<SEC-DOCUMENT>0001391609-12-000074.txt : 20120316
<SEC-HEADER>0001391609-12-000074.hdr.sgml : 20120316
<ACCEPTANCE-DATETIME>20120316163253
ACCESSION NUMBER:		0001391609-12-000074
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20111231
FILED AS OF DATE:		20120316
DATE AS OF CHANGE:		20120316

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			EQUUS TOTAL RETURN, INC.
		CENTRAL INDEX KEY:			0000878932
		IRS NUMBER:				760345915
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0604

	FILING VALUES:
		FORM TYPE:		10-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	814-00098
		FILM NUMBER:		12698067

	BUSINESS ADDRESS:	
		STREET 1:		EIGHT GREENWAY PLAZA
		STREET 2:		SUITE 930
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77046
		BUSINESS PHONE:		7135290900

	MAIL ADDRESS:	
		STREET 1:		EIGHT GREENWAY PLAZA
		STREET 2:		SUITE 930
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77046

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	EQUUS II INC
		DATE OF NAME CHANGE:	19970422
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>f10k_equus.htm
<DESCRIPTION>FORM 10-K EQUUS TOTAL RETURN, INC.
<TEXT>
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<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES </B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B></P>

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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-align: center"><B>FORM 10-K </B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.25pt 0 0"><B>(Mark One) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.45pt; text-indent: -24.5pt"><FONT STYLE="font-family: Wingdings"><B>x
</B></FONT><B>ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-align: center"><B>For the year ended December&nbsp;31,
2011 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-align: center"><B>or </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 2.25pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt"><FONT STYLE="font-family: Wingdings"><B>&uml; </B></FONT></TD><TD><B>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-align: center"><B>For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Commission File Number 814-00098</B></P>

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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-align: center"><B>EQUUS TOTAL RETURN, INC. </B></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Exact name of registrant as specified in
its charter) </B></P>

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<P STYLE="font: 2.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 50%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 50%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Delaware</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">76-0345915</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(State or other jurisdiction of</B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: center"><B>incorporation or organization)</B></P></TD>
    <TD STYLE="font: bold 7.5pt Times New Roman, Times, Serif; text-align: center">(I.R.S. Employer Identification No.)</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center"> 8 Greenway Plaza, Suite 930, Houston, Texas</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">77046</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: bold 7.5pt Times New Roman, Times, Serif; text-align: center">(Address of principal executive offices)</TD>
    <TD STYLE="font: bold 7.5pt Times New Roman, Times, Serif; text-align: center">(Zip Code)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-align: center"><B>(713) 529-0900 </B></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Registrant&rsquo;s telephone number, including
area code: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Securities registered pursuant to Section&nbsp;12(b)
of the Act: </B></P>

<P STYLE="font: 2.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 50%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 50%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Title of each class</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Name of each exchange</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: center"><B>on which registered</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Common Stock</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">New York Stock Exchange</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-align: center"><B>Securities registered pursuant to
Section&nbsp;12(g) of the Act: None </B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-indent: 24.5pt">Indicate by check mark if the registrant
is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;
<FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-indent: 24.5pt">Indicate by check mark if the registrant
is not required to file reports pursuant to Section&nbsp;13 or Section&nbsp;15(d) of the Act.&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;
<FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-indent: 24.5pt">Indicate by check mark whether the
registrant (1)&nbsp;has filed all reports required to be filed by Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)&nbsp;has
been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">x</FONT>&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;
<FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-indent: 24.5pt">Indicate by check mark if disclosure
of delinquent filers pursuant to Item&nbsp;405 of Regulation S-K is not contained herein, and will not be contained, to the best
of registrant&rsquo;s knowledge, in the definitive proxy or information statement incorporated by reference in Part III of this
10-K.&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-indent: 24.5pt">Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions
of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer&rdquo; and &ldquo;smaller reporting company&rdquo; in Rule 12b-2
of the Exchange Act.</P>

<P STYLE="font: 2.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-bottom: 0.75pt; font-size: 10pt">Large accelerated filer&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&uml;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.1in">Accelerated filer&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&uml;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-size: 10pt">Non-accelerated filer&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">x</FONT> (Do not check if a smaller reporting company)</TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">Smaller reporting company&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&uml;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-indent: 24.5pt">Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Act).&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;
<FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-indent: 24.5pt">Approximate aggregate market
value of common stock held by non-affiliates of the registrant: $25,347,950 computed on the basis of $2.40 per share, closing
price of the common stock on the New York Stock Exchange on June&nbsp;30, 2011. For purposes of calculating this amount only,
all directors and executive officers of the registrant have been treated as affiliates. There were 10,561,646 shares of the
registrant&rsquo;s common stock, $.001 par value, outstanding as of March 15, 2012. The net asset value of a share as of
December&nbsp;31, 2011 was $3.61</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-indent: 24.5pt">Indicate by check mark whether the
registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or such shorter period that the registrant
was required to submit and post such files). <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-indent: 24.5pt">Portions of the Proxy Statement (to
be filed) for the 2012 Annual Shareholder&rsquo;s meeting are incorporated by reference in Parts II and III.</P>

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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo; Options: Hidden -->&nbsp;<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><A NAME="TableOfContents" TITLE="Table of Contents"></A><B>TABLE OF CONTENTS </B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR>
    <TD STYLE="width: 8%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 83%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 9%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="padding-left: 0.1in; text-align: center; vertical-align: bottom">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><B>Page</B></P>
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<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_001">PART&nbsp;I</A></TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; vertical-align: bottom; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; vertical-align: bottom; padding-left: 0.1in">&nbsp;</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_002">Item&nbsp;1</A></TD>
    <TD STYLE="vertical-align: bottom">Business</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center"> 3</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_003">Item&nbsp;1A</A></TD>
    <TD STYLE="vertical-align: bottom">Risk Factors</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center"> 11</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_004">Item&nbsp;1B</A></TD>
    <TD STYLE="vertical-align: bottom">Unresolved Staff Comments</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center"> 18</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_005">Item&nbsp;2</A></TD>
    <TD STYLE="vertical-align: bottom">Properties</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center">18</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_006">Item&nbsp;3</A></TD>
    <TD STYLE="vertical-align: bottom">Legal Proceedings</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; padding-left: -11pt; text-align: center"> 19</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_007">Item&nbsp;4</A></TD>
    <TD STYLE="vertical-align: bottom">Mine Safety Disclosures</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center">19</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_008">PART&nbsp;II</A></TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; vertical-align: bottom; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; vertical-align: bottom; padding-left: 0.1in">&nbsp;</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_009">Item&nbsp;5</A></TD>
    <TD STYLE="vertical-align: bottom">Market for Registrant&rsquo;s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity <BR> Securities</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center">19</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_010">Item&nbsp;6</A></TD>
    <TD STYLE="vertical-align: bottom">Selected Financial Data</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center">21</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_011">Item&nbsp;7</A></TD>
    <TD STYLE="vertical-align: bottom">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center">21</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_012">Item&nbsp;7A</A></TD>
    <TD STYLE="vertical-align: bottom">Quantitative and Qualitative Information About Market Risk</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center">36</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_013">Item&nbsp;8</A></TD>
    <TD STYLE="vertical-align: bottom">Financial Statements and Supplementary Data</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center">37</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_023">Item&nbsp;9</A></TD>
    <TD STYLE="vertical-align: bottom">Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center">62</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_024">Item&nbsp;9A</A></TD>
    <TD STYLE="vertical-align: bottom">Controls and Procedures</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center">62</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_025">Item&nbsp;9B</A></TD>
    <TD STYLE="vertical-align: bottom">Other Information</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center">63</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_026">PART&nbsp;III</A></TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; vertical-align: bottom; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; vertical-align: bottom; padding-left: 0.1in">&nbsp;</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_027">Item&nbsp;10</A></TD>
    <TD STYLE="vertical-align: bottom">Directors and Executive Officers and Corporate Governance</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center">63</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_028">Item&nbsp;11</A></TD>
    <TD STYLE="vertical-align: bottom">Executive Compensation</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center">63</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_029">Item&nbsp;12</A></TD>
    <TD STYLE="vertical-align: bottom">Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center">63</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_030">Item&nbsp;13</A></TD>
    <TD STYLE="vertical-align: bottom">Certain Relationships and Related Transactions and Director Independence</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center">63</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_031">Item&nbsp;14</A></TD>
    <TD STYLE="vertical-align: bottom">Principal Accountant Fees and Services</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center">63</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_032">PART&nbsp;IV</A></TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; vertical-align: bottom; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; vertical-align: bottom; padding-left: 0.1in">&nbsp;</TD></TR>
<TR>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><A HREF="#a_033">Item&nbsp;15</A></TD>
    <TD STYLE="vertical-align: bottom">Exhibits and Financial Statement Schedules</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: center">64</TD></TR>
</TABLE>
<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><A NAME="a_001"></A><B>PART I </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><A NAME="a_002"></A><B>Item 1. <I>Business </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Equus Total Return, Inc. (<FONT STYLE="color: black"><I>&ldquo;we,&rdquo;
&ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;Equus&rdquo; the &ldquo;Company&rdquo; and the &ldquo;Fund</I></FONT>&rdquo;), a Delaware
corporation, was formed by Equus Investments II, L.P. (the &ldquo;Partnership&rdquo;) on August&nbsp;16, 1991. On July&nbsp;1,
1992, the Partnership was reorganized and all of the assets and liabilities of the Partnership were transferred to the Fund in
exchange for shares of common stock of the Fund. Our shares trade on the New York Stock Exchange under the symbol EQS. On August
11, 2006, our shareholders approved the change of the Fund&rsquo;s investment strategy to a total return investment objective.
This new strategy seeks to provide the highest total return, consisting of capital appreciation and current income. In connection
with this strategic investment change, the shareholders also approved the change of name from Equus II Incorporated to Equus Total
Return, Inc.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Equus was formed by Equus Investments
II, L.P. (the &ldquo;Partnership&rdquo;) on August&nbsp;16, 1991. On July&nbsp;1, 1992, the Partnership was reorganized and all
of the assets and liabilities of the Partnership were transferred to the Fund in exchange for shares of common stock of the Fund.
Our shares trade on the New York Stock Exchange under the symbol EQS. On August 11, 2006, our shareholders approved the change
of the Fund&rsquo;s investment strategy to a total return investment objective. This new strategy seeks to provide the highest
total return, consisting of capital appreciation and current income. In connection with this strategic investment change, the
shareholders also approved the change of name from Equus II Incorporated to Equus Total Return, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We attempt to maximize the return
to stockholders in the form of current investment income and long-term capital gains by investing in the debt and equity securities
of companies with a total enterprise value of between $15.0 million and $75.0 million, although we may engage in transactions
with smaller or larger investee companies from time to time. We seek to invest primarily in companies pursuing growth either through
acquisition or organically, leveraged buyouts, management buyouts and recapitalizations of existing businesses or special situations.
Our income-producing investments consist principally of debt securities including subordinate debt, debt convertible into common
or preferred stock, or debt combined with warrants and common and preferred stock. Debt and preferred equity financing may also
be used to create long-term capital appreciation through the exercise and sale of warrants received in connection with the financing.&nbsp;&nbsp;&nbsp;We
seek to achieve capital appreciation by making investments in equity and equity-oriented securities issued by privately-owned
companies in transactions negotiated directly with such companies.&nbsp; Given market conditions over the past several years and
the performance of our portfolio, our Management and board of directors believe it prudent to continue to review alternatives
to refine and further clarify the current strategies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Equus is a closed-end management investment
company that has elected to be treated as a business development company (hereafter, &ldquo;BDC&rdquo;) under the Investment Company
Act of 1940 (&ldquo;1940 Act&rdquo;). In order to remain a business development company, we must meet certain specified requirements
under the 1940 Act, including investing at least 70% of our assets in eligible portfolio companies and limiting the amount of leverage
we incur. Equus is also a regulated investment company (&ldquo;RIC&rdquo;) under Subchapter M of the U.S. Internal Revenue Code
of 1986, or the &ldquo;Code.&rdquo; As such, we are not required to pay corporate-level income tax on the Fund&rsquo;s investment
income. We intend to maintain our RIC status, which requires that we qualify annually as a RIC by meeting certain specified requirements.
For a discussion of these requirements necessary to maintain our status as a business development company and as a RIC, please
see &ldquo;Regulation as a Business Development Company&mdash;General&rdquo; and &ldquo;Certain U.S. Federal Income Tax Considerations&mdash;Taxation
as a Regulated Investment Company,&rdquo; respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our principal office is located at Eight
Greenway Plaza, Suite 930, Houston, Texas, 77046, and the telephone number is <FONT STYLE="color: black">1-888-358-7575</FONT>.
Our corporate website is located at <I>www.equuscap.com</I>. We make available free of charge on our website our annual report
on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports as soon as reasonably
practicable after such material is electronically filed or furnished to the Securities and Exchange Commission (&ldquo;SEC&rdquo;).
Our shares are traded on The New York Stock Exchange under the ticker symbol &ldquo;EQS&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><B>Significant Developments </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">Our Board of Directors (sometimes referred
to as the &ldquo;Board&rdquo;) and management of the Fund (&ldquo;Management&rdquo;) continue to believe that current market conditions
and recent portfolio performance dictate the need to pursue a more active role in the management of these investments and to seek
liquidity events at the appropriate time to protect and enhance shareholder value. These activities include continuous monitoring
and intensive reviews of portfolio company performance and expectations, providing follow-on capital when necessary, exploration
of liquidity events for certain portfolio companies to position the Fund to maximize investment returns, and actively pursuing
suitable new investments for the Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In 2011, we formed Equus Energy, LLC
(&ldquo;Equus Energy&rdquo;), as a wholly-owned subsidiary of the Fund, to make investments in companies in the energy sector,
with particular emphasis on income-producing oil &amp; gas properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">On June&nbsp;7, 2011, the Fund
announced that its Board of Directors appointed Alessandro Benedetti as the Fund's Executive Chairman and John Hardy as the
Fund's Chief Executive Officer. Prior to their appointments, Mr. Benedetti was an independent member of the Fund's Board of
Directors and Mr. Hardy was the Fund's Executive Chairman. Mr. Benedetti, is an Italian national with decades of business
experience in a diverse range of industries including telecoms, agro-industrial engineering, mining, real estate, renewable
and nonrenewable energy and investment companies. He is fully conversant with business conditions and operating procedures in
the world's key markets, especially Western and Eastern Europe, Scandinavia, the Commonwealth of Independent States, Africa,
North America and the Middle East. Mr.&nbsp;Hardy has had extensive experience in the insurance, finance and banking sectors,
as well as international mergers and acquisitions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">On April 27, 2011, the Fund
announced that it had entered into two separate transactions involving the purchase of an aggregate of 11,408 4% bonds due
May 2012 (&ldquo; Bonds&rdquo;) issued by Orco Germany S.A. (&ldquo;Orco Germany&rdquo;). Orco Germany is a commercial and
multi-family residential real estate holding company and developer based in Berlin. The consideration
provided to the selling bondholders consisted of an aggregate of 1,700,000 newly issued shares of common stock of the Fund. These shares are unregistered under the Securities
Act of 1933. The Fund received 8,890 of the Bonds on April 27, 2011. On May 9, 2011, one of these agreements was amended and
restated to provide for an additional 45 days to deliver the remaining 2,518 of the Bonds in exchange for providing to the
Fund approximately $1.6 million in cash as security for such delivery. As the remaining Bonds were not delivered by the
specified date, the cash collateral became free and clear property of the Fund on June 23, 2011. On January 27, 2012, holders
of greater than a two-thirds majority of the total Bonds issued by Orco Germany approved a conversion of the Bonds
into &ldquo;bonds convertible into shares&rdquo; (<I>Obligations Convertibles en Actions</I> &ndash; &ldquo;OCA&rdquo;). The
OCA are convertible into ordinary shares (&ldquo;OPG Shares&rdquo;) of Orco Property Group S.A., the parent corporation
of Orco Germany (&ldquo;OPG&rdquo;), and may also entitle the bondholders to receive cash, additional OPG Shares, or
ordinary shares of Orco Germany. OPG is a commercial and multi-family residential real estate holding company and
developer headquartered in Paris that owns a variety of hotels, office buildings, apartment complexes, condominiums, and
vacant land in Luxembourg, Poland, the Czech Republic, Slovakia, Croatia, Hungary, and Russia.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">During 2010 and continuing into 2011, we sold
certain of the Fund&rsquo;s investment holdings for cash in an effort to enhance the Fund&rsquo;s liquidity and position the Fund
for future growth including the monetizations of 1848 Capital Partners LLC, Big Apple Entertainment Partners LLC and London Bridge
Entertainment Partners Ltd.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">During 2009, we executed a management
internalization strategy initiated to enhance liquidity, achieve a lower operational cost structure, provide more assistance to
portfolio companies and continue to provide enhanced communication with shareholders.&nbsp;We believe these actions are necessary
to protect capital and liquidity in order to preserve and enhance shareholder value.<B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><B>Investment Objective </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0pt; text-indent: 24.5pt"><FONT STYLE="color: black">Our investment objective
is to maximize the total return to our stockholders in the form of current investment income and long-term capital gains by investing
in the debt and equity securities of small and middle market capitalization companies that are generally not publicly traded at
the time of our investment.&nbsp;&nbsp;As we grow and develop the Fund, we intend to include investments in progressively larger
enterprises.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><B>Investment Strategy </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0pt; text-indent: 24.5pt">Beginning in 2006, we implemented a revised
investment strategy to attempt to strike a balance between the potential for gain and the risk of loss.&nbsp;&nbsp;With respect
to capital appreciation, Equus is a &ldquo;growth-at-reasonable-price&rdquo; investor that seeks to identify and acquire securities
that meet our criteria for selling at reasonable prices.&nbsp;&nbsp;We give priority to cash producing investments wherein we invest
principally in debt or preferred equity financing with the objective of generating regular interest and dividend income back to
the Fund.&nbsp;&nbsp;Debt and preferred equity financing may also be used to create long-term capital appreciation through the
exercise and sale of warrants received in connection with the financing.&nbsp;Given market conditions over the past
several years and the performance of our portfolio, our Management and board of directors believe it prudent to continue to review
alternatives to refine and further clarify the current strategies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><B>Investment Criteria </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0pt; text-indent: 24.5pt">Consistent with our investment objective and
strategy, Management evaluates prospective investments based upon the criteria set forth below. We may modify some or all of these
criteria from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">&bull;</TD><TD><I>Management Competency and Ownership</I>. We seek to invest in companies with experienced management teams who have demonstrated
a track record of successful performance.&nbsp;&nbsp;Further, we desire to invest in companies with significant management ownership.&nbsp;&nbsp;We
believe that significant management ownership in small</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt">capitalization and middle market companies provides appropriate
incentives and an alignment of interests for management to maximize shareholder value.&nbsp;&nbsp;In addition, we will seek to
design compensation and incentive arrangements that align the interests of the portfolio company&rsquo;s management with those
of the Fund to enhance potential returns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">&bull;</TD><TD><I>Substantial Target Market</I>. We desire to focus on companies whose products or services have favorable growth potential
and strong competitive positions in their respective markets.&nbsp;&nbsp;&nbsp;These positions may be as leadership positions within
a given industry or market niche positions in which the product or service has a demonstrated competitive advantage.&nbsp;&nbsp;The
market in which a potential portfolio company operates should either be sizeable or have significant growth potential.</TD></TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">&bull;</TD><TD><I>History of Profitability and Favorable Growth Potential</I>. We target companies that have demonstrated a history of profitability
or a reasonable expectation of a return to profitability in the near future.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">&bull;</TD><TD><I>Ability to Provide Regular Cash Interest and Distributions</I>. We look for companies with strong cash flow models sufficient
to provide regular and consistent interest and/or preferred dividend payments.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">&bull;</TD><TD><I>Management Assistance and Substantial Equity</I>.&nbsp;&nbsp;&nbsp;Given the requirements of a BDC under the 1940 Act, we
seek to invest in companies that will permit substantial managerial assistance including representation on the board of directors
of the company.&nbsp;&nbsp;With regard to equity investments, we desire to obtain a substantial investment position in portfolio
companies.&nbsp;&nbsp;This position may be as a minority shareholder with certain contractual rights and powers, or as a majority shareholder, and should otherwise allow us to have substantive input on the
direction and strategies of the portfolio company.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="color: black">&bull;</FONT></TD><TD><FONT STYLE="color: black"><I>Plausible Exit and Potential for Appreciation</I>. Prior to investing in a portfolio company,
we will seek to analyze potential exit strategies and pursue those investments with such strategies as may be achievable.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>Investment Operations </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our investment operations consist principally
of the following basic activities:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Investment Selection.</I> We expect
that many of our investment opportunities will come from management, members of our Board, other private equity investors, direct
approaches from prospective portfolio companies and referrals from investment banks, business brokers, commercial, regional and
local banks, attorneys, accountants and other members of the financial community. Subject to the approval of our Board, we may
compensate certain referrals with finder&rsquo;s fees to the extent permissible under applicable law and consistent with industry
practice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Due Diligence.</I> Once a potential
investment is identified, we undertake a due diligence review using information provided by the prospective portfolio companies
and publicly available information. Management may also seek input from consultants, investment bankers and other knowledgeable
sources. The due diligence review will typically include, but is not limited to:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>Review of historical and prospective financial information including audits and budgets;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>On-site visits;</TD></TR></TABLE>

