholders. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>2.</I></P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><I><U>A $10&nbsp;million payment from NexPoint to the Company</U> </I></P></TD></TR></TABLE>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Upon execution of the investment advisory agreement with NexPoint, we will make a
<FONT STYLE="white-space:nowrap">one-time</FONT> payment of $10&nbsp;million to MCC. The $10&nbsp;million injection would inure directly to the benefit of MCC&#146;s stockholders and would represent the equivalent of a 5.7% increase of $0.18 on a
per share market value of $3.22 (based on assets as of September&nbsp;30, 2018). </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>3.</I></P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><I><U>NexPoint will purchase at least $30&nbsp;million of MCC shares</U> </I></P></TD></TR></TABLE>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Upon execution of the investment advisory agreement with NexPoint, NexPoint and its affiliates will purchase at least
$30&nbsp;million of MCC shares; <FONT STYLE="white-space:nowrap">one-third</FONT> of which would be made during the 60 days following the transaction, an additional <FONT STYLE="white-space:nowrap">one-third</FONT> of which would be made during the
following 90 days, and the final <FONT STYLE="white-space:nowrap">one-third</FONT> of which would be made during the following 90 days, in each case either in open market purchases at the then current market price, if below net asset value
(&#147;NAV&#148;), or directly from the Company at NAV. We believe these purchases will further align our interests with stockholders, and will provide liquidity to support trading prices of the Common Stock. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B><I>What are the terms of the Combined MCC and Sierra Proposal? </I></B></P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The Combined MCC and Sierra Proposal consists of the following terms, all of which NexPoint remains willing to negotiate with
the Board: </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>1.</I></P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><I><U>An External Investment Advisory Agreement between a combined MCC and Sierra, on the one hand, and
NexPoint on the other:</U> </I></P></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Reduced annualized management fee of 1.25% on the gross assets of the combined MCC and Sierra.
</P></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Reduced incentive fee of 15% on income and capital gains (with retention of the current hurdle rate of
2.1875%). </P></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#149;</P></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Implementation of an expense cap of 0.50%, meaning that NexPoint will pay, absorb or reimburse the Ordinary
Operating Expenses of the combined MCC and Sierra to the same extent as under the MCC Stand Alone Proposal. </P></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#149;</P></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">We expect these terms to result in an aggregate annual savings to the combined MCC and Sierra stockholders of
approximately $11&nbsp;million, or $55&nbsp;million over the next five years (based on assets as of September&nbsp;30, 2018), over the combined MCC and Sierra current fee arrangement and expense reimbursement. </P></TD></TR></TABLE>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#149;</P></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Replaces underperforming management with NexPoint management, whose qualifications are described below.
</P></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#149;</P></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Ensures that more than $100&nbsp;million of cash is properly retained by the combined MCC and Sierra as
opposed to being paid as merger consideration to MDLY&#146;s stockholders. </P></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">These savings would inure
directly to the benefit of the combined MCC and Sierra&#146;s stockholders, and we believe will help eliminate some of the discount in the combined MCC and Sierra&#146;s shares. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Finally, we believe that remaining an externally managed BDC mitigates potential conflicts of interest in a manner that
benefits stockholders and is responsive to the concerns voiced by the Delaware Chancery Court and many large stockholders. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>2.</I></P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><I><U>A $25</U><U></U><U>&nbsp;million payment from NexPoint to the combined MCC and Sierra</U>
</I></P></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Upon execution of the investment advisory agreement with NexPoint, we will make a <FONT
STYLE="white-space:nowrap">one-time</FONT> payment of $25&nbsp;million to the combined MCC and Sierra. The $25&nbsp;million injection would inure directly to the benefit of the combined MCC and Sierra stockholders and would represent the equivalent
of a 14.3% increase of $0.46 on MCC&#146;s per share market value of $3.22 (based on assets as of September&nbsp;30, 2018) and 3.6% increase of $0.26 on Sierra&#146;s per share value of $7.05. </P>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>3.</I></P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><I><U>NexPoint will purchase at least $50</U><U></U><U>&nbsp;million of the combined MCC and Sierra
shares</U> </I></P></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Upon execution of the investment advisory agreement with NexPoint, NexPoint and its
affiliates will purchase at least $50&nbsp;million of the combined MCC and Sierra&#146;s shares; <FONT STYLE="white-space:nowrap">one-third</FONT> of which would be made during the 60&nbsp;days following the transaction, an additional <FONT
STYLE="white-space:nowrap">one-third</FONT> of which would be made during the following 90 days, and the final <FONT STYLE="white-space:nowrap">one-third</FONT> of which would be made during the following 90 days, in each case either in open market
purchases at the then current market price, if below NAV, or directly from the company at NAV. We believe these purchases will further align our interests with stockholders, and will provide liquidity to support trading prices of the combined MCC
and Sierra&#146;s common stock. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">These purchases would be made in addition to the share repurchase program proposed to be
conducted by the combined MCC and Sierra. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B><I>Can you tell me more about NexPoint and its qualifications? </I></B></P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Our team not only has decades of experience in managing credit investments and originations, but we believe it also has
unrivaled expertise in maximizing value in stressed and distressed investments and is therefore well positioned to maximize the value of the Company&#146;s portfolio. In addition, as one of the country&#146;s largest and most experienced credit
managers, we believe we are well positioned to successfully manage MCC&#146;s portfolio of secured floating rate instruments. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">NexPoint-advised funds include: </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="3%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#149;</P></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">NexPoint Strategic Opportunities Fund&#146;s (&#147;NHF&#148;), which has returned a cumulative 151.8% from
September 2012 through March&nbsp;31, 2019, while MCC is down over 51.8% during the same time period. </P></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">NexPoint Residential Trust, Inc. (&#147;NXRT&#148;), which spun out from NHF in 2015, has returned 226.1%
since the <FONT STYLE="white-space:nowrap">spin-off.</FONT> </P></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="3%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#149;</P></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">NexPoint Capital, Inc., the NexPoint-advised <FONT STYLE="white-space:nowrap">non-traded</FONT> BDC, has
returned 33.1% since inception (September 2014). </P></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B><I>Will NexPoint&#146;s Nominees vote in favor of the NexPoint
Proposals? </I></B></P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">NexPoint&#146;s Nominees have been selected because we believe they will act in the best interests of
all stockholders. While we were pleased that the Board appointed David A. Lorber and Lowell W. Robinson on April&nbsp;15, 2019 to fill the vacancies resulting from the resignations of Mark Lerdal and John E. Mack, we believe two additional
independent directors are necessary to protect your interests and your investment in the Company. There is no agreement or understanding pursuant to which NexPoint&#146;s Nominees have agreed to vote in favor of the NexPoint Proposals. While we
believe our proposals are in the best interest of stockholders, our Nominees, together with the rest of the Board, will evaluate the terms of any investment advisory contract in accordance with the requirements of the Investment Company Act of 1940,
as amended (the &#147;1940 Act&#148;) and their fiduciary duties. Any such appointment will be subject to Board approval. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">In order for the Company to appoint NexPoint as its investment adviser, ultimately both the Board and the Company&#146;s
stockholders would be required to approve an investment advisory agreement between the Company and NexPoint in accordance with the requirements of the 1940 Act. After conducting appropriate due diligence, the Board could appoint NexPoint as an
investment adviser on a temporary basis (for up to 150 days) pending stockholder approval and terminate the investment advisory agreement with MCC Advisors LLC. To obtain stockholder approval of the appointment of NexPoint as an investment adviser
for the Company, the Board would first be required to approve an investment advisory agreement with NexPoint and then to recommend it for approval by stockholders. The Board would then call a special meeting of stockholders to vote on the investment
advisory agreement. If stockholders approved the investment advisory agreement with NexPoint at that meeting, NexPoint would then be appointed as the Company&#146;s investment adviser on a <FONT STYLE="white-space:nowrap">non-temporary</FONT> basis.
