-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 SyJAmWvC1ysMHJMsAIyB9nC+aGjnop05pNgqXug9K7sRtJBJKjBTOocHveECFj6N
 gLElp47CIDOrSlXfgnEk2w==

<SEC-DOCUMENT>0001193125-06-261562.txt : 20061229
<SEC-HEADER>0001193125-06-261562.hdr.sgml : 20061229
<ACCEPTANCE-DATETIME>20061229132615
ACCESSION NUMBER:		0001193125-06-261562
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20070131
FILED AS OF DATE:		20061229
DATE AS OF CHANGE:		20061229
EFFECTIVENESS DATE:		20061229

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			EQUUS TOTAL RETURN, INC.
		CENTRAL INDEX KEY:			0000878932
		IRS NUMBER:				760345915
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	814-00098
		FILM NUMBER:		061305109

	BUSINESS ADDRESS:	
		STREET 1:		2727 ALLEN PKWY
		STREET 2:		13TH FLOOR
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77019
		BUSINESS PHONE:		7135290900

	MAIL ADDRESS:	
		STREET 1:		2727 ALLEN PARKWAY
		STREET 2:		13TH FLOOR
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77019

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	EQUUS II INC
		DATE OF NAME CHANGE:	19970422
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>ddef14a.htm
<DESCRIPTION>DEFINITIVE NOTICE AND PROXY STATEMENT
<TEXT>
<HTML><HEAD>
<TITLE>Definitive Notice and Proxy Statement</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>SCHEDULE 14A INFORMATION </B></FONT></P> <P STYLE="margin-top:16px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>Proxy Statement Pursuant to Section&nbsp;14(a) of the </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>Securities Exchange Act
of 1934 </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2">Filed by the Registrant <FONT
FACE="WINGDINGS">&#120;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Filed by Party other than the Registrant
</FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2">Check the
appropriate box: </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Preliminary proxy statement </FONT></TD></TR></TABLE>  <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>Confidential, for use of the Commission only (as permitted by Rule 14a-6(e)(2)</B> </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#120;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Definitive proxy statement </FONT></TD></TR></TABLE>  <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Definitive additional materials </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Soliciting materials pursuant to Rule 14a-11(c) or Rule 14a-12 </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>EQUUS TOTAL RETURN, INC. </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Name of Registrant as Specified in Its Charter) </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>Kenneth I. Denos, 2727 Allen Parkway, 13<FONT FACE="Times New Roman" SIZE="1"
COLOR="#000000"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"> Floor, Houston, TX 77019 </FONT></B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Name of
Person(s) Filing Proxy Statement) </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2">Payment of
Filing Fee (Check the appropriate box): </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#120;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">No fee required. </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(1)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title of each class of securities to which transaction applies: </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE WIDTH="99%">
<TR>
<TD WIDTH="3%">&nbsp;</TD>
<TD WIDTH="96%"><HR SIZE="1" NOSHADE COLOR="#000000" ALIGN="left"></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(2)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Aggregate number of securities to which transaction applies: </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE WIDTH="99%">
<TR>
<TD WIDTH="3%">&nbsp;</TD>
<TD WIDTH="96%"><HR SIZE="1" NOSHADE COLOR="#000000" ALIGN="left"></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(3)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was
determined): </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE WIDTH="99%">
<TR>
<TD WIDTH="3%">&nbsp;</TD>
<TD WIDTH="96%"><HR SIZE="1" NOSHADE COLOR="#000000" ALIGN="left"></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(4)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Proposed maximum aggregate value of transaction: </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE WIDTH="99%">
<TR>
<TD WIDTH="3%">&nbsp;</TD>
<TD WIDTH="96%"><HR SIZE="1" NOSHADE COLOR="#000000" ALIGN="left"></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(5)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Total fee paid: </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE WIDTH="99%">
<TR>
<TD WIDTH="3%">&nbsp;</TD>
<TD WIDTH="96%"><HR SIZE="1" NOSHADE COLOR="#000000" ALIGN="left"></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Fee paid previously with preliminary materials. </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing fee for which the offsetting fee was paid previously. Identify the
previous filing by registration number, or the form or schedule and the date of its filing. </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(1)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Amount Previously Paid: </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE WIDTH="99%">
<TR>
<TD WIDTH="3%">&nbsp;</TD>
<TD WIDTH="96%"><HR SIZE="1" NOSHADE COLOR="#000000" ALIGN="left"></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(2)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Form, Schedule, or Registration Statement No.: </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE WIDTH="99%">
<TR>
<TD WIDTH="3%">&nbsp;</TD>
<TD WIDTH="96%"><HR SIZE="1" NOSHADE COLOR="#000000" ALIGN="left"></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(3)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Filing Party: </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE WIDTH="99%">
<TR>
<TD WIDTH="3%">&nbsp;</TD>
<TD WIDTH="96%"><HR SIZE="1" NOSHADE COLOR="#000000" ALIGN="left"></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(4)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Date Filed: </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE WIDTH="99%">
<TR>
<TD WIDTH="3%">&nbsp;</TD>
<TD WIDTH="96%"><HR SIZE="1" NOSHADE COLOR="#000000" ALIGN="left"></TD></TR></TABLE>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>EQUUS TOTAL RETURN, INC. </B></FONT></P>  <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">December 29, 2006 </FONT></P>  <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Dear Fellow Stockholder: </FONT></P>  <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">A Special Meeting of Stockholders of Equus Total Return, Inc. (the &#147;Fund&#148;), will be held at 2777 Allen Parkway, Houston, TX 77019, on
January&nbsp;31, 2007 at 9:00 AM, Central Standard time to approve: (i)&nbsp;a proposal to allow the Fund to sell additional shares or rights to acquire shares at a market price that may be below net asset value and (ii)&nbsp;a proposal to increase
the authorized shares of common stock from 25,000,000 to 50,000,000. </FONT></P>  <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Board has unanimously approved these proposals and as
C.E.O., I view them to be important steps that are in the best interests of the Fund and its stockholders. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">I believe that the measures
will enhance stockholder value in several ways since, in my view, they should: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Provide capital for the Fund to take advantage of greater investment opportunities and participate in investments at a more meaningful level; </FONT></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Enable the Fund to generate additional earnings and hopefully grow the Fund&#146;s regular quarterly dividend recently established by the Board; </FONT></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Increase the liquidity of the Fund&#146;s shares, which may provide better execution of trades and attract more institutional investors; and </FONT></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Provide growth opportunities to the Fund that should be reflected in its market price and may reduce the discount of the market price to the net asset value per share.
</FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">During the last eighteen months, the Fund has realized significant gains from the sale of certain of its portfolio companies
while making new investments in companies with prospects for future gains. We will strive to continue this trend. Your approval in August 2006 for the change to a total return investment strategy has permitted the Fund to seek investments that are
capable of providing current income as well as capital gains. We believe that approval of these proposed measures should allow the Fund to continue the process of seeking attractive returns while adhering to prudent risk management policies.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Please review these proxy solicitation materials and complete and return the proxy card as soon as possible. Alternatively, you may vote
by telephone or via the Internet. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">It is very important that you vote and that your voting instructions be received no later than
January&nbsp;30, 2007. These proposals require a majority vote of stockholders and, in the case of Proposal 1, a majority vote of stockholders who are not affiliated persons of the Fund. Under the rules of the New York Stock Exchange, if you hold
shares in &#147;street name&#148; through an intermediary, such as a broker, bank or other nominee, the intermediary will not be permitted to vote your shares unless given specific instructions with respect to the proposals. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">If you have any questions after considering the enclosed material, please call 800-330-8705 (per the proxy card). </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Anthony R. Moore </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Chief Executive Officer and Co-Chairman </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="1"><B>WORTHAM TOWER </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="1"><B>2727 ALLEN PARKWAY </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="1"><B>THIRTEENTH FLOOR </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="1"><B>HOUSTON, TX 77019 </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="1"><B>TEL: (713)&nbsp;529-0900 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="1"><B>FAX: (713)&nbsp;529-9545 </B></FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>EQUUS TOTAL RETURN, INC. </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><B>Notice of Special Meeting of Stockholders of </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Equus Total Return, Inc. (the &#147;Fund&#148;) </B></FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="15%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="83%"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>Meeting Date:</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B></B>January&nbsp;31, 2007</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>Meeting Time:</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B></B>9:00 a.m., CDT<B></B></FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>Location:</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="2">Plaza I Room, Plaza Level</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="2">Riviana Building</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">2777 Allen Parkway</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Houston, Texas 77019</FONT></TD></TR>
</TABLE>  <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Agenda </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">To approve a proposal to authorize the Fund to offer and sell, or to issue rights to acquire, shares of its common stock at a price below the net asset value of such stock;
</FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">To approve the amendment of the Fund&#146;s Restated Certificate of Incorporation to increase the number of authorized shares of common stock from 25,000,000 to 50,000,000 shares;
and </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">To transact such other business as may properly come before the meeting or any adjournments or postponements thereof. </FONT></TD></TR></TABLE> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Voting </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">All holders of record of shares of the
Fund&#146;s common stock (NYSE: EQS) at the close of business on December&nbsp;8, 2006 (the &#147;Record Date&#148;), or their legal proxy holders, are entitled to vote at the meeting and any postponements or adjournments of the meeting. </FONT></P>
 <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Please submit a proxy as soon as possible so that your shares can be voted at the meeting in accordance with your instructions. You may submit
your proxy by mail, by telephone or via the Internet. For specific instructions, please refer to the Questions and Answers in this proxy statement and the instructions on the proxy card. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We are distributing this proxy statement and proxy card to stockholders on or about January&nbsp;3, 2007. </FONT></P>  <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>  <DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="100%"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By order of the Board of Directors,</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD></TR>
<TR>
<TD VALIGN="top">

<IMG SRC="g59003g58d24.jpg" ALT="LOGO"></TD></TR>
<TR>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">KENNETH I. DENOS</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman"
SIZE="2"><B><I>Secretary</I></B></FONT></P></TD></TR>
</TABLE></DIV>   <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">December 29, 2006 </FONT></P>  <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">Houston, Texas </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>EQUUS TOTAL RETURN, INC. </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>2727 Allen Parkway, 13<FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Floor </FONT></B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Houston, Texas 77019 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>PROXY
STATEMENT </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><HR WIDTH="21%" SIZE="1" NOSHADE COLOR="#000000">  <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">This proxy statement contains information relating to the special meeting of Equus Total Return, Inc. (the &#147;Fund&#148;) to be held on Wednesday, January&nbsp;31, 2007, beginning at 9:00 a.m., local time, at Plaza I Room, Plaza Level,
Riviana Building, 2777 Allen Parkway, Houston, Texas 77019, and at any adjournments or postponements thereof, and is furnished in connection with the solicitation of proxies by our Board of Directors (the &#147;Board&#148; and each member, a
&#147;Director&#148;) to be voted at the special meeting. This proxy statement and accompanying proxy card are being mailed to stockholders on or about January&nbsp;3, 2007. </FONT></P>  <P STYLE="margin-top:24px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ABOUT THE MEETING </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>What are the purposes of the special meeting? </I></B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">At the special meeting, stockholders will be asked to approve a proposal to authorize the Fund to offer and sell, or to issue rights to acquire, shares of
its common stock at a price below the net asset value of such stock (see Proposal 1), and to approve a proposal to amend the Fund&#146;s Restated Certificate of Incorporation to increase the number of authorized shares of common stock from
25,000,000 to 50,000,000 shares (see Proposal 2). </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>What is the Board&#146;s recommendation? </I></B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Unless you give other instructions on your proxy card, the persons named as proxy holders on the proxy card will vote in accordance with the
recommendation of the Board. The Board recommends a vote <B><I>for </I></B>approval of each Proposal. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">With respect to any other matter
that properly comes before the meeting, the proxy holders will vote in accordance with their discretion. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>What vote is required to approve the
Proposals? </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Approval of Proposal 1 requires the affirmative vote of the holders of: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">A majority of the Fund&#146;s outstanding voting securities; and </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">A majority of the Fund&#146;s outstanding voting securities that are not owned by affiliated persons of the Fund. </FONT></TD></TR></TABLE> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Approval of Proposal 2 requires the affirmative vote of the holders of a majority of the Fund&#146;s outstanding shares of common stock entitled to vote
thereon. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">A properly executed proxy marked &#147;Abstain&#148; with respect to a Proposal will not be voted in favor of or against such
matter, but will be treated as present and will have the effect of a vote &#147;Against&#148; the Proposal. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><I>Broker Non-Votes</I>. Under
New York Stock Exchange (&#147;NYSE&#148;) rules, Proposals 1 and 2 are non-routine matters. As a result, if you hold shares in &#147;street name&#148; through a broker, bank, or other nominee, your broker, bank, or nominee will <B>not</B> be
permitted to exercise voting discretion with respect to Proposals 1 or 2. Thus, if you do not give your broker or nominee specific instructions with respect to Proposals 1 or 2, your shares may have the effect of a vote &#147;Against&#148; such
Proposal. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><I>Adjournment</I>. The chairman of the meeting or the holders of a majority of the shares of the Fund,
present in person or represented by proxy, although not constituting a quorum, may adjourn the meeting. If a vote is required to adjourn the meeting, the persons named as proxy holders will vote those proxies for adjournment, unless marked to be
voted against the Proposal for which an adjournment is sought. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>How are votes counted? </I></B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">For each Proposal, you may vote &#147;For,&#148; &#147;Against,&#148; or &#147;Abstain.&#148; If you &#147;Abstain,&#148; it has the same effect as a vote
&#147;Against.&#148; If you sign your proxy card or broker voting instruction card with no further instructions, your shares will be voted in accordance with the recommendations of the Board. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>Who is entitled to vote at the meeting? </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">If
you owned shares of the Fund at the close of business on December&nbsp;8, 2006 (the &#147;Record Date&#148;), you are entitled to receive notice of, and to participate in, the special meeting. A list of stockholders on the Record Date will be
available for inspection at the Fund&#146;s office at 2727 Allen Parkway, 13</FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Floor, Houston, Texas for ten days
before the special meeting. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>What are the voting rights of holders of the Fund&#146;s common stock? </I></B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">You may cast one vote per share of the Fund&#146;s common stock that you held on the Record Date on each item considered at the special meeting. These
shares include shares that are: (1)&nbsp;held directly in your name as the stockholder of record and (2)&nbsp;held for you as the beneficial owner through a stockbroker, bank, or other nominee. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>Who can attend the special meeting? </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">All
stockholders as of the Record Date, or their duly appointed proxies, may attend the special meeting. Each stockholder may be asked to present valid identification. Cameras, recording devices and other electronic devices will not be permitted at the
special meeting. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Please note that if you hold your shares in &#147;street name&#148; (that is, through a broker, bank, or other nominee),
you will need to bring a copy of a brokerage statement reflecting your stock ownership as of the Record Date. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>What constitutes a quorum?
