<SEC-DOCUMENT>0000721748-13-000093.txt : 20130430
<SEC-HEADER>0000721748-13-000093.hdr.sgml : 20130430
<ACCEPTANCE-DATETIME>20130430170757
ACCESSION NUMBER:		0000721748-13-000093
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20130430
DATE AS OF CHANGE:		20130430
EFFECTIVENESS DATE:		20130430

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:		DEFA14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	814-00098
		FILM NUMBER:		13798772

	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>DEFA14A
<SEQUENCE>1
<FILENAME>defa14a_equus1.htm
<DESCRIPTION>DEFA 14A
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SCHEDULE 14A INFORMATION </B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>Statement Pursuant to Section&nbsp;14(a)
of the </B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Securities Exchange Act of 1934 </B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Amendment No. &nbsp;&nbsp;&nbsp;&nbsp;)
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">Filed by the Registrant <FONT STYLE="font-family: Wingdings">x</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Filed
by Party other than the Registrant <FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">Check the appropriate box:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD>Preliminary proxy statement</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: 0"></TD><TD STYLE="width: 24.45pt"><FONT STYLE="font-family: Wingdings"><B>&#168;</B></FONT></TD><TD><B>Confidential, for use of the Commission only (as permitted by Rule 14a-6(e)(2))</B></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: 0"></TD><TD STYLE="width: 24.45pt"><FONT STYLE="font-family: Wingdings">x</FONT></TD><TD>Definitive proxy statement</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: 0"></TD><TD STYLE="width: 24.45pt"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD>Definitive additional materials</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: 0"></TD><TD STYLE="width: 24.45pt"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD>Soliciting materials pursuant to Rule 14a-11(c) or Rule 14a-12</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>EQUUS TOTAL RETURN, INC. </B></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Name of Registrant as Specified in Its
Charter) </B></P>

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

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Name of Person(s) Filing Proxy Statement,
if Other Than the Registrant) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">Payment of Filing Fee (Check the appropriate box):</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: 0"></TD><TD STYLE="width: 24.45pt"><FONT STYLE="font-family: Wingdings">x</FONT></TD><TD>No fee required.</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: 0"></TD><TD STYLE="width: 24.45pt"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD>Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.</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">(1)</TD><TD>Title of each class of securities to which transaction applies:</TD></TR></TABLE>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><U>&nbsp;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;</U></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">(2)</TD><TD>Aggregate number of securities to which transaction applies:</TD></TR></TABLE>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><U>&nbsp;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;</U></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">(3)</TD><TD>Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on
which the filing fee is calculated and state how it was determined):</TD></TR></TABLE>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><U>&nbsp;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;</U></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">(4)</TD><TD>Proposed maximum aggregate value of transaction:</TD></TR></TABLE>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><U>&nbsp;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;</U></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">(5)</TD><TD>Total fee paid:</TD></TR></TABLE>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><U>&nbsp;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;</U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD>Fee paid previously with preliminary materials.</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: 0"></TD><TD STYLE="width: 24.45pt"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD>Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing fee for which
the offsetting fee was paid previously. Identify the previous filing by registration number, or the form or schedule and the date
of its filing.</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">(1)</TD><TD>Amount Previously Paid:</TD></TR></TABLE>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><U>&nbsp;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;</U></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">(2)</TD><TD>Form, Schedule, or Registration Statement No.:</TD></TR></TABLE>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><U>&nbsp;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;</U></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">(3)</TD><TD>Filing Party:</TD></TR></TABLE>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><U>&nbsp;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;</U></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">(4)</TD><TD>Date Filed:</TD></TR></TABLE>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><U>&nbsp;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;</U></P>


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<P STYLE="font: 9pt Sans-Serif; margin: 0; color: Red"><B><IMG SRC="image_001.jpg" ALT="">&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0"><B>Notice of the 2013 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Annual Meeting of Stockholders </B></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: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 13%; font: 1pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 87%; font: 1pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>Meeting&nbsp;Date:</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">June 14,&nbsp;2013</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><B>Meeting&nbsp;Time:</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">10:00 a.m.,&nbsp;EDT</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top;font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>Location:</B></FONT></TD>
    <TD STYLE="vertical-align: bottom">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Goodwin Procter LLP</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The New York Times Building</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">26th Floor</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">620 Eighth Avenue</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">New York, NY 10018</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><B>Purpose of the Meeting </B></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: 18.35pt">&bull;</TD><TD>To elect 9 directors, each for a term of one year;</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: 18.35pt">&bull;</TD><TD>To ratify the appointment of UHY LLP as the Fund&rsquo;s independent auditor for the fiscal year ending December&nbsp;31, 2013;</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: 18.35pt">&bull;</TD><TD>To approve, on a non-binding advisory basis, the compensation paid to the Fund&rsquo;s named executive officers in 2012; 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: 18.35pt">&bull;</TD><TD>To transact such other business as may properly come before the annual meeting.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">All holders of record of shares of the Fund&rsquo;s common
stock (NYSE: EQS) at the close of business on May 10, 2013 (the &ldquo;Record Date&rdquo;), or their legal proxy holders, are entitled
to vote at the meeting and any postponements or adjournments of the meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">Please submit a proxy as soon as possible so that your shares
can be voted at the meeting in accordance with your instructions. You may submit your proxy online, by phone, or by mail. For specific
instructions, please refer to the Questions and Answers in this proxy statement and the instructions on the proxy card.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">We are distributing this proxy statement and proxy form to
stockholders on or about May 14, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0 330.45pt; text-indent: -12.25pt">By order of the Board of Directors,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0 330.45pt; text-indent: -12.25pt">JOHN A. HARDY</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 330.45pt; text-indent: -12.25pt"><B><I>Chief Executive Officer</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">April 30, 2013</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>Important Notice Regarding the Availability
of Proxy Materials</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>for the Fund&rsquo;s Annual Meeting of Stockholders
to be held on June 14, 2013 </B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 9pt 0 0"><FONT STYLE="font-size: 10pt">This proxy statement, proxy
card and the Fund&rsquo;s Annual Report to Stockholders for the fiscal year ended December&nbsp;31, 2012 are available free of
charge at the following website:</FONT> <FONT STYLE="font-size: 10pt">http://www.equuscap.com/investor_reports.htm or by calling
Georgeson, Inc., our proxy solicitor, at (888) 624-2255. </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>SUITE 930 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>HOUSTON, TX 77046 </B></P>