Stockholders are not being asked at the Annual Meeting to approve an investment advisory agreement with NexPoint. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">If
elected, NexPoint believes its director nominees will promptly work to maximize value for stockholders. However, there can be no assurances that NexPoint&#146;s director nominees will appoint NexPoint as the Company&#146;s investment adviser and any
such appointment will be subject to Board approval and, ultimately, approval by the Company&#146;s stockholders. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Even if
the NexPoint Group&#146;s Nominees are elected to the Board, they are not required to approve an investment advisory agreement with NexPoint. Any approval by the Board of an investment advisory agreement with NexPoint as discussed above is subject
to the directors&#146; duties as directors. For example, under Section&nbsp;15(c) of the 1940 Act, it is the duty of the Company&#146;s directors to request and evaluate such information as may reasonably be necessary to evaluate the terms of any
investment advisory contract. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B><I>What is NexPoint asking me to do? </I></B></P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">For the reasons set forth above, the NexPoint Group believes the Company&#146;s stockholders should vote in favor of the
NexPoint Group&#146;s nominees to hold the Board and Company management accountable for its conduct. The NexPoint Group believes, based on the significant experience of the director nominees in the financial services industry, including
Mr.&nbsp;Goglia&#146;s significant legal experience advising boards of directors and Mr.&nbsp;Mongillo&#146;s significant public company board experience, that its nominees are committed to upholding their fiduciary duties to the stockholders of the
Company and maximizing stockholder value. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>As a result, to protect your interest and maximize the value of your
investment in the Company, the NexPoint Group urges you to reject the MCC Board&#146;s director nominees, Mr.&nbsp;Seth Taube and Mr.&nbsp;Arthur&nbsp;S. Ainsberg, as we believe they have historically demonstrated their inability to do what&#146;s
in the best interest of stockholders, by voting FOR the NexPoint Group&#146;s competing slate of director nominees. </B></P>
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 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000">&nbsp;</P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">PROPOSAL 1 </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">ELECTION OF DIRECTORS
</P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Select Fund, a member of the NexPoint Group, has nominated a slate of two nominees for directors because the NexPoint
Group believes that the current Board, aside from the recently appointed directors, has failed to act in your best interests for the reasons described above. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Select Fund, a member of the NexPoint Group, has nominated Stephen A. Mongillo and Mark T. Goglia (each, a &#147;Nominee&#148;
and collectively, the &#147;Nominees&#148;) for election to the Board at the Annual Meeting. The Nominees must be elected by the affirmative vote of a plurality of the votes cast by holders of Common Stock as of the Record Date present or
represented by proxy at the Annual Meeting. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">For the reasons stated above, the NexPoint Group is seeking your support at
the Annual Meeting to elect the Nominees in opposition to the director nominees nominated by the Board. The NexPoint Group believes that the current Board&#146;s actions demonstrate that it lacks the proper composition to act in your best interests.
While we were pleased that the Board appointed David A. Lorber and Lowell W. Robinson on April&nbsp;15, 2019 to the fill the vacancies resulting from the resignations of Mark Lerdal and John E. Mack, we believe two additional independent directors
are necessary to protect your interests and your investment in the Company. Based on the Nominees&#146; significant experience in the financial services industry, including Mr.&nbsp;Goglia&#146;s significant legal experience advising boards of
directors and Mr.&nbsp;Mongillo&#146;s significant public company board experience, the NexPoint Group believes that the Nominees are committed to maximizing stockholder value. NexPoint&#146;s Nominees have been selected because we believe they will
act in the best interests of all stockholders. There is no agreement or understanding pursuant to which they have agreed to vote in favor of the NexPoint Proposals. While we believe our proposals are in the best interest of stockholders, our
Nominees, together with the rest of the Board, will evaluate the terms of any investment advisory contract in accordance with the requirements of the 1940 Act, and any such appointment will be subject to Board approval and, ultimately, approval by
the Company&#146;s stockholders. For a discussion of the steps that would be required to implement the NexPoint Proposals, please see &#147;Will NexPoint&#146;s Nominees vote in favor of the NexPoint Proposals?&#148; on page 9 of this Proxy
Statement. Even if the Nominees are elected to the Board, they are not required to approve an investment advisory agreement with NexPoint. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">THE NEXPOINT GROUP&#146;S NOMINEES </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The following information sets forth the name, age, business address, present principal occupation, and employment and
material occupations, positions, offices, or employments for the past five years of each of the NexPoint Group&#146;s Nominees. In addition, for each Nominee, the following information sets forth the specific experience, qualifications, attributes,
or skills that led to the conclusion that the Nominee should serve as a director of the Company in light of the Company&#146;s business and structure. The Nominees are also categorized based on whether they would be interested persons, as defined
under the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;), of the Company or not (&#147;Disinterested Persons&#148;). There is no agreement or understanding pursuant to which the NexPoint Group&#146;s Nominees have agreed to
vote in favor of the NexPoint Proposals. Directors that are interested persons are typically affiliated with, or have certain other significant relationships with, a fund&#146;s investment adviser or principal underwriter. Under the 1940 Act, a BDC,
like the Company, is required to have a majority of its board of directors made up of Disinterested Persons and certain types of transactions must be approved by a majority of directors that are Disinterested Persons. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Nominees for a term expiring in 2022 (as Class&nbsp;II Directors of the
Company): </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" ALIGN="center">


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<TD HEIGHT="4" COLSPAN="9" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-left:8pt">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" COLSPAN="9" ALIGN="center" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt; padding-right:2pt"><B>Disinterested Persons</B></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="4" STYLE="BORDER-LEFT:1px solid #000000; padding-left:8pt">&nbsp;</TD>
<TD HEIGHT="4" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="4" COLSPAN="2"></TD>
<TD HEIGHT="4" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="4" COLSPAN="2" STYLE="BORDER-RIGHT:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" STYLE="BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:8pt"><B>Name, Age,
Business<BR>Address</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">
<P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:8pt"><B>Principal&nbsp;Occupation(s)<BR>During&nbsp;Past&nbsp;Five&nbsp;Years</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:8pt"><B>Number&nbsp;of&nbsp;Portfolios&nbsp;in<BR>Fund Complex (as<BR>defined in the
Securities<BR>Exchange Act of 1934, as<BR>amended&nbsp;(the &#147;Exchange<BR>Act&#148;) Overseen by<BR>Nominee for Director</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">
<P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:8pt"><B>Other&nbsp;Directorships/<BR>Trusteeships&nbsp;Held&nbsp;During<BR>Past&nbsp;Five Years</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">
<P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:8pt"><B>Experience,<BR>Qualifications,<BR>Attributes,&nbsp;Skills&nbsp;for<BR>Board Membership</B></P></TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="4" STYLE="BORDER-LEFT:1px solid #000000; padding-left:8pt">&nbsp;</TD>
<TD HEIGHT="4" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="4" COLSPAN="2"></TD>
<TD HEIGHT="4" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="4" COLSPAN="2" STYLE="BORDER-RIGHT:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top" STYLE="BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt">
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.30em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman" ALIGN="justify">Stephen A. Mongillo (58)</P>
<P STYLE="font-size:6pt; margin-top:0pt; margin-bottom:0pt" align="left">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.30em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman" ALIGN="justify">105 Grandview
Avenue</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.30em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman" ALIGN="justify">Rye, NY 10580</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="justify">Chairman and Principal Shareholder, AMPF, Inc., a
wholesale distributor of picture frame mouldings and supplies, from April 2012 until present.</P> <P STYLE="font-size:6pt; margin-top:0pt; margin-bottom:0pt" align="left">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="justify">Managing Director of Icahn Capital LP, the entity through which Carl Icahn managed third-party investment funds, from January 2008 to January
2011.</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:8pt">The Nominee currently oversees no portfolios in the Company&#146;s Fund
Complex.</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:8pt">CVR Energy, Inc. (May 2012&#151;Present); Herc