</I></B></FONT></P>  <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The presence at the meeting, in person or by proxy, of the holders of a majority of the shares of common stock outstanding on
the Record Date will constitute a quorum, thus permitting the meeting to conduct its business. As of the Record Date, 8,163,691 shares of the Fund&#146;s common stock, representing the same number of votes, were outstanding. </FONT></P>  <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Proxies received but marked as abstentions or broker non-votes will be included in the calculation of the number of shares considered to be present at
the meeting. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>What is the difference between holding shares as a stockholder of record and as a beneficial owner? </I></B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Many stockholders of the Fund hold their shares through a stockbroker, bank or other nominee, rather than directly in their own name. As summarized below,
there are some distinctions between shares held of record and those owned beneficially. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><I>Stockholder of Record</I>. If your shares are
registered directly in your name with the Fund&#146;s transfer agent, American Stock Transfer&nbsp;&amp; Trust Company, you are considered, with respect to those shares, the stockholder of record, and these proxy materials are being sent directly to
you by the Fund. As the stockholder of record, you have the right to grant your voting proxy directly to the Fund or to vote in person at the special meeting. We have enclosed a proxy card for you to use. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><I>Beneficial Owner</I>. If your shares are held in a stock brokerage account or by a bank or other
nominee, you are considered the beneficial owner of shares held in street name, and these proxy materials are being forwarded to you by your broker or nominee who is considered, with respect to those shares, the stockholder of record. As the
beneficial owner, you have the right to direct your broker on how to vote and are also invited to attend the special meeting. However, since you are not the stockholder of record, you may not vote these shares in person at the special meeting. Your
broker or nominee has enclosed a voting instruction card for you to use in directing the broker or nominee regarding how to vote your shares. Please bear in mind that the processing of proxies tendered by beneficial holders requires an extra step,
thus, in order to ensure your response is counted, you should return your response as soon as possible. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>How can I vote my shares in person at the
special meeting? </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Shares held directly in your name as the stockholder of record may be voted in person at the special meeting. If
you choose to do so, please bring the enclosed proxy card or proof of identification. Even if you plan to attend the special meeting, we recommend that you vote your shares in advance as described below so that your vote will be counted if you later
decide not to attend the special meeting. Shares held in street name may be voted in person by you only if you obtain a signed proxy from the record holder giving you the right to vote the shares. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>How can I vote my shares without attending the special meeting? </I></B></FONT></P>  <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Whether you hold shares directly as the stockholder of record or beneficially in street name, you may direct your vote without attending the special meeting by completing and mailing a proxy card or voting instruction
card in the enclosed pre-paid envelope. Alternatively, you may be able to vote by telephone or via the Internet. Please refer to the enclosed materials for details. </FONT></P>  <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><B><I>Can I change my vote after I return my proxy card? </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Yes. You may change your proxy
instructions at any time prior to the vote at the special meeting. You may accomplish this by granting a new proxy card or new voting instruction card bearing a later date (which automatically revokes the earlier proxy instructions) or by attending
the special meeting and voting in person. Attendance at the special meeting will not cause your previously granted proxy to be revoked unless you so request. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2"><B><I>What does it mean if I receive more than one proxy or voting instruction card? </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">It means your shares are registered
differently or are in more than one account. Please provide voting instructions for all proxy and voting instruction cards you receive. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>Where can I
find the voting results of the special meeting? </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We will announce preliminary voting results at the special meeting, assuming there
is no adjournment. We will also publish the final results in a press release and Form 8-K and in our annual report on Form 10-K for the year ended December&nbsp;31, 2006. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><B><I>Who can I call if I have a question? </I></B></FONT></P>  <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">If you have any questions about this proxy
statement, please call (800)&nbsp;330-8705 between 10:00 a.m. and 10:00 p.m., Eastern Standard Time, Monday through Friday. </FONT></P>  <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">3 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>STOCK OWNERSHIP </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><B><I>Who are the largest owners of the Fund&#146;s stock? </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Based on a review of filings with the
Securities and Exchange Commission (&#147;SEC&#148;), the Fund is aware of two beneficial owners of more than 5% of the outstanding shares of the Fund&#146;s common stock: (i)&nbsp;MCC Europe Limited, Moore, Clayton&nbsp;&amp; Co., Inc., Anthony R.
Moore and Sharon Clayton, as a group and (ii)&nbsp;Sam P. Douglass. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>How much stock do the Fund&#146;s Directors and executive officers own?
</I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The following table shows the amount of the Fund&#146;s common stock beneficially owned (unless otherwise indicated) as of
November&nbsp;30, 2006, by (1)&nbsp;any person known to the Fund to be the beneficial owner of more than 5% of the outstanding shares of the Fund&#146;s common stock, (2)&nbsp;each Director, and (3)&nbsp;all executive officers and Directors as a
group. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The number of shares beneficially owned by each entity, person, Director, or executive officer is determined under SEC rules and
the information is not necessarily indicative of beneficial ownership for any other purpose. Under such rules, beneficial ownership includes any shares as to which the entity or individual has sole or shared voting power or investment power and also
any shares that the entity or individual had the right to acquire as of November&nbsp;30, 2006, or within 60 days after November&nbsp;30, 2006, through the exercise of any stock option or other right. Unless otherwise indicated, to our knowledge
each individual has sole investment and voting power, or shares such powers with his spouse, with respect to the shares set forth in the table. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="62%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD VALIGN="bottom"> <P STYLE="margin-right:0px;margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Name</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Sole<BR>Voting and<BR>Investment<BR>Power</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Other<BR>Beneficial<BR>Ownership</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Total</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Percent of<BR>Class<BR>Outstanding<SUP>(1)</SUP></B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">MCC Europe Limited, (&#147;MCCE&#148;)<BR>Moore, Clayton&nbsp;&amp; Co., Inc., (&#147;MCC&#148;)<BR>Anthony R. Moore,<BR>Sharon
Clayton</FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP>(2)</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">1,463,013</FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP></SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"></FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP>(3)</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,463,013</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">18.0</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">%</FONT></TD></TR>
<TR>
<TD HEIGHT="5"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="2"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Sam P. Douglass</FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP>(4)</SUP></FONT><FONT FACE="Times New Roman" SIZE="2"
COLOR="#000000"></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">22,815</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">428,381</FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP></SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"></FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP>(5)</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">451,196</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">5.6</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">%</FONT></TD></TR>
<TR>
<TD HEIGHT="5"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="2"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Richard F. Bergner</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
<TD HEIGHT="5"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="2"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Charles M. Boyd, M.D.&nbsp;&nbsp;</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">1,067</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,067</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">*</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
<TD HEIGHT="5"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="2"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Alan D. Feinsilver</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">20,000</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">20,000</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">*</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
<TD HEIGHT="5"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="2"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Gregory J. Flanagan</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">12,000</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12,000</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">*</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
<TD HEIGHT="5"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="2"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Henry W. Hankinson</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
<TD HEIGHT="5"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="2"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Robert L. Knauss</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">2,389</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">683</FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP></SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"></FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP>(6)</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,072</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">*</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
<TD HEIGHT="5"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="2"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Dr.&nbsp;Francis&nbsp;D. Tuggle</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">6,000</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,000</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">*</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
<TD HEIGHT="5"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD>
<TD HEIGHT="5" COLSPAN="2"></TD>
<TD HEIGHT="5" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">All Directors and executive officers as a group (15 persons)</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">1,541,442</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">429,064</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,970,506</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="right" COLSPAN="1" VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">24.3</FONT></TD>
<TD COLSPAN="1" NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">%</FONT></TD></TR>
</TABLE> <HR WIDTH="10%" SIZE="1" NOSHADE COLOR="#000000" ALIGN="left">
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;*</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Indicates less than one percent. </FONT></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(1)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Based on 8,106,365 shares of the Fund&#146;s common stock, par value $.001 per share, outstanding as of November&nbsp;30, 2006. There are no options, warrants, rights or conversion
privileges outstanding with respect to the Fund&#146;s common stock. </FONT></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(2)</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">The address of MCCE is 14 Hay&#146;s Mews, London W1J 5PT, United Kingdom. The address of MCC is 10757 South River Front Parkway, Suite 125, South Jordan, Utah
84095. Mr.&nbsp;Moore&#146;s business address is 2727 Allen Parkway, 13</FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Floor, Houston, Texas 77019, and
Ms.&nbsp;Clayton&#146;s business address is 10757 South River Front Parkway, Suite 125, South Jordan, Utah 84095. Mr.&nbsp;Moore and Ms.&nbsp;Clayton are principal shareholders of MCC which is the parent company of, among other entities, MCCE, and
Moore, Clayton </FONT>
</P></TD></TR></TABLE>  <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">4 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px; margin-left:0%">
<FONT FACE="Times New Roman" SIZE="2">Capital Advisors, Inc., the Fund&#146;s investment adviser. The number of shares beneficially owned by MCCE, MCC, Mr.&nbsp;Moore and Ms.&nbsp;Clayton is
based on the Schedule 13D/A they filed jointly on March&nbsp;8, 2006. </FONT></P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(3)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">1,177,283 shares are subject to pledge agreements executed by MCC, MCCE and Manchester Securities Corp. in connection with promissory notes issued by MCC to Manchester Securities
Corp. See &#147;<I>How did MCCE, MCC, Mr. Moore and Ms. Clayton acquire their beneficial interest in the Fund?</I>&#148; below. In addition, 479,846 shares are subject to pledge agreements executed in connection with the sale of Equus Corporation
International&#146;s (&#147;ECI&#148;) interest in Equus Capital Management Corporation, the Fund&#146;s former investment adviser, to MCC. Specifically, 383,877 shares are pledged or are agreed to be pledged to trusts for the benefit of members of
Mr. Douglass&#146; family and 95,969 shares are pledged to Lehmann Investments, LP. The Douglass family trusts and Lehmann Investments, LP were shareholders of ECI. </FONT></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(4)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Mr. Douglass&#146; business address is 2727 Allen Parkway, 13</FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="2"
COLOR="#000000"> Floor, Houston, Texas 77019. </FONT></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(5)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Includes (a) 33,150 shares held directly and in retirement accounts by Paula T. Douglass, an officer of the Fund and Mr. Douglass&#146; spouse and (b)&nbsp;395,231 shares held by
trusts for the benefit of members of Mr. Douglass&#146; family, of which Mr.&nbsp;Douglass is the trustee and a lifetime beneficiary, a trust of which Mr. Douglass is the beneficiary, and a trust of which Ms. Douglass is the beneficiary.
