<SEC-DOCUMENT>0001391609-13-000189.txt : 20130327
<SEC-HEADER>0001391609-13-000189.hdr.sgml : 20130327
<ACCEPTANCE-DATETIME>20130326201411
ACCESSION NUMBER:		0001391609-13-000189
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20121231
FILED AS OF DATE:		20130327
DATE AS OF CHANGE:		20130326

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:		13718063

	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>f10q_equus.htm
<DESCRIPTION>FORM 10-K EQUUS TOTAL RETURN, INC.
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt">&nbsp;</P>

<P STYLE="font: 14pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES </B></P>

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

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

<P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt">&nbsp;</P>

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

<P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-align: center"><B>For the year ended December&nbsp;31,
2012</B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 2.25pt; font: bold 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Wingdings"><B>&#168; </B></FONT></TD>
    <TD STYLE="padding-top: 2.25pt; font: bold 10pt/115% Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Commission File Number 814-00098</B></P>

<P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt">&nbsp;</P>

<P STYLE="font: 18pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Exact name of registrant as specified
in its charter) </B></P>

<P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Delaware</B></FONT></TD>
    <TD STYLE="font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>76-0345915</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(State or other jurisdiction of</B></P>
        <P STYLE="font: 7.5pt/normal 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/115% Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><B>(I.R.S. Employer Identification No.)</B></FONT></TD></TR>
<TR>
    <TD STYLE="font: 6pt/115% Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt/115% Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>8 Greenway Plaza, Suite 930, Houston, Texas</B></FONT></TD>
    <TD STYLE="font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>77046</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: bold 7.5pt/115% Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><B>(Address of principal executive offices)</B></FONT></TD>
    <TD STYLE="font: bold 7.5pt/115% Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><B>(Zip Code)</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-align: center"><B>(713) 529-0900 </B></P>

<P STYLE="font: 7.5pt/normal 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/normal Times New Roman, Times, Serif; margin: 0 0 5pt; text-align: center"><B>Securities registered pursuant to
Section&nbsp;12(b) of the Act: </B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Title of each class</B></FONT></TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Name of each exchange</B></P>
        <P STYLE="font: 10pt/normal 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/115% Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Common Stock</B></FONT></TD>
    <TD STYLE="font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>New York Stock Exchange</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal 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>

<P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 2.25pt 0 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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><FONT STYLE="font-family: Wingdings">&#168;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;
</FONT><FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 2.25pt 0 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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;Yes&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings">&#168;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;
</FONT><FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 2.25pt 0 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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><FONT STYLE="font-family: Wingdings">x</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;
</FONT><FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 2.25pt 0 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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><FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Large accelerated filer&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD STYLE="padding-left: 0.1in; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Accelerated filer&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Non-accelerated filer&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings">x</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"> (Do not check if a smaller reporting company)</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Smaller reporting company&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 2.25pt 0 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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><FONT STYLE="font-family: Wingdings">&#168;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;
</FONT><FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt/normal 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: $15,294,262 computed on the basis of $2.44 per share, closing price
of the common stock on the New York Stock Exchange on June&nbsp;30, 2012. 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 26, 2013. The net asset value of a share as of December&nbsp;31, 2012 was
$3.11</P>

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 2.25pt 0 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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><FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-indent: 24.5pt">Portions of the Proxy Statement
(to be filed) for the 2013 Annual Shareholder&rsquo;s meeting are incorporated by reference in Parts II and III.</P>


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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD STYLE="padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0"><B>Page</B></P>
        <P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt; text-align: center">&nbsp;</P></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_002">PART&nbsp;I</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 12pt; line-height: 115%; font-size: 4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_003">Item&nbsp;1</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Business</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_004">Item&nbsp;1A</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Risk Factors</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">9</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_005">Item&nbsp;1B</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Unresolved Staff Comments</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">17</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_006">Item&nbsp;2</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Properties</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">17</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_007">Item&nbsp;3</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Legal Proceedings</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">17</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_008">Item&nbsp;4</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Mine Safety Disclosures</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">18</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_009">PART&nbsp;II</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 12pt; line-height: 115%; font-size: 4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_010">Item&nbsp;5</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Market for Registrant&rsquo;s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity </FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif">Securities</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">18</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_011">Item&nbsp;6</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Selected Financial Data</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">20</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_012">Item&nbsp;7</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">20</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_023">Item&nbsp;7A</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Quantitative and Qualitative Information About Market Risk</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">33</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_013">Item&nbsp;8</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Financial Statements and Supplementary Data</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">34</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_024">Item&nbsp;9</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">59</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_025">Item&nbsp;9A</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Controls and Procedures</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">59</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_026">Item&nbsp;9B</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Other Information</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">59</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_027">PART&nbsp;III</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 12pt; line-height: 115%; font-size: 4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_028">Item&nbsp;10</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Directors and Executive Officers and Corporate Governance</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">60</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_029">Item&nbsp;11</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Executive Compensation</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">60</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_030">Item&nbsp;12</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">60</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_031">Item&nbsp;13</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Certain Relationships and Related Transactions and Director Independence</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">60</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_032">Item&nbsp;14</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Principal Accountant Fees and Services</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">60</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_033">PART&nbsp;IV</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 12pt; line-height: 115%; font-size: 4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_034">Item&nbsp;15</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Exhibits and Financial Statement Schedules</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">61</FONT></TD></TR>
</TABLE>
<P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><A NAME="a_002"></A><B>PART I </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0"><A NAME="a_003"></A><B>Item 1. <I>Business </I></B></P>

<P STYLE="font: 10pt/normal 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;  or 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. 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/normal 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 $5.0 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 bonds, subordinated 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/normal 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. 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 BDC and as a RIC, please see &ldquo;Business Development Company Requirements&rdquo;
and &ldquo;Regulated Investment Company Tax Status,&rdquo;
respectively.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 12pt 0 6pt; 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. Consistent with that strategy, the following transactions were consummated in 2012:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 10pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27.35pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-size: 10pt">(i)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">On May 30, 2012, we announced that, in exchange for $5.25 million
in cash, we had sold to ConGlobal Industries Holding, Inc. (&ldquo;ConGlobal&rdquo;), the Fund&rsquo;s 34.2% equity interest in
ConGlobal, together with the Fund&rsquo;s promissory note issued by ConGlobal and all interest as accrued.&nbsp;As a result of
a number of factors, including a decline in EBITDA from historical highs, together with the recent loss of two of ConGlobal&rsquo;s
key customer accounts in the Northwest, ConGlobal had advised us that it would be difficult for it to repay the note held by Equus,
due in December 2012, in the principal amount of $6.0 million plus accrued interest of approximately $1.9 million.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 6pt 63.35pt; text-align: left">The Equus note was subordinate
to the position of ConGlobal&rsquo;s senior lender and thus, ConGlobal was not required to pay us until the senior lender had been
fully paid. In addition, we had held this position for over 15 years. Principally, as a result of these factors, we wished to monetize
this position, and did not wish to grant further extensions to the maturity of the note, as we had done in the past. We worked
with ConGlobal to achieve a compromise which resulted in the closing of the transaction.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 6pt 63.35pt; text-align: justify"></P>

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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 6pt 63.35pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27.35pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-size: 10pt">(ii)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">On June 21, 2012, we announced that we had sold to Sovereign Business
Forms, Inc. (&ldquo;Sovereign&rdquo;), the Fund&rsquo;s 55% fully-diluted equity interest in Sovereign, together with the Fund&rsquo;s
promissory note issued by Sovereign and all interest as accrued, in exchange for $6.36 million in cash. Having held our interest
in Sovereign for approximately 16 years, we sought to monetize the Fund&rsquo;s investment. In May 2011 an investment banking firm
was retained to canvas potential strategic buyers, determine market interest and explore a possible sale of the company. No formal
offers in a valuation range acceptable to the Fund and/or Sovereign were received. Subsequently, Sovereign&rsquo;s management,
with the cooperation of the Fund, refinanced operations to obtain the capital to buy out the position held by Equus. </FONT></TD></TR></TABLE>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0 0 6pt 63pt; text-indent: -0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 27.35pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-size: 10pt">(iii)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">On October 15, 2012, we announced the sale of 1,500,000 of our
                                                                                                       1,573,666 shares of Orco Property Group S.A. (&ldquo;OPG&rdquo;) for net cash proceeds of &euro;3.8 million [$4.9 million]. The OPG
                                                                                                       shares                                                                                                        and
                                                                                                       &euro;1,200,790 10% notes of OPG due February 2018 (&ldquo;New OPG Notes&rdquo;) were received as a result of the
                                                                                                       conversion of our original purchase of 8,890 4% bonds due May 2012 of Orco Germany S.A., a controlled subsidiary of OPG. As
                                                                                                       of December 31, 2012, we continue to hold 73,666 OPG shares and the New OPG Notes. </FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0 0 6pt 63pt; text-indent: -0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 27.35pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-size: 10pt">(iv)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">On
December 27, 2012, we invested an additional $6.8 million in Equus Energy, LLC (&ldquo;Equus Energy&rdquo;), a wholly-owned subsidiary
of the Fund, for the purpose of additional working capital and to fund the purchase of $6.6 million in working interests in 150
producing and non-producing oil and gas wells, including associated development rights of approximately 23,000 acres situated
on 15 separate properties in Texas and Oklahoma. The working interests range from a <I>de minimus</I> amount to 50% of the leasehold
production of these wells. The wells are operated by a number of experienced operators, including a major multi-national oil and
gas conglomerate which has operating responsibility for approximately half of the producing well interests. The assets were purchased
from Warren American Oil Company, LLC, a Tulsa-based oil &amp; gas firm. </FONT></TD></TR>
</TABLE>



<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0 0 6pt 63pt; text-indent: -0.5in"></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">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. As a result of our endeavors in the energy sector, we also seek to purchase working interests and revenue
leasehold interests in oil and gas properties, although we remain open to exploring investment opportunities in a variety of other
sectors, such as real estate.&nbsp;&nbsp;As we grow and develop the Fund, we intend to include investments in progressively larger
enterprises.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; 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/normal Times New Roman, Times, Serif; margin: 12pt 0 0"><B>Investment Criteria </B></P>

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 63pt"><I>Management Assistance and Substantial Equity</I>.
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 or its equivalent. With regard to equity investments, we desire
to obtain a substantial investment position in portfolio companies. 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.</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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

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

<P STYLE="font: 10pt/normal 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/normal 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/normal 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>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 41px">&nbsp;</TD>
    <TD STYLE="width: 24px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-size: 11pt">&bull;</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Review of historical and prospective financial information including audits and budgets;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&bull;</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On-site visits;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&bull;</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Interviews with management, employees, customers and vendors of the potential portfolio company;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&bull;</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Review of existing loan documents, if any;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&bull;</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Background checks on members of management; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&bull;</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Research relating to the company, its management, industry, markets, products and services and competitors.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal 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/normal 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 assistance is required of a BDC 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/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

<P STYLE="font: 10pt/normal 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
their 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</P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">preferential rights granted to the Fund or otherwise
to increase our 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/normal Times New Roman, Times, Serif; margin: 12pt 0 0"><B>Disposition of Investments </B></P>

<P STYLE="font: 11pt/normal 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/normal Times New Roman, Times, Serif; margin: 12pt 0 0"><B>Current Portfolio Companies </B></P>

<P STYLE="font: 10pt/normal 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
Securities.&rdquo;</P>

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

<P STYLE="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The fair value of
investments for which no market exists (which includes 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/normal 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 or substantially declining 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/normal Times New Roman, Times, Serif; margin: 12pt 22.5pt 0 0; text-indent: 24pt">Our general intent is to
hold our loans to maturity when appraising our privately held debt investments. As such, we believe 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, we perform a yield analysis to determine if a debt security has been impaired.</P>

<P STYLE="font: 10pt/normal 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 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/normal 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>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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/normal 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 &ldquo;Barron&rsquo;s&rdquo; and &ldquo;The Wall Street Journal&rdquo;.</P>

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

<P STYLE="font: 10pt/normal 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 BDC.</P>

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Qualifying Assets</I>. As a
BDC, 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 our business are the following:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 BDC, 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 BDC either singly or as part of a group and an affiliated
person of the BDC 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 BDC&rsquo;s initial
investment, but subsequently did not meet the definition;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">cash, cash items, government securities, or high quality debt securities
maturing in one year or less from the time of investment.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt/normal 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 BDC 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/normal 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 BDC 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/normal 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</P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">(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 Investments for purposes of the BDC provisions of the 1940 Act.</P>

<P STYLE="font: 10pt/normal 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/normal 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/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>No Redemption Rights.</I> Since
we are a closed-end BDC, 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 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/normal 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/normal Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>Regulated Investment Company Tax Status </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We operate to qualify as a regulated
investment company (&quot;RIC&quot;) under Subchapter M of the Internal Revenue Code of 1986, as amended (the &quot;Code&quot;).
If we qualify as a RIC 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/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Generally, in order to maintain
our status as a RIC, we must (i)&nbsp;continue to qualify as a BDC; (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 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/normal 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/normal 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</P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">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; however, none have been necessary in recent years.</P>

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

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

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

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

<P STYLE="font: 10pt/normal 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 our shares, maintain proxy records and to process distributions. The
principal business office of our transfer agent is 6201 15th Avenue, 2nd Floor, Brooklyn, NY 11219.</P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In July 2012, 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/normal Times New Roman, Times, Serif; margin: 12pt 0 0"><B>Forward-Looking Statements </B></P>

<P STYLE="font: 10pt/normal 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/normal 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 we operate negatively
impacting our financial resources; (ii)&nbsp;certain of our 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 our 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;our investments in securities of
privately held companies may be illiquid which could affect out ability to realize a gain; (v)&nbsp;our 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;we
are dependent on external financing to grow our business; (vii)&nbsp;our ability to retain key management personnel; (viii)&nbsp;an
economic downturn or recession could impair our portfolio companies and therefore harm our operating results; (iv)&nbsp;our borrowing
arrangements impose certain restrictions; (x)&nbsp;changes in interest rates may affect our cost of capital and net operating income;
(xi)&nbsp;we cannot incur additional indebtedness unless the Fund maintains an asset coverage of at least 200%, which may affect
returns to our stockholders; (xii)&nbsp;we may fail to continue to qualify for our pass-through treatment as a RIC which could
have an effect on stockholder returns; (xiii)&nbsp;our 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 and Exchange Commission.
We caution 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/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

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

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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/normal 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: 11pt/normal Calibri, Helvetica, Sans-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: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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&rsquo;
actions and market conditions as well as general economic downturns;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-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: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt/normal 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: 11pt/normal Calibri, Helvetica, Sans-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: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-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: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">They may have difficulty accessing the capital
markets to meet future capital needs;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt/normal 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: 11pt/normal Calibri, Helvetica, Sans-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: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt/normal 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: 11pt/normal Calibri, Helvetica, Sans-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: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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.</FONT></TD></TR></TABLE>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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;Except for our holding of shares and notes  of OPG, 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;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;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;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;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>investments 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.</P>

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

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

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

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

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B><I>&nbsp;</I></B></P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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 a variety of sectors such as energy and real estate.&nbsp;Given recent economic events and changes in our Board 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;In order to implement our investment strategy, Management must analyze,
conduct due diligence, invest in, monitor and sell investment interests in industries in which many of them have not previously
been involved.&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;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;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;If we cannot achieve our investment objective successfully, the value of your investment
in our common stock could decline substantially.</P>

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We frequently invest in the equity securities
of our portfolio companies.&nbsp;Also, when we make a loan, we generally receive warrants to acquire stock issued by the
borrower.&nbsp;Ultimately, our goal is to sell these equity interests and realize gains.&nbsp;These equity interests
may not appreciate and, in fact, may depreciate in value.&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, 2012, several
of our portfolio investments had estimated fair values, based upon our valuation methodologies, significantly below the initial
cost of such investments.&nbsp;At December 31, 2012, the cost basis of our portfolio investments was $26.5&nbsp;million and
our estimated fair value was $9.2 million.&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;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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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;We cannot assure you that we will make, or have sufficient funds to make, any such follow-on
investments.&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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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;As a matter of policy, we generally have not initially invested more than 25% 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 of December 31,
2012, however, we would expect that any new investments may exceed this percentage for the immediate 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 25% of our net assets being invested in a single portfolio company at a particular time.</P>