<P STYLE="margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0">
                                                                                                  <TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>Review of business plans and an analysis of the consistency of operations with those plans;</TD></TR>
</TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>Interviews with management, employees, customers and vendors of the potential portfolio company;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>Review of existing loan documents, if any;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>Background checks on members of management; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>Research relating to the company, its management, industry, markets, products and services and competitors.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Structuring Investments.</I> We typically
negotiate investments in private transactions directly with the owner or issuer of the securities acquired. Management structures
the terms of a proposed investment, including the purchase price, the type of security to be purchased and our future involvement
in the portfolio company&rsquo;s business. We seek to structure the terms of the investment to provide for the capital needs of
the portfolio company while maximizing our opportunities for current income and capital appreciation. In addition, we may invest
with other co-investors including private equity firms, business development companies, small business investment companies, venture
capital groups, institutional investors and individual investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Providing Management Assistance and
Monitoring of Investments.</I> Successful private equity investments typically require active monitoring of, and significant participation
in, major business decisions of portfolio companies. In many cases, officers and directors of the Fund serve as members of the
boards of directors of portfolio companies. Such management </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">assistance is required of a business development company under
the 1940 Act. We seek to provide guidance and management assistance with respect to such matters as capital structure, acquisitions,
budgets, profit goals, corporate strategy, portfolio management and potential sale of the company or other exit strategies. In
connection with their service as directors of portfolio companies, officers and directors of the Fund may receive and retain directors&rsquo;
fees or reimbursement for expenses incurred, and may participate in incentive stock option plans for non-employee directors, if
any. When necessary and as requested by any portfolio company, Management, on behalf of the Fund, may also assign staff professionals
with financial or management expertise to assist portfolio company management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Follow-On Investments </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Following our initial investment, a
portfolio company may request that we make follow-on investments by providing additional equity or loans needed to fully implement
our business plans to develop a new line of business or to recover from unexpected business problems or other purposes. In addition,
follow-on investments may be made to exercise warrants or other preferential rights granted to the Fund or otherwise to increase
its position in a portfolio company. We may make follow-on investments in portfolio companies from cash on hand or borrow all or
a portion of the funds required. If we are unable to make follow-on investments due to lack of available capital, the portfolio
company in need of the investment may be negatively impacted and our equity interest in the portfolio company may be diluted if
outside equity capital is required.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><B>Disposition of Investments </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The method
and timing of the disposition of our investments in portfolio companies are critical to our ability to realize capital gains and
minimize capital losses. We may dispose of our portfolio securities through a variety of transactions, including recapitalizations,
refinancings, management buy-outs, repayments from cash flow, acquisitions of portfolio companies by a third party and outright
sales of the Fund&rsquo;s securities in a portfolio company. In addition, we may distribute our portfolio securities in-kind to
our stockholders. In structuring our investments, we endeavor to reach an understanding with the management of the prospective
portfolio company as to the appropriate method and timing of the disposition of the investment. In some cases, we seek registration
rights for our portfolio securities at the time of investment which typically provide that the portfolio company will bear the
cost of registration. To the extent not paid by the portfolio company, the Fund typically bears the costs of disposing of its portfolio
investments. </FONT><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><B>Current Portfolio Companies </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">For a description of our current portfolio
company investments, see &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations&ndash;Portfolio
Investments.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>Valuation </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On at least a quarterly basis, Management
values our portfolio investments. These valuations are subject to the approval and adoption of the Board. Valuations of our portfolio
securities at &ldquo;fair value&rdquo; are performed in accordance with accounting principles generally accepted in the United
States of America (&ldquo;GAAP&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The fair value of investments for which
no market exists (including most of the Fund&rsquo;s investments) is determined through procedures established in good faith by
the Board. As a general principle, the current &ldquo;fair value&rdquo; of an investment is the amount the Fund might reasonably
expect to receive upon its sale in an orderly manner. There are a range of values that are reasonable for such investments at
any particular time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 22.5pt 0 0; text-indent: 24pt">The Fund bases adjustments upon
such factors as the portfolio company&rsquo;s earnings, cash flow and net worth, the market prices for similar securities of comparable
companies, an assessment of the company&rsquo;s current and future financial prospects and various other factors and assumptions.
In the case of unsuccessful operations, the Fund may base a portfolio company&rsquo;s fair value upon the company&rsquo;s estimated
liquidation value. Fair valuations are necessarily subjective, and management&rsquo;s estimate of fair value may differ materially
from amounts actually received upon the disposition of its portfolio securities. Also, any failure by a portfolio company to achieve
its business plan or obtain and maintain its financing arrangements could result in increased volatility and result in a significant
and rapid change in its value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 22.5pt 0 0; text-indent: 24pt">Fund management considers that
the Fund&rsquo;s general intent is to hold its loans to maturity when appraising its privately held debt investments. As such,
Fund management believes that the fair value will not exceed the cost of the investment. However, in addition to the previously
described analysis involving allocation of value to the debt instrument, the Fund performs a yield analysis to determine if a debt
security has been impaired. Certificates of deposit purchased by the Fund generally will be valued at their face value, plus interest
accrued to the date of valuation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 22.5pt 0 0; text-indent: 24pt">The Audit Committee of the Board
of Directors may engage independent, third-party valuation firms to conduct independent appraisals and review management&rsquo;s
preliminary valuations of each privately-held investment in order to</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0pt">make their own independent assessment.
Any third-party valuation data would be considered as one of many factors in a fair value determination. The Audit Committee then
would recommend the fair values for all privately-held securities based on all relevant factors to the Board of Directors for
final approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">To the extent that market quotations
are readily available for our investments and such investments are freely transferable, we value them at the closing market price
on the date of valuation. For securities which are of the same class as a class of public securities but are restricted from free
trading (such as Rule 144 stock), we establish our valuation by discounting the closing market price to reflect the estimated impact
of illiquidity caused by such restriction. <FONT STYLE="color: black">We generally hold investments in debt securities to maturity.
Accordingly, we determine the fair value of debt securities on the basis of the terms of the debt securities and the financial
condition of the issuer. We value certificates of deposit at their face value, plus interest accrued to the date of valuation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our Board reviews the valuation policies
on a quarterly basis to determine their appropriateness and reserves the right to hire and from time to time utilizes independent
valuation firms to review Management&rsquo;s valuation methodology or to conduct an independent valuation.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On a daily basis, we adjust net asset value
for changes in the value of publicly held securities, if any, and for material changes in the value of investments in securities
issued by private companies. We report these amounts to Lipper Analytical Services, Inc. The Fund&rsquo;s weekly and our daily
net asset values appear in various publications, including Barron&rsquo;s and The Wall Street Journal</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><B>Competition </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We compete with a large number of public
and private equity and mezzanine funds and other financing sources, including traditional financial services companies such as
finance companies and commercial banks. Many of our competitors are substantially larger and have considerably greater financial,
technical and marketing resources than we do. Our competitors may have a lower cost of funds and many have access to funding sources
that are not available to us. In addition, certain of our competitors may have higher risk tolerances or different risk assessments,
which could allow them to consider a wider variety of investments and establish more relationships and build their market shares.
In addition, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a business
development company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">There is no assurance that the competitive
pressures we face will not have a material adverse effect on our business, financial condition and results of operations. In addition,
because of this competition, we may not be able to take advantage of attractive investment opportunities and may not be able to
identify and make investments that satisfy our investment objectives or meet our investment goals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>Properties </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our principal executive offices are
located at Eight Greenway Plaza, Suite 930, Houston, Texas 77046. We believe that our office facilities are suitable and adequate
for our operations as currently conducted and contemplated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Business Development Company Requirements </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Qualifying Assets</I>. As a business development
company, we may not acquire any asset other than qualifying assets, as defined by the 1940 Act, unless, at the time the acquisition
is made the value of our qualifying assets represent at least 70% of the value of our total assets. The principal categories of
qualifying assets relevant to the Fund&rsquo;s business are the following:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>securities purchased in transactions not involving any public offering from an issuer that is an eligible portfolio company.
An eligible portfolio company is any issuer that (a)&nbsp;is organized and has its principal place of business in the United States,
(b)&nbsp;is not an investment company other than a small business investment company wholly-owned by the business development company,
and (c)&nbsp;either (i)&nbsp;(A)&nbsp;does not have any class of securities with respect to which a broker or dealer may extend
margin credit, (B)&nbsp;is controlled by the business development company either singly or as part of a group and an affiliated
person of the business development company is a member of the issuer&rsquo;s board of directors, or (C)&nbsp;has total assets of
not more than $4 million and capital and surplus of at least $2 million, or (ii)&nbsp;does not have any class of securities listed
on a national securities exchange, unless the total market capitalization of such issuer does not exceed $250 million. Qualifying
assets may also include follow-on investments in a company that was a particular type of eligible portfolio company at the time
of the business development company&rsquo;s initial investment, but subsequently did not meet the definition;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>securities received in exchange for or distributed with respect to securities described above, or pursuant to the exercise
of options, warrants or rights relating to such securities; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>cash, cash items, government securities, or high quality debt securities maturing in one year or less from the time of investment.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We may not change the nature of our business
so as to cease to be, or withdraw our election as, a business development company unless authorized by vote of the holders of the
majority of our outstanding voting securities, as defined in the 1940 Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">To include certain securities above as qualifying assets for the purpose of the 70% test, a business development
company must make available to the issuer of those securities significant managerial assistance, such as providing significant
guidance and counsel concerning the management, operations, or business objectives and policies of a portfolio company. We offer
to provide significant managerial assistance to each of our portfolio companies.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Temporary Investments.</I> Pending
investment in portfolio companies, we invest our available funds in interest-bearing bank accounts, money market mutual funds,
U.S. Treasury securities and/or certificates of deposit with maturities of less than one year (collectively, &ldquo;Temporary
Investments&rdquo;). Temporary Investments may also include commercial paper (rated or unrated) and other short-term securities.
Temporary Investments constituting cash, cash items, securities issued or guaranteed by the U.S. Treasury or U.S. Government agencies
and high quality debt securities (commercial paper rated in the two highest rating categories by Moody&rsquo;s Investor Services,
Inc. or Standard&nbsp;&amp; Poor&rsquo;s Corporation, or if not rated, issued by a company having an outstanding debt issue so
rated, with maturities of less than one year at the time of investment) will qualify for determining whether we have 70% of our
total assets invested in qualifying assets or in qualified Temporary Cash Investments for purposes of the business development
company provisions of the 1940 Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Leverage. </I>We are permitted by the 1940
Act, under specified conditions, to issue multiple classes of senior debt and a single class of preferred stock senior to the common
stock if our asset coverage, as defined in the 1940 Act, is at least 200% after the issuance of the debt or the senior stockholders&rsquo;
interests. In addition, provisions must be made to prohibit any distribution to common stockholders or the repurchase of any shares
unless the asset coverage ratio is at least 200% at the time of the distribution or repurchase.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Fund Share Sales Below Net Asset
Value</I>. We generally may sell our common stock at a price that is below the prevailing net asset value per share only upon
the approval of the policy by stockholders holding a majority of our issued shares, including a majority of shares held by nonaffiliated
stockholders. We may, in accordance with certain conditions established by the SEC, sell shares below net asset value in connection
with the distribution of rights to all of our stockholders. We may also issue shares at less than net asset value in payment of
dividends to existing stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>No Redemption Rights.</I> Since we
are a closed-end business development company, our stockholders have no right to present their shares to the Fund for redemption.
Recognizing the possibility that our shares might trade at a discount, our board of directors has determined that it would be in
the best interest of our stockholders for the Fund to be authorized to attempt to reduce or eliminate a market value discount from
net asset value. Accordingly, from time to time we may, but are not required to, repurchase our shares (including by means of tender
offers) to attempt to reduce or eliminate any discount or to increase the net asset value of our shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Affiliated Transactions</I>. Many
of the transactions involving the Fund and its affiliates (as well as affiliates of such affiliates) require the prior approval
of a majority of the independent directors and a majority of the independent directors having no financial interest in the transactions.
However, certain transactions involving closely affiliated persons of the Fund require the prior approval of the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>Regulated Investment Company Tax Status </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We operate to qualify as a regulated
investment company under Subchapter M of the Code. If we qualify as a regulated investment company and annually distribute to our
stockholders in a timely manner at least 90% of our investment company taxable income, we will not be subject to federal income
tax on the portion of our taxable income and capital gains we distribute to our stockholders. Taxable income generally differs
from net income as defined by accounting principles generally accepted in the United States of America due to temporary and permanent
timing differences in the recognition of income and expenses, returns of capital and net unrealized appreciation or depreciation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Generally, in order to maintain our
status as a regulated investment company, we must (i)&nbsp;continue to qualify as a business development company; (ii)&nbsp;distribute
to our stockholders in a timely manner at least 90% of our investment company taxable income, as defined by the Code; (iii)&nbsp;derive
in each taxable year at least 90% of our gross investment company income from dividends, interest, payments with respect to securities
loans, gains from the sale of stock or other securities or other income derived with respect to our business of investing in such
stock or securities as defined by the Code; and (iv)&nbsp;meet</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0pt">investment diversification requirements.
The diversification requirements generally require us at the end of each quarter of the taxable year to have (a)&nbsp;at least
50% of the value of our assets consist of cash, cash items, government securities, securities of other regulated investment companies
and other securities if such other securities of any one issuer do not represent more than 5% of our assets and 10% of the outstanding
voting securities of the issuer and (b)&nbsp;no more than 25% of the value of our assets invested in the securities of one issuer
(other than U.S. government securities and securities of other regulated investment companies), or of two or more issuers that
are controlled by us and are engaged in the same or similar or related trades or businesses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In addition, with respect to each calendar
year, if we distribute or have treated as having distributed (including amounts retained but designated as deemed distributed)
in a timely manner 98% of our net capital gain income for each one-year period ending on October&nbsp;31, and distribute 98% of
our investment company net ordinary income for such calendar year (as well as any ordinary income not distributed in prior years),
we will not be subject to the 4% nondeductible Federal excise tax imposed with respect to certain undistributed income of regulated
investment companies. The 2010 RIC Modernization Act increases the percentage of pre-October 31 capital gains included in the
required distribution amount to 98.2% and provides for the inclusion of amounts for which estimated tax was paid during the calendar
year in the distributed amount.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">If we fail to satisfy the 90% distribution
requirement or otherwise fail to qualify as a regulated investment company in any taxable year, we will be subject to tax in such
year on all of our taxable income, regardless of whether we make any distribution to our stockholders. In addition, in that case,
all of our distributions to our stockholders will be characterized as ordinary income (to the extent of our current and accumulated
earnings and profits). We have distributed and currently intend to distribute sufficient dividends to eliminate our investment
company taxable income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><B>Fees Paid to the Former Adviser and Former Administrator
of the Fund </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On June 12, 2009 our board of directors
elected to &ldquo;internalize&rdquo; management of the Fund.&nbsp;&nbsp;As such, we did not renew the Advisory Agreement with Moore
Clayton Capital Advisors, Inc. (&ldquo;MCCA&rdquo;) or the Administration Agreement with Equus Capital Administration Company,
Inc. (&ldquo;ECAC&rdquo;), both of which expired on June 30, 2009. MCCA and ECAC were compensated under their contractual agreements
through June 30, 2009 as described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>The Advisory Fee</I>.
MCCA managed our investments pursuant to an Advisory Agreement which included, among other services from MCCA:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Determining the composition of our portfolio, the nature and timing of the changes therein, and the manner of implementing
such changes;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Identifying, evaluating, and negotiating the structure of our investments;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Monitoring the performance of, and managing our investments;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Determining the securities and other assets that we will purchase, retain, or sell and the terms on which any such securities
are purchased and sold;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Arranging for the disposition of our investments; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Other specified services.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">MCCA received a base advisory fee at an annual
rate of 2% of our net assets, paid quarterly in arrears, as well as incentive fees in the following amounts: (i)&nbsp;20% of the
excess, if any, of our net investment income for a quarter that exceeded a quarterly hurdle rate equal to 2% (8% annualized) of
our net assets, and (ii)&nbsp;20% of our net realized capital gains less unrealized capital depreciation, paid on an annual basis.
The Fund was responsible for the costs and expenses of our business, operations and investments. These costs and expenses, included
among other items:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Administration fees and expenses payable under the Administration Agreement;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Costs of proxy solicitation and meetings of stockholders and the Board;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Charges and expenses of our custodian, administrator, and transfer and dividend disbursing agent;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Compensation and expenses of our independent directors;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Legal and auditing fees and expenses; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Subject to Board approval, certain other reasonable costs and expenses directly allocable and identifiable to the Fund or its
business or investments.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><FONT STYLE="color: black"><I>The Former
Administrator</I>. ECAC managed our administrative and business operations pursuant to an Administration Agreement. ECAC provided
us, at its expense, with office space, facilities, equipment and personnel necessary for the conduct of our business. We reimbursed
ECAC for the costs and expenses incurred by it in performing its obligations and providing personnel and facilities under the Administrative
Agreement, provided that such reimbursements did not exceed $0.5 million per year. The Administration Agreement could be terminated
by either party without penalty upon 60 days&rsquo; written notice to the other party.&nbsp;&nbsp;As stated above, the independent
directors elected not to renew the agreement as of June 30, 2009.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Kenneth I. Denos, our Fund Secretary
and Chief Compliance officer, was affiliated with MCCA and ECAC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Custodian </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We act as the custodian of our securities
to the extent permitted under the 1940 Act and are subject to the restrictions imposed on self-custodians by the 1940 Act and the
rules and regulations thereunder. We have also entered into an agreement with Amegy Bank with respect to the safekeeping of our
securities. The principal business office of Amegy Bank is 4400 Post Oak Parkway, Houston, Texas 77019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Transfer and Disbursing Agent </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We employ American Stock Transfer&nbsp;&amp;
Trust Company as our transfer agent to record transfers of the shares, maintain proxy records and to process distributions. The
principal business office of the Fund&rsquo;s transfer agent is 6201 15th Avenue, 2nd Floor, Brooklyn, NY 11219.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Certifications </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In July 2011, we submitted to the New
York Stock Exchange pursuant to Section&nbsp;303A.12(a) of its Listed Company Manual, an unqualified certification of our Chief
Executive Officer. In addition, certifications by our Chief Executive Officer and Chief Financial Officer have been filed as exhibits
to this annual report on Form 10-K as required by the Securities Exchange Act of 1934, as amended, and the Sarbanes-Oxley Act of
2002.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><B>Forward-Looking Statements </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>All statements contained herein
that are not historical facts including, but not limited to, statements regarding anticipated activity are &ldquo;forward-looking
statements&rdquo; within the meaning of the federal securities laws, involve a number of risks and uncertainties, and are based
on the beliefs and assumptions of management, based on information currently available to management. Actual results may differ
materially. In some cases, readers can identify forward-looking statements by words such as &ldquo;may,&rdquo; &ldquo;will,&rdquo;
&ldquo;should,&rdquo; &ldquo;expect,&rdquo; &ldquo;objective,&rdquo; &ldquo;plan,&rdquo; &ldquo;intend,&rdquo; &ldquo;anticipate,&rdquo;
&ldquo;believe,&rdquo; &ldquo;management believes,&rdquo; &ldquo;estimate,&rdquo; &ldquo;predict,&rdquo; &ldquo;project,&rdquo;
&ldquo;potential,&rdquo; &ldquo;forecast,&rdquo; &ldquo;continue,&rdquo; &ldquo;strategy,&rdquo; or &ldquo;position&rdquo; or the
negative of such terms or other variations of them or by comparable terminology. In particular, statements, express or implied,
concerning future actions, conditions, or events, future operating results, or the ability to generate sales, income, or cash flow
are forward-looking statements. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Among the factors that could cause
actual results to differ materially are the following: (i)&nbsp;changes in the economic conditions in which the Fund operates
negatively impacting its financial resources; (ii)&nbsp;certain of the Fund&rsquo;s competitors have substantially greater financial
resources than the Fund reducing the number of suitable investment opportunities offered or reducing the yield necessary to consummate
the investment; (iii)&nbsp;there is uncertainty regarding the value of the Fund&rsquo;s privately held securities that require
a good faith estimate of fair value for which a change in estimate could affect the Fund&rsquo;s net asset value; (iv)&nbsp;the
Fund&rsquo;s investments in securities of privately held companies may be illiquid which could affect its ability to realize a
gain; (v)&nbsp;the Fund&rsquo;s portfolio companies could default on their loans or provide no returns on its investments which
could affect the Fund&rsquo;s operating results; (vi)&nbsp;the Fund is dependent on external financing to grow its business; (vii)&nbsp;the
Fund&rsquo;s ability to retain key management personnel; (viii)&nbsp;an economic downturn or recession could impair the Fund&rsquo;s
portfolio companies and therefore harm its operating results; (iv)&nbsp;the Fund&rsquo;s borrowing arrangements impose certain
restrictions; (x)&nbsp;changes in interest rates may affect the Fund&rsquo;s cost of capital and net operating income; (xi)&nbsp;the
Fund cannot incur additional indebtedness unless it maintains an asset coverage of at least 200%, which may affect returns to
its stockholders; (xii)&nbsp;the Fund may fail to continue to qualify for its pass-through treatment as a regulated investment
company which could have an affect on stockholder return; (xiii)&nbsp;the Fund&rsquo;s common stock price may be volatile; and
(xiv)&nbsp;general business and economic conditions and other risk factors described in its reports filed from time to time with
the Securities</I> <I>and</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Exchange Commission. The Fund cautions readers not to place undue
reliance on any such forward-looking statements, which statements are made pursuant to the Private Securities Litigation Reform
Act of 1995 and, as such, speak only as of the date made. </I></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0pt"><A NAME="a_003"></A><B>Item&nbsp;1A. <I>Risk Factors </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">An investment in our securities
involves certain risks relating to our structure and investment objectives.&nbsp;&nbsp;The risks and uncertainties described
below are not the only ones facing Equus.&nbsp;&nbsp;You should carefully consider these risks, together with all of the
other information included in the annual report on Form 10-K, including our financial statements and the related notes
thereto.&nbsp;&nbsp;Additional risks and uncertainties not presently known to us, or not presently deemed material by us, may
also impair our operations and performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">If any of the following risks actually occur, our business, financial condition
or results of operations could be materially adversely affected.&nbsp;&nbsp;If that happens, the trading price of our common
stock could decline and you may lose all or part of your investment.<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Risks Related to the Our Investments</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Investments in small capitalization companies
present certain risks that may not exist to the same degree as investments in larger, more established companies and will cause
such investments to be volatile and speculative.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We have invested and may continue to invest,
in private, small and/or new companies that may be in their early stages of development.&nbsp;&nbsp;Investments in these types
of companies involve a number of significant risks, including the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>They typically have shorter operating histories, narrower product lines and smaller market shares than public companies, which
tend to render them more vulnerable to competitors&#8217; actions and market conditions as well as general economic downturns;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>They may have no earnings or experienced losses or may have limited financial resources and may be unable to meet their obligations
under their securities, which may be accompanied by a deterioration in the value of their equity securities or any collateral or
guarantees provided with respect to their debt;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>They are more likely to depend on the management talents and efforts of a small group of persons and, as a result, the death,
disability, resignation or termination of one or more of those persons could have a material adverse effect on their business and
prospects and, in turn, on our investment;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>They may have difficulty accessing the capital markets to meet future capital needs;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>They generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly
changing businesses with products subject to a substantial risk of obsolescence and may require substantial additional capital
to support their operations, finance expansion or maintain their competitive position; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Generally little public information exists regarding these companies, and investors in these companies generally must rely
on the ability of the equity sponsor to obtain adequate information for the purposes of evaluating potential returns and making
a fully informed investment decision.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>There is uncertainty regarding the value
of our privately held securities.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><FONT STYLE="color: black">Our net asset
value is based on the value we assign to our portfolio investments.&nbsp;&nbsp;We determine the value of our investments in securities
for which market quotations are not available as of the end of each calendar quarter, unless there is a significant event requiring
a change in valuation in the interim.&nbsp;&nbsp;Because of the inherent uncertainty of the valuation of portfolio securities
that do not have readily ascertainable market values, our fair value determination may differ materially from the value that would
have been used had a ready market existed for the securities.&nbsp;&nbsp;We determine the fair value of investments for which
no market quotations are available based upon a methodology that we believe reaches a reasonable estimation of fair value.&nbsp;&nbsp;However,
we do not necessarily apply multiple valuation metrics in reaching this determination and, in some cases, we do not obtain any
third party valuations before reaching this determination.&nbsp;&nbsp;Our determinations of the fair value of our investments
have a material impact on our net earnings through the recording of unrealized appreciation or depreciation of</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; font-variant: normal; font-variant: normal; text-indent: 0pt">investments <FONT STYLE="font: 10pt Times New Roman, Times, Serif">as well as our assessment of interest income
recognition.&nbsp;&nbsp;Our net asset value could be affected materially if our determinations of the fair value of our investments
differ significantly from values based on a ready market for these securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>We depend upon Management for our future
investment success.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We depend upon the diligence and skill
of Management to select, structure, close and monitor our investments.&nbsp;&nbsp;Management is responsible for indentifying,
structuring, evaluating, monitoring, and disposing of our investments, and the services they collectively provide significantly
impact our results of operations.&nbsp;&nbsp;Our future success will depend to a significant extent on the continued service and
coordination of Management.&nbsp;&nbsp;Our success will depend on our ability to retain our existing Management and to recruit
additional other highly qualified individuals.&nbsp;&nbsp;If we are unable to integrate new investment and management personnel,
we may be unable to achieve our desired investment results.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Management may not be able
to implement our investment objective successfully.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our current portfolio represents a shift from
a regional focus and a record of investing in basic manufacturing and service companies to an investment strategy focused in sectors that
are driven by significant social and demographic trends, such as an aging population, increased leisure time, the globalization
of business and widespread concern about the environment and increasingly scarce energy resources.&nbsp;&nbsp;Given recent economic
events and changes in our board of directors and Management, we have revised our strategy to be more opportunistic, emphasizing
investments which generate regular cash income and distributions, with less regard for a particular industry sector.&nbsp;&nbsp;In
order to implement our investment strategy, Management must analyze, conduct due diligence, invest in, monitor and sell companies
in industries in which many of them have not previously been involved.&nbsp;&nbsp;Also, we expect that our investment strategy
will continue to require Management to investigate and monitor investments that are much more broadly dispersed geographically.&nbsp;&nbsp;In
addition, Management is required to provide valuations for investments in a broader range of securities, including debt securities,
which may require expertise beyond that previously required.&nbsp;&nbsp;We cannot assure investors that the overall risk of their
investment in the Fund will be reduced as a result of our investment strategy.&nbsp;&nbsp;In addition, following this rights offering,
we may make additional investments in our existing portfolio companies and, therefore, the level of risk with respect to certain
investments may be higher than it was prior to this rights offering.&nbsp;&nbsp;If Management cannot achieve our investment objective
successfully, the value of your investment in our common stock could decline substantially.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>We may not realize gains from our equity
investments.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We frequently invest in the equity securities
of our portfolio companies.&nbsp;&nbsp;Also, when we make a loan, we generally receive warrants to acquire stock issued by the
borrower.&nbsp;&nbsp;Ultimately, our goal is to sell these equity interests and realize gains.&nbsp;&nbsp;These equity interests
may not appreciate and, in fact, may depreciate in value.&nbsp;&nbsp;Several of our portfolio companies have experienced net losses
in recent years or have negative net worth as of their most recent available balance sheet date.&nbsp; At December 31, 2011, several
of our portfolio investments had estimated fair values, based upon our valuation methodologies, significantly below the initial
cost of such investments.&nbsp;&nbsp;At December 31, 2011, the cost basis of our portfolio investments was $36.6&nbsp;million and
our estimated fair value was $19.2&nbsp;million.&nbsp;&nbsp;Also, the market value of our equity investments may fall below our
estimate of the fair value of such investments before we sell them.&nbsp;&nbsp;Given these factors, there is a risk that we will
not realize gains upon the sale of those or other equity interests that we hold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>We may not be able to make additional
investments in our portfolio companies from time to time, which may dilute our interests in such companies.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">After our initial investment in a portfolio
company, we may be called upon from time to time to provide additional funds to such company, or may have the opportunity to increase
our investment in that company through the exercise of a warrant to purchase common stock or through follow-on investments in the
debt or equity of that company.&nbsp;&nbsp;We cannot assure you that we will make, or have sufficient funds to make, any such follow-on
investments.&nbsp;&nbsp;Any decision by us not to make a follow-on investment or any inability on our part to make such an investment
may have a negative impact on a portfolio company in need of investment and may result in a missed opportunity for us to increase
our participation in a successful operation.&nbsp;&nbsp;A decision not to make a follow-on investment may also dilute our equity
interest in, or reduce the expected yield on, our investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>We have invested in a limited number
of portfolio companies.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Fund is classified as a &ldquo;non-diversified&rdquo;
investment company under the 1940 Act, which means we are not limited in the proportion of our assets that may be invested in
the securities of a single issuer.&nbsp;&nbsp;As a matter of policy, we generally have not initially invested more than 15% of
the value of our net assets in a single portfolio company.&nbsp;&nbsp;In view of the net asset value of the Fund as at December
31, 2011, however, we would expect that any new investments may exceed this percentage for the</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; font-variant: normal; font-variant: normal; text-indent: 0pt">intermediate future.&nbsp;&nbsp;Moreover, follow-on investments, disproportionate increases or decreases in
the fair value of certain portfolio companies or sales of investments may result in more than 15% of our net assets being invested
in a single portfolio company at a particular time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">A consequence of a limited number of
investments is that changes in business or industry trends or in the financial condition, results of operations or the market&rsquo;s
assessment of any single portfolio company will affect our net asset value and the market price of our common stock to a greater
extent than would be the case if we were a &ldquo;diversified&rdquo; company holding a greater number of investments.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The lack
of liquidity of our privately held securities may adversely affect our business</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our portfolio investments consist principally
of securities that are subject to restrictions on sale because they are not listed or publicly traded securities.&nbsp;&nbsp;If
any of these securities were to become publicly traded, our ability to sell them may still be restricted because we acquired them
from the issuer in &ldquo;private placement&rdquo; transactions or because we may be deemed to be an affiliate of the issuer.&nbsp;&nbsp;We
will not be able to sell these securities publicly without the expense and time required to register the securities under the
Securities Act and applicable state securities laws, unless an exemption from such registration requirements is available.&nbsp;&nbsp;In
addition, contractual or practical limitations may restrict our ability to liquidate our securities in portfolio companies because
those securities are privately held and we may own a relatively large percentage of the issuer&rsquo;s outstanding securities.&nbsp;&nbsp;Sales
also may be limited by market conditions, which may be unfavorable for sales of securities of particular issuers or generally.&nbsp;&nbsp;The
illiquidity of our investments may preclude or delay any disposition of such securities, which may make it difficult for us to
obtain cash equal to the value at which we record our investments if the need arises.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>We have limited public information regarding
the companies in which we invest.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our portfolio consists entirely of securities
issued by privately held companies.&nbsp;&nbsp;There is generally little or no publicly available information about such companies,
and we must rely on the diligence of Management to obtain the information necessary for our decision to invest in them and in order
to monitor them effectively.&nbsp;&nbsp;We cannot assure you that such diligence efforts will uncover all material information
about such privately held businesses necessary to make fully informed investment decisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Our portfolio companies may be highly
leveraged.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Investments in leveraged buyouts and in highly
leveraged companies involve a high degree of business and financial risk and can result in substantial losses.&nbsp;&nbsp;A leveraged
company&rsquo;s income and net assets will tend to increase or decrease at a greater rate than if borrowed money were not used.&nbsp;&nbsp;The
use of leverage by portfolio companies also magnifies the increase or decrease in the value of our investment as compared to the
overall change in the enterprise value of a portfolio company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Many of our portfolio companies have incurred
substantial debt in relation to their equity capital.&nbsp;&nbsp;Such indebtedness generally has a term that will require that
the balance of the loan be refinanced when it matures.&nbsp;&nbsp;If a portfolio company cannot generate adequate cash flow to
meet the principal and interest payments on its debt or is not successful in refinancing the debt upon its maturity, our investment
could be reduced or eliminated through foreclosure on the portfolio company&rsquo;s assets or by the portfolio company&rsquo;s
reorganization or bankruptcy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">A substantial portion of the debt incurred
by portfolio companies may bear interest at rates that fluctuate in accordance with a stated interest rate index or the prime lending
rate.&nbsp;&nbsp;The cash flow of a portfolio company may not be sufficient to meet increases in interest payments on its debt.&nbsp;&nbsp;Accordingly,
the profitability of our portfolio companies, as well as the value of our investments in such companies, will depend significantly
upon prevailing interest rates.&nbsp;&nbsp;In recent months the level of interest rates have increased, which will have an adverse
effect on the ability of our portfolio companies to service their floating rate debt and on their profits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Leverage may impair the ability of our
portfolio companies to finance their future operations and capital needs.&nbsp;&nbsp;As a result, the ability of our portfolio
companies to respond to changing business and economic conditions and to business opportunities may be limited. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>The use of leverage may adversely affect
our performance.</I></B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Although we have no intention of doing
so at any time in the next 12 months, we may utilize leverage for the Fund by borrowing or issuing preferred stock or short-term
debt securities.&nbsp;&nbsp;Borrowings and other capital generated from leverage will result in lenders and other creditors with
fixed dollar claims on our assets that are superior to the claims of our common</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0">shareholders.&nbsp;&nbsp;If the value of
our assets increases, then leveraging would cause the net asset value attributable to our common stock to increase more sharply
than it would have had we not leveraged.&nbsp;&nbsp;Conversely, if the value of our assets decreases, leveraging would cause net
asset value to decline more sharply than it otherwise would have had we not leveraged. Similarly, any increase in our income in
excess of interest payable on the borrowed funds would cause our net income to increase more than it would without the leverage,
while any decrease in our income would cause net income to decline more sharply than it would have had we not borrowed.&nbsp;&nbsp;Leverage
is generally considered a speculative investment technique.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Our business depends on external financing<FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: black">.</FONT></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our business requires a substantial
amount of cash to operate.&nbsp;&nbsp;We may borrow funds to pay contingencies or expenses or to make investments, to maintain
our pass-through tax status as a RIC under Subchapter M of the Code.&nbsp;&nbsp;We are permitted under the 1940 Act to borrow
if, immediately after the borrowing, we have an asset coverage ratio of at least 200%.&nbsp;&nbsp;That is, we may borrow an amount
equal to as much as 50% of the fair value of our total assets (including investments made with borrowed funds).&nbsp;&nbsp;The
amount and nature of any such borrowings depend upon a number of factors over which we have no control, including general economic
conditions, conditions in the financial markets and the impact of the financing on the tax treatment of our stockholders.&nbsp;&nbsp;The
use of leverage, even on a short-term basis, could have the effect of magnifying increases or decreases in our net asset value.&nbsp;&nbsp;While
the &ldquo;spread&rdquo; between the current yield on our investments and the cost of any loan would augment the return to our
stockholders, if the spread narrows (because of an increase in the cost of debt or insufficient income on our investments), distributions
to our stockholders could be adversely affected.&nbsp;&nbsp;This may render us unable to meet our obligations to our lenders,
which might then require us to liquidate some or all of our investments.&nbsp;&nbsp;There can be no assurance that we would realize
full value for our investments or recoup all of our capital if we needed to liquidate our portfolio investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Many financial institutions are unwilling
to lend against a portfolio of illiquid, private securities.&nbsp;&nbsp;The make-up of our portfolio has made it more difficult
for us to borrow at the level and on the terms that we desire.&nbsp;&nbsp;Our borrowings have historically consisted of a revolving
line of credit, the proceeds of which we may use to provide liquidity for expenses and contingencies and to make new or follow-on
investments, and a line of credit, promissory note or margin account used quarterly to enable us to achieve adequate diversification
to maintain our pass-through tax status as a RIC.&nbsp;&nbsp;Although we believe the Fund&rsquo;s liquidity is sufficient for
our operating expenses for the next twelve months, we could be wrong.&nbsp;&nbsp;If we are wrong, we would have to obtain capital
from other sources to pay Fund expenses, which could involve selling one or more of our portfolio holdings at an inopportune time
and at a price that may be less than would be received if such holding were sold in a more competitive and orderly manner. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The costs of borrowing money may exceed the
income from the portfolio securities we purchase with the borrowed money.&nbsp;&nbsp;We will suffer a decline in net asset value
if the investment performance of the additional securities purchased with borrowed money fails to cover their cost to the Fund
(including any interest paid on the money borrowed).&nbsp;&nbsp;A decline in net asset value could affect our ability to make
distributions on our common stock.&nbsp;&nbsp;Our failure to distribute a sufficient portion of our net investment income and
net realized capital gains could result in a loss of pass-through tax status or subject us to a 4% excise tax.&nbsp;&nbsp;If the
asset coverage for debt securities issued by the Fund declines to less than 200% (as a result of market fluctuations or otherwise),
we may be required to sell a portion of our investments when it is disadvantageous to do so.&nbsp;&nbsp;See &ldquo;Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations.&rdquo; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Our net assets have declined substantially
since 2007 and we have had net investment losses in four out of the past five years.</I> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our net assets have declined from
$103.2 million at the end of 2007 to $38.1 million as of December 31, 2011.&nbsp;&nbsp;Moreover, we have had net investment
losses in four out of the past five years, with a net investment loss of $3.5 million for the year ended December 31,
2011.&nbsp;&nbsp;We cannot assure you that we will be able to increase our net assets or generate net investment
income.&nbsp;&nbsp;If we fail to increase the Fund&rsquo;s net assets or generate net investment income, such failure will
likely have a material adverse effect upon the Fund, its results of operation, and its financial condition.&nbsp;&nbsp;You
could lose all or a substantial amount of your investment in the Fund as a result. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>We may not be able to recommence our
managed distribution policy and you might not receive dividends on your shares.</I> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On March 24, 2009, we announced a suspension
of our managed distribution policy and payment of quarterly dividends for an indefinite period, following the distribution of
the first quarter 2009 dividend paid on March 30, 2009.&nbsp;&nbsp;As originally implemented, the policy provided for quarterly
dividends at an annualized rate equal to 10% of the Fund&rsquo;s market value per share as at the end of the preceding calendar
year.&nbsp;&nbsp;In the first six months of 2010, we underwent certain changes in our board</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">of directors and Management.&nbsp;&nbsp;These changes and the rights
offering have been pursued, in part, with the objective of increasing the number of attractive investment opportunities to us and
revising our investment strategy to include more recurrent cash income producing investments, all of which could ultimately result
in the resumption of our managed distribution policy at some time in the future.&nbsp;&nbsp;The implementation of these revisions
to our investment strategy and the recurrent generation of cash income from our investments, however, cannot be guaranteed.&nbsp;&nbsp;If
we were unable to <FONT STYLE="color: black">resume our managed distribution policy and were further unable to profitably sell
or otherwise dispose of our portfolio company investments, you might not receive dividends on your shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt"><B><I>We operate in a highly competitive market for investment
opportunities.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="margin: 0">We compete with a large number of private equity funds and mezzanine funds, investment banks and other equity
and non-equity based investment funds, investment entities, foreign investors and individuals and other sources of financing,</P>



<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We operate in a highly competitive market for investment opportunities</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We compete with a large number of private equity
funds and mezzanine funds, investment banks and other equity and non-equity based investment funds, investment entities, foreign
investors and individuals and other sources of financing, including traditional financial services companies such as commercial
banks.&nbsp;&nbsp;In recent years, the number of investment vehicles seeking small capitalization investments has increased dramatically.&nbsp;&nbsp;Many
of our competitors are substantially larger and have considerably greater financial resources than we do, and some may be subject
to different and frequently less stringent regulation.&nbsp;&nbsp;As our portfolio size increases, we expect that some of our investments
will be larger.&nbsp;&nbsp;We believe that we will face increased competition to participate in these larger transactions. These
competitors may have a lower cost of funds and many have access to funding sources that are not available to us. In addition, some
of our competitors may have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety
of investments and establish more relationships and build their market shares. As a result of this competition, we may not be able
to take advantage of attractive investment opportunities from time to time. We cannot assure you that the competitive pressures
we face will not have a material adverse effect on our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Failure to deploy new capital may reduce
our return on equity.</I> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">If all of the rights are exercised after the
completion of this rights offering, we will increase the amount of our available cash on hand for investments.&nbsp;&nbsp;If we
then fail to invest our new capital in a timely and effective manner, our return on equity will be negatively impacted, which
could reduce the price of the shares of our common stock that you own.&nbsp;&nbsp;We believe we can identify and invest the net
proceeds of this rights offering in approximately six months; however, our ability to do so will depend, in part, on conditions
outside of our control.&nbsp;&nbsp;If we cannot find investment opportunities consistent with our investment objective and market
conditions, we will invest the proceeds of this rights offering in temporary investments such as cash equivalents, U.S. Government
securities or high-quality debt securities maturing in one year or less from the time of investment.&nbsp;&nbsp;This would result
in income to the Fund that is lower than we currently expect, which would depress our overall returns and dividends paid to stockholders.&nbsp;&nbsp;See
&ldquo;Regulation as a Business Development Company &ndash; Temporary Investments.&rdquo; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Our investments in foreign securities
may involve significant risks in addition to the risks inherent in U.S. investments.</I></B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our investment strategy contemplates that
a portion of our investments may be made in securities of foreign companies, such as Orco Germany.&nbsp;&nbsp;Investing in foreign
companies may expose us to additional risks not typically associated with investing in U.S. companies. These risks may include
fluctuations in foreign currency values, changes in exchange control regulations, political and social instability, expropriation,
imposition of foreign taxes, less liquid markets and less available information than is generally the case in the United States,
higher transaction costs, less government supervision of exchanges, brokers and issuers, less developed bankruptcy laws, difficulty
in enforcing contractual obligations, lack of uniform accounting and auditing standards and greater price volatility. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Although most of our investments are denominated
in U.S. dollars, any investments that are denominated in a foreign currency are subject to the risk that the value of a particular
currency may change in relation to one or more other currencies. Among the factors that may affect currency values are trade balances,
the level of short-term interest rates, differences in relative values of similar assets in different currencies, long-term opportunities
for investment and capital appreciation and political developments.&nbsp;&nbsp;We may employ hedging techniques to minimize these
risks, but we can offer no assurance that we will, in fact, hedge currency risk or that, if we do, such strategies will be effective.
</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>An economic downturn could affect
our operating results.</I> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">An economic downturn may adversely affect
companies having an enterprise value varying from $15 to $75 million, which are our primary market for investments.&nbsp;&nbsp;During
periods of volatile economic conditions such as presently exists generally in the United States, these companies often experience
decreased revenues, financial losses, difficulty in obtaining access to financing and increased funding costs.&nbsp;&nbsp;During
such periods, these companies also may have difficulty expanding </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">their businesses and operations and may be unable to meet their debt service obligations or other expenses
as <FONT STYLE="color: black">they become due.&nbsp;&nbsp;Any of the foregoing developments could cause the value of our investments
in these companies to decline.&nbsp;&nbsp;In addition, during periods of adverse economic conditions, we may have difficulty accessing
financial markets, which could make it more difficult or impossible for us to obtain funding for additional investments.&nbsp;&nbsp;Any
of these events could have a material adverse effect on our business, financial condition and results of operations.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We may experience fluctuations in our quarterly results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We may experience fluctuations in our
quarterly operating results due to a number of factors, including variations in, and the timing of, the recognition of realized
and unrealized gains or losses, the degree to which we encounter competition in our markets, the ability to find and close suitable
investments and general economic conditions.&nbsp;&nbsp;The volatility of our results is exacerbated by our relatively small number
of investments.&nbsp;&nbsp;As a result of these factors, you should not rely on our results for any period as being indicative
of performance in future periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>The due diligence process that we undertake
in connection with our investments may not reveal all facts that may be relevant in connection with an investment.</I> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Before making our investments, we conduct
due diligence that we deem reasonable and appropriate based on the facts and circumstances applicable to each investment.&nbsp;&nbsp;The
objective of the due diligence process is to identify attractive investment opportunities based on the facts and circumstances
surrounding an investment and to prepare a framework that may be used from the date of an acquisition to drive operational achievement
and value creation.&nbsp;&nbsp;When conducting due diligence, we evaluate a number of important business, financial, tax, accounting,
environmental and legal issues in determining whether or not to proceed with an investment.&nbsp;&nbsp;Our due diligence review
with respect to a potential portfolio company typically includes, but is not limited to, a review of historical and prospective
financial information including audits and budgets, on-site visits and interviews with management, employees, customers and vendors,
a review of business plans and an analysis of the consistency of operations with those plans, and other research relating to the
company, management, industry, markets, products and services, and competitors.&nbsp;&nbsp;Outside consultants, legal advisers,
accountants and investment banks are expected to be involved in the due diligence process in varying degrees depending on the
type of investment.&nbsp;Nevertheless, when conducting due diligence and making an assessment regarding an investment, we
are required to rely on resources available to us, including information provided by the portfolio company and, in some circumstances,
third party investigations.&nbsp;&nbsp;The due diligence process may at times be subjective, including with respect to newly organized
companies for which only limited information is available.&nbsp;&nbsp;Accordingly, we cannot assure you that the due diligence
investigation that we will carry out with respect to any investment opportunity will reveal or highlight all relevant facts that
may be necessary or helpful in evaluating such investment opportunity.&nbsp;&nbsp;We also cannot assure you that such an investigation
will result in an investment being successful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Risks Related to Our Business and Structure</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Our ability to invest in private companies
may be limited in certain circumstances.</I></B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">If we are to maintain our status as
a BDC, we must not acquire any assets other than &ldquo;qualifying assets&rdquo; unless, at the time of and after giving effect
to such acquisition, at least 70% of our total assets are qualifying assets.&nbsp;&nbsp;A principal category of qualifying assets
relevant to our business is securities purchased in transactions not involving any public offer from issuers that are eligible
portfolio companies under the 1940 Act.&nbsp;&nbsp;Investments in companies organized outside of the United States or having a
principal place of business outside of the United States are not eligible portfolio companies. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Any failure on our part to maintain
the Fund&rsquo;s status as a BDC could reduce our operating flexibility.</I> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">If we do not maintain the Fund&rsquo;s
status as a BDC, we might be regulated as a closed-end investment company under the 1940 Act, which would subject us to substantially
more regulatory restrictions under the 1940 Act.&nbsp;&nbsp;This could impose tighter limitations on Equus in terms of the use
of leverage and transactions with affiliated entities.&nbsp;&nbsp;Such developments could correspondingly decrease our operating
flexibility. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>We may not continue to qualify
as a RIC under the Code. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">To remain entitled to the tax benefits
accorded to RICs under the Code, we must meet certain income source, asset diversification and annual distribution requirements.&nbsp;&nbsp;To
qualify as a RIC, we must derive each taxable year at least 90% of our gross income from dividends, interest, payments with respect
to certain securities loans, gains from the sale of stock or other securities or foreign currencies, or other income derived with
respect to our business of investing in such stock or securities or currencies and net income from interests in certain &ldquo;qualified&rdquo;
publicly traded partnerships.&nbsp;&nbsp;The annual distribution </P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; font-variant: normal; text-indent: 0pt">requirement for a RIC is satisfied if we distribute at least 90% of our ordinary net taxable income and realized
net short-term capital gains in excess of realized net long-term capital losses, if any, to our stockholders on an annual basis.
As discussed above in &ldquo;Our business is dependent on external financing,&rdquo; we historically have borrowed funds necessary
to make qualifying investments to satisfy the Subchapter M diversification requirements.&nbsp;&nbsp;If we fail to satisfy such
diversification requirements and cease to qualify for conduit tax treatment, we will be subject to income tax on our income and
gains and will not be permitted to deduct distributions paid to stockholders. In addition, our distributions will be taxable as
dividends to the extent paid
from earnings and profits. We may also cease to qualify as a RIC, or be subject to income tax and/or a 4% excise tax, if we fail
to distribute a sufficient portion of our net investment income and net realized capital gains.&nbsp;&nbsp;The loss of our RIC
qualification would have a material adverse effect on the total return, if any, obtainable from an investment in our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Because we intend to distribute substantially
all of our income and net realized capital gains to our stockholders, we will need additional capital to finance our growth.</I>
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In order to qualify as a RIC, to avoid
payment of excise taxes and to minimize or avoid payment of income taxes, we intend to distribute to our stockholders substantially
all of our net ordinary income and realized net capital gains except for certain net long-term capital gains (which we may retain,
pay applicable income taxes with respect thereto, and elect to treat as deemed distributions to our stockholders). As a BDC, we
are generally required to meet a coverage ratio of total assets to total senior securities, which includes all of our borrowings
and any preferred stock we may issue in the future, of at least 200%. This requirement limits the amount that we may borrow. Because
we will continue to need capital to grow our investment portfolio, this limitation may prevent us from incurring debt and require
us to issue additional equity at a time when it may be disadvantageous to do so. We cannot assure you that debt and equity financing
will be available to us on favorable terms, or at all, and debt financings may be restricted by the terms of any of our outstanding
borrowings. In addition, as a BDC, except for limited situations such as this offering, we are generally not permitted to issue
equity securities priced below net asset value without stockholder approval. If additional funds are not available to us, we could
be forced to curtail or cease new lending and investment activities, and our net asset value could decline. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Our Board of Directors may change
our investment objective, operating policies and strategies without prior notice or stockholder approval. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our Board of Directors has the authority to
modify or waive certain of our operating policies and strategies without prior notice (except as required by the 1940 Act) and
without stockholder approval. However, absent stockholder approval, we may not change the nature of our business so as to cease
to be, or withdraw our election as, a BDC. We cannot predict the effect any changes to our current operating policies and strategies
would have on our business, operating results and value of our stock. Nevertheless, any such effects may adversely affect our business
and impact our ability to make distributions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Risks Related to Our Operation as a BDC</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Our management team has limited
experience managing a BDC.</I> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The 1940 Act imposes numerous constraints
on the operations of BDCs. For example, BDCs are required to invest at least 70% of their total assets in specified types of securities,
primarily in private companies or thinly traded U.S. public companies, cash, cash equivalents, U.S. government securities and
other high quality debt investments that mature in one year or less. See &ldquo;Regulation as a Business Development Company.&rdquo;
Our management team&rsquo;s limited experience in managing a portfolio of assets under such constraints may hinder our ability
to take advantage of attractive investment opportunities and, as a result, achieve our investment objective. Furthermore, any
failure to comply with the requirements imposed on BDCs by the 1940 Act could cause the SEC to bring an enforcement action against
us and/or expose us to claims of private litigants. If we do not remain a BDC, we might be regulated as a closed-end investment
management company under the 1940 Act, which would further decrease our operating flexibility and may prevent us from operating
our business as described in this prospectus. See &ldquo;Regulation as a Business Development Company.&rdquo; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Furthermore, our management team&rsquo;s
limited experience in managing a BDC that qualifies as a RIC, which is subject to operating limitations under the Code, may hinder
our ability to invest in certain assets that might otherwise be part of our investment strategy, thus reducing the return on your
investment. For a description of the requirements to maintain RIC pass-through tax treatment, please see &ldquo;Certain U.S. Federal
Income Tax Considerations.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Our ability to enter into transactions
with our affiliates is restricted.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We are prohibited under the 1940 Act from participating
in certain transactions with certain of our affiliates without the prior approval of our independent directors and, in some cases,
the SEC. Any person that owns, directly or indirectly, 5% or </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0pt">more of our outstanding voting securities is our affiliate for purposes of the 1940 Act, and we generally
are prohibited from buying or selling any security from or to such affiliate, absent the prior approval of our independent directors.
The 1940 Act also prohibits certain &ldquo;joint&rdquo; transactions with certain of our affiliates, which could include investments
in the same portfolio company (whether at the same or different times), without prior approval of our independent directors and,
in some cases, the SEC. If a person acquires more than 25% of our voting securities, we are prohibited from buying or selling any
security from or to such person or certain of that person&rsquo;s affiliates, or entering into prohibited joint transactions with
such persons, absent the prior approval of the SEC. Similar restrictions limit our ability to transact business with our officers
or directors or their affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Regulations governing our operation
as a BDC affect our ability to, and the way in which we, raise additional capital.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><FONT STYLE="color: black">Our business
requires a substantial amount of additional capital. We may acquire additional capital from the issuance of senior securities or
other indebtedness, the issuance of additional shares of our common stock or from securitization transactions. However, we may
not be able to raise additional capital in the future on favorable terms or at all. We may issue debt securities or preferred securities,
which we refer to collectively as &ldquo;senior securities,&rdquo; and we may borrow money from banks or other financial institutions,
up to the maximum amount permitted by the 1940 Act. The 1940 Act permits us to issue senior securities or incur indebtedness only
in amounts </FONT>such that our asset coverage, as defined in the 1940 Act, equals at least 200% after such issuance or incurrence.
Our ability to pay dividends or issue additional senior securities would be restricted if our asset coverage ratio were not at
least 200%. If the value of our assets declines, we may be unable to satisfy this test. If that happens, we may be required to
liquidate a portion of our investments and repay a portion of our indebtedness at a time when such sales may be disadvantageous.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 27pt 0 0; text-indent: 31.5pt"><FONT STYLE="font-family: Symbol">&#183;</FONT>&#9;<I>Senior
Securities</I>.&nbsp;&nbsp;As a result of issuing senior securities, we would also be exposed to typical risks associated with
leverage, including an increased risk of loss. If we issue preferred securities they would rank &#8220;senior&#8221; to common
stock in our capital structure. Preferred stockholders would have separate voting rights and may have rights, preferences or privileges
more favorable than that of our common stockholders. Furthermore, the issuance of preferred securities could have the effect of
delaying, deferring or preventing a transaction or a change of control that might involve a premium price for our common stockholders
or otherwise be in your best interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 27pt 0 0; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 27pt 0 0; text-indent: 31.5pt"><FONT STYLE="font-family: Symbol">&#183;</FONT>&#9;<I>Additional
Common Stock.</I>&nbsp;&nbsp;Our board of directors may decide to issue common stock to finance our operations rather than issuing
debt or other senior securities. As a BDC, we are generally not able to issue our common stock at a price below net asset value
without first obtaining required approvals from our stockholders and our independent directors. In any such case, the price at
which our securities are to be issued and sold may not be less than a price, that in the determination of our board of directors,
closely approximates the market value of such securities (less any commission or discount). We may also make rights offerings
to our stockholders at prices per share less than the net asset value per share, subject to the 1940 Act. If we raise additional
funds by issuing more common stock or senior securities convertible into, or exchangeable for, our common stock, the percentage
ownership of our stockholders at that time would decrease, and you may experience dilution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Changes in the laws or regulations
governing our business, or changes in the interpretations thereof, and any failure by us to comply with these laws or regulations,
could negatively affect the profitability of our operations</I></B><I>.</I>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Changes in the laws or regulations
or the interpretations of the laws and regulations that govern BDCs, RICs or non-depository commercial lenders, could significantly
affect our operations and our cost of doing business. We are subject to federal, state and local laws and regulations and are subject
to judicial and administrative decisions that affect our operations, including our loan originations, maximum interest rates, fees
and other charges, disclosures to portfolio companies, the terms of secured transactions, collection and foreclosure procedures
and other trade practices. If these laws, regulations or decisions change, or if we expand our business into jurisdictions that
have adopted more stringent requirements than those in which we currently conduct business, we may have to incur significant expenses
in order to comply or we might have to restrict our operations. In addition, if we do not comply with applicable laws, regulations
and decisions, we may lose licenses needed for the conduct of our business and be subject to civil fines and criminal penalties,
any of which could have a material adverse effect upon our business, results of operations or financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 27pt 0 0"><A NAME="a_004"></A><B>Item&nbsp; 1B. <I>Unresolved Staff Comments </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">None. </P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 27pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 27pt 0 0"><B><A NAME="a_005"></A>Item&nbsp; 2. <I>Properties </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We do not own any real estate or
other physical properties. Our principal executive offices are located at Eight Greenway Plaza, Suite 930, Houston, Texas
77046. We believe that these leased office facilities are suitable and adequate for the business as it is contemplated to be
conducted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 27pt 0 0"><A NAME="a_006"></A><B>Item&nbsp; 3. <I>Legal Proceedings </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On June&nbsp;30, 2009, the
Fund received a &ldquo;Wells&rdquo; notice from the Securities and Exchange Commission (&ldquo;SEC&rdquo;). Based on discussions
with the SEC staff, the Fund believes that the issues the staff intends to pursue relate to a one-time administrative fee that
the Fund paid in 2005 and the compensation of a certain Fund officer during approximately the same time period. The Wells notice
notified the Fund that the staff intends to recommend that the SEC bring a civil action against the Fund for possible violations
of the securities laws. The Fund has been cooperating with the SEC in this inquiry. In accordance with SEC procedures, the Fund
has presented its perspective on these issues to the staff. The SEC has not made a formal decision regarding an enforcement proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On March 10, 2010, American General Life Insurance
Company (American General&rdquo;) filed a complaint against the Fund in the District Court of Harris County, Texas, in connection
with an office lease entered into by our former administrator with American General. The complaint by American General sought to
hold the Fund liable for unpaid rent, improvements, and attorneys fees totaling approximately $450,000. We agreed to a settlement
with American General in exchange for a one-time payment of $120,000, which was paid on June 7, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><FONT STYLE="color: black">On
April 26, 2010, the SEC also subpoenaed our records in connection with certain trades in our shares by SPQR Capital LLP, SAE Capital
Ltd., Versatile Systems Inc., Mobiquity Investments Limited, and anyone associated with those entities.&nbsp;&nbsp;We have fully
cooperated with the SEC&rsquo;s request.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On June 9, 2011, RNR Production, Land
and Cattle Company, Inc. (&ldquo;RNR&rdquo;) filed a lawsuit against the Fund and each of the members of the Board in the District
Court of Harris County, Texas, seeking various monetary and equitable remedies, including a motion for a temporary restraining
order against the Fund from holding its annual meeting of shareholders which was scheduled for June 10, 2011.&nbsp; The Fund prevailed
against the motion but agreed to a nuisance settlement with RNR in exchange for a one-time payment of $200,000 which was paid
on September 2, 2011.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">From time to time, we are a party to
certain legal proceedings incidental to the normal course of our business including the enforcement of our rights under contracts
with our portfolio companies. While the outcome of these legal proceedings cannot at this time be predicted with certainty, we
do not expect that these proceedings will have a material effect upon our financial condition or results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 27pt 0 0; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 27pt 0 0; text-indent: 31.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 27pt 0 0"><A NAME="a_007"></A><B>Item&nbsp; 4. <I>Mine Safety Disclosures</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Not applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 27pt 0 0"><B><A NAME="a_008"></A>PART II </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 27pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 27pt 0 0"><A NAME="a_009"></A><B>Item 5. <I>Market for Registrant&rsquo;s Common Equity,
Related Stockholder Matters and Issuer Purchases of Equity Securitie</I></B>s</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 22.5pt 0 0; text-indent: 24.5pt">Our common stock is listed
on the New York Stock Exchange under the symbol &ldquo;EQS&rdquo;. We had approximately 3,500 stockholders as of December&nbsp;31,
2011, 845 of which were registered holders. Registered holders do not include those stockholders whose stock has been issued in
street name. As of December&nbsp;31, 2011, our net asset value was $3.61&nbsp;per share of our common stock.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 22.5pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 22.5pt 0 0; text-indent: 24.5pt">The following table reflects the high and low closing sales prices per share of our common stock on the New
York Stock Exchange, net asset value, or NAV and quarterly dividends declared per share for the two years ended December&nbsp;31,
2011, by quarter:</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Q1</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Q2</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Q3</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Q4</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Q1</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Q2</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Q3</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Q4</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 28%">High</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.92</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.78</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.46</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.51</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">3.50</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">3.23</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.58</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.50</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Low</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.41</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.36</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.88</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.82</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.66</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.57</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.11</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.03</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>NAV</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4.10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.92</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.69</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.61</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5.66</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4.28</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.55</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4.29</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Dividends Declared</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 22.5pt 0 0; text-indent: 24.5pt">As a regulated investment company
under Subchapter M of the Internal Revenue Code, we are required to distribute to our stockholders, in a timely manner, at least
90% of our taxable net investment income each year. If we do not distribute, in a timely manner, 98.2% of our taxable net capital
gains and 98.2% of our taxable net investment income each year (as well as any portion of the respective 2% balances not distributed
in the previous year), we will be subject to a 4% non-deductible federal excise tax</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 22.5pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 22.5pt 0 0; text-indent: 0pt">on certain undistributed income
of regulated investment companies. Under the 1940 Act, we are not permitted to pay dividends to stockholders unless we meet certain
asset coverage requirements. If taxable net investment income is retained, we will be subject to federal income and excise taxes.
We reserve the right to retain net long-term capital gains in excess of net short-term capital losses for reinvestment or to pay
contingencies and expenses. Such retained amounts, if any, will be taxable to the Fund as long-term capital gains and our stockholders
will be able to claim their proportionate share of the federal income taxes paid by the Fund on such gains as a credit against
their own federal income tax liabilities. Stockholders will also be entitled to increase the adjusted tax basis of their fund
shares by the difference between their undistributed capital gains and their tax credit. The 2010 RIC Modernization Act increases
the percentage of pre-October 31 capital gains included in the required distribution amount to 98.2% and provides for the inclusion
of amounts for which estimated tax was paid during the calendar year in the distributed amount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On March&nbsp;24, 2009, we announced
that we suspended our managed distribution policy and payment of quarterly distributions for an indefinite period, following the
distribution of the first quarter dividend, paid on March&nbsp;30, 2009. As originally implemented, the policy provided for quarterly
dividends at an annualized rate equal to 10% of the Fund&rsquo;s market value per share as at the end of the preceding calendar
year. On February&nbsp;27, 2009, we announced the declaration of a first quarter dividend of $0.1075 per share in accordance with
the our revised managed distribution policy, pursuant to which we intend to pay quarterly dividends at an annualized rate equal
to 10% of our market value based on the 2008 year-end closing price of $4.30. A stock dividend in the amount of $0.9 million was
payable on March&nbsp;30, 2009 to shareholders of record as of March&nbsp;9, 2009. We issued 296,528 additional shares of our
common stock at an effective price of $3.10 per share and paid $2,000 in cash for fractional shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We invest in companies that are
believed to have a high potential for capital appreciation, and we intend to realize the majority of our profits upon the sale
of our investments in portfolio companies. Consequently, most of the companies in which we invest do not have established policies
of paying annual dividends. However, a portion of the investments in portfolio securities held by the Fund consists of interest-bearing
subordinated debt securities or dividend-paying preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On April 27, 2011, we announced
that we had entered into two separate transactions involving the purchase of an aggregate of 11,408 4% bonds due May 2012 (Bonds&rdquo;)
issued by Orco Germany S.A., a commercial and multi-family residential real estate holding company and developer based in Berlin.
The consideration provided to the selling bondholders consisted of an aggregate of 1,700,000 newly issued shares of common stock
of the Fund. These shares are unregistered under the Securities Act of 1933. We received 8,890 of the Bonds on April 27, 2011.
On May 9, 2011, one of these agreements was amended and restated to provide for an additional 45 days to deliver 2,518 of the Bonds
in exchange for providing to the Fund approximately $1.6 million in cash as security for such delivery. As the remaining bonds
were not delivered by the specified date, the cash collateral became free and clear property of the Fund on June 23,2011. Neither of the selling bondholders are &ldquo;U.S. Persons&rdquo;
as defined in Section 903 of the Securities Act of 1933 (&ldquo;Securities Act&rdquo;) and no solicitation was made and no underwriting
discounts were given or paid in connection these transactions. We believe that the issuance of the shares in connection with the
purchase of the Bonds and the receipt of cash was exempt from registration with the Securities and Exchange Commission pursuant
to Section 4(2) of the Securities Act.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><A NAME="a_010"></A><B>Item&nbsp; 6. <I>Selected Financial Data </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The following is a summary of
selected financial data and per share data of the Fund for the five years ended December&nbsp;31, 2011 (in thousands, except per
share data):</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4.5pt 22.5pt 0 0; text-indent: 24.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2010</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2009</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2008</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2007</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%">Total investment income</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">539</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,904</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,771</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,181</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,857</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net investment (loss) income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(3,500</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(770</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">195</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(713</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(523</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Net realized gain (loss) of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(10,930</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(7</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(15,555</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">924</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,264</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net change in unrealized appreciation (depreciation) of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">9,901</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(12,073</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(12,172</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(19,873</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,526</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Net increase (decrease) in net assets resulting from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(4,529</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(12,850</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(27,532</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(19,662</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">12,267</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Distribution from net investment income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(195</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Return of capital distribution</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(726</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(3,267</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Distribution of realized gains</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,065</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(4,123</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Total assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">44,301</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">53,454</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">81,007</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">124,063</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">134,730</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Total net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">38,148</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">38,051</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">50,901</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">78,435</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">103,216</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Net cash (used in) provided by operating activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">18,596</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">16,599</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">12,361</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(32,138</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(18,264</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Shares outstanding at end of year</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,562</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,862</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,862</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,565</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,401</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Weighted average shares outstanding, basic</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,049</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,862</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,790</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,429</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,251</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt"><B>Per Share Data:&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2011</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2010</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2009</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2008</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2007</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net investment (loss) income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.35</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.09</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.02</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.08</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.06</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Net realized gain (loss) of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1.09</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1.77</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.11</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.64</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net change in unrealized appreciation (depreciation) of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.99</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1.36</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1.38</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2.36</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.91</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Net increase (decrease) in net amounts resulting from</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;operations per share, basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.45</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1.45</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(3.13</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2.33</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.49</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Distribution from net investment income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.02</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Return of capital distribution</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.09</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.39</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Distribution of realized gains</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.24</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.50</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net asset value (including unrealized appreciation)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.61</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4.29</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5.74</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">9.16</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">12.29</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4.5pt 22.5pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><A NAME="a_011"></A><FONT STYLE="font-size: 10pt"><B>Item 7.<I> Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations </I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 22.5pt 0 0"><B>Overview </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Equus is a BDC that
provides financing solutions for privately held middle market and small capitalization companies. We began operations in 1983 and
have been a publicly traded closed-end fund since 1991. Our investment objective is to seek the highest total return, consisting
of capital appreciation and current income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In June 2005, we retained
Moore Clayton Capital Advisors, Inc. (&ldquo;MCCA&rdquo;) as our registered investment adviser to manage our portfolio and provide
access to investment opportunities. Our investment advisory agreement with MCCA terminated on June 30, 2009 and we have since internalized
the management of the Fund. We now directly employ our management team and incur the costs and expenses associated with Fund operations.
There is no outside investment advisory organization providing services to us under a fee-based advisory agreement, or an administrative
organization charging us for services rendered. <FONT STYLE="color: black">We expect that, because of management internalization,
certain expenses of the Fund will not increase commensurate with an increase in the size of the Fund and, therefore, we can achieve
efficiencies in our cost structure if we are </FONT>able to grow the Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As a BDC, we are required to comply
with certain regulatory requirements. For instance, we generally have to invest at least 70% of the Fund&rsquo;s total assets
in &ldquo;qualifying assets,&rdquo; including securities of private U.S. companies, certain public U.S. companies with a total
market capitalization not in excess of $250 million, cash, cash equivalents, U.S. government securities and short-term high-quality
debt investments. Equus is a RIC under Subchapter M of the Code. To qualify as a RIC, we must meet certain source of income and
asset diversification requirements. If we comply with the provisions of Subchapter M, the Fund generally does not have to pay
corporate-level income taxes on any income that distributed to our stockholders.</P>