Holdings, Inc. (July 2016&#151;May 2018); American Railcar Industries, Inc. (March 2009&#151;June 2011); WestPoint International, Inc. (March 2009&#151;January 2011)</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:8pt">Significant public company board
experience, including roles on audit and finance committees; extensive experience in the financial industry.</P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="4" STYLE="BORDER-LEFT:1px solid #000000; padding-left:8pt">&nbsp;</TD>
<TD HEIGHT="4" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="4" COLSPAN="2"></TD>
<TD HEIGHT="4" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000">&nbsp;</TD>
<TD HEIGHT="4" COLSPAN="2" STYLE="BORDER-RIGHT:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top" STYLE="BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt">
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.30em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman" ALIGN="justify">Mark T. Goglia (47)</P>
<P STYLE="font-size:6pt; margin-top:0pt; margin-bottom:0pt" align="left">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.30em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman" ALIGN="justify">8080 Park Lane,
Suite 700</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.30em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman" ALIGN="justify">Dallas, TX 75231</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="justify">Member and Head of Corporate Section, Condon Tobin
Sladek Thornton PLLC, a Dallas, Texas-based law firm, from July 2018 until present;</P> <P STYLE="font-size:6pt; margin-top:0pt; margin-bottom:0pt" align="left">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="justify">Partner, Goglia pllc, Mr.&nbsp;Goglia&#146;s personal law firm, from May 2014 until April 2017 and from January 2018 until June 2018;</P>
<P STYLE="font-size:6pt; margin-top:0pt; margin-bottom:0pt" align="left">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="justify">Partner, Egan Nelson LLP, a law firm, from May 2017 until
December 2017; and</P> <P STYLE="font-size:6pt; margin-top:0pt; margin-bottom:0pt" align="left">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="justify">Partner, Jones Day, a prominent
global law firm, from January 2006 until April 2014.</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:8pt">The Nominee currently oversees no portfolios in the Company&#146;s Fund
Complex.</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:8pt">None</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:8pt">Significant legal experience in
the financial industry and with respect to fiduciary duties matters; significant experience advising public companies on corporate matters.</P></TD></TR>
</TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Set forth below is further information about the professional experience and qualifications of each of the
Nominees to serve on the Board: </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><I>Stephen A. Mongillo</I>. Stephen A. Mongillo, 58, is a private investor with more than
25 years of experience in the financial industry, and also has served as the Chairman and principal shareholder of AMPF, Inc., a wholesale distributor of picture frame mouldings and supplies since April 2012. Mr.&nbsp;Mongillo has been a director of
CVR Energy, Inc. (NYSE: CVI), a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing industries, since May 2012. From July 2016 until May 2018, Mr.&nbsp;Mongillo was on the board of directors
as well as the Audit and Financing committees of Herc Holdings, Inc. (NYSE: HRI), the holding company for Herc Rentals, Inc. Herc Rentals is one of the largest equipment rental companies in the United States and was spun out of Hertz Global
Holdings, Inc. in 2016. From March 2009 to June 2011, Mr.&nbsp;Mongillo served as a director of American Railcar Industries, Inc., a North American designer and manufacturer of hopper and tank railcars. Mr.&nbsp;Mongillo also served as a Director of
WestPoint International, Inc., a manufacturer and distributor of home fashion consumer products, from March 2009 to January 2011. From January 2008 to January 2011, Mr.&nbsp;Mongillo served as a Managing Director of Icahn Capital LP, the entity
</P>
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through which Carl Icahn managed third-party investment funds. Prior to joining Icahn Capital, Mr.&nbsp;Mongillo worked at Bear Stearns for 10 years, as a Senior Managing Director overseeing the
Leveraged Finance Group&#146;s efforts in the Healthcare, Real Estate, Gaming, Lodging, Leisure, Restaurant and Education sectors. Mr.&nbsp;Mongillo received a B.A. from Trinity College and an M.B.A. from the Amos Tuck School of Business
Administration at Dartmouth College. Mr.&nbsp;Mongillo&#146;s qualifications for election to the Board include his public company board experience, including roles on audit and finance committees, as well as and his extensive experience in the
financial industry. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><I>Mark T. Goglia</I>. Mark T. Goglia, 47, has served as a member and head of the corporate section
of Condon Tobin Sladek Thornton PLLC, a Dallas, <FONT STYLE="white-space:nowrap">TX-based</FONT> law firm, since July 2018. Prior to that role, Mr.&nbsp;Goglia served as an attorney: from May 2014 to April 2017 and from January 2018 to June 2018, as
a partner at Goglia pllc, Mr.&nbsp;Goglia&#146;s personal law firm; from May 2017 to December 2017, as a partner at Egan Nelson LLP; and from January 2006 to April 2014, as a partner at Jones Day, a prominent global law firm. In these roles,
Mr.&nbsp;Goglia has advised emerging growth and Fortune 500 companies on public and private mergers and acquisitions (M&amp;A) and takeovers, private equity transactions, corporate governance matters (including fiduciary duties issues), investment
vehicles, joint ventures, initial public offerings (IPOs), and other registered securities offerings. With a career spanning over two decades, Mr.&nbsp;Goglia has developed substantial expertise in the technology, energy and retail/consumer packaged
goods sectors, advising corporations on transactions with significant value and guiding numerous dynamic companies launching IPOs. Mr.&nbsp;Goglia has worked at prominent global law firms, including Jones Day (in total, from September 2002 to April
2014), Brobeck (from July 1998 to August 2002) and DLA Piper (from August 1996 to June 1998), where he oversaw a client list which included Texas Instruments, Albertsons, Alon USA Energy, Cisco Systems, Dean Foods, Kaiser Aluminum, Overhead Door,
and Micron. Separately, Mr.&nbsp;Goglia has assisted over 15 companies in their capital markets endeavors, including A.C. Moore Arts and Crafts, AHL Services, C.H. Robinson Worldwide, Comfort Systems USA, FlashNet, Hoover&#146;s, NEON Systems, and
Waste Industries. Mr.&nbsp;Goglia received a B.A. from Washington&nbsp;&amp; Lee University and a J.D. from the University of Virginia. Mr.&nbsp;Goglia&#146;s qualifications for election to the Board include his extensive legal experience advising
public companies on corporate matters including fiduciary duties issues. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">ADDITIONAL INFORMATION ABOUT THE NOMINEES </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">As of the date hereof, no Nominee (i)&nbsp;has any position with the Company, (ii)&nbsp;oversees any portfolios in the
Company&#146;s Fund Complex (as defined in the Exchange Act), or (iii)&nbsp;is the beneficial owner of any Shares of the Company or any registered investment companies to be overseen by the Nominee within the same Family of Investment Companies (as
defined in the Exchange Act) as the Company. Further, as of the date hereof, none of the Nominees nor any Immediate Family Member (as defined in Item 22(a)(1)(vii) of Schedule 14A) of any Nominee owns beneficially or of record any equity securities
in the Company or in any <FONT STYLE="white-space:nowrap">MCC-Related</FONT> Company (as defined below) or any person (other than a registered investment company) directly or indirectly controlling, controlled by, or under common control with an
investment adviser, principal underwriter or Sponsoring Insurance Company of MCC. <FONT STYLE="white-space:nowrap">&#147;MCC-Related</FONT> Companies&#148; means the Company, Sierra Income Corporation, MDLY, Sierra Total Return Fund, SIC Advisors
LLC, STRF Advisors, MCC Advisors LLC, Medley LLC, Medley Group LLC, Sierra Management, Inc., Medley Capital LLC and Medley SBIC, LP. The NexPoint Group believes that, based on the Company&#146;s public disclosure, there are no entities, other than
the <FONT STYLE="white-space:nowrap">MCC-Related</FONT> Companies, that qualify as investment adviser, principal underwriter or Sponsoring Insurance Company (as defined in Item 22(a) of Schedule 14A). If this belief is incorrect, upon notice from
the Company, the NexPoint Group will correct its disclosure in this Proxy Statement. We also note that the Company&#146;s most recent <FONT STYLE="white-space:nowrap">Form&nbsp;10-K</FONT> (filed December&nbsp;4, 2018) stated that the Company
&#147;is not part of a &#145;family of investment companies,&#146; as that term is defined in the 1940 Act.&#148; No Nominee is an &#147;interested person&#148; of the Company, as defined in the 1940 Act. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">None of the Nominees, their Immediate Family Members, their affiliates or any other related persons, has, during the past five
years, held any position, including as an officer, employee, director or general partner, with (i)&nbsp;the Company, (ii)&nbsp;any investment company, or any person that would be an investment company but for the exclusions provided by Sections
3(c)(1) and (c)(7) of the 1940 Act having the same investment adviser or principal underwriter or Sponsoring Insurance Company (as defined in the Exchange Act) or controlled by or </P>
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under the control with such investment adviser, principal underwriter or Sponsoring Insurance Company, as the Company, (iii)&nbsp;the Company&#146;s investment adviser, principal underwriter or
Sponsoring Insurance Company or (iv)&nbsp;any person, directly or indirectly controlling, controlled by, or under common control with the Company&#146;s investment adviser, principal underwriter, or Sponsoring Insurance Company. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">None of the Nominees or their Immediate Family Members has had any direct or indirect interest, the value of which exceeds