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

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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;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;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;In addition,
contractual or practical limitations may restrict our ability to liquidate our securities in portfolio companies</P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Except for our holdings in respect of
OPG, our portfolio consists entirely of securities issued by privately-held companies.&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;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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Many of our portfolio companies have
incurred substantial debt in relation to their equity capital.&nbsp;Such indebtedness generally has a term that will require
that the balance of the loan be refinanced when it matures.&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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Leverage may impair the ability of our
portfolio companies to finance their future operations and capital needs.&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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We may utilize leverage for the Fund
or its subsidiaries 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 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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 yields on our investments and the cost of any loan would augment the</P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Our net assets have declined substantially
since 2008 and we have had net investment losses in four out of the past five years.</I></B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Our net assets have declined from $78.4
million at the end of 2008 to $32.9 million as of December 31, 2012.&nbsp;&nbsp;Moreover, we have had net investment losses in
four out of the past five years, with a net investment loss of $2.7 million for the year ended December 31, 2012.&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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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 under went certain changes in our Board and
Management.&nbsp;&nbsp;These changes 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><B><I>&nbsp;</I></B></P>

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

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

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

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

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

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

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">An economic downturn may adversely affect
companies having an enterprise value varying from $5 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 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>

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

<P STYLE="font: 10pt/normal 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/normal 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/normal 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>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

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

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 27pt 0 0; text-indent: 31.5pt"><FONT STYLE="font-family: Symbol">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9;<I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 &ldquo;senior&rdquo; 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.</FONT></P>

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

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 27pt 0 0; text-indent: 31.5pt"><FONT STYLE="font-family: Symbol">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9;<I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.</FONT></P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 27pt 0 0"><B><A NAME="a_005"></A>Item&nbsp; 1B. <I>Unresolved Staff Comments </I></B></P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 27pt 0 0"><A NAME="a_006"></A><B>Item&nbsp; 2. <I>Properties </I></B></P>

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

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><A NAME="a_007"></A><B>Item&nbsp; 3. <I>Legal Proceedings</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On April&nbsp;26, 2010, the Securities
and Exchange Commission (&ldquo;SEC&rdquo;) 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. We have fully cooperated with the SEC&rsquo;s request.</P>

<P STYLE="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In January 2006, we sold our 31.5%
ownership interest in Champion Window, Inc. (&ldquo;Champion&rdquo;), a portfolio company of the Fund, to Atrium Companies Inc.
(&ldquo;Atrium&rdquo;) pursuant to a Stock Purchase Agreement (&ldquo;SPA&rdquo;) dated December 22, 2005. The SPA contained certain
limited rights of indemnification for Atrium in connection with its purchase of such ownership interest.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Atrium filed suit in the District
Court of Harris County, Texas against two former officers of Atrium&rsquo;s subsidiary, Champion, alleging, amongst other matters,
that the former officers breached their fiduciary duties to Champion by hiring undocumented workers. This action was commenced
primarily as a result of an investigation by the U.S. Immigration and Customs Enforcement agency (&ldquo;ICE&rdquo;) into Atrium&rsquo;s
hiring practices. On March 12, 2012, to protect our interests, we filed a Petition in Intervention in the State Court Action seeking
a declaration from the court that Equus did not owe any obligation to indemnify Atrium or Champion for any penalties, costs or
fees associated with the investigation by ICE.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On March 16, 2012, Atrium and
Champion filed a claim with the American Arbitration Association in Dallas, Texas, against Equus and a number of the other sellers
under the SPA.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In the Arbitration Action, Atrium
and Champion seek damages arising from Equus&rsquo; and the other sellers&rsquo; indemnity obligations set forth in the SPA. Atrium
claims it is entitled to indemnification under the SPA for costs it has incurred in responding to an ongoing investigation by ICE.
Atrium entered into a Non-Prosecution Agreement with ICE. It appears that one condition of the Non-Prosecution Agreement required
Atrium to pay ICE $2,000,000. Atrium and Champion asserted two counts of breach of contract against Equus, both arising out of
the alleged obligation to indemnify Atrium and Champion pursuant to certain provisions of the SPA. Atrium and Champion also asserted
claims for fraudulent inducement against two former officers</P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">and directors of Champion. Through the arbitration,
Atrium and Champion seek to recover an unspecified amount in the form of alleged &ldquo;losses, damages, assessments, penalties,
interest, reasonable attorneys&rsquo; and accountants&rsquo; fees, settlement costs, and other costs and expenses arising directly
or indirectly out of or incident to,&rdquo; the alleged breach of the indemnity provisions in the SPA. As a consequence of their
fraudulent inducement claim against the two former officers and directors, Atrium and Champion alternatively seek equitable rescission
of the SPA and exemplary damages from the two former officers and directors.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Atrium and Champion have yet to
specify the amount of damages they seek from Equus or the other sellers pursuant to the alleged indemnity obligations under the
SPA. Atrium and Champion have disclosed the payment of $2 million to ICE to resolve the investigation and avoid prosecution for
their hiring practices.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We intend to vigorously contest
the claims and deny that the Fund owes any indemnity obligations to Atrium or Champion and further deny that the Fund is in any
way liable to Atrium or Champion. To the extent Atrium and Champion are able to establish a right to an indemnity, we will contest
the amount of the claimed indemnity, inasmuch as we believe (among other defenses) that the indemnity obligation can only exist,
if at all, with respect to damages arising as a direct and proximate result of employees who were hired prior to the closing date
of the 2006 sale of Champion and remained in continuous employment after the 2006 sale, and not to any employee who may have been
hired in the six years after the sale.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">While we believe the Atrium claim
is without merit and we intend to vigorously dispute the claim, there is a reasonable possibility of an adverse ruling which may
require us to indemnify Atrium. If we are required to indemnify Atrium and Champion, we estimate that such indemnity obligation
could vary from $2.0 - $3.0 million. Pursuant to the SPA, the indemnification obligation of Equus and the other sellers is several
and not joint, and any such indemnity, however uncertain, would likely be reduced proportionately to our percentage ownership in
Champion at the time of sale, which was 31.5% of Champion&rsquo;s shares outstanding.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On August 12, 2012, Paula Douglass
filed a lawsuit against the Fund and members of the Board of Directors in the District Court of Harris County, Texas. Ms. Douglass&rsquo;
complaint alleges various causes of action, including minority shareholder oppression, dilution, and breach of fiduciary duty,
and seeks unspecified damages and attorney&rsquo;s fees. We consider the lawsuit as being without merit and intend to defend the
matter vigorously.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 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, we do 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/normal Times New Roman, Times, Serif; margin: 0 27pt 0 0; text-indent: 31.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 27pt 0 0"><A NAME="a_008"></A><B>Item&nbsp; 4. <I>Mine Safety Disclosures</I></B></P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 27pt 0 0"><B><A NAME="a_009"></A>PART II </B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 27pt 0 0"><B><A NAME="a_010"></A>Item 5.<I> Market for Registrant&rsquo;s
Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securitie</I></B>s</P>

<P STYLE="font: 10pt/normal 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 3,100 stockholders as of December&nbsp;31,
2012, 806 of whom were registered holders. Registered holders do not include those stockholders whose stock has been issued in
street name. As of December&nbsp;31, 2012, our net asset value was $3.11&nbsp;per share of our common stock.</P>

<P STYLE="font: 10pt/normal 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, 2012, by quarter:</P>

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

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0 22.5pt 0 0; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; font: 8pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&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%; padding-left: 5.4pt">High</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.27</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.44</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">2.49</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.92</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 5.4pt">Low</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.96</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.96</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">2.05</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5.4pt">NAV</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.56</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.16</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.11</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt">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: 9pt/normal Sans-Serif; margin: 0 22.5pt 0 0; color: Red"><B></B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24.5pt">As a RIC, 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 90% 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% </P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0">non-deductible federal excise tax 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/normal 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/normal 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 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/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_011"></A>Item&nbsp;6. <I>Selected Financial Data </I></B></P>

<P STYLE="font: 10pt/normal 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, 2012 (in thousands, except per
share data):</P>

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

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; color: Red"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2012</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 5.4pt">(in thousands, except per share amounts)</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 STYLE="width: 35%; text-align: left; padding-left: 5.4pt">Total investment income</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">516</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">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">$</TD><TD STYLE="width: 9%; text-align: right">3,181</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Net investment (loss) income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,653</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(3,500</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Net realized gain (loss) of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,797</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">924</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Net change in unrealized appreciation (depreciation)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 5.4pt">of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">177</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Net 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>&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="text-align: left; padding-left: 5.4pt">from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(5,273</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">(19,662</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Distribution from net investment income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">&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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt">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">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(726</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(3,267</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Distribution of realized gains</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,065</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Total assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">33,283</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">124,063</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Total net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">32,875</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Net cash (used in) provided by operating activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">12,874</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt">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">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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 5.4pt">Weighted average shares outstanding, basic</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">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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5.4pt">&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: White">
    <TD STYLE="font-weight: bold; padding-left: 5.4pt">Per Share Data:</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: 1pt; padding-left: 5.4pt">&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">2012</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">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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Net investment (loss) income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.25</TD><TD STYLE="text-align: left">)</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Net realized gain (loss) of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.27</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">0.11</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Net change in unrealized appreciation (depreciation)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5.4pt">of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.02</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.99</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt">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: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt">operations per share, basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.50</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">(2.33</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Distribution from net investment income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">&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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt">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">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.09</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.39</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Distribution of realized gains</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.24</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Net asset value (including unrealized appreciation/depreciation)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.11</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.61</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4.29</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; color: Red"><B></B></P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_012"></A>Item 7.<I> Management&rsquo;s Discussion and Analysis
of Financial Condition and Results of Operations </I></B></P>

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

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

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24.5pt"><I>Investment Income</I>.
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 preferred 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</P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Expenses. </I>Currently, our
primary operating expenses include director fees and expenses, professional fees, compensation expense, and general and
administrative fees. During 2012, we did not incur any non-recurring expenses. During 2011, we incurred non-recurring expenses,
including settlement expenses, related to the various legal proceedings described in Item 3 above, of $0.3 million, as well
as 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.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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;Critical Accounting Policies &ndash; Valuation of Investments&rdquo; below. As of December 31, 2012, we had invested
28.1% of our net assets in securities of portfolio companies that constituted qualifying investments under the 1940 Act. At
that time, we had invested 1.2% by value in shares of common stock, 21.3% in membership interests in limited liability
companies, and 5.6% in various debt instruments.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Under certain circumstances, we make
follow-on investments in some of our portfolio companies. As of December&nbsp;31, 2012, we had no outstanding commitments to our
portfolio company investments.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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 2012 and 2011, 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>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Possible Share Repurchase.</I> As
a closed-end BDC, 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 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 our shares. We are not required to undertake any such share
repurchases, nor do we anticipate taking such action in 2013.</P>

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

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

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

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

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Thinly Traded
and Over-the-Counter Securities</I>&mdash;Generally, we value securities that are traded in the over-the-counter market or on
a stock exchange at the average of the prevailing bid and ask prices on the date of the relevant period end. However, we
may apply a discount to the market value of restricted or thinly traded public securities to reflect the impact that
these restrictions have on the value of these securities. We review factors, including the trading volume, total
securities outstanding and our percentage ownership of securities to determine whether the trading levels are active (Level
1) or inactive (Level 2) or unobservable (Level 3). As of December 31, 2012, these securities, consisting of our holdings in
the New OPG Notes, represented 15.4% of our investments in portfolio securities. We utilized independent pricing services
with certain of our fair value estimates. To corroborate &ldquo;bid/ask&rdquo; quotes from independent pricing services, we
perform a market-yield approach to validate prices obtained or obtain other evidence.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During the first twelve months after
an investment is made, we rely on 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, we consider 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, we consider 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. We allocate value to these securities based
on their relative priorities. For equity securities such as warrants, we may also incorporate alternative methodologies including
the Black-Scholes Option Pricing Model.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Market approach</B> &ndash; The market
approach typically employed by 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. We will
apply liquidity and other discounts it deems appropriate to equity valuations where applicable. We 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 24.5pt"><B>Income approach</B> &ndash;
The income approach typically utilized by 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. We will apply liquidity and other
discounts it deems appropriate to equity valuations where applicable.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Asset approach</B> &ndash; We consider
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) we
believe 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Our general intent is to hold our loans
to maturity when appraising our privately held debt investments. As such, we believe 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,
we perform a yield analysis to determine if a debt security has been impaired.&nbsp;</P>

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

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Because
of the inherent uncertainty of the valuation of portfolio securities which do not have readily ascertainable market
values, amounting to $9.0 million and $19.2 million as of December&nbsp;31, 2012 and 2011, 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, 2012, one of our portfolio investments, consisting of 73,666 ordinary shares of OPG, was
publicly listed on the NYSE Euronext Paris Exchange, along with &euro;1,200,790 in newly-issued 6-year OPG Notes</FONT>. <FONT STYLE="font-family: Times New Roman, Times, Serif">As
of December 31, 2011,we  held 8,890 4% bonds due May 2012 issued by Orco Germany S.A. were publicly listed on the Euro MTF
Market of the Luxemburg Stock Exchange. However, there had been no recent trading activity. </FONT></P>

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

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; 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, 2012, we
had a capital loss carry forward of $29.3 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

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

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

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

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

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">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.
These changes become effective for interim and annual periods beginning after December 15, 2011. We adopted this standard beginning
on January&nbsp;1, 2012.&nbsp;Our implementation of this standard did not have a material impact on our process for measuring fair
values, our financial position or our results of operations.</P>

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Overall economic conditions in the United
States have improved, albeit marginally.&nbsp; However, the economic recovery has been hampered by slower growth and persistent
high unemployment levels. The U.S. Congressional Budget Office is forecasting continuing sluggish growth for the remainder of 2013,
with a projected unemployment rate exceeding 7.5% at year end.</P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Market conditions for business
transactions including mergers and acquisitions and private equity investments improved throughout 2010 and continued
through 2012, as 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 three years and fund raising remains
significantly lower now than prior to the economic downturn.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Consistent with other companies in the
financial services sector, our performance has been adversely affected. Between December&nbsp;31, 2008 and December 31, 2012 our
net asset value declined from $9.16 per share to $3.11 per share.&nbsp; This further impacted the trading price of our common stock,
as it declined approximately 21.9% during 2010 and further declined 10.4% during 2011, but increased 5.36% during 2012. As of December
31, 2012, our common stock is trading at a 24.0% discount to our net asset value.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Over the past several years, we have
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 legacy and underperforming investment holdings.&nbsp; We believe these actions continue
to be necessary to protect capital and liquidity during this turbulent economic period in order to preserve and enhance shareholder
value. Because our Management is internalized, certain of our expenses should not increase commensurate with an increase in the
size of the Fund and, therefore, we expect to achieve efficiencies in our cost structure if we are able to grow the Fund.<BR>
&nbsp;</P>

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

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

<P STYLE="font: 10pt/normal 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/normal 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 twelve months.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31,
2012</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As of December&nbsp;31, 2012,
we had total assets of $33.3 million, of which $9.2 million were invested in portfolio investments and $23.7 million were invested
in cash and cash equivalents. Among our portfolio investments, $1.8 million (at fair value) or 5.6% of net asset value were in
the form of notes receivable from portfolio companies as of December&nbsp;31, 2012. We continue to impair certain promissory notes
issued by Spectrum Management, LLC, having a fair value of $0.4 million.</P>