<I></I><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 22.5pt 0 0; text-indent: 24.5pt"><I>Investment Income</I>. <FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
generate investment income from interest payable on the debt securities that the Fund holds, dividends received on equity interests
in our portfolio companies and capital gains, if any, realized upon sales of equity and, to a lesser extent, debt securities in
the investment portfolio. Our equity investments may include shares of common and</FONT> preferred</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 22.5pt 0 0; text-indent: 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT>stock, membership interests in limited liability companies and warrants to purchase additional equity interests. These
equity securities may or may not pay dividends, and the exercise prices of warrants that we acquire in connection with debt investments,
if any, vary by investment. Our debt investments in portfolio companies may be in the form of senior or subordinated loans and
may be unsecured or have a first or second lien on some or all of the assets of the borrower. Our loans typically have a term
of three to seven years and bear interest at fixed or floating rates. Interest on these debt securities is generally payable either
quarterly or semiannually. Some promissory notes held by the Fund provide that a portfolio company may elect to pay interest in
cash or provide that discount interest may accrete in the form of original issue discount or payment-in-kind (PIK) over the life
of the notes by adding unpaid interest amounts to the principal balance. Amortization of principal on our debt investments is
generally deferred for several years from the date of initial investment. The principal amount of these debt securities and any
accrued but unpaid interest generally will become due at maturity. We also earn interest income at market rates on investments
in short-term marketable securities. From time to time, we generate income from time to time in the form of commitment, origination
and structuring fees in connection with our investments. We recognize all such fees when earned.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt"><I>Expenses. </I>Currently,
our primary operating expenses include director fees and expenses, professional fees, compensation expense, and general
and administrative fees. During 2011, we incurred non-recurring expenses including settlement expenses, related to the
various legal proceedings described in Item 3 above, were $0.3 million and offering costs of $0.4 million. During 2010,
professional fees and other expenses incidental to our annual meeting and proxy contest were $0.7 million. Prior to the
internalization described above, our primary operating expenses consisted of investment advisory and management fees payable
to MCCA for its work in identifying, evaluating, negotiating, closing and monitoring investments. MCCA provided us with the
services of its investment professionals and our former administrator, Equus Capital Administration Company, Inc.
(&ldquo;ECAC&rdquo;) provided us the services of its administrative staff as well as its investment professionals. MCCA also
provided and paid for the management services necessary to run the Fund&rsquo;s business. Under the Advisory Agreement
between MCCA and the Fund, MCCA received a management fee equal to an annual rate of 2% of our net assets, which was paid
quarterly in arrears. Under the Advisory Agreement, we also agreed to pay an incentive fee to MCCA based on both realized
investment income and net realized capital gains less unrealized capital depreciation. This incentive fee was equal to (a)
20% of the excess, if any, of our net investment income for each quarter that exceeded a quarterly hurdle rate equal to 2%
(8% annualized) of our net assets, and (b) 20% of our net realized capital gain less unrealized capital depreciation. The
incentive fee calculated in clause (b) was paid on an annual basis. ECAC provided administrative services to us for which we
paid ECAC an administrative fee. Under the administration agreement we entered into with ECAC on June 30, 2005, we reimbursed
the ECAC for its costs and expenses in performing its obligations and providing personnel and facilities up to a maximum of
$0.5 million per year. Pursuant to the internalization described above, our administration agreement with ECAC expired on
June 30, 2009. Consequently, all services previously provided to us by ECAC are now performed internally by our employees or
from time to time by other third parties</FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Operating Activities.</I> We
use cash to make new investments and follow-on investments in our existing portfolio companies. We record these investments at
cost on the applicable trade date. Realized gains or losses are computed using the specific identification method. On an ongoing
basis, we carry our investments in our financial statements at fair value, as determined by our board of directors. See &ldquo;&mdash;Significant
Accounting Policies &ndash; Valuation&rdquo; below. As of December 31, 2011, we had invested 50.2% of our net assets in securities
of portfolio companies that constituted qualifying investments under the 1940 Act. At that time, we had invested 12.1% by value
in shares of common stock, 1.0% in membership interests in limited liability companies, and 37.1% in various debt instruments.
Also, as of December 31, 2011, we had invested the proceeds of borrowings on margin (as discussed below under &ldquo;&mdash;Financing
Activities&rdquo;) in short-term, highly liquid investments, consisting primarily of U.S. Treasury Bills, interest-bearing bank
accounts and certificates of deposit, that are, in our opinion, appropriate for the preservation of the principal amount of such
instruments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Under certain circumstances, we
make follow-on investments in some of our portfolio companies. As of December&nbsp;31, 2011, we had  no outstanding commitments
to our portfolio company investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Financing Activities.</I> From time
to time, we use leverage to finance a portion of our investments. We then repay such debt from the sale of portfolio securities.
Under the 1940 Act, we have the ability to borrow funds and issue debt securities or preferred stock that are referred to as senior
securities, subject to certain restrictions including an overall limitation on the amount of outstanding debt, or leverage, relative
to equity of 1:1. Because of the nature and size of our portfolio investments, we periodically borrow funds to make qualifying
investments in order to maintain our qualification as a RIC. During 2011 and 2010, we borrowed such funds by accessing a margin
account with a securities brokerage firm. We invest the proceeds of these margin loans in high-quality securities such as U.S.
Treasury securities until they are repaid. We refer to these high-quality investments as &ldquo;restricted assets&rdquo; because
they are not generally available for investment in portfolio companies under the terms of borrowing. If, in the future, we cannot
borrow funds to make such qualifying investments at the end of any future quarter, we may not qualify as a RIC and would become
subject to corporate-level income tax on our net investment income and realized capital gains, if any. In addition, our distributions
to stockholders would be taxable as ordinary dividends to the extent paid from earnings and profits. See &ldquo;Federal Income
Tax Considerations.&rdquo;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Distributions.</I> On March&nbsp;24,
2009, we announced that we suspended our managed distribution policy and payment of quarterly distributions for an indefinite
period, following the distribution of the first quarter dividend to be paid on March&nbsp;30, 2009. As originally implemented,
the policy provided for quarterly dividends at an annualized rate equal to 10% of the Fund&rsquo;s market value per share as at
the end of the preceding calendar year. We will continue to pay out net investment income and/or realized capital gains, if any,
on an annual basis as required under the 1940 Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Possible Share Repurchase.</I>
As a closed-end business development company, our shares of common stock are not redeemable at the option of stockholders, and
our shares currently trade at a discount to their net asset value. Our board of directors has determined that it would be in the
best interests of our stockholders to reduce or eliminate this market value discount. Accordingly, we have been authorized to,
and may from time to time, repurchase shares of our outstanding common stock (including by means of tender offers or privately
negotiated transactions) in an effort to reduce or eliminate this market discount or to increase the net asset value of the our
shares. We are not required to undertake any such share repurchases, nor do we anticipate taking such action in 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 22.5pt 0 0"><B>Critical Accounting Policies </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our financial statements are based
on the selection and application of significant accounting policies, which require management to make significant estimates and
assumptions. We believe that the following are some of the more critical judgment areas in the application of our accounting policies
that currently affect our financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Valuation of Investments</B>&mdash;
Portfolio investments are carried at fair value with the net change in unrealized appreciation or depreciation included in the
determination of net assets. Valuations of portfolio securities are performed in accordance with accounting principles generally
accepted in the United States of America and the financial reporting policies of the Securities and Exchange Commission (&ldquo;SEC&rdquo;).
The applicable methods prescribed by such principles and policies are described below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Publicly-traded portfolio securities</I>&mdash;Investments
in companies whose securities are publicly traded are generally valued at their quoted market price at the close of business on
the valuation date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Privately-held portfolio securities</I>&mdash;The
fair value of investments for which no market exists is determined on the basis of procedures established in good faith by our
Board of Directors. As a general principle, the current &ldquo;fair value&rdquo; of an investment would be the amount we might
reasonably expect to receive for it upon its current sale, in an orderly manner. Appraisal valuations are necessarily subjective
and the estimated values arrived at by the Fund may differ materially from amounts actually received upon the disposition of portfolio
securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">During the first 12 months after
an investment is made, the Fund utilizes the original investment amount to determine the fair value unless significant developments
have occurred during this 12 month period which would indicate a material effect on the portfolio company (such as results of operations
or changes in general market conditions). After the 12 month period, or if material events have occurred within the twelve month
period, Fund management considers a two step process when appraising investments of privately held companies. The first step involves
determining the enterprise value of the portfolio company. During this step, Fund management considers three different valuation
approaches: a market approach, an income approach, and an asset approach. The particular facts and circumstances of each portfolio
company determine which approach, or combination of approaches, will be utilized. The second step when appraising equity investments
of privately held companies involves allocating value to the various debt and equity securities of the company. Fund management
allocates value to these securities based on their relative priorities. For equity securities such as warrants, the Fund may also
incorporate alternative methodologies including the Black-Scholes Option Pricing Model.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Market approach</B><FONT STYLE="font: 10pt Times New Roman, Times, Serif">
&ndash; The market approach typically employed by Fund management calculates the enterprise value of a company as&nbsp;a
multiple of earnings before interest, taxes, depreciation and amortization (&ldquo;EBITDA&rdquo;) generated by the company
for the trailing twelve month period.&nbsp; Adjustments to the company&rsquo;s EBITDA, including those for non-recurring
items, may be considered. Multiples are estimated based on current market conditions and past experience in the private
company marketplace and are subjective in nature. The Fund will apply liquidity and other discounts it deems appropriate to
equity valuations where applicable. The Fund may also use, when available, third-party transactions in a portfolio
company&rsquo;s securities as the basis of valuation (the &ldquo;private market method&rdquo;). The private market method
will be used only with respect to completed transactions or firm offers made by sophisticated, independent
investors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Income approach</B> &ndash; The income
approach typically utilized by Fund management calculates the enterprise value of a company utilizing a discounted cash flow model
incorporating projected future cash flows of the company.&nbsp; Projected future cash flows consider the historical performance
of the company as well as current and projected market participant performance. Discount rates are estimated based on current
market conditions and past experience in the private company marketplace and are subjective in nature. The Fund will apply liquidity and other discounts it deems appropriate
to equity valuations where applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Asset approach</B> &ndash; The Fund
considers the asset approach to determine the fair value of significantly deteriorated investments demonstrating circumstances
indicative of a liquidation analysis. This situation may arise when a portfolio company: 1) cannot generate adequate cash flow
to meet the principal and interest payments on its indebtedness; 2) is not successful in refinancing the its debt upon&nbsp;maturity;
3) Fund management believes the credit quality of a loan has deteriorated due to changes in the business and underlying asset
or market conditions may result in the company&rsquo;s inability to meet future obligations; or 4) the portfolio company&rsquo;s
reorganization or bankruptcy. Consideration is also given as to whether a liquidation event would be orderly or forced.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Fund management considers that the
Fund&rsquo;s general intent is to hold its loans to maturity when appraising its privately held debt investments. As such, Fund
management believes that the fair value will not exceed the cost of the investment. However, in addition to the previously described
analysis involving allocation of value to the debt instrument, the Fund performs a yield analysis to determine if a debt security
has been impaired.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Certificates of deposit purchased
by the Fund generally will be valued at their face value, plus interest accrued to the date of valuation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Audit Committee of the Board
of Directors may engage independent, third-party valuation firms to conduct independent appraisals and review management&rsquo;s
preliminary valuations of each privately-held investment that the Fund (a)&nbsp;has held for more than one year and (b)&nbsp;holds
on its books at a fair value of at least $2.0 million in order to make their own independent assessment. Any third-party valuation
data would be considered as one of many factors in a fair value determination. The Audit Committee then would recommend the fair
values for all privately-held securities based on all relevant factors to the Board of Directors for final approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Because of the inherent uncertainty
of the valuation of portfolio securities which do not have readily ascertainable market values, amounting to $19.2 million and
$27.7 million as of December&nbsp;31, 2011 and 2010, respectively, our fair value determinations may materially differ from the
values that would have been used had a ready market existed for the securities. As of December 31, 2011, one of the Fund&rsquo;s
portfolio investments, 4% bonds due May 2012 issued by Orco Germany S.A., is publicly listed on the Euro MTF Market of the Luxemburg
Stock Exchange. However, there has been no recent trading activity. There were no publicly traded securities as at December 31,
2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On a daily basis, we adjust our
net asset value for the changes in the value of our publicly held securities, if applicable, and material changes in the value
of private securities, generally determined on a quarterly basis or as announced in a press release, and reports those amounts
to Lipper Analytical Services, Inc. Weekly and daily net asset values appear in various publications, including Barron&rsquo;s
and <I>The Wall Street Journal</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Federal Income Taxes </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0; text-align: left; text-indent: 24.5pt">We intend to comply
with the requirements of the Code necessary for us to qualify as a RIC. So long as we comply with these requirements, we generally
will not be subject to corporate-level federal income taxes on otherwise taxable income (including net realized capital gains)
distributed to stockholders. Therefore, we did not record a provision for federal income taxes in our financial statements. As
of December&nbsp;31, 2011, we had a capital loss carry forward of $26.5 million which may be used to offset future capital gains.
We may borrow money from time to time to maintain our status as a RIC under the Code. See &ldquo;&mdash;Overview &ndash; Financing
Activities&rdquo; above.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Interest Income Recognition</I></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We record interest income, adjusted
for amortization of premium and accretion of discount, on an accrual basis to the extent that we expect to collect such amounts.
We stop accruing interest on investments when we determine that interest is no longer collectible. We may also impair the accrued
interest when we determine that all or a portion of the current accrual is uncollectible. If we receive any cash after determining
that interest is no longer collectible, we treat such cash as payment on the principal balance until the entire principal balance
has been repaid, before we recognize any additional interest income. We accrete or amortize discounts and premiums on securities
purchased over the life of the respective security using the effective yield method. The amortized cost of investments represents
the original cost adjusted for the accretion of discount and/or amortization of premium on debt securities. </P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Payment in Kind Interest </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We have loans
in our portfolio that may pay PIK interest. We add PIK interest, if any, computed at the contractual rate specified in each
loan agreement, to the principal balance of the loan and recorded as interest income. To maintain the Fund&rsquo;s</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0pt">status as a RIC, we must pay out to
our stockholders this non-cash source of income in the form of dividends even if we have not yet collected any cash in respect
of such investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0; text-indent: 24.5pt"><B><I>Recent Accounting Pronouncements
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Effective January 1,
2010, we adopted changes issued by the Financial Accounting Standards Board (FASB) to add new requirements for disclosures about
significant transfers into and out of Levels 1 and 2 and separate disclosures about purchases, sales, issuances and settlements
relating to Level 3 measurements. In addition, the update clarifies existing fair value disclosures about the level of disaggregation
and about inputs and valuation techniques used to measure fair value. The adoption of this standard had no impact on our financial
position and results of operations. In January 2010, the FASB issued changes to disclosure requirements for fair value measurements.
Specifically, the changes require a reporting entity to disclose, in the reconciliation of fair value measurements using significant
unobservable inputs (Level 3), separate information about purchases, sales, issuances, and settlements (that is, on a gross basis
rather than as one net number). These changes became effective for the Fund beginning January 1, 2011. Other than the additional
disclosure requirements, the adoption of this standard did not have a material effect on our financial position and results of
operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Current Market Conditions
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Overall economic conditions
in the United States have improved slightly through 2011.&nbsp; However, the economic recovery has been hampered by persistent
high unemployment levels and lingering problems in the housing market.&nbsp; Further, the banking industry continues to experience
additional bank failures as regulators continue to impose strict capital requirements.&nbsp; Additionally, future economic expansion
and business investment is threatened by perceptions of higher taxes and healthcare costs, as well as the high levels of government
deficit spending.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Market conditions for business transactions
including mergers and acquisitions and private equity investments improved throughout 2010 and 2011 as low interest rates have
reduced capital costs, some banks are lending more aggressively, valuations have increased and buyer and seller expectations have
converged.&nbsp; These conditions were contributors to an upturn in transaction volume during 2011 to its largest level since 2008.&nbsp;
In addition, corporations have been deleveraging and are holding significant amounts of cash and many have begun to focus on acquisitions
as part of future growth plans.&nbsp; Private equity firms have access to historically large amounts of committed capital as private
equity activity has been lower than anticipated for nearly two years and fund raising was robust heading into the economic downturn.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><FONT STYLE="color: black">Consistent
with other companies in the financial services sector</FONT>, our performance has been adversely affected. Between December&nbsp;31,
2009 and December 31, 2011 our net asset value declined from $5.74 per share to $3.61 per share.&nbsp; This further impacted the
closing price of our common stock, as it declined approximately 21.9% during 2010 and a further 10.4% during 2011 and, as of December
31, 2011, is trading at a 38.0% discount to our net asset value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">During 2010 and 2011, we executed certain
initiatives to enhance liquidity, achieve a lower operational cost structure, provide more assistance to portfolio companies and
realize certain of our portfolio investments. Specifically, we changed the composition of our Board of Directors and Management,
terminated certain of our follow-on investments, internalized the management of the Fund, suspended our managed distribution policy,
modified our investment strategy to pursue shorter term liquidation opportunities, pursued non-cash investment opportunities, and
sold certain of our underperforming investment holdings.&nbsp; We believe these actions continue to be necessary to protect capital and liquidity during
this turbulent </P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">economic period in order to preserve and enhance shareholder value.
We also expect that, because of management internalization, certain expenses of the Fund will not increase commensurate with an
increase in the size of the Fund and, therefore, we can achieve efficiencies in our cost structure if we are able to grow the
Fund</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Liquidity and Capital Resources</B></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We generate cash primarily from maturities,
sales of securities and borrowings, as well as capital gains realized upon the sale of portfolio investments. We use cash primarily
to make additional investments, either in new companies or as follow-on investments in the existing portfolio companies and to
pay the dividends to our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We are currently evaluating the
impact of current market conditions on our portfolio company valuations and their ability to provide current income. We have
followed valuation techniques in a consistent manner; however, it is cognizant of current market conditions that might effect
future valuations of portfolio securities. We believe that our operating cash flow and cash on hand will be sufficient to
meet operating requirements and to finance routine capital expenditures through the next 12 months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31, 2011</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As of December&nbsp;31, 2011, we had
total assets of $44.3 million, of which $19.2 million were invested in portfolio investments and $16.8 million were invested in
cash and cash equivalents. Among our portfolio investments, $14.1 million (at fair value) or 37.1% of net asset value were in the
form of notes receivable from portfolio companies as of December&nbsp;31, 2011. We impaired certain promissory notes issued by
Spectrum Management, LLC, having a fair value of $0.3 million.</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December&nbsp;31, 2011, we also had $6.1
million of restricted cash and temporary cash investments, including primarily the proceeds of a quarter-end margin loan that we
incurred to maintain the diversification requirements applicable to a RIC. Of this amount, $6.0 million was invested in U.S. Treasury
bills and $0.1 million represented a required 1% brokerage margin deposit. These securities were held by a securities brokerage
firm and pledged along with other assets to secure repayment of the margin loan. The U.S.&nbsp;Treasury bills were sold on January&nbsp;3,
2012 and we subsequently repaid this margin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Operating Activities.</I> We provided
$18.6 million in cash for operating activities in 2011. In 2011, we made investments in portfolio companies of $0.6 million and
incurred compensation expense and paid fees to our consultants, legal counsel, directors, banks and others of $3.1 million, while
realizing a loss of $10.9 million from the disposition of portfolio securities. During 2011, we incurred non-recurring expenses including settlement expenses, related to the various
legal proceedings described in Item 3 above, were $0.3 million and offering costs of $0.4 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt"><I>Financing
Activities.</I> We used $9.2 million in cash from financing activities for 2011. We issued 1,7000,000 additional shares of our
common stock at an effective price of $3.10 per share.</FONT><FONT STYLE="color: black"> </FONT><FONT STYLE="font-size: 10pt">On
April 27, 2011, we announced that we had entered into two separate transactions involving the purchase of an aggregate of 11,408
4% bonds due May 2012 (Bonds&rdquo;) issued by Orco Germany S.A., a commercial and multi-family residential real estate holding
company and developer based in Berlin. The consideration provided to the selling bondholders consisted of an aggregate of 1,700,000
newly issued shares of common stock of the Fund. These shares are unregistered under the Securities Act of 1933. We received 8,890
of the Bonds on April 27, 2011. We incurred a quarter-end margin loan in the amount of $6.0 million to maintain the diversification
requirement applicable to a RIC. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31, 2010</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As of December&nbsp;31, 2010, we had
total assets of $53.5 million, of which $27.7 million were invested in portfolio investments, and $7.4 million in cash and cash
equivalents. Among our portfolio investments, $19.3 million (at fair value) or 50.8% of net asset value were in the form of notes
receivable from portfolio companies as of December&nbsp;31, 2010. We record no interest income or receive no cash for notes issued
by Riptide Entertainment, LLC, having an aggregate cost basis of $10.0 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As of December&nbsp;31, 2010, we also had $15.2
million of restricted cash and cash equivalents, including primarily the proceeds of a quarter-end margin loan that we incurred
to maintain the diversification requirements applicable to a RIC. Of this amount, $15.0 million was invested in U.S. Treasury bills
and $0.2 million represented a required 1% brokerage margin deposit. These securities were held by a securities brokerage firm
and pledged along with other assets to secure repayment of the margin loan. The U.S.&nbsp;Treasury bills were sold on January&nbsp;3,
2011 and we subsequently repaid this margin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Operating Activities.</I> We provided
$16.6 million in cash for operating activities in 2010. In 2010, we made investments in portfolio companies of $1.2 million and
incurred compensation expense and paid fees to our consultants, legal counsel, directors, banks and others of $3.4 million, while
realizing a loss of $7.0 thousand from the disposition of investments.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Financing Activities.</I> We used $15.3
million in cash from financing activities for 2010. We incurred a quarter-end margin loan in the amount of $15.0 million to maintain
the diversification requirement applicable to a RIC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0.5in"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31, 2009 </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As of December&nbsp;31, 2009, we had
total assets of $81.0 million, of which $42.4 million were invested in portfolio investments and $5.5 million were invested in
temporary cash investments. Among our portfolio investments, $25.7 million (at fair value) or 50.4% of net asset value were in
the form of notes receivable from portfolio companies as of December&nbsp;31, 2009. We record no interest income or receive no
cash for notes issued by Riptide Entertainment, LLC and Nickent Golf, Inc., having an aggregate value of $3.2 million.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As of December&nbsp;31, 2009, we
also had $30.3 million of restricted cash and cash equivalents, including primarily the proceeds of a quarter-end margin loan
that we incurred to maintain the diversification requirements applicable to a RIC. Of this amount, $30.0 million was invested
in U.S. Treasury bills and $0.3 million represented a required 1% brokerage margin deposit. These securities were held by a
securities brokerage firm and pledged along with other assets to secure repayment of the margin loan. The U.S.&nbsp;Treasury
bills were sold on January&nbsp;4, 2010 and we subsequently repaid this margin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Operating Activities.</I> We provided
$12.4 million in cash for operating activities in 2009. In 2009, we made investments in portfolio companies of $1.2 million and
paid fees to our advisers, directors, banks and others of $4.1 million, while realizing a loss of $15.6 million from the disposition
of portfolio securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Financing Activities.</I> We used
$15.0 million in cash from financing activities for 2009. We declared one cash dividend in 2009 totaling $0.9 million ($0.1075
per share). We issued 296,528 additional shares of our common stock at an effective price of $3.10 per share and paid $2.0 thousand
in cash for fractional shares. We determined that the 2009 dividend payment should be classified as a 100% qualifying dividend,
with 21.2% allocated ordinary income and 78.8% allocated to return of capital as of December&nbsp;31, 2009.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><B>Results of Operations </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Investment Income and Expense </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31, 2011 as
compared to Year Ended December&nbsp;31, 2010</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">Total income from portfolio securities
declined to $0.5 million for 2011 from $2.9 million for 2010. This decrease was largely due to declines in interest bearing promissory
notes during 2011 along with the impairment of accrued interest related to the interest bearing promissory notes of ConGlobal Industries
Holding, Inc. and Spectrum Management, LLC for the period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">Professional fees decreased to $1.2
million for 2011 from $1.4 million for 2010. The legal fees and solicitation costs in 2010 were higher
due to our Annual Shareholder Meeting held in May 2010 and resulting proxy contest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">The Fund also incurred expenses related
offering costs of $0.4 million and settlement costs of $0.3 million for 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">As a result of the factors described
above, net investment loss after expenses was ($3.5) million for 2011 as compared to a net investment loss of ($0.8) million
for 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31, 2010
as compared to Year Ended December&nbsp;31, 2009</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">Total income from portfolio securities
declined to $2.9 million for 2010 from $3.7 million for 2009. This decrease was largely due to declines in interest bearing promissory
notes during 2010 along with the restructuring of our holding in ConGlobal Industries Holding, Inc. in the third quarter 2009,
resulting in the recognition of additional accrued interest for the period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">During the first six months of 2009,
the former investment adviser received management fee compensation at an annual rate of 2% of the net assets of the Fund paid
quarterly in arrears. Such fees amounted to $0.7 million for the six months ended June&nbsp;30, 2009. We also reimbursed Equus
Capital Administration Company, Inc. (&ldquo;ECAC&rdquo;), the former administrator, for the costs and expenses incurred in performing
its obligations and providing personnel and facilities under the Fund&rsquo;s Administration Agreement with ECAC, provided that
such reimbursements did not exceed $450,000 per year. ECAC received $0.2 million for the six months ended June&nbsp;30, 2009.
As a result of the internalization management, we assumed these obligations directly beginning July&nbsp;1, 2009. </P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">Professional fees increased to $1.4 million for 2010 from $1.2 million for 2009. These increases were due
to the increases in legal fees and solicitation costs associated with our Annual Shareholder Meeting held in May 2010 and resulting
proxy contest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">Compensation expense was $1.4&nbsp;million
for 2010 and $0.5 million in 2009, respectively. The increase in compensation expense generated in 2010 is due to the internalization
of management as of June 30, 2009. Accordingly, we paid no compensation prior to July 1, 2009.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As a result of the factors described
above, net investment loss after expenses was ($0.8) million for 2010 as compared to a net investment income of $0.2 million for
2009.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0pt">Summary of Portfolio Investment Activity</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt"><B><I>Year Ended December 31, 2011</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">During the year ended December 31, 2011, we
received $0.4 million from Sovereign Business Forms, Inc. in the form of principal payments and a distribution from Equus Media
Development Company, LLC (&ldquo;EMDC&rdquo;) in the amount of $1.0 million. We sold our promissory notes in 1848 Capital Partners,
LLC (&ldquo;1848&rdquo;), Big Apple Entertainment Partners, LLC (&ldquo;Big Apple&rdquo;), and London Bridge Entertainment Partners,
Ltd (&ldquo;London Bridge&rdquo;) and certain assets of Riptide Entertainment Partners, LLC
</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0pt"><FONT STYLE="color: black">(&ldquo;Riptide&rdquo;)
in which we held a 64.67% membership interest.&nbsp; All of these assets were sold to Capital Markets Acquisition Partners, LLC
for a combined price of $10 million, with $9.8 million allocated to the promissory notes held by the Fund and $0.2 million to
Riptide.&nbsp; The Fund allocated the proceeds to the promissory notes resulting in a realized loss of approximately $0.9 million
at London Bridge.&nbsp; In addition, the monies provided to Riptide were sufficient to satisfy its outstanding liabilities, resulting
in a value of $0.&nbsp;We also received $0.8 million in connection with the sale and redemption of our membership interest in
RP&amp;C International Investments LLC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">During the year ended December&nbsp;31,
2011, the Fund had investment activity of $3.7 million in three portfolio companies. <FONT STYLE="color: black">We made a follow-on
investment of $0.3 million in Spectrum Management, LLC. On April 27, 2011, we announced that we had entered into two separate transactions
involving the purchase of an aggregate of 11,408 4% bonds due May 2012 (&ldquo;Bonds&rdquo;) issued by Orco Germany S.A., a commercial
and multi-family residential real estate holding company and developer based in Berlin. The consideration provided to the selling
bondholders consisted of an aggregate of 1,700,000 newly issued shares of common stock of the Fund. These shares are unregistered
under the Securities Act of 1933. We received 8,890 of the Bonds on April 27, 2011. On May 9, 2011, one of these agreements was
amended and restated to provide for an additional 45 days to deliver 2,518 of the Bonds in exchange for providing to the Fund approximately
$1.6 million in cash as security for such delivery. As the remaining bonds were not delivered by the specified date, the cash collateral
became free and clear property of the Fund on June 23, 2011. On September 30, 2011, we formed Equus Energy, LLC (&ldquo;Equus Energy&rdquo;),
as a wholly-owned subsidiary of the Fund, to make investments in companies in the energy sector, with particular emphasis on income-producing
oil &amp; gas properties. In December 2011, we contributed $250,000 to the capital of Equus Energy.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The following table includes significant
investment activity during the year ended December&nbsp;31, 2011 (in thousands):</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Investment Activity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">New Investments</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Existing Investments</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 1pt solid; vertical-align: bottom">Portfolio Company</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Cash</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Non-Cash</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Follow-On</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">PIK</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%">Orco Germany S.A</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">67</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,016</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,083</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Spectrum Management, LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">325</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">325</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Equus Energy, LLC</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">250</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">250</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">317</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3,016</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">325</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3,658</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt"><B><I>Year Ended December 31, 2010</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">During the year ended December 31,
2010, we received payment in full for the Trulite, Inc. promissory note, in the amount of $2.6 million, which included interest
income of $0.3 million, a distribution from Equus Media Development Company, LLC of $1.0 million, and repayment of the Nickent
Golf, Inc. receivership certificate in the amount of $0.1 million. We also received repayment of the $0.6 million bridge loan from
London Bridge Entertainment Partners, Ltd.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">During the year ended December&nbsp;31,
2010, the Fund had investment activity of $1.8 million in five portfolio companies, including $0.6 million in the form of accrued
interest and dividends received in the form of additional portfolio securities (PIK). </P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The following table includes significant investment activity during the year ended December&nbsp;31, 2010
(in thousands):</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Investment Activity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">New Investments</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Existing Investments</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; vertical-align: bottom; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">Cash</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">PIK</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">Follow-On</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">PIK</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">Total</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%">London Bridge Entertainment Partners Ltd</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">575</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">148</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">723</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Spectrum Management, LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">425</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">425</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>1848 Capital Partners LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">295</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">295</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Trulite, Inc.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Big Apple Entertainment Partners LLC</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">121</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">121</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 12pt; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,200</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">564</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,764</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On October&nbsp;1, 2010, the Fund invested
$0.2 million in Spectrum Management, LLC, (&rdquo;Spectrum&rdquo;) as a follow-on investment in the form of a $0.8 million, 16%
promissory note facility. The note was funded to assist Spectrum in meeting immediate working capital requirements and matures
on May&nbsp;28, 2011. On November 1, 2010, the Fund invested $0.2 million in Spectrum as a follow-on investment under the $0.8
million 16% promissory note facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On July&nbsp;1, 2010, the Fund invested
$0.6 million in London Bridge Entertainment Partners Ltd (&ldquo;London Bridge&rdquo;) as a follow-on investment in the form of
an 18% promissory note. The note was funded to assist London Bridge in meeting immediate working capital requirements. The $0.6
million note was senior to other debt and equity in liquidation preference,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0pt">restricted the company from incurring
any debt senior or equal in liquidation preference, prohibited payment to subordinated debt and equity, and was personally guaranteed
by the individuals who control the management of the company. The note was paid in full on October 1, 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On January 12, 2010, the Fund invested
$0.2 million in Trulite, Inc. as a follow-on investment in the form of an 18% promissory note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31, 2009
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">During the year ended December&nbsp;31,
2009, we had investment activity of $2.3 million in seven portfolio companies, including $1.1 million in the form of accrued interest
and dividends received in the form of additional portfolio securities (PIK).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The following table includes significant investment
activity during the year ended December&nbsp;31, 2009 (in thousands):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Investment Activity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">New Investments</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Existing Investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid; vertical-align: bottom">Portfolio Company</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Cash</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">PIK</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Follow-On</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">PIK</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: left; vertical-align: bottom">Trulite, Inc.</TD><TD STYLE="width: 2%; font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">300</TD><TD STYLE="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">307</TD><TD STYLE="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">607</TD><TD STYLE="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0">1848 Capital Partners LLC</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">453</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">453</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0">Riptide Entertainment, LLC</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">450</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">450</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0">Nickent Golf, Inc</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">370</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">370</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0">London Bridge Entertainment Partners Ltd</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">208</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">208</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0">Big Apple Entertainment Partners LLC</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">153</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">153</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; padding-left: 0">HealthSPAC, LLC</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">50</TD><TD STYLE="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">50</TD><TD STYLE="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">1,170</TD><TD STYLE="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">1,121</TD><TD STYLE="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">2,291</TD><TD STYLE="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On November&nbsp;5, 2009, we invested an additional
$0.3 million in Trulite, Inc., a renewable energy company, in the form of an 18% promissory note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On March&nbsp;25, 2009, we invested an
additional $0.4&nbsp;million as a follow-on investment in Riptide Entertainment, LLC in the form of an 8% promissory note. On November&nbsp;19,
2009, we made a follow-on investment in Riptide Entertainment, LLC of $0.1&nbsp;million for an 8% promissory note maturing in 2014.
The majority of these follow-on investments were expected to fund the Ripley&rsquo;s Believe It or Not Museum franchise located
in London, UK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On February&nbsp;2, 2009, we made a follow-on
investment of $0.3 million in Nickent Golf, Inc. in the form of a 13% promissory note. We invested an additional $0.1 million in
2009, in the form of a receivership certificate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Realized Gains and Losses on Sales of Portfolio Securities </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31, 2011
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0; text-indent: 24.5pt">During 2011, we realized net capital
losses of $10.9 million, including the following significant transactions:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 1pt solid; vertical-align: bottom">Portfolio Company</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Type</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Realized Gain (Loss)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Riptide Entertainment, LLC</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">Entertainment and leisure</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">Control</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">(10,074</TD><TD STYLE="text-align: left">)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>London Bridge Entertainment Partners Ltd</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">Entertainment and leisure</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">Non-affiliate</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(992</TD><TD STYLE="text-align: left">)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>RP&amp;C International Investments LLC</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">Healthcare</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">Affiliate</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">138</TD><TD STYLE="text-align: left">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Various others</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom">(2</TD><TD STYLE="padding-bottom: 1pt">)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right; vertical-align: bottom">(10,930</TD><TD STYLE="padding-bottom: 2.5pt">)</TD>
    </TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31,
2010</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">During 2010, we realized no material
gains or losses on sales of portfolio securities.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31, 2009 </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">During 2009, we realized net capital
losses of $15.6 million, including the following significant transactions:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; border-bottom: Black 1pt solid">Portfolio Company</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Type</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Realized<BR> Loss</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -12pt; padding-left: 12pt">Nickent Golf, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom"><FONT STYLE="font-size: 10pt">Entertainment and leisure</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">Affiliate</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: right">(9,688</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -12pt; padding-left: 12pt">Creekstone Florida Holdings, LLC</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom"><FONT STYLE="font-size: 10pt">Real estate</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">Non-Affiliate</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: right">(4,000</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -12pt; padding-left: 12pt">Metic Group, PLC</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom"><FONT STYLE="font-size: 10pt">Commercial building products</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">Non-Affiliate</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: right">(1,000</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -12pt; padding-left: 12pt">HealthSPAC, LLC</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom"><FONT STYLE="font-size: 10pt">Healthcare</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">Control</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: right">(824</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt">Various others</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 4pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 4pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 4pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; vertical-align: bottom">(43</TD><TD STYLE="padding-bottom: 1pt">)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 4pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="font: 4pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font: 4pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 4pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt"></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; vertical-align: bottom">(15,555</TD><TD STYLE="padding-bottom: 2.5pt">)</TD>
    </TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.2pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.2pt"><B>Changes in Unrealized Appreciation/Depreciation of
Portfolio Securities </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31,
2011 </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0; text-indent: 24.5pt">During 2011, we recorded a net change
in unrealized depreciation of&nbsp;$9.9 million, to a net unrealized depreciation of $17.4 million. Such change in depreciation
resulted primarily from the following changes:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right; vertical-align: top">&nbsp; (i)</TD>
    <TD STYLE="width: 2%; font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="width: 93%; font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">Decline in fair market value of ConGlobal Industries Holding, Inc. (&ldquo;ConGlobal&rdquo;) of $2.6 million due to the decline in operating performance.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right; vertical-align: top">&nbsp;(ii)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Transfer of unrealized depreciation to realized depreciation
        for London Bridge Entertainment Partners, Ltd. (&ldquo;London Bridge&rdquo;) of $0.8 million due to the sale of the promissory
        note.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right; vertical-align: top">(iii)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Increase in the fair market value of Orco Germany S.A.
        (&ldquo;Orco Germany&rdquo;) bonds of $2.7 million due to the difference in the market price of Equus shares used as consideration
        for the bonds on the date of acquisition offset by the change in the Euro-USD exchange rate.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right; vertical-align: top">(iv)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">Increase in the fair market value of PalletOne, Inc. (&ldquo;PalletOne&rdquo;) of $0.1 million due to steady improvement in operating performance and indications of value from independent third parties.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right; vertical-align: top">&nbsp; (v)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">Transfer of unrealized depreciation to realized depreciation for Riptide Entertainment Partners, LLC. (&ldquo;Riptide&rdquo;) of $10.1 million due to the sale of the promissory notes and the winding up of the entity.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right; vertical-align: top">(vi)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">Transfer of unrealized appreciation to realized appreciation for RP&amp;C International Investments, LLC (&ldquo;RP&amp;C&rdquo;) of $0.1 million due to the maturity of the investment.</TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right; vertical-align: top">(vii)</TD>
    <TD STYLE="width: 2%; font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="width: 93%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Increase in fair market value of Sovereign Business Forms,
        Inc. (&ldquo;Sovereign&rdquo;) of $0.6 million as Sovereign has seen an upward trend in operating results and has continued to
        reduce its debt which has resulted in a corresponding increase its equity value.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; vertical-align: top">(viii)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Decrease in fair market value of Spectrum Management,
        Inc. (&ldquo;Spectrum&rdquo;) of $1.4 million due to the decline in operating performance and the maturity of its funded debts
        which remain in default.&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; vertical-align: top">&nbsp; (ix)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Decrease in the fair market value of Trulite, Inc. (&ldquo;Trulite&rdquo;)
        of $0.1 due to the lack of progress and inability to achieve sufficient funding with regards to its product development program.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31,
2010 </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">During 2010, we recorded an increase
in net unrealized depreciation of&nbsp;$12.1 million, to a net unrealized depreciation of $27.3 million. Such increase in depreciation
resulted primarily from the following changes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 10pt">(i)</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD><TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Increase in fair market value of ConGlobal
                                     of $0.2 million. ConGlobal&rsquo;s value reflects the general stability of business performance
                                     over last year.</FONT></TD></TR></TABLE>