Mr.&nbsp;Douglass disclaims beneficial ownership of all shares not directly owned by him. </FONT></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(6)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Includes 683 shares held by the Robert L. Knauss Defined Plan (the &#147;Knauss Plan&#148;) of which Mr.&nbsp;Knauss is a control person. Mr.&nbsp;Knauss disclaims beneficial
ownership of the shares held by the Knauss Plan. </FONT></TD></TR></TABLE>  <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>How did MCCE, MCC, Mr.&nbsp;Moore and Ms.&nbsp;Clayton acquire their beneficial
interest in the Fund? </I></B></FONT></P>  <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">On June&nbsp;30, 2005 and July&nbsp;1, 2005, MCCE purchased 1,111,250 shares of the Fund from Fund
employees and Directors, Avroham Sukenik and Edgar McDonald. To finance these transactions, MCC borrowed $9,700,000 from Manchester Securities Corp. (&#147;Manchester&#148;) by issuing a promissory note in favor of Manchester pursuant to a note
purchase agreement between MCC and Manchester. A copy of the note purchase agreement between MCC, MCCE and Manchester was attached as an exhibit to the Schedule 13D/A filed by MCCE, MCC, Mr.&nbsp;Moore and Ms.&nbsp;Clayton on July&nbsp;11, 2005. On
December&nbsp;30, 2005, MCCE purchased 517,158 shares of the Fund from Karpus Management, Inc. d/b/a Karpus Investment Management, and 149,605 shares from Full Value Partners L.P. To finance these transactions, MCC borrowed $6,539,615 from
Manchester by issuing a promissory note in favour of Manchester pursuant to a note purchase agreement between MCC and Manchester. A copy of the note purchase agreement was attached as an exhibit to the Schedule 13D/A filed by MCCE, MCC,
Mr.&nbsp;Moore and Ms.&nbsp;Clayton on January&nbsp;10, 2006. Both promissory notes issued by MCC to Manchester (collectively the &#147;Notes&#148;) are secured, among other assets, by the shares of the Fund in a pledge agreement executed by MCC,
MCCE and Manchester. On February&nbsp;23, 2006, MCCE sold 315,000 shares of the Fund. </FONT></P>  <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">On August&nbsp;22, 2006, the shareholders of
MCC entered into an agreement with Ifex Innovation Finance and Equity Exchange NV, a corporation (Naamloze Vennootschap) organized in the Kingdom of the Netherlands (&#147;IFEX&#148;), wherein IFEX would acquire all of the outstanding shares of MCC
in exchange for 375,000,000 new ordinary shares of IFEX (the &#147;Acquisition&#148;). Pursuant to the terms of the Acquisition agreement, the Acquisition must be completed before January&nbsp;31, 2007. Should the Acquisition be completed, the
shareholders of MCC will collectively hold 83.33% of the outstanding ordinary share of IFEX. In addition, following such completion, MCC will become a wholly-owned subsidiary of IFEX and IFEX will change its name to &#147;MCC Global NV.&#148; IFEX
will assume MCC&#146;s obligations including the Notes issued to Manchester. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">MCCE is a wholly-owned subsidiary of MCC and will continue to
be a wholly-owned subsidiary of MCC and IFEX following completion of the Acquisition. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">5 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>GOVERNANCE OF THE FUND </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><B><I>What are the duties of the Board of Directors? </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Board provides overall guidance and
supervision with respect to the operations of the Fund and performs the various duties imposed on the directors of business development companies by the Investment Company Act of 1940 (the &#147;Investment Company Act&#148;). Among other things, the
Board supervises the management arrangements of the Fund, the custodial arrangements with respect to portfolio securities, the selection of accountants, fidelity bonding, and transactions with affiliates. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">All actions taken by the Board are taken by majority vote unless a higher percentage is required by law or unless the Investment Company Act or the
Fund&#146;s certificate of incorporation or by-laws require that the actions be approved by a majority of the Directors who are not &#147;interested persons&#148; (as defined in the Investment Company Act) of the Fund&#151;referred to as
&#147;Independent Directors.&#148; The Investment Company Act requires that a majority of the Fund&#146;s Directors be Independent Directors. In addition, in order to rely on Section&nbsp;15(f) of the Investment Company Act, which provides a safe
harbor for an investment adviser to an investment company or any of the investment adviser&#146;s affiliated persons (as defined under the Investment Company Act) to receive any amount or benefit in connection with a change in control of the
investment adviser, certain conditions must be met, one of which is that for a period of three years after the transaction, at least 75% of the Board members of the investment company must not be &#147;interested persons&#148; of the investment
company&#146;s investment adviser or its predecessor adviser. Stockholders of the Fund approved the Fund&#146;s investment advisory agreement (the &#147;Management Agreement&#148;) with Moore, Clayton Capital Advisors, Inc. on June&nbsp;30, 2005.
The Fund has undertaken to comply with the requirements of Section&nbsp;15(f), and therefore 75% of the Board of Directors may not be interested persons with respect to MCCA or the Fund&#146;s predecessor Adviser for a period of three years
following June&nbsp;30, 2005. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">As required by the Investment Company Act, Proposal 1 was approved by (i)&nbsp;a majority of the Fund&#146;s
Independent Directors and (ii)&nbsp;a majority of the Fund&#146;s Directors who have no financial interest in Proposal 1. As required by Delaware law, the Board approved amending the Fund&#146;s Restated Certificate of Incorporation to increase the
number of authorized shares of common stock, subject to stockholder approval of Proposal 2 at the special meeting. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>Do any Directors or executive
officers have a substantial interest in the Proposals? </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Fund&#146;s Board of Directors asked James M. Walsh, then a Director of
the Fund, to provide financial advisory services to the Fund in connection with a possible public offering of the Fund&#146;s equity securities. Mr.&nbsp;Walsh is the managing principal of Walsh Advisors, LLC, a consulting firm; he has more than 34
years experience in the investment banking business. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In light of the proposed arrangement, Mr.&nbsp;Walsh resigned from the Board on
November&nbsp;14, 2006. After Mr.&nbsp;Walsh&#146;s resignation, the Fund entered into a formal consulting agreement (the &#147;Walsh Agreement&#148;) with Walsh Advisors, LLC. Pursuant to the Walsh Agreement, Walsh Advisors serves as a financial
advisor to the Fund. Walsh Advisors consults with the Fund and coordinates with an investment banking firm that may act as the lead underwriter in connection with a possible public offering. For the services provided under the Walsh Agreement, the
Fund has paid Walsh Advisors a fee of $75,000 on November&nbsp;15, 2006 for services rendered from the period of July&nbsp;15, 2006 through October&nbsp;15, 2006, and will pay a fee of $25,000 monthly thereafter for the remaining term of the
Agreement, which is January&nbsp;15, 2007. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Board of the Fund, including the Independent Directors voting separately, approved the
Walsh Agreement. Among other things, the Directors considered, evaluated and determined whether: (a)&nbsp;the Walsh Agreement is in the best interest of the Fund and its stockholders; (b)&nbsp;the services to be performed pursuant to the Walsh
Agreement are services required for the operation of the Fund; (c)&nbsp;Walsh Advisors can provide services the nature and quality of which are at least equal to those provided by unaffiliated third parties offering the same or similar services; and
(d)&nbsp;the fees for such services are fair and reasonable in light of the usual and customary charges made by others for services of the same nature and quality. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">6 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>INVESTMENT ADVISER AND ADMINISTRATOR </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><B><I>Who is the Fund&#146;s investment adviser? </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Fund&#146;s investment adviser is Moore,
Clayton Capital Advisors, Inc. (&#147;MCCA&#148;) and its principal offices are located at 2727 Allen Parkway, 13</FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">
Floor, Houston, Texas 77019. MCCA is a wholly-owned subsidiary of MCC, an international private equity investment and advisory firm with offices in Salt Lake City, Los Angeles, San Francisco, New York, London, Cape Town, and Johannesburg. MCC
specializes in strategic and financial advisory services for, and investment in, emerging and established companies operating in traditional industries. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Established in 1999, MCC provides introductions and commercial opportunities through its worldwide contact network of professionals, financial intermediaries, and business executives. The firm works with its clients
to explore the risks and rewards of a variety of transactional and strategic alternatives such as international agreements and negotiations, joint ventures, mergers and acquisitions, divestitures, privatizations, restructurings and
recapitalizations. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>Who is the Fund&#146;s administrator? </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">The Fund&#146;s administrator is Equus Capital Administration Company, Inc. (the &#147;Administrator&#148;) and its principal offices are located at 2727 Allen Parkway, 13</FONT><FONT FACE="Times New Roman" SIZE="1"
COLOR="#000000"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Floor, Houston, Texas 77019. The Administrator is a wholly-owned subsidiary of MCC and was formed for the purpose of managing the Fund&#146;s administrative
and business operations. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>PROPOSAL 1&#151;TO AUTHORIZE THE FUND TO OFFER AND SELL, OR TO ISSUE RIGHTS TO ACQUIRE, SHARES OF THE
FUND&#146;S COMMON STOCK AT A PRICE BELOW THE CURRENT NET ASSET VALUE OF SUCH STOCK </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>Stockholder Authorization </I></B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Investment Company Act generally prohibits the Fund, as a business development company (&#147;BDC&#148;), from offering and selling, or issuing rights
to acquire, shares of its common stock at a price below the then current net asset value of such stock unless the policy and practice of doing so is approved by the Fund&#146;s stockholders within one year immediately prior to any such sales. At all
times since their listing, shares of the Fund&#146;s common stock have traded on the NYSE at a price below their net asset value. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">Accordingly, the Fund is requesting that its stockholders authorize the offer and sale, or the issuance of rights to acquire, shares of the Fund&#146;s common stock at a price below net asset value per share at the time of sale, subject to
certain conditions discussed below. If approved, the authorization would be effective for a period expiring on the first anniversary of the approval by the stockholders of this Proposal and would permit the Fund to engage in such transactions at
various times within that period. </FONT></P>  <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Fund has retained an investment banking firm to advise on available financing options, including
a common stock offering and a rights offering. If stockholders approve Proposal 1 and Proposal 2 below, the Fund should have greater flexibility in taking advantage of changing market and financial conditions in connection with an equity offering.
