<SEC-DOCUMENT>0001391609-16-000466.txt : 20160502
<SEC-HEADER>0001391609-16-000466.hdr.sgml : 20160502
<ACCEPTANCE-DATETIME>20160429173211
ACCESSION NUMBER:		0001391609-16-000466
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20160429
FILED AS OF DATE:		20160502
DATE AS OF CHANGE:		20160429
EFFECTIVENESS DATE:		20160502

FILER:

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

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	814-00098
		FILM NUMBER:		161608647

	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>DEF 14A
<SEQUENCE>1
<FILENAME>def14a_equus41816.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
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<P STYLE="font: 16pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SCHEDULE 14A INFORMATION </B></P>

<P STYLE="font: 10pt 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: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Securities Exchange Act of 1934 </B></P>

<P STYLE="font: 10pt 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: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Filed by the Registrant <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</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: Times New Roman, Times, Serif">&#9744;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">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: Times New Roman, Times, Serif">&#9744;</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: Times New Roman, Times, Serif"><B>&#9744;</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: Times New Roman, Times, Serif"><B></B>&#9746;</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: Times New Roman, Times, Serif">&#9744;</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: Times New Roman, Times, Serif">&#9744;</FONT></TD><TD>Soliciting materials pursuant to Rule 14a-11(c) or Rule 14a-12</TD></TR></TABLE>

<P STYLE="font: 10pt 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: Times New Roman, Times, Serif">&#9746;</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: Times New Roman, Times, Serif">&#9744;</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 STYLE="text-decoration: none">&#9;&#9;________________________________________________________________________________________________________&#9;&#9;</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 STYLE="text-decoration: none">&#9;&#9;_________________________________________________________________________________________________________</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 STYLE="text-decoration: none">&#9;_________________________________________________________________________________________________________&#9;</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 STYLE="text-decoration: none">&#9;_________________________________________________________________________________________________________&#9;</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 STYLE="text-decoration: none">&#9;________________________________________________________________________________________________________&#9;&#9;</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: Times New Roman, Times, Serif">&#9744;</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: Times New Roman, Times, Serif">&#9744;</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">_<FONT STYLE="font-style: normal"><B STYLE="font-style: normal; font-weight: normal">_________________________________________________________________________________________________________</B></FONT></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 STYLE="text-decoration: none">&#9;_________________________________________________________________________________________________________&#9;</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 STYLE="text-decoration: none">&#9;_________________________________________________________________________________________________________&#9;</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 STYLE="text-decoration: none">&#9;_________________________________________________________________________________________________________&#9;</U></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><IMG SRC="image_001.jpg" ALT="" STYLE="height: 43px; width: 118px"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0"><B>Notice of the 2016 </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="vertical-align: top; font: 12pt Times New Roman, Times, Serif; width: 13%"><font style="font-size: 10pt"><b>Meeting&nbsp;Date:</b></font></td>
    <TD STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif; width: 87%"><font style="font-size: 10pt">June 13,&nbsp;2016</font></td></tr>
<tr>
    <TD STYLE="vertical-align: top; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>Meeting&nbsp;Time:</b></font></td>
    <TD STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">11:00 a.m.,&nbsp;EDT</font></td></tr>
<tr>
    <TD STYLE="vertical-align: top; font: 12pt 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">Jenner &amp; Block LLP</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">919 Third Avenue</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">New York, NY 10022-3908</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 8 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 BDO USA, LLP as the Fund&rsquo;s independent auditor for the fiscal year ending December&nbsp;31,
2016 and authorizing the directors to fix the remuneration thereof;</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 2015;</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 the Fund&rsquo;s 2016 Equity Incentive Plan; 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: 0"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">All holders of record of shares of the Fund&rsquo;s common stock
(NYSE: EQS) at the close of business on May 4, 2016 (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: 0">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We are distributing this proxy statement and proxy form to stockholders
on or about May 9, 2016.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">April 29, 2016</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: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 13, 2016 </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">This proxy statement, proxy card and the Fund&rsquo;s Annual Report
to Stockholders for the fiscal year ended December&nbsp;31, 2015 are available free of charge at the following website: http://www.equuscap.com/investor_reports.htm
or by calling Georgeson, LLC, our proxy solicitor, at (800) 561-3947.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>700 LOUISIANA STREET </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>48<SUP>TH</SUP> FLOOR </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>HOUSTON, TX 77002 </B></P>

<P STYLE="font: 10pt 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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    <!-- Field: /Page -->

<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: 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>700 Louisiana Street </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>48<SUP>th</SUP> Floor </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Houston, Texas 77002 </B></P>

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin: 1pt 3in"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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">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 13, 2016, beginning at 11:00 a.m.,
Eastern Daylight Time, at Jenner &amp; Block LLP, 919 Third Avenue, New&nbsp;York, NY 10022-3908. 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 9, 2016.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">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), approve, on a non-binding advisory basis, compensation paid to the Fund&rsquo;s named executive officers
in 2015 (see Proposal 3), and approve the Fund&rsquo;s 2016 Equity Incentive Plan (see Proposal 4).</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">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 700 Louisiana Street, 48<SUP>th</SUP> Floor, Houston, Texas 77002 for ten
days before the Meeting.</P>

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 2015 and approval of the Fund&rsquo;s 2016 Equity
Incentive Plan 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"><BR CLEAR="ALL">
</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"><B><I>What constitutes a quorum? </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">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 6,336,823 shares, will constitute a quorum. As of the Record Date, 12,673,646 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: 0; text-indent: 24.5pt">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">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 BDO USA, LLP (&ldquo;BDO&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 2015 (see Proposal 3), and &ldquo;<B>For</B>&rdquo; the approval of the Fund&rsquo;s 2016 Equity Incentive Plan (see
Proposal 4). 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: 0; text-indent: 24.5pt">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Non-Binding Advisory Vote Approving Executive
Compensation in 2015</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 2015.
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-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Approval of Equity Incentive Plan</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 the
Fund&rsquo;s 2016 Equity Incentive Plan. The approval of the Plan requires the affirmative vote of a majority of the votes cast
on the proposal at the Meeting. Abstentions and &ldquo;broker non-votes&rdquo; will not be counted as having been voted on the
proposal, and therefore will have the same effect as negative votes.</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"><B><I>How are votes counted? </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">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. 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. 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 non-binding approval of compensation paid to the Fund&rsquo;s executive officers in 2015, or in
respect of the Fund&rsquo;s 2016 Equity Incentive Plan, you may also vote &ldquo;<B>For</B>&rdquo; or &ldquo;<B>Against</B>&rdquo;
each or both of these proposals, or you may &ldquo;<B>Abstain</B>&rdquo; from voting in respect of each or both of these proposals.
Please refer to the preceding section in considering the effect of abstentions and &ldquo;broker non-votes&rdquo; for Proposals
3 and 4.</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>&nbsp;</I></B></P>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">If you have any questions about this proxy
statement, please call our proxy solicitor, Georgeson, LLC, toll-free at 1-800-561-3947.</P>

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


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    <!-- Field: /Page -->

<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: 0"><B><I>&nbsp;</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 two beneficial owners of more than 5% of the outstanding shares of the Fund&rsquo;s
common stock: (i)&nbsp;MVC Capital, Inc.; and (ii) SPQR Capital Holdings S.A., Lansdowne Capital Ltd. and Bertrand des Pallieres.</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"><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: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The following table shows the amount of the
Fund&rsquo;s common stock beneficially owned (unless otherwise indicated) as of April 28, 2016, 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: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 28, 2016, or within 60 days after April 28, 2016, 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>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt; 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-size: 12pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; text-align: center"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Sole</b></P> <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Voting&nbsp;and</b></P> <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Investment</b></P> <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Power</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-size: 12pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; text-align: center"><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>Beneficial</b></P> <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Ownership</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-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center"><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><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; text-align: center"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Percent of</b></P> <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Class</b></P> <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Outstanding</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: 42%; text-align: left; text-indent: -12pt; padding-left: 12pt">Fraser Atkinson&#9;</TD><TD STYLE="width: 1%">&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">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&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"><font style="font-size: 10pt">&#9;*&#9;</font></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 12pt; text-indent: -12pt; padding-left: 12pt"><font style="font-size: 10pt">Alessandro Benedetti</font><font style="font-size: 7.5pt"><sup>(1) (2)</sup></font><font style="font-size: 10pt">&#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">410,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">410,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.24</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; 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">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><font style="font-size: 10pt">&#9;*&#9;</font></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">&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: 12pt; text-align: left; text-indent: -12pt; padding-left: 12pt"><font style="font-size: 10pt">John A. Hardy</font><font style="font-size: 7.5pt"><sup>(1)</sup></font><font style="font-size: 10pt"> &#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">10,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><font style="font-size: 10pt">&#9;*&#9;</font></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 12pt; text-align: left; text-indent: -12pt; padding-left: 12pt"><font style="font-size: 10pt">L&rsquo;Sheryl D. Hudson</font><font style="font-size: 7.5pt"><sup>(3)</sup></font><font style="font-size: 10pt">&#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">71,670</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">71,670</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><font style="font-size: 10pt">&#9;*&#9;</font></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 12pt; text-align: left; text-indent: -12pt; padding-left: 12pt"><font style="font-size: 10pt">MVC Capital, Inc.</font><font style="font-size: 7.5pt"><sup>(4)</sup></font><font style="font-size: 10pt">.&#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">4,444,644</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,444,644</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35.07</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 12pt; text-align: left; text-indent: -12pt; padding-left: 12pt"><font style="font-size: 10pt">Bertrand des Pallieres</font><font style="font-size: 7.5pt"><sup>(1) (5)</sup></font><font style="font-size: 10pt">&#9;</font></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,042,017</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,142,675</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,184,692</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17.24</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">All directors/director nominees and executive officers as a group (9 persons)&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,135,844</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,562,675</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,698,519</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21.29</TD><TD STYLE="text-align: left">%</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">*</TD><TD>Indicates less than one percent.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 9pt 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 10,000 shares held directly by Mobiquity Investments Limited and indirectly by Mobiquity Investments Corp. 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: 9pt 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: 9pt 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>Ms. Hudson serves as the Fund&rsquo;s Senior 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: 9pt 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 4,444,644 shares held directly by MVC Capital, Inc. (&ldquo;MVC&rdquo;), a business development company managed and
directed by The Tokarz Group Advisers, LLC (&ldquo;TTGA&rdquo;), an investment adviser registered pursuant to the Investment Advisers
Act of 1940. MVC&rsquo;s and TTGA&rsquo;s business address is 287 Bowman Avenue, 2<SUP>nd</SUP> Floor, Purchase, New York 10577.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 9pt 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 1,042,017 shares held directly by Mr. des Pallieres. Also includes 145,833 shares held directly by SPQR Capital Holdings
S.A., a Luxembourg <I>societe anonyme</I> in which Mr. des Pallieres is a minority stockholder and serves as a director. Also includes
986,842 shares held directly by Lansdowne Capital S.A., a Luxembourg <I>societe anonyme</I> 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>


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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">&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: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 2015 with
the reporting requirements of Section 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: 0 0 0 1.5in; text-indent: -1in"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 23.75pt">The Audit Committee is appointed by the Board
of Directors to review financial matters concerning the Fund. Each member of the Audit Committee meets the independence requirements
established by the Investment Company Act of 1940 (hereafter, the &ldquo;1940 Act&rdquo;) and under the applicable listing standards
of the New York Stock Exchange. The Audit Committee is responsible for the selection, engagement, compensation, retention and oversight
of the Fund&rsquo;s independent registered public accounting firm. We are also responsible for recommending to the Board of Directors
that the Fund&rsquo;s audited financial statements be included in its Annual Report on Form 10-K for the fiscal year.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 23.75pt">In making our recommendation that the Fund&rsquo;s
financial statements be included in its Annual Report on Form 10-K for the year ended December 31, 2015, we have taken the following
steps:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: right; vertical-align: top; width: 35pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We discussed
with BDO USA, LLP, the Fund&rsquo;s independent registered public accounting firm for the year ended December 31, 2015, those
matters required to be discussed by Auditing Standard No. 16, Communications with Audit Committees, issued by the Public Company
Accounting Oversight Board, including information regarding the scope and results of the audit. These communications and discussions
are intended to assist us in overseeing the financial reporting and disclosure process.</FONT></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: right; vertical-align: top; width: 35pt">&bull;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We conducted
periodic executive sessions with BDO with no members of Equus management present during those discussions. BDO did not identify
any material audit issues, questions or discrepancies, other than those previously discussed with management, which were resolved
to the satisfaction of all parties.</FONT></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We received
and reviewed the written disclosures and the letter from BDO required by the applicable requirements of the Public Company Accounting
Oversight Board Rule 3526 regarding BDO&rsquo;s communications with us concerning independence, and we discussed with BDO its
independence from Equus.</FONT></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We determined
that there were no former BDO employees who previously participated in the Fund&rsquo;s audit, engaged in a financial reporting
oversight role at Equus.</FONT></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We reviewed,
and discussed with Equus management and BDO, the Fund&rsquo;s audited balance sheet at December 31, 2015, and statements of operations,
changes in net assets and cash flows for the year ended December 31, 2015.</FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 23.75pt">Based on the reviews and actions described
above, we recommended to the Board of Directors that the Fund&rsquo;s audited financial statements be included in its Annual Report
on Form 10-K for the year ended December 31, 2015 for filing with the Securities and Exchange Commission.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">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">&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: 13.5pt 0 0; text-align: center"><B>COMPENSATION OF NAMED EXECUTIVE
OFFICERS </B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">This Compensation Discussion and Analysis provides
information about the fiscal year 2015 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: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 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 16 of 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">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>