<P STYLE="margin: 0">&nbsp;</P>

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<P STYLE="margin: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
                                                                     <TR STYLE="vertical-align: top">
<TD STYLE="text-align: right; vertical-align: top; width: 5%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD><TD STYLE="width: 93%">&nbsp;</TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 10pt">(ii)</FONT> </TD><TD STYLE="width: 2%">&nbsp;</TD><TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Decline in fair
                                                          market value of Equus Media Development Company, LLC (&ldquo;EMDC&rdquo;)
                                                          of $2.8 million. In June 2010, we received a distribution of $1.0&nbsp;million
                                                          from EMDC. Currently, EMDC holds $1.5 million in cash and has a remaining
                                                          funding commitment of $0.3 under our agreement with Kopleson Entertainment.
                                                          In addition, if Kopleson Entertainment generates $0.2 million of income
                                                          for EMDC, that event will trigger an additional $1.0 million funding
                                                          obligation of EMDC. EMDC has written down the fair value of our assets
                                                          to reflect the holding period of the projects held by EMDC.</FONT></TD></TR>                                                                                                                                      <TR STYLE="vertical-align: top">
<TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 10pt">(iii)</FONT></TD><TD STYLE="width: 2%"></TD><TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Decline
                                                                                                in fair market value of Infinia
                                                                                                Corporation of $1.5 million. Infinia
                                                                                                has informed us of its significant
                                                                                                capital and ongoing(ii)  liquidity
                                                                                                needs. Based on these factors,
                                                                                                the negative book value of equity,
                                                                                                our nominal equity holdings and
                                                                                                the future potential dilution
                                                                                                or possible restructuring of the
                                                                                                capital structure of the company,
                                                                                                we have written down the investment
                                                                                                to $0.</FONT></TD></TR>                                                                                                                       <TR STYLE="vertical-align: top">
<TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 10pt">(iv</FONT>)</TD><TD STYLE="width: 2%"></TD><TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Increase
                                                                                                                                       in
                                                                                                                                       fair
                                                                                                                                       market
                                                                                                                                       value
                                                                                                                                       of
                                                                                                                                       PalletOne
                                                                                                                                       of
                                                                                                                                       $0.1
                                                                                                                                       million.
                                                                                                                                       PalletOne
                                                                                                                                       has
                                                                                                                                       continued
                                                                                                                                       to
                                                                                                                                       generate
                                                                                                                                       cash
                                                                                                                                       flows
                                                                                                                                       which
                                                                                                                                       have
                                                                                                                                       reduced
                                                                                                                                       debt
                                                                                                                                       levels.
                                                                                                                                       We
                                                                                                                                       believe
                                                                                                                                       the
                                                                                                                                       performance
                                                                                                                                       of
                                                                                                                                       the
                                                                                                                                       company
                                                                                                                                       in
                                                                                                                                       recent
                                                                                                                                       years
                                                                                                                                       and
                                                                                                                                       its
                                                                                                                                       continued
                                                                                                                                       debt
                                                                                                                                       reduction
                                                                                                                                       initiatives
                                                                                                                                       has
                                                                                                                                       created
                                                                                                                                       a
                                                                                                                                       nominal
                                                                                                                                       increase
                                                                                                                                       in
                                                                                                                                       the
                                                                                                                                       value
                                                                                                                                       of
                                                                                                                                       our
                                                                                                                                       equity
                                                                                                                                       holdings.</FONT></TD></TR>                                                                                                                                                                 <TR STYLE="vertical-align: top">
<TD STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 10pt">(v)</FONT></TD><TD STYLE="width: 2%"></TD><TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Decrease
                                                                                                                                      in
                                                                                                                                      fair
                                                                                                                                      market
                                                                                                                                      value
                                                                                                                                      of
                                                                                                                                      Sovereign
                                                                                                                                      of
                                                                                                                                      $0.4
                                                                                                                                      million.
                                                                                                                                      The
                                                                                                                                      value
                                                                                                                                      of
                                                                                                                                      Sovereign
                                                                                                                                      reflects
                                                                                                                                      a
                                                                                                                                      slight
                                                                                                                                      decline
                                                                                                                                      in
                                                                                                                                      business
                                                                                                                                      performance
                                                                                                                                      compared
                                                                                                                                      with
                                                                                                                                      last
                                                                                                                                      year.</FONT></TD></TR>                                  <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 10pt">(vi)</FONT></TD><TD STYLE="width: 2%"></TD><TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Decline
                                                                                               in fair market value of Spectrum
                                                                                               of $3.9 million.&nbsp;&nbsp; In
                                                                                               the fourth quarter, we loaned Spectrum
                                                                                               $0.4 million to meet its immediate
                                                                                               working capital needs.&nbsp; The
                                                                                               valuation reflects Spectrum&rsquo;s
                                                                                               operating results, market conditions
                                                                                               of its customer base, working capital
                                                                                               shortfall and near-term maturity
                                                                                               of the company&rsquo;s debt.</FONT></TD></TR>                                                                                                             <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 10pt">(vii)</FONT></TD><TD STYLE="width: 2%"></TD><TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Increase
                                                                                                in fair market value of Trulite
                                                                                                of $0.1 million. We hold approximately
                                                                                                nine million warrants in Trulite,
                                                                                                many with a nominal exercise price.
                                                                                                Based on Trulite&rsquo;s recent
                                                                                                equity raise, operating performance
                                                                                                and repayment of the Fund&rsquo;s
                                                                                                debt, the Fund determined the
                                                                                                warrants have increased in value.
                                                                                                We have valued these warrants
                                                                                                utilizing the Black-Sholes option
                                                                                                pricing model.</FONT></TD></TR>                        <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 10pt">(viii)</FONT></TD><TD STYLE="width: 2%"></TD><TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Subsequent to
                                                            year-end, we sold our promissory notes in 1848 Capital Partners, LLC
                                                            (&ldquo;1848&rdquo;), Big Apple Entertainment Partners, LLC (&ldquo;Big
                                                            Apple&rdquo;), and London Bridge Entertainment Partners, Ltd (&ldquo;London
                                                            Bridge&rdquo;) in a transaction which also combined all of the assets
                                                            of Riptide Entertainment Partners, LLC (&ldquo;Riptide&rdquo;).&nbsp;
                                                            All of these assets were sold to Capital Markets Acquisition Partners,
                                                            LLC (&ldquo;CMAP&rdquo;) for a combined price of $10 million, with
                                                            $9.8 million allocated to the promissory notes held by the Fund&nbsp;and
                                                            $0.2 million to Riptide. We were introduced to CMAP as the buyer of
                                                            these holdings in mid-January 2011. We allocated the proceeds to the
                                                            promissory notes resulting in a loss of approximately $0.9 million
                                                            at London Bridge.&nbsp; In addition, the monies provided to Riptide
                                                            were sufficient to satisfy its outstanding liabilities, resulting
                                                            in a value of $0.&nbsp; For the year, the changes in fair value for
                                                            each investment include an increase of $0.3 million of the 1848 note,
                                                            and increase of $0.2 million of the Big Apple note, a decline of $0.7
                                                            million of the London Bridge note and a decline of $3.2 million in
                                                            Riptide.</FONT></TD></TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31, 2009 </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">During
2009, we recorded an increase in net unrealized depreciation on investments of $12.2 million from a net unrealized depreciation
position of $3.0 million to a net unrealized depreciation position of $15.2 million. This increase in depreciation resulted primarily
from decreases in the estimated fair value of eight portfolio companies due to current market conditions and operations in 2009,
aggregating $27.4 million. The portfolio companies contributing to this change are Infinia Corporation, Riptide and Spectrum.
These decreases were partially offset by the transfer in net unrealized depreciation to net realized depreciation related to the
write-off of Creekstone Florida Holdings, LLC, Metic Solutions, Plc, and HealthSpac LLC. </FONT><FONT STYLE="font-size: 7.5pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0; text-indent: 0pt"><FONT STYLE="font-size: 7.5pt"></FONT><B>Portfolio
Securities </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During 2011, we made new investments
in Equus Energy, LLC and Orco Germany and made a follow-on investment in Spectrum. As of December&nbsp;31, 2011, we had active
investments in the following entities or portfolio companies:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>The Bradshaw Group, Inc.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Bradshaw Group, Inc. (&ldquo;Bradshaw&rdquo;) is a resource for large volume printer users to find cost
effective options for laser print equipment, service, parts and supplies. Our $1.8 million investment in Bradshaw consists of 576,828
shares of Class B preferred stock with a 12.25% paid in-kind dividend, 38,750 shares of Class C preferred stock with no dividend
rights, 788,649 shares of Class D preferred stock with a 15% paid in-kind stock dividend, 2,218,109 shares of Class E preferred
stock with an 8% paid in-kind stock dividend and 2,229,450 warrants to purchase common stock at a purchase price of $0.01 per share
which </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0pt">expire in May 2016. This package of investments represents a fully diluted
equity interest in Bradshaw of 18%.&nbsp;&nbsp;As of December 31, 2011, we valued this investment at $0.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>ConGlobal Industries Holding, Inc. and
Affiliates</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">ConGlobal Industries Holding, Inc. is a holding
company that owns ConGlobal International, Inc. (&ldquo;ConGlobal&rdquo;) an operator of 22 container repair and storage depots
located near shipping ports across the United States, Mexico, and Costa Rica, catering to major shipping, leasing, and freight
movement companies around the world. The company has national storage capacity of over 600 acres and its network of maintenance
depots currently handles over 6,500 containers per week and can accommodate 175,000 TEU's (twenty-foot equivalent unit). &nbsp;ConGlobal
is managed by Randy Hale, Mike Baldwin, and David Liebman, its Chairman, CEO, and CFO, respectively, as well as a team of managers
for terminal operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">ConGlobal has four major
business lines:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 63pt; text-indent: -0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt"><I> Depot Services</I> &ndash; The company stores and repairs shipping containers on site.&nbsp;&nbsp;ConGlobal
also charges a daily fee for storage of shipping containers and intermodal equipment and also charges a handling fee for the movement
of containers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 63pt; text-indent: -0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt"><I>Resale, Leasing and Aftermarket Services</I> &ndash; The company purchases used containers
from its customers, refurbishes and resells or leases the unit to companies with alternative storage, portable office, housing
or other specialized needs where a portable unit can be utilized.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -27pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 63pt; text-indent: -0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt"><I>Transportation Services</I> &ndash; The company repositions containers between terminals,
pick-up and delivery of loads, deliver purchased containers and a variety of other uses&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -27pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 63pt; text-indent: -0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt"><I>On-Dock Services</I> &ndash; The company has the ability to repair and service containers
on cargo ships.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">ConGlobal&rsquo;s customers are leasing and
shipping companies and the company&rsquo;s performance is sensitive to changes in shipping and the container fleet markets.&nbsp;&nbsp;Two
other influences on the industry are the U.S. dollar and bank lending.&nbsp;&nbsp;As the dollar weakens, more goods are exported
from the U.S. in containers and, as the dollar strengthens, the converse is also generally true.&nbsp;&nbsp;In addition, accessibility
of capital for container manufactures impacts the growth of new container construction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">ConGlobal competes on a local and
regional basis against a variety of companies.&nbsp;&nbsp;Transportation and storage companies need only have sufficient real
estate and minimal equipment to perform some of these services.&nbsp;&nbsp; We believe that none of ConGlobal&rsquo;s
competitors have comparable geographic diversity in North America, as most other container repair and storage companies have
no more than one to a few locations. </P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December 31, 2011, our investment in
ConGlobal consisted of 24,397,303 shares of common stock and a $6.0 million, 7% subordinated replacement promissory&nbsp;note due
in 2012.&nbsp;&nbsp;During the fourth quarter of 2010, the company instituted a partial share buyback in which the Fund did not
participate, increasing our fully-diluted equity interest from 32.2% to 34.2% during the quarter. As of December 31, 2011, we valued
our investment in ConGlobal at $5.7 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Equus Energy, LLC</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 24.5pt">We formed Equus Energy, LLC (&ldquo;Equus
Energy&rdquo;), as a wholly-owned subsidiary of the Fund, to make investments in companies in the energy sector, with particular
emphasis on income-producing oil &amp; gas properties. In December 2011, we contributed $250,000 to the capital of Equus Energy.
Equus Energy has not consummated any investments, but incurred organizational and consulting expenses in the amount of $14,000
as of December 31, 2011. We ultimately intend to raise private equity capital in a separate energy-oriented private limited partnership
fund, with Equus Energy serving as the manager and general partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Equus Media Development Company, LLC</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Equus Media Development Company, LLC (&ldquo;EMDC&rdquo;)
is a company engaged in the acquisition and development of creative properties with the purpose of developing the properties for
release in various entertainment mediums.&nbsp;&nbsp;We formed EMDC in 2007 as a wholly-owned subsidiary of the Fund in connection
with a management and development agreement with Kopelson Entertainment (&ldquo;KE&rdquo;).&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The concept of the business of EMDC is to
partner with creators, developers and producers of creative work, such as scripts, short stories or books, by providing capital
necessary to enhance the creative development and package the assets to companies, such as major and independent studios, to produce
and release.&nbsp;&nbsp; In December 2011, our agreement with KE expired and EMDC distributed $1 million to the Fund. As of December
31, 2011, we valued EMDC at $0.2 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Infinia Corporation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Infinia Corporation (&ldquo;Infinia&rdquo;),
based in Kennewick, WA, is a developer of a Stirling power system operating on concentrated solar energy for commercial and residential
users.&nbsp;Founded over 25&nbsp;years ago, Infinia is attempting to develop an early-stage solar technology - the Infinia Solar
System or ISS.&nbsp;&nbsp;The ISS is intended to produce 3.0kW per hour by capturing the sun on a solar dish and focusing the
reflection of the sun on a heater head that in turn runs the Stirling Engine.&nbsp;&nbsp;The Stirling Engine has been in existence
for a number of years and, we believe, is unique because it requires no fluids to operate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">In June 2007, we made an investment of $3.0
million in exchange for 666,667 Class&nbsp;A Preferred shares in Infinia Corporation, to further the company&rsquo;s sales and
product development programs and for company operations. In February 2008, we made a follow-on investment of $5.0 million in exchange
for 160,720 Class B Preferred shares. These shares were later converted to 115,180 shares of common stock. As of December 31, 2011,
we valued our investment in Infinia at $0.&nbsp; The decline in value was principally due to operational and commercialization
delays and a recapitalization related to Infinia&rsquo;s most recent fund raising efforts in which our holdings were substantially
diluted.&nbsp; Our ownership now represents 0.1% of the fully-diluted ownership of Infinia.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Orco Germany S.A.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Orco Germany S.A. (&ldquo;Orco Germany&rdquo;)
is a commercial and multi-family residential real estate holding company and developer based in Berlin, and is a controlled subsidiary
of Orco Property Group S.A., a commercial and mutli-family residential real estate holding company based in Paris (&ldquo;OPG&rdquo;).
On April 27, 2011, we announced that we had entered into two separate transactions involving the purchase of an aggregate of 11,408
Orco Germany 4% bonds due May 2012 (&ldquo;Bonds&rdquo;). The consideration provided to the selling bondholders consisted of an
aggregate of 1,700,000 newly issued shares of common stock of the Fund. These shares are unregistered under the Securities Act of 1933. We received 8,890 of the Bonds on April 27, 2011. On May 9, 2011, one of these agreements was amended and restated to
provide for an additional 45 days to deliver the remaining 2,518 of the Bonds in exchange for providing to the Fund approximately
$1.6 million in cash as security for such delivery. As the remaining Bonds were not delivered by the specified date, the cash
collateral became free and clear property of the Fund on June 23, 2011. On January 27, 2012, holders of greater than a two-thirds
majority of the total Bonds issued by Orco Germany approved a conversion of the Bonds into &ldquo;bonds convertible into shares&rdquo;
(Obligations Convertibles en Actions &ndash;&ldquo;OCA&rdquo;). The OCA are convertible into ordinary shares of OPG (&ldquo;OPG
Shares&rdquo;), and may also entitle the bondholders to receive cash, additional OPG Shares, or ordinary shares of Orco Germany.
As at December 31, 2011, we valued this investment at $5.7 million. <I>See &ldquo;Subsequent Events&rdquo; where we have included
additional information concerning the expected receipt of OPG Shares by the Fund.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>PalletOne, Inc.</I>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">PalletOne, Inc. (&ldquo;PalletOne&rdquo;) is
considered one of the largest wooden pallet manufacturer in the United States, operating 17 facilities in 11 states, with approximately
1,100 employees.&nbsp;The company manufactures and recycles a variety of pallets types as well as boxes.&nbsp;&nbsp;The company
also sells its by-products of mulch and scrap metal. PalletOne also owns and operates a major Florida-based wood treating plant.
PalletOne has a diverse customer base and competes with numerous other manufacturers on a regional basis.&nbsp;&nbsp;Its largest
pallet customers are agricultural and construction related companies including growers, grocery stores, and housing construction
companies.&nbsp;&nbsp;We believe PalletOne&rsquo;s numerous locations allows for a slight advantage in pursuing large corporate
accounts, as sales of pallets are typically regionalized to specific locations.&nbsp;&nbsp;In 2006, the company acquired a wood
treating operation.&nbsp;&nbsp;The wood treating facility, Sunbelt, sells treated wood to a variety of customers, the most significant
being Lowe&rsquo;s home improvement stores.&nbsp;&nbsp;Sunbelt has had a 20 year exclusive relationship with a large retail company
selling treated and pre-fabricated fences. The principals of PalletOne have significant pallet manufacturing experience as well
as the management team they have assembled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The pallet manufacturing industry is
mature and is experiencing continuing slow growth as the number of participants shrinks due to consolidation and
underutilized plants, which have been eliminated.&nbsp;&nbsp;We initially invested in PalletOne in October
2001.&nbsp;&nbsp;As of December 31, 2011, our investment in PalletOne consisted of 350,000 shares of common stock, which
represents a fully diluted equity interest of approximately 19% and we valued our interest in PalletOne at $0.15 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Sovereign Business Forms, Inc.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Sovereign Business Forms, Inc. (&ldquo;Sovereign&rdquo;)
was founded in 1996 to participate in the consolidation of the highly fragmented, wholesale business forms industry.&nbsp;&nbsp;Sovereign
believes it is one of the ten largest manufacturers and wholesalers of custom business forms in the United States, an industry
that is mature and highly competitive. Sovereign operates five manufacturing plants with a combined market reach covering much
of the central and eastern United States, Texas and Louisiana.&nbsp;Business forms are typically custom forms sold to distributors
which resell the forms to the end-users and include snap-out forms, continuous forms, laser cut sheets and sales/log books.&nbsp;&nbsp;Typical
uses of these forms include bank checks, insurance contracts, auto parts and healthcare form/label combinations, and are utilized
by banks, insurance companies, auto dealerships and healthcare companies.&nbsp;&nbsp;These types of products account for approximately
95% of the company&rsquo;s historical revenues. The principals of Sovereign have been with the company since inception in 1996
and have extensive experience in the industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Sovereign focuses its business on
&ldquo;short run&rdquo; forms which are less than 150,000 per order.&nbsp;&nbsp;Sovereign management estimates the average
order is $600, which equates to approximately 50,000 orders per year or 27 orders per day per location (six
locations).&nbsp;&nbsp;These jobs typically have a quick turnaround, less than 48 hours and allow SBF to focus its sales
efforts on service in a price-sensitive industry.&nbsp;&nbsp;Sovereign management also believes it is advantaged with
numerous locations and can manage work flow by shifting orders to facilities that have excess capacity and drop-shipping
directly to customers.&nbsp;&nbsp;There are few significant customers in the business with the top five customers accounting
for approximately 10% of historical revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="color: black">As of December 31,
2011, our investment in Sovereign consisted of a 12% subordinated promissory note in the principal amount of $2.4 million and 1,214,630
shares of common stock valued at $4.5 million. Our investment represents a fully diluted equity interest in Sovereign of 55.0%.&nbsp;&nbsp;As
of December 31, 2011, we valued our investment in Sovereign at $6.9 million.&nbsp; During the year, we received approximately $0.4
million in principal payments on our promissory note. </FONT><I>See &ldquo;Subsequent Events&rdquo; where we received $0.07 million
in principal repayments.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B><I>Spectrum Management,
LLC</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Spectrum Management, LLC (&ldquo;Spectrum&rdquo;)
uses proprietary electronic tracking equipment and software, and a full suite of custom services to help client organizations,
mainly financial institutions, protect or recover high-value merchandise and cash.&nbsp;&nbsp;Spectrum markets its services under
the brand name Electronic Tracking Systems or ETS.&nbsp;&nbsp;The company specializes in assisting communities and law enforcement
in recovery of stolen property.&nbsp;&nbsp;Spectrum is managed by Jon Gergen, CEO, Jim Van Cleve, Chief Engineering Officer and
Barbara Kent, CFO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The most common use for the product, or
TracPac, is in branch offices of banks.&nbsp;&nbsp;When used in a bank, the product can be placed between two bills and
passed to a robber as a teller empties a drawer.&nbsp;&nbsp;In addition, law enforcement has begun to utilize the product for
stake outs in recovering stolen property as the product can be placed on or in property that may have a high likelihood of
being stolen. Once the robbery event has taken place and the TracPac is moved, the device is activated and begins to transmit
a radio signal.&nbsp;&nbsp;Law enforcement can then track the TracPac on pre-installed receivers mounted in various
vehicles.&nbsp;&nbsp;The company believes its product is the only product on the market that allows tracking of the
&ldquo;last mile&rdquo; (within 15-30 feet of the transmitter).&nbsp;&nbsp;Once law enforcement knows it is close to a
suspect, it can generally then utilize a handheld device to locate the individual in a building or small radius area.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The company leases its transmitters to banks
on a per unit basis and has relationships with a number of different banks from international commercial banks to community thrifts.&nbsp;&nbsp;Spectrum
has been impacted by the issues facing lending institutions as banks seek to reduce expenses and have slowed branch expansion.&nbsp;&nbsp;&nbsp;Spectrum
competes in the currency protection niche of the security industry, which includes home security, private security, identity theft,
airport security and many other segments.&nbsp;&nbsp; Currently there are over 75,000 bank branches in the US with an average of
five tellers per branch.&nbsp;&nbsp;In the currency protection segment there are a number of competitors providing services, the
company&rsquo;s direct competitor in the tracking business is 3SI Security Systems.&nbsp;&nbsp;Competing products include bullet
proof glass for teller windows, panic buttons, security personnel, exploding dye packs, ATM protection and safe protection.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December 31, 2011, our investment in
Spectrum consisted of 285,000 units of Class&nbsp;A Members&rsquo; interest and 16% subordinated promissory notes in the amount
of $2.1 million due May 2011.&nbsp;&nbsp;On September 30, 2010, we loaned Spectrum $0.4 million to meet its immediate working
capital needs. As of December 31, 2011, we valued our investment in Spectrum at $0.3 million, which represents a fully-diluted
equity interest of 81%. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in; color: #1F497D"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Trulite, Inc.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 24.5pt">Trulite, Inc. (&ldquo;Trulite&rdquo;)
is a developer of&nbsp;safe, clean, affordable, portable hybrid power generation products that are also user friendly. Trulite
utilizes fuel cells powered by water and hydrogen in portable and semi-portable products that can be used off-grid for applications
of up to one kilowatt, with ideal usage in the 150-500 watt range.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="color: black">During 2008 and
2009, we invested an aggregate of $2.0 million in the form of an unsecured promissory note maturing in January 2010, initially
bearing interest at 15% and thereafter increased to 18%.&nbsp;&nbsp;In connection with the investment, we also received warrants
to acquire 8.9 million shares of Trulite&rsquo;s common stock at exercise prices ranging from $0.01 to $0.38 per share.&nbsp;&nbsp;The
warrants expire in 2015.&nbsp;&nbsp;In June 2010, the note, together with all </FONT>interest as accrued, was repaid by Trulite.&nbsp;&nbsp;We
retained the Trulite warrants which we valued at $0 million as of <FONT STYLE="color: black">December 31</FONT>, 2011. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Off Balance Sheet Arrangements </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 4.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We have operating leases for office space
and office equipment.&nbsp; The lease for office space expires in 2014 with a one-time option to terminate the lease as of
the last day of the 36th month.&nbsp; The lease also contains a provision for certain annual rental escalations.&nbsp; Rent
expense inclusive of common area maintenance costs was $90.0 thousand for the year ended December 31, 2011 and $80.0
thousand for the years ended December 31, 2010 and 2009, respectively.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Future minimum lease payments under
the operating lease as of December 31, 2011 were as follows (in thousands):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 60%">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%; font: 10pt Times New Roman, Times, Serif">2012</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 18%; font: 10pt Times New Roman, Times, Serif; text-align: right">55</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">2013</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">56</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">2014</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">42</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">153</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Contractual Obligations </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December&nbsp;31, 2011, we had
no outstanding commitments to our portfolio company investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The Fund&rsquo;s Board terminated the
advisory agreement and the administrative agreement effective June&nbsp;30, 2009. The Fund is now &ldquo;internally&rdquo; managed.
This means we directly employs our management team and incurs the costs and expenses associated with Fund operations. There is
no outside investment advisory organization providing services to the Fund under a fee-based advisory agreement, or an administrative
organization charging the Fund for services rendered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Dividends</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On March&nbsp;24, 2009, we
announced a suspension of our managed distribution policy and payment of quarterly distributions for an indefinite period. We
will continue to pay out net investment income and/or realized capital gains, if any, on an annual basis as required under
the Investment Company Act of 1940.We declared one stock dividend in 2009 totaling $0.1075 per share. We paid $2,000 in cash
for fractional shares and issued 296,528 additional shares of stock in 2009. The 2009 dividend was 100% qualified and
classified as 21% of ordinary income and 79% as return of capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>Subsequent Events </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our Management performed an evaluation
of the Fund&rsquo;s activity through the date the financial statements were issued, noting the following subsequent events:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On January&nbsp;3, 2012, we sold U.S.
Treasury Bills for $6.0 million and repaid our year-end margin loan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On January 27, 2012, holders of greater
than a two-thirds majority of 148,077 4% bonds due May 2012 (the &ldquo;Bonds&rdquo;) issued by Orco Germany S.A. (&ldquo;Orco
Germany&rdquo;) approved a conversion of the Bonds into &ldquo;bonds convertible into shares&rdquo; (<I>Obligations Convertibles
en Actions</I> &ndash; &ldquo;OCA&rdquo;).&nbsp; The OCA will convert into an initial tranche of an aggregate of 19,250,000 ordinary
shares of Orco Property Group S.A. (&ldquo;OPG&rdquo;), the parent corporation of Orco Germany.&nbsp; The shares of OPG are traded
principally on the NYSE Euronext under the ISIN LU0122624777.&nbsp; OPG is a commercial and multi-family residential real estate
holding company and developer headquartered in Paris that owns a variety of hotels, office buildings, apartment complexes, condominiums,
and vacant land in Luxembourg, Poland, the Czech Republic, Slovakia, Croatia, Hungary, and Russia.&nbsp; As the Fund holds 8,890
Bonds, or 6% of the total Bonds issued, we would expect to receive approximately 1,155,700 OPG shares in this initial tranche.&nbsp;
As of the filing date of this Annual Report, we have not yet received these OPG shares, which are not tradable in any event until
April 12, 2012.&nbsp; Equus and the other Orco Germany bondholders (collectively, the &ldquo;Bondholders&rdquo;) are also entitled
to receive a second payment, the nature of which is dependent upon on OPG&rsquo;s ability to convert certain of its own bonds
into equity by April 12, 2012.&nbsp; If such OPG bonds are so converted, the Bondholders would receive an additional tranche of
7,996,158 OPG shares.&nbsp; Of this amount, we would expect the Fund to receive 6%, or 480,060 additional OPG shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0pt">If the OPG bonds are not converted,
OPG may elect to pay the Bondholders an aggregate of &euro;50.0 million in cash or, failing such election, the Bondholders would
receive, at their option, either: (i) the 7,996,158 additional OPG shares noted above, or (ii) 55% of the outstanding ordinary
shares of Orco Germany.&nbsp; Although uncertainty exists regarding the timing of receipt of the second tranche of consideration,
we believe the most likely scenario is for the Fund to receive the 480,060 additional OPG shares.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On January&nbsp;30, 2012, we received
$0.07 million in the form of partial principal repayment from Sovereign Business Forms, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_012"></A>Item 7A. <I>Quantitative and Qualitative Disclosures About Market
Risk </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We are subject to financial market
risks, including changes in interest rates with respect to investments in debt securities and outstanding debt payable, as well
as changes in marketable equity security prices. In the future, the Fund may invest in companies outside the United States, including
in Europe and Asia, which would give rise to exposure to foreign currency value fluctuations. We do not use derivative financial
instruments to mitigate any of these risks. The return on investments is generally not affected by foreign currency fluctuations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our investments in portfolio securities
consist of some fixed-rate debt securities. Since the debt securities are generally priced at a fixed rate, changes in interest
rates do not directly affect interest income. In addition, changes in market interest rates are not typically a significant factor
in the determination of fair value of these debt securities, since the securities are generally held to maturity. We determine
their fair values based on the terms of the relevant debt security and the financial condition of the issuer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">A major portion of our investment portfolio
consists of debt and equity investments in private companies. Modest changes in public market equity prices generally do not significantly
impact the estimated fair value of these investments. However, significant changes in market equity prices can have a longer-term
effect on valuations of private companies, which could affect the carrying value and the amount and timing of gains or losses realized
on these investments. A small portion of the investment portfolio also consists of common stocks in publicly traded companies.
These investments are directly exposed to equity price risk, in that a hypothetical ten percent change in these equity prices would
result in a similar percentage change in the fair value of these securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We are classified as a &ldquo;non-diversified&rdquo;
investment company under the Investment Company Act, which means we are not limited in the proportion of our assets that may be
invested in the securities of a single user. The value of one segment called Business Products and Services include one portfolio
company and was 18.8% of the net asset value and 37.4% of our investments in portfolio company securities (at fair value) as of
December&nbsp;31, 2011. Changes in business or industry trends or in the financial condition, results of operations, or the market&rsquo;s
assessment of any single portfolio company will affect the net asset value and the market price of our common stock to a greater
extent than would be the case if we were a &ldquo;diversified&rdquo; company holding numerous investments.</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><A NAME="a_013"></A><B>Item&nbsp;8. <I>Financial Statements and Supplementary Data </I></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.1pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.1pt"><B><A NAME="a_037"></A>Report
of Independent Registered Public Accounting Firm</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">To the
Board of Directors and</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">Stockholders
of Equus Total Return, Inc.:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">We have
audited the accompanying balance sheets of Equus Total Return, Inc. (a Delaware corporation), including the schedules of investments,
as of December 31, 2011 and 2010 and the related statements of operations, changes in net assets and cash flows for each of the
three years in the period ended December 31, 2011 and the selected per share data and ratios for each of the five years in the
period ended December&nbsp;31, 2011. These financial statements and selected per share data and ratios are the responsibility of
the management of Equus Total Return, Inc. Our responsibility is to express an opinion on these financial statements and selected
per share data and ratios based on our audits.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">We conducted
our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and selected per share
data and ratios are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements and selected per share data and ratios. Our procedures included verification by examination
or confirmation of securities held by the custodian as of December 31, 2011 or by other appropriate auditing procedures. An audit
also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">In our
opinion, the financial statements and selected per share data and ratios referred to above present fairly, in all material respects,
the financial position of Equus Total Return, Inc. as of December 31, 2011 and 2010 and the results of its operations and its cash
flows for each of the three years in the period ended December 31, 2011 and the selected per share data and ratios for each of
the five years in the period ended December 31, 2011, in conformity with accounting principles generally accepted in the United
States of America.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 20%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 100%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">/s/ UHY LLP</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">Houston, Texas</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">March&nbsp;16, 2012</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_014"></A><B>BALANCE SHEETS </B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2011</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2010</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">(in thousands, except per share amounts)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Assets</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Investments in portfolio securities at fair value:</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%">&nbsp;&nbsp;&nbsp;&nbsp;Control investments (cost at $23,353 and $34,231 respectively)</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 2%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">13,298</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">17,576</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Affiliate investments (cost at $350 and $923 respectively)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">762</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments (cost at $12,878 and $19,808 respectively)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,734</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9,324</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments in portfolio securities at fair value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,182</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,662</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,813</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,382</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Restricted cash and temporary cash investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,060</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,150</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Accounts receivable and other</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">91</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">273</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Accrued interest receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,155</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,724</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Deferred offering costs</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">263</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,301</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,454</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Liabilities and net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">114</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">345</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable to related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;Borrowing under margin account</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">15,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,153</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,403</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Commitments and contingencies</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">Net assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">38,148</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">38,051</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net assets consist of:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Common stock, par value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">9</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Capital in excess of par value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">64,292</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70,597</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Undistributed net investment losses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,755</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,255</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;Unrealized depreciation of portfolio securities, net</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(17,399</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(27,300</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">38,148</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">38,051</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Shares of common stock issued and outstanding, $.001 par value, 50,000 shares authorized</TD><TD STYLE="font-size: 11.5pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">10,562</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11.5pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">8,862</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">Shares of preferred stock issued and outstanding, $.001 par value, 5,000 shares authorized</TD><TD STYLE="font-size: 11.5pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11.5pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Net asset value per share</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3.61</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">4.29</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 112.5pt 0 0; text-align: center">The accompanying notes are an integral
part of these financial statements.</P>

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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->38<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_015"></A><B>STATEMENTS OF OPERATIONS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year Ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; vertical-align: bottom">(in thousands, except per share amounts)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2010</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2009</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Investment income:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Interest and dividend income:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control investments</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">209</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">848</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">1,644</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliate investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">52</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">295</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,992</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,032</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest and dividend income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">509</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,892</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,726</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;Interest from temporary cash investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">30</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">12</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">45</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">539</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,904</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,771</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Management fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">715</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Administration fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">225</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Compensation expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,286</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,358</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">497</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Professional fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,211</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,386</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,241</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Offering costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">428</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Director fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">393</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">357</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">473</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Settlement expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">320</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">207</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">157</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">130</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Mailing, printing and other expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">176</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">342</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">236</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">36</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">51</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,039</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,674</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,576</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net investment income (loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,500</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(770</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">195</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Net realized gain (loss):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Control investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10,074</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(824</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Affiliate investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">138</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,688</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(992</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;Temporary cash investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(7</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(43</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10,930</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15,555</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Net unrealized appreciation (depreciation) of portfolio securities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;End of period</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(17,399</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(27,300</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15,227</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;Beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(27,300</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(15,227</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(3,055</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Net change in unrealized depreciation of portfolio securities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9,901</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(12,073</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(12,172</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">Net decrease in net assets resulting from operations</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(4,529</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(12,850</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(27,532</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Net decrease in net assets resulting from operations per share:</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.45</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1.45</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(3.13</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Weighted average shares outstanding:</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">10,049</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">8,862</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">8,790</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 52.5pt 0 0; text-align: center">The accompanying notes are an integral
part of these financial statements.</P>