As of the date of this Proxy Statement, the Board has not approved the terms of a specific offering. This Proxy Statement is not an offer of securities. Securities may not be offered or sold in the United States absent registration with the SEC or
an applicable exemption from the registration requirements. </FONT></P>  <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In a common stock offering, investors are offered an ownership interest
in a corporation. Stockholders typically are entitled to vote on the selection of corporate directors and other important matters, as well as to receive distributions on their holdings to the extent such distributions are declared. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">7 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In a rights offering, each stockholder receives the right to purchase a specified number of additional
shares of the Fund&#146;s common stock, pro-rata, based on the number of shares held as of a specified record date. Rights issued in a rights offering may be transferable (in which case rights not exercised by a stockholder may be separately
transferred) or non-transferable (in which case rights may only be exercised by the receiving stockholder). If stockholders approve this Proposal, the Fund will be authorized to sell common stock and to issue transferable rights and/or
non-transferable rights. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Generally, common stock offerings for BDCs are priced based on the market price of the currently outstanding
shares of common stock, less a small discount of approximately five per cent. Since the Fund&#146;s shares typically trade at a market price below net asset value, stockholder approval would permit the Fund to offer and sell shares of its common
stock in accordance with pricing standards that market conditions generally require. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>Investment Company Act Conditions </I></B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Fund&#146;s ability to issue shares or rights to acquire shares at below net asset value is governed by the Investment Company Act. Specifically,
Section&nbsp;63(2) of the Investment Company Act provides that the Fund may offer and sell, or issue rights to acquire, shares of its common stock at prices below the then current net asset value with stockholder approval, provided that: </FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Any such sales are approved by (1)&nbsp;a majority of the Fund&#146;s Independent Directors and (2)&nbsp;a majority of the Fund&#146;s Directors who have no financial interest in
the Proposal, as being in the best interests of the Fund and its stockholders; and </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Such a required majority of Directors, in consultation with the underwriter of the offering, if it is underwritten, have determined in good faith, and as of a time immediately prior
to the first solicitation by or on behalf of the Fund of any firm commitment to purchase such securities or immediately prior to the issuance of such securities, that the price at which such securities are to be sold is not less than a price which
closely approximates the market value for those securities, less any distributing commission or discount. </FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Without the
approval of its stockholders to offer and sell, or issue rights to acquire, shares of common stock at prices below its net asset value per share, the Fund would be prohibited from selling such securities to raise capital when the market price for
its common stock is below its net asset value. The Fund&#146;s shares have for the most part traded at a discount to net asset value since they began trading, which is not uncommon for a BDC like the Fund. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>Board Approval </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">On November&nbsp;14, 2006, the
Board unanimously approved, and is recommending that the stockholders vote in favor of, Proposal&nbsp;1 to offer and sell, or issue rights to acquire, shares of the Fund&#146;s common stock at prices that may be less than net asset value. The Board
concluded that the Proposal is in the best interests of the Fund and its stockholders. In doing so, the Board, including the Independent Directors, considered and evaluated factors including the following, as discussed more fully below: </FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Possible long-term benefits to Fund stockholders; </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Possible dilution to the Fund&#146;s net asset value; and </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">The gross amount of the management and administration fees. </FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">Prior to approving Proposal 1, the Board met on several occasions to consider and evaluate material that management provided on the merits of the Fund possibly raising additional capital and the merits of publicly offering the Fund&#146;s
shares at a price below their net asset value. The Board also met with one of the Fund&#146;s financial advisors, a national investment services firm. The firm advised the Board on the objectives of a possible </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">8 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">offering, the mechanics of an offering, establishing size parameters of an offering, the possible effect of dilution, comparable company analysis, comparable
company liquidity, and other matters. The Board further met with an investment banking firm, which discussed with the Directors similar matters, as well as case studies of other business development companies that recently engaged in secondary
offerings. The Independent Directors also met on several occasions with their independent counsel without management present to consider and evaluate the issues presented. </FONT></P>  <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Board evaluated a full range of offering sizes. However, the Board has not yet drawn any definite conclusions regarding the size of a contemplated
capital raise at this time. The Board expects that any increase in capital would be from a public offering of the Fund&#146;s common stock or rights to acquire additional shares of common stock; however, the Board has not excluded the possibility of
one or more private placements. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In determining whether or not to actually offer and sell common stock or issue rights, the Board of
Directors has a duty to act in the best interest of the Fund and its stockholders, and must comply with the other requirements of Section&nbsp;63(2) of the Investment Company Act. If stockholders do not approve Proposal 1, the Board will consider
and evaluate the options for the Fund to determine what alternatives are in the best interest of the Fund and its stockholders, including the Fund growing solely through investment returns. </FONT></P>  <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>Possible Benefits to Fund Stockholders </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The
Board believes that the Fund&#146;s ability to offer and sell, or issue rights to acquire, shares of common stock below net asset value is in the best interests of the Fund and its stockholders. In reaching that conclusion, the Board considered the
following possible benefits to Fund stockholders: </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><I>Greater Investment Opportunities </I></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">With more assets, the Board believes that the Fund may have better access to capital markets to take advantage of attractive investment opportunities. An
increase in the capital will not only give the Fund more capital to invest in its total return strategy, but may provide qualitative differences in its investment profile that may be beneficial. A larger pool of capital may allow the Fund to
participate in investments at a higher and more meaningful level. </FONT></P>  <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Based on discussions with management, the Board believes that
greater deal flow, which may be achieved with more capital, may enable the Fund to be a more significant participant in the private equity market and to compete more effectively for the more attractive investment opportunities. With more capital to
invest in portfolio opportunities, the Fund intends to compete for high quality investment opportunities with other funds and private equity investment vehicles with greater resources. Management has represented to the Board that such investment
opportunities may be funded with proceeds of an offering. However, management has not identified specific companies in which to invest the proceeds of an offering given that specific investment opportunities will change depending on the timing of an
offering. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">A larger pool of invested capital spread over a range of investment opportunities within the Fund&#146;s investment strategy of
seeking businesses that will benefit from current social trends and major demographic shifts will be more likely to provide the Fund with an earnings stream that is characteristic of a total return fund. These businesses could include, but not
necessarily be limited to, subsets of the energy sector developing renewable and alternative sources of energy, as well as medical technology and services directed toward an aging population, real estate transactions in properties whose values may
be expected to appreciate due to demand from the increased number of retirees, and leisure time and entertainment industries. Since the beginning of the fourth quarter of 2005, the Fund has committed a total of $28.7 million to investments in
companies in these industries and is reviewing additional opportunities in similar companies. </FONT></P>  <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Fund selected MCCA as adviser in
part to obtain access to the potential deal flow that can be generated from the MCC network of industry contacts. The Board believes that with additional capital the Fund may be better able to utilize the contacts that MCC has developed over seven
years in its various industry concentrations. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">9 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><I>Regular Quarterly Dividends </I></FONT></P>  <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">A consistent stream of earnings derived from a larger and more diversified portfolio could provide the Fund with a larger and, more importantly, more
predictable cash flow, which might support a sustainable regular dividend. On October&nbsp;23, 2006, the Fund announced a managed distribution policy for it to pay quarterly dividends to stockholders at the annual rate of a minimum of $0.50 per
share, commencing in the fourth quarter of 2006. This is the first time the Fund has had a policy to pay a regular quarterly dividend. Although management will seek to generate Fund income sufficient to pay Fund dividends, proceeds from a future
offering may be used to pay such dividends. </FONT></P>  <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><I>Reduced Discount </I></FONT></P>  <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The share price of the Fund has consistently traded at a significant discount to the net asset value of the Fund. In this regard, the investment banking
firm that met with the Board provided the Directors with a stock trading analysis of several BDCs. The analysis suggested that the stock of a BDC with a larger, more diverse investment portfolio, among other characteristics, trades closer, or at a
premium, to its net asset value. The investment banking firm and a financial advisor to the Fund further suggested to the Directors that the stock of a BDC that pays a regular quarterly dividend may trade closer to its net asset value. Based on this
information, the Board hopes that a combination of a larger, more diverse Fund investment portfolio and a regular quarterly dividend may result in a Fund share market price that is closer to its net asset value. </FONT></P>  <P
STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><I>Reduced Expenses Per Share </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">An
offering that increases the Fund&#146;s total assets may reduce its expenses per share due to the spreading of fixed expenses over a larger asset base. The Fund must bear certain fixed expenses, such as governance and certain compliance costs that
do not generally vary based on the size of the Fund. On a per share percentage basis, these fixed expenses will be reduced on a relative basis when supported by a larger asset base. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><I>Liquidity </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">If the Fund issues
additional shares, the Fund&#146;s market capitalization and the amount of its publicly tradable common stock will increase, which may afford all holders of the Fund&#146;s common stock greater liquidity. With approximately eight million shares
currently outstanding, there is limited daily trading volume in the Fund&#146;s shares. The Board believes that this low trading volume subjects the shares to significant price volatility due to their relatively low trading volume. For example, a
stockholder who buys additional Fund shares, or who sells some or all of such stockholder&#146;s shares, may experience significant swings in the share price while executing that purchase or sale, even for relatively small numbers of shares. Greater
liquidity in the Fund&#146;s shares could reduce this effect. A larger number of shares outstanding may absorb the effect of purchases or sales with less volatility in price. </FONT></P>  <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">A relatively low percentage of the Fund&#146;s shares are now held by institutional investors as compared to the shareholder profile of other BDCs. The
Board of Directors believes that the low historic liquidity of the Fund&#146;s shares, among other factors, has impaired institutional investment. The Board believes that an increase in the liquidity of the Fund&#146;s shares as a result of a
proposed offering, together with an orderly underwritten placement of shares in connection with the offering, may result in an increase in institutional ownership of the Fund&#146;s shares. </FONT></P>  <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>Dilution </I></B></FONT></P>  <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">An offering of the Fund&#146;s
common stock or rights to acquire additional shares of common stock below their net asset value will have the immediate effect of diluting the interest of current stockholders. In reaching its recommendation to the stockholders, the Board considered
the effect of dilution to the Fund&#146;s net asset value. </FONT>
</P>  <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">10 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">Any issuance of common stock, or rights to acquire common stock, below net asset value will have the effect of causing immediate dilution of the aggregate
net asset value of outstanding shares of common stock, irrespective of whether stockholders purchase shares of common stock or exercise all or any portion of their rights in an offering. </FONT></P>  <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The precise extent of any dilution cannot be estimated in advance of the determination of the terms of a common stock or rights offering; however, as a
general proposition the amount of dilution of net asset value will increase as the size of any equity financing increases. Another factor that will influence the amount of dilution in an offering is the amount the Fund receives from such offering.