<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">&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>Summary Compensation Table </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The following table summarizes the total compensation
that the Fund paid during the fiscal years ended December&nbsp;31, 2015 and 2014 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 CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
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    <TD STYLE="width: 18%; font-size: 12pt; text-align: left"><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="width: 1%; font-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 12pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; font-size: 12pt; font-weight: bold; text-align: right"><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="width: 1%; font-size: 12pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 12pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; font-size: 12pt; font-weight: bold; text-align: right"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Salary ($)</b></P> <!-- Field: Rule-Page --><div align="left" style="margin-top: 1pt; margin-bottom: 1pt"><div style="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</div></div><!-- Field: /Rule-Page --></TD><TD STYLE="width: 1%; font-size: 12pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 8%; font-size: 12pt; font-weight: bold; text-align: center; padding-left: 0.1in"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Bonus<br> ($)</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="width: 1%; font-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 8%; font-size: 12pt; font-weight: bold; text-align: center; padding-left: 0.1in"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Stock<br> Awards<br> ($)</b></P> <!-- Field: Rule-Page --><div align="left" style="margin-top: 1pt; margin-bottom: 1pt"><div style="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</div></div><!-- Field: /Rule-Page --></TD><TD STYLE="width: 1%; font-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 8%; font-size: 12pt; font-weight: bold; text-align: center; padding-left: 0.1in"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Option<br> Awards<br> ($)</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="width: 1%; font-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 8%; font-size: 12pt; font-weight: bold; text-align: center; 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>($)</b></font></P> <!-- Field: Rule-Page --><div align="left" style="margin-top: 1pt; margin-bottom: 1pt"><div style="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</div></div><!-- Field: /Rule-Page --></TD><TD STYLE="width: 1%; font-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 8%; font-size: 12pt; font-weight: bold; text-align: center; padding-left: 0.1in"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font-size: 7.5pt"><b>Change in</b></font><br> <font style="font-size: 7.5pt"><b>Pension Value</b></font><br> <font style="font-size: 7.5pt"><b>and</b></font><br> <font style="font-size: 7.5pt"><b>Nonqualified</b></font><br> <font style="font-size: 7.5pt"><b>Deferred</b></font><br> <font style="font-size: 7.5pt"><b>Compensation</b></font><br> <font style="font-size: 7.5pt"><b>Earnings ($)</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="width: 1%; font-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 8%; font-size: 12pt; font-weight: bold; text-align: center; 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>($)&nbsp;*</b></font></P> <!-- Field: Rule-Page --><div align="left" style="margin-top: 1pt; margin-bottom: 1pt"><div style="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</div></div><!-- Field: /Rule-Page --></TD><TD STYLE="width: 1%; font-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 12pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; font-size: 12pt; font-weight: bold; text-align: right"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Total ($)</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><TD STYLE="width: 1%; font-size: 12pt; font-weight: bold; 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">John A. Hardy&mdash;CEO&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;2015&#9;</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;2014&#9;</P></TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;200,000</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;200,000</P></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 0.1in">150,000 <BR>&#9;22,879</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in; vertical-align: middle">n/a <BR>&#9;n/a&#9;</TD><TD STYLE="text-align: center; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in; vertical-align: middle">n/a <BR>&#9;n/a&#9;</TD><TD STYLE="text-align: center; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in; vertical-align: middle">n/a <BR>&#9;n/a&#9;</TD><TD STYLE="text-align: center; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in; vertical-align: middle">n/a <BR>&#9;n/a&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 0.1in">&#8213; <BR>&#9;&#8213;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><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">222,879</P></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 12pt">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: center; vertical-align: middle">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: center; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: center; vertical-align: middle">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: center; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; padding-left: 19.6pt; text-align: center; vertical-align: middle">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: center; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: center; vertical-align: middle">&nbsp;</TD><TD STYLE="font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; 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">L&rsquo;Sheryl D. Hudson&mdash;CFO&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;2015</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;2014</P></TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;199,500&#9;</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;175,000&#9;</P></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.1in; text-align: right">37,771 <BR>&#9; 7,000</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in; vertical-align: middle">n/a <BR>&#9;n/a&#9;</TD><TD STYLE="text-align: center; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in; vertical-align: middle">n/a <BR>&#9;n/a&#9;</TD><TD STYLE="text-align: center; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in; vertical-align: middle">n/a <BR>&#9;n/a&#9;</TD><TD STYLE="text-align: center; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in; vertical-align: middle">n/a <BR>&#9;n/a&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 0.1in">11,864 <BR>&#9;5,460</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;249,135</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;187,460</P></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 12pt">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: center; vertical-align: middle">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: center; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: center; vertical-align: middle">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: center; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: center; vertical-align: middle">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: center; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: center; vertical-align: middle">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; 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&mdash; Secretary and CCO&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;2015&#9;</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;2014&#9;</P></TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;307,063</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;321,125</P></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in">n/a <BR>&#9;n/a&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in; vertical-align: middle">n/a <BR>&#9;n/a&#9;</TD><TD STYLE="text-align: center; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in; vertical-align: middle">n/a <BR>&#9;n/a&#9;</TD><TD STYLE="text-align: center; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in; vertical-align: middle">n/a <BR>&#9;n/a&#9;</TD><TD STYLE="text-align: center; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in; vertical-align: middle">n/a <BR>&#9;n/a&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 0.1in">&#8213; <BR>&#9;&#8213;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;307,063</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: right">&#9;321,125</P></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin: 1pt 5in 1pt 0in"><DIV STYLE="font-size: 1pt; border-top: Black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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: 12pt Times New Roman, Times, Serif; margin: 0 0 0 24.45pt; text-indent: -24.5pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">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 8 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: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 1940 Act. 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: 0; text-indent: 24.5pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 8 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: 0; text-indent: 24.5pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The Board has also appointed Robert L. Knauss
as its Chairman. The 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, as well as with the Fund&rsquo;s
Chief Compliance Officer. 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: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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: 12pt 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"><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>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 42.8pt; text-indent: -18.35pt">&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: 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>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 42.8pt; text-indent: -18.35pt">&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: 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>


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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: 12pt Times New Roman, Times, Serif; margin: 0 0 0 42.8pt; text-indent: -18.35pt">&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: 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>

<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 Committees has the Board established? </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">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: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 36%; font-size: 12pt; font-weight: bold; padding-bottom: 1pt"><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="width: 1%; font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 15%; font-size: 12pt; font-weight: bold; text-align: center; padding-bottom: 1pt; 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="width: 1%; font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 15%; font-size: 12pt; font-weight: bold; text-align: center; padding-bottom: 1pt; 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="width: 1%; font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 15%; font-size: 12pt; font-weight: bold; text-align: center; padding-bottom: 1pt; 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="width: 1%; font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 15%; font-size: 12pt; font-weight: bold; text-align: center; padding-bottom: 1pt; 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="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt">Robert L. Knauss, Chairman&#9;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 0.1in">*</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 0.1in">*</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 0.1in">Chair</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 0.1in">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt">Fraser Atkinson&#9;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 0.1in">Chair</TD><TD STYLE="font-size: 4pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 0.1in">*</TD><TD STYLE="font-size: 4pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt">Alessandro Benedetti&#9;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: center; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: center; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 0.1in">*</TD><TD STYLE="font-size: 4pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt">Richard F. Bergner&#9;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 0.1in">*</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 0.1in">*</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 0.1in">*</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 0.1in">Chair</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt">Kenneth I. Denos&#9;</TD><TD STYLE="font-size: 4pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-size: 4pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-size: 4pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-size: 4pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt">Henry W. Hankinson&#9;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: center; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 0.1in">Chair</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 0.1in">*</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 0.1in">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt">John A. Hardy&#9;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: center; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: center; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: center; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: center; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt">Bertrand des Pallieres&#9;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: center; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: center; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 0.1in">*</TD><TD STYLE="font-size: 4pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; padding-bottom: 1pt; padding-left: 0.1in">&nbsp;</TD></TR>
</TABLE>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&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: 24.45pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>The Fund&rsquo;s financial statements,</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 42.8pt; text-indent: -18.35pt">&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: 24.45pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>The Fund&rsquo;s compliance with legal and regulatory requirements,</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 42.8pt; text-indent: -18.35pt">&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: 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 42.8pt; text-indent: -18.35pt">&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: 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: 0 0 0 42.8pt; text-indent: -18.35pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 48.95pt; text-indent: -24.5pt">&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: 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 48.95pt; text-indent: -24.5pt">&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: 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 48.95pt; text-indent: -24.5pt">&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: 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>


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    <!-- Field: /Page -->

<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 0 0 48.95pt; text-indent: -24.5pt">&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: 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 48.95pt; text-indent: -24.5pt">&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: 24.45pt"></TD><TD STYLE="width: 24.5pt">&bull;</TD><TD>Oversee the Fund&rsquo;s financial controls and reporting processes;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 48.95pt; text-indent: -24.5pt">&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: 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 48.95pt; text-indent: -24.5pt">&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: 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 48.95pt; text-indent: -24.5pt">&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: 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 48.95pt; text-indent: -24.5pt">&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: 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>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">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 2015.</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"><B>Committee of the Independent Directors </B></P>

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 three times
during 2015.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">All of the 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 2015.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">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., 700 Louisiana Street, 48<SUP>th</SUP> Floor, Houston,
TX 77002. 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
2017 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>

<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">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: 0; text-indent: 24.5pt">&nbsp;</P>

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

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

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

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


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    <!-- Field: /Page -->

<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>How does the Board determine which directors are considered
independent? </I></B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 John A. Hardy and Kenneth I. Denos. 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: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>How often did the Board meet during 2015? </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During 2015, the Board met six times. Except
for Messrs. Benedetti and des Pallieres, each director attended at least 75% of all meetings held by the Board or the committees
of the Board on which he served, and six 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.</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"><B><I>How are directors compensated? </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During 2015, 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 Chairman of the Board.</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">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: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 2015, 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 2015, 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: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">In respect of services provided to the Fund
by members of the Board not in connection with their roles and duties as directors, the Fund pays a rate of $250 per hour for services
rendered. In connection with services rendered by Kenneth I. Denos, Secretary and Chief Compliance Officer of the Fund, the Fund
incurred $307,063 in such expenses in 2015.</P>

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


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    <!-- Field: /Page -->

<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; text-indent: 24.5pt">Independent/non-officer directors were paid
an aggregate of $311,000 and $300,000 as compensation for the years ended December&nbsp;31, 2015 and 2014, respectively. The following
table set forth compensation that the Fund paid to each person who served as a director during 2015:</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>2015 Director
Compensation Table</B></FONT><FONT STYLE="font-size: 9pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt; 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-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center"><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> ($)</b></P> <!-- Field: Rule-Page --><div align="left" style="margin-top: 1pt; margin-bottom: 1pt"><div style="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</div></div><!-- Field: /Rule-Page --></TD><TD STYLE="font-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>All Other<br> Compensation<br> ($)</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-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center"><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">96,000</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">96,000</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">Alessandro Benedetti.&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,000</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">23,000</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">Richard F. Bergner.&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">41,000</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">41,000</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">Gregory J. Flanagan&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,000</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">36,000</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">Henry W. Hankinson&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,000</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">36,000</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">Robert L. Knauss&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">56,000</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">56,000</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">Bertrand des Pallieres&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,000</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">23,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 12pt">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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: 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">10,000</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">10,000</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 2015 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: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</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: 0; text-indent: 24.5pt">&nbsp;</P>

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

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
    <td style="width: 21%">&nbsp;</td>
    <td style="width: 10%">&nbsp;</td>
    <td style="width: 16%">&nbsp;</td>
    <td style="width: 53%">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap>
        <P STYLE="font: 10pt 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: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Position(s)</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Held&nbsp;with</b></P>
        <P STYLE="font: 10pt 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: 10pt 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: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Principal Occupation(s)</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>During Past 5 Years</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: top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&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">700 Louisiana Street</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">48<sup>th</sup> Floor</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston, Texas 77002</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Age: 64</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">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; &nbsp;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 1978-2002. 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>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&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">700 Louisiana Street</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">48<sup>th</sup> Floor</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston, Texas 77002</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Age: 51</P></td>
    <td style="padding-left: 8.2pt"><font style="font-size: 10pt">Sr. Vice President, CFO, and Treasurer</font></td>
    <td style="padding-left: 7.35pt"><font style="font-size: 10pt">Indefinite terms; Vice&nbsp;President, CFO, and Treasurer 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">700 Louisiana Street</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">48<sup>th</sup> Floor</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston, Texas 77002</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Age: 48</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 2008.</font></td>
    <td><font style="font-size: 10pt">Secretary of the Fund since 2010 and a Director of the Fund since 2008.&nbsp;&nbsp;Chief Compliance Officer of the Fund since July 2011. President of Kenneth I. Denos, P.C. since January 2000; CEO of Fuelstream, Inc. (aviation fuel reseller) since September 2015.</font></td></tr>
</table>
<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">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>