<!-- Field: Page; Sequence: 39 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->39<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_016"></A><B>STATEMENTS OF CHANGES IN NET ASSETS </B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year Ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left; vertical-align: bottom">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2010</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2009</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%">Net decrease in net assets resulting from operations</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(4,529</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(12,850</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 5%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 11pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 11pt; text-align: right">(27,532</TD><TD STYLE="width: 1%; font-size: 11pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Distributions to stockholders:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions from net investment income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(195</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return of capital distributions</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(726</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Net decrease in net assets resulting from stockholder distributions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(921</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Capital share transactions:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares issued in dividend</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">919</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares issued for portfolio securities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,626</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Net increase in net assets resulting from capital share transactions</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,626</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">919</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Increase (decrease) in net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">97</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,850</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(27,534</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Net assets at beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">38,051</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">50,901</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">78,435</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Net assets at end of period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">38,148</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">38,051</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">50,901</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 225pt 0 0; text-align: center">The accompanying notes are an integral
part of these financial statements.</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_018"></A>STATEMENTS OF CASH FLOWS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year Ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; vertical-align: bottom">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2010</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2009</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Reconciliation of net decrease in net assets resulting from operations to net cash provided by operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 50%">Net decrease in net assets resulting from operations</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(4,529</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(12,850</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(27,532</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities:</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Net realized loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,930</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,555</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized depreciation of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,901</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,073</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,172</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Decrease in deferred offering costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">428</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="height: 1pt">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Purchase of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(642</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,200</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,170</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Net proceeds from dispositions of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,730</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Principal payments received from portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">379</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,440</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">927</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Cash settlement of collateral</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,610</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Sales of temporary cash investments, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,090</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,142</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,077</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in accounts receivable and other</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">182</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(226</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(39</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease&nbsp; in accrued interest receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">569</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,083</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,077</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accounts payable and accrued</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(231</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">238</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(97</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accounts payable-related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(19</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;Decrease in due to advisor</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(455</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="height: 1pt">Net cash provided by operating activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,596</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,599</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,361</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="height: 1pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="height: 1pt">Cash flows from financing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Borrowings under margin account</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70,999</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">147,037</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Repayments under margin account</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(43,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(85,998</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(162,007</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Dividends paid</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;Deferred offering costs</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(165</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(263</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(9,165</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(15,262</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(14,972</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net increase (decrease) in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,431</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,337</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,611</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Cash and cash equivalents at beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">7,382</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,045</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,656</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Cash and cash equivalents at end of period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">16,813</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7,382</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">6,045</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="height: 1pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="height: 1pt">Non-cash operating and financing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Shares issued in lieu of cash for portfolio securities</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">4,626</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">919</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest or dividends exchanged for portfolio</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;securities</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">564</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,121</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="height: 1pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="height: 1pt">Supplemental disclosure of cash flow information:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Interest paid</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">6</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">56</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">56</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">14</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">38</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"></TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">8</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 37.5pt 0 0; text-align: center">The accompanying notes are an integral
part of these financial statements.</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_019"></A>SELECTED PER SHARE DATA AND RATIOS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="19" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2010</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2009</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2008</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2007</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%">Investment income</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.05</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.33</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.43</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.38</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.59</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.40</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.42</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.41</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.46</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.65</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Net investment income (loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.35</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.09</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.02</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.08</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.06</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net realized gain (loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.09</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.77</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.11</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.64</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Net change in unrealized depreciation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.99</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1.36</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1.38</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2.36</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.91</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net increase (decrease) in net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.45</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.45</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.13</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.33</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.49</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Capital transactions:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Distributions from net investment income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.02</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Return of capital distribution</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.09</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.39</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Distributions of realized gains</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.24</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.50</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Share repurchase</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.36</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Shares issued for portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.16</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Dilutive effect of shares issued</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(0.07</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(0.18</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(0.53</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(0.12</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Decrease in net assets resulting from capital transactions</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(0.23</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(0.29</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(0.80</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(0.62</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Net increase (decrease) in net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.68</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.45</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.42</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.13</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.87</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Net assets at beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4.29</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5.74</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9.16</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">12.29</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">11.42</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">Net assets at end of period, basic and diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3.61</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">4.29</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5.74</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">9.16</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">12.29</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Weighted average number of shares outstanding during period, in thousands</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,049</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,862</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,790</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,429</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,251</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Market price per share:</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning of period</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.50</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.20</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4.30</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">6.31</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8.54</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.24</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.50</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.20</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4.30</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">6.31</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Selected information and ratios:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends paid</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.11</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.63</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.50</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio of expenses to average net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.60</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.26</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.53</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.29</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.48</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio of net investment gain (loss) to</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;average net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9.19</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.73</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.30</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.79</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.53</TD><TD STYLE="text-align: left">%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 24px">Ratio of net increase (decrease) in net assets resulting from operations to average net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11.89</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(28.89</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(42.57</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(21.65</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12.49</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total return on market price (1)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10.40</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(21.88</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(23.08</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(21.84</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(20.26</TD><TD STYLE="text-align: left">%)</TD></TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="font-size: 7pt; color: black"><SUP>(1)</SUP></FONT><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;Total
return = [(ending market price per share + year-to-date dividends paid - beginning market price per share) / beginning market
price per share</FONT><FONT STYLE="font-size: 9pt">].</FONT><FONT STYLE="font-size: 7.5pt"> </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 150pt 0 0; text-align: center">The accompanying notes are an integral
part of these financial statements.</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_020"></A><B>SCHEDULE OF INVESTMENTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER&nbsp;31, 2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><I>(in thousands, except share data)</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 7.5pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; width: 25%"><FONT STYLE="font-size: 8pt">Name&nbsp;and&nbsp;Location&nbsp;of&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; width: 10%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: center; width: 12%"><FONT STYLE="font-size: 8pt">&nbsp;Date&nbsp;of&nbsp;Initial&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; width: 20%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; width: 10%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: center; width: 10%"><FONT STYLE="font-size: 8pt">Cost of</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: center; width: 10%"><FONT STYLE="font-size: 8pt">Fair</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-decoration: underline"><FONT STYLE="font-size: 8pt">Portfolio&nbsp;Company&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;Industry&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;Investment&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;Investment&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 8pt">Principal</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 8pt">Investment</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 8pt">Value(1)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="5" STYLE="font-weight: bold; font-style: italic; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: black 0.5pt solid; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">Control
    investments:&nbsp; Majority-owned <SUP>(5)</SUP>:&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font: bold 9pt Arial, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; font-size: 9pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-size: 9pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font: bold 9pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font: bold 9pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">Equus Energy, LLC <BR>
    Houston, TX&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">Energy&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">December 2011</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">Member interest (100%)&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 8pt">250&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 8pt">236&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">Equus Media Development Company, LLC<BR> Houston,
    TX&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">Media&nbsp;<BR>
    &nbsp;</FONT></TD>
    <TD STYLE="text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;January 2007&nbsp;<BR>
    &nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">Member interest (100%)&nbsp;<BR>
    &nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;<BR>
    &nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">3,000&nbsp;&nbsp;<BR>
    &nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">163&nbsp;&nbsp;<BR>
    &nbsp;</FONT></TD>
</TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 8pt">Sovereign Business Forms, Inc. <BR>
    Houston, TX&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">Business products and services&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;August 1996&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">1,214,630 shares of common stock (64.67% / 55.00% fully diluted)&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">5,080&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">4,488&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">12% subordinated promissory notes due <BR>
    5/13<SUP> (2)</SUP>&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">2,363&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; text-align: right"><FONT STYLE="font-size: 8pt">2,363&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; text-align: right"><FONT STYLE="font-size: 8pt">2,363&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">7,443&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">6,851&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 8pt">Spectrum Management, LLC<BR>
    Carrolton, TX&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">Business products and services&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;December&nbsp;1999&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">285,000 units of Class&nbsp;A member interest (92.1% / 82.5% fully diluted)&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">2,850&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">16% subordinated promissory notes due <BR>
    11/11<SUP> (3)(4)</SUP>&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">2,440&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; text-align: right"><FONT STYLE="font-size: 8pt">2,440&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; text-align: right"><FONT STYLE="font-size: 8pt">319&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;<BR>
    &nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;<BR>
    &nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;<BR>
    &nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">5,290&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">319&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; font-weight: bold; vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 8pt">Total
    Control investments: Majority-owned (represents 30.1% of total investments at fair value)&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: black 0.5pt solid; border-bottom: black 0.5pt solid; font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">15,983&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">7,569&nbsp;&nbsp;</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="border-bottom: Black 0.5pt solid; font-weight: bold; vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 8pt">Control
    Investments: Non-majority owned<SUP>(6)</SUP>:&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-weight: bold; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-weight: bold; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-weight: bold; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 8pt">ConGlobal Industries Holding, Inc.<BR>
    San Ramon, CA&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">Shipping products and services&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;February 1997&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">24,397,303 shares of common stock (34.2%)&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt">1,370&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">7% subordinated promissory note due 12/12<SUP>(3)</SUP>&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">6,000&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; text-align: right"><FONT STYLE="font-size: 8pt">6,000&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; text-align: right"><FONT STYLE="font-size: 8pt">5,729&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 2.5pt; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;<BR>
    &nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;<BR>
    &nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;<BR>
    &nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;<BR>
    &nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;<BR>
    &nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">7,370&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">5,729&nbsp;&nbsp;</FONT></TD>
</TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">Total Control Investments: Non-majority
    owned (represents 22.7% of total investments at fair value)&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">7,370&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-weight: bold; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt">5,729&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">Total
    Control Investments: (represents 52.8% of total investments at fair value)&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; border-top: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: black 0.5pt solid; border-bottom: black 0.5pt solid; font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-weight: bold; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt">23,353&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-weight: bold; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt">13,298&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">Affiliate Investments <SUP>(7)</SUP>:&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 8pt">PalletOne, Inc. <BR>
    Bartow, FL&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">Shipping products and services&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;October 2001&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">350,000&nbsp;shares&nbsp;of&nbsp;common stock (18.70%)&nbsp;</FONT></TD>
    <TD></TD>
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt">350&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt">150&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="border-bottom: black 0.5pt solid; font-size: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-size: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-size: 1pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-size: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-size: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-size: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-size: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-bottom: Black 0.5pt solid; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;Total
    Affiliate Investments (represents 0.6% of total investments at fair value)&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-size: 4pt; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-weight: bold; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt">350&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-weight: bold; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt">150&nbsp;&nbsp;</FONT></TD></TR>
</TABLE>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 18.35pt; text-align: center; text-indent: -18.35pt">The accompanying
notes are an integral part of these financial statements.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SCHEDULE OF INVESTMENTS
&ndash; (Continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER&nbsp;31, 2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><I>(in thousands, except share data)</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 7.5pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; width: 25%"><FONT STYLE="font-size: 8pt">Name&nbsp;and&nbsp;Location&nbsp;of</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; width: 10%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: center; width: 12%"><FONT STYLE="font-size: 8pt">Date&nbsp;of&nbsp;Initial</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; width: 20%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; width: 10%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: center; width: 10%"><FONT STYLE="font-size: 8pt">Cost of</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: center; width: 10%"><FONT STYLE="font-size: 8pt">Fair</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-decoration: underline"><FONT STYLE="font-size: 8pt">Portfolio&nbsp;Company</FONT></TD>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 8pt">Industry</FONT></TD>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 8pt">Investment</FONT></TD>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 8pt">Investment</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 8pt">Principal</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 8pt">Investment</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 8pt">Value(1)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="5" STYLE="font-weight: bold; font-style: italic; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-bottom: black 0.5pt solid; font-weight: bold"><FONT STYLE="font-size: 8pt">Non-Affiliate Investments
    (less than 5% owned):</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 8pt">The Bradshaw Group Richardson, TX</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">Business products and services</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">May 2000</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">576,828&nbsp;Class&nbsp;B&nbsp;shares&nbsp;(12.25%)&nbsp;preferred stock</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,795&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 4pt; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">38,750 Class C shares preferred stock</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">788,649 Class D shares 15% preferred stock</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">2,218,109 Class E shares 8% preferred stock</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 12pt; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; vertical-align: top; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 8pt">Warrant to buy 2,229,450 shares of common stock through 5/16</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: middle; text-align: right"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: middle; text-align: right"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; vertical-align: middle"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; border-top: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">1,795&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; border-top: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: windowtext 0.5pt solid"><FONT STYLE="font-size: 8pt">Infinia Corporation<BR>
    Kennewick, WA</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid"><FONT STYLE="font-size: 8pt">Alternative energy</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; text-align: center"><FONT STYLE="font-size: 8pt">June 2007</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid"><FONT STYLE="font-size: 8pt">115,180 shares common stock (0.13%)</FONT></TD>
    <TD STYLE="border-top: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; text-align: right"><FONT STYLE="font-size: 8pt">8,000&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; border-top: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="font-size: 4pt; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; vertical-align: top; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 8pt">Option to purchase 16,000 shares of common stock at $6.50 per
    share through 12/12</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; vertical-align: middle; text-align: right"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; vertical-align: middle; text-align: right"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-size: 4pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-size: 4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 8pt">8,000&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; text-align: right"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">Orco Germany S.A. <BR>
    Berlin, Germany</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">Real estate</FONT></TD>
    <TD STYLE="text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">April 2011</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">8,890 4% Corporate Bonds due 5/12</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">8,113&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">3,083&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">5,734&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">Trulite, Inc. <BR>
    Columbia, SC</FONT></TD>
    <TD STYLE="border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">Alternative energy</FONT></TD>
    <TD STYLE="text-align: center; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">August 2008</FONT></TD>
    <TD STYLE="border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">Warrants to buy 8,934,211 shares
    of common stock at $0.01 - $0.38 per share through 11/15</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font-weight: bold"><FONT STYLE="font-size: 8pt">Total
    Non-Affiliate Investments (represents 22.8% of total investments at fair value)</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: black 0.5pt solid; border-bottom: windowtext 0.5pt solid; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">12,878&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">5,734&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 0.5pt solid; font-weight: bold; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">Total
    Investment in Portfolio Securities</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-weight: bold; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-weight: bold; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-weight: bold; text-align: left; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-weight: bold; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt">36,581&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-weight: bold; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt">19,182&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">Temporary Cash Investments</FONT></TD>
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">U.S. Treasury Bill <SUP>(8)</SUP></FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">Government</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">December 2011</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">UST 0% due 3/12</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">6,000&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">6,000&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">6,000&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="4" STYLE="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; font-weight: bold"><FONT STYLE="font-size: 8pt">Total
    Temporary Cash Investments (represents 23.8% of total investments at fair value)</FONT></TD>
    <TD STYLE="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: black 0.5pt solid; border-bottom: windowtext 0.5pt solid; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">6,000&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">6,000&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-bottom: black 0.5pt solid; font-weight: bold; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">Total
    Investments</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-weight: bold; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-weight: bold; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-weight: bold; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font-weight: bold; text-align: left; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-weight: bold; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt">42,581&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-weight: bold; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt">25,182&nbsp;&nbsp;</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><SUP>&nbsp;</SUP></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 18.35pt"><SUP>(1)</SUP></TD>
    <TD>See Note 3 to the financial statements, Valuation
of Investments.</TD>
</TR>
</TABLE>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(2)</SUP></TD><TD>Income-producing.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(3)</SUP></TD><TD>Income on these securities is accrued to maturity.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(4)</SUP></TD><TD>Non-income producing.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(5)</SUP></TD><TD>Majority owned investments are generally defined under the Investment Company Act of 1940 as companies in which we own more
than 50% of the voting securities of the company.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(6)</SUP></TD><TD>Non-majority owned control investments are generally defined under the Investment Company Act of 1940 as companies in which
we own more than 25% but not more than 50% of the voting securities of the company.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(7)</SUP></TD><TD>Affiliate investments are generally defined under the Investment Company Act of 1940 as companies in which we own at least
5% but not more than 25% voting securities of the company.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(8)</SUP></TD><TD>The Fund has included U.S. Treasury Bills in &ldquo;Restricted Cash and Temporary Cash Investments&rdquo; on the balance sheet.</TD></TR></TABLE>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 18.35pt; text-indent: -18.35pt"><BR STYLE="mso-special-character: line-break">
<BR STYLE="mso-special-character: line-break">
</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 18.35pt; text-indent: -18.35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 18.35pt; text-align: center; text-indent: -18.35pt">The accompanying
notes are an integral part of these financial statements.</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 18.35pt; text-align: center; text-indent: -18.35pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt"><B>EQUUS TOTAL RETURN,
INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt"><B>SCHEDULE OF INVESTMENTS
&ndash; (Continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt"><B>DECEMBER 31, 2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt"><B><I>(in thousands, except
share data)</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Substantially all of our portfolio securities
are restricted from public sale without prior registration under the Securities Act of 1933. We negotiate certain aspects of the
method and timing of the disposition of our investment in each portfolio company, including registration rights and related costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As defined in the Investment Company
Act of 1940, all of our investments are in eligible portfolio companies. We provide significant managerial assistance to portfolio
companies that comprise 70.1% of the total value of the investments in portfolio securities as of December&nbsp;31, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our investments in portfolio securities
consist of the following types of securities as of December&nbsp;31, 2011 (in thousands):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Type of Securities</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Cost</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value as Percentage of Net Assets</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%">Secured and subordinated debt</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">13,886</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">14,145</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; text-align: right">37.1</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,800</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,638</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12.1</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Limited liability company investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,100</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">399</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Preferred stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 0.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 0.5pt solid">1,795</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 0.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 0.5pt solid">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt; border-bottom: Black 0.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 0.5pt solid">0.0</TD><TD STYLE="text-align: left; padding-bottom: 1pt">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center; padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">36,581</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">19,182</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">50.2</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">%</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Cash payments of interest are currently
being received and/or accrued on notes aggregating $13.8 million in fair value, while accrued interest has been impaired on notes
<FONT STYLE="color: black">receivable included in secured and subordinated debt with a fair value of $0.3 million.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The following is a summary by industry
of our investments in portfolio securities as of December&nbsp;31, 2011 (in thousands):</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Net Assets</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%">Business products and services</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; vertical-align: top">$</TD><TD STYLE="width: 12%; text-align: right">7,170</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">18.8</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Shipping products and services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,879</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15.4</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Real estate</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,734</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15.0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Energy</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">236</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.6</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Media</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 0.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 0.5pt solid">163</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt; border-bottom: Black 0.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 0.5pt solid">0.4</TD><TD STYLE="text-align: left; padding-bottom: 1pt">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; border-bottom: Black 2.5pt double">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; vertical-align: bottom">19,182</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">50.2</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">%</TD></TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">The accompanying notes are an integral part
of these financial statements.</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_021"></A>SCHEDULE OF INVESTMENTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER&nbsp;31, 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><I>(in thousands, except share data)</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 8pt times new roman; font-size: 10pt; font-family: times new roman">
<TR>
    <td align="left" valign="bottom" width="25%"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Name&#160;and&#160;Location&#160;of</B></FONT></div>
</td>
    <td valign="bottom" width="10%"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="10%"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Date&#160;of&#160;Initial</B></FONT></div>
</td>
    <td valign="bottom" width="19%"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="1%"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td colspan="2" valign="bottom" width="10%"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td colspan="2" valign="bottom" width="10%"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Cost
                                                of</B></FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td valign="bottom" width="1%"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td colspan="2" valign="bottom" width="10%"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Fair</B></FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
</TR>
<TR>
    <td align="left" valign="bottom" width="25%" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Portfolio&#160;Company</B></FONT></div>
</td>
    <td valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Industry</B></FONT></div>
</td>
    <td valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Investment</B></FONT></div>
</td>
    <td valign="bottom" width="19%" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Investment</B></FONT></div>
</td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; width: 10%; border-bottom: Black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Principal</B></FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Investment</B></FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Value(1)</B></FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
</TR>
<TR STYLE="background-color: white">
    <td align="left" colspan="2" valign="bottom" width="35%" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Control
                                                                                                    investments:&#160;&#160;Majority-owned
                                                                                                    (6):</B></FONT></div>
</td>
    <td valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="19%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <td align="left" valign="bottom" width="25%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Equus
                                                                   Media Development Company, LLC</FONT></div>
</td>
    <td align="left" valign="bottom" width="10%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Media</FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman">January
                                                      2007</FONT></div>
</td>
    <td align="left" valign="bottom" width="19%" bgcolor="#cceeff"><DIV><FONT STYLE="font: 8pt times new roman">Member interest
                                                                   (100%)</FONT></div>
</td>
    <td valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td colspan="2" valign="bottom" width="10%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">$</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">4,000</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">$</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">1,163</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <td align="left" valign="bottom" width="25%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Houston,
                                                                                                          TX</FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="19%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td colspan="2" valign="bottom" width="10%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <td align="left" valign="bottom" width="25%" bgcolor="white"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Riptide
                                                                 Entertainment, LLC (10)</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Miami,
                                                                                                FL</FONT></div>
</div>
</td>
    <td align="left" valign="bottom" width="10%" bgcolor="white"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Entertainment
                                                                 and leisure</FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="white"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman">December&#160;2005</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td align="left" valign="bottom" width="19%" bgcolor="white"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Member&#160;interest&#160;(64.67%)</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td valign="bottom" width="1%" bgcolor="white"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td colspan="2" valign="bottom" width="10%" bgcolor="white"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="white"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">65</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">-</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <td align="left" valign="bottom" width="25%"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td valign="bottom" width="10%"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="10%"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td align="left" valign="bottom" width="19%"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">8%
                                                 promissory notes due 9/14(5)</FONT></div>
</td>
    <td align="right" valign="bottom" width="1%"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">10,009</FONT></td>
    <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">10,009</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">-</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <TD STYLE="vertical-align: bottom; width: 25%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 10%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 10%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 19%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">10,074</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">-</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <td align="left" valign="bottom" width="25%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Sovereign
                                                                   Business Forms, Inc.</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Houston,
                                                                                                TX</FONT></div>
</div>
</td>
    <td align="left" valign="bottom" width="10%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Business
                                                                   products and services</FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman">August
                                                      1996</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td align="left" valign="bottom" width="19%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">1,214,630
                                                                   shares of common stock (64.66% / 55.00% fully diluted)</FONT></div>
</td>
    <td valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">5,080</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">3,894</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <td valign="bottom" width="25%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td align="left" valign="bottom" width="19%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">12%
                                                                   subordinated promissory notes due 5/13(2)</FONT></div>
</td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">2,742</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><div><FONT STYLE="font: 8pt times new roman">2,742</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><div><FONT STYLE="font: 8pt times new roman">2,742</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <TD STYLE="vertical-align: bottom; width: 25%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 10%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 10%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 19%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; text-align: left; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">7,822</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">6,636</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <td align="left" valign="bottom" width="25%" bgcolor="white"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Spectrum
                                                                 Management, LLC</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Carrollton,
                                                                                                TX</FONT></div>
</div>
</td>
    <td align="left" valign="bottom" width="10%" bgcolor="white"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Business
                                                                 products and services</FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="white"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman">December&#160;1999</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td align="left" valign="bottom" width="19%" bgcolor="white"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">285,000
                                                                 units of Class&#160;A member interest (81%)</FONT></div>
</td>
    <td valign="bottom" width="1%" bgcolor="white"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="white"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">2,850</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">-</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <td valign="bottom" width="25%" bgcolor="white" style="PADDING-BOTTOM: 2px"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="10%" bgcolor="white" style="PADDING-BOTTOM: 2px"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="10%" bgcolor="white" style="PADDING-BOTTOM: 2px"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td align="left" valign="bottom" width="19%" bgcolor="white" style="PADDING-BOTTOM: 2px"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">16%
                                                                                             subordinated promissory notes due
                                                                                             5/11(2)(3)</FONT></div>
</td>
    <td align="right" valign="bottom" width="1%" bgcolor="white" style="PADDING-BOTTOM: 2px"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="TEXT-ALIGN: right; PADDING-BOTTOM: 2px"><div><FONT STYLE="font: 8pt times new roman">2,115</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="white" style="PADDING-BOTTOM: 2px"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><div><FONT STYLE="font: 8pt times new roman">2,115</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left; padding-bottom: 2px"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; padding-bottom: 2px"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left; padding-bottom: 2px"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right; padding-bottom: 2px"><div><FONT STYLE="font: 8pt times new roman">1,422</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left; padding-bottom: 2px"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <TD STYLE="vertical-align: bottom; width: 25%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 10%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 10%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 19%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">4,965</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">1,422</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <TD COLSPAN="4" STYLE="text-align: left; vertical-align: bottom; width: 64%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Total
                                                                                                                                              Control
                                                                                                                                              investments:
                                                                                                                                              Majority-owned
                                                                                                                                              (represents
                                                                                                                                              21.6%
                                                                                                                                              of
                                                                                                                                              total
                                                                                                                                              investments
                                                                                                                                              at
                                                                                                                                              fair
                                                                                                                                              value)</B></FONT></div>
</td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>$</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman"><B>26,861</B></FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>$</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman"><B>9,221</B></FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom; width: 35%; background-color: white; border-bottom: Black 0.5pt solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Control
                                                                                                                                            Investments:
                                                                                                                                            Non-majority
                                                                                                                                            owned(7):</B></FONT></div>
</td>
    <TD STYLE="vertical-align: bottom; width: 10%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 19%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <td align="left" valign="bottom" width="25%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">ConGlobal
                                                                   Industries Holding, Inc.</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">San
                                                                                                Ramon, CA</FONT></div>
</div>
</td>
    <td align="left" valign="bottom" width="10%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Shipping
                                                                   products and services</FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman">February
                                                      1997</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td align="left" colspan="4" valign="bottom" width="30%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">24,397,303
                                                                               shares of common stock </FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">(34.2%)</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><div><FONT STYLE="font: 8pt times new roman">$</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">1,370</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><div><FONT STYLE="font: 8pt times new roman">$</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">2,355</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <td align="left" valign="bottom" width="25%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td align="left" valign="bottom" width="19%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">7%
                                                                   subordinated promissory note due 12/12(3)</FONT></div>
</td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">6,000</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><div><FONT STYLE="font: 8pt times new roman">6,000</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><div><FONT STYLE="font: 8pt times new roman">6,000</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: bottom; width: 25%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 10%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 10%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 19%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">7,370</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">8,355</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <TD COLSPAN="4" STYLE="text-align: left; vertical-align: bottom; width: 64%; background-color: white; border-bottom: Black 0.5pt solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Total
                                                                                                                                            Control
                                                                                                                                            Investments:
                                                                                                                                            Non-majority
                                                                                                                                            Owned
                                                                                                                                            (represents
                                                                                                                                            19.6%
                                                                                                                                            of
                                                                                                                                            total
                                                                                                                                            investments
                                                                                                                                            at
                                                                                                                                            fair
                                                                                                                                            value)</B></FONT></div>
</td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>$</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman"><B>7,370</B></FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>$</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman"><B>8,355</B></FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
</TR>
<TR STYLE="background-color: white">
    <TD COLSPAN="4" STYLE="text-align: left; vertical-align: bottom; width: 64%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Total
                                                                                                                                              Control
                                                                                                                                              Investments:
                                                                                                                                              (represents
                                                                                                                                              41.2%
                                                                                                                                              of
                                                                                                                                              total
                                                                                                                                              investments
                                                                                                                                              at
                                                                                                                                              fair
                                                                                                                                              value)</B></FONT></div>
</td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>$</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman"><B>34,231</B></FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>$</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman"><B>17,576</B></FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <TD STYLE="text-align: left; vertical-align: bottom; width: 25%; background-color: white; border-bottom: Black 0.5pt solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Affiliate
                                                                                                                                Investments(8):</B></FONT></div>
</td>
    <TD STYLE="vertical-align: bottom; width: 10%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 10%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 19%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <td align="left" valign="bottom" width="25%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">PalletOne,
                                                                   Inc.</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Bartow,
                                                                                                FL</FONT></div>
</div>
</td>
    <td align="left" valign="bottom" width="10%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Shipping
                                                                   products and services</FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman">October
                                                      2001</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td align="left" colspan="4" valign="bottom" width="30%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">350,000&#160;shares&#160;of&#160;common
                                                                               stock</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">&#160;(20%
/ 18.70% fully diluted)</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><div><FONT STYLE="font: 8pt times new roman">$</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">350</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><div><FONT STYLE="font: 8pt times new roman">$</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">50</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <TD STYLE="text-align: left; vertical-align: bottom; width: 25%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></div>
</td>
    <TD STYLE="vertical-align: bottom; width: 10%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 10%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 19%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <td align="left" valign="bottom" width="25%" bgcolor="white"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">RP&amp;C
                                                                 International Investments LLC</FONT></div>
</td>
    <td align="left" valign="bottom" width="10%" bgcolor="white"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Healthcare</FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="white"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman">September&#160;2006</FONT></div>
</td>
    <td align="left" valign="bottom" width="19%" bgcolor="white"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Member
                                                                 interest (17.24%)</FONT></div>
</td>
    <td valign="bottom" width="1%" bgcolor="white"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="white"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">573</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="white"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">712</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="white" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <TD STYLE="text-align: left; vertical-align: bottom; width: 25%; background-color: white; border-bottom: Black 0.5pt solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">New
                                                                                                                                York,
                                                                                                                                NY</FONT></div>
</td>
    <TD STYLE="vertical-align: bottom; width: 10%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 10%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 19%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; text-align: left; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: white; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: white; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <TD COLSPAN="3" STYLE="text-align: left; vertical-align: bottom; width: 45%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Total
                                                                                                                                              Affiliate
                                                                                                                                              Investments
                                                                                                                                              (represents
                                                                                                                                              1.8%
                                                                                                                                              of
                                                                                                                                              total
                                                                                                                                              investments
                                                                                                                                              at
                                                                                                                                              fair
                                                                                                                                              value)</B></FONT></div>
</td>
    <TD STYLE="vertical-align: bottom; width: 19%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>$</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman"><B>923</B></FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>$</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman"><B>762</B></FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; background-color: #cceeff; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 18.35pt; text-align: center; text-indent: -18.35pt">The accompanying
notes are an integral part of these financial statements.</P>

<!-- Field: Page; Sequence: 46 -->
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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SCHEDULE OF INVESTMENTS
&ndash; (Continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER&nbsp;31, 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><I>(in thousands, except share data)</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt times new roman; font-size: 10pt; font-family: times new roman">
<TR>
    <td align="left" valign="bottom" width="25%" style="BORDER-LEFT: black; BORDER-TOP: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Name&#160;and&#160;Location&#160;of</B></FONT></div>
</td>
    <td valign="bottom" width="10%" style="BORDER-TOP: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="10%" style="BORDER-TOP: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Date&#160;of&#160;Initial</B></FONT></div>
</td>
    <td valign="bottom" width="19%" style="BORDER-TOP: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="1%" style="BORDER-TOP: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td colspan="2" valign="bottom" width="10%" style="BORDER-TOP: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left; BORDER-TOP: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" style="BORDER-TOP: black 1px solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td colspan="2" valign="bottom" width="10%" style="BORDER-TOP: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Cost
                                                                                    of</B></FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left; BORDER-TOP: black 1px solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td valign="bottom" width="1%" style="BORDER-TOP: black 1px solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td colspan="2" valign="bottom" width="10%" style="BORDER-TOP: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Fair</B></FONT></div>
</td>
</TR>
<TR>
    <td align="left" valign="bottom" width="25%" style="BORDER-BOTTOM: black 1px solid; BORDER-LEFT: black"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Portfolio&#160;Company</B></FONT></div>
</td>
    <td valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Industry</B></FONT></div>
</td>
    <td valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Investment</B></FONT></div>
</td>
    <td valign="bottom" width="19%" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Investment</B></FONT></div>
</td>
    <TD STYLE="vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Principal</B></FONT></div>
</td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; width: 10%; border-bottom: Black 0.5pt solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Investment</B></FONT></div>
</td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; width: 10%; border-bottom: Black 0.5pt solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman"><B>Value(1)</B></FONT></div>
</td>
</TR>
<TR>
    <td align="left" colspan="2" valign="bottom" width="35%" style="BORDER-BOTTOM: black 1px solid; BORDER-LEFT: black"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Non-Affiliate
                                                                                                                        Investments
                                                                                                                        (less
                                                                                                                        than 5%
                                                                                                                        owned):</B></FONT></div>
</td>
    <td valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="19%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <td align="left" valign="bottom" width="25%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; BORDER-LEFT: black"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">1848
                                                                                                                              Capital
                                                                                                                              Partners
                                                                                                                              LLC
                                                                                                                              (10)</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Miami,
                                                                                                FL</FONT></div>
</div>
</td>
    <td align="left" valign="bottom" width="10%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Entertainment
                                                                                                          and leisure</FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman">January
                                                                                             2008</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td align="left" valign="bottom" width="19%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">18%
                                                                                                          promissory note due
                                                                                                          1/11(4)</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><div><FONT STYLE="font: 8pt times new roman">$</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">3,883</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><div><FONT STYLE="font: 8pt times new roman">$</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">3,883</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><div><FONT STYLE="font: 8pt times new roman">$</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">3,883</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
</TR>
<TR STYLE="background-color: #cceeff">
    <td align="left" valign="bottom" width="25%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; BORDER-LEFT: black"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Big
                                                                                                                            Apple
                                                                                                                            Entertainment
                                                                                                                            Partners
                                                                                                                            LLC
                                                                                                                            (10)</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">New
                                                                                                York, NY</FONT></div>
</div>
</td>
    <td align="left" valign="bottom" width="10%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Entertainment
                                                                                                        and leisure</FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman">October
                                                                                           2007</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td align="left" valign="bottom" width="19%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">18%
                                                                                                        promissory note due 10/10(4)</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td align="right" valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">3,275</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">3,275</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">3,275</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
</TR>
<TR STYLE="background-color: #cceeff">
    <td align="left" valign="bottom" width="25%" bgcolor="#cceeff" style="BORDER-LEFT: black"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Infinia
                                                                                              Corporation</FONT></div>
</td>
    <td align="left" valign="bottom" width="10%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Alternative
                                                                   energy</FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman">June
                                                      2007</FONT></div>
</td>
    <td align="left" colspan="4" valign="bottom" width="30%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">115,180
                                                                               shares common stock (0.63%)</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">8,000</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">-</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <td align="left" valign="bottom" width="25%" bgcolor="#cceeff" style="BORDER-LEFT: black"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Kennewick,
                                                                                              WA</FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="19%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <td valign="bottom" width="25%" bgcolor="#cceeff" style="BORDER-LEFT: black; PADDING-BOTTOM: 1px"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff" style="PADDING-BOTTOM: 1px"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff" style="PADDING-BOTTOM: 1px"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td align="left" colspan="4" valign="bottom" width="30%" bgcolor="#cceeff" style="PADDING-BOTTOM: 1px"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Option
                                                                                                           to purchase 16,000
                                                                                                           shares </FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">of
common stock at $6.50 per share </FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">through&#160;12/12</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left; PADDING-BOTTOM: 1px"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="PADDING-BOTTOM: 1px"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left; PADDING-BOTTOM: 1px"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">-</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">-</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
</TR>
<TR STYLE="background-color: white">
    <td valign="bottom" width="25%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; BORDER-LEFT: black"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="19%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">8,000</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">-</FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <td align="left" valign="bottom" width="25%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; BORDER-LEFT: black"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">London
                                                                                                                            Bridge
                                                                                                                            Entertainment
                                                                                                                            Partners
                                                                                                                            Ltd
                                                                                                                            (10)</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">London
                                                                                                UK</FONT></div>
</div>
</td>
    <td align="left" valign="bottom" width="10%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Entertainment
                                                                                                        and leisure</FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman">August
                                                                                           2008</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td align="left" valign="bottom" width="19%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">18%
                                                                                                        promissory notes due 8/11(4)</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td align="right" valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">2,855</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">2,855</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">2,026</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
</TR>
<TR STYLE="background-color: #cceeff">
    <td align="left" valign="bottom" width="25%" bgcolor="#cceeff" style="BORDER-LEFT: black"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">The
                                                                                              Bradshaw Group</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Richardson,
                                                                                                TX</FONT></div>
</div>
</td>
    <td align="left" valign="bottom" width="10%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Business
                                                                   products and services</FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman">May
                                                      2000</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td align="left" valign="bottom" width="19%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">576,828&#160;Class&#160;B&#160;shares&#160;12.25%</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">preferred&#160;stock</FONT></div>
</div>
</td>
    <td valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">1,795</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">-</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
</TR>
<TR STYLE="background-color: #cceeff">
    <td valign="bottom" width="25%" bgcolor="#cceeff" style="BORDER-LEFT: black"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td align="left" colspan="4" valign="bottom" width="30%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">38,750
                                                                               Class C shares preferred stock</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">-</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">-</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <td valign="bottom" width="25%" bgcolor="#cceeff" style="BORDER-LEFT: black"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td align="left" colspan="4" valign="bottom" width="30%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">788,649
                                                                               Class D shares 15% preferred stock</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">-</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">-</FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <td valign="bottom" width="25%" bgcolor="#cceeff" style="BORDER-LEFT: black"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td align="left" colspan="4" valign="bottom" width="30%" bgcolor="#cceeff"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">2,218,109
                                                                               Class E shares 8% preferred stock</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">-</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">-</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <td valign="bottom" width="25%" bgcolor="#cceeff" style="BORDER-LEFT: black; PADDING-BOTTOM: 1px"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff" style="PADDING-BOTTOM: 1px"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff" style="PADDING-BOTTOM: 1px"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td align="left" colspan="4" valign="bottom" width="30%" bgcolor="#cceeff" style="PADDING-BOTTOM: 1px"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Warrant
                                                                                                           to buy 2,229,450 shares
                                                                                                           of common </FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">stock
through&#160;5/16</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left; PADDING-BOTTOM: 1px"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="PADDING-BOTTOM: 1px"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left; PADDING-BOTTOM: 1px"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">-</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">-</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
</TR>
<TR STYLE="background-color: #cceeff">
    <td valign="bottom" width="25%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; BORDER-LEFT: black"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="19%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">1,795</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">-</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <td align="left" valign="bottom" width="25%" style="BORDER-BOTTOM: black 1px solid; BORDER-LEFT: black"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Trulite,
                                                                                                            Inc.</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Columbia,
                                                                                                SC</FONT></div>
</div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td align="left" valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Alternative
                                                                                        energy</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td valign="bottom" width="10%" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font: 8pt times new roman">August
                                                                           2008</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td align="left" valign="bottom" width="19%" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Warrants
                                                                                        to buy 8,934,211 shares of common stock
                                                                                        at $0.01 - $0.38 per share through&#160;11/15</FONT></div>
</td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">-</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">-</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
    <td nowrap valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><div><FONT STYLE="font: 8pt times new roman">140</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>