$120,000, during the past five years in an investment adviser, principal underwriter, or Sponsoring Insurance Company of the Company or a person (other than a registered investment company) directly or indirectly controlling, controlled by, or under
common control with an investment adviser, principal underwriter, or Sponsoring Insurance Company of the Company. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Other
than as disclosed in this Proxy Statement, neither the Nominees nor any Immediate Family Member (as defined in Item 22(a)(1)(vii) of Schedule 14A) of the Nominees has had during the past five years, any direct or indirect interest, the value of
which exceeds $120,000, in (i)&nbsp;any Medley-Related Company, or (ii)&nbsp;a person (other than a registered investment company) directly or indirectly controlling, controlled by, or under common control with any Medley-Related Company. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Since the beginning of the Company&#146;s last two completed fiscal years, no officer of an investment adviser, principal
underwriter, or Sponsoring Insurance Company of the Company, or of a person directly or indirectly controlling, controlled by, or under common control with an investment adviser, principal underwriter, or Sponsoring Insurance Company of the Company,
serves, or has served, on the board of directors of a company of which a Nominee or an Immediate Family Member of a Nominee is an officer. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Since the beginning of the Company&#146;s last two completed fiscal years, no Nominee or any of his associates or Immediate
Family Members of a Nominee (as defined in Item 22(a)(1)(vii) of Schedule 14A) was a party to any transaction, or series of similar transactions or is a party to any currently proposed transaction, or series of similar transactions, in which the
amount involved exceeded or is to exceed $120,000, to which (i)&nbsp;the Company, (ii)&nbsp;any of its officers, (iii)&nbsp;any investment company, or officer thereof, or any person that would be an investment company but for the exclusions provided
by Sections 3(c)(1) and (c)(7) of the 1940 Act, having the same investment adviser or principal underwriter or Sponsoring Insurance Company as the Company or having an investment adviser, principal underwriter or Sponsoring Insurance Company that
directly or indirectly controls, is controlled by, or is under common control with an investment adviser, principal underwriter or Sponsoring Insurance Company of the Company, (iv)&nbsp;the Company&#146;s investment adviser, principal underwriter,
or Sponsoring Insurance Company, or an officer thereof, (v)&nbsp;any person, or officer thereof, directly or indirectly controlling, controlled by, or under common control with the Company&#146;s investment adviser, principal underwriter, or
Sponsoring Insurance Company, or an officer thereof, was or is to be a party. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">No Nominee owns any securities beneficially
or of record in: (i)&nbsp;an investment adviser, principal underwriter, or Sponsoring Insurance Company (as defined in the Exchange Act) of the Company or (ii)&nbsp;a person (other than a registered investment company) directly or indirectly
controlling, controlled by, or under common control with an investment adviser, principal underwriter, or Sponsoring Insurance Company of the Company. Furthermore, no Nominee has any direct or indirect relationship, as described in Item 22(b)(9) of
Schedule 14A. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">There exist no family relationships between the Nominees and any director or executive officer of MCC (or
person nominated or chosen by MCC to become a director or executive officer). </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The NexPoint Group believes that each
Nominee will be considered an independent director of MCC within the meaning of Item 407(a) of Regulation <FONT STYLE="white-space:nowrap">S-K</FONT> and as defined by the New York Stock Exchange (&#147;<B><I>NYSE</I></B>&#148;) Rules. Other than as
disclosed in this Proxy Statement, no Nominee has a material relationship with MCC (either directly or as a partner, stockholder or officer of an organization that has a relationship with the Company). Additionally, no circumstance or relationship
exists involving any Nominee and MCC or its subsidiaries which would disqualify any Nominee&#146;s independence in accordance with the NYSE Rules. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">None of the Nominees has, nor have any of their associates, earned, been awarded or been paid any plan or <FONT
STYLE="white-space:nowrap">non-plan</FONT> compensation for services rendered to MCC or its subsidiaries that is required to be disclosed under Item 402 of Regulation <FONT STYLE="white-space:nowrap">S-K</FONT> or is subject to any arrangement
described in Item 402 of Regulation <FONT STYLE="white-space:nowrap">S-K.</FONT> </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">None of the Nominees is an &#147;interested person&#148; of the Company
within the meaning of Section&nbsp;2(a)(19) of the 1940 Act. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">There is no agreement or understanding pursuant to which the
Nominees have agreed to vote in favor of the NexPoint Proposals. Our Nominees, if elected, together with the rest of the Board, will evaluate the terms of any investment advisory contract in accordance with the requirements of the 1940 Act, and any
such appointment will be subject to Board approval and, ultimately, approval by the Company&#146;s stockholders. There can be no assurance that the election of the NexPoint Group&#146;s Nominees will improve the Company&#146;s business or otherwise
enhance stockholder value or will result in the approval of an investment advisory agreement with NexPoint. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Other than as
disclosed in this Proxy Statement, none of the Nominees or their associates nor any related person of the Nominees or their associates (as &#147;related person&#148; is defined in Instruction 1 of Item 404(a) of Regulation <FONT
STYLE="white-space:nowrap">S-K),</FONT> has had or will have a direct or indirect material interest in any transaction, or series of similar transactions, in which the amount involved exceeds $120,000, since the beginning of MCC&#146;s last fiscal
year or any currently proposed transaction to which MCC or any of its subsidiaries was or is to be a participant. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Other
than as stated herein, the Nominees will not receive any compensation from the NexPoint Group for their services as directors of the Company. For completeness, we note that NexPoint and each Nominee are party to indemnification agreements, dated
March&nbsp;25, 2019 (the &#147;Indemnification Agreements&#148;), pursuant to which NexPoint, subject to the terms and conditions of such agreement, has agreed to pay a nomination fee of $50,000 to each Nominee for serving as a nominee for election
to the Board (the &#147;Nomination Fee&#148;). </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Other than as stated herein, there are no arrangements or understandings
between the NexPoint Group and any of the Nominees or any other person or persons pursuant to which the nomination described herein is to be made. Pursuant to the Indemnification Agreements (which include the payment of the Nomination Fee),
NexPoint, subject to the terms and conditions of such agreement, has agreed to indemnify each Nominee against any and all claims arising out of or based upon each Nominee being a Nominee. Each Nominee has also granted Thomas Surgent a power of
attorney, dated March 2019 in connection with the solicitation of proxies from the Company&#146;s stockholders in connection with the 2019 Annual Meeting. Each Nominee has also consented to be named in this Proxy Statement and to serve as a director
of the Company if elected as such at the Annual Meeting. None of the Nominees is a party adverse to the Company or any of its affiliated persons or has a material interest adverse to the Company or any of its affiliated persons in any material
pending legal proceedings. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The information provided above has been furnished to the NexPoint Group by the Nominees. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The NexPoint Group does not expect that the Nominees will be unable to stand for election, but, in the event that such persons
are unable to serve or for good cause will not serve, the Shares represented by the enclosed BLUE proxy card will be voted for substitute nominees. In addition, the NexPoint Group reserves the right to nominate substitute persons if the Company
makes or announces any changes to its bylaws or takes or announces any other action that has, or if consummated would have, the effect of disqualifying the Nominees. The NexPoint Group also reserves the right to nominate additional persons if the
Company increases the size of the Board above its existing size, increases the number of directors to be elected at the Annual Meeting or calls a meeting to fill any vacancies on the Board. In any of the foregoing cases, Shares represented by the
enclosed BLUE proxy card will be voted for such substitute nominees. Additional nominations made pursuant to the preceding sentences are without prejudice to the position of the NexPoint Group that any attempt to increase the size of the current
Board or to reconstitute or reconfigure the current Board constitutes an unlawful manipulation of the Company&#146;s corporate machinery. If the Nominees or any substitute nominees nominated by the NexPoint Group are not put up for election to the
Board at the Annual Meeting, Shares represented by the enclosed BLUE proxy card will be voted AGAINST the director nominees nominated by the Board. </P>
<P STYLE="margin-top:20pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">YOU ARE URGED TO VOTE FOR THE ELECTION OF THE NEXPOINT GROUP&#146;S NOMINEES ON THE ENCLOSED BLUE PROXY CARD. </P>
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<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">PROPOSAL 2 </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">RATIFICATION OF