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

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


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Suite 930 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Houston, Texas 77046 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-align: center"><B>PROXY STATEMENT </B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">This proxy statement contains information
relating to the annual meeting of Equus Total Return, Inc. (&ldquo;EQS&rdquo; or the &ldquo;Fund&rdquo;). The annual meeting of
stockholders (the &ldquo;Meeting&rdquo;) or any postponement or adjournment thereof will be held on June 14, 2013, beginning at
10:00 a.m., Eastern Daylight Time, at Goodwin Procter LLP, The New York Times Building, 26th Floor, 620 Eighth Avenue, New&nbsp;York,
NY 10018. The Board of Directors (sometimes referred to hereinafter as the &ldquo;Board&rdquo;) is sending stockholders this proxy
statement to solicit proxies to be voted at the annual meeting. It is being mailed to stockholders on or about May 14, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.25in 0 0; text-align: center"><B>ABOUT THE MEETING </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><B><I>What is the purpose of the Meeting? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">At the Meeting, stockholders will be
asked to elect Fund directors (see Proposal&nbsp;1), ratify the selection of the Fund&rsquo;s independent registered public accounting
firm (see Proposal 2), and approve, on a non-binding advisory basis, compensation paid to the Fund&rsquo;s named executive officers
in 2012 (see Proposal 3).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>Who is entitled to vote at the Meeting? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">If you owned shares of the Fund on
the Record Date, you are entitled to receive notice of and to participate in the Meeting. A list of stockholders on the Record
Date will be available for inspection at the Fund&rsquo;s office at Eight Greenway Plaza, Suite 930, Houston, Texas 77046 for ten
days before the Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>What are the voting rights of holders of the Fund&rsquo;s
common stock? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">You may cast one vote per share of
the Fund&rsquo;s common stock that you held on the Record Date on each proposal considered at the Meeting. These shares are: (a)&nbsp;held
directly in your name as the stockholder of record or (b)&nbsp;held for you as the beneficial owner through a stockbroker, bank,
or other nominee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>What is the difference between holding shares as
a stockholder of record and as a beneficial owner? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">Many stockholders of the Fund hold
their shares in &ldquo;street name&rdquo; through a stockbroker, bank or other nominee rather than directly in their own name.
There are some important distinctions in how Fund shares are held.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Stockholder of Record</I>. If your
shares are registered directly in your name with the Fund&rsquo;s transfer agent, American Stock Transfer&nbsp;&amp; Trust Company,
you are considered, with respect to those shares, the stockholder of record; therefore, these proxy materials are being sent directly
to you by the Fund. As the stockholder of record, you have the right to vote in person at the Meeting, or to grant your voting
proxy directly to the Fund. You may vote online, by phone, or by mail.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Beneficial Owner</I>. If your shares
are held in a stock brokerage account or by a bank or other nominee, you are considered the beneficial owner of shares held in
&ldquo;street name.&rdquo; Your broker or nominee, who is considered the stockholder of record with respect to those shares, has
forwarded these proxy materials to you. As the beneficial owner, you have the right to provide your broker with instructions on
how to vote and are also invited to attend the Meeting. However, since you are not the stockholder of record, you may not vote
these shares in person at the Meeting (unless you have a signed proxy from the record holder, as described below). Your broker
or nominee has enclosed a voting instruction card for you to use in directing the broker or nominee regarding how to vote your
shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Broker Discretionary
Voting</I>. New York Stock Exchange (&ldquo;NYSE&rdquo;) rules permit a broker member to vote on certain &ldquo;routine&rdquo;
matters, including the ratification of auditors, without instructions from the beneficial owner of the shares. The election of
directors and the non-binding vote concerning compensation of the Fund&rsquo;s named executive officers in 2012 are considered
non-routine; therefore, brokers are not permitted to vote in respect of these matters without instructions from the beneficial
owners. If you hold your stock in street name and you do not instruct your broker how to vote in the election of directors
and these three proposals described in more detail herein, no votes will be cast on your behalf. Therefore, it is important that
you cast your vote if you want it to count in respect of these matters. &#9;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">A quorum must be present at the Meeting
for any business to be conducted. The presence at the Meeting, in person or by proxy, of a majority of the shares of common stock
outstanding on the Record Date, or 5,280,823 shares, will constitute a quorum. As of the Record Date, 10,561,646 shares of the
Fund&rsquo;s common stock, representing the same number of votes, were outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">If there are not enough votes for a quorum
or to approve a proposal at the Meeting, the stockholders who are represented in person or by proxy may adjourn the Meeting to
permit the further solicitation of proxies. The persons named as proxies will vote proxies held by them for such adjournment, unless
marked to be voted against any proposal for which an adjournment is sought, to permit the further solicitation of proxies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>What are the Board&rsquo;s recommendations? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">The Board recommends a vote &ldquo;<B>For</B>&rdquo;
the election of the nominated slate of directors (see Proposal&nbsp;1), &ldquo;<B>For</B>&rdquo; the ratification of the appointment
of UHY LLP (&ldquo;UHY&rdquo;) as the Fund&rsquo;s independent registered public accounting firm (see Proposal&nbsp;2), and &ldquo;<B>For</B>&rdquo;
the approval, on a non-binding advisory basis, of compensation paid to the Fund&rsquo;s named executive officers in 2012 (see Proposal
3). Unless you give other instructions in your proxy, the persons named as proxy holders on the proxy card will vote in accordance
with the recommendations of the Board. With respect to any other matter that properly comes before the Meeting, the proxy holders
will vote as recommended by the Board or, if no recommendation is given, in their own discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>What vote is required to approve the proposals? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt"><I>Election of Directors</I>. A plurality
of votes cast at the Meeting at which a quorum is present is required to elect a director. Abstentions will not be counted as votes
cast and will have no effect on this proposal. Brokers may not vote uninstructed shares held in street name for this proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Ratification of Public Accounting
Firm</I>. The affirmative vote of a majority of all of the votes cast at the Meeting at which a quorum is present is required to
ratify the selection of the public accounting firm. Abstentions will not be counted as votes cast and will have no effect on this
proposal. Brokers may vote uninstructed shares held in street name for this proposal, and their votes will count as present for
quorum purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Non-Binding Advisory Vote Approving
Executive Compensation in 2012</I>. The affirmative vote of a majority of all of the votes cast at the Meeting at which a quorum
is present is required to approve, on a non-binding advisory basis, compensation paid to the Fund&rsquo;s named executive officers
in 2012. Abstentions will not be counted as votes cast and will have no effect on this proposal. Brokers may not vote uninstructed
shares held in street name for this proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>How are votes counted? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">In the election of directors, you may
vote &ldquo;<B>For</B>&rdquo; all of the nominees or your vote may be &ldquo;<B>Withheld</B>&rdquo; with respect to one or more
of the nominees. To ratify the selection of the independent auditor, you may vote &ldquo;<B>For</B>&rdquo; the ratification, &ldquo;<B>Against</B>,&rdquo;
or you may &ldquo;<B>Abstain</B>.&rdquo; To cast your vote concerning the remaining proposal &ndash; the non-binding approval of
compensation paid to the Fund&rsquo;s executive officers in 2012 &ndash; you may also vote &ldquo;<B>For</B>&rdquo; or &ldquo;<B>Against</B>&rdquo;
this proposal, or you may &ldquo;<B>Abstain</B>&rdquo; from voting in respect of this proposal. If you execute your proxy or provide
broker voting instructions without specifying further your preference as to the nominees, your shares will be voted in accordance
with the recommendations of the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>Who can attend the Meeting? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">All stockholders as of the Record Date,
or their duly appointed proxies, may attend the Meeting. Each stockholder may be asked to present valid identification. Cameras,
recording devices, and other electronic devices will not be permitted at the Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Please note that if you hold your shares
in &ldquo;street name&rdquo; (that is, through a broker, bank, or other nominee), you will need to bring a copy of a brokerage
statement reflecting your stock ownership as of the Record Date.</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>How can I vote my shares in person at the Meeting?
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">Shares held directly in your name as
the stockholder of record may be voted in person at the Meeting. If you choose to do so, please bring proof of identification.
Even if you plan to attend the Meeting, we recommend that you vote your shares in advance as described below so that your vote
will be counted if you later decide not to attend the Meeting. Shares held in street name may be voted in person by you only if
you obtain a signed proxy from the record holder giving you the right to vote the shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>How can I vote my shares without attending the Meeting?
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">Whether you hold shares directly as
the stockholder of record or beneficially in street name, you may direct your vote without attending the Meeting by granting your
voting proxy to the Fund (if you are the stockholder of record) or by providing voting instructions to your broker or nominee (if
you hold shares beneficially in street name). You may vote online, by phone, or by mail. Please refer to the enclosed voting instruction
card for details.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>Can I change my vote after I execute my proxy? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">Yes. You may change your proxy instructions
at any time prior to the vote at the Meeting. You may accomplish this by granting a new proxy or new broker voting instructions
at a later date (which automatically revokes the earlier proxy instructions) or by attending the Meeting and voting in person.
Attendance at the Meeting will not cause your previously granted proxy to be revoked unless you specifically so request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>What does it mean if I receive more than one notice
of the Meeting? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">It means your shares are registered
differently or are in more than one account. Please grant a voting proxy and/or provide voting instructions for all accounts that
you hold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>Where can I find the voting results of the Meeting?
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">We will publish final results of the
Meeting in a Fund Form 8-K within four business days after the day on which the Meeting ended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>Who can I call if I have a question? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">If you have any questions about this
proxy statement, please call our proxy solicitor, Georgeson, Inc., toll-free at 1-888-624-2255.</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><B><I>Who are the largest owners of the Fund&rsquo;s stock?
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">Based on a review of filings with the
SEC and other records of the Fund, the Fund is aware of five beneficial owners of more than 5% of the outstanding shares of the
Fund&rsquo;s common stock: (i)&nbsp;Sam and Paula Douglass and certain trusts directed by them; (ii)&nbsp;Mobiquity Investments
Limited and Versatile Systems Inc.; (iii) Philip Goldstein, Andrew Dakos, Bulldog Investments and Brooklyn Capital Management;
(iv) Khan Investments Ltd. and Christian Kruppa; and (v) Lansdowne Capital Ltd. and Bertrand des Pallieres.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>How much stock do the Fund&rsquo;s directors and
executive officers own? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">The following table shows the amount
of the Fund&rsquo;s common stock beneficially owned (unless otherwise indicated) as of April 25, 2013, by (1)&nbsp;any person known
to the Fund to be the beneficial owner of more than 5% of the outstanding shares of the Fund&rsquo;s common stock, (2)&nbsp;each
director/director nominee of the Fund, (3)&nbsp;each named executive officer, and (4)&nbsp;all directors/director nominees and
executive officers as a group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The number of shares beneficially owned
by each entity, person, director/director nominee, or executive officer is determined under SEC rules and the information is not
necessarily indicative of beneficial ownership for any other purpose. Under such rules, beneficial ownership includes any shares