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

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 24.5pt">As of December&nbsp;31, 2012, we
had no RIC borrowings or restricted cash.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Operating Activities.</I> We provided
$12.9 million in cash for operating activities in 2012. In 2012, we made investments in portfolio companies of $6.9 million and
paid fees to our advisers, directors, banks and others of $3.0 million, while realizing a loss of $2.8 million from the disposition
of portfolio securities.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Financing Activities.</I> We used
$6.0 million in cash from financing activities for 2012. We did not declare any dividends in 2012.</P>

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Financing Activities.</I> We
used $9.2 million in cash from financing activities for 2011. We issued 1,700,000 additional shares of our common stock at an
effective price of $4.29 per share. 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 and, on June 23,
2011, we received $1.6 million in cash in lieu of the 2,518 Bonds which were not delivered as required. We incurred a quarter-end
margin loan in the amount of $6.0 million to maintain the diversification requirement applicable to a RIC.</P>

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

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31, 2012
as compared to Year Ended December&nbsp;31, 2011</I></B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Total income from portfolio securities
remained relatively unchanged from 2011. However, there was a significant decline in interest bearing promissory notes during 2012,
with the sale of our interests in ConGlobal Industries Holding, Inc. and Sovereign Business Forms, Inc.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Professional fees increased to $1.3
million for 2012 from $1.2 million for 2011. These increases were due to the increases in legal fees associated with various legal
proceedings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">Compensation expense was $1.1&nbsp;million
for 2012 and $1.3 million in 2011, respectively. The $0.2 million decrease was largely due to the salary and accrued bonus for
our Chief Investment Officer, whose position was vacated in November 2011.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As a result of the factors described
above, net investment loss after expenses was $2.7 million for 2012 as compared to a net investment loss of $3.5 million for
2011.</P>

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

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

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

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>Summary of Portfolio Investment Activity</B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31, 2012</I></B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During the year ended December 31, 2012,
we received $6.4 million from the disposal of the Fund&rsquo;s 55% fully-diluted equity interest in Sovereign, together with the
Fund&rsquo;s promissory note and all interest as accrued interest. We also received $5.3 million from the disposal of the Fund&rsquo;s
34.2% fully equity interest in ConGlobal, together with the Fund&rsquo;s promissory note and all interest as accrued interest.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On May 7, 2012, holders of
72.5% of all OG bondholders approved a joint restructuring of certain bond debt of OG and its parent company, OPG. Pursuant
to such restructuring, approximately 84.5% of the Orco Germany bonds held by each bondholder were converted into <I>Obligations
Convertibles en Actions</I> (&ldquo;OCA&rdquo;) on May 9, 2012. The OCA were converted into an aggregate of 26,209,613
OPG shares which were delivered in two tranches. The first tranche, consisting of 18,361,540 OPG shares, was delivered in
May 2012, of which the Fund received 1,102,455 OPG shares. The second tranche, consisting of 7,848,073 OPG shares, was
received in October 2012. Also in October, the remaining 15.5% of the Orco Germany bonds held by each bondholder was
converted into 6-year New OPG Notes with a face value of &euro;20.0 million bearing cash and PIK interest each at 5% per
annum, which interest percentages may be reduced over time upon timely repayments of principal tranches during a four-year
period commencing in 2015. Of the total amount of New OPG Notes issued, Equus received New OPG Notes in the face amount
of &euro;1,200,790. <FONT STYLE="color: black">On October 15, 2012, we announced the sale of 1,500,000 of our 1,573,666
OPG shares, where we received net cash proceeds of </FONT>&euro;<FONT STYLE="color: black">3.8 million [$4.9 million]. As of December
31, 2012, we held 73,666 OPG shares, and </FONT>&euro;<FONT STYLE="color: black">1,200,790 New OPG Notes.</FONT></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During the year
ended December&nbsp;31, 2012, we had investment activity of $7.2 million in three  portfolio companies. <FONT STYLE="color: black">We
made a follow-on investment of $6.8 million in Equus Energy, LLC. </FONT>The restructuring of the Orco Germany bonds
noted above resulted in the capitalization of $0.3 million accrued interest received in the form of additional portfolio
securities (PIK). We capitalized legal and consulting expenses of $0.1 million relating to Spectrum Management.</P>

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

<P STYLE="font: 10pt/normal 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, 2012 (in thousands):</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font: bold 9pt 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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">New Investments</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font: bold 9pt 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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Cash</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Non-Cash</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Follow-On</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">PIK</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt 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="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Equus Energy, LLC</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">6,800</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">6,800</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt; width: 35%">Orco
    Property Group S.A.</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left"></TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left"></TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left"></TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left"></TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">301</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left"></TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">301</TD><TD STYLE="width: 1%; font: 9pt 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: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Spectrum Management, LLC</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">139</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">139</TD><TD STYLE="padding-bottom: 1pt; font: 9pt 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: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">6,939</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">301</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">7,240</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

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

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-indent: 24.5pt; color: Red"><B></B></P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During the year ended December 31,
2011, we received $0.4 million from Sovereign in the form of principal payments and a distribution from Equus Media Development
Company, LLC in the amount of $1.0 million. We sold our promissory notes in 1848 Capital Partners, LLC, Big Apple Entertainment
Partners, LLC, and London Bridge Entertainment Partners, Ltd (&ldquo;London Bridge&rdquo;) and certain
assets of Riptide Entertainment Partners, LLC (&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 $10.0 million,
with $9.8 million allocated to the promissory notes held by the Fund and $0.2 million to Riptide.&nbsp; We allocated the
proceeds to the </P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">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.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom"><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Investment Activity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom"><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">New Investments</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Existing Investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Cash</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Non-Cash</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Follow-On</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">PIK</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; 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: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Orco Germany S.A</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">67</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">3,016</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">3,083</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Spectrum Management, LLC</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">325</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">325</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Equus Energy, LLC</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">250</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">250</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 9pt; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">317</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">3,016</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">325</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">3,658</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

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

<P STYLE="font: 10pt/normal 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. (&ldquo;Trulite&rdquo;) 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/normal 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/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom"><TD STYLE="color: black; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="color: black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Investment Activity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom"><TD STYLE="color: black; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="color: black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">New Investments</TD><TD STYLE="color: black; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="color: black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Existing Investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="color: black; font-weight: bold; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="color: black; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Cash</TD><TD STYLE="color: black; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">PIK</TD><TD STYLE="color: black; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Follow-On</TD><TD STYLE="color: black; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">PIK</TD><TD STYLE="color: black; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; 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="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt; width: 35%">London Bridge Entertainment Partners Ltd</TD><TD STYLE="width: 2%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 9%; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 9%; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 9%; color: black; text-align: right">575</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 9%; color: black; text-align: right">148</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 9%; color: black; text-align: right">723</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Spectrum Management, LLC</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">425</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">425</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">1848 Capital Partners LLC</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">295</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">295</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Trulite, Inc.</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">200</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">200</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Big Apple Entertainment Partners LLC</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: black; text-align: right">121</TD><TD STYLE="padding-bottom: 1pt; color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: black; text-align: right">121</TD><TD STYLE="padding-bottom: 1pt; color: black; 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="color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; color: black; text-align: right">1,200</TD><TD STYLE="padding-bottom: 2.5pt; color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; color: black; text-align: right">564</TD><TD STYLE="padding-bottom: 2.5pt; color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; color: black; text-align: right">1,764</TD><TD STYLE="padding-bottom: 2.5pt; color: black; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On October&nbsp;1, 2010, we invested
$0.2 million in Spectrum 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, we 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/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">On July&nbsp;1, 2010, we
invested $0.6 million in London Bridge 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, 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/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31, 2012</I></B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During 2012, we realized net
capital losses of $2.8 million, including the following significant transactions:</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0 0 12pt; color: Red"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">Type</TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Realized Gain <BR>
(Loss)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt; width: 30%">ConGlobal Industries Holding, Inc.</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 25%; font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Shipping products and services</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="width: 12%; font: 9pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Control</FONT></TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 12%; font: 9pt Times New Roman, Times, Serif; text-align: right">(4,114</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Sovereign Business Forms, Inc.</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Business products and services</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Control</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(1,073</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Orco Property Group S.A.</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Real Estate</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Non-affiliate</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">2,318</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt; padding-bottom: 1pt">Various others</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">72</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">(2,797</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; color: Red"><B></B></P>

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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="color: black; font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 9pt">Portfolio Company</FONT></TD><TD STYLE="color: black; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="color: black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 9pt">Industry</FONT></TD><TD STYLE="color: black; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="color: black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 9pt">Type</FONT></TD><TD STYLE="color: black; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="color: black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 9pt">Realized
    Gain <BR>
    (Loss)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 42%; color: black; text-align: left; padding-left: 5.4pt"><FONT STYLE="font-size: 9pt">Riptide Entertainment,
    LLC</FONT></TD><TD STYLE="width: 1%; color: black"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 21%; color: black; text-align: left; padding-left: 5.4pt"><FONT STYLE="font-size: 9pt">Entertainment and
    leisure</FONT></TD><TD STYLE="width: 1%; color: black"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; color: black; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 15%; color: black; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif; color: black">Control</FONT></TD><TD STYLE="width: 1%; color: black; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; color: black"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; color: black; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="width: 15%; color: black; text-align: right"><FONT STYLE="font-size: 9pt">(10,074</FONT></TD><TD STYLE="width: 1%; color: black; text-align: left"><FONT STYLE="font-size: 9pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: black; text-align: left; padding-left: 5.4pt"><FONT STYLE="font-size: 9pt">London Bridge Entertainment Partners
    Ltd</FONT></TD><TD STYLE="color: black"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="color: black; text-align: left; padding-left: 5.4pt"><FONT STYLE="font-size: 9pt">Entertainment and leisure</FONT></TD><TD STYLE="color: black"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="color: black; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="color: black; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif; color: black">Non-affiliate</FONT></TD><TD STYLE="color: black; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="color: black"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="color: black; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="color: black; text-align: right"><FONT STYLE="font-size: 9pt">(992</FONT></TD><TD STYLE="color: black; text-align: left"><FONT STYLE="font-size: 9pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="color: black; text-align: left; padding-left: 5.4pt"><FONT STYLE="font-size: 9pt">RP&amp;C International Investments
    LLC</FONT></TD><TD STYLE="color: black"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="color: black; padding-left: 5.4pt"><FONT STYLE="font-size: 9pt">Healthcare</FONT></TD><TD STYLE="color: black"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="color: black; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="color: black; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif; color: black">Affiliate</FONT></TD><TD STYLE="color: black; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="color: black"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="color: black; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="color: black; text-align: right"><FONT STYLE="font-size: 9pt">138</FONT></TD><TD STYLE="color: black; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><FONT STYLE="font-size: 9pt">Various
    others</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 5.4pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="color: black; padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: black; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; color: black; text-align: right"><FONT STYLE="font-size: 9pt">(2</FONT></TD><TD STYLE="padding-bottom: 1pt; color: black; text-align: left"><FONT STYLE="font-size: 9pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 5.4pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 5.4pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="color: black; padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; color: black; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; color: black; text-align: right"><FONT STYLE="font-size: 9pt">(10,930</FONT></TD><TD STYLE="padding-bottom: 2.5pt; color: black; text-align: left"><FONT STYLE="font-size: 9pt">)</FONT></TD></TR>
</TABLE>

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

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

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

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

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December&nbsp;31, 2012</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 12pt 0; text-indent: 24.5pt">During 2012, we recorded a net
change in unrealized depreciation of&nbsp;$0.2 million, to a net unrealized depreciation of $17.2 million. Such change in depreciation
resulted primarily from the following changes:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp; (i)</FONT></TD>
    <TD STYLE="width: 2%; padding-left: 4.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 93%; padding-left: 4.4pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Transfer of unrealized depreciation to realized loss of ConGlobal of $1.6 million upon the divestiture of the investment.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;(ii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Transfer of unrealized depreciation to realized
        loss of Sovereign of $0.6 million upon the divestiture of the investment.</P>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(iii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">The restructuring of the 8,890 Orco Germany
        bonds resulted         in the Fund holding 1,573,666 ordinary shares of OPG and &euro;1,200,790 newly-issued 6-year OPG
        notes. The capitalization of $0.3         million accrued interest and the subsequent sale of 1.5 million shares of OPG
        shares in October 2012 resulted in a decrease in fair value of OPG of $1.8 million.</P>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(iv)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Decrease in the fair value of Equus Energy  of $0.2 million due to working capital expenditures.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

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

<P STYLE="font: 10pt/normal 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="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp; (i)</FONT></TD>
    <TD STYLE="width: 2%; padding-left: 4.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 93%; padding-left: 4.4pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Decline in fair market value of ConGlobal of $2.6 million due to the decline in operating performance.</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;(ii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="width: 93%">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Transfer of unrealized depreciation to
realized depreciation for London Bridge of $0.8 million due to the sale of the promissory note.&nbsp;</P></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(iii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="width: 93%">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Increase in the fair market value of  Orco
        Germany 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></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(iv)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Increase in the fair market value of PalletOne, Inc.  of $0.1 million due to steady improvement in operating performance and indications of value from independent third parties.</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp; (v)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Transfer of unrealized depreciation to realized depreciation for Riptide of $10.1 million due to the sale of the promissory notes and the winding up of the entity.</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(vi)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Transfer of unrealized appreciation to realized appreciation for RP&amp;C of $0.1 million due to the maturity of the investment.</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(vii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="width: 93%">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Increase in fair market value of Sovereign
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.&nbsp;</P></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(viii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="width: 93%">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Decrease in fair market value of Spectrum
of $1.4 million due to the decline in operating performance and the maturity of its funded debts which remain in default.&nbsp;</P></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp; (ix)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="width: 93%">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Decrease in the fair market value of Trulite 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/normal Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(i)</FONT></TD>
    <TD STYLE="width: 2%; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 4.4pt; width: 93%"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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></P></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(ii)</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 12pt; width: 2%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 our assets to reflect the holding period of the projects held by EMDC.</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(iii)</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Decline in fair market value of Infinia Corporation (&ldquo;Infinia&rdquo;) 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>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(iv)</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(v)</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; text-align: right; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(vi)</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 94%; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(vii)</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 10pt; width: 94%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(viii)</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 10pt; width: 94%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Subsequent to year-end, we sold our promissory notes in 1848, Big Apple, and London Bridge in a transaction which also combined all of the assets of Riptide.&nbsp; All of these assets were sold to CMAP 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/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>Portfolio Securities </B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During 2012, we made follow-on investments
in Equus Energy and OPG. As of December&nbsp;31, 2012, we had active investments in the following entities or portfolio companies:</P>

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">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 expire in May 2016. This package of investments represents a fully diluted
equity interest in Bradshaw of 18%.&nbsp;&nbsp;As of December 31, 2012, we valued this investment at $0.</P>

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We formed Equus Energy, 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 STYLE="color: black">On December 27, 2012 we invested an additional $6.8 million in Equus Energy for the purpose of
additional working capital and to fund the purchase of $6.6 million in working interests in 150 producing and non-producing oil
and gas wells, including associated development rights of approximately 23,000 acres situated on 15 separate properties in Texas
and Oklahoma. The working interests range from a <I>de minimus</I> amount to 50% of the leasehold production of these wells. The
wells are operated by a number of experienced operators, including a major multi-national oil and gas conglomerate which has operating
responsibility for approximately half of the producing well interests. The assets were purchased from Warren American Oil Company,
LLC, a Tulsa-based oil &amp; gas firm. </FONT>As of December 31, 2012, we valued Equus Energy at $6.9 million.</P>

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

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

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

<P STYLE="font: 10pt/normal 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, 2012, we valued EMDC at $0.1 million.</P>

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Infinia Corporation (&ldquo;Infinia&rdquo;),
based in Ogden, UT, 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 external fluids to operate.</P>