APPOINTMENT OF ERNST&nbsp;&amp; YOUNG LLP AS THE COMPANY&#146;S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE 2019 FISCAL YEAR </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">As discussed in further detail in the Company&#146;s proxy statement (the &#147;MCC Proxy Statement&#148;), the Audit
Committee and the independent directors of the Board have appointed Ernst&nbsp;&amp; Young LLP as the Company&#146;s independent registered public accounting firm for the fiscal year ending September&nbsp;30, 2019, subject to ratification or
rejection by the stockholders of the Company. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Additional disclosure regarding Ernst&nbsp;&amp; Young LLP and its
relationship with the Company required by applicable law is included in the MCC Proxy Statement. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">WE MAKE NO RECOMMENDATION WITH RESPECT TO
THE RATIFICATION OF THE SELECTION OF ERNST&nbsp;&amp; YOUNG LLP AS THE COMPANY&#146;S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR ENDING SEPTEMBER&nbsp;30, 2019 AND </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">WE INTEND TO VOTE OUR SHARES &#147;FOR&#148; THIS PROPOSAL. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The NexPoint Group is not aware of any other proposals to be brought before the Annual Meeting. However, the NexPoint Group
intends to bring before the Annual Meeting such business as may be appropriate, including without limitation nominating additional persons for directorships, or making any proposals as may be appropriate to address any action of the Board not
publicly disclosed prior to the date of this Proxy Statement. Should other matters, which the NexPoint Group is not aware of a reasonable time before this solicitation, be brought before the Annual Meeting, the persons named as a proxies on the
enclosed BLUE proxy card will vote on such matters in their discretion. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">VOTING AND PROXY PROCEDURES </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Only stockholders of record on the Record Date will be entitled to notice of and to vote at the Annual Meeting. Holders of
Common Stock are entitled to one vote per Share on all business of the Annual Meeting including any adjournment or postponement thereof. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Stockholders, including those who expect to attend the Annual Meeting, are urged to vote their Shares today by following the
instructions for voting detailed on the enclosed BLUE proxy card. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Authorized proxies will be voted at the Annual Meeting
as marked and, in the absence of specific instructions, will be voted FOR the election of the NexPoint Group&#146;s Nominees. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The NexPoint Group is asking you to vote FOR the election of the NexPoint Group&#146;s Nominees. The enclosed BLUE proxy card
may only be voted for the NexPoint Group&#146;s Nominees and does not confer voting power with respect to the Company&#146;s nominees. Stockholders should refer to the MCC Proxy Statement for the names, backgrounds, qualifications and other
information concerning the Company&#146;s nominees. The participants in this solicitation intend to vote all of their Shares for the election of the NexPoint Group&#146;s Nominees and will not vote their Shares in favor of any of the Company&#146;s
director nominees. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">VOTING METHODS </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Whether or not you plan to attend the Annual Meeting, the NexPoint Group encourages you to vote by proxy to ensure your vote
is counted. You may still attend the Annual Meeting and vote in person, even if you have already voted by proxy. <B>IF YOU HAVE ALREADY VOTED AND WISH TO CHANGE YOUR VOTE, PLEASE SEE THE INSTRUCTIONS BELOW UNDER THE HEADING &#147;REVOCATION OF</B>
</P>
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<B>PROXIES&#148;.</B> An MCC stockholder may submit a proxy or vote shares of MCC Common Stock by any of the following methods: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#149;</P></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><U><B>Vote By Mail</B></U>. <B>Vote Your Shares by Mail:</B> </P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Mark, sign, and date your proxy card, then detach it, and return it in the postage-paid envelope provided. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="justify"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#149;</P></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><U><B>Vote Through the Internet</B></U>. </P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Voting through the Internet is available for voting on behalf of beneficial owners of Shares but not for voting by stockholders
of record of Shares. Please access the website linked on your proxy card and follow the <FONT STYLE="white-space:nowrap">on-screen</FONT> instructions. You will be required to provide the unique control number printed on your proxy card. You may
vote by Internet 24 hours a day, 7 days a week until 11:59 PM EDT the day before the Annual Meeting. Your Internet vote authorizes the named proxies to vote your Shares in the same manner as if you had executed a proxy card. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">For Shares held through a broker, bank or other nominee, a MCC stockholder may vote by submitting voting instructions to the broker, bank or
nominee. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">QUORUM; ADJOURNMENT </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">A quorum must be present at the Annual Meeting for any business to be conducted. The presence, in person or by proxy, of the
holders of a majority of the Shares outstanding as of the Record Date will constitute a quorum for purposes of the Annual Meeting. Abstentions and broker <FONT STYLE="white-space:nowrap">non-votes</FONT> will be deemed to be present for the purpose
of determining a quorum for the Annual Meeting. If a quorum is not present at the Annual Meeting, the stockholders who are represented may adjourn the Annual Meeting until a quorum is present. Such adjournment will be permitted if approved by a
majority of the votes cast by the holders of Shares present in person or by proxy at the Annual Meeting, whether or not a quorum exists. Abstentions will have no effect on the adjournment vote. Abstentions and &#147;broker <FONT
STYLE="white-space:nowrap">non-votes&#148;</FONT> shall not be counted as votes cast on such adjournment and will have no effect on the adjournment vote. In addition, the Chairman of the Annual Meeting will have the authority to adjourn the Annual
Meeting from <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">time-to-time</FONT></FONT> for any reason without notice and without the vote or approval of the stockholders. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">VOTES REQUIRED FOR APPROVAL </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Vote required for the election of directors.</U> According to the MCC Proxy Statement, election of a director requires the
affirmative vote of a plurality of the votes cast by holders of Common Stock as of the Record Date present or represented by proxy at the Annual Meeting. This means that if there are more candidates for election than there are positions on the Board
to be filled, the two candidates receiving the most votes will be elected. Stockholders may not cumulate their votes. If you vote &#147;Withhold Authority&#148; with respect to a nominee, your shares will not be voted with respect to the person
indicated. Abstentions and &#147;broker <FONT STYLE="white-space:nowrap">non-votes&#148;</FONT> are not considered votes cast for purposes of the election of directors and, therefore, will have no effect on the outcome of such election. If you give
no instructions on the BLUE proxy card, the Shares covered by the BLUE proxy card will be voted FOR the election of the NexPoint Group&#146;s Nominees. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Vote required for the ratification of independent registered public accounting firm.</U> According to the MCC Proxy
Statement, the affirmative vote of a majority of the votes cast by holders of Common Stock as of the Record Date present or represented by proxy at the Annual Meeting is required to ratify the appointment of Ernst&nbsp;&amp; Young LLP to serve as
the Company&#146;s independent registered public accounting firm. Abstentions and &#147;broker <FONT STYLE="white-space:nowrap">non-votes&#148;</FONT> are not considered votes cast on this proposal and will have no effect on the vote for the
proposal. Because brokers may have discretionary authority to vote for the ratification of the appointment of the Company&#146;s independent registered public accounting firm in the event that they do not receive voting instructions from the
beneficial owner of the Shares, your broker may be permitted to vote your Shares for this proposal. If you give no instructions on the proxy card, the Shares covered by the proxy card will be voted FOR the ratification of appointment of
Ernst&nbsp;&amp; Young LLP to serve as the Company&#146;s independent registered public accounting firm for the 2019 fiscal year. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">DISSENTERS&#146; RIGHTS </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">MCC stockholders do not have the right to exercise dissenters&#146; rights with respect to any matter to be voted upon at the
Annual Meeting. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">REVOCATION OF PROXIES </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">If you are a &#147;stockholder of record&#148; (i.e., you hold shares directly in your name), you may revoke a proxy at any
time before it is exercised by notifying D.F. King or the Company&#146;s proxy solicitor, Alliance Advisors, LLC , in writing, by submitting a properly executed, later-dated proxy card or by voting through the Internet or by telephone (if available)
at a later time, or by attending the Annual Meeting in person and voting your shares at the Annual Meeting (although attendance at the Annual Meeting will not in and of itself constitute revocation of a proxy). Please send your notification to D.F.