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    <!-- Field: /Page -->

<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"><B>Executive Compensation Agreements </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During 2010, the Fund entered into a compensation
agreement with John A. Hardy, its Chief Executive Officer. The agreement, which remained in effect for 2015, 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. Since 2010, Mr. Hardy has voluntarily waived his right
to $2,183,298 of earned, but unpaid, bonus since the effective date of the agreement. 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: 0; text-indent: 24.5pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During 2015, we did not grant any plan-based
awards to our executive officers.</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"><B>Outstanding Equity Awards </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December&nbsp;31, 2015, 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: 0; text-indent: 0.5in">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During 2015, 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: 0; text-indent: 24.5pt">&nbsp;</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During 2015, 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: 0; text-indent: 24.5pt">&nbsp;</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The current term of office of all of the Fund&rsquo;s
directors expires at the 2016 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: 0; text-indent: 24.5pt">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Independent Directors </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="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
    <TD STYLE="width: 22%">&nbsp;</td>
    <TD STYLE="width: 10%">&nbsp;</td>
    <TD STYLE="width: 15%">&nbsp;</td>
    <TD STYLE="width: 36%">&nbsp;</td>
    <TD STYLE="width: 17%">&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>
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    <TD STYLE="padding-left: 0.1in">
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>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</b></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>and&nbsp; Length&nbsp;of</b></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Time&nbsp;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&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>
<!-- 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>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>
<!-- 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: 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">700 Louisiana Street</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">48<sup>th</sup> Floor</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston, Texas 77002</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Age: 58</P></td>
    <TD NOWRAP STYLE="padding-left: 0.1in"><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">2016;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Director<br>
        since 2010.</P></td>
    <TD STYLE="padding-left: 0.1in"><font style="font-size: 10pt">Chairman of GreenPower Motor Company Inc. since February 2011; CFO of Versatile Systems Inc. (&ldquo;Versatile&rdquo;) (technology consulting) from February 2003 to December 2013, Corporate Secretary of Versatile from October 2003 and Director from November to January 2014. 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 style="font-size: 10pt">None</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD NOWRAP STYLE="padding-left: 0.1in">&nbsp;</td>
    <TD NOWRAP STYLE="padding-left: 0.1in">&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</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">700 Louisiana Street</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">48<sup>th</sup> Floor</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston, Texas 77002</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Age: 54</P></td>
    <TD NOWRAP STYLE="padding-left: 0.1in"><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">2016; Director<br>
        since 2010.</P></td>
    <TD STYLE="padding-left: 0.1in"><font style="font-size: 10pt">Executive Chairman of the Fund from June 2011 to June 2014.&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.&nbsp;&nbsp;Director of Schwarzfield S.A. since February 2013 and Schwarzfield Services SAGL since October 2013.&nbsp;&nbsp;Director of Asherco LLP since October 2012.</font></td>
    <TD STYLE="padding-left: 10.7pt"><font style="font-size: 10pt">None</font></td></tr>
</TABLE>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 18%">&nbsp;</TD>
    <TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 13%">&nbsp;</TD>
    <TD STYLE="width: 46%">&nbsp;</TD>
    <TD STYLE="width: 13%">&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">700 Louisiana Street</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">48<SUP>th</SUP> Floor</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston, Texas 77002</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Age: 85</P></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in"><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">2016;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Director<BR>
        since 2005.</P></TD>
    <TD><FONT STYLE="font-size: 10pt">Practicing attorney in Houston, TX for 54 years. Mr. Bergner&rsquo;s practice includes corporate, investment, oil &amp; gas, and real estate issues; he has litigated cases in federal and state court.</FONT></TD>
    <TD STYLE="padding-left: 10.7pt"><FONT STYLE="font-size: 10pt">None</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&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: 74</P></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in"><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>
        2016;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Director<BR>
        since 2005.</P></TD>
    <TD STYLE="padding-left: 0.1in"><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 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="padding-left: 10.7pt"><FONT STYLE="font-size: 10pt">None</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0.1in">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="padding-bottom: 0.75pt">&nbsp;</TD>
    <TD STYLE="padding-left: 10.7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Robert L. 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: 85</P></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in"><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in"><FONT STYLE="font-size: 10pt">Term&nbsp;expires</FONT><BR>
<FONT STYLE="font-size: 10pt">2016; Chairman since 2014;</FONT><BR>
<FONT STYLE="font-size: 10pt">Director</FONT><BR>
<FONT STYLE="font-size: 10pt">since 1991.</FONT></TD>
    <TD STYLE="padding-left: 0.1in"><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 STYLE="font-size: 10pt">None</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0.1in">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0.1in">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 10.7pt">&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">700 Louisiana Street</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">48<SUP>th</SUP> Floor</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston, Texas 77002</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Age: 49</P></TD>
    <TD NOWRAP STYLE="padding-left: 0.1in"><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>
        2016;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Director<BR>
        since 2010.</P></TD>
    <TD STYLE="padding-left: 0.1in"><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 from August 2011 to June 2015;&nbsp;&nbsp;Director of Versatile Systems Inc. since December 2008, Chairman since October 2012, and acting CEO since August 2014;&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; Director of Orco Property Group S.A. from 2011 to 2013; 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: 10.7pt"><FONT STYLE="font-size: 10pt">None</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0.1in">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0.1in">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 10.7pt">&nbsp;</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: 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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    <!-- Field: /Page -->

<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">&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>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<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>
<!-- 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 colspan="3" 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>
<!-- 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>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>
<!-- 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 colspan="3" 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>
<!-- 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>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>
<!-- 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: top">
    <td colspan="2">
        <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">700 Louisiana Street</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">48<sup>th</sup> Floor</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston, Texas 77002</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Age: 64</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></td>
    <TD STYLE="padding-left: 0.1in"><font style="font-size: 10pt">Chief Executive Officer and Director</font></td>
    <td nowrap colspan="3" style="padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Term expires<br>
        2016;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Director<br>
        since 2010.</P></td>
    <TD STYLE="padding-left: 0.1in"><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; 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 1978-2002. Mr. Hardy was also an adjunct Professor lecturing in insurance law at the University of British Columbia from 1984-2000.</font></td>
    <td nowrap colspan="2" style="padding-left: 0.1in"><font style="font-size: 10pt">None</font></td></tr>
<tr style="vertical-align: top">
    <td colspan="2">&nbsp;</td>
    <td nowrap style="padding-bottom: 0.75pt">&nbsp;</td>
    <td nowrap colspan="3" style="padding-left: 0.1in">&nbsp;</td>
    <td>&nbsp;</td>
    <td nowrap colspan="2" style="padding-left: 0.1in">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td colspan="2">
        <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">700 Louisiana Street</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">48<sup>th</sup> Floor</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Houston, Texas 77002</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Age: 48</P></td>
    <td nowrap style="padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Secretary, Chief Compliance Officer, and</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">Director</P></td>
    <td nowrap colspan="3" style="padding-left: 0.1in">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Term expires<br>
        2016;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Director<br>
        since 2008.</P>
        <P STYLE="font: 4.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0.75pt">&nbsp;</P></td>
    <TD STYLE="padding-left: 0.1in"><font style="font-size: 10pt">Secretary of the Fund since 2010 and a Director of the Fund since 2008.&nbsp;&nbsp;Chief Compliance Officer of the Fund since July 2011.&nbsp;&nbsp;Deputy Executive Chairman of London Pacific &amp; Partners, Inc. from August 2009 to December 2014. 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; non-executive director of Start Scientific, Inc. from March 2007 to February 2012; President of Kenneth I. Denos, P.C. since January 2000; CEO of Fuelstream, Inc. (aviation fuel reseller) since September 2015.</font></td>
    <td nowrap colspan="2" style="padding-left: 0.1in"><font style="font-size: 10pt">Chairman of Fuelstream, Inc. </font></td></tr>
</table>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin: 1pt 5in 1pt 0in"><DIV STYLE="font-size: 1pt; border-top: Black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.7pt"><FONT STYLE="font-size: 10pt">(1)</FONT></TD><TD><FONT STYLE="font-size: 10pt">Interested directors are &ldquo;interested persons&rdquo; (as defined in the 1940 Act). </FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 24.7pt">&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">++</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: 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">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: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 28%; font-size: 12pt; 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="width: 8%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="width: 28%; font-size: 12pt; text-align: center"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Dollar&nbsp;Range&nbsp;of&nbsp;Equity</b></P> <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>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="width: 8%; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="width: 28%; font-size: 12pt; text-align: center; 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</b></P> <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Securities&nbsp;in&nbsp;All&nbsp;Funds&nbsp;Overseen</b></P> <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>or to be Overseen by Director</b></P> <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>or&nbsp;Nominee in Family of</b></P> <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>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="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; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-size: 4pt">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; padding-left: 0.1in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Fraser Atkinson&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in">$0-$10,000</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in">$0-$10,000</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Alessandro Benedetti&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in">Over $100,000</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in">Over $100,000</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Richard F. Bergner&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in">None</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in">None</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: center; padding-left: 0.1in">None</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in">None</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: center; padding-left: 0.1in">Over $100,000</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in">Over $100,000</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: center; padding-left: 0.1in">Over $100,000</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in">Over $100,000</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 12pt">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt">&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; padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-size: 4pt">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; padding-left: 0.1in">&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: center; padding-left: 0.1in">$10,001-$50,000</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in">$10,001-$50,000</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">John A. Hardy&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in">None</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 0.1in">None</TD></TR>
</TABLE>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin: 1pt 5in 1pt 0in"><DIV STYLE="font-size: 1pt; border-top: Black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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 28, 2016.</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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    <!-- Field: /Page -->

<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: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The Fund&rsquo;s Audit Committee approved and
the Board members unanimously approved and ratified the selection of BDO as the Fund&rsquo;s independent registered public accounting
firm for the fiscal year ending December&nbsp;31, 2016. BDO has served as the Fund&rsquo;s independent accounting firm since December
4, 2014.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Aggregate fees that BDO billed to the Fund
for professional services for the years ended December&nbsp;31, 2015 and 2014 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" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt; 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-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</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-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2014</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%; text-indent: -12pt; padding-left: 12pt"><font style="font-size: 10pt">Audit fees<sup>(1)(2)</sup>&#9;</font></TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">329,493</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">118,260</TD><TD STYLE="width: 1%; 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">Audit-related fees&#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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">Tax&#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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt">All other&#9;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">Total&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">329,493</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">118,260</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<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">Prior to the appointment of BDO in December
2014, UHY LLP served as the Fund&rsquo;s independent accounting firm. Aggregate fees that UHY billed to the Fund for professional
services for the years ended December&nbsp;31, 2015 and 2014 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" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt; 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-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2015</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-size: 12pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2014</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%; text-indent: -12pt; padding-left: 12pt"><font style="font-size: 10pt">Audit fees<sup>(1)</sup>&#9;</font></TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">4,262</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">175,960</TD><TD STYLE="width: 1%; 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">Audit-related fees&#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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">Tax&#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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt">All other&#9;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">Total&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,262</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">175,960</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&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: 0.5in">(1)</TD><TD>Consists of fees for the audit of our annual financial statements, review of quarterly statements, and security counts.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&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: 0.5in">(2)</TD><TD>In addition to fees in respect of the Fund&rsquo;s operations described above, audit fees for 2015 also consist of fees incurred
in connection with the audit of the financial statements of Equus Energy, LLC, a wholly-owned subsidiary of the Fund.</TD></TR></TABLE>

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

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

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

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

<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 BDO. 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>BDO USA, LLP 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 2016</B></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; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The Compensation Discussion and Analysis beginning
on page 9 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 2015 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; margin: 0 0 0 24.5pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-indent: 0.5in">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; margin: 0; text-indent: 24.5pt">&nbsp;</P>

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

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


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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; text-align: center"><B>PROPOSAL 4&mdash;APPROVAL OF THE FUND&rsquo;S
2016 EQUITY INCENTIVE PLAN</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On April 15, 2016, the Board adopted the Fund&rsquo;s
2016 Equity Incentive Plan (the &ldquo;Plan&rdquo;) and recommended that the Fund&rsquo;s shareholders approve the Plan. If the
Plan is approved by our shareholders at the Meeting, the Plan will be effective as of June 13, 2016.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The Plan is intended to promote the interests
of the Fund by encouraging officers, employees, and directors of the Fund and its affiliates to acquire or increase their equity
interest in the Fund and to provide a means whereby they may develop a proprietary interest in the development and financial success
of the Fund, to encourage them to remain with and devote their best efforts to the business of the Fund, thereby advancing the
interests of the Fund and our stockholders. The Plan is also intended to enhance the ability of the Fund and its affiliates to
attract and retain the services of individuals who are essential for the growth and profitability of the Fund.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">A majority of the votes cast is required to
approve this proposal. Brokers do not have discretion to vote on this proposal without your instruction. If you do not instruct
your broker how to vote on this proposal, your broker will deliver a non-vote on this proposal.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Summary of Material Features of the Plan </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The material features of the Plan are:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right">&bull;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">The maximum number of shares of common stock to be issued under the Plan is 2,534,728
shares;</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right">&bull;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">The award of stock options (both incentive and non-qualified options), as well as
the award of restricted stock, is permitted;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right">&bull;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">The term of the Plan will expire on June 13, 2026, which is ten years from the date
of the Meeting.</TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Based solely on the closing price of our common
stock as reported by the New York Stock Exchange on April 15, 2016, the maximum aggregate market value of the common stock that
could potentially be issued under the Plan is approximately $4.1 million. The shares we issue under the Plan will be authorized
but unissued shares or shares that we reacquire due to the forfeiture or cancellation of shares underlying awards granted to Plan
participants. The shares of common stock underlying any awards under the Plan that are forfeited, cancelled or are otherwise terminated
(other than by exercise) are added back to the shares of common stock available for issuance under the Plan.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>APPROVAL OF THE FUND&rsquo;S 2016 EQUITY
INCENTIVE PLAN</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The following is a summary of the key terms
of the Plan. The summary does not purport to be a complete description of all provisions of the Plan and is qualified in its entirety
by reference to the complete text of the Plan which is attached as an exhibit to this proxy statement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Plan Administration.</I> The Plan will be
administered by the Board of Directors or a committee of the Board comprised solely of individuals who are not considered &ldquo;interested
persons&rdquo; of the Fund as defined in Section 2(a)(19) of the 1940 Act (the Board or the Committee discharged to administer
the Plan is hereafter referred to as the &ldquo;Plan Administrator&rdquo;). The Plan Administrator has full power to select, from
among the individuals eligible for awards, the individuals to whom awards will be granted, to make any combination of awards to
participants, and to determine the specific terms and conditions of each award, subject to the provisions of the Plan.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>SEC Orders and Limitations on Awards</I>.
We will be required, and following approval of the Plan we intend to seek, an exemptive order from the U.S. Securities and Exchange
Commission (&ldquo;SEC&rdquo;) to enable us to grant awards under the Plan to non-employee directors. Further, we will also require
and intend to also seek an exemptive order from the SEC to grant awards consisting of restricted stock. We may also modify certain
terms and conditions of the Plan depending upon the requirements of the SEC.</P>