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

<P STYLE="font: 10pt/normal 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. &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 0.04% of the fully-diluted ownership of Infinia. As of December
31, 2012, we valued our investment in Infinia at $0.</P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Orco Property Group S.A.
(&ldquo;OPG&rdquo;) is a commercial and multi-family residential real estate holding company based in Paris. 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. 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.
During 2012, the Bonds were converted into 1,573,666 ordinary shares of OPG and &euro;1,200,790 in newly-issued 6-year OPG
notes. We subsequently sold 1,500,000 of our OPG shares in October 2012. As of December 31, 2012, we valued this investment
at $1.7 million.</P>

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

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

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

<P STYLE="font: 10pt/normal 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,
2012, our investment in PalletOne consisted of 350,000 shares of common stock, which represents a fully diluted equity interest
of approximately 18% and we valued our interest in PalletOne at $0.2 million. <I>See &ldquo;Subsequent Events&rdquo; where we
received $0.04 million in interest and principal payments.</I></P>

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

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

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

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

<P STYLE="font: 10pt/normal 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;The company</P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December 31, 2012, 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 $2.6 million, which are currently in default.&nbsp;&nbsp;We valued our investment in Spectrum at
$0.4 million, which represents a fully-diluted equity interest of 92%.</P>

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

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B><I>Trulite, Inc.</I></B></P>

<P STYLE="font: 10pt/normal 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/normal 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>, 2012.</P>

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

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

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

<P STYLE="font: 10pt/normal 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 $84,000 for the year ended December 31, 2012, $81,000 for the year ended December
31, 2011 and $70,000 for the year ended December 31, 2010.&nbsp;</P>

<P STYLE="font: 10pt/normal 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, 2012 were as follows (in thousands):</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 40%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 43%; color: black; text-align: left; vertical-align: bottom">2013</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 43%; color: black; text-align: right">56.0</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: left; vertical-align: bottom">2014</TD><TD STYLE="padding-bottom: 1pt; color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: black; text-align: right">42.0</TD><TD STYLE="padding-bottom: 1pt; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; color: black; text-align: right">98.0</TD><TD STYLE="padding-bottom: 2.5pt; color: black; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December&nbsp;31, 2012, we had
no outstanding commitments to our portfolio company investments.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Our Board terminated our external
advisory and administration agreements effective June&nbsp;30, 2009. Since that time, the Fund has been internally managed,
meaning that we 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 the Fund under a fee-based advisory agreement, or  a
third-party administrative organization charging the Fund for services rendered.</P>

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

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

<P STYLE="font: 10pt/normal 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.</P>

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

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

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On March 1, 2013, we received
a semi-annual interest payment of $0.03 million and a 5.75% partial principal payment of $9,000  in respect of our
&euro;1,200,790 [$1,575,420] notes of OPG that we received in October 2012.</P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><A NAME="a_023"></A><B>Item 7A. <I>Quantitative and Qualitative Disclosures
About Market Risk </I></B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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, in addition to our investment in OPG shares and the New OPG Notes, we 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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 &ldquo;Energy&rdquo; includes one portfolio company and was 20.8%
of the net asset value and 74.3% of our investments in portfolio company securities (at fair value) as of December&nbsp;31, 2012.
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/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 7.5pt/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

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

<P STYLE="font: 11pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.1pt"><B>Report
of Independent Registered Public Accounting Firm</B></FONT></P>

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

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

<P STYLE="font: 10pt/normal 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/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal 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) (the &ldquo;Fund&rdquo;), including the
schedules of investments, as of December 31, 2012 and 2011 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, 2012 and the selected per share data and ratios
for each of the five years in the period ended December&nbsp;31, 2012. These financial statements and selected per share data
and ratios are the responsibility of the management of the Fund. 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal 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. The Fund is not required to have, nor were we
engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Fund&rsquo;s internal control over financial reporting.
Accordingly, we express no opinion. An audit also 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, 2012 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal 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, 2012 and 2011 and the results of its operations
and its cash flows for each of the three years in the period ended December 31, 2012 and the selected per share data and ratios
for each of the five years in the period ended December 31, 2012, in conformity with accounting principles generally accepted in
the United States of America.</FONT></P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 4.5pt 0 0">Houston, Texas</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">March&nbsp;26, 2013</P>

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

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 10pt 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">December 31, 2012</TD><TD STYLE="font: bold 10pt 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">December 31, 2011</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif">(in thousands, except per share amounts)</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&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: 5.4pt">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 STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Investments in portfolio securities at fair value:</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="width: 56%; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Control investments (cost at $15,479 and $23,353 respectively)</TD><TD STYLE="width: 8%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 12%; font: 10pt Times New Roman, Times, Serif; text-align: right">7,419</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; 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: 12%; font: 10pt Times New Roman, Times, Serif; text-align: right">13,298</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; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Affiliate investments (cost at $350 and $350 respectively)</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">150</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">150</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; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Non-affiliate investments (cost at $10,625 and $12,878 respectively)</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">1,663</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">5,734</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; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments in portfolio securities at fair value</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">9,232</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">19,182</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; text-align: left; padding-left: 5.4pt">Cash and cash equivalents</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">23,687</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">16,813</TD><TD STYLE="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; text-align: left; padding-left: 5.4pt">Restricted cash and temporary cash investments</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">&mdash;&nbsp;&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">&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">6,060</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; text-align: left; padding-left: 5.4pt">Accounts receivable and other</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">71</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">91</TD><TD STYLE="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; text-align: left; padding-left: 5.4pt; padding-bottom: 1pt">Accrued interest receivable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">293</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">2,155</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</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">33,283</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">44,301</TD><TD STYLE="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; text-align: left; padding-left: 5.4pt">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: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities</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">214</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">114</TD><TD STYLE="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; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Accounts payable to related parties</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">194</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">39</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; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Borrowing under margin account</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">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">6,000</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; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities</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">408</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">6,153</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="padding-left: 5.4pt">&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="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">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: 1pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Net assets</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">32,875</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">38,148</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Net assets consist of:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Common stock, par value</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">10</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">10</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-left: 5.4pt">&nbsp;&nbsp;&nbsp;Capital in excess of par value</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">61,495</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">64,292</TD><TD STYLE="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; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Undistributed net investment losses</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">(11,408</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</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">(8,755</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Unrealized depreciation of portfolio securities, net</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">(17,222</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</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">(17,399</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net assets</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">32,875</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">38,148</TD><TD STYLE="padding-bottom: 2.5pt; 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: 2.5pt; padding-left: 5.4pt">Shares of common stock issued and outstanding, $.001 par value, 50,000 shares authorized</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">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">10,562</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">10,562</TD><TD STYLE="padding-bottom: 2.5pt; 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; padding-left: 5.4pt">Shares of preferred stock issued and outstanding, $.001 par value, 5,000 shares authorized</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; padding-left: 5.4pt">Net asset value per share</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">3.11</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">3.61</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/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt/normal 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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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Year Ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif">(in thousands, except per share amounts)</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">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>&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="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&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>&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: 50%; font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control investments</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right">358</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right">209</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right">848</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliate investments</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">5</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">52</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">157</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">295</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">1,992</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest and dividend income</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">515</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">509</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">2,892</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest from temporary cash investments</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">1</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">30</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">12</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment income</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">516</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">539</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">2,904</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5.4pt">&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="font: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">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>&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: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Professional fees</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">1,333</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">1,211</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">1,386</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Compensation expense</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">1,056</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">1,286</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">1,358</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Offering costs</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">428</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Director fees and expenses</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">449</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">393</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">357</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Settlement expense</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">320</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;General and administrative expense</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">167</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">207</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">157</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Mailing, printing and other expenses</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">150</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">176</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">342</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Taxes</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">12</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">14</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">38</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Interest expense</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">2</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">4</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">36</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">3,169</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">4,039</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">3,674</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5.4pt">&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="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Net investment loss</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(2,653</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(3,500</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(770</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">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>&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="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Control investments</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(5,187</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(10,074</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Affiliate investments</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">138</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Non-affiliate investments</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">2,318</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(992</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Temporary cash investments</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">72</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(2</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(7</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized loss</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(2,797</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(10,930</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(7</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5.4pt">&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="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Net unrealized 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>&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: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;End of period</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(17,222</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(17,399</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(27,300</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Beginning of period</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(17,399</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(27,300</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(15,227</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Net change in unrealized depreciation of portfolio securities</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">177</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">9,901</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(12,073</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 9pt; padding-left: 5.4pt">&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="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Net decrease in net assets resulting from operations</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">(5,273</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">(4,529</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">(12,850</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Net decrease in net assets resulting from operations per share:</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="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Basic and diluted</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">(0.50</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">(0.45</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">(1.45</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">Weighted average shares outstanding:</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="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Basic and diluted</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">10,562</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">10,049</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">8,862</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

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

<P STYLE="font: 10pt/normal 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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    <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: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Year Ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif">(in thousands)</TD><TD STYLE="font: bold 10pt 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">2012</TD><TD STYLE="font: bold 10pt 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">2011</TD><TD STYLE="font: bold 10pt 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">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 50%; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Net decrease in net assets resulting from operations</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">(5,273</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 5%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">(4,529</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 5%; 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: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">(12,850</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 5.4pt">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>&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: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares issued for portfolio securities</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">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">4,626</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">&mdash;&nbsp;&nbsp;</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; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Net increase in net assets resulting from capital share transactions</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">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">4,626</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">&mdash;&nbsp;&nbsp;</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: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Increase (decrease) in net assets</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">(5,273</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</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">97</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">(12,850</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Net assets at beginning of period</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">38,148</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">38,051</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">50,901</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: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Net assets at end of period</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">32,875</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">38,148</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">38,051</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

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

<P STYLE="font: 10pt/normal 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/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_017"></A><B>STATEMENTS OF CASH FLOWS </B></P>

<P STYLE="font: 9pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Year Ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif">(in thousands)</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Reconciliation of decrease in net assets resulting from operations to net cash</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="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;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>&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="width: 58%; font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Net decrease in net assets resulting from operations</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right">(5,273</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right">(4,529</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right">(12,850</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Adjustments to reconcile net decrease in net assets resulting from operations to net cash</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="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;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>&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="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Net realized loss</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">2,797</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">10,930</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">7</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Net change in
    unrealized (depreciation) appreciation of portfolio securities</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(177</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(9,901</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">12,073</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">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: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Purchase of portfolio securities</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(6,939</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(642</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(1,200</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Net proceeds from dispositions of portfolio securities</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">8,952</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">10,730</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Principal payments received from portfolio securities</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">5,618</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">379</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">4,440</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Decrease in deferred offering costs</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">428</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Cash settlement of collateral</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">1,610</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Sales of temporary cash investments, net</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">6,060</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">9,090</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">15,142</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;(Increase) decrease in accounts receivable and other</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">20</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">182</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(226</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;(Increase) decrease in accrued interest receivable</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">1,561</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">569</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(1,083</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Increase (decrease) in accounts payable and accrued liabilities</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">100</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(231</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">238</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Increase (decrease) in accounts payable-related parties</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">155</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(19</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">58</TD><TD STYLE="padding-bottom: 1pt; font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Net cash provided by operating activities</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">12,874</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">18,596</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">16,599</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">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 STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Borrowings under margin account</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">8,000</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">34,000</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">70,999</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Repayments under margin account</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(14,000</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(43,000</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(85,998</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Deferred offering costs</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(165</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(263</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(6,000</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(9,165</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(15,262</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Net increase in cash and cash equivalents</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">6,874</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">9,431</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">1,337</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Cash and cash equivalents at beginning of period</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">16,813</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">7,382</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">6,045</TD><TD STYLE="padding-bottom: 1pt; font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Cash and cash equivalents at end of period</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">23,687</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">16,813</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">7,382</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">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: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Shares issued in lieu of cash for portfolio securities</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">4,626</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Accrued interest or dividends exchanged for portfolio securities</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">301</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">564</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">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: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Interest paid</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">1</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">6</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">56</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Income taxes paid</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">12</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">14</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">38</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 9pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt/normal 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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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_018"></A><B>SELECTED PER SHARE DATA AND RATIOS
</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="19" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Year ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2010</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2009</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2008</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Investment income</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">0.05</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">0.05</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">0.33</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">0.43</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">0.38</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; padding-left: 5.4pt">Expenses</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">0.30</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">0.40</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">0.42</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">0.41</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">0.46</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5.4pt">&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: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Net investment income (loss)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.25</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.35</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.09</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">0.02</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.08</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Net realized gain (loss)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.27</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(1.09</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(1.77</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">0.11</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Net change
    in     unrealized depreciation of
    portfolio securities</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">0.02</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">0.99</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(1.36</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(1.38</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(2.36</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Net decrease in net assets
    resulting from operations</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.50</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.45</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(1.45</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(3.13</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(2.33</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">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>&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="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Distributions from net investment income</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.02</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Return of capital distribution</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.09</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.39</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Distributions of realized gains</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.24</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Share repurchase</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">0.36</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Shares issued for portfolio securities</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.16</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Dilutive effect of shares issued</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(0.07</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(0.18</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(0.53</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Decrease in net assets resulting from capital transactions</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(0.23</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(0.29</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(0.80</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Net decrease in net assets</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.50</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.68</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(1.45</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(3.42</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(3.13</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Net assets at beginning of period</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">3.61</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">4.29</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">5.74</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">9.16</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">12.29</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Net assets at end of period, basic and diluted</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">3.11</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">3.61</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">4.29</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">5.74</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">9.16</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt 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: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">Weighted average number of shares outstanding during period,</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 STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;in thousands</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">10,562</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">10,049</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">8,862</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">8,790</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">8,429</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">Market price per share:</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 STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Beginning of period</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">2.24</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">2.50</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">3.20</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">4.30</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">6.31</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;End of period</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">2.36</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">2.24</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">2.50</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">3.20</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">4.30</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">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>&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="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Dividends declared</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">0.11</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">0.63</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Ratio of expenses to average net assets</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">8.93</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">10.60</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">8.26</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">5.53</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">4.29</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Ratio of net investment gain (loss) to average net assets</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(7.47</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(9.19</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(1.73</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">0.30</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.79</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Ratio of net decrease in net assets resulting from operations to average net assets</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(14.85</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(11.89</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(28.89</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(42.57</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(21.65</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;Total return on market price <SUP>(1)</SUP></FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">5.36</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(10.40</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(21.88</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(23.08</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(21.84</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%)</TD></TR>
</TABLE>

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

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

<P STYLE="font: 11pt/normal 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></P>