King at 48 Wall Street, New York, NY, 10005 or Alliance Advisors, LLC, Attn: Tabulation Department, 200 Broadacres Drive, 3rd Floor, Bloomfield, New Jersey 07003. (with a copy to D.F. King). Any stockholder of record participating in the Annual
Meeting may vote at such time whether or not he or she has previously voted his or her Shares. The delivery of a later-dated proxy which is properly completed will constitute a revocation of any earlier proxy. Although a revocation is effective if
delivered to the Company, the NexPoint Group requests that either the original or photostatic copies of all revocations be mailed to the NexPoint Group in care of D.F. King at the above address so that the NexPoint Group will be aware of all
revocations and can more accurately determine if and when proxies have been received from the holders of record as of the Record Date of a majority of the outstanding Shares. Additionally, D.F. King may use this information to contact stockholders
who have revoked their proxies in order to solicit later-dated proxies for the election of the Nominees and approval of other proposals described herein. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">If you hold Shares through a broker, bank or other nominee, you must follow the instructions you receive from your broker,
bank or other nominee in order to revoke your voting instructions. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">IF YOU WISH TO VOTE FOR THE ELECTION OF THE NEXPOINT
GROUP&#146;S NOMINEES TO THE BOARD OR FOR THE RATIFICATION OF ERNST&nbsp;&amp; YOUNG LLP AS THE COMPANY&#146;S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM, PLEASE VOTE YOUR SHARES AS DESCRIBED HEREIN. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>The NexPoint Group recommends that stockholders REVOKE any proxy that voted AGAINST the NexPoint Group&#146;s Nominees at
the Annual Meeting and instead submit a proxy voting FOR the NexPoint Group&#146;s Nominees. If you have already sent in a proxy, you may revoke that proxy and vote FOR the NexPoint Group&#146;s Nominees by submitting a later-dated properly executed
proxy. Only your latest-dated proxy will count. Stockholders have every right to change their vote. </B></P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">SOLICITATION OF PROXIES </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The solicitation of proxies pursuant to this Proxy Statement is being made by the NexPoint Group. Proxies may be solicited by
mail, facsimile, telephone, Internet, in person and by advertisements. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">No regular employees of the Company have been or
are to be employed to solicit stockholders of the Company in this solicitation. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The NexPoint Group has entered into an
agreement with D.F. King for solicitation and advisory services in connection with this solicitation, for which D.F. King will receive a fee expected not to exceed $175,000, together with reimbursement for its reasonable <FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">out-of-pocket</FONT></FONT> expenses, and will be indemnified against certain liabilities and expenses, including certain liabilities under the federal securities laws. D.F. King will
solicit or will request proxies from individuals, brokers, banks, bank nominees and other institutional holders. The NexPoint Group has requested banks, brokerage houses and other custodians, nominees and fiduciaries to forward all solicitation
materials to the beneficial owners of the Shares they hold of record. The NexPoint Group will reimburse these record holders for their reasonable <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">out-of-pocket</FONT></FONT> expenses
in so doing. It is anticipated that D.F. King will employ approximately 50 persons to solicit the Company&#146;s stockholders for the Annual Meeting. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The cost of the solicitation will be borne by the NexPoint Group. To the
extent legally permissible, if the NexPoint Group is successful in its proxy solicitation, the NexPoint Group intends to seek reimbursement from the Company for the expenses it incurs in connection with this solicitation. The NexPoint Group does not
intend to submit the question of such reimbursement to a vote of security holders of the Company. The NexPoint Group has spent a total of approximately $100,000 in furtherance of the solicitation to date and anticipates a total expenditure of
approximately $300,000 in connection with the solicitation of the security holders. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">OTHER PARTICIPANT INFORMATION </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The NexPoint Group and each Nominee is a participant in this solicitation. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The principal business of each member of the NexPoint Group is as follows: The principal business of each of Select Fund and
Global Fund is making and holding investments. The principal business of each of Highland Fund Advisors, NexPoint and Highland Capital, is acting as an investment adviser and/or manager to other investment vehicles. The principal business of Strand
XVI is serving as the general partner of Highland Fund Advisors. The principal business of NexPoint Advisors GP is serving as the general partner of NexPoint. The principal business of Strand is serving as the general partner of Highland Capital.
The principal business of Select GP is serving as the general partner of Select Fund. The principal business of Select LLC is serving as the general partner of Select GP. The principal business of Mr.&nbsp;Dondero is serving as the President of
NexPoint Advisors GP and Strand and as the ultimate control person of Strand XVI, NexPoint Advisors GP and Strand. The principal business address of each member of the NexPoint Group is 300 Crescent Court, Suite 700, Dallas, Texas 75201-7849. The
principal address of each Nominee is stated above in the section titled &#147;THE NEXPOINT GROUP&#146;S NOMINEES&#148;. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Except as set forth in this Proxy Statement (including the Schedule hereto), (i) during the past 10 years, no participant in
this solicitation has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors); (ii) no participant in this solicitation directly or indirectly beneficially owns any securities of the Company; (iii)&nbsp;no
participant in this solicitation owns any securities of the Company which are owned of record but not beneficially; (iv)&nbsp;no participant in this solicitation has purchased or sold any securities of the Company during the past two years;
(v)&nbsp;no part of the purchase price or market value of the securities of the Company owned by any participant in this solicitation is represented by funds borrowed or otherwise obtained for the purpose of acquiring or holding such securities;
(vi)&nbsp;no participant in this solicitation is, or within the past year was, a party to any contract, arrangements or understandings with any person with respect to any securities of the Company, including, but not limited to, joint ventures, loan
or option arrangements, puts or calls, guarantees against loss or guarantees of profit, division of losses or profits, or the giving or withholding of proxies; (vii)&nbsp;no associate of any participant in this solicitation owns beneficially,
directly or indirectly, any securities of the Company; (viii)&nbsp;no participant in this solicitation owns beneficially, directly or indirectly, any securities of any parent or subsidiary of the Company; (ix)&nbsp;no participant in this
solicitation or any of his/her/its associates was a party to any transaction, or series of similar transactions, since the beginning of the Company&#146;s last fiscal year, or is a party to any currently proposed transaction, or series of similar
transactions, to which the Company or any of its subsidiaries was or is to be a party, in which the amount involved exceeds $120,000; (x) no participant in this solicitation or any of his/her/its associates has any arrangement or understanding with
any person with respect to any future employment by the Company or its affiliates, or with respect to any future transactions to which the Company or any of its affiliates will or may be a party; and (xi)&nbsp;no person, including the participants
in this solicitation, who is a party to an arrangement or understanding pursuant to which the Nominees are proposed to be elected has a substantial interest, direct or indirect, by security holdings or otherwise in any matter to be acted on at the
Annual Meeting. There are no material proceedings to which any of the participants in this solicitation or any of their associates is a party adverse to the Company or any of its subsidiaries or has a material interest adverse to the Company or any
of its subsidiaries. With respect to each of the participants in the solicitation, none of the events enumerated in Item 401(f)(1)&#150;(8) of Regulation S&#150;K of the Exchange Act, as amended, occurred during the past ten years. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">None of the Nominees directly or indirectly owns beneficially or of record any Shares. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">For information regarding purchases and sales of securities of the Company during the past two years by the NexPoint Group,
see Schedule I to this Proxy Statement. </P>
</DIV></Center>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Except as set forth in this Proxy Statement there are no arrangements or
understandings between the NexPoint Group and the Nominees or any other participant in this solicitation. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">None of the
participants owns beneficially, directly or indirectly, any securities of any parent or subsidiary of the Company. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">A
representative of the NexPoint Group intends to appear in person or by proxy at the Annual Meeting to nominate Nominees for election to the Board. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Information regarding the beneficial ownership of each current director, Company nominee for director, the Company&#146;s
executive officers and each person known to the Company to beneficially own 5% or more of the outstanding Shares and the Company&#146;s executive officers and directors as a group can be found in the section of the MCC Proxy Statement entitled
&#147;<I>Security Ownership of Certain Beneficial Owners and Management&#148;</I>. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">INFORMATION REQUIRED IN INVESTMENT COMPANY PROXY
STATEMENT </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Any additional information required by Item 22 of Schedule 14A can be found in the disclosure in the MCC Proxy
Statement. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">OTHER MATTERS AND ADDITIONAL INFORMATION </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The NexPoint Group is unaware of any other matters to be considered at the Annual Meeting. However, should other matters,
which the NexPoint Group is not aware of a reasonable time before this solicitation, be brought before the Annual Meeting, the person named as a proxy on the enclosed BLUE proxy card will vote on such matters in their discretion. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The NexPoint Group has omitted from this Proxy Statement certain disclosures required by applicable law that are contained in
the MCC Proxy Statement. These disclosures include, among other things, biographical information and information about the backgrounds, qualifications and compensation of the Company&#146;s directors and officers, the dollar range of Shares owned by