as to which the entity or individual has sole or shared voting power or investment power and also any shares that the entity or
individual had the right to acquire as of April 25, 2013, or within 60 days after April 25, 2013, through the exercise of any stock
option or other right. Unless otherwise indicated, to our knowledge each individual has sole investment and voting power, or shares
such powers with his spouse, with respect to the shares set forth in the table.</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 1pt">&nbsp;</TD><TD STYLE="font-size: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 1pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 1pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 1pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 1pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0"><B>Name</B></P> <P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt; text-indent: 0.5in">&nbsp;</P></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Sole<BR> Voting&nbsp;and<BR> Investment<BR> Power</B></P> <P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt; text-align: center; text-indent: 0.5in">&nbsp;</P></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Other<BR> Beneficial<BR> Ownership</B></P> <P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt; text-align: center; text-indent: 0.5in">&nbsp;</P></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Total</B></P> <P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt; text-align: center; text-indent: 0.5in">&nbsp;</P></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Percent of<BR> Class<BR> Outstanding</B></P> <P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt; text-align: center; text-indent: 0.5in">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; font-size: 11pt; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Fraser Atkinson</FONT><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><SUP>(1)</SUP></FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9;</FONT></TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">1,889</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">970,087</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">971,976</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">9.20</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 11pt; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Alessandro Benedetti</FONT><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><SUP>(1) (2)</SUP></FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9;</FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,370,087</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,370,087</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12.97</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Richard F. Bergner&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Kenneth I. Denos&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,754</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,754</TD><TD STYLE="text-align: left">*</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 11pt; text-align: left; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Paula T. Douglass</FONT><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><SUP>(3)</SUP></FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9;</FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">301,555</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">301,555</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.86</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 11pt; text-align: left; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Sam P. Douglass</FONT><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><SUP>(4)</SUP></FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9;</FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">669,414</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">669,414</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.34</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Gregory J. Flanagan&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,514</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,514</TD><TD STYLE="text-align: left">*</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-size: 11pt; text-align: left; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Philip Goldstein, <I>et. al.</I></FONT><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><SUP>(5)</SUP></FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9;</FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">432,282</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">169,865</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">602,147</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.70</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Henry W. Hankinson&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 11pt; text-align: left; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">John A. Hardy</FONT><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><SUP>(1)</SUP></FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &#9;</FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">970,087</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">970,087</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.18</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 11pt; text-align: left; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">L&rsquo;Sheryl D. Hudson</FONT><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><SUP>(6)</SUP></FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9;</FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Robert L. Knauss&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,670</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,670</TD><TD STYLE="text-align: left">*</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 11pt; text-align: left; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Christian Kruppa</FONT><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><SUP>(7)</SUP></FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">.&#9;</FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">850,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">850,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.05</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 11pt; text-align: left; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Bertrand des Pallieres</FONT><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><SUP>(1) (8)</SUP></FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9;</FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">60,369</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,956,929</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,017,298</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19.10</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">All directors/director nominees and executive officers as a group (10 persons)&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">113,196</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,356,929</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,470,125</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23.39</TD><TD STYLE="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></TR>
</TABLE>



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

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

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>Indicates less than one percent.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(1)</TD><TD>Includes 970,087 shares held directly by Mobiquity Investments Limited and Versatile Systems Inc. Each individual disclaims
beneficial ownership of the securities held directly by Mobiquity Investments Limited and Versatile Systems Inc. and nothing herein
shall be construed as an admission that such individual is, for the purpose of Section 13(d) or 13(g) of the Securities Exchange
Act of 1934, the beneficial owner of any such securities.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(2)</TD><TD>Also includes 400,000 shares held directly by EB Finance S.A. Mr. Benedetti disclaims beneficial ownership of the securities
held directly by EB Finance S.A. and nothing herein shall be construed as an admission that Mr. Benedetti is, for the purpose of
Section 13(d) or 13(g) of the Securities Exchange Act of 1934, the beneficial owner of any such securities.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(3)</TD><TD>Includes (a) 301,555 shares held directly by Ms. Douglass and (b) 53,986 shares held by a trust of which Ms. Douglass is a
beneficiary. Ms.&nbsp;Douglass&rsquo; business address is 3229 Groveland Lane, Houston, Texas 77019.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(4)</TD><TD>Includes (a)&nbsp;565,583 shares held by trusts for the benefit of Mr. Douglass&rsquo; family and (b) 52,257 shares held by
a trust of which Mr. Douglass is a beneficiary. Mr. Douglass&rsquo; business address is 3229 Groveland Lane, Houston, Texas 77019.</TD></TR></TABLE>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(5)</TD><TD>Includes shares beneficially held by Philip Goldstein, Andrew Dakos, Bulldog Investors, and Brooklyn Capital Management. The
power to dispose of and vote these securities resides either with Mr. Goldstein, Mr. Dakos, or with clients.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(6)</TD><TD>Ms. Hudson serves as the Fund&rsquo;s Vice President and Chief Financial Officer. Ms. Hudson is not a director or director
nominee of the Fund.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(7)</TD><TD>Includes 850,000 shares held directly by Khan Investments Ltd. which is owned and controlled by Mr. Kruppa. Mr. Kruppa&rsquo;s
business address is RAK Offshore, P.O. Box 333 558, Dubai, United Arab Emirates.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(8)</TD><TD>Includes 60,369 shares held directly by Mr. des Pallieres. Also includes 986,842 shares held directly by Lansdowne Capital
S.A., a Luxembourg company that is indirectly wholly-owned by Mr. des Pallieres.</TD></TR></TABLE>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Section&nbsp;16(a) beneficial ownership compliance </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">Under the federal securities laws,
our directors, executive officers, and any persons beneficially owning more than ten percent of our common stock are required to
report their ownership of our common stock and any changes in that ownership to the Fund and the SEC. Specific due dates for these
reports have been established by regulation. Based solely upon a review of reports furnished to the Fund and written representations
of certain persons that no other reports were required, we believe that all of our directors and executive officers complied during
2012 with the reporting requirements of Section&nbsp;16(a) of the Securities Exchange Act of 1934 (the &ldquo;Exchange Act&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0; text-align: center"><B>COMPENSATION OF NAMED EXECUTIVE
OFFICERS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><B><I>Compensation Discussion and Analysis </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">This Compensation Discussion and Analysis
provides information about the fiscal year 2012 compensation policy for our named executive officers (&ldquo;NEOs&rdquo;). Our
Compensation Committee determines the compensation terms for our Chief Executive Officer and the Board determines the fees that
may be charged by our Secretary and Chief Compliance Officer for his services. Our Chief Executive Officer determines compensation
for all other NEOs. This section explains how compensation decisions were made for our NEOs during the year. The discussion below
also addresses the principal elements of our approach to compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our NEOs are compensated with a view
to satisfying two objectives: (i)&nbsp;compensating the Fund&rsquo;s NEOs appropriately for their contributions to the Fund&rsquo;s
growth, profitability and other goals and objectives; and (ii)&nbsp;linking the interests of the Fund&rsquo;s NEOs to the long-term
interests of the Fund&rsquo;s equity owners. The compensation terms for our NEOs generally recognize both short-term and long-term
success but these compensation arrangements also emphasize rewarding the intermediate and long-term performance of our NEOs, as
measured by the Fund&rsquo;s performance and relative shareholder return.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Most of our compensation arrangements
with our NEOs consist primarily of two elements: base salary and possible annual cash bonus. In addition, while certain of our
executives participate in a defined contribution retirement plan, we do not have any supplemental retirement benefits and generally
do not provide perquisites to our executive officers. Our Chief Executive Officer and Secretary, for example, receive no health,
retirement, or other employment-related benefits. Accordingly, we believe that the total level of compensation is critical to maintaining
the competitiveness of our compensation arrangements, particularly given the absence of supplemental benefits and plans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We pay base compensation to our NEOs,
which constitutes the bulk of their total remuneration. While the NEOs&rsquo; initial base compensation is determined by an assessment
of competitive market levels, the factors used in determining changes to base compensation include individual performance, changes
in role and/or responsibility and changes in the competitive market environment. The Fund may pay an annual cash bonus that results
in cash payments to our NEOs. The amount of the cash bonus is determined by the individual agreements with our NEOs or by our Chief
Executive Officer on a discretionary basis. In the case of our Secretary and Chief Compliance Officer or other members of our Board
who provide services to the Fund, the Board has determined an hourly rate of $250.00 for such services. Our Chief Executive Officer
is the only NEO with whom we have a compensation agreement. The terms of this agreement are summarized on page 15 of this proxy
statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In determining the structure of our executive
compensation policies and the appropriate levels of incentive opportunities, the Compensation Committee or our Chief Executive
Officer, as appropriate, considers whether the policies reward reasonable risk-taking and whether the incentive opportunities achieve
the proper balance between the need to reward employees and the need to protect shareholder returns. We believe that the focus
on total compensation provides incentives to create long-term value for shareholders while taking thoughtful and prudent risks
to grow the Fund.</P>