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

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

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

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

<P STYLE="font: 10pt/normal 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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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_019"></A><B>SCHEDULE OF INVESTMENTS </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER&nbsp;31, 2012</B></P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
<TR STYLE="background-color: White">
    <TD NOWRAP STYLE="width: 25%; padding-right: 5.4pt; padding-left: 0; font-weight: bold; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Name&nbsp;and&nbsp;Location&nbsp;of </B></FONT></TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Date&nbsp;of&nbsp;Initial </B></FONT></TD>
    <TD NOWRAP STYLE="width: 20%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Cost of </B></FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Fair </B></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 0; font-weight: bold; line-height: 115%; font-size: 7pt; text-decoration: underline"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B><U>Portfolio&nbsp;Company </U></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-decoration: underline; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B><U>Industry </U></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-decoration: underline; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B><U>Investment </U></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-decoration: underline; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B><U>Investment </U></B></FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-decoration: underline; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B><U>Principal </U></B></FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-decoration: underline; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B><U>Investment </U></B></FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-decoration: none; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B><U>Value<SUP>(</SUP></U><SUP>1)</SUP></B></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 0; font-weight: bold; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Control
    investments: Majority-owned <SUP>(3)</SUP>: </B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: bold 7pt/115% Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: bold 7pt/115% Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: bold 7pt/115% Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.4pt; padding-left: 0; border-bottom: Black 1pt solid">
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">Equus Energy, LLC</P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">Houston, TX</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt; border-bottom: Black 1pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Energy </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%; font-size: 7pt; border-bottom: Black 1pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">December 2011</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt; border-bottom: Black 1pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Member interest (100%) </FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt; border-bottom: Black 1pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">7,050
</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt; border-bottom: Black 1pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">6,855
</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 5.4pt; padding-left: 0; border-bottom: Black 1pt solid">
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">Equus Media Development Company, LLC</P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">Houston, TX</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt; border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Media </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%; font-size: 7pt; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">January 2007 </FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt; border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Member interest (100%) </FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">3,000 </FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">146 </FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.4pt; padding-left: 0">
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">Spectrum Management, LLC</P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">Carrolton, TX</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt; text-align: left; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Business products and services </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: top">
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">December&nbsp;1999</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">285,000 units of Class&nbsp;A member interest (92.1%/82.5% fully diluted) </FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">2,850 </FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">- </FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">16%
    subordinated promissory notes due 11/11<SUP>(5)</SUP> </FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt">2,579</TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">2,579 </FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt">418</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">5,429 </FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt">418</TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="4" STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 0; font-weight: bold; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Total Control investments: Majority-owned (represents 80.4% of total investments at fair value) </B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: right"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B> 15,479</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: right"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>7,419</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 0; font-weight: bold; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Affiliate
    Investments <SUP>(4)</SUP>: </B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 5.4pt; padding-left: 0; border-bottom: Black 1pt solid">
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">PalletOne, Inc.</P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">Bartow, FL</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt; border-bottom: Black 1pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Shipping products and services </FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%; font-size: 7pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">October 2001 </FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt; text-align: left; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">350,000&nbsp;shares&nbsp;of&nbsp;common stock (18.70%) </FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">350
</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">150
</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-bottom: Black 1pt solid; line-height: 115%; font-size: 11pt; text-align: left; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Total Affiliate Investments (represents 1.6% of total investments at fair value) </B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: right"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>350
</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: right"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>150
</B></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 0; font-weight: bold; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Non-Affiliate Investments (less than 5% owned):</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 0">
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">The Bradshaw Group</P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">Richardson, TX</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Business products and services</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">May 2000</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">576,828&nbsp;Class&nbsp;B&nbsp;shares&nbsp;(12.25%)</P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">preferred stock</P></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">1,795
</FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">38,750 Class C shares preferred stock</FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">- </FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">- </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">788,649 Class D shares 15% preferred stock</FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">- </FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">- </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">2,218,109 Class E shares 8% preferred stock</FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">- </FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">- </FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Warrant to buy 2,229,450 shares of common stock through 5/16</FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">- </FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">- </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">1,795</FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">- </FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 0">
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">Infinia Corporation</P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">Ogden, UT</P></TD>
    <TD STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt; text-align: left; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Alternative energy</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%; font-size: 7pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">June 2007</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">115,180 shares common stock (0.06%)</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">8,000</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">- </FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Option to purchase 16,000 shares of common stock at $6.50 per share through 12/12</FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">- </FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">- </FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">8,000</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">- </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 0">
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">Orco Property Group S.A.</P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">Paris, France</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Real estate</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">April 2011</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">73,666 shares common stock</FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">125</FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">238</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">10%
Promissory note due 2/18<SUP> (2)</SUP></FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">705
</FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">705</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">1,425 </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">830</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">1,663 </FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 0">
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">Trulite, Inc.</P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">Columbia, SC</P></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt; text-align: left; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Alternative energy</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%; font-size: 7pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">August 2008</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Warrants to buy 8,934,211 shares of common stock at $0.01 - $0.38 per share through 11/15</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">- </FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">- </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 0; font-weight: bold; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Total Non-Affiliate Investments (represents 18.0% of total investments at fair value)</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: right"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>10,625</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: right"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>1,663</B></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 0; font-weight: bold; line-height: 115%; font-size: 7pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Total Investment in Portfolio Securities</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>26,454</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 7pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>9,232</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><SUP>&nbsp;</SUP></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></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>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>(4)</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>(5)</SUP></TD><TD>Non-income producing.</TD></TR></TABLE>






<P STYLE="font: 7.5pt 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">The accompanying notes are an integral
part of these financial statements.</P>

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

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER&nbsp;31, 2012</B></P>

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

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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 100% of the total value of the investments in portfolio securities as of December&nbsp;31, 2012.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Our investments in portfolio securities
consist of the following types of securities as of December&nbsp;31, 2012 (in thousands):</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Type of Securities</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Cost</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">Fair Value as Percentage of</P>
                                                                                                                             <P STYLE="margin-top: 0; margin-bottom: 0">Net Assets</P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%; font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Limited liability company investments</TD><TD STYLE="width: 5%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right">12,900</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right">7,001</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right">21.3</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Secured and subordinated debt</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">3,284</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">1,843</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">5.6</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Common stock</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">8,475</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">388</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">1.2</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt; padding-bottom: 1pt">Preferred stock</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">1,795</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">0.0</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt; vertical-align: bottom">Total</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">26,454</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">9,232</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">28.1</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Interest payments are
being received and/or accrued on notes with a fair value of $1.4 million, while accrued interest has been impaired on notes
receivable included in secured and subordinated debt with a fair value of $0.4 million.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The following is a summary by industry
of our investments in portfolio securities as of December&nbsp;31, 2012 (in thousands):</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 80%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>Fair
    Value as Percentage of Net Assets</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; font: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">Energy</TD><TD STYLE="width: 8%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 12%; font: 9pt Times New Roman, Times, Serif; text-align: right">6,855</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; font: 9pt Times New Roman, Times, Serif; text-align: right">20.8</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Real estate</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">1,663</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">5.1</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Business products and services</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">418</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">1.3</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Shipping products and services</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">150</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">0.5</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">Media</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">146</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">0.4</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt; padding-bottom: 1pt">Alternative energy</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">0.0</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; padding-left: 5.4pt">Total</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">9,232</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">28.1</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
</TABLE>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 1.25in">&nbsp;</P>

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

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

<P STYLE="font: 10pt/normal 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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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
<TR STYLE="background-color: White">
    <TD STYLE="width: 25%; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Name&nbsp;and&nbsp;Location&nbsp;of&nbsp;</B></FONT></TD>
    <TD STYLE="width: 10%; font: 11pt/115% Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 12%; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>&nbsp;Date&nbsp;of&nbsp;Initial&nbsp;</B></FONT></TD>
    <TD STYLE="width: 20%; font: 11pt/115% Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 10%; font: 11pt/115% Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 10%; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Cost
    of</B></FONT></TD>
    <TD STYLE="width: 1%; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 10%; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Fair</B></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-decoration: underline"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B><U>Portfolio&nbsp;Company&nbsp;</U></B></FONT></TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-decoration: underline; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B><U>&nbsp;Industry&nbsp;</U></B></FONT></TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-decoration: underline; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B><U>&nbsp;Investment&nbsp;</U></B></FONT></TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-decoration: underline; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B><U>&nbsp;Investment&nbsp;</U></B></FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-decoration: underline; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B><U>Principal</U></B></FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-decoration: underline; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B><U>Investment</U></B></FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-decoration: none; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B><U>Value</U><SUP>(1)</SUP></B></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="5" STYLE="font-style: italic; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Control
    investments:&nbsp; Majority-owned <SUP>(5)</SUP>:&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: bold 11pt/115% Arial, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: bold 11pt/115% Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: bold 11pt/115% Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Equus
    Energy, LLC </FONT><BR>
    <FONT STYLE="font: 7pt Times New Roman, Times, Serif">Houston, TX</FONT>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Energy&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">December
    2011</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Member
    interest (100%)&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">250&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">236&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Equus
    Media Development Company, LLC</FONT><BR>
    <FONT STYLE="font: 7pt Times New Roman, Times, Serif">Houston, TX</FONT>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: left; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Media&nbsp;</FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">January
    2007&nbsp;</FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: left; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Member
    interest (100%)&nbsp;</FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">3,000&nbsp;&nbsp;</FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">163&nbsp;&nbsp;</FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Sovereign Business Forms,
    Inc. </FONT><BR>
    <FONT STYLE="font: 7pt Times New Roman, Times, Serif">Houston, TX</FONT>&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Business products and
    services&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;August
    1996&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">1,214,630 shares of common
    stock (64.67% / 55.00% fully diluted)&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">5,080&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">4,488&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">12% subordinated promissory
    notes due </FONT><BR>
    <FONT STYLE="font: 7pt Times New Roman, Times, Serif">5/13<SUP> (2)</SUP>&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">2,363&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">2,363&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">2,363&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">7,443&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">6,851&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: left; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Spectrum
    Management, LLC</FONT><BR>
    <FONT STYLE="font: 7pt Times New Roman, Times, Serif">Carrolton, TX</FONT>&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Business products and
    services&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;December&nbsp;1999&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">285,000 units of Class&nbsp;A
    member interest (92.1% / 82.5% fully diluted)&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">2,850&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">16% subordinated promissory
    notes due </FONT><BR>
    <FONT STYLE="font: 7pt Times New Roman, Times, Serif">11/11<SUP> (3)(4)</SUP>&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">2,440&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">2,440&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">319&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">5,290&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">319&nbsp;&nbsp;&nbsp;</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; border-top: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Total
    Control investments: Majority-owned (represents 30.1% of total investments at fair value)&nbsp;</B></FONT></TD>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>15,983&nbsp;&nbsp;</B></FONT></TD>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>7,569&nbsp;&nbsp;</B></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="4" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Control
    Investments: Non-majority owned<SUP>(6)</SUP>:&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">ConGlobal Industries
    Holding, Inc.</FONT><BR>
    <FONT STYLE="font: 7pt Times New Roman, Times, Serif">San Ramon, CA&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Shipping products and
    services&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;February
    1997&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">24,397,303 shares of
    common stock (34.2%)&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">1,370&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">7% subordinated promissory
    note due 12/12<SUP>(3)</SUP>&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">6,000&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">6,000&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">5,729&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">7,370&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">5,729&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="4" STYLE="font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Total
    Control Investments: Non-majority owned (represents 22.7% of total investments at fair value)&nbsp;</B></FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>7,370&nbsp;&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>5,729&nbsp;&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-top: windowtext 1pt solid; border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Total
    Control Investments: (represents 52.8% of total investments at fair value)&nbsp;</B></FONT></TD>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>23,353&nbsp;&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>13,298&nbsp;&nbsp;</B></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Affiliate
    Investments <SUP>(7)</SUP>:&nbsp;&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">PalletOne, Inc. </FONT><BR>
    <FONT STYLE="font: 7pt Times New Roman, Times, Serif">Bartow, FL&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Shipping products and
    services&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;October
    2001&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">350,000&nbsp;shares&nbsp;of&nbsp;common
    stock (18.70%)&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">350&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">150&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="4" STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Total
    Affiliate Investments (represents 0.6% of total investments at fair value)&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>350&nbsp;&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>150&nbsp;&nbsp;</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt/normal 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/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

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

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

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 25%; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Name&nbsp;and&nbsp;Location&nbsp;of</B></FONT></TD>
    <TD STYLE="width: 10%; font: 11pt/115% Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="width: 12%; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Date&nbsp;of&nbsp;Initial</B></FONT></TD>
    <TD STYLE="width: 20%; font: 11pt/115% Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="width: 10%; font: 11pt/115% Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="width: 10%; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center; vertical-align: bottom"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Cost of</B></FONT></TD>
    <TD STYLE="width: 1%; line-height: 115%; font-size: 11pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="width: 10%; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center; vertical-align: bottom"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Fair</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-decoration: underline"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B><U>Portfolio&nbsp;Company</U></B></FONT></TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-decoration: underline; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B><U>Industry</U></B></FONT></TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-decoration: underline; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B><U>Investment</U></B></FONT></TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-decoration: underline; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B><U>Investment</U></B></FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-decoration: underline; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B><U>Principal</U></B></FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-decoration: underline; text-align: center; vertical-align: bottom"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B><U>Investment</U></B></FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-decoration: none; text-align: center; vertical-align: bottom"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B><U>Value</U><SUP>(1)</SUP></B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="font-style: italic; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Non-Affiliate Investments (less than 5% owned):</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">The Bradshaw Group<BR>
 Richardson, TX</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Business products and services</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">May 2000</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">576,828&nbsp;Class&nbsp;B&nbsp;shares&nbsp;(12.25%)&nbsp;preferred stock</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">1,795&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">38,750 Class C shares preferred stock</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">788,649 Class D shares 15% preferred stock</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">2,218,109 Class E shares 8% preferred stock</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Warrant to buy 2,229,450 shares of common stock through 5/16</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-top: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">1,795&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; border-top: black 1pt solid; line-height: 115%; font-size: 11pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-top: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: windowtext 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Infinia Corporation</FONT><BR>
<FONT STYLE="font: 8pt Times New Roman, Times, Serif">Kennewick, WA</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Alternative energy</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">June 2007</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">115,180 shares common stock (0.13%)</FONT></TD>
    <TD STYLE="border-top: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-top: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">8,000&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-top: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-top: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Option to purchase 16,000 shares of common stock at $6.50 per share through 12/12</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: center; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">8,000&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Orco Germany S.A. </FONT><BR>
<FONT STYLE="font: 8pt Times New Roman, Times, Serif">Berlin, Germany</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Real estate</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">April 2011</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">8,890 4% Corporate Bonds due 5/12</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">8,113&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">3,083&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">5,734&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Trulite, Inc. </FONT><BR>
<FONT STYLE="font: 8pt Times New Roman, Times, Serif">Columbia, SC</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Alternative energy</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">August 2008</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Warrants to buy 8,934,211 shares of common stock at $0.01 - $0.38 per share through 11/15</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">-&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Total Non-Affiliate Investments (represents 22.8% of total investments at fair value)</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-top: black 1pt solid; border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>12,878&nbsp;&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>5,734&nbsp;&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Total Investment in Portfolio Securities</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>36,581&nbsp;&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>19,182&nbsp;&nbsp;</B></FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Temporary Cash Investments</B></FONT></TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">U.S. Treasury Bill <SUP>(8)</SUP></FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Government</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">December 2011</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">UST 0% due 3/12</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">6,000&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">6,000&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%; font-size: 11pt; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">6,000&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Total Temporary Cash Investments (represents 23.8% of total investments at fair value)</B></FONT></TD>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-top: black 1pt solid; border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>6,000&nbsp;&nbsp;</B></FONT></TD>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>6,000&nbsp;&nbsp;</B></FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Total Investments</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>42,581&nbsp;&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: right; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>25,182&nbsp;&nbsp;</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></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/normal Times New Roman, Times, Serif; margin: 0 0 0 18.35pt; text-indent: -18.35pt"><BR>
<BR>
<BR>
</P>

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

<P STYLE="font: 10pt/normal 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/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

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

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

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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Type of Securities</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Cost</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">Fair Value as Percentage of</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Net Assets</P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Secured and subordinated debt</TD><TD STYLE="width: 5%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">13,886</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">14,145</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">37.1</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Common stock</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">14,800</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">4,638</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">12.1</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Limited liability company investments</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">6,100</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">399</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">1.0</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Preferred stock</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">1,795</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">0</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt; vertical-align: bottom">Total</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">36,581</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">19,182</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">50.2</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">%</TD></TR>
</TABLE>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 80%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>Fair</B></FONT>
    Value as Percentage of Net Assets</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Business products and services</TD><TD STYLE="width: 8%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 12%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">7,170</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">18.8</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Shipping products and services</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">5,879</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">15.4</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Real estate</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">5,734</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">15.0</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-left: 5.4pt">Energy</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">236</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">0.6</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-left: 5.4pt">Media</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">163</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">0.4</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt; padding-left: 5.4pt">Alternative
    energy </TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">0.0</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt; padding-left: 5.4pt">Total</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">19,182</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">50.2</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">%</TD></TR>
</TABLE>