directors of the Company, information on committees of the Board, information on the Company&#146;s policies and procedures for the review, approval or ratification of any transactions required to be reported under Item 404(a) of Regulation <FONT
STYLE="white-space:nowrap">S-K</FONT> of the Exchange Act, information concerning stockholder communications to be reported under Item 407(f) of Regulation <FONT STYLE="white-space:nowrap">S-K</FONT> of the Exchange Act, information concerning the
leadership structure and role in risk oversight of the Board, information concerning Board meetings and attendance, information concerning the compensation of directors and executive officers<I>, </I>information concerning the Company&#146;s
independent registered public accounting firm and information relating to the Company&#146;s nominees for director, the date by which proposals of security holders intended to be presented at the next annual meeting of Stockholders of MCC must be
received by MCC for inclusion in the MCC Proxy Statement and form of proxy for that meeting, the date by which Stockholders must provide notice for other proposals intended to be presented at the next annual meeting of Stockholders, and the date by
which Stockholders must submit nominations for election to the Board at the next annual meeting of Stockholders. Stockholders should refer to the MCC Proxy Statement (when available) in order to review these disclosures. The NexPoint Group does not
make any representation or take any responsibility as to the accuracy or completeness of the information contained in the MCC Proxy Statement. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The information concerning the Company contained in this Proxy Statement and the Schedule attached hereto has been taken from,
or is based upon, publicly available documents on file with the SEC and other publicly available information. Although the NexPoint Group has no knowledge that would indicate that statements relating to the Company contained in this Proxy Statement,
in reliance upon publicly available information, are inaccurate or incomplete, to date, the NexPoint Group has not had access to the full books and records of the Company, was not involved in the preparation of such information and statements, and
is not in a position to verify any such information or statements. </P>
</DIV></Center>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The NexPoint Group, together with its affiliates, currently manages
approximately&nbsp;$10&nbsp;billion in net assets and believes that its core competences are squarely within the Company&#146;s investment strategy. NexPoint is affiliated, through common ownership, with Highland Capital, and shares personnel and
other resources with Highland Capital. Highland Capital (together with its affiliates) is one of the world&#146;s most experienced alternative credit managers, tested by numerous credit cycles, specializing in credit strategies, such as a broad
range of leveraged loans, high yield bonds, direct lending, public and&nbsp;private equities and CLOs. Highland Capital also offers alternative investment-oriented strategies, including asset allocation, long/short equities, real estate and natural
resources. If NexPoint is retained by the Company as its investment adviser, the Company will have access to all of Highland Capital&#146;s capabilities and expertise. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">HOUSEHOLDING </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">For stockholders that receive a copy of this Proxy Statement by mail from the NexPoint Group, such stockholders may request
additional copies of such proxy statement from the NexPoint Group if there are multiple stockholders at the same address by contacting D.F. King using the contact information provided in this Proxy Statement. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">CERTAIN INFORMATION REQUIRED BY APPLICABLE LAW THAT IS CONTAINED IN THE MCC PROXY STATEMENT HAS BEEN REFERENCED HEREIN. THE PARTICIPANTS WERE
NOT INVOLVED IN THE PREPARATION OF SUCH INFORMATION AND STATEMENTS INCLUDED IN THE MCC PROXY STATEMENT AND TAKE NO RESPONSIBILITY FOR THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION IN THE MCC PROXY STATEMENT, OTHER PUBLIC FILINGS OF THE COMPANY OR
INFORMATION INCORPORATED INTO SUCH FILINGS BY REFERENCE. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The materials in this Proxy Statement contain forward-looking statements. All statements contained herein that are not clearly
historical in nature or that necessarily depend on future events are forward-looking, and the words &#147;anticipate,&#148; &#147;believe,&#148; &#147;expect,&#148; &#147;potential,&#148; &#147;opportunity,&#148; &#147;estimate,&#148;
&#147;plan&#148; and similar expressions are generally intended to identify forward-looking statements. The projected results and statements contained herein that are not historical facts are based on current expectations speak only as of the date
of this Proxy Statement and involve risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such
projected results and statements. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible
to predict accurately and many of which are beyond the control of the NexPoint Group. Although the NexPoint Group believes that the assumptions underlying the projected results or forward-looking statements are reasonable as of the date of this
Proxy Statement, any of the assumptions could be inaccurate and therefore, there can be no assurance that the projected results or forward-looking statements included herein will prove to be accurate. In light of the significant uncertainties
inherent in the projected results and forward-looking statements included herein, the inclusion of such information should not be regarded as a representation as to future results or that the objectives and strategic initiatives expressed or implied
by such projected results and forward-looking statements will be achieved. The NexPoint Group will not undertake and specifically declines any obligation to disclose the results of any revisions that may be made to any projected results or
forward-looking statements herein to reflect events or circumstances after the date of such projected results or statements or to reflect the occurrence of anticipated or unanticipated events. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">NEXPOINT ADVISORS, L.P.</P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="32"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">May&nbsp;13, 2019</P></TD></TR>
</TABLE></DIV>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000">&nbsp;</P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">SCHEDULE I </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Certain members of the NexPoint Group hold direct or indirect interests in securities of the Company. Global Fund, a
Massachusetts business trust, holds and beneficially owns 335,000 Shares and Highland Fund Advisors, a Delaware limited partnership and the investment adviser to Global Fund, Strand XVI, a Delaware corporation and the general partner of Highland
Fund Advisors, and Mr.&nbsp;Dondero, a United States citizen and the ultimate control person of Strand XVI, indirectly beneficially own such Shares due to their relationship with Global Fund. Select Fund, a Bermuda limited partnership, holds of
record and beneficially owns 100 Shares and Select GP, a Delaware limited partnership and the general partner of Select Fund, Select LLC, a Delaware limited liability company and general partner of Select GP, Highland Capital, a Delaware limited
partnership and the sole member of Select LLC and the investment adviser to Select Fund, Strand, a Delaware corporation and the general partner of Highland Capital, and Mr.&nbsp;Dondero, the President and ultimate control person of Strand,
indirectly beneficially own such Shares due to their relationship with Select Fund. The general partner of NexPoint is NexPoint Advisors GP. Mr.&nbsp;Dondero is the President and ultimate control person of NexPoint Advisors GP. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Set forth below are all purchases or sales of the Company&#146;s securities within the past two years by members of the
NexPoint Group: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="92%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="55%"></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="justify">Name of Entity</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Purchase<BR>or&nbsp;Sale</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Date&nbsp;of<BR>Transaction</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Number&nbsp;of&nbsp;Shares<BR>of&nbsp;Common&nbsp;Stock<BR>Purchased&nbsp;or&nbsp;Sold</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Select Fund</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Purchase</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">1/31/19</P></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">100</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Global Fund</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Purchase</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2/14/19</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5,400</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Global Fund</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Purchase</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">2/14/19</P></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5,461</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Global Fund</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Purchase</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2/15/19</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">19,185</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Global Fund</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Purchase</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">2/19/19</P></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">16,200</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Global Fund</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Purchase</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2/20/19</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">14,499</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Global Fund</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Purchase</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">2/22/19</P></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">74,255</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Global Fund</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Purchase</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2/25/19</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">100,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Global Fund</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Purchase</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">2/26/19</P></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">100,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The 100 Shares purchased by Select Fund for an aggregate purchase price of $334, plus
commission, and the 335,000 Shares purchased by Global Fund for an aggregate purchase price of $1,138,851.91, plus commission, are held in margin accounts and were purchased using borrowed funds. The Common Stock directly held and/or beneficially
owned by the NexPoint Group may be held in margin accounts, which may extend margin credit to members of the NexPoint Group from time to time, subject to applicable federal margin regulations, stock exchange rules and credit policies. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The principal business address of each member of the NexPoint Group is 300 Crescent Court, Suite 700, Dallas, Texas 75201.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The principal business of Global Fund and Select Fund is making and holding investments. The principal business of