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


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<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">The following table summarizes the
total compensation that the Fund paid during the fiscal years ended December&nbsp;31, 2012 and 2011 to the NEOs, who are the Chief
Executive Officer and the Chief Financial Officer, and our other most highly compensated executive officers who received more than
$100,000 in annual compensation from the Fund.</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: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 19%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 7%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 9%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 7%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 8%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 8%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 10%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 11%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 11%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 10%; font-size: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><B>Name and</B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><B>Principal Position</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Year</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Salary ($)</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Bonus<BR>
        ($)</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Stock<BR>
        Awards<BR>
        ($)</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Option<BR>
        Awards<BR>
        ($)</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Non-Equity</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>Incentive Plan</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>Compensation</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>($)</B></FONT></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Change in</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>Pension Value</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>and</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>Nonqualified</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>Deferred</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>Compensation</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>Earnings ($)</B></FONT></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>All Other</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>Compensation</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>($)&nbsp;*</B></FONT></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Total ($)</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top;padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">John A. Hardy*&mdash;CEO&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;2012&#9;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;2011&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;200,000</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;200,000</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;150,000</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;150,000</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 19.6pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 19.6pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 19.6pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 19.6pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;&#8213;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;&#8213;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;350,000</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">350,000</P></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="padding-left: 19.6pt; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: right; font-size: 6pt"><FONT STYLE="font-size: 6pt">&#9;</FONT></TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top;  padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">L&rsquo;Sheryl D. Hudson&mdash;CFO&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;2012</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;2011</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;175,000&#9;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;175,000&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;17,019</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;8,071&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 19.6pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 19.6pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 19.6pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 19.6pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;5,761</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;5,453</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;197,779</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;188,523</P></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">S. Jay Brown&mdash;Chief Investment Officer&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;&#9;2012</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;2011&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;&#8213;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;218,750&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;51,115&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 19.6pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 19.6pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 19.6pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 19.6pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;&#8213;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;3,938</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;&#9;&#8213;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;273,803</P></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; padding-left: 19.6pt; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; padding-left: 19.6pt; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.75pt; text-align: right; font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Kenneth I. Denos&mdash; Secretary and CCO&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;2012&#9;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;2011&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;249,813</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;239,000</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 19.6pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 19.6pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 19.6pt">&#9;n/a</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 19.6pt">&#9;n/a&#9;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;&#8213;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;&#8213;</P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;249,813</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;239,000</P></TD></TR>
</TABLE>
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<DIV STYLE="text-align: left; margin: 1pt 5in 1pt 0in">&nbsp;</DIV>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>Reflects the Fund&rsquo;s contributions to vested and unvested defined contribution plans of the NEOs.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>Report of the Compensation Committee </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">As part of our responsibilities, we
have reviewed and discussed with management the Compensation Discussion and Analysis required by Item&nbsp;402(b) of Regulation
S-K, which begins on page 7 of this proxy statement. Based on such review and discussions, we have recommended to the Board of
Directors the inclusion of the Compensation Discussion and Analysis in this proxy statement.</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">Henry W. Hankinson</P>

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

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0; text-align: center"><B>GOVERNANCE OF THE FUND </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><B><I>How is the Fund&rsquo;s management structured? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">The Board of Directors changed the
Fund&rsquo;s operations to an internalized management structure on July&nbsp;1, 2009. This means that, unlike many closed-end funds
and business development companies, the Fund now directly employs its management team and incurs the costs and expenses associated
with Fund operations. There is no outside investment advisory organization providing services to the Fund under a fee-based advisory
agreement, or an administrative organization charging the Fund for services rendered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>What are the duties of the Board of Directors? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt"><I>Leadership Structure</I>. The Board
provides overall guidance and supervision with respect to the operations of the Fund and performs the various duties specified
for directors of business development companies under the Investment Company Act of 1940 (the &ldquo;1940 Act&rdquo;). Among other
things, the Board supervises Fund management, the custodial arrangements for portfolio securities, the selection of accountants,
fidelity bonding, and transactions with affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Board meets in regularly scheduled
meetings each year. All Board actions are taken by majority vote unless a higher percentage is required by law or the Fund&rsquo;s
certificate of incorporation or by-laws require that the actions be approved by a majority of the directors who are not &ldquo;interested
persons&rdquo; (as defined in the 1940 Act) of the Fund&mdash;referred to as &ldquo;independent directors.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The 1940 Act requires that a majority
of the Fund&rsquo;s directors be independent directors. The Board is currently composed of 9 directors, including 6 independent
directors. As discussed below, the Board has established 4 Committees to assist the Board in performing its oversight responsibilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Board has appointed Alessandro Benedetti
as its Executive Chairman and John A. Hardy to serve as the Fund&rsquo;s Chief Executive Officer. In addition to being the principal
executive officer of the Fund, one of the Chief Executive Officer&rsquo;s roles is to set the agenda of the Board and determine
what information is provided to the Board with respect to matters to be acted upon by the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Board has also appointed Robert L.
Knauss as its independent Chairman. The independent Chairman presides at all meetings of the Board and leads the Board through
its various tasks. The Chairman also acts as a liaison with the Fund&rsquo;s principal executive officer in carrying out his functions.
The Chairman may perform such other functions as may be requested by the Board. The designation of Chairman does not impose on
such independent director any duties, obligations or liability that is greater than the duties, obligations or liability imposed
on such person as a member of the Board, generally.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Fund has determined that the Board&rsquo;s
leadership structure is appropriate given the characteristics and circumstances of the Fund, including such items as the business
development company requirements, net assets of the Fund, and the committee structure of the Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Risk Oversight</I>. Through the Board&rsquo;s
direct oversight role, and indirectly through its Committees, the Board performs a risk oversight function for the Fund consisting,
among other things, of the following activities:</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: 18.35pt">&bull;</TD><TD><I>General Oversight</I>. The Board meets with representatives of management and key service providers, including the custodian
and the independent audit firm of the Fund, to review and discuss the operational activities of the Fund and to provide direction
with respect thereto.</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: 18.35pt">&bull;</TD><TD><I>Compliance Oversight</I>. The Board reviews and approves, as applicable, the compliance procedures of Fund. The Board is
informed how the compliance procedures adhere to the operational requirements through its meeting with, and reports received from
the Chief Compliance Officer. The Board also discusses the adequacy of internal controls and compliance procedures with the Fund&rsquo;s
Chief Compliance Officer and independent auditors.</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: 18.35pt">&bull;</TD><TD><I>Investment Oversight</I>. The Board monitors Fund performance during the year through regular performance reports from management
with references to appropriate performance measurement indices and the performance of similar funds. The Board receives updates
on industry developments and portfolio company matters on a regular basis. The Board also monitors the Fund&rsquo;s investment
practices and reviews the Fund&rsquo;s investment strategies with management.</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: 18.35pt">&bull;</TD><TD><I>Valuation Oversight</I>. The Board has approved the valuation methodologies used in establishing the fair value of the Fund&rsquo;s
assets and monitors the accuracy with which the valuations are carried out. The Board receives regular reports on the use of fair
value prices and monitors the effectiveness of the valuation procedures.</TD></TR></TABLE>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>What Committees has the Board established? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">The Board has four standing committees:
an Audit Committee, a Governance and Nominating Committee, a Compensation Committee, and a Committee of Independent Directors.</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Who are the current Board members and what are their Committee
memberships? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">The members of the Board of Directors
on the date of this proxy statement and the Board Committees on which they serve are identified in the following table:</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: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 59%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 9%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 12%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 10%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 10%; font-size: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><B>Director</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Audit<BR>
        Committee</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Compensation<BR>
        Committee</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Committee<BR>
        of<BR>
        Independent<BR>
        Directors</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Governance<BR>
        and<BR>
        Nominating<BR>
        Committee</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Alessandro Benedetti, Executive Chairman&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; line-height: 2pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Robert L. Knauss, Non-Executive Chairman&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 12pt; text-align: center"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Chair</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 12pt; text-align: center"><FONT STYLE="font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Fraser Atkinson&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Chair</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; line-height: 2pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; line-height: 2pt">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Richard F. Bergner&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 12pt; text-align: center"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 12pt; text-align: center"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Chair</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Kenneth I. Denos&#9;</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; line-height: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; line-height: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; line-height: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; line-height: 2pt">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Gregory J. Flanagan&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; line-height: 2pt">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top;  padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Henry W. Hankinson&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Chair</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 12pt; text-align: center"><FONT STYLE="font-size: 10pt">*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top;  padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">John A. Hardy&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top;  padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Bertrand des Pallieres&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 12pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 12pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 0.1in; font-size: 4pt; line-height: 2pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>Audit Committee </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">The charter of the Audit Committee
specifies that the purpose of the Audit Committee is to assist the Board in its oversight of the integrity of:</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: 18.35pt">&bull;</TD><TD>The Fund&rsquo;s financial statements,</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: 18.35pt">&bull;</TD><TD>The Fund&rsquo;s compliance with legal and regulatory requirements,</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: 18.35pt">&bull;</TD><TD>The independence and qualifications of the Fund&rsquo;s independent registered public accounting firm, 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: 18.35pt">&bull;</TD><TD>The performance of the Fund&rsquo;s internal audit function and independent registered public accounting firm.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In furtherance of the foregoing purpose,
the Audit Committee&rsquo;s authority and responsibilities include to:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">&bull;</TD><TD>Review and oversee the Fund&rsquo;s annual and quarterly financial statements;</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">&bull;</TD><TD>Discuss with management and the Fund&rsquo;s independent auditor, as appropriate, earnings press releases and financial information,
as well as financial information and earnings guidance provided to analysts and ratings agencies;</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">&bull;</TD><TD>Recommend, for shareholder approval, the appointment of the Fund&rsquo;s independent registered public accounting firm, and
oversee the compensation, retention, oversight, and other matters relating to the engagement or discharge of the independent registered
public accounting firm;</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">&bull;</TD><TD>Review with management and the independent auditor, as appropriate, any audit problems or difficulties the auditor encountered
in the course of the audit work and management&rsquo;s responses thereto;</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">&bull;</TD><TD>Discuss with management the Fund&rsquo;s risk assessment and risk management guidelines and policies, including the Fund&rsquo;s
major financial risk exposures and steps taken by management to monitor and control such exposures;</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">&bull;</TD><TD>Oversee the Fund&rsquo;s financial controls and reporting processes;</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">&bull;</TD><TD>Review the Fund&rsquo;s financial reporting and accounting standards and principles;</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">&bull;</TD><TD>Review the performance of the Fund&rsquo;s internal audit function and the performance of the independent registered public
accounting firm;</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">&bull;</TD><TD>Review and investigate any matters pertaining to the integrity of management, including conflicts of interest or adherence
to standards of business conduct; 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">&bull;</TD><TD>Establish procedures for handling complaints involving accounting, internal accounting controls, and auditing matters.</TD></TR></TABLE>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The charter of the Audit Committee is
available on the Fund&rsquo;s website (<I>www.equuscap.com</I>). The Committee schedules its meetings with a view to ensuring that
it devotes appropriate attention to all of its duties. The Committee&rsquo;s meetings include, whenever appropriate, executive
sessions with the Fund&rsquo;s independent registered public accounting firm without the presence of management.</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Each member of the Audit Committee is an independent
director within the meaning of SEC regulations and the listing standards of the New York Stock Exchange (&ldquo;NYSE&rdquo;). Fraser
Atkinson, the chair of the Audit Committee, is qualified as an audit committee financial expert within the meaning of SEC regulations
and the Board has determined that he has accounting and related financial management expertise within the meaning of the listing
standards of the NYSE. The Audit Committee met four times during 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>Committee of the Independent Directors </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">The functions of the Committee of the
Independent Directors are to: recommend to the full Board approval of any management, advisory, or administration agreements; recommend
to the full Board any underwriting or distribution agreements; review the fidelity bond and premium allocation; review any joint
insurance policies and premium allocation; review and monitor the Fund&rsquo;s compliance with procedures adopted pursuant to certain
rules promulgated under the 1940 Act, meet regularly with the Fund&rsquo;s Chief Compliance Officer; and carry out such other duties
as the independent directors shall, from time to time, conclude are necessary in the performance of their duties under the 1940
Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Committee of Independent Directors
met at regularly scheduled Board Meetings in executive sessions without any members of management present. Each member of this
Committee is an independent director within the meaning of SEC regulations and the listing standards of the NYSE.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">The Compensation Committee is responsible
for reviewing and evaluating the compensation of the Fund&rsquo;s Chief Executive Officer. In addition, the Compensation Committee
periodically reviews independent and interested director compensation and recommends any appropriate changes to the Board. Lastly,
the Compensation Committee produces a report on the Fund&rsquo;s executive compensation practices and policies for inclusion in
the Fund&rsquo;s proxy statement if required by applicable proxy rules and regulations and makes recommendations to the Board on
the Fund&rsquo;s executive compensation practices and policies. The charter of the Compensation Committee is available on the Fund&rsquo;s
website (<I>www.equuscap.com</I>).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Each member of the Compensation Committee
is an independent director within the meaning of SEC regulations and the listing standards of the NYSE. This Committee met two
times during 2012.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">The Governance and Nominating Committee
is responsible for developing and implementing policies and practices relating to corporate governance. The Committee selects individuals
for nomination to the Fund&rsquo;s Board. In addition, the Governance and Nominating Committee develops and reviews background
information on candidates for the Board and makes recommendations to the Board regarding such candidates. The Committee also prepares
and supervises the Board&rsquo;s annual review of director independence and the Board&rsquo;s performance self-evaluation. The
charter of the Governance and Nominating Committee is available on the Fund&rsquo;s website (<I>www.equuscap.com</I>).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">All of the members of the Governance
and Nominating Committee are independent directors within the meaning of SEC regulations and the listing standards of the NYSE.
This Committee met once during 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>How does the Board select nominees for the Board? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">The Governance and Nominating Committee
considers candidates for Board membership suggested by its members and other Board members, as well as management and stockholders.
A stockholder who wishes to recommend a prospective nominee for the Board should notify the Fund&rsquo;s Secretary or any member
of the Governance and Nominating Committee in writing in care of Equus Total Return, Inc., Eight Greenway Plaza, Suite 930, Houston,
TX 77046. To be considered by the Governance and Nominating Committee, stockholder nominations must be submitted before our fiscal
year-end and must be accompanied by a description of the qualifications of the proposed candidate and a written statement from
the proposed candidate that he or she is willing to be nominated and desires to serve if elected. The Governance and Nominating
Committee will also consider whether to nominate any person nominated by a stockholder pursuant to the provisions of the Fund&rsquo;s
by-laws relating to stockholder nominations as described in &ldquo;<I>Additional Information&mdash;Stockholder Proposals for the
2014 Annual Meeting</I>,&rdquo; below. Nominees for director who are recommended by stockholders will be evaluated in the same
manner as any other nominee for director.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Once the Governance and Nominating Committee
has identified a prospective nominee, the Committee makes an initial determination as to whether to conduct a full evaluation of
the candidate. This initial determination is based on whatever information is provided to the Committee with the recommendation
of the prospective candidate, as well as the Committee&rsquo;s own knowledge of the prospective candidate, which may be supplemented
by inquiries to the person making the recommendation or others. The preliminary determination is based primarily on the need for
additional Board members to fill vacancies or expand the size of the Board and the likelihood that the prospective nominee can
satisfy the evaluation factors considered by the Committee. If the Committee determines, in consultation with the other Board members
as appropriate, that additional consideration is warranted, it may gather additional information about the prospective nominee&rsquo;s
background and experience. A Committee member will interview a qualified candidate, and a qualified candidate may meet other directors.
The Committee then determines, based on the background information and information obtained in interviews, whether to recommend
to the Board that a candidate be nominated to the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Governance and Nominating Committee
believes a prospective nominee for director should, at a minimum, satisfy the following standards and qualifications and evaluates
prospective nominees accordingly:</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">&bull;</TD><TD>The ability of the prospective nominee to represent the interests of the stockholders of the Fund;</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">&bull;</TD><TD>The prospective nominee&rsquo;s standards of integrity, commitment, and independence of thought and judgment;</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">&bull;</TD><TD>The prospective nominee&rsquo;s ability to dedicate sufficient time, energy, and attention to the diligent performance of his
or her duties, including the prospective nominee&rsquo;s service on other public company boards; 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">&bull;</TD><TD>The extent to which the prospective nominee contributes to the range of talent, skill, and expertise appropriate for the Board.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Committee also considers such other
relevant factors as it deems appropriate, including the current composition of the Board, the balance of management and independent
directors, diversity, and the need for Audit Committee expertise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In considering diversity, the Committee
considers diversity of background and experience as well as ethnic and other forms of diversity. The Committee does not, however,
have any formal policy regarding diversity in identifying nominees for a directorship, but rather, considers it among the various
factors relevant to any particular nominee. After completing the evaluation and interview, the Committee makes a recommendation
to the full Board as to the persons who should be nominated by the Board, and the Board determines the nominees after considering
the recommendation and report of the Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>How does the Board determine which directors are considered
independent? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">When the Board undertook its annual
review of director independence, the Board considered transactions and relationships between each director or any member of his
immediate family and the Fund. The Board also examined transactions and relationships between directors or their affiliates and
members of the Fund&rsquo;s senior management or their affiliates. The purpose of this review was to determine whether any such
relationships or transactions were inconsistent with a determination that the director is independent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">As a result of this review, the Board
affirmatively determined that all of the directors nominated for election at the Meeting are independent of the Fund and its management
with the exception of Alessandro Benedetti, John A. Hardy and Kenneth I. Denos. Mr. Benedetti is an interested director because
he serves as the Fund&rsquo;s Executive Chairman. Mr. Hardy is an interested director because he serves as the Fund&rsquo;s Chief
Executive Officer. Mr.&nbsp;Denos is an interested director because he serves as the Fund&rsquo;s Secretary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>How often did the Board meet during 2012? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">During 2012, the Board met eight times.
Each director, save Mr. Des Pallieres, attended at least 75% of all meetings held by the Board or the committees of the Board on
which he served, and 7 of the directors attended all meetings of the Board and committees on which he served. The Fund does not
have a policy about directors&rsquo; attendance at the annual meeting of stockholders. All directors, save Mr. des Pallieres, attended
the Fund&rsquo;s annual meeting of stockholders on June 26, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B><I>How are directors compensated? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">During 2012, each independent director
received: (i)&nbsp;$5,000 for each quarter served on the Fund&rsquo;s Board plus $2,000 for each meeting of the directors attended;
(ii)&nbsp;$1,000 for participation in each meeting conducted by telephonic conference; (iii)&nbsp;$1,000 for each committee meeting
attended; and (iv)&nbsp;reimbursement for all out-of-pocket expenses relating to attendance at such meetings. The chair of the
Audit Committee receives $15,000 annually for his service. An annual fee of $15,000 is paid to the Non-Executive Chairman of the
Board.</P>