The Board would expect that the net proceeds to the Fund will be equal to the price that investors pay per share, typically 95% of the market price, less the amount of any underwriting discount and commission. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">As previously discussed, the Board evaluated a full range of offering sizes. The following example indicates how an offering to double the number of
issued shares of the Fund would immediately affect the net asset value of the common stock based on the assumptions set forth below. It does not include any effects or influence on market share price due to investment performance over time, dividend
policy, greater trading volume or other qualitative aspects of the Fund&#146;s shares. <I>These are intended to be indicative calculations and are not projections of future results of the Fund</I>. </FONT></P>  <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="74%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD WIDTH="22%"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Current shares outstanding</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">8.1&nbsp;million</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Net asset value at 9/30/06</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$92.4 million</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Net asset value per share</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$11.47</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Market price at 11/22/06</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$8.10</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Prevailing discount to net asset value</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">29.4%</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Number of new shares issued at $8.00 per share</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">8.1 million</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Net proceeds after issuance costs</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$61.6 million</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Net asset value after issuance</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$154 million</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Shares outstanding after issuance</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">16.2 million</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Net asset value per share after issuance</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$9.51</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Dilution effect</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">17.1%</FONT></TD></TR>
</TABLE>   <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">To further elaborate on the noted example, an assumed rate of return on the total
portfolio of 11% after one year would generate a return on portfolio of $13.5 million for a total net asset value of $167.5 million. Therefore, one year after the offering in this example, the net asset value per share would be $10.33 and the
residual dilution to the September&nbsp;30, 2006 net asset value would be 9.9%. However, an assumed rate of return on the total portfolio of 0.0% after one year would generate a return on portfolio of $0.0. In this latter case, one year after the
offering, the net asset value per share would remain at $9.51 and the residual dilution would remain at 17.1%. </FONT></P>  <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The discount to net
asset value is a result of market perception that moves the share price and thus net asset value is only one determinant of market value. Market price will incorporate a discount or premium factor based on the market assessment of future earnings
and the likelihood of those earnings supporting growth in dividend yield. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Notwithstanding the dilutive effect of any equity financing on
the Fund&#146;s net asset value, the Board has considered the Fund&#146;s need to obtain additional capital for investment and other factors discussed in this proxy statement. With more capital to invest, the Board believes that the Fund may be able
to make investments with more significant earnings and growth potential. The Board further believes that over time the value of the incremental assets available for investment, taken together with the other factors previously discussed, may be
reflected positively in the market price of the Fund&#146;s shares and that such increases may exceed the initial dilutive effects that the Fund is likely to experience in its net asset value per share. In the Board&#146;s view, the Fund&#146;s
market share price is an important gauge of the true economic impact on stockholders of any equity financing. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">11 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>Gross Amount of Management and Administration Fees </I></B></FONT></P>  <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In reaching its recommendation to the stockholders, the Board also considered the effect of the gross amount of the management fees payable to MCCA. The
issuance of additional shares of common stock will increase the aggregate management fees that the Fund pays to MCCA as the management fee is calculated based on a percentage of assets under management. The increase in the Fund&#146;s asset base
resulting from an increase in capital in connection with an offering of common stock or a rights offering would increase assets of the Fund under management, and would thereby increase the gross amount of management fees paid to MCCA. This increase,
however, will not increase or decrease the management fee as a percentage of assets under management. MCCA has advised the Board that it intends to use a significant portion of any increase in gross management fees to hire additional professional
personnel, such as investment staff, who will provide services to the Fund. The Administrator does not believe that the Fund&#146;s fees under the administration agreement, dated as of June&nbsp;30, 2005, between the Fund and the Administrator, will
increase as a result of any increase in the size of the Fund from the issuance of additional shares. </FONT></P>  <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Independent Directors also
considered the potential conflict of interest inherent in any proposal by management to have the Fund issue additional shares of common stock. The Independent Directors concluded, however, that the benefits to the Fund of having a larger capital
base, as discussed above, would outweigh any advantages to MCCA or the Administrator as a result of such increase in assets under management. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>Other
Considerations </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In reaching its recommendation to the stockholders, the Board also considered the effect of the following factors:
</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">The terms and expenses of a common stock or rights offering below net asset value relative to other alternatives for raising capital, and relative to not raising capital;
</FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">The size of a common stock or rights offering in relation to the number of shares outstanding; </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">The general condition of the securities markets; and </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Any impact on operating expenses associated with an increase in capital. </FONT></TD></TR></TABLE>  <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2"><B><I>Potential Investors </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Presently, the Fund has not solicited any potential buyers of the shares or rights that the Fund
may elect to issue in any future offering to comply with the federal securities laws. No shares or rights are earmarked for management or other affiliated persons of the Fund. However, members of management and other affiliated persons of the Fund
may participate in a common stock or rights offering. </FONT></P>  <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><I>Required Stockholder Vote </I></B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">If the stockholders approve this Proposal, during a one-year period commencing on the date of such approval, the Fund will be permitted, but not required
or otherwise obligated, to offer and sell, or to issue rights to acquire, newly issued shares of its common stock at a price below net asset value at the time sold. The Board believes that the Proposal is important because of the flexibility it
would provide in raising additional capital even if the Fund&#146;s common stock is trading at prices below net asset value. Approval of this Proposal requires the affirmative vote of the holders of: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">A majority of the Fund&#146;s outstanding voting securities; and </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">A majority of the Fund&#146;s outstanding voting securities that are not owned by affiliated persons of the Fund. </FONT></TD></TR></TABLE> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>The Board, including its Independent Directors, unanimously recommends that each stockholder vote &#147;FOR&#148; this Proposal to authorize the Fund
to offer and sell, or to issue rights to acquire, shares of its common stock at a price below the current net asset value of such stock. </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">12 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>PROPOSAL 2&#151;APPROVAL TO AMEND THE FUND&#146;S RESTATED CERTIFICATE OF INCORPORATION TO INCREASE THE
NUMBER OF AUTHORIZED SHARES OF COMMON STOCK </B></FONT></P>  <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The authorized capital stock of the Fund currently consists of 25,000,000 shares of
common stock, $.001 par value, and 5,000,000 shares of preferred stock, $.001 par value. On the Record Date, 8,163,691 shares of the Fund&#146;s common stock were outstanding. </FONT></P>  <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Board of Directors of the Fund believes that it is in the best interests of the Fund to have additional shares of common stock available for issuance
at the Board&#146;s discretion for future equity financings, stock splits, stock dividends, and other corporate purposes. Accordingly, the Board has proposed an amendment to the Restated Certificate of Incorporation of the Fund to increase the
number of shares of the Fund&#146;s common stock available for issuance from 25,000,000 to 50,000,000. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">If this Proposal 2 is approved by
the stockholders of the Fund, the additional shares of the Fund&#146;s common stock may be issued from time to time upon authorization of the Board, without further approval by the stockholders unless required by the Investment Company Act, other
applicable law, or the rules of the NYSE. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Management of the Fund is considering various options with respect to possible equity offerings,
including the issuance of shares of common stock and rights to acquire shares. The Fund has retained an investment banking firm to advise on available financing options. If stockholders approve this Proposal 2 and Proposal 1 above, the Fund will
have greater flexibility in taking advantage of changing market and financial conditions in connection with an equity offering. As of the date of this Proxy Statement, the Board has not approved the terms of a specific offering. This Proxy Statement
is not an offer of securities. Securities may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from the registration requirements. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Issuance of new shares of common stock, other than pro rata to all existing stockholders, would be potentially dilutive to the voting power of existing
stockholders and could also be dilutive with regard to dividends and other economic aspects of common stock. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The increase in authorized
shares is not being proposed as a means of preventing or dissuading a change in control or takeover of the Fund. However, use of these shares for such a purpose is possible. Shares of authorized but unissued or unreserved common stock and preferred
stock, for example, could be issued in an effort to dilute the stock ownership and voting power of persons seeking to obtain control of the Fund or could be issued to purchasers who would support the Board in opposing a takeover proposal. The
proposed amendment therefore may have the effect of discouraging unsolicited takeover attempts. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The proposed amendment does not change the
terms of the Fund&#146;s common stock, which does not have preemptive rights. The additional shares of common stock for which authorization is sought will have the same voting rights and rights to dividends and distributions, and will be identical
in all other respects to the Fund&#146;s common stock now authorized. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Approval of the amendment of the Fund&#146;s Restated Certificate of
Incorporation requires the affirmative vote of the holders of a majority of the outstanding shares of the Fund&#146;s common stock. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>The
Board, including its Independent Directors, unanimously recommends that each stockholder vote &#147;FOR&#148; the amendment of the Fund&#146;s Restated Certificate of Incorporation to increase the number of authorized shares of common stock from
25,000,000 to 50,000,000 shares. </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">13 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>OTHER MATTERS </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">The Board knows of no matter that is likely to come before the special meeting. However, if any other matter properly comes before the meeting, the individuals named as proxy holders will vote in accordance with their
discretion on such matters. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In the event that sufficient votes in favor of the proposals set forth in the Notice of the Special Meeting
are not received by the time scheduled for the special meeting, the chairman of the meeting or the holders of a majority of the shares of the Fund, present in person or represented by proxy, although not constituting a quorum, may adjourn the
meeting. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ANNUAL AND QUARTERLY REPORTS </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">A copy of the Fund&#146;s 2005 Annual Report to Stockholders and copies of the Fund&#146;s quarterly reports on Form 10-Q are available without charge upon request. Please direct your request to Equus Total Return,
Inc., Attention: Investor Relations, P.O. Box 130197, Houston, Texas 77219-0197, (713)&nbsp;529-0900 or toll-free at (800)&nbsp;856-0901. Copies also may be requested through the Fund&#146;s website at <I>www.equuscap.com</I>. (Information contained
on the Fund&#146;s website is not incorporated into this proxy statement.) Copies are also posted via EDGAR on the SEC&#146;s website at<I> www.sec.gov</I>. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>ADDITIONAL INFORMATION </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>Stockholder Proposals for the 2007 Annual Meeting</B>.<B>
</B>Stockholders interested in submitting a proposal for inclusion in the proxy materials for the annual meeting of stockholders in 2007 may do so by following the procedures prescribed in SEC Rule 14a-8. To be eligible for inclusion, the
Fund&#146;s Secretary must receive stockholder proposals no later than January&nbsp;1, 2007. Proposals should be sent to the Fund, c/o Moore, Clayton Capital Advisors, Inc., 2727 Allen Parkway, 13</FONT><FONT FACE="Times New Roman" SIZE="1"
COLOR="#000000"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Floor, Houston, Texas 77019, Attention: President. Submission of a stockholder proposal does not guarantee inclusion in the Fund&#146;s proxy statement or
form of proxy because certain SEC rules must be met. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In addition, under our by-laws no business may be brought before a stockholder
meeting unless it is specified in the notice of the meeting or is otherwise properly brought before the meeting by or at the direction of the Board or by a stockholder entitled to vote who has delivered an appropriate notice to the Fund&#146;s
Secretary. To be properly brought before such a meeting a stockholder must deliver a written notice to the Fund at the address set forth in the following paragraph of the stockholder&#146;s intention to present a proposal (containing certain
information specified in the by-laws about the stockholder and the proposed action) not less than 60 nor more than 90 days&#146; prior to the meeting. However, in the event less than 70 days&#146; notice or prior public disclosure of the date of the
meeting is given to stockholders, such notice to be timely must be received not later than the close of business on the fifth day following the day on which such notice is mailed or such public disclosure was made. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Stockholder proposals with respect to Director nominations require written notice of your intent to make such a nomination either by personal delivery or
by U.S. mail, postage prepaid, to Kenneth I. Denos, Secretary, Equus Total Return, Inc., 2727 Allen Parkway, 13</FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">
Floor, Houston, Texas 77019, within the time limits described above for delivering a stockholder proposal notice and comply with the information requirements in our by-laws relating to Director nominations by stockholders. These requirements are
separate from and in addition to the SEC&#146;s requirements that a stockholder must meet in order to have a stockholder proposal included in the Fund&#146;s proxy statement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The proxy solicited by the Board of Directors for the 2007 Annual Meeting will confer discretionary authority to vote on any stockholder proposal
presented at that meeting, unless the Fund is provided with notice of such proposal no later than March&nbsp;17, 2007. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">14 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">A copy of the full text of the by-law provisions discussed above may be obtained by writing to the
Corporate Secretary, 2727 Allen Parkway, 13</FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Floor, Houston, Texas 77019 and is included as an exhibit to the
Fund&#146;s annual report on Form 10-K for the period ended December&nbsp;31, 1995 as filed with the SEC via EDGAR on March&nbsp;1, 1996. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2"><B>Communications with the Board</B>. Interested parties who wish to communicate directly with the Board, or specified individual Directors may do so by writing to the Board or individual Directors in care of the Secretary, Equus Total
Return, Inc., 2727 Allen Parkway, 13</FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Floor, Houston, Texas 77019. At the direction of the Board, all mail received
will be opened and screened for security purposes. The mail will then be logged in. All mail, other than trivial or obscene items, will be forwarded. Trivial items will be delivered to the Directors at the next scheduled Board meeting. Mail
addressed to a particular Director will be forwarded or delivered to that Director. Mail addressed to &#147;Independent Directors,&#148; &#147;Outside Directors&#148; or &#147;Non-Management Directors&#148; will be forwarded or delivered to the
Chairman of the Committee of Independent Directors. Mail addressed to the &#147;Board of Directors&#148; will be forwarded or delivered to the Chairman of the Board. Concerns relating to accounting, internal controls, or auditing matters are handled
in accordance with procedures established by the Audit Committee with respect to such matters. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>Corporate Governance</B>. The Fund is a
Delaware corporation subject to the provisions of the Delaware General Corporation Law (&#147;DGCL&#148;). The Fund&#146;s day-to-day operations and requirements as to the place and time, conduct, and voting, at a meeting of stockholders are
governed by the Fund&#146;s certificate of incorporation and by-laws, the provisions of the DGCL, the provisions of the Investment Company Act and NYSE rules. The Fund has adopted a code of business conduct and ethics applicable to our Directors,
officers (including our principal executive officer, principal financial officer and controller) and employees. Our code of business conduct and ethics meets NYSE listing standard requirements and the requirements of Section&nbsp;406 of the
Sarbanes-Oxley Act of 2002. A copy of our certificate of incorporation and by-laws, code of business conduct and ethics, corporate governance guidelines, and the charters of the Audit, Compensation, and Nominating and Corporate Governance Committees
may be obtained by writing to the Secretary, Equus Total Return Inc., 2727 Allen Parkway, 13</FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Floor, Houston, Texas
77019. Our code of business conduct and ethics, corporate governance guidelines and committee charters are also available by accessing the Fund&#146;s website at www.equuscap.com. (Information contained on the Fund&#146;s website is not incorporated
into this proxy statement.) In the event that the Fund amends or waives any provisions of our code of business conduct and ethics applicable to our principal executive officer, principal financial officer or controller, we intend to disclose the
same on the Fund&#146;s website at www.equuscap.com. </FONT></P>  <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>Proxy Solicitation Costs</B>. The proxies being solicited hereby are being
solicited by the Board of Directors of the Fund. The cost of soliciting proxies in the enclosed form will be paid by the Fund. Officers and regular employees of the Fund and MCCA may, but without compensation other than their regular compensation,
solicit proxies by further mailing or personal conversations, or by telephone, facsimile, or electronic means. Copies of solicitation material will be furnished to brokerage houses, fiduciaries and custodians to forward to beneficial owners of stock
held in the name of such nominees. We will, upon request, reimburse brokerage firms and others for their responsible expenses in forwarding solicitation material to the beneficial owners of stock. In addition, the Fund has retained The Altman Group
(&#147;Altman&#148;), a proxy solicitation firm, to assist in the solicitation of proxies. It is anticipated that Altman will be paid approximately $20,000 by the Fund for such solicitation services (plus reimbursement of out-of-pocket expenses).