<div><FONT STYLE="font-size: 8pt">&#160;</FONT></div>
</td>
</TR>
<TR STYLE="background-color: white">
    <td align="left" colspan="4" valign="bottom" width="64%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; BORDER-LEFT: black"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Total
                                                                                                                                          Non-Affiliate
                                                                                                                                          Investments
                                                                                                                                          (represents
                                                                                                                                          21.9%
                                                                                                                                          of
                                                                                                                                          total
                                                                                                                                          investments
                                                                                                                                          at
                                                                                                                                          fair
                                                                                                                                          value)</B></FONT></div>
</td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman"><B>$</B></FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman"><B>19,808</B></FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman"><B>$</B></FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman"><B>9,324</B></FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <td align="left" valign="bottom" width="25%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; BORDER-LEFT: black"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Total
                                                                                                                            Portfolio
                                                                                                                            Securities</B></FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="10%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="19%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman"><B>$</B></FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman"><B>54,962</B></FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td valign="bottom" width="1%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman"><B>$</B></FONT></td>
    <td valign="bottom" width="9%" bgcolor="white" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman"><B>27,662</B></FONT></td>
</TR>
<TR STYLE="background-color: white">
    <td align="left" valign="bottom" width="25%" bgcolor="#cceeff" style="BORDER-LEFT: black"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Temporary
                                                                                              Cash Investments</B></FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="10%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="19%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160; </FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <td align="left" valign="bottom" width="25%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; BORDER-LEFT: black"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">U.S.
                                                                                                                              Treasury
                                                                                                                              Bills(9)</FONT></div>
</td>
    <td align="left" valign="bottom" width="10%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">Government</FONT></div>
</td>
    <td valign="bottom" width="10%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center"><div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><FONT STYLE="font: 8pt times new roman">December
                                                                                                                 2010</FONT></div>
</td>
    <td align="left" valign="bottom" width="19%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman">UST
                                                                                                          0% 1/11</FONT></div>
</td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">$</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">15,000</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">$</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">15,000</FONT></td>
    <td nowrap valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">$</FONT></td>
    <td valign="bottom" width="9%" bgcolor="#cceeff" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">15,000</FONT></td>
</TR>
<TR STYLE="background-color: white">
    <td align="left" colspan="4" valign="bottom" width="64%" style="BORDER-BOTTOM: black 1px solid; BORDER-LEFT: black"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Total
                                                                                                                        Temporary
                                                                                                                        Cash Investments
                                                                                                                        (represents
                                                                                                                        35.1%
                                                                                                                        of total
                                                                                                                        investments
                                                                                                                        at fair
                                                                                                                        value)</B></FONT></div>
</td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td nowrap valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <td align="right" valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman"><B>$</B></FONT></td>
    <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman"><B>15,000</B></FONT></td>
    <td nowrap valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td align="right" valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: left"><FONT STYLE="font: 8pt times new roman"><B>$</B></FONT></td>
    <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right"><FONT STYLE="font: 8pt times new roman"><B>15,000</B></FONT></td>
</TR>
<TR STYLE="background-color: #cceeff">
    <TD STYLE="text-align: left; vertical-align: bottom; width: 25%; border-bottom: Black 0.5pt solid"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 8pt times new roman"><B>Total
                                                                                                       Investments</B></FONT></div>
</td>
    <TD STYLE="vertical-align: bottom; width: 10%; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 10%; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 19%; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;
    </FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman">&#160;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>$</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman"><B>69,962</B></FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 8pt times new roman"><B>&#160;</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font: 8pt times new roman"><B>$</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 9%; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font: 8pt times new roman"><B>42,662</B></FONT></td>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><SUP>&nbsp;</SUP></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><SUP></SUP></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(1)</SUP></TD><TD>See Note 3 to the financial statements, Valuation
of Investments.</TD></TR>
</TABLE>
<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(2)</SUP></TD><TD>Income-producing.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(3)</SUP></TD><TD>Income on these securities is accrued to maturity.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(4)</SUP></TD><TD>Income on these securities is paid-in-kind by the issuance of additional securities, or through accretion of original issue
discount.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(5)</SUP></TD><TD>Non-income producing.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(6)</SUP></TD><TD>Majority owned investments are generally defined under the Investment Company Act of 1940 as companies in which we own more
than 50% of the voting securities of the company.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(7)</SUP></TD><TD>Non-majority owned control investments are generally defined under the Investment Company Act of 1940 as companies in which
we own more than 25% but not more than 50% of the voting securities of the company.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(8)</SUP></TD><TD>Affiliate investments are generally defined under the Investment Company Act of 1940 as companies in which we own at least
5% but not more than 25% voting securities of the company.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(9)</SUP></TD><TD>The Fund has included U.S. Treasury Bills in &ldquo;Restricted Cash and Temporary Cash Investments&rdquo; on the balance sheet.</TD></TR></TABLE>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 18.35pt; text-align: center; text-indent: -18.35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 18.35pt; text-align: center; text-indent: -18.35pt">The accompanying
notes are an integral part of these financial statements.</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 18.35pt; text-align: center; text-indent: -18.35pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt"><B>EQUUS TOTAL RETURN,
INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt"><B>SCHEDULE OF INVESTMENTS
&ndash; (Continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt"><B>DECEMBER 31, 2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt"><B><I>(in thousands, except
share data)</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Substantially all of our portfolio securities
are restricted from public sale without prior registration under the Securities Act of 1933. We negotiate certain aspects of the
method and timing of the disposition of our investment in each portfolio company, including registration rights and related costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As defined in the Investment Company
Act of 1940, all of our investments are in eligible portfolio companies. We provide significant managerial assistance to portfolio
companies that comprise 78.5% of the total value of the investments in portfolio securities as of December&nbsp;31, 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our investments in portfolio securities
consist of the following types of securities as of December&nbsp;31, 2010 (in thousands):</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Type of Securities</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Cost</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value as Percentage of Net Assets</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%">Secured and subordinated debt</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">30,879</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">19,348</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; text-align: right">50.8</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,800</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,299</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16.6</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Limited liability company investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,488</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,875</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.9</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Options and warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">140</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.4</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Preferred stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,795</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.0</TD><TD STYLE="padding-bottom: 1pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center; padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">54,962</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">27,662</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">72.7</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">%</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Three notes receivable included in secured
and subordinated debt with an estimated fair value of $9.2 million provide that all or a portion of interest is paid-in-kind, by
adding such amount to the principal of the notes. For the remainder of secured and subordinated debt, cash payments of interest
are currently being received and/or accrued on notes aggregating $10.1 million in fair value, while notes with a cost basis of
$10 million and a fair value of $0 are non-income producing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The following is a summary by industry
of our investments in portfolio securities as of December&nbsp;31, 2010 (in thousands):</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Arial, Helvetica, Sans-serif; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Fair Value as</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Arial, Helvetica, Sans-serif; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Percentage of</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Net Assets</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%">Entertainment and leisure</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">9,184</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">24.1</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Shipping products and services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,405</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22.1</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Business products and services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,058</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21.2</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Media</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,163</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.1</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Healthcare</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">712</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.8</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Alternative energy</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">140</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.4</TD><TD STYLE="padding-bottom: 1pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">27,662</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">72.7</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">%</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">The accompanying notes are an integral part
of these financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_022"></A><B>NOTES TO FINANCIAL STATEMENTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER 31, 2011, 2010 AND 2009</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><B>(1) ORGANIZATION AND BUSINESS PURPOSE </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Equus Total Return, Inc. (<FONT STYLE="color: black"><I>&ldquo;we,&rdquo;
&ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;Equus&rdquo; the &ldquo;Company&rdquo; and the &ldquo;Fund</I></FONT>&rdquo;), a Delaware
corporation, was formed by Equus Investments II, L.P. (the &ldquo;Partnership&rdquo;) on August&nbsp;16, 1991. On July&nbsp;1,
1992, the Partnership was reorganized and all of the assets and liabilities of the Partnership were transferred to the Fund in
exchange for shares of common stock of the Fund. Our shares trade on the New York Stock Exchange under the symbol EQS. On August
11, 2006, our shareholders approved the change of the Fund&rsquo;s investment strategy to a total return investment objective.
This new strategy seeks to provide the highest total return, consisting of capital appreciation and current income. In connection
with this strategic investment change, the shareholders also approved the change of name from Equus II Incorporated to Equus Total
Return, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We attempt to maximize the return to
stockholders in the form of current investment income and long-term capital gains by investing in the debt and equity securities
of companies with a total enterprise value of between $15.0 million and $75.0 million, although we may engage in transactions with
smaller or larger investee companies from time to time. We seek to invest primarily in companies pursuing growth either through
acquisition or organically, leveraged buyouts, management buyouts and recapitalizations of existing businesses or special situations.
Our income-producing investments consist principally of debt securities including subordinate debt, debt convertible into common
or preferred stock, or debt combined with warrants and common and preferred stock. <FONT STYLE="color: black">Debt and preferred
equity financing may also be used to create long-term capital appreciation through the exercise and sale of warrants received in
connection with the financing.&nbsp;&nbsp;&nbsp;</FONT>We seek to achieve capital appreciation by making investments in equity
and equity-oriented securities issued by privately-owned companies in transactions negotiated directly with such companies.<FONT STYLE="color: black">&nbsp;
Given market conditions over the past several years and the performance of our portfolio, our Management and board of directors
believe it prudent to continue to review alternatives to refine and further clarify the current strategies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We elected to be treated as a business
development company under the Investment Company Act of 1940 (&ldquo;1940 Act&rdquo;). We currently qualify as a regulated investment
company (&ldquo;RIC&rdquo;) for federal income tax purposes and, therefore, are not required to pay corporate income taxes on
any income or gains that we distribute to our stockholders. We have certain wholly owned taxable subsidiaries (&ldquo;Taxable
Subsidiaries&rdquo;) each of which holds one or more portfolio investments listed on our Schedules of Investments. The purpose
of these Taxable Subsidiaries is to permit us to hold portfolio companies organized as limited liability companies, or LLCs, (or
other forms of pass-through entities) and still satisfy the RIC tax requirement that at least 90% of our gross revenue for income
tax purposes must consist of investment income. Absent the Taxable Subsidiaries, a portion of the gross income of any LLC (or
other pass-through entity) portfolio investment would flow through directly to us for the 90% test. To the extent that such income
did not consist of investment income, it could jeopardize our ability to qualify as a RIC and, therefore, cause us to incur significant
federal income taxes. The income of the LLCs (or other pass-through entities) owned by Taxable Subsidiaries is taxed to the Taxable
Subsidiaries and does not flow through to us, thereby helping us preserve our RIC status and resultant tax advantages. We do not
consolidate the Taxable Subsidiaries for income tax purposes and they may generate income tax expense because of the Taxable Subsidiaries&rsquo;
ownership of the portfolio companies. We reflect any such income tax expense on our Statements of Operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>(2) LIQUIDITY AND FINANCING ARRANGEMENTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Liquidity and Revolving Line of
Credit</B>&mdash;There are several factors that may materially affect our liquidity during the reasonably foreseeable future. We
view this period as the twelve month period from the date of the financial statements in this Form 10-K, <I>i.e</I>., the period
through December 31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">We are
evaluating the impact of current market conditions on our portfolio company valuations and their ability to provide current income.
We have followed valuation techniques in a consistent manner; however, we are cognizant of current market conditions that might
affect future valuations of portfolio securities. We believe that our operating cash flow and cash on hand will be sufficient to
meet operating requirements and to finance routine expenditures through the next twelve months. </FONT><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As of December&nbsp;31, 2011, we had
cash and cash equivalents of $16.8 million. We had $19.2 million of our net assets of $38.1 million invested in portfolio securities.
We also had $6.1 million of restricted cash and temporary cash investments, including primarily the proceeds of a quarter-end margin
loan that we incurred to maintain the diversification requirements applicable to a RIC to maintain our pass-through tax treatment.
Of this amount, $6.0 million was invested in U.S. Treasury bills and $0.1 million represented a required 1% brokerage margin deposit.
These securities were held by a securities brokerage firm and pledged along with other assets to secure repayment of the margin
loan. The U.S.&nbsp;Treasury bills were sold on January&nbsp;3, 2012 and we subsequently repaid this margin deposit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As of December 31, 2010, we had cash and cash equivalents of
$7.4 million. We had $27.7 million of our net assets of $38.1 million invested in portfolio securities. We also had $15.2
million of restricted cash and temporary cash investments, including primarily the proceeds of a quarter-end margin loan
that we incurred to maintain the diversification requirements applicable to a RIC to maintain our pass-through tax treatment.
Of this amount, $15.0 million was invested in U.S. Treasury Bills for the purpose of satisfying the diversification
requirement to maintain our pass-through tax treatment. Restricted cash amounted to $0.2 million for the required 1%
brokerage deposit. These securities are held by a securities brokerage firm and are pledged along with cash to secure the
payment of the margin account balance. The U.S. Treasury bills were sold and the margin loan was repaid to the brokerage firm
on January 3, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As of December 31, 2011, we had no
outstanding commitments to our portfolio company investments. Under certain circumstances, we may be called on to make
follow-on investments in certain portfolio companies. If we do not have sufficient funds to make follow-on investments, the
portfolio company in need of the investment may be negatively impacted. Also, our equity interest in the estimated fair value
of the portfolio company could be reduced.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>RIC Borrowings and Temporary Cash
Investments</B>&mdash;During 2011 and 2010, we borrowed sufficient funds to maintain the Fund&rsquo;s RIC status by utilizing a
margin account with a securities brokerage firm. There is no assurance that such arrangement will be available in the future. If
we are unable to borrow funds to make qualifying investments, we may no longer qualify as a RIC. We would then be subject to corporate
income tax on the Fund&rsquo;s net investment income and realized capital gains, and distributions to stockholders would be subject
to income tax as ordinary dividends. Failure to continue to qualify as a RIC could be material to us and our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As of December 31, 2011, we borrowed
$6.0 million to make qualifying investments to maintain our RIC status by utilizing a margin account with a securities brokerage
firm. We collateralized such borrowings with restricted cash and temporary cash investments in U.S. Treasury bills of $6.1 million.
The U.S. Treasury bills were sold on January 3, 2011 and the total amount borrowed was repaid at that time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As of December 31, 2010, we borrowed
$15.0 million to make qualifying investments to maintain our RIC status by utilizing a margin account with a securities brokerage
firm. We collateralized such borrowings with restricted cash and temporary cash investments in U.S. Treasury bills of $15.2 million.
The U.S Treasury bills were sold on January&nbsp;3, 2011 and the total amount borrowed was repaid at that time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Economic Conditions</B>&mdash;Economic conditions
during 2011 and 2010 and market dislocations resulted in the availability of debt and equity capital declining significantly. Generally,
the limited amount of available debt financing has shorter maturities, higher interest rates and fees, and more restrictive terms
than debt facilities available in the past. In addition, during 2011 the price of our common stock continued to fall well below
our net asset value, thereby making it undesirable to issue additional shares of our common stock. Because of these challenges,
our near-term strategies shifted from originating debt and equity investments to preserving liquidity necessary to meet our operational
needs. Key initiatives that we undertook during 2010 and 2011 to provide necessary liquidity include monetizations, the suspension
of dividends and the internalization of management. Although there can be no assurances that such initiatives will be sufficient,
we believe we have sufficient liquidity to meet our 2012 operating requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>(3) SIGNIFICANT ACCOUNTING POLICIES </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial statements:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Use of Estimates</B>&mdash;The preparation
of financial statements in accordance with accounting principles generally accepted in the United States of America (&ldquo;GAAP&rdquo;) us
to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Although we believe
the estimates and assumptions used in preparing these financial statements and related notes are reasonable in light of known facts
and circumstances, actual results could differ from those estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Valuation of Investments</B>&mdash;Portfolio
investments are carried at fair value with the net change in unrealized appreciation or depreciation included in the determination
of net assets. Valuations of portfolio securities are performed in accordance with accounting principles generally accepted in
the United States of America and the financial reporting policies of the Securities and Exchange Commission (&ldquo;SEC&rdquo;).
The applicable methods prescribed by such principles and policies are described below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Publicly-traded portfolio securities</I>&mdash;Investments
in companies whose securities are publicly traded are generally valued at their quoted market price at the close of business on
the valuation date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 22.5pt 0 0; text-indent: 24pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Privately-held portfolio
securities</I>&mdash;The fair value of investments for which no market exists is determined on the basis of procedures
established in good faith by our Board of Directors. As a general principle, the current &ldquo;fair value&rdquo; of an
investment would be the amount we might reasonably expect to receive for it upon its current sale, in an orderly manner.
Appraisal valuations are necessarily subjective and the estimated values arrived at by the Fund may differ materially from
amounts actually received upon the disposition of portfolio securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">During the first twelve months
after an investment is made, the original investment value is utilized to determine the fair value unless significant developments
have occurred during this twelve month period which would indicate a material effect on the portfolio company (such as results
of operations or changes in general market conditions). After the twelve month period, or if material events have occurred within
the twelve month period, Fund management considers a two step process when appraising investments of privately held companies.
The first step involves determining the enterprise value of the portfolio company. During this step, Fund management considers
three different valuation approaches: a market approach, an income approach, and an asset approach. The particular facts and circumstances
of each portfolio company determine which approach, or combination of approaches, will be utilized. The second step when appraising
equity investments of privately held companies involves allocating value to the various debt and equity securities of the company.
Fund management allocates value to these securities based on their relative priorities. For equity securities such as warrants,
the Fund may also incorporate alternative methodologies including the Black-Scholes Option Pricing Model.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Market approach</B> &ndash;
The market approach typically employed by Fund management calculates the enterprise value of a company as&nbsp;a multiple of earnings
before interest, taxes, depreciation and amortization (&ldquo;EBITDA&rdquo;) generated by the company for the trailing twelve
month period.&nbsp; Adjustments to the company&rsquo;s EBITDA, including those for non-recurring items, may be considered. Multiples
are estimated based on current market conditions and past experience in the private company marketplace and are subjective in
nature. The Fund will apply liquidity and other discounts it deems appropriate to equity valuations where applicable. The Fund
may also use, when available, third-party transactions in a portfolio company&rsquo;s securities as the basis of valuation (the
&ldquo;private market method&rdquo;). The private market method will be used only with respect to completed transactions or firm
offers made by sophisticated, independent investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Income approach</B> &ndash;
The income approach typically utilized by Fund management calculates the enterprise value of a company utilizing a discounted
cash flow model incorporating projected future cash flows of the company.&nbsp; Projected future cash flows consider the historical
performance of the company as well as current and projected market participant performance. Discount rates are estimated based
on current market conditions and past experience in the private company marketplace and are subjective in nature. The Fund will
apply liquidity and other discounts it deems appropriate to equity valuations where applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Asset approach</B> &ndash;&nbsp;The
Fund considers the asset approach to determine the fair value of significantly deteriorated investments demonstrating circumstances
indicative of a liquidation analysis. This situation may arise when a portfolio company: 1) cannot generate adequate cash flow
to meet the principal and interest payments on its indebtedness; 2) is not successful in refinancing its debt upon&nbsp;maturity;
3) Fund management believes the credit quality of a loan has deteriorated due to changes in the business and underlying asset
or market conditions may result in the company&rsquo;s inability to meet future obligations; or 4) the portfolio company&rsquo;s
reorganization or bankruptcy. Consideration is also given as to whether a liquidation event would be orderly or forced.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Fund bases adjustments upon
such factors as the portfolio company&rsquo;s earnings, cash flow and net worth, the market prices for similar securities of comparable
companies, an assessment of the company&rsquo;s current and future financial prospects and various other factors and assumptions.
In the case of unsuccessful operations, the Fund may base a portfolio company&rsquo;s fair value upon the company&rsquo;s estimated
liquidation value. Fair valuations are necessarily subjective, and management&rsquo;s estimate of fair value may differ materially
from amounts actually received upon the disposition of its portfolio securities. Also, any failure by a portfolio company to achieve
its business plan or obtain and maintain its financing arrangements could result in increased volatility and result in a significant
and rapid change in its value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Fund management considers that
the Fund&rsquo;s general intent is to hold its loans to maturity when appraising its privately held debt investments. As such,
Fund management believes that the fair value will not exceed the cost of the investment. However, in addition to the previously
described analysis involving allocation of value to the debt instrument, the Fund performs a yield analysis to determine if a debt
security has been impaired. Certificates of deposit purchased by the Fund generally will be valued at their face value, plus interest
accrued to the date of valuation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Audit Committee of the Board of Directors may engage independent, third-party valuation firms to conduct
independent appraisals and review management&rsquo;s preliminary valuations of each privately-held investment in order to make
their own independent assessment. Any third-party valuation data would be considered as one of many factors in </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 22.5pt 0 0; text-indent: 24pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 22.5pt 0 0; text-indent: 0pt">a fair value determination.
The Audit Committee then would recommend the fair values for all privately-held securities based on all relevant factors to
the Board of Directors for final approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Because of the inherent uncertainty of the valuation of portfolio
securities which do not have readily ascertainable market values, amounting to $19.2 million and $27.7 million as of December
31, 2011 and 2010, respectively, our fair value determinations may materially differ from the values that would have been used
had a ready market existed for the securities. There were no publicly traded securities as of December 31, 2011 or 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On a daily basis, we adjust our
net asset value for the changes in the value of our publicly held securities, if applicable, and material changes in the value
of private securities, generally determined on a quarterly basis or as announced in a press release, and reports those amounts
to Lipper Analytical Services, Inc. Weekly and daily net asset values appear in various publications, including <I>Barron&rsquo;s
</I>and <I>The Wall Street Journal</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Deferred Offering Costs&mdash;</B>Accumulation
of costs related to the offering whereby we will sell additional shares or rights to acquire shares at a market price that may
have been below net asset value. The main components of the costs are legal fees and consultant&rsquo;s fees specifically related
to the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Offering costs of $0.4 million
were expensed at September 30, 2011, due to the delay in completing an offering to issue new shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Foreign Exchange</B>--We record
temporary changes in foreign exchange rates of portfolio securities denominated in foreign currencies as changes in fair value.
These changes are therefore reflected as unrealized gains or losses until realized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Investment Transactions</B>&mdash;Investment
transactions are recorded on the accrual method. Realized gains and losses on investments sold are computed on a specific identification
basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We classify our investments in
accordance with the requirements of the 1940 Act. Under the 1940 Act, &ldquo;Control Investments&rdquo; are defined as investments
in companies in which EQS owns more than 25% of the voting securities or maintains greater than 50% of the board representation.
Under the 1940 Act, &ldquo;Affiliate Investments&rdquo; are defined as those non-control investments in companies in which EQS
owns between 5% and 25% of the voting securities. Under the 1940 Act, &ldquo;Non-affiliate Investments&rdquo; are defined as investments
that are neither Control Investments nor Affiliate Investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Interest Income Recognition</B>&mdash;We
record interest income, adjusted for amortization of premium and accretion of discount, on an accrual basis to the extent that
we expect to collect such amounts. We accrete or amortizes discounts and premiums on securities purchased over the life of the
respective security using the effective yield method. The amortized cost of investments represents the original cost adjusted for
the accretion of discount and/or amortization of premium on debt securities. We stop accruing interest on investments when we determine
that interest is no longer collectible. We may also impair the accrued interest when we determine that all or a portion of the
current accrual is uncollectible. If the Fund receives any cash after determining that interest is no longer collectible, it treats
such cash as payment on the principal balance until the entire principal balance has been repaid, before it recognizes any additional
interest income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Payment in Kind Interest (PIK)</B>&mdash;We
have loans in our portfolio that may pay PIK interest. We add PIK interest, if any, computed at the contractual rate specified
in each loan agreement, to the principal balance of the loan and recorded as interest income. To maintain our status as a RIC,
we must pay out to stockholders this non-cash source of income in the form of dividends even if we have not yet collected any cash
in respect of such investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Cash Flows</B>&mdash;For purposes
of the Statements of Cash Flows, we consider all highly liquid temporary cash investments purchased with an original maturity of
three months or less to be cash equivalents. We include our investing activities within cash flows from operations. We exclude
&ldquo;Restricted Cash&nbsp;&amp; Temporary Cash Investments&rdquo; used for purposes of complying with RIC requirements from cash
equivalents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Income Taxes</B>&mdash;We intend
to comply with the requirements of the Internal Revenue Code necessary to qualify as a regulated investment company and, as such,
will not be subject to federal income taxes on otherwise taxable income (including net realized capital gains) which is distributed
to stockholders. Therefore, no provision for federal income taxes is recorded in the financial statements. We borrow money from
time to time to maintain our tax status under the Internal Revenue Code as a RIC. See Note 2 for further discussion of the Fund&rsquo;s
RIC borrowings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 22.5pt 0 0; text-indent: 24pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 22.5pt 0 0; text-indent: 24pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Texas margin tax applies to legal
entities conducting business in Texas. The margin tax is based on our Texas sourced taxable margin. The tax is calculated by applying
a tax rate to a base that considers both revenue and expenses and therefore has the characteristics of an income tax. As a result,
we did not owe state income tax for the years ended December 31, 2011, and December 31, 2010, respectively, and recorded $8
thousand in state income tax for the year ended December&nbsp;31, 2009, that is solely attributable to the Texas margin tax.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Fair Value Measurement</B>&mdash;Fair
value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. We have categorized all investments recorded at fair value based upon the
level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, directly related to the amount
of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0pt">Level 1&mdash;Inputs are unadjusted, quoted prices
in active markets for identical assets at the measurement date. The types of assets carried at Level 1 fair value generally are
equities listed in active markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0pt">Level 2&mdash;Inputs (other than quoted prices included
in Level 1) are either directly or indirectly observable for the asset in connection with market data at the measurement date and
for the extent of the instrument&rsquo;s anticipated life. Fair valued assets that are generally included in this category are
warrants held in a public company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0pt">Level 3&mdash;Inputs reflect management&rsquo;s best
estimate of what market participants would use in pricing the asset at the measurement date. It includes prices or valuations that
require inputs that are both significant to the fair value measurement and unobservable. Generally, assets carried at fair value
and included in this category are debt, warrants and/or other equity investments held in a private company. As previously described,
Fund management considers a two step process when appraising investments of privately held companies. The first step involves determining
the enterprise value of the portfolio company. During this step, Fund management considers three different valuation approaches:
a market approach, an income approach, and a cost approach. The particular facts and circumstances of each portfolio company determine
which approach, or combination of approaches, will be utilized. The second step when appraising equity investments of privately
held companies involves allocating value to the various debt and equity securities of the company. Fund management allocates value
to these securities based on their relative priorities. For equity securities such as warrants, the Fund may also incorporate alternative
methodologies including the Black-Scholes Option Pricing Model. Yield analysis is also employed to determine if a debt security
has been impaired.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We will record unrealized depreciation
on investments when we determine that the fair value of a security is less than its cost basis, and will record unrealized appreciation
when we determine that the fair value is greater than its cost basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As of December&nbsp;31, 2011, investments
measured at fair value on a recurring basis are categorized in the tables below based on the lowest level of significant input
to the valuations:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 9pt 0 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: normal 10pt Times New Roman, Times, Serif; font-variant: normal">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurements As of December 31, 2011</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-style: italic; text-align: left; border-bottom: Black 1pt solid"><B>(in thousands)</B></TD><TD STYLE="padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Total</B></FONT></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><B>Quoted Prices in Active Markets for Identical Assets (Level 1)</B></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"><B>Significant Other Observable
    Inputs (Level 2)</B></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center; border-bottom: Black 1pt solid"><B>Significant Unobservable Inputs
    (Level 3)</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Investments:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control investments</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">13,298</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 2%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 2%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">13,298</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliate investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,734</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,734</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Total investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,182</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,182</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporary cash investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Total investments and temporary cash investments</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">25,182</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">6,000</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; vertical-align: bottom">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">19,182</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"></P>

<!-- Field: Page; Sequence: 53 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->53<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The following table provides a reconciliation of fair value
changes during 2011 for all investments for which we determine fair value using significant unobservable (Level 3) inputs:&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair value measurements using significant unobservable inputs (Level 3)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; font-style: italic; text-align: left; border-bottom: Black 1pt solid; vertical-align: bottom">(in thousands)</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Control Investments</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Affiliate Investments</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Non-affiliate Investments</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%">Fair value as of December&nbsp;31, 2010</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">17,576</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">762</TD><TD STYLE="width: 1%; text-align: left"></TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">9,324</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">27,662</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total realized gains (losses)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10,074</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">138</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(992</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right">(10,928</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized appreciation depreciation)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,600</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(38</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,338</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,900</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuances</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">575</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,083</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,658</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlements</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,379</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(712</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(9,019</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(11,110</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Fair value as of December 31, 2011</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">13,298</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">150</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5,734</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">19,182</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December&nbsp;31, 2010, investments measured
at fair value on a recurring basis are categorized in the tables below based on the lowest level of significant input to the valuations:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurements As of December 31, 2010</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; font-style: italic; text-align: left; border-bottom: Black 1pt solid; vertical-align: bottom">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Quoted Prices in Active Markets for Identical Assets (Level 1)</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Significant Other Observable Inputs (Level 2)</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Significant Unobservable Inputs (Level 3)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Investments:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control investments</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">17,576</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">17,576</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliate investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">762</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">762</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9,324</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9,324</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Total Investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,662</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,662</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporary cash investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">15,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">15,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Total investments and temporary cash investments</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">42,662</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">15,000</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">27,662</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The following table provides a reconciliation
of fair value changes during 2010 for all investments for which we determine fair value using significant unobservable (Level 3)
inputs:&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair value measurements using significant unobservable inputs (Level 3)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; font-style: italic; text-align: left; border-bottom: Black 1pt solid; vertical-align: bottom">(in thousands)</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Control Investments</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Affiliate Investments</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Non-affiliate Investments</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%">Fair value as of December&nbsp;31, 2009</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">28,729</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">2,128</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">11,554</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">42,411</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized appreciation depreciation)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10,069</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(651</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,353</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,073</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuances</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">325</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,083</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,408</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,409</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(50</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,625</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,084</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in control</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(665</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">665</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Fair value as of December 31, 2010</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">17,576</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">762</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">9,324</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">27,662</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>(4) RELATED PARTY TRANSACTIONS AND AGREEMENTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">We entered into an investment
advisory agreement dated June&nbsp;30, 2005 with Moore Clayton Capital Advisors, Inc., pursuant to which Moore Clayton
Capital Advisors, Inc. (&ldquo;MCCA&rdquo;), provided investment advisory services in exchange for an advisory fee. We also
entered into an administration agreement dated June&nbsp;30, 2005 with Equus Capital Administration Company, Inc.
(&ldquo;ECAC&rdquo;), pursuant to which ECAC provided administrative services in exchange for an administrative fee. The
Fund&rsquo;s Board of Directors terminated the advisory agreement and the administrative agreement effective June&nbsp;30,
2009. Since that date, the Fund has been &ldquo;internally&rdquo; managed, which means that the Fund directly employs its
management team and incurs the costs and expenses associated with Fund operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Except as noted below, as compensation
for services to the Fund, each Independent Director receives an annual fee of $20,000 paid quarterly in arrears, a fee of
$2,000 for each meeting of the Board of Directors attended in person, a fee of $1,000 for participation in each telephonic
meeting of the Board and a fee of $1,000 for each committee meeting attended, and reimbursement of all out-of-pocket expenses
relating to attendance at such meetings. <FONT STYLE="color: black">A quarterly fee of $15,000 is paid to the Chairman of the
Audit Committee and a quarterly fee of $3,750 is paid to the Chairman of the Independent Directors. We may also pay other
one-time or recurring fees to members of our Board of Directors in special circumstances.</FONT> Neither Mr. Bertrand des
Pallieres, an Independent Director, nor any of our interested directors, receive annual fees for their service on the Board
of Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In June, 2010, the Fund ratified and
approved the use of A+ Filings, LLC (&ldquo;A+ Filings&rdquo;) to file its reports with the Securities and Exchange Commission.
Mr. Kenneth I. Denos, Secretary of the Fund, holds a majority of the voting shares of A+ Filings. The Fund incurred $14,000 and
$12,000 in services rendered by A+ Filings for the years ended December 31, 2011 and 2010, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On December 20, 2010, our board of directors
approved a consulting agreement (&quot;Consulting Agreement&quot;) with John A. Hardy, the Fund's Chief Executive Officer.&nbsp;
The Consulting Agreement provides for base compensation to Mr. Hardy of $200,000 per annum and an annual bonus based upon achievement
of certain criteria.&nbsp; The bonus is subject to an annual payout cap of $150,000, and any bonus earned that exceeds the payout
cap will be carried over into subsequent fiscal years.&nbsp; If the Consulting Agreement is terminated without cause, as defined
therein, Mr. Hardy will be entitled to receive one year's base consulting fee, together with all bonuses earned and unpaid and
unpaid up to the date of termination.&nbsp; Mr. Hardy is not entitled to participate in any employee-related benefits, including
health, life and disability plans, of the Fund.&nbsp; For the years ended December 31, 2011 and 2010, Mr. Hardy&rsquo;s compensation
totaled $350,000 and $266,662, respectively, each of which included a $150,000 bonus in accordance with this agreement.&nbsp; <FONT STYLE="color: black">Mr.
Hardy has permanently waived his right to $561,662 of earned but unpaid bonus under the Consulting Agreement for fiscal 2010 and
has further permanently waived his right to $735,562 of earned but unpaid bonus in connection with activities of the Fund for fiscal
2011.</FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On December 22, 2010, our board of directors
approved an employment agreement (&quot;Employment Agreement&quot;) with S. Jay Brown, the Fund's Chief Investment Officer.&nbsp;
The Employment Agreement, now terminated, provided for a base salary of $225,000 per annum and an annual bonus based upon achievement
of certain criteria.&nbsp; The bonus was subject to an annual cap of $50,000.&nbsp; The Employment Agreement also entitled Mr.
Brown to participate in various health and incentive compensation plans as and when adopted by the Fund, and further provided for
payment of base salary in the event that Mr. Brown's employment was terminated without cause or for good reason as defined therein.&nbsp;
In November 2011, in connection with his resignation as the Fund&rsquo;s Chief Investment Officer, Mr. Brown entered into a separation
agreement with the Fund which provided for a one-time payment of $80,000. For the years ended December 31, 2011 and 2010, Mr. Brown&rsquo;s
compensation, including accrued bonuses, totaled $320,000 and 235,000, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In 2010, payments to Versatile Systems
Inc. (&ldquo;Versatile Systems&rdquo;) and Versatile Acquisition Corporation amounted to $51,000 for reimbursements for proxy related
expenses incurred for the 2010 Annual Shareholder meeting. John A. Hardy, Chief Executive Officer of the Fund, Fraser Atkinson,
Director and Chairman of the Audit Committee, Alessandro Benedetti, Executive Chairman, and Bertrand des Pallieres, Director, are
all members of the board of directors of Versatile Systems. Messrs. Hardy and Atkinson are also the Chief Executive Officer and
Chief Financial Officer, respectively, of Versatile Systems.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In November, 2011, Equus Energy, LLC, a wholly-owned
subsidiary of the Fund, entered into a consulting agreement with Global Energy Associates, LLC (&ldquo;Global Energy&rdquo;) to
provide consulting services for energy related investments. Henry W. Hankinson, Director, is a managing partner and co-founder
of Global Energy. Payments to Global Energy totaled $12,500 as of December 31, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In respect of services provided to the
Fund by members of the Board not in connection with their roles and duties as directors, the Fund pays a rate of $250 per hour
for services rendered. In connection with services rendered by Kenneth I. Denos, Secretary and Chief Compliance Officer of the
Fund, the Fund incurred $257,000 as of December 31, 2011, which is included as compensation expense. In connection with services
rendered by Mr. Denos in 2010, the Fund incurred $128,000 which is included in compensation expense as of December 31, 2010 statement
of operations, and $87,000, which is included in deferred offering costs on the balance sheet of the Fund as of December 31, 2010.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0">(5) FEDERAL INCOME TAX MATTERS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We are required to make distributions
of any net taxable investment income on an annual basis, and may elect to distribute or retain net taxable realized capital gains.
The Internal Revenue Service approved our request, effective October&nbsp;31, 1998, to change our year-end for determining capital
gains for tax purposes from December&nbsp;31 to October&nbsp;31. </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">In 2009,
we distributed 100% of our ordinary income. We were not required to make distributions of ordinary income for 2010 or 2008 under
income tax regulations.</FONT> </P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">For the year ended December 31, 2011,
we have a net investment loss for book purposes of $3.5 million and $3.5 million for tax purposes. During 2011, we had a net capital
loss for book purposes of $10.9 million and a net capital loss for tax purposes of $10.9 million for tax purposes. The aggregate
cost of investments for federal income tax purposes as of December&nbsp;31, 2010 was $33.6 million. Such investments had unrealized
appreciation of approximately $2.7 million and unrealized depreciation of $20.1 million for book purposes, or net unrealized depreciation
of approximately $17.4 million. The Fund had unrealized appreciation of approximately $2.8 million and unrealized depreciation
of approximately $17.2 million for tax purposes, or net unrealized depreciation of approximately $14.4 million as of December&nbsp;31,
2010. As of December 31, 2011, we had approximately $26.5 million in capital loss carry forwards of which $15.6 million will expire
after 2017 and the remaining $10.9 million will expire after 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">For the year ended December 31, 2010,
we have a net investment loss for book purposes of $0.8 million and $0.8 million for tax purposes. During 2010, we had a net capital
loss for book purposes of $7.0 thousand and a net capital loss for tax purposes of $7.0 thousand for tax purposes. The aggregate
cost of investments for federal income tax purposes as of December&nbsp;31, 2010 was $51.9 million. Such investments had unrealized
appreciation of approximately $1.3 million and unrealized depreciation of $28.6 million for book purposes, or net unrealized depreciation
of approximately $27.3 million. The Fund had unrealized appreciation of approximately $1.4 million and unrealized depreciation
of approximately $25.7 million for tax purposes, or net unrealized depreciation of approximately $24.3 million as of December&nbsp;31,
2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In regards to the Return of Capital Statement of Position, during the three years ended December 31, 2011, we recorded a
reclassification for permanent book to tax differences of less than $1.0 thousand in each year. These differences were primarily
due to the tax exempt interest income received. These differences resulted in a net decrease in accumulated earnings. This reclassification
had no effect on net assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">For the year ended December&nbsp;31,
2009, we had a net investment gain for book purposes of approximately $0.2 million and $0.2 million for tax purposes. During 2009,
we had a net capital loss for book purposes of approximately $15.6 million and a net capital loss for tax purposes of $15.6 million.
The aggregate cost of investments for federal income tax purposes as of December&nbsp;31, 2009 was $54.6 million. Such investments
had unrealized appreciation of approximately $1.2 million and unrealized depreciation of $16.4 million for book purposes, or net
unrealized depreciation of approximately $15.2 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Fund had unrealized appreciation
of approximately $4.2 million and unrealized depreciation of approximately $16.4 million for tax purposes, or net unrealized depreciation
of approximately $12.2 million as of December&nbsp;31, 2009.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We are a flow through, non-tax paying
entity; further, our net operating loss carry forwards have been exhausted. Based upon an examination of our tax position, we determined
that the aggregate exposure for uncertain tax positions did not have a material impact on our financial statements as of December&nbsp;31,
2011 and December&nbsp;31, 2010. The uncertain tax position is measured at the largest amount of benefits/expense that is greater
than 50% likely of being realized upon ultimate settlement. We have not recorded an adjustment to our financial statements related
to uncertain tax positions. We will continue to evaluate our tax positions and recognize any future impact of uncertain tax positions
as a charge to income in the applicable period in accordance with the standard.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Fund&rsquo;s accounting policy related
to income tax penalties and interest assessments is to accrue for these costs and record a charge to expenses during the period
that the Fund takes an uncertain tax position through resolution with the taxing authorities or expiration of the applicable statute
of limitations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">All of the Fund&rsquo;s federal and state
income tax returns for 2008 through 2011 remain open to examination. We believe that there are no tax positions taken or expected
to be taken that would significantly increase or decrease unrecognized tax benefits within 12 months of the reporting date.</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>(6) CONTRACTUAL OBLIGATIONS </B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We have operating leases for office space
and office equipment.&nbsp; The lease for office space expires in 2014 with a one-time option to terminate the lease as of
the last day of the 36<SUP>th</SUP> month.&nbsp; The lease also contains a provision for certain annual rental escalations.
Rent expense inclusive of common area maintenance costs was $90.0 thousand for the year ended December 31, 2011 and $80.0
thousand for the years ended December 31, 2010 and 2009, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Future minimum lease payments under the operating
lease as of December 31, 2011 were as follows (in thousands):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 60%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%">2012</TD><TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 18%; text-align: right">55</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>2013</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">56</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">42</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt"></TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">153</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">As of December&nbsp;31, 2011 we had
no outstanding commitments to our portfolio company investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>(7) DIVIDENDS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On March&nbsp;24, 2009, the Fund announced
that it suspended its managed distribution policy and payment of quarterly distributions for an indefinite period. We will continue
to pay out net investment income and/or realized capital gains, if any, on an annual basis as required under the Investment Company
Act of 1940. We declared one stock dividend in 2009 totaling $0.1075 per share. We paid $2,000 in cash for fractional shares and
issued 296,528 additional shares of stock in 2009. The 2009 dividend was 100% qualified and classified as 21% of ordinary income
and 79% as return of capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>(8) PORTFOLIO SECURITIES </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 12pt"><B>2011 Portfolio Activity</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">During the year
ended December 31, 2011, <FONT STYLE="color: black">we received $0.4 million from Sovereign Business Forms, Inc. in the form of
principal payments and a distribution from Equus Media Development Company, LLC (&ldquo;EMDC&rdquo;) in the amount of $1.0 million.
We sold our promissory notes in 1848 Capital Partners, LLC (&ldquo;1848&rdquo;), Big Apple Entertainment Partners, LLC (&ldquo;Big
Apple&rdquo;), and London Bridge Entertainment Partners, Ltd (&ldquo;London Bridge&rdquo;) and certain assets of Riptide Entertainment
Partners, LLC (&ldquo;Riptide&rdquo;) in which we hold a 64.67% membership interest.&nbsp; All of these assets were sold to Capital
Markets Acquisition Partners, LLC for a combined price of $10 million, with $9.8 million allocated to the promissory notes held
by the Fund and $0.2 million to Riptide.&nbsp; The Fund allocated the proceeds to the promissory notes resulting in a realized
loss of approximately $0.9 million at London Bridge.&nbsp; In addition, the monies provided to Riptide were sufficient to satisfy
its outstanding liabilities, resulting in a value of $0.&nbsp;We also received $0.8 million in connection with the sale and redemption
of our membership interest in RP&amp;C International Investments LLC</FONT></FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">During the year ended December&nbsp;31,
2011, the Fund had investment activity of $3.7 million in three portfolio companies. <FONT STYLE="color: black">We made a follow-on
investment of $0.3 million in Spectrum Management, LLC. On April 27, 2011, we announced that we had entered into two separate transactions
involving the purchase of an aggregate of 11,408 4% bonds due May 2012 (&ldquo;Bonds&rdquo;) issued by Orco Germany S.A., a commercial
and multi-family residential real estate holding company and developer based in Berlin. The consideration provided to the selling
bondholders consisted of an aggregate of 1,700,000 newly issued shares of common stock of the Fund. These shares are unregistered
under the Securities Act of 1933. We received 8,890 of the Bonds on April 27, 2011. On May 9, 2011, one of these agreements was
amended and restated to provide for an additional 45 days to deliver 2,518 of the Bonds in exchange for providing to the Fund approximately
$1.6 million in cash as security for such delivery. As the remaining bonds were not delivered by the specified date, the cash collateral
became free and clear property of the Fund on June 23, 2011. On September 30, 2011, we formed Equus Energy, LLC (&ldquo;Equus Energy&rdquo;),
as a wholly-owned subsidiary of the Fund, to make investments in companies in the energy sector, with particular emphasis on income-producing
oil &amp; gas properties. In December 2011, we contributed $250,000 to the capital of Equus Energy.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><FONT STYLE="color: black"></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The following table includes significant investment
activity during the year ended December&nbsp;31, 2011 (in thousands):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4.5pt 0 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Investment Activity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">New Investments</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Existing Investments</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 1pt solid; vertical-align: bottom">Portfolio Company</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Cash</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Non-Cash</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Follow-On</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">PIK</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%">Orco Germany S.A</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">67</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,016</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,083</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Spectrum Management, LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">325</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">325</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Equus Energy, LLC</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">250</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">250</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">317</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3,016</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">325</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3,658</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4.5pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">During 2011, we realized net capital
losses of $10.9 million, including the following significant transactions (in thousands):</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0; text-indent: 24.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 1pt solid; vertical-align: bottom">Portfolio Company</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Type</TD>
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Realized Gain (Loss)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Riptide Entertainment, LLC</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">Entertainment and leisure</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">Control</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">$</TD><TD STYLE="text-align: right">(10,074</TD><TD STYLE="text-align: left">)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>London Bridge Entertainment Partners Ltd</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">Entertainment and leisure</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">Non-affiliate</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: right">(992</TD><TD STYLE="text-align: left">)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>RP&amp;C International Investments LLC</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">Healthcare</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">Affiliate</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: right">138</TD><TD STYLE="text-align: left">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Various others</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD><TD STYLE="text-align: left; vertical-align: bottom"></TD><TD STYLE="text-align: right; vertical-align: bottom">(2</TD><TD STYLE="padding-bottom: 1pt">)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"></TD>
    <TD>&nbsp;</TD><TD STYLE="text-align: left; border-bottom: Black 2.5pt double; border-top: Black 1pt solid; vertical-align: bottom">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; vertical-align: bottom; border-top: Black 1pt solid">(10,930</TD><TD STYLE="padding-bottom: 2.5pt">)</TD>
    </TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0; text-indent: 24.5pt">During 2011, we recorded a net
change in unrealized depreciation of&nbsp;$9.9 million, to a net unrealized depreciation of $17.4 million. Such change in
unrealized depreciation resulted primarily from the following changes:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right">(i)</TD>
    <TD STYLE="width: 2%; font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="width: 93%; font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">Decline in fair market value of ConGlobal Industries Holding, Inc. (&ldquo;ConGlobal&rdquo;) of $2.6 million due to the decline in operating performance.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right">(ii)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Transfer of unrealized depreciation to realized
depreciation for London Bridge Entertainment Partners, Ltd. (&ldquo;London Bridge&rdquo;) of $0.8 million due to the sale of the
promissory note.&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right">(iii)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Increase in the fair market value of Orco Germany S.A.
        (&ldquo;Orco&rdquo;) bonds of $2.7 million due to the difference in the market price of Equus shares used as consideration for
        the bonds on the date of acquisition offset by the change in Euro-USD exchange rate.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right">(iv)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">Increase in the fair market value of PalletOne, Inc. (&ldquo;PalletOne&rdquo;) of $0.1 million due to steady improvement in operating performance and indications of value from independent third parties .</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right">(v)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">Transfer of unrealized depreciation to realized depreciation for Riptide Entertainment Partners, LLC. (&ldquo;Riptide&rdquo;) of $10.1 million due to the sale of the promissory notes and the winding up of the entity.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right">(vi)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">Transfer of unrealized appreciation to realized appreciation for RP&amp;C International Investments, LLC (&ldquo;RP&amp;C&rdquo;) of $0.1 million due to the maturity of the investment.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt; text-align: right">(vii)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 12pt; padding-left: 4.4pt">Increase in fair market value of Sovereign Business Forms, Inc. (&ldquo;Sovereign&rdquo;) of $0.6 million as Sovereign has seen an upward trend in operating results and has continued to reduce its debt which has resulted in a corresponding increase its equity value.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(viii)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Decrease in fair market value of Spectrum Management,
        Inc. (&ldquo;Spectrum&rdquo;) of $1.4 million due to the decline in operating performance and the maturity of its funded debts
        which remain in default.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(ix)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 4.4pt">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Decrease in the fair market value of Trulite, Inc. (&ldquo;Trulite&rdquo;)
        of $0.1 due to the lack of progress and inability to achieve sufficient funding with regards to its product development program.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0"><B>2010 Portfolio Activity</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">During the year ended December 31,
2010, we received payment in full for the Trulite, Inc. promissory note, in the amount of $2.6 million, which included interest
income of $0.3 million, a distribution from Equus Media Development Company, LLC of $1.0 million, and repayment of the Nickent
Golf, Inc. receivership certificate in the amount of $0.1 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">We also received repayment of the $0.6
million bridge loan from London Bridge Entertainment Partners, Ltd.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">During the year ended December&nbsp;31,
2010, the Fund had investment activity of $1.8 million in five portfolio companies, including $0.6 million in the form of accrued
interest and dividends received in the form of additional portfolio securities (PIK).</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The following table includes significant
investment activity during the year ended December&nbsp;31, 2010 (in thousands):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"></P>