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

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">Interested directors who are not executive
officers of the Fund receive director fees for each director meeting attended. Interested directors may serve as directors of
portfolio companies and in such capacities may receive and retain directors&rsquo; fees and other compensation directly from the
portfolio companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We may also engage directors to perform
various services for the Fund, either on an interim basis or pursuant to a monthly consulting arrangement. In 2012, we paid Fraser
Atkinson a fee of $60,000 in lieu of his standard compensation as Chairman of the Audit Committee for additional duties undertaken
in connection with the Fund&rsquo;s review and analysis of its portfolio holdings for the year. Also in 2012, we paid Global Energy
Associates, LLC (&ldquo;GEA&rdquo;), a consulting firm owned by Henry W. Hankinson, $75,000 pursuant to a consulting agreement
with Equus Energy, LLC, in respect of sourcing and reviewing investment opportunities in the energy sector. The agreement with
GEA provides for monthly payments of $6,250 in respect of services rendered in connection with the engagement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In respect of services provided to the
Fund by members of the Board not in connection with their roles and duties as directors, the Fund pays a rate of $250 per hour
for services rendered. In connection with services rendered by Kenneth I. Denos, Secretary and Chief Compliance Officer of the
Fund, the Fund incurred $249,813 in such expenses in 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Independent/non-officer directors were
paid an aggregate of $310,000 and $293,000 as compensation for the years ended December&nbsp;31, 2012 and 2011, respectively. The
following table set forth compensation that the Fund paid to each person who served as a director during 2012:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 13.5pt 0 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>2012
Director Compensation Table</B></FONT><FONT STYLE="font-size: 9pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 1pt">&nbsp;</TD><TD STYLE="font-size: 1pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 1pt">&nbsp;</TD><TD STYLE="font-size: 1pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 1pt">&nbsp;</TD><TD STYLE="font-size: 1pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><B>Name</B></P> <!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Fees&nbsp;Earned&nbsp;or<BR> Paid in Cash<BR> ($)</B></P> <!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>All Other<BR> Compensation<BR> ($)</B></P> <!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Total<BR> ($)</B></P> <!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -12pt; padding-left: 12pt">Independent Directors</TD><TD STYLE="font-size: 4pt">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 4pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 4pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 4pt">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 4pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 4pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 4pt">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 4pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 46%; text-align: left; text-indent: -12pt; padding-left: 12pt">Fraser Atkinson*&#9;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; text-align: right">99,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; text-align: right">99,000</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; text-indent: -12pt; padding-left: 12pt">Richard F. Bergner.&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Gregory J. Flanagan&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,000</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; text-indent: -12pt; padding-left: 12pt">Henry W. Hankinson&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Robert L. Knauss&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,000</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; text-indent: -12pt; padding-left: 12pt">Bertrand des Pallieres&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 6pt">&nbsp;</TD><TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 6pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 6pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 6pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 6pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 6pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 6pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -12pt; padding-left: 12pt">Interested Directors</TD><TD STYLE="font-size: 4pt">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 4pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 4pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 4pt">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 4pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 4pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 4pt">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 4pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Alessandro Benedetti&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Kenneth I. Denos&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">John A. Hardy&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7.5pt">* &nbsp;</FONT><FONT STYLE="font-size: 10pt">Mr.
Atkinson&rsquo;s compensation for 2012 includes a payment of $60,000 as Audit Committee Chairman for additional duties undertaken
in connection with the Fund&rsquo;s review and analysis of its portfolio holdings for the year.</FONT></P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Who are the executive officers of the Fund? </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">The name, address and age of each executive
officer, their position, term of office and length of time served with the Fund, along with certain business information, are set
forth in the table below.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 20%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 10%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 16%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 54%; font-size: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><B>Name,&nbsp;Address&nbsp; and Age</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Position(s)</B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Held&nbsp;with</B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Fund</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Term&nbsp;of&nbsp;Office&nbsp;and<BR>
        Length of Time<BR>
        Served</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Principal Occupation(s)</B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>During Past 5 Years</B></P>
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<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Alessandro Benedetti</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 3.1pt 0 0">Eight Greenway&nbsp;Plaza</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Suite 930</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston,&nbsp;Texas&nbsp;77046</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Age: 51</P></TD>
    <TD STYLE="padding-left: 5.9pt"><FONT STYLE="font-size: 10pt">Executive Chairman</FONT></TD>
    <TD STYLE="padding-left: 3.9pt"><FONT STYLE="font-size: 10pt">Indefinite term; Executive Chairman since 2011.</FONT></TD>
    <TD STYLE="padding-left: 1.05pt"><FONT STYLE="font-size: 10pt">Executive Chairman of the Fund since June 2011; Director of the Fund since May 2010.&nbsp;&nbsp;Mr. Benedetti is currently the CEO of SAE Capital Ltd., which he founded in January 2007. He has also been a Director of Attali Investment Partners Ltd. since October 2010 and a Director of SPQR Capital Holdings S.A. since August 2010; Non-executive director of Cadogan Petroleum plc from August 2010 to June 2012; Non-executive director of Versatile Systems Inc. since December 2008. Over the last 20 years Mr. Benedetti has been involved in the structuring and financing of complex transactions, acting on behalf of companies and governments in North America, Europe, Central Asia and the Middle East. In 2005, he structured and led the acquisition of Wind Telecomunicazioni SpA, based in Italy, which had 16 million wireless subscribers, 1.6&nbsp;million fixed line customers and 28 million registered internet users. At that time the transaction was the largest leveraged buyout in European history, in a deal valued at over 12 billion Euros.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">John A. Hardy</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 3.1pt 0 0">Eight Greenway&nbsp;Plaza</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Suite 930</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston,&nbsp;Texas&nbsp;77046</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Age: 61</P></TD>
    <TD STYLE="padding-left: 5.9pt"><FONT STYLE="font-size: 10pt">Chief Executive&nbsp;&nbsp;Officer</FONT></TD>
    <TD STYLE="padding-left: 3.9pt"><FONT STYLE="font-size: 10pt">Indefinite term; Chief Executive Officer since 2011.</FONT></TD>
    <TD STYLE="padding-left: 1.05pt"><FONT STYLE="font-size: 10pt">CEO of the Fund since June 2011; Executive Chairman of the Fund from June 2010 to June 2011; Director of the Fund since May 2010; Chairman of Versatile Systems Inc. (&ldquo;Versatile&rdquo;) (technology consulting) from January 1997 to October 2012 and Chief Executive Officer of Versatile since January 1997. Mr. Hardy has had extensive experience in the insurance, finance and banking sectors, as well as mergers and acquisitions and litigation and resolution of multi-jurisdictional disputes practicing as a Barrister from 1978-1997. Mr. Hardy was also an adjunct Professor lecturing in insurance law at the University of British Columbia from 1984-2000.</FONT></TD></TR>
<TR>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">L&rsquo;Sheryl&nbsp;D.&nbsp;Hudson</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Eight Greenway Plaza</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Suite 930</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston,&nbsp;Texas 77046</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Age: 47</P></TD>
    <TD STYLE="padding-left: 8.2pt"><FONT STYLE="font-size: 10pt">Vice President, CFO, and Treasurer</FONT></TD>
    <TD STYLE="padding-left: 7.35pt"><FONT STYLE="font-size: 10pt">Indefinite terms; Vice&nbsp;President and CFO since 2006.</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Senior Vice President, Chief Financial Officer, and Treasurer since November 2006; Chief Compliance Officer of the Fund from November 2006 to July 2011. &nbsp;Ms.&nbsp;Hudson served as Associate Director of WestLB Asset Management (US), LLC from 2002 to 2006.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 8.2pt">&nbsp;</TD>
    <TD STYLE="padding-left: 7.35pt">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Kenneth I. Denos</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Eight Greenway Plaza</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Suite 930</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston,&nbsp;Texas 77046</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Age: 45</P></TD>
    <TD STYLE="padding-left: 8.2pt"><FONT STYLE="font-size: 10pt">Director, Secretary, and CCO</FONT></TD>
    <TD STYLE="padding-left: 7.35pt"><FONT STYLE="font-size: 10pt">Indefinite terms; Secretary since 2010; CCO since 2011; Director since 2007.</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Secretary of the Fund since 2010 and a Director of the Fund since 2007.&nbsp;&nbsp;Chief Compliance Officer of the Fund since July 2011.&nbsp;&nbsp;Deputy Executive Chairman of London Pacific &amp; Partners, Inc. since August 2009. President of the Fund from December 2007 to June 2009; CEO of the Fund from August 2007 to June 2009; Executive Vice President and Secretary of the Fund from June 2005 until August 2007; CEO of MCC Global NV and its subsidiaries from May 2006 to October 2009; non-executive director of Start Scientific, Inc. since March 2012; non-executive director of Vican Resources, Inc. since December 2011; President of Kenneth I. Denos, P.C. since January 2000; CEO and Chairman of Acadia Group, Inc. since March 2009.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">There are no arrangements or understandings
between any of the executive officers and any other person pursuant to which any of such officers was or is to be selected as an
officer.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">During 2010, the Fund entered into
a compensation agreement with John A. Hardy, its Chief Executive Officer. The agreement, which remained in effect for 2012, provides
for base compensation to Mr. Hardy of $200,000 per annum and an annual bonus based upon achievement of certain criteria, one of
which is the disposition of portfolio company investments for cash. The bonus is subject to an annual cap of $150,000, and any
bonus earned that exceeds the cap will be carried over into subsequent fiscal years. During 2012, Mr. Hardy was responsible for
dispositions of portfolio company investments yielding approximately $16.8 million of cash, for which a bonus of $150,000 was received.
Mr. Hardy voluntarily waived his right to $873,211 of earned, but unpaid, bonus. No bonus referable to the amount so waived will
be carried over into subsequent fiscal years. If the consulting agreement is terminated without cause, as defined therein, Mr.
Hardy will be entitled to receive one year&rsquo;s base consulting fee, together with all bonuses earned (but not previously waived)
up to the date of termination. Mr. Hardy is not entitled to participate in any employee-related benefits, including health, life
and disability plans, of the Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>Grants of Plan-Based Awards </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">During 2012, we did not grant any plan-based
awards to our executive officers.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">As of December&nbsp;31, 2012, there
were no unexercised options, stock that had not vested or equity incentive plan awards for any executive officer of the Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>Options Exercised and Stock Vested </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">During 2012, there were no stock options,
SARs or similar instruments exercised by any executive officer of the Fund and there was no vesting of stock, including restricted
stock, restricted stock units or similar instruments by any executive officer of the Fund.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">The Fund does not have any plan that
provides for payments or other benefits at, following, or in connection with the retirement of its executive officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>Nonqualified Defined Contribution and Other Nonqualified
Deferred Compensation Plans </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">During 2012, other than a 401(k) plan
for certain employees wherein the Fund provides a match of 3% of employee compensation, the Fund did not have any defined contribution
or other plan that provided for the deferral of compensation by any executive officer of the Fund on a basis that was not tax-qualified.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 0.5in">Except for our Executive Chairman, Chief
Executive Officer, and Secretary, we provide the opportunity for certain of our named executive officers and other full-time employees
to receive certain perquisites and general health and welfare benefits, which consist of life and health insurance benefits, and
reimbursement for certain medical expenses.</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROPOSAL&nbsp;1&mdash;ELECTION OF DIRECTORS
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The by-laws of the Fund provide for a
minimum of three and a maximum of fifteen directors (a majority of whom must be independent directors). There are nine director
nominees (which include six independent director nominees). The Board is not recommending any other director nominees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The current term of office of all of
the Fund&rsquo;s directors expires at the 2013 annual meeting and upon the election and qualification of their successors in office.
The Board proposes that the following nominees be elected for a new term of one year and until their respective successors have
been duly elected and qualified or until they resign, die, or are removed from office. Each of the nominees has consented to serve
if elected. The Board knows of no reason why any nominee for director would be unable to serve as a director. If at the time of
the Meeting any nominee is unable or unwilling to serve as a director of the Fund, the persons named as proxies will vote for a
substitute nominee designated by the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Based on a review of the experience,
qualifications, attributes and skills of each nominee, including those enumerated in the table below, the Board has determined
that each nominee is qualified to serve as a director of the Fund. We invite you to read the summary backgrounds of each of the
nominees included in this Proposal section. These qualifications, as well as other qualifications preceding the five-year reporting
period in the table below, support the conclusion that each individual should serve as director in light of the Fund&rsquo;s business
and structure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0; text-align: center"><B>Nominees for Director </B></P>

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

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


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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 20%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 8%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 13%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 40%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 19%; font-size: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><B>Name, Address and Age</B></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>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Position(s)</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>Held&nbsp; with</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>Fund</B></FONT></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>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Term&nbsp;of&nbsp;Office</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>and&nbsp; Length&nbsp;of</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>Time&nbsp;Served</B></FONT></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>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Principal&nbsp;Occupation(s)</B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>During Past 5 Years</B></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>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Other</B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Directorships+</B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Held&nbsp;by&nbsp;Director</B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>or Nominee</B></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">Fraser Atkinson</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">355&nbsp;Burrard&nbsp;St.,&nbsp;Ste.&nbsp;910</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Vancouver, B.C.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">V6C 2G8</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Age: 55</P></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in; font-size: 10pt"><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Term&nbsp;expires</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">2013;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Director<BR>
        since 2010.</P></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">CFO of Versatile Systems Inc. (&ldquo;Versatile&rdquo;) (technology consulting) since February 2003, Corporate Secretary of Versatile since October 2003 and Director since November 2003. Mr.&nbsp;Atkinson was involved in both the technology and corporate finance sectors as a partner at KPMG, LLP for over 14&nbsp;years, having left the firm in September 2002.</FONT></TD>
    <TD STYLE="padding-left: 10.7pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">None</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0.1in; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0.1in; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Richard&nbsp;F.&nbsp;Bergner</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Eight Greenway Plaza</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Suite 930</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston, Texas 77046</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Age: 82</P></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in; font-size: 10pt"><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Term&nbsp;expires</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">2013;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Director<BR>
        since 2005.</P></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">Practicing attorney in Houston, TX for 51 years. Mr. Bergner&rsquo;s practice includes corporate, investment and real estate issues; he has litigated cases in federal and state court.</FONT></TD>
    <TD STYLE="padding-left: 10.7pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">None</FONT></TD></TR>
<TR>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Gregory J. Flanagan</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Eight Greenway Plaza</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Suite 930</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston, Texas 77046</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Age: 67</P></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in; font-size: 10pt"><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in; font-size: 10pt"><FONT STYLE="font-size: 10pt">Term&nbsp;expires</FONT><BR>
<FONT STYLE="font-size: 10pt">2013;</FONT><BR>
<FONT STYLE="font-size: 10pt">Director</FONT><BR>
<FONT STYLE="font-size: 10pt">since 1992.</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">Chairman of the Board, CEO and President of the Fund from July 2009 to February 2010. COO of Gallagher Healthcare, Inc. &ndash; Houston Branch (insurance brokerage) from 2003 to 2008. Mr. Flanagan also has more than 20 years of commercial banking experience.</FONT></TD>
    <TD STYLE="padding-left: 10.7pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">None</FONT></TD></TR>
<TR>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Henry&nbsp;W.&nbsp;Hankinson</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">4355 Cobb Parkway</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Suite 501 J</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Atlanta,&nbsp;Georgia&nbsp;30339</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Age: 71</P></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in; font-size: 10pt"><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Term&nbsp;expires<BR>
        2013;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Director<BR>
        since 2005.</P></TD>
    <TD STYLE="padding-bottom: 0.75pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Managing Partner and co-founder of Global Business Associates, LLC, a boutique M&amp;A consulting firm in Atlanta, GA. Mr. Hankinson is a former military officer with engineering and MBA degrees. He has held domestic and international senior executive management positions for over 30 years. In 1993 he moved to Moscow as the senior regional executive for Halliburton&nbsp;/&nbsp;Brown &amp; Root (&ldquo;HBR&rdquo;) to establish the oil &amp; gas construction market in the Former Soviet Union. In 1997 he moved to Riyadh, as the senior HBR regional Managing Director of Saudi Arabia. In 1999 he was </FONT></TD>
    <TD STYLE="padding-left: 10.7pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">None</FONT></TD></TR>
</TABLE>