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    <!-- Field: /Page -->

<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; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Eligibility.</I> Persons eligible to participate
in the Plan will be those full or part-time officers, employees, and non-employee directors of the Fund and its subsidiaries as
selected from time to time by the Plan Administrator in its discretion (sometimes referred to hereinafter as &ldquo;Participants&rdquo;
or individually as a &ldquo;Participant&rdquo;). Approximately 10 individuals are currently eligible to participate in the Plan,
which includes 3 officers, one employee who is not an officer, and 6 non-employee directors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Aggregate Plan Limits.</I> 2,534,728 shares
are initially available for issuance under the Plan. The amount of voting securities that would result from the exercise of all
options, together with any restricted stock issued pursuant to the Plan, at the time of issuance shall not exceed 25% of our outstanding
voting securities, except that if the amount of voting securities that would result from such exercise of all of our outstanding
options, together with any restricted stock issued pursuant to the Plan, would exceed 15% of our outstanding voting securities,
then the total amount of voting securities that would result from the exercise of all outstanding options, together with any restricted
stock issued pursuant to the Plan, at the time of issuance shall not exceed 20% of our outstanding voting securities. Any shares
withheld from an award, either to satisfy tax withholding requirements, or pursuant to the delivery of shares of common stock or
restricted stock upon the exercise of options, will not be returned to the Plan reserve.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Individual Plan Limits</I>. The maximum award
of stock options granted to any one individual will not exceed 1,000,000 shares of common stock (subject to adjustment for stock
splits and similar events) for any calendar year period, net of any shares canceled or redeemed in connection with any tax withholding.
The maximum award of shares of restricted stock issued to any one individual will not exceed 500,000 shares of common stock (subject
to adjustment for stock splits and similar events) for any calendar year period, net of any shares canceled or redeemed in connection
with any tax withholding.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Amendment and Termination</I>. The Board
may, without shareholder approval, modify, revise or terminate the Plan at any time and from time to time, subject to the terms
of (a) the Order, (b) the Fund&rsquo;s Certificate of Incorporation and Bylaws, and (c) applicable law. The Board will seek stockholder
approval of any action modifying a provision the Plan if it is determined that such stockholder approval is appropriate under the
provisions of applicable law, the Fund&rsquo;s Certificate of Incorporation or Bylaws, or pursuant to an order from the SEC. The
Plan will terminate when all shares of the Fund&rsquo;s common stock reserved for issuance thereunder have been issued and the
forfeiture provisions on all restricted stock awards have lapsed, or otherwise by action of the Board.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Stock Options.</I> The Plan permits the granting
of (1) options to purchase common stock intended to qualify as incentive stock options under Section 422 of the Internal Revenue
Code of 1986, as amended (the &ldquo;Code&rdquo;) and (2) options that do not so qualify. Options granted under the Plan will be
non-qualified options if they fail to qualify as incentive options or exceed the annual limit on incentive stock options. Incentive
stock options may only be granted to employees of the Fund and its subsidiaries. Non-qualified options may be granted to any persons
eligible to receive incentive options and to non-employee directors. The option exercise price of each option will be determined
by the Plan Administrator but may not be less than 100% of the fair market value of the common stock on the date of grant, or if
required under the Investment Company Act of 1940, as amended (the &ldquo;1940 Act&rdquo;), not less than the net asset value of
the common stock on the date of grant. Fair market value for this purpose will be the last reported sale price of the shares of
common stock on the New York Stock Exchange on the date of grant.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The term of each option will be fixed by the
Plan Administrator and may not exceed ten years from the date of grant. The Plan Administrator will determine at what time or times
each option may be exercised. Options may be made exercisable in installments and the exercisability of options may be accelerated
by the Plan Administrator. In general, unless otherwise permitted by the Plan Administrator, no option granted under the Plan is
transferable by the optionee other than by will or by the laws of descent and distribution, and options may be exercised during
the optionee&rsquo;s lifetime only by the optionee, or by the optionee&rsquo;s legal representative or guardian in the case of
the optionee&rsquo;s incapacity.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Upon exercise of options, the option exercise
price must be paid in full either in cash, by certified or bank check or other instrument acceptable to the Plan Administrator
or by delivery (or attestation to the ownership) of shares of common stock that are beneficially owned by the optionee for at least
six months or were purchased in the open market. Subject to applicable law, the exercise price may also be delivered to the Fund
by a broker pursuant to irrevocable instructions to the broker from the optionee. In addition, the Plan Administrator may permit
non-qualified options to be exercised using a net exercise feature which reduces the number of shares issued to the optionee by
the number of shares with a fair market value equal to the exercise price.</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; text-indent: 24.5pt">To qualify as incentive options, options must
meet additional federal tax requirements, including a $100,000 limit on the value of shares subject to incentive options that first
become exercisable by a Participant in any one calendar year.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Restricted Stock</I>. Subject to the requirement
of obtaining an SEC order, the Plan Administrator is authorized to grant restricted stock awards. A grant of restricted stock is
a grant of shares of the Fund&rsquo;s common stock that, at the time of issuance, are subject to certain forfeiture provisions,
and thus are restricted as to transferability until such forfeiture restrictions have lapsed. The restricted stock will be subject
to restrictions on transferability and other restrictions as required by the Plan Administrator from time to time. Except to the
extent restricted by the Plan Administrator, a Participant granted an award of restricted stock will have all the rights of any
other stockholder, including the right to vote the restricted stock and the right to receive dividends. During the restriction
period (i.e., prior to the lapse of applicable forfeiture provisions), the restricted stock generally may not be sold, transferred,
pledged, hypothecated, margined, or otherwise encumbered by the Participant. Except as the Plan Administrator otherwise determines,
upon termination of a Participant&rsquo;s service as a director, officer, and employee of the Fund during the applicable restriction
period, restricted stock, for which forfeiture provisions have not lapsed at the time of such termination, shall be forfeited.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Performance Goals</I>. The Plan Administrator
may determine, in its discretion, that an award of restricted stock to the Chief Executive Officer or certain of our other most
highly compensated officers will be designed to comply with the performance-based exception under Section 162(m) of the Code. In
such case, the level of vesting of the award will depend on the attainment of any of the following performance criteria, either
alone or in any combination, which may be expressed with respect to the Fund or one or more operating units or groups, as the Plan
Administrator may determine: (a) cash flow; (b) cash flow from operations; (c) total earnings; (d) earnings per share, diluted
or basic; (e) earnings per share from continuing operations, diluted or basic; (f) earnings before interest and taxes; (g) earnings
before interest, taxes, depreciation, and amortization; (h) earnings from operations; (i) net asset turnover; (j) inventory turnover;
(k) capital expenditures; (l) net earnings; (m) operating earnings; (n) gross or operating margin; (o) debt; (p) working capital;
(q) return on equity; (r) return on net assets; (s) return on total assets; (t) return on capital; (u) return on investment; (v)
return on sales; (w) net or gross sales; (x) market share; (y) economic value added; (z) cost of capital; (aa) change in assets;
(bb) expense reduction levels; (cc) debt reduction; (dd) productivity; (ee) delivery performance; (ff) safety record; (gg) stock
price; and (hh) total stockholder return. Performance goals may be determined on an absolute basis or relative to internal goals
or relative to levels attained in prior years or related to other companies or indices or as ratios expressing relationships between
two or more performance goals. Performance goals may but need not be determinable in conformance with generally accepted accounting
principles.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Change of Control Provisions.</I> The Plan
provides that, upon the effectiveness of a &ldquo;change of control&rdquo; as defined in the Plan, unless otherwise determined
by the Plan Administrator at the time an award is made under the Plan, all stock options and shares of restricted stock may vest
upon and subject to the closing of the change of control and all outstanding options will be assumed or continued by the successor
entity. In addition, in the event an optionee&rsquo;s employment or other service terminates upon or following a change of control,
any then outstanding options (or other award continued or substituted therefor) shall remain exercisable for a period of 6 months
following such termination, or, if earlier, the expiration date of such option.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Adjustments for Stock Dividends, Stock Splits,
Etc.</I> The Plan requires the Plan Administrator to make appropriate adjustments to the number of shares of common stock that
are subject to the Plan, to certain limits in the Plan, and to any outstanding awards to reflect stock dividends, stock splits,
extraordinary cash dividends and similar events.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Tax Withholding.</I> Participants in the
Plan are responsible for the payment of any federal, state or local taxes that the Fund is required by law to withhold upon the
exercise of options or stock appreciation rights or vesting of other awards. Subject to approval by the Plan Administrator, Participants
may elect to have the minimum tax withholding obligations satisfied by authorizing the Fund to withhold shares of common stock
to be issued pursuant to the exercise or vesting. Any such shares, however, will not be added back to the number of shares reserved
or otherwise available for issuance under the Plan.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Amendments and Termination.</I> The Board
may at any time amend or discontinue the Plan and the Plan Administrator may at any time amend or cancel any outstanding award
for the purpose of satisfying changes in the law or for any other lawful purpose. However, no such action may adversely affect
any rights under any outstanding award without the holder&rsquo;s consent. To the extent required under the rules of the New York
Stock Exchange, or by the 1940 Act, any amendments that materially change the terms of the Plan will be subject to approval by
our shareholders. Amendments shall also be subject to approval by our shareholders if and to the extent determined by the Plan
Administrator to be required by the Code to preserve the qualified status of incentive options.</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: 0; text-indent: 24.5pt"><I>Effective Date of the Plan.</I> Although
the Board adopted the Plan on April 15, 2016, it will not become effective unless and until it is approved by our shareholders.
Awards of incentive options may be granted under the Plan until the date that that is 10 years from the effective date of the Plan.
No other awards may be granted under the Plan after the date that is 10 years from the date of stockholder approval. Notwithstanding
the foregoing, the Plan shall not be effective with respect to any award to a non-employee director or any award of restricted
stock unless the Fund has received an order from the SEC that permits such award.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The following is a summary of the principal
federal income tax consequences of certain transactions under the Plan. It does not describe all federal tax consequences under
the Plan, nor does it describe state or local tax consequences. This discussion does not address all aspects of the United States
federal income tax consequences of participating in the Plan that may be relevant to Participants in light of their personal investment
or tax circumstances and does not discuss any state, local or non-United States tax consequences of participating in the Plan.
The tax consequences of awards may vary depending upon the particular circumstances, and it should be noted that the income tax
laws, regulations and interpretations thereof change frequently. Participants should rely upon their own tax advisors for advice
concerning the specific tax consequences applicable to them, including the applicability and effect of state, local, and foreign
tax laws.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Incentive Options.</I> No taxable income
is generally realized by the optionee upon the grant or exercise of an incentive option. If shares of common stock issued to an
optionee pursuant to the exercise of an incentive option are sold or transferred after the longer of two years from the date of
grant and one year from the date of exercise, then (i) upon sale of such shares, any amount realized in excess of the option price
(the amount paid for the shares) will be taxed to the optionee as a long-term capital gain, and any loss sustained will be a long-term
capital loss, and (ii) the Fund will generally not be entitled to any deduction for federal income tax purposes, except in the
case of a disqualifying disposition. The exercise of an incentive option will give rise to an item of tax preference that may result
in alternative minimum tax liability for the optionee.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">If shares of common stock acquired upon the
exercise of an incentive option are disposed of prior to the expiration of the two-year and one-year holding periods described
above (a &ldquo;disqualifying disposition&rdquo;), generally (i) the optionee will realize ordinary income in the year of disposition
in an amount equal to the excess (if any) of the fair market value of the shares of common stock at exercise (or, if less, the
amount realized on a sale of such shares of common stock) over the option price thereof, and (ii) we will be entitled to deduct
such amount. Any gain realized in excess of this amount will generally be considered as capital gain. Special rules will apply
where all or a portion of the exercise price of the incentive option is paid by tendering shares of common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">If an incentive option is exercised at a time
when it no longer qualifies for the tax treatment described above, the option is treated as a non-qualified option. Generally,
an incentive option will not be eligible for the tax treatment described above unless, at all times during the period beginning
on the option grant date and ending on the day three months before the option was exercised, the optionee remains our employee
or an employee of a related corporation (or one year in the case of termination of employment by reason of disability). In the
case of termination of employment by reason of death, the three-month rule does not apply.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Non-Qualified Options.</I> No income is realized
by the optionee at the time the option is granted. Generally (i) at exercise, ordinary income is realized by the optionee in an
amount equal to the difference between the option price and the fair market value of the shares of common stock on the date of
exercise, and we receive a tax deduction for the same amount, and (ii) at disposition, gain or loss after the date of exercise
is treated as either short-term or long-term capital gain or loss depending on how long the shares of common stock have been held.
Special rules will apply where all or a portion of the exercise price of the non-qualified option is paid by tendering shares of
common stock. Upon exercise, the optionee will also be subject to Social Security taxes on the excess of the fair market value
over the exercise price of the option.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Awards of Restricted Stock</I>. No taxable
income is recognized by a recipient of a restricted stock award upon the grant of such award, provided that the award is subject
to restrictions on transfer and is subject to a substantial risk of forfeiture, and we are not allowed a tax deduction for the
award on such date. However, a recipient of a restricted stock award under the Plan will incur taxable income based on the fair
market value of the Fund&rsquo;s common stock when the forfeiture provisions on his or her award, or any portion thereof, lapse,
and we generally will be allowed a corresponding tax deduction at that time. Such taxable income will generally be recognized as
ordinary income. Any gain upon a later disposition of the stock in excess of this amount will generally be considered capital gain.</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; text-indent: 24.5pt">The recipient may, however, elect under Section
83(b) of the Internal Revenue Code to include as ordinary income the fair market value of the award on the date of issuance in
the year he or she receives the restricted stock award. In such case, we generally will be allowed a corresponding federal income
tax deduction at that time. If the Section 83(b) election is made, the recipient will not recognize any additional income as and
when the forfeiture provisions lapse. However, any gain upon a later disposition of the stock will generally be considered as capital
gain. If the shares of common stock subject to such Section 83(b) election are later forfeited, the recipient will not be entitled
to any deduction, refund, or loss (other than any amount paid for the stock) for tax purposes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Parachute Payments.</I> The vesting of any
portion of an option or other award that is accelerated due to the occurrence of a change in control (such as a sale event) may
cause a portion of the payments with respect to such accelerated awards to be treated as &ldquo;parachute payments&rdquo; as defined
in the Code. Any such parachute payments may be non-deductible to the Fund, in whole or in part, and may subject the recipient
to a non-deductible 20% federal excise tax on all or a portion of such payment (in addition to other taxes ordinarily payable).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Limitation on Deductions.</I> Under Section
162(m) of the Code, the Fund&rsquo;s deduction for certain awards under the Plan may be limited to the extent that the Chief Executive
Officer or certain of our other most highly compensated officers receives compensation in excess of $1 million a year (other than
performance-based compensation that otherwise meets the requirements of Section 162(m) of the Code). The Plan is structured to
allow certain awards to qualify as performance-based compensation.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Code Section 409A</I>. The Plan is intended
to be administered in a manner generally consistent with the requirements Section 409A of the Code. If an award is subject to Section
409A (which relates to nonqualified deferred compensation plans), and if the requirements of Section 409A are not met, the taxable
events as described above could apply earlier than described, and could result in the imposition of additional taxes and penalties
to a participant and to a loss of deduction by us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The foregoing tax discussion is intended for
the general information of stockholders considering how to vote with respect to this proposal and not as tax guidance to participants
in the Plan. Participants in the Plan should consult their own tax advisors regarding the federal, state, local, foreign and other
tax consequences to them of participating in the Plan.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The approval of the Plan requires the affirmative
vote of a majority of the votes cast on the proposal at the Meeting. Abstentions and &ldquo;broker non-votes&rdquo; will not be
counted as having been voted on the proposal, and therefore will have the same effect as negative votes.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The Board recommends that the shareholders vote
FOR the approval of the Fund&rsquo;s 2016 Equity Incentive Plan.</P>