Altman may solicit proxies personally and by telephone. Authorization to permit Altman to execute proxies may be obtained by telephonic or electronically transmitted instructions from stockholders of the Fund. Proxies that are obtained
telephonically will be recorded in accordance with procedures that management of the Fund believes are reasonably designed to ensure that the identity of the stockholder casting the vote is accurately determined and that the voting instructions of
the stockholder are accurately determined. </FONT></P>  <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">15 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="51%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="47%"></TD></TR>
<TR>
<TD VALIGN="top">

<IMG SRC="g59003image002.jpg" ALT="LOGO"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">PROXY</FONT></P></TD></TR>
</TABLE>   <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>EQUUS TOTAL RETURN, INC. </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2727 ALLEN PARKWAY, 13TH FLOOR, HOUSTON, TEXAS 77019 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>THIS PROXY IS SOLICITED BY THE
BOARD OF DIRECTORS OF EQUUS TOTAL RETURN, INC. (THE &#147;FUND&#148;) </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>FOR THE SPECIAL MEETING OF STOCKHOLDERS ON JANUARY&nbsp;31,
2007 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The undersigned hereby constitutes and appoints Anthony R. Moore or Sam P. Douglass, with full power of substitution and revocation to each, the
true and lawful attorneys and proxies of the undersigned at the Special Meeting of Stockholders of the Fund, to be held on January&nbsp;31, 2007, at 9:00 a.m. local time, at, Plaza I Room, Plaza Level, Riviana Building, 2777 Allen Parkway, Houston,
TX 77019, and at any adjournments or postponements thereof (the &#147;Special Meeting&#148;) and to vote the shares of Common Stock, $.001 par value per share, of the Fund (&#147;Shares&#148;), standing in the name of the undersigned on the books of
the Fund on December&nbsp;8, 2006, the record date for the Special Meeting, with all powers the undersigned would possess if personally present at the Special Meeting. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">This proxy when properly executed will be voted in the manner directed herein. If no direction is made, the proxy will be voted FOR each Proposal. The Board of Directors knows of no other matter to come before the
meeting. If any other matter is properly brought before the meeting, the proxies will have discretion to vote the proxy on such matter in accordance with their discretion. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:65%"><FONT FACE="Times New Roman" SIZE="1"><B>The undersigned hereby acknowledges previous receipt of the Notice of Special Meeting of Stockholders and the Proxy Statement and hereby revokes any
proxy or proxies heretofore given by the undersigned. </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:65%"><FONT FACE="Times New Roman" SIZE="1">________________________________________________________ </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:65%"><FONT FACE="Times New Roman" SIZE="1">Signature(s) of Stockholder
(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:65%"><FONT
FACE="Times New Roman" SIZE="1">Note: Please sign exactly as your name or names appear on this Proxy. When shares are held jointly, each holder should sign. When signing as executor, administrator, attorney, trustee or guardian, please give full
title as such. If the signer is a corporation, please sign full corporate name by duly authorized officer, giving full title as such. If signer is a partnership, please sign in partnership name by authorized person. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><HR SIZE="1" NOSHADE COLOR="#000000" ALIGN="left"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B><FONT
FACE="WINGDINGS">&#233;</FONT><B></B> FOLD HERE <FONT FACE="WINGDINGS">&#233;</FONT><B></B> </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Three simple methods to vote your proxy: </B></FONT></P>
 <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="18%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD WIDTH="62%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2"><B>Internet:</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Log on to <U>www.myproxyonline.com</U>. Make sure to have this proxy card available when you plan to vote your shares. You will need the control number and check digit found in the box at the
right at the time you execute your vote.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B><U>CONTROL<BR></U><U>NUMBER</U><U>:</U></B></FONT></TD></TR>
<TR>
<TD HEIGHT="32"></TD>
<TD HEIGHT="32" COLSPAN="2"></TD>
<TD HEIGHT="32" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2"><B>Touchtone</B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:1px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2"><B>Phone:</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Simply dial toll-free 866-437-4683 and follow the automated instructions. Please have this proxy card available at the time of the call.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B><U>CHECK</U></B></FONT><br><FONT FACE="Times New Roman" SIZE="2"><B><U>DIGIT ID:</U></B></FONT></TD></TR>
<TR>
<TD HEIGHT="32"></TD>
<TD HEIGHT="32" COLSPAN="2"></TD>
<TD HEIGHT="32" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2"><B>Mail:</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Simply sign, date, and complete the reverse side of this proxy card and return it in the postage paid envelope provided.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD HEIGHT="32"></TD>
<TD HEIGHT="32" COLSPAN="2"></TD>
<TD HEIGHT="32" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">TAGID: 12345678</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">CUSIP:&nbsp;123456789</FONT></TD></TR>
</TABLE>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>SPECIAL MEETING OF STOCKHOLDERS OF EQUUS TOTAL RETURN, INC. </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>THE BOARD OF DIRECTORS RECOMMENDS A VOTE &#147;FOR&#148; EACH PROPOSAL. </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#120;</FONT> </FONT></P>  <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD WIDTH="68%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">FOR</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">AGAINST</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">ABSTAIN</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">P1.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">To authorize the Fund to offer and sell, or to issue rights to acquire, shares of its common stock at a price below the current net asset value of such stock.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD></TR>
<TR>
<TD HEIGHT="32"></TD>
<TD HEIGHT="32" COLSPAN="2"></TD>
<TD HEIGHT="32" COLSPAN="2"></TD>
<TD HEIGHT="32" COLSPAN="2"></TD>
<TD HEIGHT="32" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">P2.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="2">To approve the amendment of the Fund&#146;s Restated Certificate of Incorporation to increase the number of authorized shares of common stock from
25,000,000 to 50,000,000 shares.</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD></TR>
</TABLE>  <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>  <P STYLE="margin-top:96px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>PLEASE DATE, SIGN AND MAIL YOUR
PROXY CARD IN THE ENVELOPE PROVIDED AS SOON AS POSSIBLE. </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>EVERY STOCKHOLDER&#146;S VOTE IS IMPORTANT! </B></FONT></P> <P
STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:96px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">If you should have any questions about the proxy material or the execution of your vote, simply
call 800-330-8705 between the hours of 10 am and 10 pm Eastern Standard Time. Representatives will be happy to assist you. Please have this proxy card available at the time of the call. </FONT></P> <P
STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="1">SCANNER BAR CODE </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="1">TAG ID:
12345678&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CUSIP: </FONT></P>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>g59003g58d24.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 g59003g58d24.jpg
M_]C_X``02D9)1@`!`@$`8`!@``#_[0I\4&AO=&]S:&]P(#,N,``X0DE-`^T`
M`````!``8`````$``0!@`````0`!.$))300-```````$````'CA"24T$&0``
M````!````!XX0DE-`_,```````D```````````$`.$))300*```````!```X
M0DE-)Q````````H``0`````````".$))30/U``````!(`"]F9@`!`&QF9@`&
M```````!`"]F9@`!`*&9F@`&```````!`#(````!`%H````&```````!`#4`
M```!`"T````&```````!.$))30/X``````!P``#_____________________
M________`^@`````_____________________________P/H`````/______
M______________________\#Z`````#_____________________________
M`^@``#A"24T$"```````$`````$```)````"0``````X0DE-!!X```````0`
M````.$))300:``````!M````!@``````````````-0```*@````&`&<`-0`X
M`&0`,@`T`````0`````````````````````````!``````````````"H````
M-0`````````````````````````````````````````````X0DE-!!$`````
M``$!`#A"24T$%```````!`````(X0DE-!`P`````!]\````!````<````",`
M``%0```M\```!\,`&``!_]C_X``02D9)1@`!`@$`2`!(``#_[@`.061O8F4`
M9(`````!_]L`A``,"`@("0@,"0D,$0L*"Q$5#PP,#Q48$Q,5$Q,8$0P,#`P,
M#!$,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,`0T+"PT.#1`.#A`4#@X.
M%!0.#@X.%!$,#`P,#!$1#`P,#`P,$0P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,
M#`P,#`S_P``1"``C`'`#`2(``A$!`Q$!_]T`!``'_\0!/P```04!`0$!`0$`
M`````````P`!`@0%!@<("0H+`0`!!0$!`0$!`0`````````!``(#!`4&!P@)
M"@L0``$$`0,"!`(%!P8(!0,,,P$``A$#!"$2,05!46$3(G&!,@84D:&Q0B,D
M%5+!8C,T<H+10P<EDE/PX?%C<S46HK*#)D235&1%PJ-T-A?25>)E\K.$P]-U
MX_-&)Y2DA;25Q-3D]*6UQ=7E]59F=H:6IK;&UN;V-T=79W>'EZ>WQ]?G]Q$`
M`@(!`@0$`P0%!@<'!@4U`0`"$0,A,1($05%A<2(3!3*!D12AL4(CP5+1\#,D
M8N%R@I)#4Q5C<S3Q)086HK*#!R8UPM)$DU2C%V1%539T9>+RLX3#TW7C\T:4
MI(6TE<34Y/2EM<75Y?569G:&EJ:VQM;F]B<W1U=G=X>7I[?'_]H`#`,!``(1
M`Q$`/P#U54<KJ^'CW'&:79.6(G%QVFRP;OH>MM_1XK+/S+<NRBG_`(15F69/
M6RYU5C\7I(<6MMJ=MNR@/:Y]-S??BX/^BOI_6LO^?QKL;&]*W-T<7$QL.D48
MM3*:@20Q@#1).YSM/SWN]SWI*:)O^L5\FG$Q\-A^@[(M=99\+,?&9Z+?[&?:
MI]/ZAEOR[>G]1J95EU,;=6^EQ=5;4XNK]2OU&UV5VU6,_6*/TGH^KC_K%OJK
M164PB[ZT6QQA8+`>()R;;';?ZS&]/9_VZDIU5EY74\BSJM/2^F%CK:G-MZF]
M[2]M6.0XMJEEE>S-RW;/L[?TFRCULBRO^9]:-O4<CJ&19@])):RLEF5U.`:Z
MG#VOIQ`_<S+S6_0_[B8=G]*]:VG]GW7.G=.Q.FX_V?%86M+B^Q[B7/L>[^<O
MOM?NLNNL_/ML24VE3ZAU$88KJJK.3FY&X8V*TAKGEHW6/>]_MIQZ?\/>_P#D
M55^KDW8^/=<6-U&P=/ZU3U3(8^S#?CNQ76L8Y_V=V]MV][*M[VX^7_VHOV;*
M/LF-ZOL?^C2DC>F=1S"+.JYCFL)D86$YU-3>X;9EMV9V2YG[[;,/'O\`\)@H
MK^@]+->QE1H/:VE[ZK!_U^E[+?\`IH?_`#I^K&T._:^#!X/VFK7X?I$')^M>
M!35ZE-&5E"8;Z=+F!Y)VULQ[<W[)1E66O_FJL:VZVS^HDIM]+R,ESLG"RG^K
M=A/#!?`!MK<QMM-UK&!M==WN?3=Z?Z-]E/KUU8]5S,>J^N;K'7\+&R<W,MQ.