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

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

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

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

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

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

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

<P STYLE="margin: 0"></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: 20%; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 8%; padding-left: 0.1in; font-size: 10pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; padding-left: 0.1in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 40%; padding-bottom: 0.75pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">recruited to become the COO and senior American for a large multi-national conglomerate for the Saudi Royal Family. Based in Riyadh, he was responsible for investment acquisitions and portfolio management. During his career, Mr. Hankinson has served as Chairman, CEO, COO, and Director for both small and multi-national private and public companies.</FONT></TD>
    <TD STYLE="width: 19%; padding-left: 10.7pt; font-size: 10pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Robert&nbsp;L.&nbsp;Knauss</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">P.O. Box 40</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">5580 FM 1697</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Burton, Texas 77835</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Age: 82</P></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in; font-size: 10pt"><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Term&nbsp;expires<BR>
        2013;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Director<BR>
        since 1991.</P></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">Chairman of the Board of Philip Services Corp. (industrial services) from 1998 to 2003, and Chairman of the Board and CEO of Baltic International USA, Inc. from 1995 to 2003. During the past twenty years, Mr. Knauss has served on the&nbsp;Boards&nbsp;of Directors of eight public companies. Mr. Knauss was the former Dean and Distinguished University Professor&nbsp;of University of Houston Law&nbsp;School and was also Dean of&nbsp;Vanderbilt Law School.</FONT></TD>
    <TD STYLE="padding-left: 10.7pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">The Mexico Fund, Inc. (investment company).</FONT></TD></TR>
<TR>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Bertrand&nbsp;des&nbsp;Pallieres</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">355&nbsp;Burrard&nbsp;St.,&nbsp;Ste.&nbsp;910</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Vancouver, B.C.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">V6C 2G8</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Age: 46</P></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in; font-size: 10pt"><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Term expires<BR>
        2013;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Director<BR>
        since 2010.</P></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">Director of SPQR Capital Holdings S.A. since August 2010; Non-executive director of Cadogan Petroleum plc since August 2010 and Chief Executive Officer since August 2011;&nbsp;&nbsp;Non-executive director of Versatile Systems Inc. since December 2008 and Chairman since October 2012;&nbsp;&nbsp;Director of SPQR Capital (Cayman) Ltd since September 2007; Director of SPQR Capital Services Ltd since August 2007; CEO of SPQR Capital LLP, based in London, UK since May 2007; Global Head of Principal Finance and member of the Global Market Leadership Group of Deutsche Bank from 2005 to 2007; from 1992 to 2005, he held various positions at JP Morgan including Global Head of Structured Credit, European Head of Derivatives Structuring and Marketing and Co-head of sales for Europe Middle East and Africa.</FONT></TD>
    <TD STYLE="padding-left: 12.4pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">None</FONT></TD></TR>
</TABLE>


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

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

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<TD STYLE="width: 0"></TD><TD STYLE="width: 12.2pt">+</TD><TD>Other directorships are limited to: (i)&nbsp;publicly traded companies in the United States; (ii)&nbsp;companies that are otherwise
subject to SEC reporting requirements and (iii)&nbsp;investment companies registered under the 1940 Act.</TD></TR></TABLE>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Interested Directors</B></FONT><FONT STYLE="font-size: 7.5pt"><SUP>
(1) </SUP></FONT></P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 20%; font: 1pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 10%; font: 1pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 14%; font: 1pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 37%; font: 1pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 19%; font: 1pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><B>Name,&nbsp;Address&nbsp;and&nbsp;Age</B></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>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Position(s)</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>Held&nbsp; with</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>Fund</B></FONT></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>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Term of Office</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>and Length&nbsp;of</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>Time Served</B></FONT></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>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Principal&nbsp;Occupation(s)</B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>During Past 5 Years</B></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>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Other</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>Directorships++</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>Held&nbsp;by&nbsp; Director</B></FONT><BR>
        <FONT STYLE="font-size: 7.5pt"><B>or Nominee</B></FONT></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">Alessandro Benedetti</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Eight Greenway Plaza</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Suite 930</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston, TX 77046</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Age&nbsp;: 51</P></TD>
    <TD NOWRAP STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.1in"><FONT STYLE="font-size: 10pt">Executive Chairman</FONT></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Term&nbsp;expires</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">2013;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Director<BR>
        since 2010.</P></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 0.75pt; padding-left: 9.45pt"><FONT STYLE="font-size: 10pt">Executive Chairman of the Fund since June 2011; Director of the Fund since May 2010.&nbsp;&nbsp;Mr. Benedetti is currently the CEO of SAE Capital Ltd., which he founded in January 2007. He has also been a Director of Attali Investment Partners Ltd. since October 2010 and a Director of SPQR Capital Holdings S.A. since August 2010; Non-executive director of Cadogan Petroleum plc from August 2010 to June 2012; Non-executive director of Versatile Systems Inc. since December 2008. Over the last 20 years Mr. Benedetti has been involved in the structuring and financing of complex transactions, acting on behalf of companies and governments in North America, Europe, Central Asia and the Middle East. In 2005, he structured and led the acquisition of Wind Telecomunicazioni SpA, based in Italy, which had 16 million wireless subscribers, 1.6&nbsp;million fixed line customers and 28 million registered internet users. At that time the transaction was the largest leveraged buyout in European history, in a deal valued at over 12 billion Euros.</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 28.1pt"><FONT STYLE="font-size: 10pt">None</FONT></TD></TR>
</TABLE>


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

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

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="font-size: 6pt; width: 20%">&nbsp;</TD>
    <TD STYLE="font-size: 6pt; width: 10%">&nbsp;</TD>
    <TD STYLE="font-size: 6pt; width: 14%">&nbsp;</TD>
    <TD STYLE="font-size: 6pt; width: 37%">&nbsp;</TD>
    <TD STYLE="font-size: 6pt; width: 19%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">John A. Hardy</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Suite 930</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston, Texas 77046</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Age: 61</P>
</TD>


    <TD STYLE="padding-left: 0.1in; font-size: 10pt"><FONT STYLE="font-size: 10pt">Chief Executive Officer and Director</FONT></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Term&nbsp;expires<BR>
        2013;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Director<BR>
        since 2010.</P></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">Chief Executive Officer of the Fund since June 2011; Executive Chairman of the Fund from June 2010 to June
2011; Director of the Fund since May 2010; Chairman of Versatile Systems Inc. (&ldquo;Versatile&rdquo;) (technology consulting)
from January 1997 to October 2012 and Chief Executive Officer of Versatile Systems Inc. since January 1997. Mr. Hardy has had extensive
experience in the insurance, finance and banking sectors, as well as mergers and acquisitions and litigation and resolution of
multi-jurisdictional disputes practicing as a Barrister from 1978-1997. Mr. Hardy was also an adjunct Professor lecturing in insurance
law at the University of British Columbia from 1984-2000.</FONT></TD>
    <TD STYLE="padding-left: 10.7pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">None.</FONT></TD></TR>
<TR>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Kenneth&nbsp;I.&nbsp;Denos</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Suite 930</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston, Texas 77046</P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt">Age: 45</FONT></P>

</TD>

    <TD STYLE="padding-left: 0.1in; font-size: 10pt"><FONT STYLE="font-size: 10pt"></FONT>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Secretary, Chief Compliance Officer, and</P>

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



<FONT STYLE="font-size: 10pt"></FONT>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Term expires<BR>
        2013;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Director<BR>
        since 2008.</P></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">Secretary of the Fund since 2010 and a Director of the Fund since 2007. Chief Compliance Officer of the Fund
since July 2011. Deputy Executive Chairman of London Pacific &amp; Partners, Inc. since August 2009. President of the Fund from
December 2007 to June 2009; CEO of the Fund from August 2007 to June 2009; Executive Vice President and Secretary of the Fund from
June 2005 until August 2007; CEO of MCC Global NV and its subsidiaries from May 2006 to October 2009; non-executive director of
Start Scientific, Inc. from March 2007 to February 2012; President of Kenneth I. Denos, P.C. since January 2000; CEO and Chairman
of Acadia Group, Inc. since March 2009.</FONT></TD>
    <TD STYLE="padding-left: 12.4pt; font-size: 10pt"><FONT STYLE="font-size: 10pt"></FONT>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Director of Vican Resources, Inc.</P>

<P STYLE="margin: 0">since 2011. Director of Start Scientific, Inc. since 2012</P>



<FONT STYLE="font-size: 10pt"></FONT></TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"></P>

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

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

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



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

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

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


<P STYLE="margin: 0">(1)&#9;Interested directors are &ldquo;interested persons&rdquo; (as defined in the 1940 Act).</P>