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    <!-- Field: /Page -->

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">A copy of the Fund&rsquo;s 2015 Annual Report
to Stockholders on Form 10-K 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: Secretary, 700 Louisiana Street, 48<SUP>th</SUP> Floor, Houston,
TX 77002, or call our proxy solicitor Georgeson, LLC, toll-free at (800) 561-3947 . 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: 0; text-align: center"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Stockholder Proposals for the 2017 Annual
Meeting</B>. Stockholders interested in submitting a proposal for inclusion in the proxy materials for the annual meeting of stockholders
in 2017 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, 2016. Proposals should be sent to the Fund, at 700 Louisiana
Street, 48<SUP>th</SUP> Floor, Houston, TX 77002, Attention: Secretary. 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: 0; text-indent: 24.5pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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., 700 Louisiana Street, 48<SUP>th</SUP> Floor, Houston, TX 77002,
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: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The proxy solicited by the Board of Directors
for the 2017 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, 2016.</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">A copy of the full text of the by-law provisions
discussed above may be obtained by writing to the Corporate Secretary, 700 Louisiana Street, 48<SUP>th</SUP> Floor, Houston, TX
77002 and is included as an exhibit to the Fund&rsquo;s annual report on Form 10-K for the period ended December&nbsp;31, 2015
as filed with the SEC via EDGAR on March 30, 2016.</P>


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    <!-- Field: /Page -->

<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: 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., 700 Louisiana Street, 48<SUP>th</SUP> Floor, Houston, TX
77002. 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: 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>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., 700 Louisiana Street, 48<SUP>th</SUP> Floor, Houston,
TX 77002. 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: 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Proxy Solicitation Costs</B>. The proxies
being solicited hereby are being solicited by Georgeson, LLC 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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    <!-- Field: /Page -->

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

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<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>700 LOUISIANA STREET</i></b></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><b><i>48<sup>TH</sup> FLOOR</i></b></P>
        <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0.75pt"><b><i>HOUSTON, TX 77002</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; www.proxy-direct.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; 1-800-337-3503</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: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:</P>

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

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
    <td style="width: 33%">&nbsp;</td>
    <td style="width: 36%">&nbsp;</td>
    <td style="width: 31%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; border-bottom: black 1pt solid; padding-bottom: 0.75pt; text-align: right"><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 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">&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 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="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: 12pt 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 Times New Roman, Times, Serif">&#9744;</font></td>
    <td style="text-align: center">&nbsp;</td>
    <td colspan="2" style="text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">&#9744;</font></td>
    <td style="text-align: center">&nbsp;</td>
    <td style="text-align: center"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">&#9744;</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 eight 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">05) 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">06) 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">07) 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">08) 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">&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">&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"><font style="font-size: 7.5pt">To ratify the selection of BDO USA, LLP as the Fund&rsquo;s independent registered public accounting firm for the fiscal year ending December 31, 2016.</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 Times New Roman, Times, Serif">&#9744;</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 Times New Roman, Times, Serif">&#9744;</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 Times New Roman, Times, Serif">&#9744;</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">&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="5">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td colspan="2" 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 style="text-align: center">&nbsp;</td>
    <td colspan="3" style="text-align: center">&nbsp;</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">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 in 2015, 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 Times New Roman, Times, Serif">&#9744;</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 Times New Roman, Times, Serif">&#9744;</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 Times New Roman, Times, Serif">&#9744;</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">&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 colspan="2">&nbsp;</td>
    <td colspan="4">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</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">4.</font></td>
    <td colspan="26" style="vertical-align: top"><font style="font-size: 7.5pt">To approve the Fund&rsquo;s 2016 Equity Incentive Plan.</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 Times New Roman, Times, Serif">&#9744;</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 Times New Roman, Times, Serif">&#9744;</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 Times New Roman, Times, Serif">&#9744;</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">&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 colspan="2">&nbsp;</td>
    <td colspan="4">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="3">&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 colspan="2">&nbsp;</td>
    <td colspan="4">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="3">&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="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 9, 2016, 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">&nbsp;</td>
    <td colspan="3">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="34">&nbsp;</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">&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">&nbsp;</td>
    <td colspan="3">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="34">&nbsp;</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">&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>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 5%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 5%">&nbsp;</td>
    <td style="width: 5%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 8%">&nbsp;</td>
    <td style="width: 13%">&nbsp;</td>
    <td style="width: 3%">&nbsp;</td>
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    <td style="width: 1%">&nbsp;</td>
    <td style="width: 4%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
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    <td style="width: 5%">&nbsp;</td>
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    <td style="width: 2%">&nbsp;</td>
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    <td style="width: 3%">&nbsp;</td>
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    <td style="width: 1%">&nbsp;</td>
    <td style="width: 4%">&nbsp;</td>
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    <td style="width: 5%">&nbsp;</td>
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    <td style="width: 3%">&nbsp;</td>
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    <td style="width: 2%">&nbsp;</td></tr>
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<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>


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

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

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 98%">&nbsp;</td>
    <td style="width: 1%">&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; 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>700 Louisiana Street, 48<sup>th</sup> Floor,
        Houston, TX 77002</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 Stockholders on
        June 13, 2016</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; text-indent: 23.75pt">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 13, 2016,
        at 11:00 a.m. EDT, at Jenner &amp; Block LLP, 919 Third Avenue, New York, NY 10022-3908 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 4, 2016, 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; padding-right: 6pt">&nbsp;</td></tr>
</table>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>



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

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-1
<SEQUENCE>2
<FILENAME>ex1_equityincentiveplan.htm
<DESCRIPTION>2019 EQUITY INCENTIVE PLAN
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

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

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: right">EXHIBIT 1</P>

<P STYLE="font: bold 14pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center">EQUUS TOTAL
RETURN, INC.</P>

<P STYLE="font: bold 14pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center">2016
EQUITY INCENTIVE PLAN</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">1.</TD><TD>PURPOSE.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(A)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>General Purpose</U>. The Plan has been established to advance the interests of the Company by providing for the grant
of Awards to Participants. At all times during such periods as the Company qualifies or is intended to qualify as a &ldquo;business
development company&rdquo; under the 1940 Act, the terms of the Plan shall be construed so as to conform to the stock-based compensation
requirements applicable to &ldquo;business development companies&rdquo; under the 1940 Act. An Award or related transaction will
be deemed to be permitted under the 1940 Act if permitted by any exemptive or &ldquo;no-action&rdquo; relief granted by the Commission
or its staff.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(B)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Available Awards</U>. The purpose of the Plan is to provide a means by which eligible recipients of Awards may be given
an opportunity to benefit from increases in the value of the Company&rsquo;s Stock through the granting of Restricted Stock, Incentive
Stock Options and Non-statutory Stock Options.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(C)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Eligible Participants</U>. All Officers, key Employees and all Directors are eligible to be granted Awards under the
Plan; <I>provided, however</I>, that a Director who is not an Employee shall not be granted an Award unless and until the Company
has received an order from the Commission permitting Awards to non-Employee Directors; <I>provided further</I>, that no Participant
shall be granted an Award of Restricted Stock unless and until the Company has received an order from the Commission permitting
Awards of Restricted Stock hereunder.</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">2.</TD><TD>DEFINITIONS.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(A)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>1940 Act</B>&rdquo;</I> means the Investment Company Act of 1940, as amended, and the rules and regulations
promulgated thereunder.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(B)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Affiliate</B>&rdquo;</I> means any corporation or other entity that stands in a relationship to the Company
that would result in the Company and such corporation or other entity being treated as one employer under Section 414(b) or Section
414(c) of the Code, except that in determining eligibility for the grant of an Option by reason of service for an Affiliate, Sections
414(b) and 414(c) of the Code shall be applied by substituting &ldquo;at least 50%&rdquo; for &ldquo;at least 80%&rdquo; under
Section 1563(a)(1), (2) and (3) of the Code and Treas. Regs. &sect; 1.414(c)-2; <I>provided</I>, that to the extent permitted under
Section 409A, &ldquo;at least 20%&rdquo; shall be used in lieu of &ldquo;at least 50%&rdquo;; <I>and further provided</I>, that
the lower ownership threshold described in this definition (50% or 20% as the case may be) shall apply only if the same definition
of affiliation is used consistently with respect to all compensatory stock options or stock awards (whether under the Plan or another
plan). The Company may at any time by amendment provide that different ownership thresholds (consistent with Section 409A) apply.
Notwithstanding the foregoing provisions of this definition, except as otherwise determined by the Board, a corporation or other
entity shall be treated as an Affiliate only if its employees would be treated as employees of the Company for purposes of the
rules promulgated under the Securities Act of 1933, as amended, with respect to the use of Form S-8.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(C)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Award</B>&rdquo;</I> means an award of Restricted Stock or Options granted pursuant to the Plan.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(D)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Award Agreement</B>&rdquo;</I> means any written agreement, contract, or other instrument or document approved
by the Board which evidences an Award granted under the Plan.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(E)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Board</B>&rdquo;</I> means the Board of Directors of the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(F)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Change of Control</B>&rdquo;</I> shall mean the first to occur of the following:</P>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD>Any Person (including one or more Persons acting as a partnership, limited partnership, syndicate, or other group for the purposes
of acquiring, holding, or disposing of securities of the Company) other than (a) a trustee or other fiduciary holding securities
under an employee benefit plan of the Company, or (b) a corporation owned directly or indirectly by the shareholders of the Company
in substantially the same proportions as their ownership of stock of the Company, is or becomes the beneficial owner, directly
or indirectly, of securities of the Company representing forty percent (40%) or more of the total voting power represented by the
Company&rsquo;s then-outstanding voting securities; or</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD>During any period of two (2) consecutive years, individuals who at the beginning of such period constitute the Board plus any
new Director whose election by the Board or nomination for election by the Company&rsquo;s shareholders was approved by a vote
of at least two-thirds (2/3) of the Board at the beginning of the period or whose election or nomination for election was previously
so approved, cease for any reason to constitute a majority thereof; or</TD></TR></TABLE>