MGF^WUKGQ;FO)?MQ\?$QZ6#I^RVNMN/C4MJ;E_:\G_`>MD(G3:OK=?6^S(RJL
M6JP@T59%#;<EK8^E>[$NQ<.E[W>_T&5Y7I?]R$E/0)+*%/UFH]S<G#S0.*;*
M;,9Q/_ANN[,:S_V`>BX75V7WC#RJ7X.=!<,>V"'AL;[,2]A=5E5,W>_9^GI_
M1_:J,?U4E/\`_]#U-E;*V!E;0QC=&M:(`^`"DAWWT8]+[\BQM--0+K++'!K6
MM'+GO=#6M6;]MZCU26]-8</#.AZA>R+'@_2^P8=HW?O;,K.9Z._T[:L/J&-8
MDI/U/JU>"&U5UNR\ZT?J^%5'J/[>H[=[*,9COY[*N_05?\;9579@870OK)U*
MI[^J7CI3,Q_JYV/CEMN1<?YME+\K^8Q,6FBJBBO&QF9'K5^I]JRK;,F]='@=
M,Q,!KS2'/NN@Y&3:=]UI;]%U]SO<_;_@V?S5/\W1755[%;24\[U'IC.D=)NR
M:L_,99BUQCACV`;@!5BXU."VIG3_`-(_TL>FAN+]-;E5EM6&RS-+&VLK#LDU
MSL#@V;O3W>_T]WT$'+Z>W+RL2VU\T8CG6C'(D.N@-Q[GN_[K?IG,KV_S_HW_
M`,YC5JXDIA3=5?2R^EXLJM:'UO:9#FN&YCVG]US5-8M6/UOI-3</IU&/G8-6
MF,+;G8]E5?\`@\7VX^75?5CM_1U7;Z+/0V5^E;;7Z]Y'876L]T9^2W!QOSL;
M!<XV/X_G.I6,HN96[]S$QL3(_P"[GYB2DN;UBJBXX>)6<WJ1$C%J/T)$L?FW
M^ZO"I=^_=^DN]_V2G*M_1)L+I=GVEO4NI/;D=0#2U@;/HT-/TJL.M_YSO\/E
MV?K&3_P./Z6)1:PL'#P*!CX=+**@=Q:P1+C]*Q_^DL?^?8_](]6$E*225"_H
MV+=:^TVY3'V<[,K(:T3^Y2V[T*_[%:2F^LGZRFD=/828R_7J_9T1O.3N_1-I
M_K,]5N3_`-T?M7K_`*MZRE_S>Q#]/)SG#P^VY+?QJOK<C8?1>F85QR**=V21
MM.3<]]]^T_F?:LI]V1LT^AZJ2G__T>LZC]G_`.=#)]/[1ZF)'V_U_0VS?/[/
MC]0_:/\`W"W_`*QZGV[9_A%U*^54DE/U4DOE5))3]5)+Y5224_522^54DE/U
M4DOE5))3]5)+Y5224_522^54DE/_V0`X0DE-!"$``````%4````!`0````\`
M00!D`&\`8@!E`"``4`!H`&\`=`!O`',`:`!O`'`````3`$$`9`!O`&(`90`@
M`%``:`!O`'0`;P!S`&@`;P!P`"``-@`N`#`````!`#A"24T$!@``````!P`(
M``$``0$`_^X`#D%D;V)E`&1``````?_;`(0``0$!`0$!`0$!`0$!`0$!`0$!
M`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0("`@("`@("`@("`P,#`P,#`P,#
M`P$!`0$!`0$!`0$!`@(!`@(#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#
M`P,#`P,#`P,#`P,#`P,#`P,#`P,#_\``$0@`-0"H`P$1``(1`0,1`?_=``0`
M%?_$`&P```("`P$!```````````````(!@D#!PH$!0$!````````````````
M`````!````<!`0`!`P,#!`,!`````0(#!`4&!P@`$A$3"2$4%2(6%T$C)A@R
M,R4G$0$`````````````````````_]H`#`,!``(1`Q$`/P#OX\!X#P)5=?R&
M<DU"V2V=Q&F/METZ`6_:V'+^9<^TCJ30ZL],BHNBUO%6Y[J6D2.="N1/^E:P
MEBFQ0.03JE*<IA""ROY&JA4U'\AH?+/=V>T2*$ZDMITQRO=;-4(E@F*9EIJ7
MCLS<7W0(J`:-S&7=/W$&DT8-TE%72B)""/@?*KVBM7>M5ZYTRP0EMJ%MA(JR
MU6TUJ48SE=LM<G6*$G"ST#-1B[F-EX:7C72;AJZ;J*(KHJ%.0QBF`1#[O@/`
MB.I=OEH_;>"\-4["-0U"]ZW3+'K=YT&%<5B(S+$,7K*KF&=WNY2<C*J3SYY(
MW11C$1\>A'D3?.'9P2="JW40\#W>`\$`U'5<VQ*@V74M>O-8S?.J='FE+-<K
MA,,X.`AV8'(BF9R_?*I)"X=N52(-T"?)=RX4(BD0ZIR$$$DC^ANL^G`:N.4,
M<C,1R&20^ZVZ4['J=RB9R?9.44E64OE/(4=(T?4YN,726^I75YF\]4*8"J(L
M7Z!@,8)3&<&P5B*23Z*Z%ZEZ0M1WHR"[B9W"[8CGC8YDETBQ49B?,<IC&5.H
M!DDX$C8LY&SLF!2%.X?.5_DN8/7+\'TF%02D<"V#HWG"ZQI"FA9NF[AHF@TH
M54$%$F[2T8?MUATO%[5$K?(I'`J0B$J"`?%I(,U0(L0)OSEN-WM]AT/"=XAJ
MY6^D,7:5>9MY*4C)H9UIF;7US9F>;[AEZ,T_EYB)JUR>TN9CGT%(/'4I6Y^&
M?,E5WS+^-EY0&O\``>`\!X#P?__0[^/`DDWUC.Z3-SU"XUH4=N]CKTBZ@K3K
MMCGWM-Y=SZ;8N#LI>(D-0C86R2>HW6ON2'(XK].CY4&SQ`[*7D8-404`/&KQ
M4.K+(RG8>Q7'I53X_);*8Y)]C'*S914"%>-`P*HV.4<Z)`O"$$!8Z59-"(F!
MS`D<A3"'@<&GTJG9Y7(RGT"I5FC5&%1%O#5:GP,56:Y$MQ.904(R$A6K*,8(
MBH<3?%)(A?J(C]/J/@DW@KL_':V2JT?V3D<,C',J+C/>.\UK.8>)*<D=7JSH
ML1GW1,G7F*(F%!E'PM[VR90:,VY$FD<T(DT03(D@0O@L3\":]-=6.,KG(##,
M1J37;NOM,B7<EFV-)S'\1"5JNI'79.MHWJTMV\@IE^$5J02^TYDS-W$C,/0"
M-A6C^14!`H?:Y3YC#G^"M5GO-M-K?26S24=;NB=S?19(AW?;8Q8F9Q5>JL+^
MX?#1L:SEDNI'5"L).%T8B/$ZBRSN2=R,@\!L/`>"K7'*A&]D]8;1T9JS52RY
MKR'M=@YWY(S2=9(N*9`:/F,;"H;AT^O#NVYT)36W.F2<E3:])*"J-<@ZVNI'
M"@O-2(G"TKP'@/`C:;IE;?R0"-<.F=7#N-9:%U5PW^0)*RG1&QU&<Q^$=N$C
M?MW4K78?GJV/3M5/JXCVL^W6^)$Y$AE0=&7FH:OLCR4]+1D)')G334?R[]K&
MLDU%C`1),[IXJB@4ZIQ^A0$WU,/Z!X/6T=M7[5L^8N6[UD\01=,WC19-PU=M
M7"956[ELX1,=)=!=(X&(<HB4Q1`0$0'P>CP'@/!__]'K&BGDO^16PVT1D)6`
MX$IEFL=!19PKYY!6#M&[4J=<UV[NY*:8*(RD9R96;+&/(=)FT5:N=%D&+E1P
MJ:J?:1L06-P%?@:I!0U7JT+$UNM5V+80=?KT#'-(B#@X6*:I,8R(AXJ/1;L8
MV,CF2!$4$$4R)))$*4I0*`!X/K^`\!X*YOQ@N4;?@&B[HW9M&K'IGK3K;<ZV
MZ:)"D$_FTSO%TIN*6U8P.7:+A2W8?1ZW)%42.*1TG1/C^GZB$BUKI^]7Z^S_
M`#3Q2PK]VV2!=?Q&Q;99&KF6P/DTCA`Q_P#G"T>\CCZEMYDC%5C<YAWJ+XA3
M)NIYY",%FBKX-V<X\ST?FVNV%K"2MFONA:'/&N6R;9HKUC,:GL=X51!N:QW.
M7CHZ)BFS2.:`#2'A8IG'0%>C2)LHQDT:D*EX&+\!X#P57M+DZ_'GKFXI:'0=
M(G>2>A=:L'055VC,:#;=5;8+I5^CH$FMYWM=.S^)LN@5^D6J]QKNVPUR2C7<
M`S/.2#"76B$F$>M(!O:*_);^.F:CTY.-[SXW6:',*2@J]+XTT<-'1/T7CY)B
M\N3=]%2K-0!3<-'*:3ENJ4R:I"'*8H!#%ORI<,RPN&^1;&YZGEDT2J-X;C//
M-*Z_<NSG45033&3YRJ.D5N*1!TB*2SN1?,F#(WZNET"`)@!>-]_(WUO68B'8
M8C^/>P,M!TR5/4L#I?4^W9YF.@[/:068B]?TG'L74Z"M;:D4^'??S%DE+D^H
M3:OP[=9=^HW/^W1<A+L7_'MT=$%O$MN_?NG2,UL%ZF-3U^#YBSZC<]1%RNLW
M'5Z$9M9+2)AMJF^$A,ZI=8C*G7C0-GJPDK4+'IN$5':;ARX!.+IRMA_1&GW_
M``GAS`ZK(62DR4_1.@/R@]4Q%GZVF<4LS62<0MURGF6W=3R^GV_<>D&*R#ME
M-.TY4M0H[M$$Y9>0E&X0/@=[)OPZ<9YIE&>Y#94]XW:N9I5(6G5HNX]*;A;8
M=A#0+%..9HQ.:Q5XKF-U056R10<_PM;COWIB%.Y^\H4#@$W)^*7B>)=(2N?T
MC4L7L#(5SQ]CP?IWIW%)=FJX$AE3'-FNOUMC+-E#)E^ZTD$';%P0/MK(J)B)
M!#(YRKN[GUR,OB^Z,.P\[9MT1=8=U8E6Z3K:31K\06;9GT_EM,AHQX__`&A3
M"V97JJ3*T@\^)'5C8(G,X1#?G.?56=='M[3$1$;;<WUO-G;.*V'G_5HIK6-C
MR68D$CK1Z5G@6<C,0\U6YQ)%12'LL`_F*M/(IG4C9)V1-02!_]+O)HE!IN95
MM"GT&OL*M5VLI8YAI!Q95$X]G(6VR2UNL"C1!110&J+ZPSKIP"*?Q00^[]M(
MA$BD(4)?X#P'@I9_+[^2;&>4<VD,!<[Y6<9V#8ZZ6/G="<+'E93G3'+,X=05
MEV9M58QG+S]PU!W'(OV>=5*-9/9FSV1(7";48:(G7S`$OI^F_DG[3I&?XAPY
MQK>."OQU4"DU7.*/HO1.D*\X;UJ^>TBO1D#6HJOP-6@-'V?%,Q4@&+9%!6*B
M6MBL#`Y565GKBI#@<+*LIX][7S6D0=&J'7'.^"TNNM5FM>RWF_A]A#T.!!U*
M2<G(.UW^K[KI]GLU@F7+\'$A)**LCOGYUW*B/W5S"`;*PW;-ZJ_4DWQGT3-9
M_K-B)@+?HBA[AE]%GLQ1?51I?FV;3E1UC.Y2UW^)KER--OT7,-(14T9E/M$)
M'_YT::/^CH+`O`>`\!X(?*9[09M\M*35'I\O)N13%Q(RE9A9!\N*22:"0K.W
M;)5PJ*:*12%^1A^A2@`?H`>!4]KZQCJ%:S<T\U4EAN_5B=?C7K#'(*2"O4+'
M:U)HG3@+YT?H#",EHG%,Y.B@92/:G;N;)8R(*)0,5("DN9N$IYYYC<YA.V#8
MMAO:F[=07V.3B+GL+^!2K,/7ZF@_6DXW)<3H99&:;91CT$\6^X2/3>/I28=E
M!]-2$F^`JY`;/P8&[9NT3,DU;H-DC+N7)DVZ2:*9G#UPJ\>.#$3*4HKNW:YU
M53_^2BAS&,(F$1\&?P'@/!6Y^0.N)9F&,]M4-)O#;#@NP8K1;!)M4!17T[F_
M<MGI.2;'C5M5;$%Q,P3:,OO]W5]!4#E8W*O1RY!(FH[*L'__T^_CP'@\SUZS
MC6;N1D7;5A'L&J[U^_>KI-6;)FU2.NZ=NW2YTT&S5L@F8ZBAS%(0A1$1``\%
M<*_4^G]>+25-X`4BV&?-I%6'MO>%\JZUAQ=@W1(J23;<N5,[^)'IR[(.4_VA
M9K]PSSV'7.9P9_/+LUX%<-C9#^.CD7(Y^LZ*.25W5-ZKLG/V5QTSMD5#:9T+
M8;O;#PREHO4MI,Y%B_86"4_M]FBW3BDXV.A8YLC'1+5A&HI,R`\/@CMOMM:H
M-3M%[NDW'UJG4JNS=MMECEERM8JOUJN1KF8G9N3<G_I;1\5%LU5UE!_0B:8C
M_IX$=X9JUPO+G5^W-4@)&K7KK9Q4'N<T:PMFJ%GR3E"B1\D'/N=65%(JJL7<
MYPEJF;M9(X5UBQ5@MSJ-^:@,"JG!Y+;'3LO5;-$U>?-4[+*5^:CJ[:2Q[.7-
M6IU[&N6T3/EBI%-6/DS0S]5-R#=<ID5OM_`X"41#P+9PSMEDW[E3'+[H0MF^
MRLZPGG_0\&A_&D-4NDLN<KYWT!47#>)!-@V-7M:K4NW2!$B:*K8J2R1`143\
M#9^#1.^=,89S#5V-LW#1(>DLYN1)"5*%,C(SUWT"R*BF#:IYIGE993-[TFWO
M3*D!&*@XZ0D%1,'Q2$/U\"HJO^TNP!2;1$;9>`^;Y)J!WMBG1K<MW1H34ZA?