<P STYLE="margin: 0">++&#9;Other directorships are limited to: (i)&nbsp;publicly traded companies in the United States; (ii)&nbsp;companies
that are otherwise subject to SEC reporting requirements and (iii)&nbsp;investment companies registered under the 1940 Act.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">There are no arrangements or understandings
between any of the directors and any other person pursuant to which any of such directors was or is to be selected as a director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">A plurality of votes cast at the Meeting
at which a quorum is present is required to elect a director. Abstentions will not be counted as votes cast and will have no effect
on this proposal. Brokers may not vote uninstructed shares held in street name for this proposal.</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>The
Board of Directors recommends that each stockholder vote</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&ldquo;For&rdquo;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>each
of the Board nominated persons</B></FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0; text-align: center"><B>Dollar Range of Equity Securities
Beneficially Owned by Current Directors/Director Nominees </B></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: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 55%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 19%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 26%; font-size: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><B>Name</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Dollar&nbsp;Range&nbsp;of&nbsp;Equity<BR>
        Securities&nbsp;in&nbsp;the&nbsp; Fund<SUP>(1)</SUP></B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Aggregate&nbsp;Dollar&nbsp;Range&nbsp;of&nbsp;Equity<BR>
        Securities&nbsp;in&nbsp;All&nbsp;Funds&nbsp;Overseen<BR>
        or to be Overseen by Director<BR>
        or&nbsp;Nominee in Family of<BR>
        Investment Companies</B></P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top;  padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt"><B>Independent Directors</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 4pt; line-height: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 4pt; line-height: 2pt">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top;  padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Fraser Atkinson&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">$0-$10,000</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">$0-$10,000</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top;  padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Richard F. Bergner&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">None</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">None</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top;  padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Gregory J. Flanagan&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">$0-$10,000</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">$0-$10,000</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top;  padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Henry W. Hankinson&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">None</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">None</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top;  padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Robert L. Knauss&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">$50,001-$100,000</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">$50,001-$100,000</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top;  padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Bertrand des Pallieres&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Over $100,000</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Over $100,000</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top;  padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt"><B>Interested Directors</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 4pt; line-height: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 4pt; line-height: 2pt">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top;  padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Alessandro Benedetti&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Over $100,000</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Over $100,000</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top;  padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Kenneth I. Denos&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">$10,001-$50,000</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">$10,001-$50,000</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top;  padding-left: 12pt; text-indent: -12pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">John A. Hardy&#9;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">None</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">None</FONT></TD></TR>
</TABLE>
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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(1)</TD><TD>Based on beneficial ownership as of April 25, 2013.</TD></TR></TABLE>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROPOSAL&nbsp; 2&mdash;RATIFICATION OF </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SELECTION OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Fund&rsquo;s Audit Committee approved
and the Board members unanimously approved and ratified the selection of UHY as the Fund&rsquo;s independent registered public
accounting firm for the fiscal year ending December&nbsp;31, 2013. UHY has served as the Fund&rsquo;s independent accounting firm
since September&nbsp;19, 2005.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>Audit Fees and All Other Fees </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">Aggregate fees that UHY billed to the
Fund for professional services for the years ended December&nbsp;31, 2012 and 2011 were as follows:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 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 STYLE="font-size: 1pt">&nbsp;</TD><TD STYLE="font-size: 1pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 1pt">&nbsp;</TD><TD STYLE="font-size: 1pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><B>Services Provided</B></P> <!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>2012</B></P> <!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>2011</B></P> <!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; font-size: 10pt; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font-size: 10pt">Audit fees<SUP>(1)</SUP>&#9;</FONT></TD><TD STYLE="width: 8%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 12%; font-size: 10pt; text-align: right">217,496</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 12%; font-size: 10pt; text-align: right">397,000</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -12pt; padding-left: 12pt">Audit-related fees&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -12pt; padding-left: 12pt">Tax&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt">All other&#9;</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">&mdash;&nbsp;&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">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -12pt; padding-left: 12pt">Total&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">217,496</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">397,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 13.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(1)</TD><TD>Consists of fees for the audit of our annual financial statements, review of quarterly statements, security counts, and fees
for the review and issuance of consents related to our registration statement and amendments thereto.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><B>Audit Committee Pre-Approval Policies and Procedures
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">The Audit Committee pre-approves all
audit and permitted non-audit services (including the fees and terms thereof) to be performed by any independent registered public
accounting firm engaged by the Fund. Audit services include those typically associated with the annual audit such as evaluation
of internal controls. Non-audit services include certain services that are audit-related such as consultations regarding financial
accounting and reporting standards, and tax services. Certain services may not be provided by the independent registered public
accounting firm to the Fund without jeopardizing the independent registered public accounting firm&rsquo;s independence. These
services are deemed prohibited services and include certain management functions; human resources services; broker-dealer, investment
adviser or investment banking services; legal services; and expert services unrelated to the audit. Other services are conditionally
prohibited and may be provided if the Audit Committee reasonably concludes that the results of the services will not be subject
to audit procedures during an audit of the Fund&rsquo;s financial statements. These types of services include bookkeeping; financial
information systems design and implementation; appraisal or valuation services; actuarial services; and internal audit outsourcing
services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Audit Committee&rsquo;s procedures
require approval of the engagement of the independent registered public accounting firm for each fiscal year and approval of the
engagement by a majority of the Fund&rsquo;s independent directors. The procedures permit the Audit Committee to pre-approve the
provisions of types or categories of non-audit services for the Fund on an annual basis at the time of the firm&rsquo;s engagement
and on a project-by-project basis. At the time of the annual engagement of the Fund&rsquo;s accounting firm, the Audit Committee
is to receive a list of the categories of expected services with a description and an estimated budget of fees. In its pre-approving
all audit services and permitted non-audit services, the Audit Committee or a delegated member determines that the provision of
the service is consistent with, and will not impair, the ongoing independence of the independent registered public accounting firm
and sets any limits on fees or other conditions it finds appropriate. Non-audit services may also be approved on a project-by-project
basis by the Audit Committee consistent with the same standards for determination and information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Audit Committee may also designate
a member of the Committee to pre-approve non-audit services that have not been pre-approved or changes in non-audit services previously
pre-approved. Any actions by the designated member must be ratified by the Audit Committee by the time of its next regularly scheduled
meeting. The Fund&rsquo;s pre-approval procedures are reviewed annually by the Audit Committee and the Fund maintains a record
of the decisions made by the Committee pursuant to the procedures.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0"><I>Report of the Audit Committee </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-indent: 24.5pt">As part of its oversight of the Fund&rsquo;s
financial statements, the Committee reviews and discusses with both management and the Fund&rsquo;s independent registered public
accounting firm all annual and quarterly financial statements prior to their issuance. During 2012, management advised the Committee
that each set of financial statements reviewed had been prepared in accordance with accounting principles generally accepted in
the United States, and reviewed significant accounting and disclosure issues with the Committee. These reviews included discussions
with UHY, the Fund&rsquo;s independent registered public accounting firm, of matters required to be disclosed pursuant to Statement
of Auditing Standards No.&nbsp;61 (<I>Communication with Audit and Finance Committees</I>), including the quality of the Fund&rsquo;s
accounting principles, the reasonableness of significant judgments, and the clarity of disclosures in the financial statements.
The Committee also discussed with UHY matters relating to its independence, including a review of audit and non-audit fees. UHY
has represented to us that it is independent with respect to the Fund within the meaning of the published rules and regulations
of the Securities and Exchange Commission (&ldquo;SEC&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Based on the review and discussions noted
above, the Audit Committee recommended to the Board the inclusion of the Fund&rsquo;s audited financial statements for the year
ended December&nbsp;31, 2012, in the Fund&rsquo;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2012, for filing
with the SEC. The Audit Committee also recommended to the Board the selection of UHY as the Fund&rsquo;s independent registered
public accounting firm for fiscal year 2013.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The affirmative vote of a majority of all of
the votes cast at the Meeting at which a quorum is present is required to ratify the selection of UHY. Abstentions will not be
counted as votes cast and will have no effect on this proposal. Brokers may vote uninstructed shares held in street name for this
proposal, and their votes will count as present for quorum purposes.</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-align: center"><B>THE BOARD RECOMMENDS A VOTE</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UHY AS THE FUND&rsquo;S INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FOR FISCAL YEAR 2013</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B><BR CLEAR="ALL" STYLE="page-break-before: always">
</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROPOSAL 3&mdash;ADVISORY VOTE</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 24.5pt; margin-right: 0; margin-left: 0">The Compensation Discussion
and Analysis beginning on page 7 of this proxy statement describes the Fund&rsquo;s executive compensation policies and the compensation
decisions that the Compensation Committee, Board, and our Chief Executive Officer made in 2012 with respect to the compensation
of the Fund&rsquo;s named executive officers. The Board is asking shareholders to cast a non-binding, advisory vote FOR the following
resolution:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin-right: 0; margin-left: 24.5pt">RESOLVED, that the
compensation paid to the Fund&rsquo;s named executive officers, as disclosed pursuant to Item 402 of Regulation S-K, including
the Compensation Discussion and Analysis, compensation tables and narrative discussion included in this proxy statement, is hereby
APPROVED.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 24.5pt; margin-right: 0; margin-left: 0">This proposal, which
is sometimes referred to as a &ldquo;say-on-pay vote,&rdquo; is provided as required pursuant to Section 14A of the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 24.5pt; margin-right: 0; margin-left: 0">As described in the Compensation
Discussion and Analysis, the Fund&rsquo;s executive compensation policies embodies a pay-for-performance philosophy that supports
the Fund&rsquo;s business strategy and aligns the interests of its executives with those of its shareholders, with the objective
of attracting, retaining and motivating the best possible executive talent and avoiding risks that would be reasonably likely to
have a material adverse effect on the Fund. For these reasons, the Board is asking shareholders to support this proposal. Although
the vote the Board is asking you to cast is non-binding, the Compensation Committee and the Board value the views of shareholders
and will consider the outcome of the vote when determining future compensation arrangements for the Company&rsquo;s named executive
officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 24.5pt; margin-right: 0; margin-left: 0">The affirmative vote
of a majority of all of the votes cast at the Meeting at which a quorum is present is required to approve this proposal. Abstentions
will not be counted as votes cast and will have no effect on this proposal. Brokers may not vote uninstructed shares held in street
name for this proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt"><B>THE BOARD RECOMMENDS
A VOTE</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt"><B>THE ADVISORY PROPOSAL
TO APPROVE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt"><B>THE COMPENSATION PAID
TO THE COMPANY&rsquo;S NAMED EXECUTIVE OFFICERS</B></P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0; text-align: center"><B>OTHER MATTERS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Board knows of no other matter that
is likely to come before the Meeting. However, if any other matter properly comes before the Meeting, the individuals named as
proxy holders will vote in accordance with their discretion on such matters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In the event that sufficient votes in
favor of the proposals set forth in the Notice of the Meeting are not received by the time scheduled for the annual meeting, the
holders of a majority of the shares of the Fund, present in person or represented by proxy, although not constituting a quorum,
may adjourn the Meeting.</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">A copy of the Fund&rsquo;s 2012 Annual
Report to Stockholders and copies of the Fund&rsquo;s quarterly reports on Form 10-Q are available without charge upon request.
Please direct your request to Equus Total Return, Inc., Attention: Investor Relations, Eight Greenway Plaza, Suite 930, Houston,
TX 77046, or call our proxy solicitor Georgeson, Inc., toll-free at (888)&nbsp;624-2255. Copies also may be requested through the
Fund&rsquo;s website at <I>www.equuscap.com</I>. (Information contained on the Fund&rsquo;s website is not incorporated into this
proxy statement.) Copies are also posted via EDGAR on the SEC&rsquo;s website at<I> www.sec.gov</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 13.5pt 0 0; text-align: center"><B>ADDITIONAL INFORMATION </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Stockholder Proposals for the 2014
Annual Meeting</B>. Stockholders interested in submitting a proposal for inclusion in the proxy materials for the annual meeting
of stockholders in 2014 may do so by following the procedures prescribed in SEC Rule 14a-8. To be eligible for inclusion, the Fund&rsquo;s
Secretary must receive stockholder proposals no later than December&nbsp;31, 2013. Proposals should be sent to the Fund, at Eight
Greenway Plaza, Suite 930, Houston, TX 77046, Attention: President. Submission of a stockholder proposal does not guarantee inclusion
in the Fund&rsquo;s proxy statement or form of proxy because certain SEC rules must be met.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In addition, under our by-laws no business
may be brought before a stockholder meeting unless it is specified in the notice of the meeting or is otherwise properly brought
before the meeting by or at the direction of the Board or by a stockholder entitled to vote who has delivered an appropriate notice
to the Fund&rsquo;s Secretary. To be properly brought before such a meeting a stockholder must deliver a written notice to the
Fund at the address set forth in the following paragraph of the stockholder&rsquo;s intention to present a proposal (containing
certain information specified in the by-laws about the stockholder and the proposed action) not less than 60 nor more than 90 days&rsquo;
prior to the meeting. However, in the event less than 70 days&rsquo; notice or prior public disclosure of the date of the meeting
is given to stockholders, such notice to be timely must be received not later than the close of business on the fifth day following
the day on which such notice is mailed or such public disclosure was made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Stockholder proposals with respect to
Director nominations require written notice of your intent to make such a nomination either by personal delivery or by U.S. mail,
postage prepaid, to Kenneth I. Denos, Secretary, Equus Total Return, Inc., Eight Greenway Plaza, Suite 930, Houston, TX 77046,
within the time limits described above for delivering a stockholder proposal notice and comply with the information requirements
in our by-laws relating to Director nominations by stockholders. These requirements are separate from and in addition to the SEC&rsquo;s
requirements that a stockholder must meet in order to have a stockholder proposal included in the Fund&rsquo;s proxy statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The proxy solicited by the Board of Directors
for the 2014 annual meeting will confer discretionary authority to vote on any stockholder proposal presented at that meeting,
unless the Fund is provided with notice of such proposal no later than December 31, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">A copy of the full text of the by-law
provisions discussed above may be obtained by writing to the Corporate Secretary, Eight Greenway Plaza, Suite 930, Houston, TX
77046 and is included as an exhibit to the Fund&rsquo;s annual report on Form 10-K for the period ended December&nbsp;31, 2012
as filed with the SEC via EDGAR on March 27, 2013.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Communications with the Board</B>.
Interested parties who wish to communicate directly with the Board, or specified individual directors may do so by writing to the
Board or individual directors in care of the Chairman, Equus Total Return, Inc., Eight Greenway Plaza, Suite 930, Houston, TX 77046.
At the direction of the Board, all mail received will be opened and screened for security purposes. The mail will then be logged
in. All mail, other than trivial or obscene items, will be forwarded. Trivial items will be delivered to the directors at the next
scheduled Board meeting. Mail addressed to a particular director will be forwarded or delivered to that director. Mail addressed
to &ldquo;Independent Directors,&rdquo; &ldquo;Outside Directors&rdquo; or &ldquo;Non-Management Directors&rdquo; will be forwarded
or delivered to the Chairman of the Committee of Independent Directors. Mail addressed to the &ldquo;Board of Directors&rdquo;
will be forwarded or delivered to the Chairman of the Board. Concerns relating to accounting, internal controls, or auditing matters
are handled in accordance with procedures established by the Audit Committee with respect to such matters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Corporate Governance</B>. The Fund
is a Delaware corporation subject to the provisions of the Delaware General Corporation Law (&ldquo;DGCL&rdquo;). The Fund&rsquo;s
day-to-day operations and requirements as to the place and time, conduct, and voting, at a meeting of stockholders are governed
by the Fund&rsquo;s certificate of incorporation and by-laws, the provisions of the DGCL, the provisions of the 1940 Act and NYSE
rules. The Fund has adopted a code of business conduct and ethics applicable to our Directors, officers (including our principal
executive officer, principal financial officer and controller) and employees. Our code of business conduct and ethics meets NYSE
listing standard requirements and the requirements of Section&nbsp;406 of the Sarbanes-Oxley Act of 2002. A copy of our certificate
of incorporation and by-laws, corporate governance guidelines, and the charters of the Audit, Compensation, and Nominating and
Corporate Governance Committees may be obtained by writing to the Secretary, Equus Total Return Inc., Eight Greenway Plaza, Suite
930, Houston, TX 77046. Our code of business conduct and ethics, corporate governance guidelines and committee charters are also
available by accessing the Fund&rsquo;s website at www.equuscap.com. (Information contained on the Fund&rsquo;s website is not
incorporated into this proxy statement.) In the event that the Fund amends or waives any provisions of our code of business conduct
and ethics applicable to our principal executive officer, principal financial officer or controller, we intend to disclose the
same on the Fund&rsquo;s website at <I>www.equuscap.com. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><B>Proxy Solicitation Costs</B>. The
proxies being solicited hereby are being solicited Georgeson, Inc. on behalf of the Board of Directors of the Fund. The cost of
soliciting proxies in the enclosed form will be paid by the Fund and is estimated to cost $50,000. Officers and regular employees
of the Fund may, but without compensation other than their regular compensation, solicit proxies by further mailing or personal
conversations, or by telephone, telex, facsimile, or electronic means. Copies of solicitation material will be furnished to brokerage
houses, fiduciaries and custodians to forward to beneficial owners of stock held in the name of such nominees. We will, upon request,
reimburse brokerage firms and others for their responsible expenses in forwarding solicitation material to the beneficial owners
of stock.</P>