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<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD>The shareholders of the Company approve a merger or consolidation of the Company with any other corporation (and such merger
or consolidation is in fact consummated), other than a merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into
voting securities of the surviving entity) at least eighty percent (80%) of the total voting power represented by the voting securities
of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the shareholders of the
Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all
or substantially all the Company&rsquo;s assets , provided that such merger, consolidation, liquidation, sale or disposition, as
the case may be, is actually consummated.</TD></TR></TABLE>


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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: 0in"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 1.5in; text-indent: 0in">However, in no event shall a Change
of Control be deemed to have occurred, with respect to a Participant, if such Participant is part of a purchasing group which
consummates the transaction resulting in the Change of Control. The Participant shall be deemed &ldquo;part of a purchasing group&rdquo;
for purposes of the preceding sentence if the Participant is an equity participant in the purchasing company or group (except
for (i) passive ownership of less than three percent (3%) of the stock (or membership or partnership units, as the case may be)
of the purchasing company or group which is otherwise not significant, as reasonably determined prior to the Change of Control
by a majority of the Directors who were members of the Board at least six (6) months prior to the Change of Control).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(G)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Code</B>&rdquo;</I> means the Internal Revenue Code of 1986, as amended and in effect, or any successor statute
as from time to time in effect. Any reference to a provision of the Code shall be deemed to include a reference to any applicable
guidance (as determined by the Board) with respect to such provision.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(H)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Commission</B>&rdquo;</I> means the U.S. Securities and Exchange Commission.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(I)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Committee</B>&rdquo;</I> has the meaning set forth in Section 3.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(J)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Company</B>&rdquo;</I> means, collectively, Equus Total Return, Inc. and its subsidiaries.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(K)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Continuous Service&rdquo;</B></I> means, with respect to any Participant, such Participant&rsquo;s uninterrupted
service with the Company or an Affiliate, whether as an Employee, Officer, or Director.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(L)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Covered Employee</B>&rdquo;</I> shall mean a Participant who the Committee determines is or may be one of the
group of &ldquo;covered employees&rdquo; as defined in the regulations promulgated under Code Section 162(m), or any successor
statute.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><I>&ldquo;<B>Covered Transaction</B>&rdquo;
</I>means any of (i) a consolidation, merger, stock sale, Change of Control or similar transaction or series of related transactions
in which the Company is not the surviving corporation or which results in the acquisition of all or substantially all of the Company&rsquo;s
then outstanding common stock by a single person or entity or by a group of persons and/or entities acting in concert, (ii) a
sale or transfer of all or substantially all the Company&rsquo;s assets, (iii) a dissolution or liquidation of the Company or
(iv) following such time as the Company has a class of equity securities listed on a national securities exchange or quoted on
an inter-dealer quotation system, a change in the membership of the Board for any reason such that the individuals who, as of
the Effective Date, constitute the Board of Directors of the Company (the <I>&ldquo;<B>Continuing Directors</B>&rdquo;</I>) cease
for any reason to constitute at least a majority of the Board; <I>provided however</I>, that any individual becoming a Director
after the Effective Date, whose election or nomination for election by the Company&rsquo;s shareholders was approved by a vote
of at least a majority of the Continuing Directors, will be considered as though such individual were a Continuing Director, but
excluding for this purpose any such individual whose initial assumption of office occurs as a result of either an actual or threatened
election contest (as such terms are used in Rule 14a-11 of</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt">Regulation
14A promulgated under the Securities Exchange Act of 1934, as amended) or other actual or threatened solicitation of proxies or
consents by or on behalf of any person or entity other than the Board. Where a Covered Transaction involves a tender offer that
is reasonably expected to be followed by a merger described in clause (i) (as determined by the Board), the Covered Transaction
shall be deemed to have occurred upon consummation of the tender offer.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(M)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Current Market Value</B>&rdquo;</I> has the meaning set forth in Section 8.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(N)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Director</B>&rdquo;</I> means a member of the Board of Directors of the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(O)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Effective Date</B>&rdquo;</I> has the meaning set forth in Section 12.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(P)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Employee</B>&rdquo;</I> means any person employed by the Company or an Affiliate.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(Q)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Family Member</B>&rdquo;</I> means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
including adoptive relationships, any person sharing the Participant&rsquo;s household (other than a tenant or employee), a trust
in which these persons have more than fifty percent of the beneficial interest, a foundation in which these persons (or the Participant)
control the management of assets, and any other entity in which these persons (or the Participant) own more than fifty percent
of the voting interests.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(R)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Incentive Stock Option</B>&rdquo;</I> means an Option intended to qualify as an incentive stock option within
the meaning of Section 422 of the Code and the regulations promulgated thereunder.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(S)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Non-statutory Stock Option</B>&rdquo;</I> means an Option that is not an Incentive Stock Option.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(T)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Officer</B>&rdquo;</I> means any person appointed as an officer of the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(U)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Option</B>&rdquo;</I> means an Incentive Stock Option or a Non-statutory Stock Option granted pursuant to the
Plan.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(V)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Participant</B>&rdquo;</I> means an individual to whom an Award is granted pursuant to the Plan.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(W)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Performance-Based Exception</B>&rdquo;</I> shall mean the performance-based exception from the deductibility
limitations as set forth in Code Section 162(m).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(X)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Permitted Transferee</B>&rdquo;</I> means a Family Member of a Participant to whom an Award has been transferred
by gift.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(Y)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Person</B>&rdquo;</I> means any individual, corporation, partnership, association, joint-stock company, trust,
unincorporated organization, or government or political subdivision thereof.</P>


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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(Z)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I>&ldquo;<B>Plan</B>&rdquo; </I>means
this 2016 Equity Incentive Plan, as from time to time amended and in effect.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(AA)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Restricted Stock</B>&rdquo;</I> means an Award of Stock for so long as the Stock remains subject to restrictions
requiring that it be forfeited to the Company if specified conditions are not satisfied.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(BB)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Securities Act</B>&rdquo;</I> means the Securities Act of 1933, as amended.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(CC)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>&ldquo;<B>Shares&rdquo;</B> or &ldquo;<B>Stock</B>&rdquo;</I> means the common stock of the Company, par value $.001
per share.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">3.</TD><TD>ADMINISTRATION.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(A)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Administration By Board</U>. The Board shall administer the Plan unless and until it delegates administration to a Committee,
as provided in Section 3(C).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(B)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Powers of Board</U>. The Board shall have the power, subject to the express provisions of the Plan and applicable law:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD>To determine from time to time which of the persons eligible under the Plan shall be granted Awards; when and how each Award
shall be granted and documented; what type or combination of types of Awards shall be granted; the provisions of each Award granted,
including the time or times when a person shall be permitted to exercise an Award; the number of shares of Stock with respect to
which an Award shall be granted to each such Person; to determine whether, to what extent, and under what circumstances Awards
may be settled or exercised, or canceled, forfeited or suspended, and the method or methods by which Awards may be settled, exercised,
canceled, forfeited or suspended; and, to determine requirements for the vesting of Awards or performance or service criteria to
be achieved in order for Awards to vest.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD>To construe and interpret the Plan and Awards granted under it, and to establish, amend and revoke rules and regulations for
its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or
in any Award Agreement, in such manner and to such extent as it shall deem necessary or expedient to make the Plan fully effective.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD>To amend the Plan or an Award as provided in Section 10.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iv)</TD><TD>To terminate or suspend the Plan as provided in Section 11.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(v)</TD><TD>Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests
of the Company and that are not in conflict with the provisions of the Plan.</TD></TR></TABLE>

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

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(C)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Delegation to Committee</U>. The Board may delegate administration of the Plan to a Committee or Committees of two (2)
or more Directors, and the term <I>&ldquo;<B>Committee</B>&rdquo;</I> shall apply to any persons to whom such authority has been
delegated; provided that a &ldquo;required majority,&rdquo; as defined in Section 57(o) of the 1940 Act, must approve each issuance
of Awards in accordance with Section 61(a)(3)(A)(iv) of the 1940 Act. For purposes of Code Section 162(m), the Committee must be
comprised of two or more &ldquo;outside&rdquo; directors as set forth in Code Section 162(m). If administration of the Plan is
delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed
by the Board, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to
exercise (and references in this Plan to the Board, other than the Board reference at the end of this sentence and the Board references
in the last sentence of this subsection (c), shall thereafter be to the Committee or subcommittee), subject, however, to such resolutions,
not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee
at any time and revest in the Board the administration of the Plan.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(D)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Effect of Board&rsquo;s Decision</U>. Determinations, interpretations and constructions made by the Board in good faith
shall not be subject to review by any Person and shall be final, binding and conclusive on all Participants.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">4.</TD><TD>SHARES SUBJECT TO THE PLAN; CERTAIN LIMITS.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(A)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Share Reserve</U>. Subject to such adjustments as may be provided in this Section 4 and Section 9 herein, the maximum
aggregate number of shares of Stock that may be issued under the Plan pursuant to grants of Restricted Stock or the exercise of
Awards is 2,534,728 shares.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(B)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>No Addition of Forfeited, Canceled, or Held Back Shares</U>. Shares of Stock underlying any Awards that are forfeited,
canceled, held back upon exercise of an Option or settlement of an Award to cover the exercise price or tax withholding, reacquired
by the Company prior to vesting, satisfied without the issuance of Stock or otherwise terminated (other than by exercise) shall
not be added back to the number of Shares available for issuance under the Plan and shall not be considered as part of the number
of Shares otherwise reserved thereunder, and <I>further provided</I>, that in the event the Company repurchases Stock on the open
market, such Stock shall not be added to the number of Shares available for issuance under the Plan.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(C)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Type of Shares</U>. The shares of Stock subject to the Plan may be unissued shares or reacquired shares bought on the
market or otherwise. No fractional shares of Stock will be delivered under the Plan.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(D)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Limits on Individual Grants</U>. The maximum number of Shares underlying an Option for which any Participant may be granted
Awards in any calendar year is One Million (1,000,000) Shares, net of any Shares canceled or redeemed as payment of any applicable
tax withholding. The maximum number of Shares of Restricted Stock for which any Participant may be granted Awards in any calendar
year is Five Hundred Thousand (500,000) Shares, net of any Shares canceled or redeemed as payment of any applicable tax withholding.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(E)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Limits on Aggregate Grants of Restricted Stock</U>. The combined maximum amount of Restricted Stock that may be issued
under the Plan to all Participants will be 10% of the outstanding shares of Stock on the effective date of the Plan, plus 10% of
the number of Shares issued or delivered by the Company (other than pursuant to compensation plans) during the term of the Plan.
No one Participant shall be granted Awards of Restricted Stock relating to more than 25% of the Shares available for issuance under
this Plan. Shares granted pursuant to an Award of Restricted Stock that are used to settle tax withholding obligations pursuant
to Section 9(E) shall be included as &ldquo;Restricted Stock issued&rdquo; for purposes of the calculations set forth in this Section
4(E).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(F)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>No Grants in Contravention of 1940 Act</U>. At all times during such periods as the Company qualifies or is intended
to qualify as a &ldquo;business development company,&rdquo; no Award may be granted under the Plan if the grant of such Award would
cause the Company to violate Section 61(a)(3) of the 1940 Act, and, if otherwise approved for grant, shall be void and of no effect.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(G)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Limits on Number of Awards</U>. The amount of voting securities that would result from the exercise of all of the Company&rsquo;s
outstanding warrants, options, and rights, together with any Restricted Stock issued pursuant to this Plan and any other compensation
plan of the Company, at the time of issuance shall not exceed 25% of the outstanding voting securities of the Company, except that
if the amount of voting securities that would result from the exercise of all of the Company&rsquo;s outstanding warrants, options,
and rights issued to the Company&rsquo;s Directors, Officers, and Employees, together with any Restricted Stock pursuant to this
Plan and any other compensation plan of the Company, would exceed 15% of the outstanding voting securities of the Company, then
the total amount of voting securities that would result from the exercise of all outstanding warrants, options, and rights, together
with any Restricted Stock issued pursuant to this Plan and any other compensation plan of the Company, at the time of issuance
shall not exceed 20% of the outstanding voting securities of the Company. Shares granted pursuant to an Award of Restricted Stock
that are used to settle tax withholding obligations pursuant to Section 9(E) shall be included as &ldquo;Restricted Stock issued&rdquo;
for purposes of the calculations set forth in this Section 4(H).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(H)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Date of Award&rsquo;s Grant</U>. The date on which the &ldquo;required majority,&rdquo; as defined in Section 57(o) of
the 1940 Act, approves the issuance of an Award will be deemed the date on which such Award is granted.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">5.</TD><TD>ELIGIBILITY.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">Incentive Stock Options may be granted
to Employees or Employee Directors of the Company or a &ldquo;parent&rdquo; or &ldquo;subsidiary&rdquo; corporation of the Company
as those terms are used in Section 424 of the Code. Awards other than Incentive Stock Options may be granted to Officers, Employees
and Directors. Notwithstanding the foregoing, no Officer, Employee or Director shall be eligible to receive any Award of Options
under the Plan until such time as the Plan has been approved by the Company&rsquo;s shareholders and no Award of Restricted Stock
to any Officer, Employee or Director or Award of Options to any Director who is not also an Employee shall</P>