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

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

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

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

<P STYLE="font: 10pt/normal 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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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_022"></A>NOTES TO FINANCIAL STATEMENTS </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER 31, 2012, 2011 AND 2010</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0"><B>(1) ORGANIZATION AND BUSINESS PURPOSE </B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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 $5.0 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We elected to be treated as a BDC 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 certain income-producing investments or 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 these
income-producing investments or of any LLC (or other pass-through entity) portfolio investment, as the case may be, 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(2) LIQUIDITY AND FINANCING ARRANGEMENTS </B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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, 2013.</P>

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

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December&nbsp;31, 2012, we had
cash and cash equivalents of $23.7 million. We had $9.2 million of our net assets of $32.9 million invested in portfolio securities.</P>

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

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December 31, 2012, 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>RIC Borrowings and Temporary Cash
Investments</B>&mdash;During 2012 and 2011, 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 24.5pt">We had no RIC borrowings or restricted
cash as of December 31, 2012.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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, 2012 and the total amount borrowed was repaid at that time.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Economic Conditions</B>&mdash;Economic
conditions since the second quarter of 2008 and market dislocations have 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 2012 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 beginning in 2010 to provide necessary liquidity
included monetizations and the utilization of non-cash resources of the Fund to make portfolio investments. Although there can
be no assurances that such initiatives will be sufficient, we believe we have sufficient liquidity to meet our 2013 operating requirements.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(3) SIGNIFICANT ACCOUNTING POLICIES </B></P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Use of Estimates</B>&mdash;The
preparation of financial statements in accordance with GAAP requires 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

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

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

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Thinly Traded and Over-the-Counter
Securities</I>&mdash;Generally, we value securities that are traded in the over-the-counter market or on a stock exchange at the
average of the prevailing bid and ask prices on the date of the relevant period end. However, we may apply a discount to the market
value of restricted or thinly traded public securities to reflect the impact that these restrictions have on the value of these
securities. We review factors, including the trading volume, total securities outstanding and our percentage ownership of securities
to determine whether the trading levels are active (Level 1) or inactive (Level 2) or unobservable (Level 3). As of December 31,
2012, these securities represented 15.4% of our investments in portfolio securities. We utilized independent pricing services with
certain of our fair value estimates. To corroborate &ldquo;bid/ask&rdquo; quotes from independent pricing services, we perform
a market-yield approach to validate prices obtained or obtain other evidence.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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, we consider 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, we consider
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. We allocate value to these securities based on their relative priorities. For equity securities
such as warrants,  we may also incorporate alternative methodologies including the Black-Scholes Option Pricing
Model.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Market approach</B> &ndash; The
market approach typically employed by 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. We will apply liquidity and other discounts  as deemed appropriate to equity valuations where
applicable. We 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Income approach</B> &ndash; The income
approach typically utilized by our 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. We will apply liquidity and other
discounts as deemed appropriate to equity valuations where applicable.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Asset approach</B> &ndash;&nbsp;We
consider 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) we believe
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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We base 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 or substantially declining operations, we may base a portfolio company&rsquo;s fair value upon the company&rsquo;s
estimated liquidation value. Fair valuations are necessarily subjective, and our 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Our general intent is to hold
our loans to maturity when appraising  our privately held debt investments. As such, we believe 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, we perform 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Because
of the inherent uncertainty of the valuation of portfolio securities which do not have readily ascertainable market values, amounting
to $9.0 million and $19.2 million as of December&nbsp;31, 2012 and 2011, 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, 2012, one of
the Fund&rsquo;s portfolio investments, the 73,666 ordinary shares of OPG were publicly listed on the NYSE Euronext Paris Exchange,
along with &euro;1,200,790 10% OPG notes due 2018</FONT>. <FONT STYLE="font-family: Times New Roman, Times, Serif">As of December
31, 2011, our 8,890 4% bonds of Orco Germany into which the OPG shares and OPG notes were converted, were publicly listed on the
Euro MTF Market of the Luxemburg Stock Exchange. However, there had been no recent trading activity. </FONT></P>

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

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

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

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

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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 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 it recognizes any additional
interest income.</P>

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

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

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

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">All corporations incorporated in
the State of Delaware are required to file an Annual Report and to pay a franchise tax. As a result, we paid
Delaware Franchise tax in the amount of $0.01 million, $0.01 million and $0.04 million for the years ended December 31, 2012,
December 31, 2011 and December 31, 2010, respectively.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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, 2012, and December 31, 2011, and December 31, 2010 respectively.</P>

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

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Level 3&mdash;Inputs reflect our 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, we consider
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, we consider 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. We allocate value to these securities based on their relative priorities.
For equity securities such as warrants, we 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/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December&nbsp;31, 2012, 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurements As of December 31, 2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: italic bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid">(in thousands)</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Total</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Quoted Prices in Active Markets for Identical Assets (Level 1)</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Significant Other Observable Inputs (Level 2)</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; 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 STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">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><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="font: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">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>&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="width: 42%; font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Control investments</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right">7,419</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right">7,419</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Affiliate investments</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">150</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">150</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; padding-left: 5.4pt">Non-affiliate investments</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">1,663</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">238</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">1,425</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt; padding-bottom: 2.5pt">Total investments</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2.5pt double">9,232</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2.5pt double">238</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right; padding-bottom: 2.5pt; border-bottom: Black 2.5pt double">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2.5pt double">8,994</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0.5in">The following table provides a
reconciliation of fair value changes during 2012 for all investments for which we determine fair value using significant unobservable
(Level 3) inputs:&nbsp;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font: bold 9pt Times New Roman, Times, Serif; 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: italic bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid">(in thousands)</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Control Investments</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Affiliate Investments</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Non-affiliate Investments</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt 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: 40%; font: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">Fair value as of December&nbsp;31, 2011</TD><TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right">13,298</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right">150</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right">5,734</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right">19,182</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Realized losses</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(5,187</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&mdash;</FONT>&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(5,187</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Change in unrealized appreciation (depreciation)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">1,996</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(282</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">1,714</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Purchases of portfolio securities</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">6,939</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">301</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">7,240</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Proceeds from sales/dispositions</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(9,627</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(9,627</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Transfers in (out) of Level 3</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(4,328</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(4,328</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; padding-left: 5.4pt">Fair value as of December 31, 2012</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">7,419</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">150</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">1,425</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">8,994</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="font: bold 8pt Times New Roman, Times, Serif; color: black; 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: italic bold 9pt Times New Roman, Times, Serif; color: black; border-bottom: Black 1pt solid">(in thousands)</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Total</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 8pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Quoted Prices in Active Markets for Identical Assets (Level 1)</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 8pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Significant Other Observable Inputs (Level 2)</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 8pt Times New Roman, Times, Serif; color: black; 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 STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-left: 5.4pt">Assets</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-left: 5.4pt">Investments:</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control investments</TD><TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">13,298</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">13,298</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliate investments</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">150</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">150</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">5,734</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">5,734</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Total investments</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">19,182</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">19,182</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporary cash investments</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">6,000</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">6,000</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt; vertical-align: bottom">Total investments and temporary cash investments</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">25,182</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">6,000</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">19,182</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font: bold 9pt Times New Roman, Times, Serif; 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: italic bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid">(in thousands)</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Control Investments</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Affiliate Investments</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Non-affiliate Investments</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt 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: 40%; font: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">Fair value as of December&nbsp;31, 2010</TD><TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right">17,576</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right">762</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right">9,324</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right">27,662</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 5.4pt">Realized gains/losses</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(10,074</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">138</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(992</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(10,928</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Change in unrealized appreciation (depreciation)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">6,600</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(38</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">3,338</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">9,900</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Purchases of portfolio securities</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">575</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">3,083</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">3,658</TD><TD STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Proceeds from sales/dispositions</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(1,379</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(712</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(9,019</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(11,110</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; padding-left: 5.4pt">Fair value as of December&nbsp;31, 2011</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">13,298</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">150</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">150</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">19,182</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Significant Unobservable Inputs</B>
&mdash; Our investment portfolio is not composed of homogeneous debt and equity securities that can be valued with a small number
of inputs. Instead, the majority of our investment portfolio is composed of complex debt and equity securities with distinct contract
terms and conditions. As such, our valuation of each investment in our portfolio is unique and complex, often factoring in numerous
different inputs, including historical and forecasted financial and operational performance of the portfolio company, project cash
flows, market multiples comparable market transactions, the priority of our securities compared with those of other investors,
credit risk, interest rates, independent valuations and reviews and other inputs.</P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The following table summarizes the significant
non-observable inputs in the fair value measurements of our level 3 investments by category of investment and valuation technique as
of December 31, 2012:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: italic bold 8pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid">(in thousands)</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Valuation Techniques</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Unobservable Inputs</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Minimum</TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Maximum</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 25%; font: 8pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Secured and subordinated debt</TD><TD STYLE="width: 1%; font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 8pt Times New Roman, Times, Serif; text-align: right">1,843</TD><TD STYLE="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 18%; font: 8pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt">Yield Analysis</TD><TD STYLE="width: 1%; font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24%; font: 8pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt">Market interest rate</TD><TD STYLE="width: 1%; font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; font: 8pt Times New Roman, Times, Serif; text-align: right">5.4</TD><TD STYLE="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="width: 1; font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; font: 8pt Times New Roman, Times, Serif; text-align: right">12.4</TD><TD STYLE="width: 1%; font: 8pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 5.4pt">&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: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt">Pending Transaction</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt">Discount for lack of
    marketability</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">5</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">%</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">15</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5.4pt">&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: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt">Asset Approach</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt">Recovery rate</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">0</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">%</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">100</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 5.4pt">&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="padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="padding-left: 5.4pt">&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="font: 8pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Common stock</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">150</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: center; padding-left: 5.4pt">Pending Transaction</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt">Discount</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">0</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">%</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">100</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 5.4pt">&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="padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="padding-left: 5.4pt">&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="font: 8pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Limited liability company investments</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">7,001</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="font: 8pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Asset Approach</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Recovery rate</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&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">0</TD><TD STYLE="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt">&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">100</TD><TD STYLE="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: left">%</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: 8pt 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">8,994</TD><TD STYLE="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="text-align: right; 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">&nbsp;</TD><TD STYLE="text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(4) RELATED PARTY TRANSACTIONS AND AGREEMENTS</B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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. 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. None of our interested directors
receive annual fees for their service on the Board of Directors.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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. The Fund incurred $7,000 and $14,000 in services rendered by A+ Filings for the years ended December 31,
2012 and 2011, respectively. Mr. Kenneth I. Denos, Secretary of the Fund, held a majority of the voting shares of A+ Filings;
however, Mr. Denos sold his interest in A+ Filings in March 2013.</P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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. For the years ended December 31, 2012 and 2011, payments to Global Energy totaled $75,000 and $12,500, respectively.</P>

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(5) FEDERAL INCOME TAX MATTERS</B></P>

<P STYLE="font: 10pt/normal 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">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 purposes of Section&nbsp;4982 of the Internal Revenue Code from December&nbsp;31 to October&nbsp;31.</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: 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">We were not required
to make distributions of ordinary income for 2010, 2011 and 2012 under income tax regulations. </FONT><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></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">For the year ended December 31, 2012, we have
a net investment loss for book purposes of $2.7 million and $2.7 million for tax purposes. During 2012, we had a net capital loss
for book purposes of $2.8 million and a net capital loss for tax purposes of $2.8 million for tax purposes. The aggregate cost
of investments for federal income tax purposes as of December&nbsp;31, 2012 </P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">was $23.3 million. Such investments had unrealized
appreciation of approximately $0.8 million and unrealized depreciation of $18.0 million for book purposes, or net unrealized
depreciation of approximately $17.2 million. We had unrealized appreciation of approximately $1.0 million and unrealized
depreciation of approximately $15.2 million for tax purposes, or net unrealized depreciation of approximately $14.2 million
as of December&nbsp;31, 2012. As of December 31, 2012, we had approximately $29.3 million in capital losses, of which $15.6
million will expire after 2017, and remaining $13.7 million can be carried over indefinitely.</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">In regards to the Return of Capital Statement
of Position, during the three years ended December 31, 2012, we recorded a reclassification for permanent book to tax differences
of less 1,000 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: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 a net investment loss of $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. The aggregate cost of investments for federal income tax purposes as of December&nbsp;31, 2011 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. We 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, 2011. As of December 31, 2011, we had approximately $26.5 million of
which $15.6 million will expire after 2017 and the remaining $10.9 million can be carried over indefinitely.</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">For the year ended December 31, 2010, we had
a net investment loss for book purposes of $0.8 million and a net investment loss for tax purposes of $0.8 million. During 2010,
we had a net capital loss for book purposes of $7,000 and a net capital loss for tax purposes of $7,000. 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. As of December 31, 2010, we had approximately $15.6 million in capital loss carry forwards which will expire after 2017.</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">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,
2012 and December&nbsp;31, 2011. 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: 0; text-indent: 24.5pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">All of the Fund&rsquo;s federal and state income
tax returns for 2009 through 2012 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: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(6) CONTRACTUAL OBLIGATIONS </B></P>

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

<P STYLE="font: 10pt/normal 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 $84,000 for the year ended December 31, 2012, $81,000 for the year ended
December 31, 2011 and $70,000 for the years ended December 31, 2010.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Future minimum lease payments under
the operating lease as of December 31, 2012 were as follows (in thousands):</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 40%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 43%; color: black; text-align: left; vertical-align: bottom">2013</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 43%; color: black; text-align: right">56.0</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: left; vertical-align: bottom">2014</TD><TD STYLE="padding-bottom: 1pt; color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: black; text-align: right">42.0</TD><TD STYLE="padding-bottom: 1pt; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; color: black; text-align: right">98.0</TD><TD STYLE="padding-bottom: 2.5pt; color: black; text-align: left">&nbsp;</TD></TR>
</TABLE>

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December&nbsp;31, 2012 we had
no outstanding commitments to our portfolio company investments.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(7) DIVIDENDS </B></P>

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(8) PORTFOLIO SECURITIES </B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>2012 Portfolio Activity</B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During the year ended December 31,
2012, we received $6.4 million from the disposal of the Fund&rsquo;s 55% fully-diluted equity interest in Sovereign Business
Forms, Inc. (&ldquo;Sovereign&rdquo;), together with the Fund&rsquo;s promissory note and all interest as accrued interest.
We also received $5.3 million from the disposal of the Fund&rsquo;s 34.2% equity interest in ConGlobal Industries Holding,
Inc. (&ldquo;ConGlobal&rdquo;), together with the Fund&rsquo;s promissory note and all interest as accrued interest.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On May 7, 2012, holders of
72.5% of all Orco Germany bondholders approved a joint restructuring of certain bond debt of Orco Germany and its parent
company, OPG. Pursuant to such restructuring, approximately 84.5% of the Orco Germany bonds held by each bondholder were
converted into <I>Obligations Convertibles en Actions</I> (&ldquo;OCA&rdquo;) on May 9, 2012. The OCA were converted into an
aggregate of 26,209,613 OPG shares which were delivered in two tranches. The first tranche, consisting of 18,361,540 OPG
shares, was delivered in May 2012, of which the Fund received 1,102,455 OPG shares. The second tranche, consisting of
7,848,073 OPG shares, was received in October 2012. Also in October, the remaining 15.5% of the Orco Germany bonds held by
each bondholder was converted into newly-issued 6-year OPG notes (&ldquo;New OPG Notes&rdquo;) with a face value of
&euro;20.0 million bearing cash and PIK interest each at 5% per annum, which interest percentages may be reduced over time
upon timely repayments of principal tranches during a four-year period commencing in 2015. Of the total amount of New OPG
Notes issued, Equus received New OPG Notes in the face amount of &euro;1,200,790. <FONT STYLE="color: black">On October 15,
2012, we announced the sale of 1,500,000 of our 1,573,666 OPG shares, where we received net cash proceeds of &euro;3.8
million [$4.9 million]. As of December 31, 2012, we held 73,666 OPG shares, and </FONT>&euro;<FONT STYLE="color: black">1,200,790 New
OPG Notes.</FONT></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During the year ended
December&nbsp;31, 2012, we had investment activity of $7.2 million in two portfolio companies. <FONT STYLE="color: black">We
made a follow-on investment of $6.8 million in Equus Energy, LLC. </FONT>The restructuring of the Orco Germany bonds noted
above resulted in the capitalization of $0.3 million accrued interest received in the form of additional portfolio securities
(PIK). We capitalized legal and consulting expenses of $0.1 million relating to Spectrum Management.</P>