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<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR>
    <TD STYLE="vertical-align: top; width: 21%">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><B><I>EQUUS TOTAL RETURN, INC.</I></B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><B><I>EIGHT GREENWAY PLAZA</I></B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><B><I>SUITE 930</I></B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0.75pt"><B><I>HOUSTON, TX 77046</I></B></P></TD>
    <TD STYLE="vertical-align: bottom; width: 79%">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 5.15pt"><B>VOTE BY INTERNET &ndash; http://proxy.georgeson.com</B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 5.15pt">Use the Internet to transmit your voting instructions
        and for electronic delivery of information up until 11:59 P.M. Eastern Time the day before the meeting date. Have your proxy card
        in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction
        form.</P>
        <P STYLE="font: 4.5pt Times New Roman, Times, Serif; margin: 0 0 0 5.15pt; text-indent: 0.5in">&nbsp;</P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 5.15pt"><B>ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS</B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 5.15pt">If you would like to reduce the costs incurred by our
        company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically
        via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet
        and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years.</P>
        <P STYLE="font: 4.5pt Times New Roman, Times, Serif; margin: 0 0 0 5.15pt; text-indent: 0.5in">&nbsp;</P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 5.15pt"><B>VOTE BY PHONE &ndash; 1-888-624-2255</B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 5.15pt">Use any touch-tone telephone to transmit your voting
        instructions up until 11:59 P.M. Eastern Time the day before the meeting date. Have your proxy card in hand when you call and then
        follow the instructions.</P>
        <P STYLE="font: 4.5pt Times New Roman, Times, Serif; margin: 0 0 0 5.15pt; text-indent: 0.5in">&nbsp;</P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 5.15pt"><B>VOTE BY MAIL</B></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 5.15pt">Mark, sign and date your proxy card and return
        it in the postage-paid envelope we have provided.</P></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 27pt">&nbsp;</FONT><FONT STYLE="font-size: 7.5pt">TO
VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: </FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 33%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 36%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 31%; font-size: 1pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; padding-bottom: 0.75pt; text-align: right; font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">&#9;</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; padding-bottom: 0.75pt; text-align: center; font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">KEEP THIS PORTION FOR YOUR RECORDS</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-left: 0.1in; font-size: 12pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 0.1in; font-size: 4pt; line-height: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.1in; font-size: 4pt; line-height: 2pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 0.1in; font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">DETACH&nbsp;AND&nbsp;RETURN&nbsp;THIS&nbsp;PORTION&nbsp;ONLY</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="font-size: 7.5pt; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.</B></FONT></TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 7.5pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="12" STYLE="border-top: black 1.5pt solid; border-left: black 1.5pt solid"><FONT STYLE="font-size: 7.5pt">EQUUS TOTAL RETURN, INC.</FONT></TD>
    <TD STYLE="border-top: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-top: black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>For</B></FONT></TD>
    <TD STYLE="border-top: black 1.5pt solid; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-top: black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Withhold</B></FONT></TD>
    <TD STYLE="border-top: black 1.5pt solid; text-align: center">&nbsp;</TD>
    <TD STYLE="border-top: black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>For All</B></FONT></TD>
    <TD STYLE="border-top: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="18" STYLE="border-top: black 1.5pt solid"><FONT STYLE="font-size: 7.5pt">To withhold authority to vote for any individual</FONT></TD>
    <TD COLSPAN="2" STYLE="border-top: black 1.5pt solid; border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 7.5pt"><B>All</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 7.5pt"><B>All</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Except</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="18"><FONT STYLE="font-size: 7.5pt">nominee(s), mark &ldquo;For All Except&rdquo; and write the</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="11"><FONT STYLE="font-size: 7.5pt"><B>THE BOARD OF DIRECTORS RECOMMENDS YOU VOTE</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="18"><FONT STYLE="font-size: 7.5pt">number(s) of the nominee(s) on the line below</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="11"><FONT STYLE="font-size: 7.5pt"><B>&ldquo;FOR&rdquo; THE ELECTION OF DIRECTORS</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD COLSPAN="12">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD COLSPAN="12">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="11"><FONT STYLE="font-size: 7.5pt"><B>Vote On Directors</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 7.5pt Wingdings">&#168;</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font: 7.5pt Wingdings">&#168;</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 7.5pt Wingdings">&#168;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="12" STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD COLSPAN="12">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 7.5pt">1.</FONT></TD>
    <TD COLSPAN="10"><FONT STYLE="font-size: 7.5pt">Election of the nine nominees listed below to the Board of Directors:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD COLSPAN="12">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD COLSPAN="12">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="10"><FONT STYLE="font-size: 7.5pt">&nbsp;<B>Nominees:</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD COLSPAN="12">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD COLSPAN="12">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6"><FONT STYLE="font-size: 7.5pt">01) Fraser Atkinson</FONT></TD>
    <TD COLSPAN="4"><FONT STYLE="font-size: 7.5pt">06) Henry W. Hankinson</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD COLSPAN="12">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6"><FONT STYLE="font-size: 7.5pt">02) Alessandro Benedetti</FONT></TD>
    <TD COLSPAN="4"><FONT STYLE="font-size: 7.5pt">07) John A. Hardy</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD COLSPAN="12">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6"><FONT STYLE="font-size: 7.5pt">03) Richard F. Bergner</FONT></TD>
    <TD COLSPAN="4"><FONT STYLE="font-size: 7.5pt">08) Robert L. Knauss</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD COLSPAN="12">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6"><FONT STYLE="font-size: 7.5pt">04) Kenneth I. Denos</FONT></TD>
    <TD COLSPAN="4"><FONT STYLE="font-size: 7.5pt">09) Bertrand des Pallieres</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD COLSPAN="12">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="10"><FONT STYLE="font-size: 7.5pt">05) Gregory J. Flanagan</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD COLSPAN="12">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD COLSPAN="12">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="11"><FONT STYLE="font-size: 7.5pt"><B>Proposals</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD COLSPAN="12">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="5" STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 7.5pt"><B>For</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Against</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Abstain</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 7.5pt">2.</FONT></TD>
    <TD COLSPAN="26" STYLE="vertical-align: top">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">To ratify the selection of UHY as the Fund&rsquo;s independent
        registered public accounting firm for the fiscal year ending</P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">December 31, 2013.</P></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font: 7.5pt Wingdings">&#168;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font: 7.5pt Wingdings">&#168;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font: 7.5pt Wingdings">&#168;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid; font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-size: 3pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-size: 3pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 3pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 3pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid; font-size: 3pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 7.5pt">3.</FONT></TD>
    <TD COLSPAN="26" STYLE="vertical-align: top"><FONT STYLE="font-size: 7.5pt">To approve, in a non-binding vote, the compensation paid to the Fund&rsquo;s executive officers, as disclosed pursuant to Item 402 of Regulation S-K, including the Compensation Discussion and Analysis, compensation tables, and narrative discussion.</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font: 7.5pt Wingdings">&#168;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font: 7.5pt Wingdings">&#168;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font: 7.5pt Wingdings">&#168;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid; font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid; font-size: 3pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid; font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
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    <TD STYLE="font-size: 3pt">&nbsp;</TD>
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    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid; font-size: 3pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid; font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: black 1.5pt solid; font-size: 3pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="38"><FONT STYLE="font-size: 7.5pt"><B>THE BOARD OF DIRECTORS KNOWS OF NO OTHER MATTER TO COME BEFORE THE MEETING. IF ANY OTHER MATTER IS PROPERLY BROUGHT BEFORE THE MEETING WITH RESPECT TO WHICH THE FUND WAS NOT PROVIDED NOTICE ON OR BEFORE MAY 10, 2013, THE PROXIES WILL HAVE DISCRETION TO VOTE THE PROXY ON SUCH MATTER IN ACCORDANCE WITH THEIR BEST JUDGMENT.</B></FONT></TD>
    <TD STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid; font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="34" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="border-right: black 1.5pt solid; font-size: 3pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="38"><FONT STYLE="font-size: 7.5pt"><B>THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN. IF NO DIRECTION IS MADE, THE PROXY WILL BE VOTED FOR ELECTION OF DIRECTORS.</B></FONT></TD>
    <TD STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid; font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="font-size: 3pt">&nbsp;</TD>
    <TD COLSPAN="34" STYLE="font-size: 3pt">&nbsp;</TD>
    <TD STYLE="border-right: black 1.5pt solid; font-size: 3pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="38"><FONT STYLE="font-size: 7.5pt">(<B>NOTE: </B>Please sign exactly as your name(s) appear(s) hereon. All holders must sign. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. If a corporation, please sign in full corporate name by authorized officer. If a partnership, please sign in partnership name by authorized person.)</FONT></TD>
    <TD STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="40" STYLE="border-right: black 1.5pt solid; border-left: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-right: black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="7" ROWSPAN="2" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD ROWSPAN="2" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-right: black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="15" ROWSPAN="2" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="5" ROWSPAN="2" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="4" ROWSPAN="2" STYLE="border-right: black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1.5pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-right: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-right: black 1pt solid">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-bottom: black 1.5pt solid; border-left: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-size: 7.5pt">Signature [PLEASE SIGN WITHIN BOX]</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-size: 7.5pt">Date</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-size: 7.5pt">Signature (Joint Owners)</FONT></TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-size: 7.5pt">Date</FONT></TD>
    <TD COLSPAN="3" STYLE="border-right: black 1.5pt solid; border-bottom: black 1.5pt solid">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 1%">&nbsp;</TD>
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    <TD STYLE="width: 2%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>Important Notice Regarding the Availability
of Proxy Materials for the Annual Meeting:</B></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center">The Notice and Proxy Statement and Annual Report
are available at http://www.equuscap.com/investor_reports.htm.</P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 1pt dashed; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: right">EQUUS2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 1%; font: 1pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 98%; font: 1pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 1pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: black 1.5pt solid; border-bottom: black 1.5pt solid; border-left: black 1.5pt solid; font: 12pt Times New Roman, Times, Serif; padding-left: 6pt">&nbsp;</TD>
    <TD STYLE="border-top: black 1.5pt solid; border-bottom: black 1.5pt solid">
        <P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Eight Greenway Plaza, Suite 930, Houston,
        TX 77046</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>This Proxy is Solicited by the Board of Directors
        of Equus Total Return, Inc. (the &ldquo;Fund&rdquo;)</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>for the Annual Meeting of Stockholder on
        June 14, 2013</B></P>
        <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The undersigned hereby constitutes and appoints John A. Hardy and
        Fraser Atkinson, and each or any of them, as proxies, with full power of substitution and revocation, the true and lawful attorneys
        and proxies of the undersigned at the Annual Meeting of Stockholders of the Fund to be held on June 14, 2013, at 10:00 a.m. EDT,
        at Goodwin Procter LLP, The New York Times Building, 26th Floor, 620 Eighth Avenue, New York, NY 10018 and any adjournment or postponement
        thereof (the &ldquo;Annual Meeting&rdquo;) and to vote the shares of Common Stock, $.001 par value per share, of the Fund (&ldquo;Shares&rdquo;),
        standing in the name of the undersigned on the books of the Fund on May 10, 2013, the record date for the Annual Meeting, with all
        powers the undersigned would possess if personally present at the Annual Meeting.</P>
        <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24pt">The undersigned hereby acknowledges previous
        receipt of the Notice of Internet Availability of Proxy Materials, setting forth information on how to access the Notice of Annual
        Meeting of Stockholders and the Proxy Statement on the Internet, and hereby revokes any proxy or proxies heretofore given by the
        undersigned.</P>
        <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>If you have not voted via the Internet or
        by telephone,</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>please sign, date and return promptly in
        the enclosed envelope.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Continued and to be signed on the reverse
        side</B></P>
        <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-indent: 0.5in">&nbsp;</P></TD>
    <TD STYLE="border-top: black 1.5pt solid; border-right: black 1.5pt solid; border-bottom: black 1.5pt solid; font: 12pt Times New Roman, Times, Serif; padding-right: 6pt">&nbsp;</TD></TR>
</TABLE>


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

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

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

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