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<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Investment Activity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">New Investments</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Existing Investments</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; vertical-align: bottom; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">Cash</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">PIK</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">Follow-On</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">PIK</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">Total</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%">London Bridge Entertainment Partners Ltd</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">575</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">148</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">723</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Spectrum Management, LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">425</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">425</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>1848 Capital Partners LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">295</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">295</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Trulite, Inc.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Big Apple Entertainment Partners LLC</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">121</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">121</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,200</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">564</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,764</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"><B></B></P>

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</TABLE>
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<TR>
    </TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 22.5pt">During 2010, we realized no material
gains or losses on sales of portfolio securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">During 2010, we recorded an increase
in net unrealized depreciation of&nbsp;$12.1 million, to a net unrealized depreciation of $27.3 million. Such increase in unrealized
depreciation resulted primarily from the following changes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 10pt">(i)</FONT></TD><TD STYLE="width: 2%"></TD><TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Increase
                                                                                              in fair market value of ConGlobal
                                                                                              of $0.2 million. ConGlobal&rsquo;s
                                                                                              value reflects the general stability
                                                                                              of business performance over last
                                                                                              year.&nbsp;</FONT></TD></TR>                                           <TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 10pt">(ii)</FONT></TD><TD STYLE="width: 2%"></TD><TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Decline
                                                                                               in fair market value of EMDC of
                                                                                               $2.8 million. In June 2010, we
                                                                                               received a distribution of $1.0&nbsp;million
                                                                                               from EMDC. Currently, EMDC holds
                                                                                               $1.5 million in cash and has a
                                                                                               remaining funding commitment of
                                                                                               $0.3 under our agreement with Kopleson
                                                                                               Entertainment. In addition, if
                                                                                               Kopleson Entertainment generates
                                                                                               $0.2 million of income for EMDC,
                                                                                               that event will trigger an additional
                                                                                               $1.0 million funding obligation
                                                                                               of EMDC. EMDC has written down
                                                                                               the fair value of its assets to
                                                                                               reflect the holding period of the
                                                                                               projects held by EMDC.</FONT></TD></TR>                  <TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 10pt">(iii)</FONT></TD><TD STYLE="width: 2%"></TD><TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Decline
                                                                                                in fair market value of Infinia
                                                                                                of $1.5 million. Infinia has informed
                                                                                                us of its significant capital
                                                                                                and ongoing liquidity needs. Based
                                                                                                on these factors, the negative
                                                                                                book value of equity, our nominal
                                                                                                equity holdings and the future
                                                                                                potential dilution or possible
                                                                                                restructuring of the capital structure
                                                                                                of the company, we have written
                                                                                                down the investment to $0.</FONT></TD></TR>                                                                                                                       <TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 10pt">(iv)</FONT></TD><TD STYLE="width: 2%"></TD><TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Increase
                                                                                               in fair market value of PalletOne
                                                                                               of $0.1 million. PalletOne has
                                                                                               continued to generate cash flows
                                                                                               which have reduced debt levels.
                                                                                               We believe the performance of the
                                                                                               company in recent years and its
                                                                                               continued debt reduction initiatives
                                                                                               has created a nominal increase
                                                                                               in the value of our equity holdings.</FONT></TD></TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 10pt">(v)</FONT></TD><TD STYLE="width: 2%"></TD><TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Decrease
                                                                                              in fair market value of Sovereign
                                                                                              of $0.4 million. The value of Sovereign
                                                                                              reflects a slight decline in business
                                                                                              performance compared with last year.</FONT></TD></TR>                                  <TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 10pt">(vi)</FONT></TD><TD STYLE="width: 2%"></TD><TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Decline
                                                                                               in fair market value of Spectrum
                                                                                               Management, LLC of $3.9 million.&nbsp;&nbsp;
                                                                                               In the fourth quarter, we loaned
                                                                                               Spectrum $0.4 million to meet its
                                                                                               immediate working capital needs.&nbsp;
                                                                                               The valuation reflects Spectrum&rsquo;s
                                                                                               operating results, market conditions
                                                                                               of its customer base, working capital
                                                                                               shortfall and near-term maturity
                                                                                               of the company&rsquo;s debt.&nbsp;&nbsp;&nbsp;</FONT></TD></TR>                                                                                                                                          <TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 10pt">(vii)</FONT></TD><TD STYLE="width: 2%"></TD><TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Increase
                                                                                                in fair market value of Trulite
                                                                                                of $0.1 million. We hold approximately
                                                                                                nine million warrants in Trulite,
                                                                                                many with a nominal exercise price.
                                                                                                Based on Trulite&rsquo;s recent
                                                                                                equity raise, operating performance
                                                                                                and repayment of the Fund&rsquo;s
                                                                                                debt, the Fund determined the
                                                                                                warrants have increased in value.
                                                                                                We have valued these warrants
                                                                                                utilizing the Black-Sholes option
                                                                                                pricing model.</FONT></TD></TR>                        <TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 10pt">(viii)</FONT></TD><TD STYLE="width: 2%"></TD><TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Subsequent
                                                                                                                                         to
                                                                                                                                         year-end,
                                                                                                                                         we
                                                                                                                                         sold
                                                                                                                                         our
                                                                                                                                         promissory
                                                                                                                                         notes
                                                                                                                                         in
                                                                                                                                         1848
                                                                                                                                         Capital
                                                                                                                                         Partners,
                                                                                                                                         LLC
                                                                                                                                         (&ldquo;1848&rdquo;),
                                                                                                                                         Big
                                                                                                                                         Apple
                                                                                                                                         Entertainment
                                                                                                                                         Partners,
                                                                                                                                         LLC
                                                                                                                                         (&ldquo;Big
                                                                                                                                         Apple&rdquo;),
                                                                                                                                         and
                                                                                                                                         London
                                                                                                                                         Bridge
                                                                                                                                         Entertainment
                                                                                                                                         Partners,
                                                                                                                                         Ltd
                                                                                                                                         in
                                                                                                                                         a
                                                                                                                                         transaction
                                                                                                                                         which
                                                                                                                                         also
                                                                                                                                         combined
                                                                                                                                         all
                                                                                                                                         of
                                                                                                                                         the
                                                                                                                                         assets
                                                                                                                                         of
                                                                                                                                         Riptide
                                                                                                                                         Entertainment
                                                                                                                                         Partners,
                                                                                                                                         LLC
                                                                                                                                         (&ldquo;Riptide&rdquo;).&nbsp;
                                                                                                                                         All
                                                                                                                                         of
                                                                                                                                         these
                                                                                                                                         assets
                                                                                                                                         were
                                                                                                                                         sold
                                                                                                                                         to
                                                                                                                                         Capital
                                                                                                                                         Markets
                                                                                                                                         Acquisition
                                                                                                                                         Partners,
                                                                                                                                         LLC
                                                                                                                                         for
                                                                                                                                         a
                                                                                                                                         combined
                                                                                                                                         price
                                                                                                                                         of
                                                                                                                                         $10
                                                                                                                                         million,
                                                                                                                                         with
                                                                                                                                         $9.8
                                                                                                                                         million
                                                                                                                                         allocated
                                                                                                                                         to
                                                                                                                                         the
                                                                                                                                         promissory
                                                                                                                                         notes
                                                                                                                                         held
                                                                                                                                         by
                                                                                                                                         the
                                                                                                                                         Fund
                                                                                                                                         and
                                                                                                                                         $0.2
                                                                                                                                         million
                                                                                                                                         to
                                                                                                                                         Riptide.&nbsp;
                                                                                                                                         The
                                                                                                                                         Fund
                                                                                                                                         allocated
                                                                                                                                         the
                                                                                                                                         proceeds
                                                                                                                                         to
                                                                                                                                         the
                                                                                                                                         promissory
                                                                                                                                         notes
                                                                                                                                         resulting
                                                                                                                                         in
                                                                                                                                         a
                                                                                                                                         loss
                                                                                                                                         of
                                                                                                                                         approximately
                                                                                                                                         $0.9
                                                                                                                                         million
                                                                                                                                         at
                                                                                                                                         London
                                                                                                                                         Bridge.&nbsp;
                                                                                                                                         In
                                                                                                                                         addition,
                                                                                                                                         the
                                                                                                                                         monies
                                                                                                                                         provided
                                                                                                                                         to
                                                                                                                                         Riptide
                                                                                                                                         were
                                                                                                                                         sufficient
                                                                                                                                         to
                                                                                                                                         satisfy
                                                                                                                                         its
                                                                                                                                         outstanding
                                                                                                                                         liabilities,
                                                                                                                                         resulting
                                                                                                                                         in
                                                                                                                                         a
                                                                                                                                         value
                                                                                                                                         of
                                                                                                                                         $0.&nbsp;
                                                                                                                                         For
                                                                                                                                         the
                                                                                                                                         year,
                                                                                                                                         the
                                                                                                                                         changes
                                                                                                                                         in
                                                                                                                                         fair
                                                                                                                                         value
                                                                                                                                         for
                                                                                                                                         each
                                                                                                                                         investment
                                                                                                                                         include
                                                                                                                                         an
                                                                                                                                         increase
                                                                                                                                         of
                                                                                                                                         $0.3
                                                                                                                                         million
                                                                                                                                         of
                                                                                                                                         the
                                                                                                                                         1848
                                                                                                                                         note,
                                                                                                                                         and
                                                                                                                                         increase
                                                                                                                                         of
                                                                                                                                         $0.2
                                                                                                                                         million
                                                                                                                                         of
                                                                                                                                         the
                                                                                                                                         Big
                                                                                                                                         Apple
                                                                                                                                         note,
                                                                                                                                         a
                                                                                                                                         decline
                                                                                                                                         of
                                                                                                                                         $0.7
                                                                                                                                         million
                                                                                                                                         of
                                                                                                                                         the
                                                                                                                                         London
                                                                                                                                         Bridge
                                                                                                                                         note
                                                                                                                                         and
                                                                                                                                         a
                                                                                                                                         decline
                                                                                                                                         of
                                                                                                                                         $3.2
                                                                                                                                         million
                                                                                                                                         in
                                                                                                                                         Riptide.</FONT></TD></TR></TABLE>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 44pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0 44pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0"><B>2009 Portfolio Activity </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">During the twelve months ended December&nbsp;31,
2009, we had investment activity of $2.3 million in seven portfolio companies, including $1.1 million in the form of accrued interest
and dividends received in the form of additional portfolio securities (PIK).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The following table includes significant investment
activity during the year ended December&nbsp;31, 2009 (in thousands):</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Investment Activity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">New Investments</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Existing Investments</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 1pt solid; vertical-align: bottom">Portfolio Company</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Cash</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">PIK</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Follow-On</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">PIK</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Total</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%">Trulite, Inc.</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">300</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">307</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">607</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>1848 Capital Partners LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">453</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">453</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Riptide Entertainment, LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">450</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">450</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Nickent Golf, Inc</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">370</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">370</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>London Bridge Entertainment Partners Ltd</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">208</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">208</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Big Apple Entertainment Partners LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">153</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">153</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">HealthSPAC, LLC</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">50</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">50</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,170</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,121</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2,291</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">During 2009, we realized net capital losses
of $15.6 million, including the following significant transactions (in thousands):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 0.5pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD><TD STYLE="font: 0.5pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 0.5pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: 0.5pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 0.5pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left"><FONT STYLE="font-size: 10pt">Portfolio
    Company</FONT> <BR></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-left: 10pt; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 10pt">Industry
    <BR></FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 10pt">Type</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 10pt">Realized
                                                                                                                                                Loss</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-top: Black 1pt solid; font-size: 10pt; text-indent: -12pt; padding-left: 12pt">Nickent Golf, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; border-top: Black 1pt solid">Entertainment and leisure</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; border-top: Black 1pt solid">Affiliate</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; border-top: Black 1pt solid">$</TD><TD STYLE="font-size: 10pt; text-align: right; border-top: Black 1pt solid">(9,688</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -12pt; padding-left: 12pt">Creekstone Florida Holdings, LLC</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">Real estate</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">Non-Affiliate</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(4,000</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -12pt; padding-left: 12pt">Metic Group, PLC</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">Commercial building products</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">Non-Affiliate</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,000</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -12pt; padding-left: 12pt">HealthSPAC, LLC</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">Healthcare</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">Control</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(824</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt">Various others</TD>
    <TD>&nbsp;</TD><TD STYLE="font: 4pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 4pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 4pt Times New Roman, Times, Serif; text-align: right; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 4pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"></TD><TD STYLE="font-size: 10pt; text-align: right; vertical-align: bottom">(43</TD><TD STYLE="padding-bottom: 1pt">)</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 4pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; padding-left: 0.1in">&nbsp;</TD>
    <TD>&nbsp;</TD><TD STYLE="font: 4pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font: 4pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="font: 4pt Times New Roman, Times, Serif; text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 4pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt"></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; border-top: Black 1pt solid">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; vertical-align: bottom; border-top: Black 1pt solid">(15,555</TD><TD STYLE="padding-bottom: 2.5pt">)</TD>
    </TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During 2009, we recorded an increase in net
unrealized depreciation on investments of $12.2 million from a net unrealized depreciation position of $3.0 million to a net unrealized
depreciation position of $15.2 million. This increase in depreciation resulted primarily from decreases in estimated fair value
of eight of our portfolio companies aggregating $27.4 million. This change was primarily comprised of Infinia Corporation, Riptide
Entertainment, LLC and Spectrum Management LLC, based on current market conditions and operations in 2009. These decreases were
partially offset by the Fund&rsquo;s transfer in net unrealized depreciation to net realized depreciation related to the write-off
Creekstone Florida Holdings, LLC, Metic Solutions, Plc, and HealthSpac&nbsp;LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 4.5pt"><B>(9) RECENT ACCOUNTING PRONOUNCEMENTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In January 2010, the FASB issued changes to
disclosure requirements for fair value measurements. Specifically, the changes require a reporting entity to disclose, in the reconciliation
of fair value measurements using significant unobservable inputs (Level 3), separate information about purchases, sales, issuances,
and settlements (that is, on a gross basis rather than as one net number). These changes become effective for the Fund beginning
January&nbsp;1, 2011. Other than the additional disclosure requirements, the adoption of this standard did not have a material
effect on our financial position and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="color: black">In May 2011,
the FASB issued changes to disclosure requirements for fair value measurements which resulted in a consistent definition of
fair value and common requirements for measurement of and disclosure about fair value between GAAP and International
Financial Reporting Standards (&ldquo;IFRS&rdquo;). These changes become effective for interim and annual periods beginning after December 15,
2011. </FONT>We will adopt this standard beginning on January&nbsp;1, 2012.&nbsp;We do not anticipate that our implementation
of this standard will have a material impact on our process for measuring fair values, our financial position or our results
of operations.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>(10) SUBSEQUENT EVENTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our Management performed an evaluation
of the Fund&rsquo;s activity through the date the financial statements were issued, noting the following subsequent events:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On January&nbsp;3, 2012, we sold U.S.
Treasury Bills for $6.0 million and repaid our year-end margin loan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On January 27, 2012, holders of greater
than a two-thirds majority of 148,077 4% bonds due May 2012 (the &ldquo;Bonds&rdquo;) issued by Orco Germany S.A. (&ldquo;Orco
Germany&rdquo;) approved a conversion of the Bonds into &ldquo;bonds convertible into shares&rdquo; (<I>Obligations Convertibles
en Actions</I> &ndash; &ldquo;OCA&rdquo;).&nbsp; The OCA will convert into an initial tranche of an aggregate of 19,250,000 ordinary
shares of Orco Property Group S.A. (&ldquo;OPG&rdquo;), the parent corporation of Orco Germany.&nbsp; The shares of OPG are traded
principally on the NYSE Euronext under the ISIN LU0122624777.&nbsp; OPG is a commercial and multi-family residential real estate
holding company and developer headquartered in Paris that owns a variety of hotels, office buildings, apartment complexes, condominiums,
and vacant land in Luxembourg, Poland, the Czech Republic, Slovakia, Croatia, Hungary, and Russia.&nbsp; As the Fund holds 8,890
Bonds, or 6% of the total Bonds issued, we would expect to receive approximately 1,155,700 OPG shares in this initial tranche.&nbsp;
As of the filing date of this Annual Report, we have not yet received these OPG shares, which are not tradable in any event until
April 12, 2012.&nbsp; Equus and the other Orco Germany bondholders (collectively, the &ldquo;Bondholders&rdquo;) are also entitled
to receive a second payment, the nature of which is dependent upon on OPG&rsquo;s ability to convert certain of its own bonds
into equity by April 12, 2012.&nbsp; If such OPG bonds are so converted, the Bondholders would receive an additional tranche of
7,996,158 OPG shares.&nbsp; Of this amount, we would expect the Fund to receive 6%, or 480,060 additional OPG shares.&nbsp; If
the OPG bonds are not converted, OPG may elect to pay the Bondholders an aggregate of &euro;50.0 million in cash or, failing such
election, the Bondholders would receive, at their option, either: (i) the 7,996,158 additional OPG shares noted above, or (ii)
55% of the outstanding ordinary shares of Orco Germany.&nbsp; Although uncertainty exists regarding the timing of receipt of the
second tranche of consideration, we believe the most likely scenario is for the Fund to receive the 480,060 additional OPG shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On January&nbsp;31, 2012, we received
$0.07 million in the form of partial principal repayment from Sovereign Business Forms, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><B>(11) SELECTED QUARTERLY DATA </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">(in thousands, except per share amounts)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="text-align: center; border-bottom: Black 1pt solid">Year Ended December 31, 2011</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Quarter Ended</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Quarter Ended</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Quarter Ended</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Quarter Ended</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">March 31,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">June 30,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">September 30,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">December 31,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">TOTAL</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%">Total investment income (loss)</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">439</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">392</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(169</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(123</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">539</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net investment loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(686</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,203</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(891</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(720</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(3,500</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Increase (decrease) in net assets resulting</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,717</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">474</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,463</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(823</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,529</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Basic and diluted earnings per share (1)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.18</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.05</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.28</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.09</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.50</TD><TD STYLE="text-align: left">)</TD></TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 13.5pt 0 0; text-align: center"></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><SUP>(</SUP></B><SUP>1)</SUP> The sum of quarterly
per share amount may not equal per share amounts reported for year-to-date periods due to changes in the number of weighted average
shares outstanding and the effects of rounding.</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>(12) LEGAL PROCEEDINGS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">On June&nbsp;30, 2009, the Fund
received a &ldquo;Wells&rdquo; notice from the staff of the Securities and Exchange Commission (&ldquo;SEC&rdquo;). Based on
discussions with the SEC staff, the Fund believes that the issues the staff intends to pursue relate to a one-time
administrative fee that the Fund paid in 2005 and the compensation of a certain Fund officer during approximately the same
time period. The Wells notice notified the Fund that the staff intends to recommend that the SEC bring a civil action against
the Fund for possible violations of the securities laws. The Fund has been cooperating with the SEC in this inquiry. In
accordance with SEC procedures, the Fund has presented its perspective on these issues to the staff. The SEC has not made a
formal decision regarding an enforcement proceeding. The Fund also understands that three persons (two of whom were  formerly
associated with the Fund and the Fund&rsquo;s former investment adviser) received similar Wells notices relating to the 2005
activity. The Fund understands that these individuals also will have an opportunity to present their perspectives on these
issues before any formal decision is made on enforcement proceedings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">On March 10, 2010, American
General Life Insurance Company (American General&rdquo;) filed a complaint against the Fund in the District Court of Harris
County, Texas, in connection with an office lease entered into by our former administrator with American General. The
complaint by American General sought to hold the Fund liable for unpaid rent, improvements, and attorneys fees totaling
approximately $450,000. We agreed to a settlement with American General in exchange for a one-time payment of $120,000, which
was paid on June 7, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">On April&nbsp;26, 2010, the SEC also
subpoenaed records of the Fund in connection with certain trades in the Fund&rsquo;s shares by SPQR Capital LLP, SAE Capital Ltd.,
Versatile Systems Inc., Mobiquity Investments Limited, and anyone associated with those entities. The Fund has fully cooperated
with the SEC&rsquo;s request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">On June 9, 2011, RNR Production, Land and Cattle Company, Inc. (&ldquo;RNR&rdquo;) filed a lawsuit against
the Fund and each of the members of the Board in the District Court of Harris County, Texas, seeking various monetary and equitable
remedies, including a motion for a temporary restraining order against the Fund from holding its annual meeting of shareholders
which was scheduled for June 10, 2011.&nbsp; The Fund prevailed against the motion but agreed to a nuisance settlement with RNR
in exchange for a one-time payment of $200,000 which was paid on September 2, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 24.5pt">From time to time, the Fund is also
a party to certain legal proceedings incidental to the normal course of our business including the enforcement of our rights under
contracts with our portfolio companies. While the outcome of these legal proceedings cannot at this time be predicted with certainty,
the Fund does not expect that these proceedings will have a material effect upon the Fund&rsquo;s financial condition or results
of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><A NAME="a_023"></A><B>Item 9. <I>Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">None.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><A NAME="a_024"></A><B>Item 9A. <I>Controls and Procedures </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Attached as exhibits to this Form 10-K
are certifications of the Fund&rsquo;s Chief Executive Officer and Chief Financial Officer (CFO), which are required in accordance
with Rule 13a-14 of the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;). This section includes information
concerning the controls and controls evaluation referred to in those certifications and should be read in conjunction with the
certifications for a more complete understanding of the topics presented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0"><B>Evaluation of Disclosure Controls and Procedures </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We maintain disclosure controls and
procedures that are designed to ensure that information required to be disclosed in our reports filed pursuant to the Exchange
Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission&rsquo;s
rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer
and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based on the definition of
&ldquo;disclosure controls and procedures&rdquo; as promulgated under the Exchange Act. In designing and evaluating the disclosure
controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can
provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply
its judgment in evaluating the cost-benefit relationship of possible controls and procedures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Fund, including our Chief Executive
Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures
as of December 31, 2011. Based on the foregoing, our Executive Chairman and Chief Financial Officer concluded that our disclosure
controls and procedures were effective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><B>Management Report on Internal Control Over Financial Reporting
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Fund&rsquo;s management is responsible
for establishing and maintaining adequate internal control over financial reporting to provide reasonable assurance regarding the
reliability of its financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. Internal control over financial reporting includes those policies and procedures that (i)&nbsp;pertain
to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the
assets of the company; (ii)&nbsp;provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the
Fund are being made only in accordance with authorizations of management and directors of the Fund; and (iii)&nbsp;provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Fund&rsquo;s assets that
could have a material effect on the financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Management assessed its internal control
over financial reporting as of December&nbsp;31, 2011, the end of its fiscal year. Management based its assessment on criteria
established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Management&rsquo;s assessment included evaluation of such elements as the design and operating effectiveness of key financial reporting
controls, process documentation, accounting policies, and our overall control environment. This assessment is supported by testing
and monitoring performed both by a third-party consultant and our Accounting Department.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"></P>

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    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Based on its assessment, management
has concluded that its internal control over financial reporting was effective as of the end of the fiscal year to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting
purposes in accordance with generally accepted accounting principles. The results of management&rsquo;s assessment have been reviewed
with the Audit Committee of the Fund&rsquo;s Board of Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><A NAME="a_025"></A><B>Item 9B. <I>Other Information </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">None.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0"><A NAME="a_026"></A><B>PART III </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><A NAME="a_027"></A><B>Item 10. <I>Directors, Executive Officers and Corporate
Governance</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Information about the Directors and
Executive Officers of the Fund, the Fund&rsquo;s Audit Committee and the Nominating and Corporate Governance Committee, the Fund&rsquo;s
code of ethics applicable to the principal executive officer and principal financial officer, and Section&nbsp;16(a) Beneficial
Ownership Reporting Compliance is incorporated by reference to the Fund&rsquo;s Definitive Proxy Statement for the 2012 Annual
Meeting of Stockholders, to be filed pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended, on or prior
to April&nbsp;30, 2012 (the &ldquo;2012 Proxy Statement&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Fund has adopted a code of business
conduct and ethics applicable to the Fund&rsquo;s directors, officers (including the Fund&rsquo;s principal executive officer,
principal financial officer and controller) and employees, known as the Code of Business Conduct and Ethics. A copy of the Code
of Business Conduct and Ethics is available to any person, without charge, upon request addressed to Equus Total Return, Inc.,
Attention: Corporate Secretary, Eight Greenway Plaza, Suite 930, Houston, TX 77046. In the event that the Fund amends or waives
any of the provisions of the Code of Business Conduct and Ethics applicable to the Fund&rsquo;s principal executive officer, principal
financial officer, or controller, the Fund intends to disclose the same on its website at www.equuscap.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><A NAME="a_028"></A><B>Item 11. <I>Executive Compensation </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Information regarding Executive Compensation
is incorporated by reference to the Fund&rsquo;s 2012 Proxy Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><A NAME="a_029"></A><B>Item 12. <I>Security Ownership of Certain Beneficial
Owners and Management and Related Stockholder Matters</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Information regarding Security Ownership
of Certain Beneficial Owners and Management and Securities Authorized for Issuance under Equity Compensation Plans is incorporated
by reference to the Fund&rsquo;s 2012 Proxy Statement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0"><FONT STYLE="font-size: 7.5pt"><A NAME="a_030"></A></FONT><FONT STYLE="font-size: 10pt"><B>Item
13. <I>Certain Relationships and Related Transactions and Director Independence</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Information regarding Certain Relationships
and Related Transactions is incorporated by reference to the Fund&rsquo;s 2012 Proxy Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><A NAME="a_031"></A><B>Item 14. <I>Principal Accountant Fees and Services </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Information regarding Principal Accountant
Fees and Services is incorporated by reference to the Fund&rsquo;s 2012 Proxy Statement.</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0"><A NAME="a_032"></A><B>PART IV </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><A NAME="a_033"></A><B>Item 15. <I>Exhibits and Financial Statement Schedules
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 22.5pt"><B>(a)(1) Financial Statements </B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="width: 95%; margin-left: 13.5pt; border-collapse: collapse">
<TR>
    <TD STYLE="width: 93%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 7%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Page</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><A HREF="#a_037">Report of Independent Registered Public Accounting Firm&mdash;UHY</A></TD>
    <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; font-size: 10pt; vertical-align: bottom">37</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><A HREF="#a_014">Balance Sheets as of December&nbsp;31, 2011 and 2010</A></TD>
    <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; font-size: 10pt; vertical-align: bottom">38</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><A HREF="#a_015">Statements of Operations for the years ended December&nbsp;31, 2011, 2010 and 2009</A></TD>
    <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; font-size: 10pt; vertical-align: bottom">39</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><A HREF="#a_016">Statements of Changes in Net Assets for the years ended December&nbsp;31, 2011, 2010 and 2009</A></TD>
    <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; font-size: 10pt; vertical-align: bottom">40</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><A HREF="#a_018">Statements of Cash Flows for the years ended December&nbsp;31, 2011, 2010 and 2009</A></TD>
    <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; font-size: 10pt; vertical-align: bottom">41</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><A HREF="#a_019">Selected Per Share Data and Ratios for the five years ended December&nbsp;31, 2011</A></TD>
    <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; font-size: 10pt; vertical-align: bottom">42</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><A HREF="#a_020">Schedule of
    Investments as of December&nbsp;31, 2011</A></TD>
    <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; font-size: 10pt; vertical-align: bottom">43</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><A HREF="#a_021">Schedule of
    Investments as of December&nbsp;31, 2010</A></TD>
    <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; font-size: 10pt; vertical-align: bottom">46</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><A HREF="#a_022">Notes to Financial Statements</A></TD>
    <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; font-size: 10pt; vertical-align: bottom">49</TD></TR>
<TR>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-size: 10pt; font-weight: bold; text-indent: 0.5in">(a)(2)&nbsp;The following financial statement schedules are filed herewith:</TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; vertical-align: bottom; padding-left: 0.1in">&nbsp;</TD></TR>
<TR>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><A HREF="#a_034">Report of Independent Registered Public Accounting Firm&mdash;UHY</A></TD>
    <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; font-size: 10pt; vertical-align: bottom">65</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><A HREF="#a_035">Schedule 12-14 Investments in and Advances to Affiliates</A></TD>
    <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; font-size: 10pt; vertical-align: bottom">66</TD></TR>
</TABLE>
<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><A NAME="a_034"></A><B>Report of Independent Registered Public Accounting Firm </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">To the Board of Directors and Stockholders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">of Equus Total Return, Inc.:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">We have
audited the balance sheets of Equus Total Return, Inc. (a Delaware corporation), including the schedules of investments, as of
December 31, 2011 and 2010 and the related statements of operations, changes in net assets and cash flows for each of the three
years in the period ended December 31, 2011 and the selected per share data and ratios for each of the five years in the period
ended December 31, 2011, and have issued our report thereon dated March 16, 2012 (included elsewhere in this Form 10-K). Our audits
also included the Schedule 12-14 listed in Item 15(a)(2) of this Form 10-K. The Schedule 12-14 is the responsibility of the management
of Equus Total Return, Inc. Our responsibility is to express an opinion based on our audits.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">In our
opinion, the Schedule 12-14 referred to above, when considered in relation to the basic financial statements taken as a whole,
presents fairly in all material respects the information set forth therein.</FONT></P>

<P STYLE="font: 13.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 20%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 100%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">/s/ UHY LLP</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">Houston, Texas</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">March 16, 2012</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SCHEDULE 12-14</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_035"></A><B>SCHEDULE OF INVESTMENTS IN AND ADVANCES TO
AFFILIATES</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-align: center"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: italic bold 10pt Calibri, Halvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(in
    thousands)</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Calibri, Halvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Calibri, Halvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-weight: bold; font-family: Calibri, Halvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Year
    Ended <BR>
    December 31, 2011</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; font-family: Calibri, Halvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Portfolio
    Company</FONT></TD>
    <TD STYLE="font-weight: bold; font-family: Calibri, Halvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; font-family: Calibri, Halvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Investment
    (a)</FONT></TD>
    <TD STYLE="font-weight: bold; font-family: Calibri, Halvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; font-family: Calibri, Halvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Amount
    of Interest<BR>
    or Dividend <BR>
    Credited to Income (e)</FONT></TD>
    <TD STYLE="font-weight: bold; font-family: Calibri, Halvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; font-family: Calibri, Halvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">As
    of <BR>
    December 31, 2010 Fair Value</FONT></TD>
    <TD STYLE="font-weight: bold; font-family: Calibri, Halvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; font-family: Calibri, Halvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Gross
    Additions (b)</FONT></TD>
    <TD STYLE="font-weight: bold; font-family: Calibri, Halvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; font-family: Calibri, Halvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Gross
    Reductions <BR>
    (c)</FONT></TD>
    <TD STYLE="font-weight: bold; font-family: Calibri, Halvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font-weight: bold; font-family: Calibri, Halvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">As
    of<BR>
    December 31, 2011 Fair Value</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><FONT STYLE="font-size: 9pt">Control
    investments:&nbsp; Majority-owned</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left; border-top: Black 1pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left; border-top: Black 1pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">Equus
    Energy, LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">Member
    interest (100%)</FONT></TD>
    <TD STYLE="text-align: left; vertical-align: top; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; vertical-align: top; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; vertical-align: top; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">250&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; vertical-align: top; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; vertical-align: top; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">236&nbsp;&nbsp;</FONT></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">Equus
    Media Development Company, LLC</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">Member
    interest (100%)</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">1,163&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">(1,000)&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">163&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-size: 9pt">Riptide Entertainment,
    LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-size: 9pt">Member&nbsp;interest&nbsp;(64.67%)</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">8%
    promissory notes (d)</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-size: 9pt">Sovereign Business
    Forms, Inc.</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-size: 9pt">1,214,630 shares of
    common stock</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">3,894&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">594&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">4,488&nbsp;&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">12%
    promissory notes</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">398&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">2,742&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">(379)&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">2,363&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-size: 9pt">Spectrum Management,
    LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-size: 9pt">285,000 units of Class&nbsp;A
    member interest</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-size: 9pt">16% subordinated
    promissory note (d)</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">73&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">1,422&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">425&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">(1,528)&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">319&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="3" STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 9pt">Total
    Control investments:&nbsp; Majority-owned</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">471&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">9,221&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">675&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">(2,313)&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">7,569&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="border-bottom: Black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><FONT STYLE="font-size: 9pt">Control
    Investments: Non-majority owned</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-size: 9pt">ConGlobal Industries
    Holding, Inc.</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-size: 9pt">24,397,303 shares
    of common stock</FONT></TD>
    <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">2,355&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">(2,355)&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-size: 9pt">7% promissory note</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">420&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">6,000&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">(271)&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">5,729&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 9pt">Total
    Control investments:&nbsp; Majority-owned</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; vertical-align: bottom"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">420&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; vertical-align: bottom"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">8,355&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; vertical-align: bottom"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; vertical-align: bottom"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">(2,626)&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; vertical-align: bottom"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">5,729&nbsp;&nbsp;</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-bottom: Black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 9pt">Total
    Control investments</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 9pt">891&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 9pt">17,576&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 9pt">675&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 9pt">(4,939)&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 9pt">13,298&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="border-bottom: Black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><FONT STYLE="font-size: 9pt">Affiliate
    Investments</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">PalletOne,
    Inc.</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">350,000&nbsp;shares&nbsp;of&nbsp;common
    stock</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">50&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">100&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">150&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-size: 9pt">RP&amp;C International
    Investments LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-size: 9pt">Member interest (17.2%)</FONT></TD>
    <TD STYLE="vertical-align: bottom"></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 9pt">89&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 9pt">712&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 9pt">(712)&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="3" STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 9pt">Total
    Affiliate investments</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; vertical-align: bottom"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">89&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; vertical-align: bottom"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">762&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; vertical-align: bottom"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">(612)&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-bottom: Black 0.5pt solid; border-top: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; vertical-align: bottom"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; text-align: right"><FONT STYLE="font-size: 9pt">150&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="border-bottom: Black 0.5pt solid; font: bold 7.5pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-size: 9pt">Total
    Investments In and Advances to Affiliates</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; vertical-align: bottom; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 9pt">980&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; vertical-align: bottom; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 9pt">18,338&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; vertical-align: bottom; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 9pt">63&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; vertical-align: bottom; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 9pt">(4,939)&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; vertical-align: bottom; border-top-color: windowtext; border-top-width: 0.5pt"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 0.5pt solid; font: 7.5pt Times New Roman, Times, Serif; vertical-align: top; border-top-color: windowtext; border-top-width: 0.5pt; text-align: right"><FONT STYLE="font-size: 9pt">13,448&nbsp;&nbsp;</FONT></TD></TR>
</TABLE>