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

<P STYLE="font: 10pt/normal 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, 2012 (in thousands):</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font: bold 9pt 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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">New Investments</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font: bold 9pt 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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Cash</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Non-Cash</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Follow-On</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">PIK</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt 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="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Equus Energy, LLC</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">6,800</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">6,800</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt; width: 35%">Orco
    Property Group S.A.</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left"></TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left"></TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left"></TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left"></TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">301</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left"></TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">301</TD><TD STYLE="width: 1%; font: 9pt 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: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Spectrum Management, LLC</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">139</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">139</TD><TD STYLE="padding-bottom: 1pt; font: 9pt 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: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">6,939</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">301</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">7,240</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

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


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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 24.5pt">During 2012, we realized net
capital losses of $2.8 million, including the following significant transactions:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid">Type</TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; 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 STYLE="width: 30%; font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">ConGlobal Industries Holding, Inc.</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 25%; font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Shipping products and services</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; font: 9pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Control</FONT></TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 12%; font: 9pt Times New Roman, Times, Serif; text-align: right">(4,114</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Sovereign Business Forms, Inc.</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Business products and services</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Control</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(1,073</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Orco Property Group S.A.</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Real Estate</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Non-affiliate</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">2,318</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt; padding-bottom: 1pt">Various others</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">72</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; text-align: right">(2,797</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
</TABLE>

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 12pt 0; text-indent: 24.5pt">During 2012, we recorded a net
change in unrealized depreciation of&nbsp;$0.2 million, to a net unrealized depreciation of $17.2 million. Such change in depreciation
resulted primarily from the following changes:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp; (i)</FONT></TD>
    <TD STYLE="width: 2%; padding-left: 4.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 93%; padding-left: 4.4pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Transfer of unrealized depreciation to realized loss of ConGlobal Industries Holding, Inc. of $1.6 million upon the divestiture of the investment.</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;(ii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="width: 93%">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Transfer of unrealized depreciation to
realized loss of Sovereign Business Forms, Inc. of $0.6 million upon the divestiture of the investment.</P></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(iii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="width: 93%">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">The restructuring of the 8,890 Orco
        Germany bonds resulted in the Fund holding 1,573,666 ordinary shares of OPG and &euro;1,200,790 newly-issued 6-year OPG
        notes. The capitalization of $0.3 million accrued interest and the subsequent sale of 1.5 million shares of OPG shares in
        October 2012 resulted in a decrease in fair value of OPG of $1.8 million.</P></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(iv)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Decrease
    in the fair value of Equus Energy, LLC of $0.2 million due to working capital expenditures.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>2011 Portfolio Activity</B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">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  in the amount of $1.0 million. We sold our promissory
notes in 1848 Capital Partners, LLC , Big Apple Entertainment Partners, LLC, 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; We 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During the year ended December&nbsp;31,
2011, we 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
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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Investment Activity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">New Investments</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Existing Investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Cash</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Non-Cash</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Follow-On</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">PIK</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; 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: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Orco Germany S.A</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">67</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">3,016</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">3,083</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Spectrum Management, LLC</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">325</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">325</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Equus Energy, LLC</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">250</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">250</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 9pt; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">317</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">3,016</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">325</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">3,658</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 6pt">&nbsp;</P>


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<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Type</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; 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 STYLE="width: 42%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Riptide Entertainment, LLC</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 21%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Entertainment and leisure</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif; color: black">Control</FONT></TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 15%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">(10,074</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">London Bridge Entertainment Partners Ltd</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Entertainment and leisure</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif; color: black">Non-affiliate&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">(992</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">RP&amp;C International Investments LLC</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-left: 5.4pt">Healthcare</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif; color: black">Affiliate&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">138</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt; padding-bottom: 1pt">Various others</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-left: 5.4pt; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right; border-bottom: Black 1pt solid">(2</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 9pt; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-size: 9pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font: 9pt Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Calibri, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Calibri, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Calibri, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">(10,930</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">)</TD></TR>
</TABLE>

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(i)</FONT></TD>
    <TD STYLE="width: 2%; padding-left: 4.4pt; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 93%; padding-left: 4.4pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Decline in fair market value of ConGlobal Industries Holding, Inc. of $2.6 million due to the decline in operating performance.<BR>
</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(ii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Transfer of unrealized depreciation to realized depreciation for London Bridge Entertainment Partners, Ltd. of $0.8 million due to the sale of the promissory note.&nbsp;</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(iii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="width: 93%">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Increase in the fair market value of Orco
Germany S.A. 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.&nbsp;</P></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(iv)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Increase in the fair market value of PalletOne, Inc. of $0.1 million due to steady improvement in operating performance and indications of value from independent third parties.</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(v)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Transfer of unrealized depreciation to realized depreciation for Riptide Entertainment Partners, LLC  of $10.1 million due to the sale of the promissory notes and the winding up of the entity.</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(vi)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Transfer of unrealized appreciation to realized appreciation for RP&amp;C International Investments, LLC of $0.1 million due to the maturity of the investment.</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(vii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Increase in fair market value of Sovereign Business Forms, Inc. 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.</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(viii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="width: 93%">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 4.4pt">Decrease in fair market value of Spectrum
Management, Inc. of $1.4 million due to the decline in operating performance and the maturity of its
funded debts which remain in default.</P></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(ix)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 2%">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Decrease in the fair market value of Trulite, Inc.  of $0.1 due to the lack of progress and inability to achieve sufficient funding with regards to its product development program.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>2010 Portfolio Activity</B></P>

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During the year ended
December&nbsp;31, 2010,   we 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Investment Activity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">New Investments</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Existing Investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Cash</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">PIK</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Follow-On</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">PIK</TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 9pt Times New Roman, Times, Serif; color: black; 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: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">London Bridge Entertainment Partners Ltd</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">575</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">148</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">723</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Spectrum Management, LLC</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">425</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">425</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">1848 Capital Partners LLC</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">295</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">295</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Trulite, Inc.</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">200</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">200</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Big Apple Entertainment Partners LLC</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">121</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">121</TD><TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 9pt; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">1,200</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">564</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; color: black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9pt Times New Roman, Times, Serif; color: black; text-align: right">1,764</TD><TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; text-align: right; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(i)</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 93%; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(ii)</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(iii)</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(iv)</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(v)</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(vi)</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 93%">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">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.</P></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(vii)</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; line-height: 115%; font-size: 10pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(viii)</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 10pt; width: 93%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Subsequent to year-end, we sold our promissory notes in 1848 Capital Partners, LLC, Big Apple Entertainment Partners, LLC, 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; 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/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(9) RECENT ACCOUNTING PRONOUNCEMENTS </B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">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.
These changes become effective for interim and annual periods beginning after December 15, 2011. We adopted this standard beginning
on January&nbsp;1, 2012.&nbsp;Our implementation of this standard did not have a material impact on our process for measuring fair
values, our financial position or our results of operations.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>(10) SUBSEQUENT EVENTS </B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On March 1, 2013 we received
a semi-annual interest payment of $0.03 million and a 5.75% partial principal payment of $9,000 in respect of our
&euro;1,200,790 [$1,575,420] notes of OPG that we received in October 2012.</P>


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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(11) SELECTED QUARTERLY DATA </B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 8pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">(in thousands, except per share amounts)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font: 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Year Ended December 31, 2012</TD><TD STYLE="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 9pt Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; text-align: center">Quarter Ended</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; text-align: center">Quarter Ended</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; text-align: center">Quarter Ended</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; text-align: center">Quarter Ended</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; text-align: center">March 31,</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; text-align: center">June 30,</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; text-align: center">September 30,</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; text-align: center">December 31,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 9pt 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: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Total investment income (loss)</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">227</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">212</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">(100</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">177</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 9pt Times New Roman, Times, Serif; text-align: right">516</TD><TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Net investment loss</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(498</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(777</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(685</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(694</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(2,654</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">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>&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="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;from operations</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(498</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(4,232</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(1,754</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">1,211</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(5,273</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Basic and diluted earnings per share <SUP>(1)</SUP></FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.05</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.40</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.17</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">0.12</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">(0.50</TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
</TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 9pt Calibri, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 8pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">(in thousands, except per share amounts)</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">Year Ended December 31, 2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: center">Quarter Ended</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: center">Quarter Ended</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: center">Quarter Ended</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: center">Quarter Ended</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: center">March 31,</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: center">June 30,</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: center">September 30,</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: center">December 31,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; color: black; 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-family: Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Total investment income (loss)</TD><TD STYLE="width: 2%; font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font-family: Times New Roman, Times, Serif; color: black; text-align: right">439</TD><TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font-family: Times New Roman, Times, Serif; color: black; text-align: right">392</TD><TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font-family: Times New Roman, Times, Serif; color: black; text-align: right">(169</TD><TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; color: black; text-align: left">)</TD><TD STYLE="width: 2%; font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font-family: Times New Roman, Times, Serif; color: black; text-align: right">(123</TD><TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; color: black; text-align: left">)</TD><TD STYLE="width: 2%; font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="width: 9%; font-family: Times New Roman, Times, Serif; color: black; text-align: right">539</TD><TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Net investment loss</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: right">(686</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">)</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: right">(1,203</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">)</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: right">(891</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">)</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: right">(720</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">)</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: right">(3,500</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">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>&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="font-family: Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;from operations</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: right">(1,717</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">)</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: right">474</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: right">(2,463</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">)</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: right">(823</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">)</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: right">(4,529</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Basic and diluted earnings per share (1)</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: right">(0.18</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">)</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: right">0.05</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: right">(0.28</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">)</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: right">(0.09</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">)</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: right">(0.50</TD><TD STYLE="font-family: Times New Roman, Times, Serif; color: black; text-align: left">)</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>
</TABLE>

<P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 6pt 0 0"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(12) LEGAL PROCEEDINGS</B></P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On April&nbsp;26, 2010, the Securities
and Exchange Commission (&ldquo;SEC&rdquo;) 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. We have fully cooperated with the SEC&rsquo;s request.</P>

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

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


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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">In January 2006, we sold our 31.5% ownership
interest in Champion Window, Inc. (&ldquo;Champion&rdquo;), a portfolio company of the Fund, to Atrium Companies Inc. (&ldquo;Atrium&rdquo;)
pursuant to a Stock Purchase Agreement (&ldquo;SPA&rdquo;) dated December 22, 2005. The SPA contained certain limited rights of
indemnification for Atrium in connection with its purchase of such ownership interest.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Atrium filed suit in the District Court
of Harris County, Texas against two former officers of Atrium&rsquo;s subsidiary, Champion, alleging, amongst other matters, that
the former officers breached their fiduciary duties to Champion by hiring undocumented workers. This action was commenced primarily
as a result of an investigation by the U.S. Immigration and Customs Enforcement agency (&ldquo;ICE&rdquo;) into Atrium&rsquo;s
hiring practices. On March 12, 2012, to protect its interests, we filed a Petition in Intervention in the State Court Action seeking
a declaration from the Court that Equus did not owe any obligation to indemnify Atrium or Champion for any penalties, costs or
fees associated with the investigation by ICE.</P>


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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On March 16, 2012, Atrium and Champion
filed a claim with the American Arbitration Association in Dallas, Texas, against Equus and a number of the other sellers under
the SPA.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">In the Arbitration Action, Atrium and
Champion seek damages arising from Equus&rsquo; and the other sellers&rsquo; indemnity obligations set forth in the SPA. Atrium
claims it is entitled to indemnification under the SPA for costs it has incurred in responding to an ongoing investigation by ICE.
Atrium entered into a Non-Prosecution Agreement with ICE. It appears that one condition of the Non-Prosecution Agreement required
Atrium to pay ICE $2,000,000. Atrium and Champion asserted two counts of breach of contract against Equus, both arising out of
the alleged obligation to indemnify Atrium and Champion pursuant to certain provisions of the SPA. Atrium and Champion also asserted
claims for fraudulent inducement against two former officers and directors of Champion. Through the arbitration, Atrium and Champion
seek to recover an unspecified amount in the form of alleged &ldquo;losses, damages, assessments, penalties, interest, reasonable
attorneys&rsquo; and accountants&rsquo; fees, settlement costs, and other costs and expenses arising directly or indirectly out
of or incident to,&rdquo; the alleged breach of the indemnity provisions in the SPA. As a consequence of their fraudulent inducement
claim against the two former officers and directors, Atrium and Champion alternatively seek equitable rescission of the SPA and
exemplary damages from the two former officers and directors.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Atrium and Champion have yet to specify
the amount of damages they seek from Equus or the other sellers pursuant to the alleged indemnity obligations under the SPA. Atrium
and Champion have disclosed the payment of $2 million to ICE to resolve the investigation and avoid prosecution for their hiring
practices.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We intend to vigorously contest the
claims and deny that we owe any indemnity obligations to Atrium or Champion and further deny that the Fund is in any way liable
to Atrium or Champion. To the extent Atrium and Champion are able to establish a right to an indemnity, we will contest the amount
of the claimed indemnity, inasmuch as we believe (among other defenses) that the indemnity obligation can only exist, if at all,
with respect to damages arising as a direct and proximate result of employees who were hired prior to the closing date of the 2006
sale of Champion and remained in continuous employment after the 2006 sale, and not to any employee who may have been hired in
the six years after the sale.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">While we believe the Atrium claim is
without merit and we intend to vigorously dispute the claim, there is a reasonable possibility of an adverse ruling which may require
the Fund to indemnify Atrium. If Equus is required to indemnify Atrium and Champion, we estimate that such indemnity obligation
could vary from $2.0 - $3.0 million. Pursuant to the SPA, the indemnification obligation of Equus and the other sellers is several
and not joint, and any such indemnity, however uncertain, would likely be reduced proportionately to our percentage ownership in
Champion at the time of sale, which was 31.5% of Champion&rsquo;s shares outstanding.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On August 12, 2012, Paula Douglass filed
a lawsuit against the Fund and members of the Board of Directors in the District Court of Harris County, Texas. Ms. Douglass&rsquo;
complaint alleges various causes of action, including minority shareholder oppression, dilution, and breach of fiduciary duty,
and seeks unspecified damages and attorney&rsquo;s fees. We consider the lawsuit as being without merit and intend to defend the
matter vigorously.</P>

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

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

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><A NAME="a_024"></A><B>Item 9. <I>Changes in and Disagreements with
Accountants on Accounting and Financial Disclosure </I></B></P>

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_025"></A>Item 9A. <I>Controls and Procedures </I></B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Attached as exhibits to this Form 10-K
are certifications of our 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>Evaluation of Disclosure Controls and Procedures </B></P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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, 2012. Based on the foregoing, our Chief Executive  Officer and Chief Financial
Officer concluded that our disclosure controls and procedures were effective.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>Management Report on Internal Control Over Financial Reporting
</B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Our Management is responsible for establishing
and maintaining adequate internal control over financial reporting to provide reasonable assurance regarding the reliability of
our 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We assessed our internal control over
financial reporting as of December&nbsp;31, 2012, the end of our most recent fiscal year. We based our assessment on criteria established
in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Our 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Based on our assessment, we have concluded
that our 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 our assessment have been reviewed with the Audit Committee
of our Board of Directors.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><A NAME="a_026"></A><B>Item 9B. <I>Other Information </I></B></P>