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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0in">granted under the Plan until such time
as the Company has received an order from the Securities Exchange Commission as required by the 1940 Act, permitting such Awards.
By accepting any Award granted hereunder, the Participant agrees to the terms of the Award and the Plan. Notwithstanding any provision
of this Plan to the contrary, awards of an acquired company that are converted, replaced or adjusted in connection with the acquisition
may contain terms and conditions that are inconsistent with the terms and conditions specified herein, as determined by the Board.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">6.</TD><TD>OPTION PROVISIONS.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">Each Option shall contain such terms
and conditions as the Board shall deem appropriate. All Options shall be separately designated Incentive Stock Options or Non-statutory
Stock Options at the time of grant, and, if certificates are issued, a separate certificate or certificates shall be issued for
shares of Stock purchased on exercise of each type of Option. The provisions of separate Options need not be identical, but, to
the extent relevant, each Option shall include (through incorporation by reference or otherwise) the substance of each of the following
provisions:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(A)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Time and Manner of Exercise</U>. Unless the Board expressly provides otherwise, an Option will not be deemed to have
been exercised until the Board receives a notice of exercise (in form acceptable to the Board) signed by the appropriate person
and accompanied by any payment required under the Award. If the Option is exercised by any person other than the Participant, the
Board may require satisfactory evidence that the person exercising the Option has the right to do so. No Option shall be exercisable
after the expiration of ten (10) years from the date on which it was granted.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(B)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Exercise Price of an Option</U>. The exercise price of each Option shall be not less than the Current Market Value of,
or if no such market value exists, the current net asset value of, the stock subject to the Option as determined in good faith
by the Board on the date the Option is granted. In the case of an Option granted to a 10% Holder and intended to qualify as an
Incentive Stock Option, the exercise price will not be less than 110% of the Current Market Value determined as of the date of
grant. A &ldquo;10% Holder&rdquo; is an individual owning stock possessing more than 10% of the total combined voting power of
all classes of Stock of the Company or its parent or subsidiary entities. No such Option, once granted, may be repriced other than
in accordance with the 1940 Act and the applicable stockholder approval requirements of the New York Stock Exchange.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(C)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Consideration</U>. The purchase price for Stock acquired pursuant to an Option shall be paid in full at the time of exercise
either (i) in cash, or, if so permitted by the Board and if permitted by the 1940 Act and otherwise legally permissible, (ii) through
a broker-assisted exercise program acceptable to the Board, (iii) by such other means of payment as may be acceptable to the Board,
or (iv) in any combination of the foregoing permitted forms of payment.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(D)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Transferability of an Incentive Stock Option</U>. An Incentive Stock Option shall not be transferable except by will
or by the laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the Participant.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(E)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Transferability of a Non-statutory Stock Option</U>. A Non-statutory Stock Option shall be transferable by will or by
the laws of descent and distribution, or, to the extent provided by the Board, by gift to a Permitted Transferee, and a Non-statutory
Stock Option that is nontransferable except at death shall be exercisable during the lifetime of the Participant only by the Participant.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(F)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Limitation on Repurchase Rights</U>. If an Option gives the Company the right to repurchase shares of Common Stock issued
pursuant to the Plan upon termination of employment of such Participant, the terms of such repurchase right must comply with the
1940 Act.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(G)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Exercisability</U>. The Board may determine the time or times at which an Option will vest or become exercisable and
the terms on which an Option requiring exercise will remain exercisable. Notwithstanding the foregoing, vesting shall take place
at the rate of at least 20% per year over not more than five years from the date the award is granted, subject to reasonable conditions
such as continued employment.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(H)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Termination of Continuous Service</U>. Unless the Board expressly provides otherwise in the Award Agreement, immediately
upon the cessation of a Participant&rsquo;s Continuous Service that portion, if any, of any Option held by the Participant or the
Participant&rsquo;s Permitted Transferee that is not then exercisable will terminate and the balance will remain exercisable for
the lesser of (i) a period of three months or (ii) the period ending on the latest date on which such Option could have been exercised
without regard to this Section 6(H), and will thereupon terminate subject to the following provisions (which shall apply unless
the Board expressly provides otherwise):</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD>if a Participant&rsquo;s Continuous Service ceases by reason of death, or if a Participant dies following the cessation of
his or her Continuous Service but while any portion of any Option then held by the Participant or the Participant&rsquo;s Permitted
Transferee is still exercisable, the then exercisable portion, if any, of all Options held by the Participant or the Participant&rsquo;s
Permitted Transferee immediately prior to the Participant&rsquo;s death will remain exercisable for the lesser of (A) the one year
period ending with the first anniversary of the Participant&rsquo;s death or (B) the period ending on the latest date on which
such Option could have been exercised without regard to this Section 6(H)(i), and will thereupon terminate; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD>if the Board, in its sole discretion, determines that the cessation of a Participant&rsquo;s Continuous Service resulted for
reasons that cast such discredit on the Participant as to justify immediate termination of his or her Options, all Options then
held by the Participant or the Participant&rsquo;s Permitted Transferee will immediately terminate.</TD></TR></TABLE>


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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">7.</TD><TD>RESTRICTED STOCK PROVISIONS.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">Each grant of Restricted Stock shall
contain such terms and conditions as the Board shall deem appropriate. The provisions of separate grants of Restricted Stock need
not be identical, but, to the extent relevant, each grant shall include (through incorporation by reference or otherwise) the substance
of each of the following provisions:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(A)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Consideration</U>. To the extent permitted by the 1940 Act, Awards of Restricted Stock may be made in exchange for past
services or other lawful consideration.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(B)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Transferability of Restricted Stock</U>. Upon the grant of the Award of Restricted Stock, a Participant shall have the
rights of a stockholder with respect to the voting of the Restricted Stock and receipt of dividends; provided that, in the Board&rsquo;s
discretion, an Award Agreement may provide that any dividends paid by the Company prior to vesting of shares of Restricted Stock
shall accrue and shall not be paid to the Participant until and to the extent Restricted Stock vests. Unless the Board shall otherwise
determine, (i) Restricted Stock, if uncertificated, shall be accompanied by a notation on the records of the Company or the transfer
agent to the effect that they are subject to forfeiture until such Restricted Stock are vested as provided in Section 7(D) below,
and (ii) certificated Restricted Stock shall remain in the possession of the Company until such Restricted Stock is vested as provided
in Section 7(D) below, and the Participant shall be required, as a condition of the grant, to deliver to the Company such instruments
of transfer as the Board may prescribe.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(C)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Transferability of Restricted Stock</U>. Except as the Board otherwise expressly provides, Restricted Stock shall not
be transferable other than by will or by the laws of descent and distribution.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(D)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Vesting</U>. The Board may determine the time or times at which shares of Restricted Stock will vest or become exercisable
and the terms on which shares of Restricted Stock will remain exercisable. The vesting schedule for Restricted Stock issued under
the Plan will be determined at the time of the initial grant of Restricted Stock.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(E)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Termination of Continuous Service</U>. Unless the Board expressly provides otherwise, immediately upon the cessation
of a Participant&rsquo;s Continuous Service that portion, if any, of any Restricted Stock held by Participant or the Participant&rsquo;s
Permitted Transferee that is not then vested will thereupon terminate and the unvested shares will be returned to the Company and
will be available to be issued as Awards under this Plan.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">8.</TD><TD>MISCELLANEOUS.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(A)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Acceleration</U>. The Board shall have the power to accelerate the time at which an Award or any portion thereof vests
or may first be exercised, regardless of the tax or other consequences to the Participant or the Participant&rsquo;s Permitted
Transferee resulting from such acceleration.</P>


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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(B)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Stockholder Rights</U>. No Participant or other person shall be deemed to be the holder of, or to have any of the rights
of a holder with respect to, any shares of Stock subject to an Option unless and until such Award has been delivered to the Participant
or other person upon exercise of the Award. Unless otherwise set forth in their respective Award Agreements, Holders of Restricted
Stock shall have all the rights of a holder upon issuance of the Restricted Stock Award.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(C)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>No Employment or Other Service Rights</U>. Nothing in the Plan or any instrument executed or Award granted pursuant thereto
shall confer upon any Participant any right to continue in the employment of, or to continue to serve as a director of, the Company
or an Affiliate or shall affect the right of the Company or an Affiliate to terminate (i) the employment of the Participant (if
the Participant is an Employee) with or without notice and with or without cause or (ii) the service of a Director (if the Participant
is a Director) pursuant to the Bylaws of the Company or an Affiliate and any applicable provisions of the corporate law of the
state in which the Company or the Affiliate is incorporated. Nothing in the Plan will be construed as giving any person any rights
as a stockholder except as to shares of Stock actually issued under the Plan. The loss of existing or potential profit in Awards
will not constitute an element of damages in the event of termination of service for any reason, even if the termination is in
violation of an obligation of the Company or an Affiliate to the Participant.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(D)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Legal Conditions on Delivery of Stock</U>. The Company will not be obligated to deliver any shares of Stock pursuant
to the Plan or to remove any restriction from shares of Stock previously delivered under the Plan until: (i) the Company is satisfied
that all legal matters in connection with the issuance and delivery of such shares have been addressed and resolved; (ii) if the
outstanding Stock is at the time of delivery listed on any stock exchange or national market system, the shares to be delivered
have been listed or authorized to be listed on such exchange or system upon official notice of issuance; and (iii) all conditions
of the Award have been satisfied or waived. If the sale of Stock has not been registered under the Securities Act, the Company
may require, as a condition to the grant or the exercise of the Award, such representations or agreements as counsel for the Company
may consider appropriate to avoid violation of the Securities Act. The Company may require that certificates evidencing Stock issued
under the Plan bear an appropriate legend reflecting any restriction on transfer applicable to such Stock, and the Company may
hold the certificates pending lapse of the applicable restrictions.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(E)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Withholding Obligations</U>. Each grant or exercise of an Award granted hereunder shall be subject to the Participant&rsquo;s
having made arrangements satisfactory to the Board for the full and timely satisfaction of all federal, state, local and other
tax withholding requirements applicable to such grant, exercise or exchange. Without limiting the generality of the foregoing,
the Participant may satisfy such withholding requirements by tendering a check (acceptable to the Board) for the full amount of
such withholding. In the event the Company or an Affiliate becomes liable for tax withholding with respect to an Option prior to
the date of exercise, the Company may require the Participant to remit the required tax withholding by separate check acceptable
to the Company or may make such other arrangements (including withholding from other payments to the Participant) for the satisfaction
of such withholding as it determines.</P>


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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The Company or its designated third party
administrator shall have the right to deduct applicable taxes from any Award payment and withhold, at the time of delivery or vesting
of cash or shares of Stock under this Plan, an appropriate amount of cash or number of shares of Stock or a combination thereof
for payment of taxes or other amounts required by law or to take such other action as may be necessary in the opinion of the Company
to satisfy all obligations for withholding of such taxes. Subject to Section 4(B), a Participant may also satisfy tax withholding
obligations by the transfer to the Company of shares of Stock theretofore owned by the holder of the Award with respect to which
withholding is required. Shares of Stock used to satisfy tax withholding obligations shall be valued based on the shares&rsquo;
Current Market Value on the date of the transaction. Consistent with Section 409A of the Internal Revenue Code, the Company will
use the closing sales price of its shares of Common Stock on the New York Stock Exchange (or any other such exchange on which its
shares of Common Stock may be traded in the future) as <B><I>&ldquo;Current Market Value&rdquo;</I></B> for all purposes under
the Plan.</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">9.</TD><TD>ADJUSTMENTS UPON CHANGES IN STOCK.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(A)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Capitalization Adjustments</U>. In the event of a Stock dividend, Stock split or combination of Shares (including a reverse
stock split), recapitalization or other change in the Company&rsquo;s capital structure, the Board will make appropriate adjustments
to the maximum number of Shares specified in Section 4(A) that may be delivered under the Plan, to the maximum per-participant
Share limit described in Section 4(D) and will also make appropriate adjustments to the number and kind of Shares or securities
subject to Awards then outstanding or subsequently granted, any exercise prices relating to Awards and any other provision of Awards
affected by such change. To the extent consistent with qualification of Incentive Stock Options under Section 422 of the Code and
with the performance-based compensation rules of Section 162(m), where applicable, the Board may also make adjustments of the type
described in the preceding sentence to take into account distributions to stockholders other than those provided for in such sentence,
or any other event, if the Board determines that adjustments are appropriate to avoid distortion in the operation of the Plan and
to preserve the value of Awards granted hereunder; <I>provided, however</I>, that the exercise price of Awards granted under the
Plan will not be adjusted unless the Company receives an exemptive order from the Commission or written confirmation from the staff
of the Commission that the Company may do so.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(B)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Covered Transaction</U>. Except as otherwise provided in an Award Agreement, in the event of a Covered Transaction in
which there is an acquiring or surviving entity, the Board may provide for the assumption of some or all outstanding Awards, or
for the grant of new awards in substitution therefor, by the acquiror or survivor or an affiliate of the acquiror or survivor,
in each case on such terms and subject to such conditions as the Board determines. In the absence of such an assumption or if there
is no substitution, except as otherwise provided in the Award Agreement, the Board may provide that (i) each Award will become
fully vested or exercisable prior to the Covered Transaction on a basis that gives the holder of the Award a reasonable opportunity,
as determined by the Board, to participate as a stockholder in the Covered Transaction following vesting or exercise, and the Award
will terminate upon consummation of the Covered Transaction; (ii) provide that each Award (whether vested or not) is cancelled
in exchange for an amount equal to the product of (a)&nbsp;in the case of an Option, the</P>