Highland Fund Advisors, NexPoint and Highland Capital is acting as an investment adviser and/or manager to other persons. The principal business of Strand XVI is serving as the general partner of Highland Fund Advisors. The principal business of
NexPoint Advisors GP is serving as the general partner of NexPoint. The principal business of Strand is serving as the general partner of Highland Capital. The principal business of Select GP is serving as the general partner of Select Fund. The
principal business of Select LLC is serving as the general partner of Select GP. The principal business of Mr.&nbsp;Dondero is serving as the President of NexPoint Advisors GP and Strand and as the ultimate control person of Strand XVI, NexPoint
Advisors GP and Strand. </P>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">PLEASE VOTE TODAY! </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">If any of your Shares are held in the name of a brokerage firm, bank, bank nominee or other institution, only it can vote such Shares and only
upon receipt of your specific instructions.&nbsp;Accordingly, please vote your Shares by following the instructions on the BLUE voting form provided by your broker or bank.&nbsp;The NexPoint Group urges you to confirm in writing your instructions to
the NexPoint Group in care of D.F. King at the address provided below so that the NexPoint Group will be aware of all instructions given and can attempt to ensure that such instructions are followed. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">D.F. King&nbsp;&amp; Co., Inc. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">48
Wall Street, 22<SUP STYLE="font-size:85%; vertical-align:top">nd</SUP> Floor </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">New York, NY&nbsp;10005 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Stockholders Call Toll&#150;Free at: <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">866-342-2676</FONT></FONT> </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Email: <U>MCC@dfking.com </U> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PLEASE DATE, SIGN AND MAIL YOUR PROXY CARD </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>IN THE ENVELOPE PROVIDED AS SOON AS POSSIBLE </B></P>
<P STYLE="margin-top:20pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>TO VOTE BY MAIL PLEASE DETACH PROXY CARD HERE </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">BLUE PROXY CARD </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>MEDLEY CAPITAL CORPORATION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>2019 ANNUAL MEETING OF STOCKHOLDERS </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>THIS PROXY IS SOLICITED ON BEHALF OF THE NEXPOINT GROUP </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>THE BOARD OF DIRECTORS OF MEDLEY CAPITAL CORPORATION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>IS NOT SOLICITING THIS PROXY </B></P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:3%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The undersigned appoints Thomas Surgent and Richard Grubaugh as the undersigned&#146;s attorney, proxy and agent with full
power of substitution to vote, acting together or separately, all shares of common stock of Medley Capital Corporation (the &#147;Company&#148;), which the undersigned would be entitled to vote if personally present at the annual meeting of
stockholders scheduled to be held on June&nbsp;4, 2019, at 12:00 p.m., Eastern time, at the offices of Eversheds Sutherland (US) LLP located at 1114 Avenue of the Americas, 40th Floor, New York, New&nbsp;York 10036, including any adjournments or
postponements thereof and any meeting that may be called in lieu thereof by the Company (the &#147;Annual Meeting&#148;). </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:3%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The undersigned hereby revokes any other proxy or proxies heretofore given to vote or act with respect to the shares of common
stock of the Company held by the undersigned, and hereby ratifies and confirms all actions the herein named attorneys and proxies, their substitutes, or any of them may lawfully take by virtue hereof. All properly executed proxies will be voted as
directed on the reverse and in the discretion of such attorneys and proxies and their substitutes with respect to any other matters as may properly come before the Annual Meeting. Mark each vote with an X in the box. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>IN THE ABSENCE OF SPECIFIC INSTRUCTIONS, THIS PROXY WILL BE VOTED FOR THE ELECTION OF THE NEXPOINT GROUP&#146;S NOMINEES IN
PROPOSAL 1 AND FOR THE RATIFICATION OF ERNST&nbsp;&amp; YOUNG LLP AS THE COMPANY&#146;S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM IN PROPOSAL 2. </B></P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>IMPORTANT: PLEASE SIGN, DATE AND MAIL THIS PROXY CARD PROMPTLY! </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(CONTINUED AND TO BE SIGNED ON REVERSE SIDE) </B></P>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000">&nbsp;</P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>MEDLEY CAPITAL CORPORATION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SOLICITATION OF PROXIES BY THE NEXPOINT GROUP </B></P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">YOUR VOTE IS IMPORTANT </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Please
take a moment now to vote your shares of the common stock of Medley Capital Corporation for the upcoming Annual Meeting of Stockholders. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PLEASE REVIEW THE PROXY STATEMENT AND VOTE TODAY </B></P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>TO VOTE BY MAIL PLEASE DETACH PROXY CARD HERE </B></P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">BLUE PROXY CARD </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>THE NEXPOINT GROUP, (&#147;NEXPOINT&#148;) URGES A VOTE FOR PROPOSAL NO. 1, AND DOES NOT MAKE A VOTING RECOMMENDATION REGARDING PROPOSAL
NO. 2. </B></P> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Proposal No.&nbsp;1: The NexPoint Group&#146;s proposal to elect its slate of director nominees, each of whom
will serve as director of the Company for the term specified in the attached proxy statement. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
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<TD WIDTH="31%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="30%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Nominees:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">FOR</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">WITHHOLD AUTHORITY</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">(01)&nbsp;&nbsp;&nbsp;&nbsp;Stephen A. Mongillo</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">[&nbsp;&nbsp;&nbsp;&nbsp;]</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">[&nbsp;&nbsp;&nbsp;&nbsp;]</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">(02)&nbsp;&nbsp;&nbsp;&nbsp;Mark T. Goglia</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">[&nbsp;&nbsp;&nbsp;&nbsp;]</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">[&nbsp;&nbsp;&nbsp;&nbsp;]</TD></TR>
</TABLE> <P STYLE="margin-top:24pt; margin-bottom:0pt; margin-left:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Proposal No.&nbsp;2: To ratify the appointment of Ernst&nbsp;&amp; Young LLP to serve as the
Company&#146;s independent registered public accounting firm for the fiscal year ending September&nbsp;30, 2019. </P> <P STYLE="font-size:1pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
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<TD WIDTH="31%"></TD>
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<TR STYLE="font-size:1pt">
<TD HEIGHT="2"></TD>
<TD HEIGHT="2" COLSPAN="2"></TD>
<TD HEIGHT="2" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">FOR</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">AGAINST</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ABSTAIN</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom" ALIGN="center">[&nbsp;&nbsp;&nbsp;&nbsp;]</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">[&nbsp;&nbsp;&nbsp;&nbsp;]</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;]</TD></TR>
</TABLE> <P STYLE="margin-top:20pt; margin-bottom:0pt; margin-left:7%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">This Proxy will be voted as directed and in the discretion of such attorneys and proxies and
their substitutes with respect to any other matters as may properly come before the Annual Meeting or any postponements or adjournments thereof. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="10%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="2%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="33%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD></TD>
<TD VALIGN="bottom"></TD>
<TD WIDTH="25%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD></TD>
<TD VALIGN="bottom"></TD>
<TD WIDTH="24%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">DATE:</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">SIGNATURE:</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">SIGNATURE (IF</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">TITLE:</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1.00pt solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1.00pt solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1.00pt solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1.00pt solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">HELD JOINTLY):</P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:1pt">&nbsp;</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1.00pt solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1.00pt solid #000000">&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">WHEN SHARES ARE HELD JOINTLY, JOINT OWNERS SHOULD EACH SIGN. EXECUTORS, ADMINISTRATORS, TRUSTEES, ETC. SHOULD
INDICATE THE CAPACITY IN WHICH SIGNING. PLEASE SIGN EXACTLY AS NAME APPEARS ON THIS PROXY. </P> <P STYLE="font-size:24pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000">&nbsp;</P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>&#149;</B></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><B><U>Vote By Mail</U>. Vote Your Shares of Common Stock of the Company by Mail: </B></P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Mark, sign, and date your proxy card, then detach it, and return it in the postage-paid envelope provided. </P>
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<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><B><U>Vote Through the Internet</U></B>. </P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Internet voting is available to vote for the NexPoint Group&#146;s Nominees on behalf of beneficial owners of shares of common
stock of the Company but not for voting by stockholders of record of shares of common stock of the Company. For voting on behalf of beneficial owners of shares of common stock of the Company that wish to vote for the NexPoint Group&#146;s Nominees,
go to www.proxyvote.com. For voting on behalf of beneficial owners voting through the Internet, you will be required to provide the unique control number printed on this proxy card. You may vote by Internet 24 hours a day, 7 days a week until 11:59
PM EDT the day before the Annual Meeting. Your Internet vote authorizes the named proxies to vote your shares of common stock of the Company in the same manner as if you had executed a proxy card. </P>
<P STYLE="font-size:20pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dated: May&nbsp;13, 2019 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thank you for your consideration and
support, </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">NexPoint Advisors, L.P. </P>
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