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

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

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

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


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P><P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_027"></A>PART III </B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_028"></A>Item 10. <I>Directors, Executive Officers and
Corporate Governance</I></B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Information about our Directors and
Executive Officers, our Audit Committee and the Nominating and Corporate Governance Committee, our 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 our Definitive Proxy Statement for the 2013 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, 2013 (the &ldquo;2013 Proxy
Statement&rdquo;).</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We have adopted a code of business conduct
and ethics applicable to our directors, officers (including our principal executive officer, principal financial officer and controller)
and employees, 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 we amend or waive any of the provisions of the Code of Business Conduct
and Ethics applicable to our principal executive officer, principal financial officer, or controller, we intend to disclose the
same on its website at www.equuscap.com.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_029"></A>Item 11. <I>Executive Compensation </I></B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Information regarding Executive Compensation
is incorporated by reference to our 2013 Proxy Statement.</P>


<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><A NAME="a_030"></A><B>Item 12. <I>Security Ownership of Certain Beneficial
Owners and Management and Related Stockholder Matters</I></B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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 our 2013 Proxy Statement.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><A NAME="a_031"></A><B>Item 13.<I> Certain Relationships and Related
Transactions and Director Independence</I></B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Information regarding Certain Relationships
and Related Transactions is incorporated by reference to our 2013 Proxy Statement.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_032"></A>Item 14.<I> Principal Accountant Fees and Services </I></B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Information regarding Principal Accountant
Fees and Services is incorporated by reference to our 2013 Proxy Statement.</P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 4.5pt 0 0"><A NAME="a_033"></A><B>PART IV </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0"><B><A NAME="a_034"></A>Item 15.<I> Exhibits and Financial Statement
Schedules </I></B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Page</B></P>
        <P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt">&nbsp;</P></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; font-size: 10pt; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_035">Report of Independent Registered Public Accounting Firm&mdash;UHY</A></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; font-size: 10pt; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_014">Balance Sheets as of December&nbsp;31, 2012 and 2011</A></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">35</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; font-size: 10pt; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_015">Statements of Operations for the years ended December&nbsp;31, 2012, 2011 and 2010</A></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">36</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; font-size: 10pt; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_016">Statements of Changes in Net Assets for the years ended December&nbsp;31, 2012, 2011 and 2010</A></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">37</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; font-size: 10pt; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_017">Statements of Cash Flows for the years ended December&nbsp;31, 2012, 2011 and 2010</A></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">38</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; font-size: 10pt; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_018">Selected Per Share Data and Ratios for the five years ended December&nbsp;31, 2012</A></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">39</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; font-size: 10pt; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_019">Schedule of Investments as of December&nbsp;31, 2012</A></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">40</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; font-size: 10pt; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_021">Schedule of Investments as of December&nbsp;31, 2011</A></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">42</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; font-size: 10pt; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_022">Notes to Financial Statements</A></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">45</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-weight: bold; line-height: 115%; font-size: 10pt; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(a)(2)&nbsp;The following financial statement schedules are filed herewith:</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; font-size: 10pt; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_035">Report of Independent Registered Public Accounting Firm&mdash;UHY</A></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">62</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 12pt; line-height: 115%; font-size: 10pt; text-decoration: none; text-indent: -12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext"><A HREF="#a_036">Schedule 12-14 Investments in and Advances to Affiliates</A></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">63</FONT></TD></TR>
</TABLE>
<P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 7.5pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_035"></A>Report of Independent Registered Public
Accounting Firm </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0">To the Board of Directors and Stockholders</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">of Equus Total Return, Inc.:</P>

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

<P STYLE="font: 10pt/normal 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, 2012 and 2011 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, 2012 and the selected per share data and ratios for each of the five years in the period
ended December 31, 2012, and have issued our report thereon dated March 26, 2013 (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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

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

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<TR STYLE="vertical-align: bottom">
    <TD STYLE="line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/s/ UHY LLP</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0">Houston, Texas</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">March 26, 2013</P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SCHEDULE 12-14</B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_036"></A>SCHEDULE OF INVESTMENTS IN AND ADVANCES
TO AFFILIATES</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
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    <TD NOWRAP STYLE="width: 20%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt; font-style: italic; font-weight: bold"><FONT STYLE="font: 7pt Times New Roman, Times, Serif; color: black"><B><I>(in
    thousands)</I></B></FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 21%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 6%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 6pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>Year
        Ended</B></FONT></P>
        <P STYLE="font: 6pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>December
        31, 2012</B></FONT></P></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Portfolio
    Company</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Investment
    (a)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 6pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>Amount
                                                                                          of Interest</B></FONT></P>
        <P STYLE="font: 6pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>or
        Dividend</B></FONT></P>
        <P STYLE="font: 6pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>Credited
        to Income </B></FONT></P>
        <P STYLE="font: 6pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>(e)</B></FONT></P></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 6pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>As
                                                                                          of</B></FONT></P>
        <P STYLE="font: 6pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>December
        31, 2011</B></FONT></P>
        <P STYLE="font: 6pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>Fair
        Value</B></FONT></P></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Gross
    Additions (b)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border-bottom: Black 1pt solid"><P STYLE="font: 6pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>Gross
                                                                                          Reductions </B></FONT></P>
        <P STYLE="font: 6pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>(c)</B></FONT></P></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 6pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>As
                                                                                          of</B></FONT></P>
        <P STYLE="font: 6pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>December
        31, 2012 </B></FONT></P>
        <P STYLE="font: 6pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>Fair
        Value</B></FONT></P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Control
    investments: Majority-owned</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Equus
    Energy, LLC</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Member
    interest (100%)</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">236
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">6,800
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">(181)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="margin-top: 0; margin-bottom: 0; text-align: right; padding-right: 5pt; padding-left: 5.4pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">6,855
    </FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Equus
    Media Development Company, LLC</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Member
    interest (100%)</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">163
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: middle; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 7pt">&nbsp;(17)</FONT></P></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 7pt">146</FONT></P></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Sovereign
    Business Forms, Inc.</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">1,214,630
    shares of common stock</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">4,488
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">(4,488)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">12%
    promissory notes</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">109
    </FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">2,363
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">(2,363)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Spectrum
    Management, LLC</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">285,000
    units of Class&nbsp;A member interest</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">16%
    subordinated promissory note <SUP>(d)</SUP></FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt; vertical-align: bottom"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">20
    </FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt; vertical-align: bottom"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">319
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 7pt">139</FONT></P></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">(40)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font-size: 7pt">418
    </FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="vertical-align: top; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Total
    Control investments: Majority-owned</B></FONT></TD>
    <TD NOWRAP STYLE="text-align: right; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">129
    </FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">7,569
    </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="vertical-align: top; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">6,939
    </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="vertical-align: top; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">(7,089)</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">7,419
    </FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Control
    Investments: Non-majority owned</B></FONT></TD>
    <TD STYLE="text-align: right; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">ConGlobal
    Industries Holding, Inc.</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">24,397,303
    shares of common stock</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">7%
    promissory note</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt"></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">229
    </FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt"></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">5,729
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"> <FONT STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt"></FONT></FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt"></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">(5,729)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt"></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="3" STYLE="vertical-align: top; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Total
    Control investments: Majority-owned</B></FONT></TD>
    <TD NOWRAP STYLE="text-align: right; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">229
    </FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font-size: 7pt"></FONT> <FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">5,729
    </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="vertical-align: top; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="vertical-align: top; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">(5,729)</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt"></FONT> <FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Total
    Control investments</B></FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">358
    </FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font-size: 7pt">&nbsp;$</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">13,298
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">6,939
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">(12,818)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt"></FONT> <FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">7,419
    </FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Affiliate
    Investments</B></FONT></TD>
    <TD STYLE="text-align: right; border-top: windowtext 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; border-top: windowtext 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; border-top: windowtext 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; border-top: windowtext 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt; text-align: left"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Infinia
    Corporation</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">1,151,800
    shares preferred stock</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">666,667
    Class A Shares Preferred Stock</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">160,720
    Class B Shares Preferred Stock</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Option
    to purchase 16,000 shares of common stock at $7.43 per share through December 19, 2012</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt; text-align: left"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">PalletOne,
    Inc.</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">350,000&nbsp;shares&nbsp;of&nbsp;common
    stock</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="text-align: right; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">150
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">150
    </FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="vertical-align: top; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Total
    Affiliate investments</B></FONT></TD>
    <TD NOWRAP STYLE="text-align: right; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt">150 <FONT STYLE="font: 7pt Times New Roman, Times, Serif">
    </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="vertical-align: top; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="vertical-align: top; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">-
    </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt"></FONT> <FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">150
    </FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><B>Total
    Investments In and Advances to Affiliates</B></FONT></TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 6pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">358
    </FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">13,448    </FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">6,939
    </FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%; font-size: 7pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">(12,818)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 7pt; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%; font-size: 6pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">7,569
    </FONT></TD></TR>
</TABLE>
<P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7.5pt/normal 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" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">(a)</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">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, 2011.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">(b)</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">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.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">(c)</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">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.</FONT></TD>
</TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">(d)</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">Debt is non-income producing.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">(e)</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">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.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: right"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">**</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">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.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>


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<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(a)(3)&nbsp;Exhibits </B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Articles of Incorporation and by-laws.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(a)</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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.]</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(b)</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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.]</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(c)</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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.]</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 9pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.</FONT></TD>
    <TD STYLE="padding-top: 9pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Material Contracts.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(c)</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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.]</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(d)</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%; font-size: 10pt; text-decoration: none"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext">Form of Indemnification Agreement between the Fund and certain of its directors and officers.</FONT> [Incorporated by reference to Exhibit 10(d) to Registrant&rsquo;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2011]</TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(e)</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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.]</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(f)</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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.]</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 4.5pt 0 0 48.95pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 9pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">31.</FONT></TD>
    <TD STYLE="padding-top: 9pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rule 13a-14(a)/15d-14(a) Certifications</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%; font-size: 10pt; text-decoration: none"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext">Certification by Chief Executive Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%; font-size: 10pt; text-decoration: none"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext">Certification by Chief Financial Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 9pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">32.</FONT></TD>
    <TD STYLE="padding-top: 9pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Section&nbsp;1350 Certification</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%; font-size: 10pt; text-decoration: none"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext">Certification by Chief Executive Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; line-height: 115%; font-size: 10pt; text-decoration: none"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-underline-style: none; color: windowtext">Certification by Chief Financial Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 7.5pt/normal 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: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 7.5pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD STYLE="padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">EQUUS TOTAL RETURN, INC.</FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Date: March&nbsp;26, 2013</FONT></TD>
    <TD STYLE="padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD STYLE="padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/</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="padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD STYLE="padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD STYLE="padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 7.5pt; text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><B>John A. Hardy</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.1in; line-height: 115%; font-size: 4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-weight: bold; line-height: 115%; font-size: 7.5pt; text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><B>Chief Executive Officer </B></FONT><BR>
<FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><B>(Principal Executive Officer)</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid">
        <P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Signature</B></P>
        <P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt">&nbsp;</P></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-left: 0.1in">
        <P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Title</B></P>
        <P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt">&nbsp;</P></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-left: 0.1in">
        <P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Date</B></P>
        <P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt">&nbsp;</P></TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;FRASER ATKINSON</FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Director</FONT></TD>
    <TD NOWRAP STYLE="text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">March&nbsp;26, 2013</FONT></TD></TR>
<TR>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><B>Fraser Atkinson</B></FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;ALESSANDRO BENEDETTI</FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Director, Executive Chairman</FONT></TD>
    <TD NOWRAP STYLE="text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">March&nbsp;26, 2013</FONT></TD></TR>
<TR>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><B>Alessandro Benedetti</B></FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;RICHARD F. BERGNER</FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Director</FONT></TD>
    <TD NOWRAP STYLE="text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">March&nbsp;26, 2013</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><B>Richard F. Bergner</B></FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;KENNETH I. DENOS</FONT></TD>
    <TD STYLE="vertical-align: top; padding-left: 9pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Director, Secretary and Chief Compliance Officer</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">March&nbsp;26, 2013</FONT></TD></TR>
<TR>
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><B>Kenneth I. Denos</B></FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;GREGORY J. FLANAGAN</FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Director</FONT></TD>
    <TD NOWRAP STYLE="text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">March&nbsp;26, 2013</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><B>Gregory J. Flanagan</B></FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; font-weight: bold; line-height: 115%; font-size: 7.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;HENRY W. HANKINSON</FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Director</FONT></TD>
    <TD NOWRAP STYLE="text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">March&nbsp;26, 2013</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><B>Henry W. Hankinson</B></FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;ROBERT L. KNAUSS</FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Director</FONT></TD>
    <TD NOWRAP STYLE="text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">March&nbsp;26, 2013</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><B>Robert L. Knauss</B></FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;BERTRAND DES PALLIERES</FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Director</FONT></TD>
    <TD NOWRAP STYLE="text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">March&nbsp;26, 2013</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><B>Bertrand des Pallieres</B></FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;JOHN A. HARDY</FONT></TD>
    <TD STYLE="vertical-align: top; padding-left: 9pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Director, Chief Executive Officer (Principal Executive Officer)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">March&nbsp;26, 2013</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><B>John A. Hardy</B></FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/</FONT><FONT STYLE="font-size: 7.5pt">S</FONT><FONT STYLE="font-size: 10pt">/&nbsp;&nbsp;&nbsp;&nbsp;L&rsquo;SHERYL D. HUDSON</FONT></TD>
    <TD STYLE="vertical-align: top; padding-left: 9pt; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">March 26, 2013</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold; line-height: 115%; font-size: 11pt; text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><B>L&rsquo;Sheryl D. Hudson</B></FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; line-height: 115%; font-size: 10pt">&nbsp;</TD></TR>
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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>ex31_1ceocertification.htm
<DESCRIPTION>EXHIBIT 31.1 CEO ANNUAL CERTIFICATION
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B><A HREF="f10q_equus.htm">EXHIBIT 31.1</A> </B></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 Form 10-K 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;26, 2013</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 40%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 100%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ JOHN A. HARDY</P>
        <P STYLE="font: 4pt/1pt Times New Roman, Times, Serif; margin: 1pt 0 0; text-align: center; text-indent: 0.5in; border-top: Black 1pt solid">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12pt; text-indent: -12pt"><B>John A. Hardy</B></P>
        <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>
</TABLE>


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

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>ex31_2cfocertification.htm
<DESCRIPTION>31.2 CFO ANNUAL CERTIFICATION
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B><A HREF="f10q_equus.htm">EXHIBIT 31.2</A> </B></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 Form 10-K 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;26, 2013</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 40%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 100%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ L&rsquo;SHERYL D. HUDSON</P>
        <P STYLE="font: 4pt/1pt Times New Roman, Times, Serif; margin: 1pt 0 0; text-align: center; text-indent: 0.5in; border-top: Black 1pt solid">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <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>
</TABLE>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>ex32_1ceocertification.htm
<DESCRIPTION>EXHIBIT 32.1 CEO CERTIFICATION
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B><A HREF="f10q_equus.htm">EXHIBIT 32.1</A> </B></P>

<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 Form 10-K for the period ended December&nbsp;31, 2012 (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;26, 2013</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 40%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 100%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ JOHN A. HARDY</P>
        <P STYLE="font: 4pt/1pt Times New Roman, Times, Serif; margin: 1pt 0 0; text-align: center; text-indent: 0.5in; border-top: Black 1pt solid">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12pt; text-indent: -12pt"><B>John A. Hardy </B></P>
        <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>
</TABLE>


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

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<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>ex32_2cfocertification.htm
<DESCRIPTION>EXHIBIT 32.2 CFO CERTIFICATION
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B><A HREF="f10q_equus.htm">EXHIBIT 32.2</A> </B></P>

<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 Form 10-K for the period ended December&nbsp;31, 2012 (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>

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<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>

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<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;26, 2013</P>

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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ L&rsquo;SHERYL D. HUDSON</P>
        <P STYLE="font: 4pt/1pt Times New Roman, Times, Serif; margin: 1pt 0 0; text-align: center; text-indent: 0.5in; border-top: Black 1pt solid">&nbsp;</P></TD></TR>
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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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