MJSKM62"WY9R]7Y%L'R_DI1Q:KFJV6,D,369!,CD@.%A^!9'SE2B4'':8PJ,$
MK(.IR;=`X?S-HN5HDO@:8NN@W2>=R=NT&\SRI`4?S4R]?2;TX`*RY_H'T#<7
M@/!$KQ=8;/*Q)VZP-;4]B(DB)W;>E42\:59#E773;E&/IN<UVU7"7^!U0,I^
MT8K_`&DP,H?XIE,8`3U?\EG';!N]=3M\T&H(1RB"3P]\YPZ8S\43N3BFB'PN
MN/P*BGS5+\/J4#`!_P"D?H80#P?`7_*WP$W2564Z`;&*D05#E0SC7W2XE#Z_
M^MLVS]9PL8?H/T*0IC#_`*!X,"WY0>;9`2-,]I?8&OSJZ2BK2!S;A3L-Z9<"
M%<_$'%GLN*U>@0A55FPI%4DIADB!S%^1P`?EX(W(U#H?N>X9HIL./RG+_(N:
MZ#G^U*Y=H=DJ<]T;T!IN3VEA?,IC-`@\TL%USG)<8H^BP,3:#LT[',V&RR42
MS:/F\2P3>M9(/__4[^/`I.[=@T3(;`7*Z77;1T)TI),&[ZO\W8R$1,Z$1I(D
M6_B;/I4G)R493L+S-VL@<O\`=%QD(>)6,F9!D=X^%)FJ&IT>2-!Z3<,K/W[8
MJ[=*ZUF&D_6N.LRD)L.9*NHS_P!R/0U^0DFD#8>N)UFX^BI_[G81U+*X316;
M5=%VW*^4"P=JU:L6K9DR;(,V3-!%JT:-44V[5JU;IE1;MFS=$I$D$$$B`4A"
M@!2E`````/!G\!X-9[!D-#WC.Y[*M.B5YVBV=6"4GX5"3DHDLLC7[%$V=G'O
MG,4Z9NG,0[DH5$CYF<XMI!F95JY(JW653.&S/`>!#-/XYNC+1KON?'V\NN8-
M=TQ:/D=5A9F@,-EYYV.P0T2T@X>X:+C3ZPTF7CK^UA(UK'JV"IV2L2<DP;((
MRAY$C1D5L$48XK^3BX"XC-/[JY_SN!+]&R4KROQ@[K6D/$``_P!9$M@Z3Z"Z
M;H$)('$"?[0U221*`G`!$?B8H;JPKB;`,!MTUJ4!`V"^[K:F"4;;>A]IMU@U
MW<K!')E_6$2O]V>R;VG4XRGU4)7*XG#5IL<?JWCT@^@`#:>`\!X#P'@/`>`\
M!X/_U>HO\DD9N[K2.;'U)NN[0>6LD-4_?UCF/,,JM6U6;5SP<9_%!5;WLFNT
MZET:R-\5"\?PPN:Y8DUA%_\`M`2LP5;Z@T/$G_4#_&LY_P!1OX3]C_=#C_+_
M`.^_N'_.7^6/VC?^=_[._P"1?_VS_./V/M_RG]\?\C^/P^]_1\/`YG@/`>`\
7!X#P'@/`>`\!X#P'@/`>`\!X#P'@_]D_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>4
<FILENAME>g59003image002.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 g59003image002.jpg
M_]C_X``02D9)1@`!`0$`8`!@``#_VP!#``H'!P@'!@H("`@+"@H+#A@0#@T-
M#AT5%A$8(Q\E)"(?(B$F*S<O)BDT*2$B,$$Q-#D[/CX^)2Y$24,\2#<]/CO_
MVP!#`0H+"PX-#AP0$!P[*"(H.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[
M.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SO_P``1"``F`'@#`2(``A$!`Q$!_\0`
M'P```04!`0$!`0$```````````$"`P0%!@<("0H+_\0`M1```@$#`P($`P4%
M!`0```%]`0(#``01!1(A,4$&$U%A!R)Q%#*!D:$((T*QP152T?`D,V)R@@D*
M%A<8&1HE)B<H*2HT-38W.#DZ0T1%1D=(24I35%565UA96F-D969G:&EJ<W1U
M=G=X>7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&
MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0`'P$``P$!`0$!
M`0$!`0````````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$"
M`Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF
M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$
MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4
MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H`#`,!``(1`Q$`/P#N/B!K6L^&
M?#MQK6G7-L?)9!Y$T!8$$@'D,/7-<E\/OB+XF\9^()--N9+&VC2W:7?%;$DD
M$#'+>]='\8/^2<7_`/OQ?^ABO*_@]J,>E^*KN[E@N9TCL7)2VB,C_>7L*`/1
M?%_B+QKX4OK-TDTV^TVXN$A:46S*\18]&&_'(Z&NI\6^+]+\':9]LU%V9WR(
M8$^_*WH/;U-<YX:O4^(VC:_++&;>*>^58589:,1JA4GWR,GZUY;\7=6FU+Q_
M>0R$^58A8(ESP.`2?Q)-`'LO@[6];\7Z&^LRF#3HIRRVD21^80`<;F)//.>!
MCIUK"TCXKFW\2S^&_%5M%:7,,QA%W"2(F/8D'E0>,')ZUU'P^MS;>`=%B.,_
M9%;CWY_K7AWQ>MQ!\1]0(_Y:I$Y_[X`_I0!Z/\5/&.O^#KBP?2[V,QW@?,<L
M"MMVXQ@_C5_X5^)]9\7:9=W^JW2,8)_)6..)54C:#D]^]>5^,-4GU?P!X1N;
MEBTJ+<0%B?O!&50?R`KO_@)_R*VI?]?W_LBT`:GC#Q]-X(\4V4%Z/M6F7L3.
MX"`20D''RD?>'3@_G6E\/_$MYXPTJ;6;C;!%]H>**V1>%4`8);J3S[#VKSOX
M^_\`(;TC_KV?_P!"%=9\#_\`D06_Z_9/Y+0!J:\/%]OXATRVTO5X197TC)*9
M;56:`*I8D=,Y`/XUS@^)M_JWC*V\*Z!)$5:4Q2ZE<Q[BVT$L508&.#C/6N_U
M5/,U+2TSC=+*,C_KD]?,6L:3JO@_Q$]O-YMM=6TNZ&9<C<`>'4]Z`/I/45\2
M:=:/<Z?/!JKQJ2;6>/RFDQ_==>`?8BHO`FO7?B;PQ'JMY&L4LTTH\M>D8#D!
M?P`KRK1?CIK=F(XM6L8+^,<-(A\N0C^1_(5ZIX&U;1=8T22ZT20^2]Q)))"R
M[6A=SN*D?4T`=)1110!Q'Q@_Y)Q?_P"_%_Z&*\V^!?\`R.]Q_P!>+_\`H2U[
M-XC\,6OBBP>PU"[NUM78,T4+JH..G.TGKS6/H'PPT3PSJ!O]*N]0AG,9C),J
M,"IQQ@K["@";6Y;/P5HGB'5]L<,=TWFQHIQOF*!>GJ6&?S->1?%+PU=6ES9>
M(4C9[34;6$R2`<)*$`(/ID`'\Z];U_X<:9XGF635]3U6Y"?<C,ZJB?10N,^]
M=&VF6<FE+I<\"W%H(A$8Y0&#*!CG\J`.3\$>)M/M_A]I$UU,VV*W5)I%0LL6
M&V#>1TY%>0?$UYM6^)VI06R-/()$AC1!DDA`"/SS7HWC;P-<:)X*U"V\(+.(
M+J59+NR!\S*#KY>>1R!D9/%<%X5U/5IP^D:'X<0:S>@Q7&K2[WE16X9OFX3C
MO0!=^)/AZ3P[X+\*6)PXA27S9$Y7S'PQY_/'TKK?@(1_PC&I#(R+W)'_``!:
M]!N]!T_4M$32-2MDN[41JA5Q_=&`0>H/N*YG3_A7INB7K7.B:QJVF[^'CBG4
MJP]#E3G\:`.*^/T,@U31Y]A\HPR(&[9#`X_6NH^!S*?`;J&!*WLF1GIPM=)=
M^!]%U.SDM]52?4FD&/.NI2TB?[I&`OX`5AZ7\*X=`NI)=#\2:M8)+]^-61@W
MURN/QQ0!O^)WP;55;#[+AQ@\@"%QG\R/S%8/@G5='^(O@V&WU:V@O+JT417,
M4R@L"!@..XR!U'?-='9^&;6UBN3)=75Y=741ADNKF3?(%/9>,*.^`/K6?;_#
MK0-/D@GTE)]+NH$V"XM)2K./]L'*MGW%`'G'Q*^%-CH>DS:[H<CQP0D>?:R-
MN`!.,J3SU(X-7_@%8720:OJ#JRVTICBC)Z,RY)_+(_.O0M4\*)K]JMEK6I7-
MW:!@S0(%B60CIN*C)'MD5L65C:Z;9QV=E;QV]O$NU(XUP%%`$]%%%`!1110`
G4444`%(%4$D``GK@=:**`%HHHH`****`"BBB@`HHHH`****`/__9
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