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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0in">excess, if any, of the product of the Change
of Control Price over the exercise price for such Award, and (b)&nbsp;in the case of Restricted Stock, the Change of Control Price
multiplied by&nbsp;the aggregate number of shares of Common Stock covered by such Award; and (iii) provide that any then-outstanding
Options (or other award continued or substituted therefor) shall remain exercisable for a period of 6 months following such termination,
or, if earlier, the expiration date of such Option; <I>provided, further</I>, that where the Change of Control does not constitute
a &ldquo;change in control event&rdquo; as defined under Code Section 409A, the shares to be issued, or the amount to be paid,
for each Award that constitutes deferred compensation subject to Code Section 409A shall be paid at the time or schedule applicable
to such Awards (assuming for these payment purposes [but not the lapsing of the period of restriction] that no such Change of Control
had occurred).&nbsp; Notwithstanding the foregoing, the Board may, in its discretion, instead terminate any outstanding Option
if either (x)&nbsp;the Company provides holders of such Options with reasonable advance notice to exercise their outstanding and
unexercised Options or (y)&nbsp;the Board reasonably determines that the Change of Control Price is equal to or less than the exercise
price for such Options. For the purpose of this subsection, <B><I>&ldquo;Change of Control Price&rdquo;</I></B> means the price
per share on a fully diluted basis offered in conjunction with any transaction resulting in a Change of Control, as determined
in good faith by the Board as constituted before the Change of Control, if any part of the offered price is payable other than
in cash.</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">10.</TD><TD>AMENDMENT OF THE PLAN AND AWARDS.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The Board may at any time or times amend
the Plan or any outstanding Award for any purpose which may at the time be permitted by law, and may at any time terminate the
Plan as to any future grants of Awards; <I>provided, however</I>, that except as otherwise expressly provided in the Plan the Board
may not, without the Participant&rsquo;s consent, alter the terms of an Award so as to affect substantially and adversely the Participant&rsquo;s
rights under the Award, unless the Board expressly reserved the right to do so at the time of the grant of the Award. Any amendments
to the Plan shall be conditioned upon stockholder approval only to the extent, if any, such approval is required by law (including
the Code and applicable stock exchange requirements), as determined by the Board.</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">11.</TD><TD>TERMINATION OR SUSPENSION OF THE PLAN.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(A)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Plan Term</U>. The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate
on the day before the tenth (10th) anniversary of the date the Plan is initially adopted by the Board or approved by the stockholders
of the Company, whichever is earlier. No Awards may be granted under the Plan while the Plan is suspended or after it is terminated.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(B)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>No Impairment of Rights</U>. Suspension or termination of the Plan shall not impair rights and obligations under any
Awards granted while the Plan is in effect except with the written consent of the Participant.</P>


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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">12.</TD><TD>EFFECTIVE DATE OF PLAN.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The Plan shall become effective upon
approval by the stockholders of the Company, which approval shall be within twelve (12) months before or after the date the Plan
is adopted by the Board; <I>provided, however</I>, that the Plan shall not be effective with respect to an Award of Restricted
Stock unless the Company has received an order of the Commission that permits such Award (the <I>&ldquo;<B>Effective Date</B>&rdquo;</I>).</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">13.</TD><TD>1940 ACT.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">No provision of this Plan shall contravene
any portion of the 1940 Act, and in the event of any conflict between the provisions of the Plan or any Award and the 1940 Act,
the applicable Section of the 1940 Act shall control and all Awards under the Plan shall be so modified. All Participants holding
such modified Awards shall be notified of the change to their Awards and such change shall be binding on such Participants.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">14.</TD><TD>CODE SECTION 162(m).</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(A)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Performance Goals</U><I>. </I>The Committee, in its discretion, may determine that an Award of Restricted Stock to a
Covered Employee will be designed to comply with the Performance-Based Exception under Code Section 162(m). In such case, the level
of vesting of the award will depend on the attainment of any of the following performance criteria, either alone or in any combination,
which may be expressed with respect to the Company or one or more operating units or groups, as the Board may determine: (a) cash
flow; (b) cash flow from operations; (c) total earnings; (d) earnings per share, diluted or basic; (e) earnings per share from
continuing operations, diluted or basic; (f) earnings before interest and taxes; (g) earnings before interest, taxes, depreciation,
and amortization; (h) earnings from operations; (i) net asset turnover; (j) inventory turnover; (k) capital expenditures; (l) net
earnings; (m) operating earnings; (n) gross or operating margin; (o) debt; (p) working capital; (q) return on equity; (r) return
on net assets; (s) return on total assets; (t) return on capital; (u) return on investment; (v) return on sales; (w) net or gross
sales; (x) market share; (y) economic value added; (z) cost of capital; (aa) change in assets; (bb) expense reduction levels; (cc)
debt reduction; (dd) productivity; (ee) delivery performance; (ff) safety record; (gg) stock price; and (hh) total stockholder
return. Performance goals may be determined on an absolute basis or relative to internal goals or relative to levels attained in
prior years or related to other companies or indices or as ratios expressing relationships between two or more performance goals.
Performance goals may but need not be determinable in conformance with generally accepted accounting principles.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">(B)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Performance Period; Adjustments</U><I>.</I> The Committee shall determine the performance period over which the designated
performance goals shall be attained and shall, in the case of an Award designed to comply with the Performance-Based Exception
under Code Section 162(m), establish the performance goals no later than 90 days after the beginning of such performance period
(or such other date as may be required or permitted under Code</P>


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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">Section 162(m)).
Following the end of the performance period, the Committee shall certify in writing the level of attainment of the performance
goal(s). The Committee may reduce (including a reduction to zero), but may not increase the amount of an available award. The Committee
may provide in any performance based Award, at the time the performance goals are established, that any evaluation of performance
shall exclude or otherwise objectively adjust for any specified circumstance or event that occurs during a performance period,
including by way of example, but without limitation, the following: (a) asset write-downs or impairment charges; (b) litigation
or claim judgments or settlements; (c) the effect of changes in tax laws, accounting principles or other laws or provisions affecting
reported results; (d) accruals for reorganization and restructuring programs; (e) extraordinary nonrecurring items as described
in then-current accounting principles; (f) extraordinary nonrecurring items as described in management&rsquo;s discussion and analysis
of financial condition and results of operations appearing in the Company&rsquo;s annual report for the applicable year; (g) acquisitions
or divestitures; and (h) foreign exchange gains and losses. To the extent such inclusions or exclusions affect Awards to Covered
Employees, they shall be prescribed in a form that meets the requirements of Code Section 162(m) for deductibility.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">15.</TD><TD><U>CODE SECTION 409A</U>.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><FONT STYLE="font-weight: normal">To
the extent any Award is subject to Code Section 409A, such Award and the Plan are intended to be administered in a manner consistent
with the requirements of Code Section 409A.&nbsp; Where reasonably possible and practicable, the Plan shall be administered in
a manner to avoid the imposition on Participants of immediate tax recognition and additional taxes pursuant to Code Section 409A.&nbsp;
Notwithstanding the foregoing, neither the Company nor the Board shall have any liability to any person in the event Code Section
409A applies to any such Award in a manner that results in adverse tax consequences for the Participant or any of his beneficiaries
or transferees. Solely for purposes of determining the time and form of payments due under any Award that is considered nonqualified
deferred compensation under Code Section 409A and that is not otherwise exempt from Code Section 409A, a Participant shall not
be deemed to have incurred a termination of employment unless and until he shall incur a &ldquo;separation from service&rdquo;
within the meaning of Code Section 409A.&nbsp; Notwithstanding any other provision in this Plan, if as of a Participant&rsquo;s
separation from service, the Participant is a &ldquo;specified employee&rdquo; as determined by the Company, then to the extent
any amount payable under any Award that is considered nonqualified deferred compensation under Code Section 409A and that is not
otherwise exempt from Code Section 409A, for which payment is triggered by the Participant&rsquo;s separation from service (other
than on account of death), and that under the terms of the Award would be payable prior to the six-month anniversary of the Participant&rsquo;s
separation from service, such payment shall be delayed until the earlier to occur of (a)&nbsp;the six-month anniversary of such
separation from service or (b)&nbsp;the date of the Participant&rsquo;s death.</FONT></P>


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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">16.</TD><TD>INFORMATION RIGHTS OF PARTICIPANTS.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The Company shall provide to each Participant
who acquires Stock pursuant to the Plan, not less frequently than annually, copies of annual financial statements (which need not
be audited). The Company shall not be required to provide such statements to Participants who are key Employees and whose duties
in connection with the Company assure their access to equivalent information.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">17.</TD><TD>SEVERABILITY.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">If any provision of this Plan or any
Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Participant or Award,
or would disqualify this Plan or any Award under any applicable law, such provision shall be construed or deemed amended to conform
to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Board, materially altering
the intent of this Plan or the Award, such provision shall be stricken as to such jurisdiction, Participant or Award and the remainder
of this Plan and any such Award shall remain in full force and effect.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">18.</TD><TD>OTHER COMPENSATION ARRANGEMENTS.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The existence of the Plan or the grant
of any Award will not in any way affect the Company&rsquo;s right to award a Participant bonuses or other compensation in addition
to Awards under the Plan.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">19.</TD><TD>WAIVER OF JURY TRIAL.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">By accepting an Award under the Plan,
each Participant waives any right to a trial by jury in any action, proceeding or counterclaim concerning any rights under the
Plan and any Award, or under any amendment, waiver, consent, instrument, document or other agreement delivered or which in the
future may be delivered in connection therewith, and agrees that any such action, proceedings or counterclaim shall be tried before
a court and not before a jury. By accepting an Award under the Plan, each Participant certifies that no Director, Officer, Employee,
representative, or attorney of the Company has represented, expressly or otherwise, that the Company would not, in the event of
any action, proceeding or counterclaim, seek to enforce the foregoing waivers.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">20.</TD><TD>CODE SECTION 83(b) ELECTIONS.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Company and the Board have no responsibility
for any Participant&rsquo;s election, attempt to elect or failure to elect to include the value of an Award of Restricted Stock
or other Award subject to Code Section 83 in the Participant&rsquo;s gross income for the year of payment pursuant to Code Section
83(b). Any Participant who makes an election pursuant to Code Section 83(b)&nbsp;will promptly provide the Board with a copy of
the election form.</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<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>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">21.</TD><TD>NO OBLIGATION TO EXERCISE.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The grant of an Award of an Option will
impose no obligation upon the Participant to exercise the Award. The Company and the Board have no obligation to inform a Participant
of the date on which any Award lapses except as may be set forth in the Award Agreement.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">22.</TD><TD>RIGHT TO OFFSET.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">Notwithstanding any provisions of the
Plan to the contrary, and to the extent permitted by applicable law (including Code Section 409A), the Company may offset any amounts
to be paid to a Participant (or, in the event of the Participant&rsquo;s death, to his beneficiary or estate) under the Plan against
any amounts that such Participant may owe to the Company.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">23.</TD><TD>COOPERATION.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">A Participant will cooperate with the
Board by furnishing any and all information requested by the Board and take such other actions as may be requested in order to
facilitate the administration of the Plan and the payments of benefits hereunder, including but not limited to taking such physical
examinations as the Board may deem necessary when eligibility or entitlement to&nbsp;any compensation or benefit based on any matter
relating to the disability of the Participant is at issue.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">24.</TD><TD>NO CONSTRAINT ON CORPORATE ACTION<I>.</I>&nbsp;</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><FONT STYLE="font-weight: normal">Nothing
in this Plan shall be construed (i)&nbsp;to limit, impair or otherwise affect the Company&rsquo;s right or power to make adjustments,
reclassifications, reorganizations or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate,
sell, or transfer all or any part of its business or assets or (ii)&nbsp;to limit the right or power of the Company to take any
action which such entity deems to be necessary or appropriate.</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">25.</TD><TD>LIMITATION ON LIABILITY.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">Notwithstanding anything to the contrary
in the Plan, neither the Company nor the Board, nor any person acting on behalf of the Company or the Board, shall be liable to
any Participant or to the estate or beneficiary of any Participant by reason of any acceleration of income, or any additional tax,
asserted by reason of the failure of an Award to satisfy the requirements of Section 422 or Section 409A or by reason of Section
4999 of the Code; <I>provided, however</I>, that nothing in this Section 20 shall limit the ability of the Board or the Company
to provide by express agreement with a Participant for a gross-up payment or other payment in connection with any such tax or additional
tax.</P>



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

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