<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">.</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">This schedule should be read in conjunction with our Financial
Statements, including our<I> Schedule of Investments</I> and Notes 3 and 4 to the Financial Statements.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 2.25pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt">(a)</TD><TD>Common stock, warrants, options and equity interests are generally non-income producing and restricted. In some cases, preferred
stock may also be non-income producing. The principal amount for debt and the number of shares of common stock and preferred stock
is shown in the Schedule of Portfolio Securities as of December 31, 2010.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 2.25pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt">(b)</TD><TD>Gross additions include increases in investments resulting from new portfolio company investments, paid-in-kind interest or
dividends, the amortization of discounts and fees, and the exchange of one or more existing securities for one or more new securities.
Gross additions also include net increases in unrealized appreciation or net decreases in unrealized depreciation.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 2.25pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(c)</TD><TD>Gross reductions include decreases in investments resulting from principal collections related to investment repayments or
sales and the exchange of one or more existing securities for one or more new securities. Gross reductions also include net increases
in unrealized depreciation or net decreases in unrealized appreciation.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 2.25pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(d)</TD><TD>Debt is non-income producing.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt">(e)</TD><TD>Represents the total amount of interest or dividends credited to income for the portion of the year an investment was a control
investment (more than 25% owned) or an affiliate investment (5% to 25% owned), respectively. All dividend income is non-cash unless
otherwise noted.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt">**</TD><TD>Information related to the amount of equity in the net profit and loss for the period for the investments listed has not been
included in this schedule. This information is not considered to be meaningful due to the complex capital structures of the portfolio
companies, with different classes of equity securities outstanding with different preferences in liquidation. These investments
are neither consolidated nor accounted for under the equity method of accounting.</TD></TR></TABLE>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><A NAME="a_036"></A><B>(a)(3)&nbsp;Exhibits </B></P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">3.</TD><TD>Articles of Incorporation and by-laws.</TD></TR></TABLE>

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<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(a)</TD><TD>Restated Certificate of Incorporation of the Fund, as amended. [Incorporated by reference to Exhibit 3(a) to Registrant&rsquo;s
Annual Report on Form 10-K for the year ended December&nbsp;31, 2007.]</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(b)</TD><TD>Certificate of Merger dated June&nbsp;30, 1993, between the Fund and Equus Investments Incorporated. [Incorporated by reference
to Exhibit 3(b) to Registrant&rsquo;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2007.]</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(c)</TD><TD>Amended and Restated Bylaws of the Fund. [Incorporated by reference to Exhibit 3(b) to Registrant&rsquo;s Current Report on
Form 8-K filed on December 16, 2010.]</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">10.</TD><TD>Material Contracts.</TD></TR></TABLE>

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<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(c)</TD><TD>Safekeeping Agreement between the Fund and Amegy Bank dated August&nbsp;16, 2008.&nbsp;[Incorporated by reference to Exhibit
10(g) to Registrant&rsquo;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2008.]</TD></TR></TABLE>

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<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(d)</TD><TD><A HREF="ex10d_indemnificationagmnt.htm">Form of Indemnification Agreement between the Fund and certain of its directors
                                                                  and officers.</A> [Filed herewith]</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(e)</TD><TD>Form of Release Agreement between the Fund and certain of its officers and former officers. [Incorporated by reference to Exhibit
10(h) to Registrant&rsquo;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2004.]</TD></TR></TABLE>

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<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(f)</TD><TD>Code of Ethics of the Fund (Rule 17j-1) [Incorporated by reference to Exhibit 10(f) to Registrant&rsquo;s Annual Report on
Form 10-K for the year ended December&nbsp;31, 2009.]</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4.5pt 0 0 48.95pt; text-indent: -24.5pt">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">31.</TD><TD>Rule 13a-14(a)/15d-14(a) Certifications</TD></TR></TABLE>

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<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(1)</TD><TD><A HREF="ex31_1.htm">Certification by Chief Executive Officer</A></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(2)</TD><TD><A HREF="ex31_2.htm">Certification by Chief Financial Officer</A></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">32.</TD><TD>Section&nbsp;1350 Certification</TD></TR></TABLE>

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<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(1)</TD><TD><A HREF="ex32_1.htm">Certification by Chief Executive Officer</A></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(2)</TD><TD><A HREF="ex32_2.htm">Certification by Chief Financial Officer</A></TD></TR></TABLE>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Pursuant to the requirements of Section&nbsp;13
or 15(d) of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed by the undersigned, thereunto
duly authorized.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; margin-left: -26.7pt; border-collapse: collapse">
<TR>
    <TD STYLE="width: 47%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 5%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 3%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 45%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; padding-left: 0.1in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">EQUUS TOTAL RETURN, INC.</TD></TR>
<TR>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Date: March&nbsp;16, 2012</TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 10pt">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;JOHN A. HARDY</FONT><FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="font: bold 7.5pt Times New Roman, Times, Serif; text-align: center">John A. Hardy</TD></TR>
<TR>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; vertical-align: top; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; vertical-align: bottom; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="font: 4pt/2pt Times New Roman, Times, Serif; vertical-align: top; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="font: bold 7.5pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: center">Chief Executive Officer <BR> (Principal Executive Officer)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Pursuant to the requirements of the Securities
Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities
and on the dates indicated.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<TR>
    <TD STYLE="width: 47%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 35%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 18%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Signature</B></P>
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    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Title</B></P>
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    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Date</B></P>
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<TR>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;FRASER
        ATKINSON</FONT><FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
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        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: center"><B>Fraser Atkinson</B></P></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 9pt">Director</TD>
    <TD NOWRAP STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">March&nbsp;16, 2012</TD></TR>
<TR>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-left: 9pt">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;ALESSANDRO
        BENEDETTI</FONT><FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
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        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: center"><B>Alessandro Benedetti</B></P></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 9pt">Director, Executive Chairman</TD>
    <TD NOWRAP STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">March&nbsp;16, 2012</TD></TR>
<TR>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-left: 9pt">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;RICHARD
        F. BERGNER</FONT><FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
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        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: center"><B>Richard F. Bergner</B></P></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 9pt">Director</TD>
    <TD NOWRAP STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">March&nbsp;16, 2012</TD></TR>
<TR>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-left: 9pt">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;KENNETH
        I. DENOS</FONT><FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
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        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: center"><B>Kenneth I. Denos</B></P></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 9pt">Director, Secretary and Chief Compliance Officer</TD>
    <TD NOWRAP STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">March&nbsp;16, 2012</TD></TR>
<TR>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-left: 9pt">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;GREGORY
        J. FLANAGAN</FONT><FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
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        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: center"><B>Gregory J. Flanagan</B></P></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 9pt">Director</TD>
    <TD NOWRAP STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">March&nbsp;16, 2012</TD></TR>
<TR>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-left: 9pt">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;HENRY
        W. HANKINSON</FONT><FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
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        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: center"><B>Henry W. Hankinson</B></P></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 9pt">Director</TD>
    <TD NOWRAP STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">March&nbsp;16, 2012</TD></TR>
<TR>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-left: 9pt">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;ROBERT
        L. KNAUSS</FONT><FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
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        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: center"><B>Robert L. Knauss</B></P></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 9pt">Director</TD>
    <TD NOWRAP STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">March&nbsp;16, 2012</TD></TR>
<TR>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-left: 9pt">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;BERTRAND
        DES PALLIERES</FONT><FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>
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        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: center"><B>Bertrand des Pallieres</B></P></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 9pt">Director</TD>
    <TD NOWRAP STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">March&nbsp;16, 2012</TD></TR>
<TR>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-left: 9pt">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;JOHN
        A. HARDY</FONT><FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
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        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: center"><B>John A. Hardy</B></P></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 9pt">Director, Chief Executive Officer (Principal Executive Officer)</TD>
    <TD NOWRAP STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">March&nbsp;16, 2012</TD></TR>
<TR>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-left: 9pt">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;L&rsquo;SHERYL
        D. HUDSON</FONT><FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
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        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: center"><B>L&rsquo;Sheryl D. Hudson</B></P></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 9pt">Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)</TD>
    <TD NOWRAP STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">March 16, 2012</TD></TR>
</TABLE>
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<TYPE>EX-10.D
<SEQUENCE>2
<FILENAME>ex10d_indemnificationagmnt.htm
<DESCRIPTION>EXHIBIT 10(D) INDEMNIFICATION AGREEMENT
<TEXT>
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<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0; text-align: right"><A HREF="f10k_equus.htm">Exhibit 10(d)</A></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>INDEMNIFICATION AGREEMENT</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.35in 0 0; text-align: justify; text-indent: 0.5in">This Indemnification
Agreement (&ldquo;<U>Agreement</U>&rdquo;) is made as of the ___ day of ____, 201__, by and between Equus Total Return, Inc., a
Delaware corporation (the &ldquo;<U>Company</U>&rdquo;), and ___________________________ (&ldquo;<U>Indemnitee</U>&rdquo;).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">RECITALS</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Company desires
to attract and retain the services of highly qualified individuals, such as Indemnitee, to serve the Company;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, in recognition
of Indemnitee&rsquo;s past service provided to the Company and order to induce Indemnitee to continue to provide services to the
Company, the Company wishes to provide for the indemnification of, and advancement of expenses to, Indemnitee to the maximum extent
permitted by law;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Certificate
of Incorporation (&ldquo;<U>Charter</U>&rdquo;) and the Bylaws (&ldquo;<U>Bylaws</U>&rdquo;) of the Company authorize indemnification
of the officers and directors of the Company, and Indemnitee may also be entitled to indemnification pursuant to the General Corporation
Law of the State of Delaware (the &ldquo;<U>DGCL</U>&rdquo;);</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Charter
and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate
that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect
to indemnification;</P>

<P STYLE="font: 12pt/13.8pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.5in">WHEREAS,
the Company and Indemnitee recognize the continued difficulty in obtaining liability insurance for the Company&rsquo;s directors,
officers, employees, agents and fiduciaries, the significant and continual increases in the cost of such insurance and the general
trend of insurance companies to reduce the scope of coverage of such insurance;</P>

<P STYLE="font: 12pt/13.8pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.5in">WHEREAS,
the Company and Indemnitee further recognize the substantial increase in corporate litigation in general, subjecting directors,
officers, employees, agents and fiduciaries to expensive litigation risks at the same time as the availability and scope of coverage
of liability insurance provide increasing challenges for the Company;</P>

<P STYLE="font: 12pt/13.8pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.5in">WHEREAS,
Indemnitee does not regard the protection currently provided by applicable law, the Company&rsquo;s governing documents and available
insurance as adequate under the present circumstances, and Indemnitee may not be willing to continue to serve in such capacity
without additional protection;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Board
of Directors of the Company (the &ldquo;<U>Board</U>&rdquo;) has determined that the increased difficulty in attracting and retaining
highly qualified persons such as Indemnitee is detrimental to the best interests of the Company&rsquo;s stockholders and that the
Company should act to assure Indemnitee that there will be increased certainty of such protection in the future;</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.5in">WHEREAS, it is
reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf
of, such persons to the fullest extent permitted by applicable law from the date that Indemnitee first provided services to the
Company, regardless of any amendment or revocation of the Company&rsquo;s Charter or Bylaws, so that they will serve or continue
to serve the Company free from undue concern that they will not be so indemnified; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.45in">WHEREAS, this
Agreement is a supplement to and in furtherance of the indemnification provided in the Charter and Bylaws and any resolutions adopted
pursuant thereto, and shall not diminish or abrogate any rights of Indemnitee thereunder.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE,
in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as
follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.35in 0 0; text-align: justify; text-indent: 0.5in">Section 1. <U>Services
to the Company</U>. Indemnitee agrees to serve as a director of the Company. Indemnitee may at any time and for any reason resign
from such position (subject to any other contractual obligation or any obligation imposed by law), in which event the Company shall
have no obligation under this Agreement to continue Indemnitee in such position. This Agreement shall not be deemed an employment
contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee. The foregoing notwithstanding, this
Agreement shall continue in force after Indemnitee has ceased to serve as a director of the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Section 2. <U>Definitions</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">As used in this Agreement:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(a)&#9;&ldquo;<U>Corporate
Status</U>&rdquo; describes the status of a person as a current or former director, officer, employee, agent or trustee of the
Company or of any other Enterprise which such person is or was serving at the request of the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(b)&#9;&ldquo;<U>Enforcement
Expenses</U>&rdquo; shall include all reasonable attorneys&rsquo; fees, retainers, court costs, transcript costs, fees of experts,
witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees,
and all other disbursements or expenses of the types customarily incurred in connection with an action to enforce indemnification
or advancement rights, or an appeal from such action, including without limitation the premium, security for, and other costs relating
to any cost bond, supersedes bond, or other appeal bond or its equivalent.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(c)&#9;&ldquo;<U>Enterprise</U>&rdquo;
shall mean any corporation (other than the Company), partnership, joint venture, trust, employee benefit plan or other legal entity
of which Indemnitee is or was serving at the request of the Company as a director, officer, employee, agent or trustee.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(d)&#9;&ldquo;<U>Expenses</U>&rdquo;
shall include all reasonable attorneys&rsquo; fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel
expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">or expenses of the types customarily incurred
in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness
in, or otherwise participating in, a Proceeding or an appeal resulting from a Proceeding, including without limitation the premium,
security for, and other costs relating to any cost bond, supersedes bond, or other appeal bond or its equivalent. Expenses, however,
shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(e)&#9;&ldquo;<U>Independent
Counsel</U>&rdquo; means a law firm, or a partner (or, if applicable, member) of such a law firm, that is experienced in matters
of Delaware corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company,
any Enterprise or Indemnitee in any matter material to any such party (other than with respect to matters concerning Indemnitee
under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding
giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term &ldquo;Independent Counsel&rdquo;
shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict
of interest in representing either the Company or Indemnitee in an action to determine Indemnitee&rsquo;s rights under this Agreement.
The Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify
such counsel against any and all expenses, claims, liabilities and damages arising out of or relating to this Agreement or its
engagement pursuant hereto.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(f)&#9;The term &ldquo;<U>Proceeding</U>&rdquo;
shall include any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation,
inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company
or otherwise and whether of a civil, criminal, administrative or investigative nature, in which Indemnitee was, is or will be involved
as a party or otherwise by reason of the fact that Indemnitee is or was a director of the Company or is or was serving at the request
of the Company as a director, officer, employee, agent or trustee of any Enterprise or by reason of any action taken by him or
of any action taken on his part while acting as director of the Company or while serving at the request of the Company as a director,
officer, employee, agent or trustee of any Enterprise, in each case whether or not serving in such capacity at the time any liability
or expense is incurred for which indemnification, reimbursement or advancement of expenses can be provided under this Agreement;
<U>provided</U>, <U>however</U>, that the term &ldquo;Proceeding&rdquo; shall not include any action, suit or arbitration, or part
thereof, initiated by Indemnitee to enforce Indemnitee&rsquo;s rights under this Agreement as provided for in Section 13(e) of
this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Section 3.&#9;<U>Indemnity
in Third-Party Proceedings</U>. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee
is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the
Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee shall be indemnified against all Expenses, judgments,
fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding
or any claim, issue or matter therein, if Indemnitee acted in good faith and in a</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">manner he reasonably believed to be in or not
opposed to the best interests of the Company and, in the case of a criminal proceeding, had no reasonable cause to believe that
his conduct was unlawful. Indemnitee shall not enter into any settlement in connection with a Proceeding without ten (10) days&rsquo;
prior notice to the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Section 4.&#9;<U>Indemnity
in Proceedings by or in the Right of the Company</U>. The Company shall indemnify Indemnitee in accordance with the provisions
of this Section 4 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right
of the Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified against all Expenses
actually and reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein,
if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company.
No indemnification for Expenses shall be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee
shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent that the Delaware Court
of Chancery (the &ldquo;<U>Delaware Court</U>&rdquo;) or any court in which the Proceeding was brought shall determine upon application
that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably
entitled to indemnification for such expenses as the Delaware Court or such other court shall deem proper.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Section 5.&#9;<U>Indemnification
for Expenses of a Party Who is Wholly or Partly Successful</U>. Notwithstanding any other provisions of this Agreement and except
as provided in Section 8, to the extent that Indemnitee is a party to or a participant in and is successful, on the merits or otherwise,
in any Proceeding or in defense of any claim, issue or matter therein, the Company shall indemnify Indemnitee against all Expenses
actually and reasonably incurred by him in connection therewith. If Indemnitee is not wholly successful in such Proceeding but
is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the
Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection
with each successfully resolved claim, issue or matter. For purposes of this Section and without limitation, the termination of
any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result
as to such claim, issue or matter.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Section 6.&#9;<U>Indemnification
For Expenses of a Witness</U>. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason
of his Corporate Status, a witness in any Proceeding to which Indemnitee is not a party and is not threatened to be made a party,
he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 9pt; text-align: justify; text-indent: 0.5in">Section 7.&#9;<U>Additional
Indemnification</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 9pt; text-align: justify; text-indent: 0.5in">&#9;(a) Except as
provided in Section 8, notwithstanding any limitation in Sections 3, 4 or 5, the Company shall indemnify Indemnitee to the fullest
extent permitted by law if Indemnitee is a party to or is threatened to be made a party to any Proceeding (including a Proceeding
by or in the right of the Company to procure a judgment in its favor) against all</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 9pt; text-align: justify">expenses, judgments, fines and amounts
paid in settlement actually and reasonably incurred by Indemnitee in connection with the Proceeding.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(b)&#9;For purposes of Section
7(a), the meaning of the phrase &ldquo;to the fullest extent permitted by law&rdquo; shall include, but not be limited to:</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(i)&#9;to the fullest extent
permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding
provision of any amendment to or replacement of the DGCL or such provision thereof; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(ii)&#9;to the fullest
extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase
the extent to which a corporation may indemnify its officers and directors.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.5in">Section 8.&#9;<U>Exclusions</U>.
Notwithstanding any provision in this Agreement to the contrary, the Company shall not be obligated under this Agreement:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 5.4pt; text-align: justify; text-indent: 1in">(a)&#9;to make
any indemnity for amounts otherwise indemnifiable hereunder (or for which advancement is provided hereunder) if and to the extent
that Indemnitee has otherwise actually received such amounts under any insurance policy, contract, agreement or otherwise;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 5.4pt; text-align: justify; text-indent: 1in">(b)&#9;to make
any indemnity for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of
the Company within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of state
statutory law or common law; or</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 5.4pt; text-align: justify; text-indent: 1in">(c)&#9;to make
any indemnity or advancement that is prohibited by applicable law.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 443.7pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Section 9.&#9;<U>Advances
of Expenses</U>. The Company shall advance, to the extent not prohibited by law, the Expenses incurred by Indemnitee in connection
with any Proceeding, and such advancement shall be made within twenty (20) days after the receipt by the Company of a statement
or statements requesting such advances (which shall include invoices received by Indemnitee in connection with such Expenses but,
in the case of invoices in connection with legal services, any references to legal work performed or to expenditures made that
would cause Indemnitee to waive any privilege accorded by applicable law shall not be included with the invoice) from time to time,
whether prior to or after final disposition of any Proceeding. Advances shall be unsecured and interest free. Advances shall be
made without regard to Indemnitee&rsquo;s ability to repay the expenses and without regard to Indemnitee&rsquo;s ultimate entitlement
to indemnification under the other provisions of this Agreement. Indemnitee shall qualify for advances upon the execution and delivery
to the Company of this Agreement which shall constitute an undertaking providing that Indemnitee undertakes to the fullest extent
required by law to repay the advance if and to the extent that it is ultimately determined by a court of competent jurisdiction
in a final judgment, not subject to appeal, that Indemnitee is not entitled to be indemnified by the Company. The right to advances
under this paragraph shall in all events continue until final disposition of any Proceeding, including any appeal therein. Nothing
in this</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Section 9 shall limit Indemnitee&rsquo;s right
to advancement pursuant to Section 13(e) of this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 37.8pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 37.8pt; text-align: justify">Section 10.&#9;<U>Procedure for
Notification and Defense of Claim</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 1in">(a)&#9;To obtain
indemnification under this Agreement, Indemnitee shall submit to the Company a written request therefor and, if Indemnitee so chooses
pursuant to Section 11 of this Agreement, such written request shall also include a request for Indemnitee to have the right to
indemnification determined by Independent Counsel.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(b)&#9;The Company will be
entitled to participate in the Proceeding at its own expense.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Section 11.&#9;<U>Procedure Upon
Application for Indemnification</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(a)&#9;Upon written request
by Indemnitee for indemnification pursuant to Section 10(a), a determination, if such determination is required by applicable law,
with respect to Indemnitee&rsquo;s entitlement thereto shall be made in the specific case: (i) by Independent Counsel in a written
opinion to the Board if Indemnitee so requests in such written request for indemnification pursuant to Section 10(a), or (ii) by
the Company in accordance with applicable law if Indemnitee does not so request such determination be made by Independent Counsel.
In the case that such determination is made by Independent Counsel, a copy of Independent Counsel&rsquo;s written opinion shall
be delivered to Indemnitee and, if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall
be made within ten (10) days after such determination. Indemnitee shall cooperate with the Independent Counsel or the Company,
as applicable, making such determination with respect to Indemnitee&rsquo;s entitlement to indemnification, including providing
to such counsel or the Company, upon reasonable advance request, any documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs
or expenses (including attorneys&rsquo; fees and disbursements) incurred by Indemnitee in so cooperating with the Independent Counsel
or the Company shall be borne by the Company (irrespective of the determination as to Indemnitee&rsquo;s entitlement to indemnification)
and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 1in">(b)&#9;In the event
that Indemnitee exercises his right to have his entitlement to indemnification determined by Independent Counsel pursuant to clause
(i) of Section 11(a), the Independent Counsel shall be selected by Indemnitee. The Company may, within ten (10) days after written
notice of such selection, deliver to Indemnitee a written objection to such selection; <U>provided</U>, <U>however</U>, that such
objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of &ldquo;Independent
Counsel&rdquo; as defined in Section 2 of this Agreement, and the objection shall set forth with particularity the factual basis
of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written
objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until
such objection is withdrawn or a court has determined that such objection is without merit. If, within twenty (20)</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify">days after the later of (i) submission
by Indemnitee of a written request for indemnification and Independent Counsel pursuant to Sections 10(a) and 11(a)(i) hereof,
respectively, and (ii) the final disposition of the Proceeding, including any appeal therein, no Independent Counsel shall have
been selected without objection, Indemnitee may petition a court of competent jurisdiction for resolution of any objection which
shall have been made by the Company to the selection of Independent Counsel and/or for the appointment as Independent Counsel of
a person selected by the court or by such other person as the court shall designate. The person with respect to whom all objections
are so resolved or the person so appointed shall act as Independent Counsel under Section 11(a) hereof. Upon the due commencement
of any judicial proceeding or arbitration pursuant to Section 13(a) of this Agreement, Independent Counsel shall be discharged
and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 37.8pt; text-align: justify">Section 12.&#9;<U>Presumptions and
Effect of Certain Proceedings</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(a)&#9;In making a determination
with respect to entitlement to indemnification hereunder, it shall be presumed that Indemnitee is entitled to indemnification under
this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and
the Company shall have the burden of proof to overcome that presumption in connection with the making of any determination contrary
to that presumption. Neither (i) the failure of the Company or of Independent Counsel to have made a determination prior to the
commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has
met the applicable standard of conduct, nor (ii) an actual determination by the Company or by Independent Counsel that Indemnitee
has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not
met the applicable standard of conduct.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 1in">(b)&#9;The termination
of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of guilty,
<U>nolo</U> <U>contendere</U> or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself
adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and
in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal
Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 1in">(c)&#9;The knowledge
and/or actions, or failure to act, of any director, officer, agent or employee of the Company or any Enterprise shall not be imputed
to Indemnitee for purposes of determining the right to indemnification under this Agreement.</P>

<P STYLE="font: 12pt/25.2pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Section 13.&#9;<U>Remedies
of Indemnitee</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.1in 0 0; text-align: justify; text-indent: 1in">(a)&#9;Subject to
Section 13(f), in the event that (i) a determination is made pursuant to Section 11 of this Agreement that Indemnitee is not entitled
to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 9 of this Agreement,
(iii) no determination of entitlement to indemnification shall have been made pursuant to Section 11(a) of this Agreement within
sixty (60) days after receipt by the Company of the request for indemnification that does not include a request for Independent
Counsel, (iv)</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.1in 0 0; text-align: justify">payment of indemnification is not made
pursuant to Section 5 or 6 or the last sentence of Section 11(a) of this Agreement within ten (10) days after receipt by the Company
of a written request therefor or (v) payment of indemnification pursuant to Section 3, 4 or 7 of this Agreement is not made within
ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled
to an adjudication by a court of his entitlement to such indemnification or advancement. Alternatively, Indemnitee, at his option,
may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American
Arbitration Association. Proper venue for any such arbitration shall be any federal or state court selected by Indemnitee that
is located within the continental United States. Indemnitee shall commence such proceeding seeking an adjudication or an award
in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant
to this Section 13(a); <U>provided</U>, <U>however</U>, that the foregoing time limitation shall not apply in respect of a proceeding
brought by Indemnitee to enforce his rights under Section 5 of this Agreement. The Company shall not oppose Indemnitee&rsquo;s
right to seek any such adjudication or award in arbitration.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(b)&#9;In the event that
a determination shall have been made pursuant to Section 11(a) of this Agreement that Indemnitee is not entitled to indemnification,
any judicial proceeding or arbitration commenced pursuant to this Section 13 shall be conducted in all respects as a de novo trial,
or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial proceeding
or arbitration commenced pursuant to this Section 13, the Company shall have the burden of proving Indemnitee is not entitled to
indemnification or advancement, as the case may be.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(c) &#9;If a determination
shall have been made pursuant to Section 11(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall
be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 13, absent (i) a misstatement
by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee&rsquo;s statement not materially
misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable
law.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(d)&#9;The Company shall
be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 13 that the procedures
and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such
arbitrator that the Company is bound by all the provisions of this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(e)&#9;The Company shall
indemnify Indemnitee against any and all Enforcement Expenses and, if requested by Indemnitee, shall (within ten (10) days after
receipt by the Company of a written request therefor) advance, to the extent not prohibited by law, such Enforcement Expenses to
Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advancement
from the Company under this Agreement or under any directors&rsquo; and officers&rsquo; liability insurance policies maintained
by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement or
insurance recovery, as the case may be, in the suit for which indemnification or advancement is being sought.</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 1in">(f)&#9;Notwithstanding
anything in this Agreement to the contrary, no determination as to entitlement to indemnification under this Agreement shall be
required to be made prior to the final disposition of the Proceeding, including any appeal therein.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 37.8pt; text-align: justify">Section 14.&#9;<U>Non-exclusivity;
Survival of Rights; Insurance; Subrogation</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(a)&#9;The rights of indemnification
and to receive advancement as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee
may at any time be entitled under applicable law, the Charter, the Bylaws, any agreement, a vote of stockholders or a resolution
of directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict
any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status
prior to such amendment, alteration or repeal. To the extent that a change in Delaware law, whether by statute or judicial decision,
permits greater indemnification or advancement than would be afforded currently under the Charter, Bylaws and this Agreement, it
is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change.
No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy
shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity
or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion
or employment of any other right or remedy.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 1in">(b)&#9;To the extent
that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, agents
or trustees of the Company or of any other Enterprise, Indemnitee shall be covered by such policy or policies in accordance with
its or their terms to the maximum extent of the coverage available for any such director, officer, employee, agent or trustee under
such policy or policies. If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director
and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers
in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable
action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance
with the terms of such policies.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(c)&#9;In the event of any
payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of
Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such
documents as are necessary to enable the Company to bring suit to enforce such rights.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 1in">(d)&#9;The Company&rsquo;s
obligation to provide indemnification or advancement hereunder to Indemnitee who is or was serving at the request of the Company
as a director, officer, employee, agent or trustee of any other Enterprise shall be reduced by any amount Indemnitee has actually
received as indemnification or advancement from such other Enterprise.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.5in">Section 15.&#9;
<U>Application to Entire Term of Service</U>. The obligation of the Company to</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify">provide indemnification or advancement
of expenses to Indemnitee hereunder shall apply to any period in which Indemnitee provides or has provided services to the Company
as an officer, director, employee, or agent, including any such period which may have existed prior to the date of this Agreement,
and shall continue until such time as specified in Section 16 herein.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.5in">Section 16.&#9;
<U>Duration of Agreement</U>. This Agreement shall continue until and terminate upon the later of: (a) ten (10) years after the
date that Indemnitee shall have ceased to serve as a director of the Company or (b) one (1) year after the final termination of
any Proceeding, including any appeal, then pending in respect of which Indemnitee is granted rights of indemnification or advancement
hereunder and of any proceeding commenced by Indemnitee pursuant to Section 13 of this Agreement relating thereto. This Agreement
shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his heirs, executors
and administrators. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation
or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by written agreement
in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform if no such succession had taken place.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.5in">Section 17.&#9;<U>Severability</U>.
If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever:
(a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each
portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not
itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to
the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform
to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the
provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed
so as to give effect to the intent manifested thereby.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Section 18.&#9;<U>Enforcement</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(a)&#9;The Company expressly
confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce
Indemnitee to serve as a director of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in
serving as a director of the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 1in">(b)&#9;This Agreement
constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior
agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof;
<U>provided</U>, <U>however</U>, that this Agreement is a supplement to and in furtherance of the Charter, the Bylaws and applicable
law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.5in">Section 19.&#9;<U>Modification
and Waiver</U>. No supplement, modification or amendment, or waiver of any provision, of this Agreement shall be binding unless
executed in writing by the parties thereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute
a waiver of any other provisions of this Agreement nor shall any waiver constitute a continuing waiver.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Section 20.&#9;<U>Notice
by Indemnitee</U>. Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena,
complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification
or advancement as provided hereunder. The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation
which it may have to Indemnitee under this Agreement or otherwise.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Section 21.&#9;<U>Notices</U>.
All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been
duly given if (a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed,
(b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed,
(c) mailed by reputable overnight courier and receipted for by the party to whom said notice or other communication shall have
been directed or (d) sent by facsimile transmission, with receipt of oral confirmation that such transmission has been received:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(a)&#9;If to Indemnitee,
at such address as Indemnitee shall provide to the Company.</P>

<P STYLE="font: 12pt/25.2pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">(b)&#9;If to the Company to:&#9;Copy
to:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-left: 1in; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 52%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-weight: bold">Attn: Chief Compliance Officer</TD>
    <TD STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 45%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-weight: bold">Attn: Martin Glass, Esq.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Equus Total Return, Inc.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Goodwin Procter, LLP</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Eight Greenway Plaza, Suite 930</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">620 Eighth Avenue, 26<SUP>th</SUP> Floor</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Houston, TX 77046</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">New York, NY 10018</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Fax: (713) 529-9545</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Fax: (212) 355-3333</TD></TR>
</TABLE>
<P STYLE="font: 12pt/25.2pt Times New Roman, Times, Serif; margin: 0; text-align: justify">or to any other address as may have
been furnished to Indemnitee by the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.1in 0 0; text-align: justify; text-indent: 0.5in">Section 22.&#9;<U>Contribution</U>.
To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to
Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred
by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses,
in connection with any Proceeding in such proportion as is deemed fair and reasonable in light of all of the circumstances in order
to reflect (i) the relative benefits received by the Company and Indemnitee in connection with the event(s) and/or transaction(s)
giving rise to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents)
and Indemnitee in connection with such event(s) and/or transactions.</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12.6pt 0 0; text-align: justify; text-indent: 0.5in">Section 23.&#9;<U>Applicable
Law and Consent to Jurisdiction</U>. This Agreement and the legal relations among the parties shall be governed by, and construed
and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect
to any arbitration commenced by Indemnitee pursuant to Section 13(a) of this Agreement, the Company and Indemnitee hereby irrevocably
and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought
only in the Delaware Court, and not in any other state or federal court in the United States of America or any court in any other
country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising
out of or in connection with this Agreement, (iii) consent to service of process at the address set forth in Section 21 of this
Agreement with the same legal force and validity as if served upon such party personally within the State of Delaware, (iv) waive
any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (v) waive, and agree not to plead
or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient
forum.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.5in">Section 24.&#9;<U>Identical
Counterparts</U>. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to
be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party
against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.45in">Section 25.&#9;<U>Miscellaneous</U>.
The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of
this Agreement or to affect the construction thereof.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.15in 0 0; text-align: justify; text-indent: 0.45in">IN WITNESS WHEREOF,
the parties have caused this Agreement to be signed as of the day and year first above written.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 3in">&ldquo;Company&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 3in">EQUUS TOTAL RETURN, INC.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 3in">By:________________________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 3in">&ldquo;Indemnitee&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 3in"><U>___________________________</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 3in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 3in"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 3in"><U></U></P>

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<DESCRIPTION>EXHIBIT 31.1 JOHN HARDY
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: right"><A HREF="f10k_equus.htm"><B>EXHIBIT 31.1</B></A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>Form of Annual Certification Required
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>by Rules 13a-14 and 15d-14 under the Securities
Exchange Act of 1934 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">I, John A. Hardy, certify that:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">1.</TD><TD>I have reviewed this Annual Report on <A HREF="f10k_equus.htm">Form 10-K</A> of Equus Total Return, Inc.;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">2.</TD><TD>Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading
with respect to the period covered by this annual report;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">3.</TD><TD>Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present
in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
presented in this annual report;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">4.</TD><TD>The registrant&rsquo;s other certifying officer and I are responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we have:</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">a.</TD><TD>Designed such disclosure controls and procedures. or caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the registrant, including its subsidiaries, is made known to us by
others within those entities, particularly during the period in which this annual report is being prepared;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">b.</TD><TD>[Reserved]</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">c.</TD><TD>Evaluated the effectiveness of the registrant&rsquo;s disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such
evaluation;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">d.</TD><TD>Disclosed in this report any change in the registrant&rsquo;s internal control over financial reporting that occurred during
the registrant&rsquo;s most recent fiscal quarter (the registrant&rsquo;s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant&rsquo;s internal control over financial
reporting, and;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">5.</TD><TD>The registrant&rsquo;s other certifying officer(s) and I have disclosed, based on our most recent evaluation of the internal
control over financial reporting, to the registrant&rsquo;s auditors and the audit committee of registrant&rsquo;s board of directors
(or persons performing the equivalent function):</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">a.</TD><TD>All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting,
which are reasonably likely to adversely affect the registrant&rsquo;s ability to record, process, summarize and report financial
information; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">b.</TD><TD>Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&rsquo;s
internal controls.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">Date: March&nbsp;16, 2012</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ JOHN A. HARDY</P>
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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 12pt; text-indent: -12pt"><B>Chief Executive Officer</B></P></TD></TR>
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<TYPE>EX-31.2
<SEQUENCE>4
<FILENAME>ex31_2.htm
<DESCRIPTION>EXHIBIT 31.2 L'SHERYL HUDSON
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><A HREF="f10k_equus.htm"><B>EXHIBIT 31.2</B></A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>Form of Annual Certification Required
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>by Rules 13a-14 and 15d-14 under the Securities
Exchange Act of 1934 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">I, L&rsquo;Sheryl D. Hudson, certify that:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">1.</TD><TD>I have reviewed this Annual Report on <A HREF="f10k_equus.htm">Form 10-K</A> of Equus Total Return, Inc.;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">2.</TD><TD>Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading
with respect to the period covered by this annual report;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">3.</TD><TD>Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present
in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
presented in this annual report;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">4.</TD><TD>The registrant&rsquo;s other certifying officer and I are responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we have:</TD></TR></TABLE>

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<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">a.</TD><TD>Designed such disclosure controls and procedures. or caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the registrant, including its subsidiaries, is made known to us by
others within those entities, particularly during the period in which this annual report is being prepared;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">b.</TD><TD>[Reserved]</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">c.</TD><TD>Evaluated the effectiveness of the registrant&rsquo;s disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such
evaluation;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">d.</TD><TD>Disclosed in this report any change in the registrant&rsquo;s internal control over financial reporting that occurred during
the registrant&rsquo;s most recent fiscal quarter (the registrant&rsquo;s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant&rsquo;s internal control over financial
reporting, and;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">5.</TD><TD>The registrant&rsquo;s other certifying officer(s) and I have disclosed, based on our most recent evaluation of the internal
control over financial reporting, to the registrant&rsquo;s auditors and the audit committee of registrant&rsquo;s board of directors
(or persons performing the equivalent function):</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">a.</TD><TD>All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting,
which are reasonably likely to adversely affect the registrant&rsquo;s ability to record, process, summarize and report financial
information; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">b.</TD><TD>Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&rsquo;s
internal controls.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">Date: March&nbsp;16, 2012</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ L&rsquo;SHERYL D. HUDSON</P>
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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12pt; text-indent: -12pt"><B>L&rsquo;Sheryl D. Hudson</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 12pt; text-indent: -12pt"><B>Chief Financial Officer</B></P></TD></TR>
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<TYPE>EX-32.1
<SEQUENCE>5
<FILENAME>ex32_1.htm
<DESCRIPTION>EXHIBIT 32.1 JOHN HARDY
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0pt; text-align: right"><A HREF="f10k_equus.htm"><B>EXHIBIT 32.1</B></A></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; text-align: center; margin-bottom: 0"><B>CERTIFICATION PURSUANT TO </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECTION 906 OF THE SARBANES-OXLEY ACT OF
2002 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(18 U.S.C. SECTION 1350) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In connection with the accompanying Annual
Report of Equus Total Return, Inc. (the &ldquo;Company&rdquo;) on <A HREF="f10k_equus.htm">Form 10-K</A> for the period ended December&nbsp;31, 2011 (the &ldquo;Report&rdquo;),
I, John A. Hardy, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section&nbsp;1350, as adopted pursuant
to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, that:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(1)</TD><TD>To my knowledge, the Report fully complies with the requirements of Section&nbsp;13(a) or 15(d) of the Securities Exchange
Act of 1934 (15 U.S.C. 78m or 78o(d)); and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(2)</TD><TD>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
of the Company.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">Dated: March&nbsp;16, 2012</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ JOHN A. HARDY</P>
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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 12pt; text-indent: -12pt"><B>Chief Executive Officer</B></P></TD></TR>
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<TYPE>EX-32.2
<SEQUENCE>6
<FILENAME>ex32_2.htm
<DESCRIPTION>EXHIBIT 32.2 L'SHERYL HUDSON
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: right"><A HREF="f10k_equus.htm"><B>EXHIBIT 32.2</B></A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>CERTIFICATION PURSUANT TO </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECTION 906 OF THE SARBANES-OXLEY ACT OF
2002 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(18 U.S.C. SECTION 1350) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In connection with the accompanying Annual
Report of EQUUS TOTAL RETURN, INC. (the &ldquo;Company&rdquo;) on <A HREF="ex32_2.htm">Form 10-K</A> for the period ended December&nbsp;31, 2011 (the &ldquo;Report&rdquo;),
I, L&rsquo;Sheryl D. Hudson, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C Section&nbsp;1350, as
adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, that:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(1)</TD><TD>To my knowledge, the Report fully complies with the requirements of Section&nbsp;13(a) or 15(d) of the Securities Exchange
Act of 1934 (15 U.S.C. 78m or 78o(d)); and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(2)</TD><TD>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
of the Company.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">Dated: March&nbsp;16, 2012</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ L&rsquo;SHERYL D. HUDSON</P>
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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 12pt; text-indent: -12pt"><B>Chief Financial Officer</B></P></TD></TR>
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